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SHIPBUILDING AND SHIP REPAIR SHIPBUILDING AND SHIP REPAIR Powered By Docstoc
					                             March 23, 2007                            6




        SHIPBUILDING
          AND SHIP REPAIR




                                     Special focus on SWEDISH shipyards
Price:
Denmark       50 DKK
                                        Norway: 2006 will be remembered
Euro region
Norway
              6 EUR
              55 NOK
                             as the BLISSFUL BONANZA for shipbuilding
Sweden        55 SEK
UK            4 GBP    AKER YARDS on the Formula 1 class in shipbuilding
                           A CAREER OPPORTUNITY
                             WITH ROOM FOR MY
                                PERSONALITY




Finnlines’ aim is to be the leading company in                    Employee satisfaction are one of the main va-                        The competence of our personnel is ensured
its field. For a company operating in the service                  lues of Finnlines. We are constantly aiming                          through continuous training. One of the chal-
sector, competent and enthusiastic employees                      to achieve this by being a reliable and mo-                          lenges for the future is to attract new, talented
are a key resource.                                               tivating employer treating employees with                            persons as Yourself.
       A good, well-planned human resource                        fairness and equality, encouraging every                                   For further information on vacancies
policy serves to guarantee the enthusiasm and                     employee to continuously develop his or her                          please contact our human resource officer at
expertise of our personnel.                                       own competence and expertise.                                        Finnlines Ship Management.




                                                            THE WAY TO GO IN SHIPPING
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                                     FINNLINES SHIP MANAGEMENT AB, BOX 158, SE - 201 21 MALMÖ, SWEDEN,
            T E L E P H O N E : + 4 6 ( 0 ) 4 0 - 1 7 6 8 4 0 , FA X : + 4 6 ( 0 ) 4 0 - 1 7 6 8 4 1 / 1 7 6 8 5 1 , E M A I L : S E A P E R S O N N E L S W E @ F I N N L I N E S . F I
                                                                                  W W W. F I N N L I N E S . F I
                                                            SCANDINAVIAN SHIPPING GAZETTE, MARCH 23, 2007




                                                                                                                                     52
HEAD OFFICE
P.O. Box 370, SE-401 25 Gothenburg, Sweden
Phone +46-31-62 95 70, Fax +46-31-80 27 50
E-mail:       info@shipgaz.com
              editorial@shipgaz.com
              marketing@shipgaz.com
Internet:     www.shipgaz.com

Rolf P. Nilsson, publisher and editor-in-chief
Phone: +46-31-62 95 80
Mobile: +46-708-49 95 80
E-mail: rolf@shipgaz.com

Lars Adrians, marketing manager
Phone: +46-31-62 95 71
Mobile: +46-702-22 92 92
E-mail: lars@shipgaz.com

BRANCH OFFICES
Denmark
                                                                                                                                     83
Bent Mikkelsen, editor
Smedegade 13, DK-6950 Ringkøbing, Denmark
Phone: +45-9732 1333
Mobile: +45-2424 1335
E-mail: bent@shipgaz.com

Estonia (Tallinn)
                                                                                  60
                                                                                                                 22
Madli Vitismann, editor
Mobile: +372-5038 088
Phone & Fax: +372-646 13 18
E-mail: madli@shipgaz.com

Finland
Pär-Henrik Sjöström, editor
Malmgatan 5, FI-20100 ÅBO, Finland
Phone: +358-2-242 62 50, Fax: +358-2-242 62 51
                                                            66
Mobile: +358-400-82 71 13
E-mail: par-henrik@shipgaz.com
                                                            IN THIS ISSUE                                         REGULARS
Stig-Johan Lundström, sales manager
                                                            12 DIY solutions on non-integrated bridges             4 News Review
Ruissalontie 10 as 22 FI-20200 Turku, Finland               16 Aker should look beyond Shtokman                    8 SES Onboard
Phone: +358 45 32 44 99, Fax: +358 50 855 558 21
E-mail: stig-johan.lundstrom@marconwest.fi                  18 Warmer winters but no less need of icebreakers 11 Editorial
Norway                                                      22 193 lives lost to the disease of sloppiness        78 Fleet News
Petter Arentz, editor
P.O. Box 31, Teie, NO-3106 Tønsberg, Norway                 24 Trimming the transport chain with NETSS            80 Technical News
Phone: +47-33-40 12 00, Fax: +47-33-40 12 01                                                                      82 Finance & Insurance
Mobile: +47-90-99 06 37
E-mail: petter@shipgaz.com
                                                            SPECIAL FEATURE                                       83 IT & Communications
Dag Bakka Jr, editor
Strandgaten 223, NO-5004 Bergen, Norway
                                                            Shipbuilding                                          86 Market Reports
Phone: +47-55-32 17 47
Mobile: +47-414 56 807
                                                            and Ship Repair
E-mail: dag@shipgaz.com
                                                            27 In addition to looking at the large shipyards in Northern Europe, we will this
Marit Eggen, marketing manager Norway
                                                               year also take a closer look at the Swedish shipyards in our annual Shibuilding
Søndre Vøra 20, NO-3234 Sandefjord, Norway
Phone: +47-33-45 36 55, Fax: +47-33-47 30 33                   and Ship Repair issue. Although not being one of the large shipbuilding
Mobile: +47-913-15 901                                         nations, Sweden has several successful shipyards in interesting niches.
E-mail: marit.eggen@shipgaz.com

Odd-Einar Reseland, sales manager                                                                    FRONT PAGE PICTURE
Sandakerveien 76 F, NO-0483 Oslo, Norway
Phone: +47 22 09 69 10, Fax: +47 22 09 69 39                                                         Berg Propulsion AB works with cus-
Mobile: +47 47 33 29 96                                                                              tomers around the globe and provides a
E-mail: odd.einar@shipgaz.com
                                                                                                     complete and customised propulsion con-
Poland
Leszek Szymanski, correspondent
                                                                                                     cept; from propeller, hub and shaft design
Korzystno, ul. Truskawkowa 35, PL-78 132 Gryzbowo, Poland                                            to remote control and monitoring. Since
Phone: +48 94 354 04 84, Fax: +48 94 355 48 58                                                       1999 the company has had an average
Mobile: +48 602 579 620
E-mail: leszek@shipgaz.com
                                                                                                     annual growth of 35 percent and during
                                                                                                     2007 the company is expanding the pro-
SUBSCRIPTION                                                                                         duction plant and have made investments
EUR 95/year. For further subscription details,                                                       in new machines, facilities as well as in a
please send an e-mail to subscribe@shipgaz.com
or call +46-31-62 95 85
                                                                                                     broader product portfolio. Read more on
www.shipgaz.com                                                                                      www.bergpropulsion.se and on page 73.
NEWS REVIEW


HIGHER PROFIT FOR RAL Royal Arctic
Line A/S (RAL) can look back on a
very good 2006 with a profit higher
                                           Upward trend for major
than ever, and with good prospects for
this year. In 2006, its turnover amount-   losses continues
ed to DKK 752 million (DKK 727 mil-
lion in 2005).                             ssg-tønsberg. Only 67 ships of 500 grt or      cause is grounding at approximately 25 per
   After deductions of expenses and        above were total losses last year compared     cent, closely followed by collision or con-
financial items, the profit was DKK 69     with 140 in 2000, according to the Interna-    tact damage – just over 20 per cent.
million before tax and DKK 58 million      tional Union of Marine Insurance (IUMI),
after tax. In 2005, the profit after tax   the reasons being better ships, better         Hard driven ships and crews
was DKK 16 million. The much better        inspections, enhanced regulations and          According to IUMI, the highly profitable
profit comes after an increase in cargo    technology development.                        times in shipping markets is one cause.
volume.                                       Total losses represented 0.1 per cent of    Ships and crews are driven very hard and
                                           the world fleet, compared to 0.3 per cent in   some owners neglect safety checks and rou-
4 OPERATORS GO FOR 2 ROUTES Four           1996 and nearly 0.5 per cent in 1990.          tine maintenance to keep the vessels trad-
Danish ferry operators are bidding for     Whilst the total loss trend is down, serious   ing. Older ships that should be scrapped
two ferry services available for new       partial losses continue to increase, having    aren’t, adding to the sub-standard tonnage
operators in May and October, 2008.        been on a strong upward movement since         in operation.
The two ferry services in question are     1998 when 225 serious incidents were              Add to this the growing shortage of well-
the service from Koldby Kaas (Samsø)       reported. Nearly 700 were reported in 2006.    trained and experienced seafarers. Technol-
to Kalundborg, which is operated by           Machinery continues to be the major         ogy development has on the one hand
Samsø-Linien, and the Bøjden–Fyn-          cause of serious partial losses with a fre-    contributed to the decline of total losses,
shav service, currently operated by        quency of approximately 35 per cent in the     but has on the other led to more expensive
Scandlines Sydfyenske.                     past five years. The next most frequent        repairs on ships, particularly machinery.
   The four competing bidders are
Bornholmstrafikken,        Mols-Linien,
Samsø-Linien and Scandlines Syd-
fyenske. The operators are bidding for
                                           Aker yards shares for NOK 4.9 billion
either one or both routes. The Ministry    ssg-tønsberg. Aker has sold its 40.1 per       sources in the market say that some of the
of Transport is running the tender. The    cent in Aker Yards for a total of NOK 4.9      money is likely to be invested in renewable
operators selected will be contracted in   billion (EUR 608.3 million) and the com-       energy and in the new Aker Kvaerner Just
May.                                       pany is left with a net of NOK 2.9 billion     Catch technology to catch CO2. Another
                                           (EUR 356,5 million). It is not immediately     area could be a new Aker Shipping said to
RECORD PRICE TAG FOR DRILLSHIP An          known who the buyers are. Informed             be built around a new LNG concept.
unknown European owner has ordered
a drillship from Samsung Heavy Indus-
tries for USD 618 million, TradeWinds      ZERO IMO COMPLAINTS ON LIBERIAN REGISTRY The Liberian Registry is the largest flag
reports. Drillship prices has escalated    so far to have undertaken the voluntary IMO audit according to the recently adopted
significantly. Norwegian SeaDrill has      Member State Audit Scheme. The result of the audit was zero non-conformities against
two vessels on order at the shipyard       the operation of the registry. The IMO Audit Scheme is intended to provide member
with a price tag of USD 450–460 mil-       states with a comprehensive and objective assessment of how effectively they administer
lion, according to the paper.              and implement the mandatory instruments of the IMO.
   Stena Drilling also has drillships on
order at the same shipyard. Three ves-
sels have been ordered at prices of
USD 520–550 million, according to
                                           Need for larger tankers in Primorsk
the shipyard.                              ssg-tallinn. In an interview with the          the port would not be able to handle the
                                           Russian business journal Kommersant,           increased number of calls given by the
MACGREGOR BUYS HYDRAMARINE                 Simon Vainshtock, MD of Transneft, says        sizes of vessels currently calling at the port.
MacGregor buys 90 per cent of Norwe-       that the company will decide in the next       Larger tankers would solve this problem.
gian Hydramarine. Göteborg-based           two weeks whether a pipeline will be built     Sovcomflot already has two 160,000 DWT
MacGregor, owned by Finnish Car-           from Unecha, on the Belorussian border,        tankers in its fleet as well as two under con-
gotec, enters the offshore market          to Primorsk.                                   struction. They have a sufficiently shallow
through the take over. Hydramarine            The planned pipeline would have an          draft to pass through the Great Belt. Simon
manufactures deck machinery, cranes        annual capacity of 50 million tons of oil      Vainshtock points out that this would
and equipment for offshore vessels and     and construction could begin as early as in    mean that the number of tanker calls in
rigs. In 2006 Hydramarine had 150          April. The increase in the volumes shipped     Primorsk would not increase despite higher
employees.                                 out of Primorsk could be a problem since       oil volumes.

4                                                                                   SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                                    NEWS REVIEW
ZEE-PHOTO




                                                                                                               PASSENGER PORT TOO SMALL So
                                                                                                               many new and large ferries will be
                                                                                                               deployed between Tallinn and Helsinki
                                                                                                               that Port of Tallinn will have to enlarge
                                                                                                               the Old City harbour. According to the
                                                                                                               port company’s MD, Ain Kaljurand,
                                                                                                               the new ferry Nordic Jetline is planning
                                                                                                               to deploy will be so much larger than
                                                                                                               the present ferry that it will need
                                                                                                               another berth.

                                                                                                               BEST PROFIT EVER Mols-Linien A/S
                                                                                                               came out of 2006 with the best result
                                                                                                               ever in the company’s history against
                                                                                                               all odds, including high fuel prices and
                                                                                                               especially the competition from the
                                                                                                               fixed link over the Great Belt. The prof-
                                                                                                               it ended on DKK 53.2 million, 11.8 per
                                                                                                               cent better than in 2005. The turnover
                                                                                                               was up six per cent to DKK 761 mil-
            The Adsteam Warden from Adsteam Rotterdam-operation.                                               lion, while the expenses were DKK
                                                                                                               698.8 million.

            SvitzerWijsmuller finally buys Adsteam                                                             COSTS EAT RIGA SHIPYARD PROFITS
            ssg-ringkøbing. SvitzerWijsmuller has                In February, the last offical hurdles were    Riga Shipyard posted a profit of LVL
            finalised the purchase of Australian tug-com-     cleared as the English competition authori-      544,400 (EUR 775,000) on sales of near-
            pany Adsteam. The board of Adsteam has            ties made it clear the SvitzerWijsmuller         ly LVL 30 million (EUR 42.6 million in
            finally accepted SvitzerWijsmuller’s offer for    would have to sell its activities in Liverpool   2006. Sales rose 2.7 per cent compared
            the shares at a price of AUD 2.54 (EUR            in order not to create a nationwide monop-       with 2005, while the profit fell 16.9 per
            1.51) and SvitzerWijsmuller has accepted          oly business. The purchase will add around       cent. According to the yard’s manage-
            that it will only be possible to purchase 84.78   200 tugs to SvitzerWijsmuller’s fleet of         ment, the reason for the lower prof-
            per cent of the shares in the company             around 300 tugs, making the company the          itability was higher metal and energy
            instead of the intended 90 per cent.              world’s largest tug operator.                    prices. This had the greatest impact on
                                                                                                               its newbuilding activities since these
                                                                                                               contracts were signed one and a half to
            NATO exercise to start in Göteborg                                                                 two years earlier when prices were lower.

            ssg-göteborg. The NATO exercise Noble             secure commercial shipping in a conflict         VITOL TO CONTROL VENTSPILS Accord-
            Mariner kicks off with a large naval visit in     between nations.                                 ing to BNS, the Latvian competition
            Göteborg on April 10 to 13, two aircraft            The exercise will be held in waters from       authority has approved the application
            carriers will take part in the visit.             the north of Poland all the way up to            by Vitol’s subsidiary Euromin Holdings
              The exercise is the largest in the Baltic       Skagerrak. In Swedish waters, the exercise       Ltd to buy 49 per cent of the shares in
            sea since a Russian naval exercise in the         will be limited to three days on the south       Ventspils Nafta’s subsidiary Ventspils
            early 1990s. Sweden will participate with         coast.                                           Nafta Terminals.
            up to 700 men and one submarine, among              All normal traffic rules apply, only that
            other vessels. The aim is to exercise the         there will be boats and ships everywhere.        TORM PUNISHED FOR PROFIT Damp-
            NATO Response Force and its ability to            No areas will be closed.                         skibsselskabet Torm was punished on
                                                                                                               the Copenhagen Stock Exchange after
                                                                                                               the presentation of its 2006 results with
            Statoil and Hydro free to merge                                                                    a profit 22 per cent lower than in 2005,
                                                                                                               but exactly the figure given in various
            ssg-tønsberg. Norwegian energy compa-             StatoilHydro. Hydro’s shareholders will          forecasts during the year. Its value on
            nies Statoil and Hydro are now free to            own 32.7 per cent and Statoil’s sharehold-       the exchange fell from DKK 369.50 per
            merge after the boards have approved the          ers will own 67.3 per cent of the merged         share to DKK 355, a drop of 3.92 per
            USD 30.0 billion deal. The tie-up should          company. To compensate for the transfer          cent. D/S Torm had a net turnover of
            be completed by October and the compa-            of Hydro’s petroleum division, its share-        DKK 3.5 billion and a net profit (after
            nies will have a combined oil output pf 1.9       holders will receive a 0.8622 share in the       tax) of DKK 1.39 billion. In the record
            million barrels per day this year. For the        merged company for every share they own          year 2005 the profit was DKK 1.79 bil-
            time being, the name of the merged unit is        in Hydro.                                        lion.

            SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                             5
                 NEWS REVIEW




                                                             MADLI VITISMANN
                 HIGHER TURNOVER IN NORWAY Nor-
                 way’s maritime industry, comprising
                 around 5,500 companies, had a total
                 turnover of NOK 275 billion in 2005
                 and left a wealth creation of around
                 NOK 80 billion, according to a report
                 from research company Menon. The
                 numbers for 2006, thought not yet col-
                 lated, are higher. Ship owning account-
                 ed for NOK 38 billion in wealth cre-
                 ation in 2005. The maritime industry as
                 a whole had 90,000 employees, who
                 helped generate 7.3 per cent of the total
                 Norwegian wealth creation. Maritime
                 jobs have 50–60 per cent higher wage
                 costs than the rest of the industry.
                                                                               The Regina Baltica in Riga.

                 VENTSPILS’ MAYOR IN CUSTODY The
                 mayor of Ventspils, Aivars Lembergs,
                 who is also the chairman of the board
                                                                               Daily Riga–Stockholm service
                 of Freeport of Ventspils, has been                            ssg-tallinn. In the next few months,            this figure dropped to 30–40 per cent. A
                 remanded in custody, according to the                         Tallink will decide on whether to add a         large number of passengers from Lithuania
                 news agency BNS. He is accused of                             second ferry to its Riga–Stockholm ser-         also travel with the service. The number of
                 accepting bribes, incorrect income tax                        vice. According to the morning daily Eesti      passengers passing through Freeport of
                 returns and abuse of power. The chair-                        Päevaleht, the number of passengers is          Riga increased 26.5 per cent to about
                 man of the board of the holding com-                          expected to increase when Rigas Passenger       250,000. On April 5, Tallink will start oper-
                 pany Ventspils Nafta, the chairman of                         Terminal has built a walkway for passengers     ating the newbuilding Star on the
                 the board of the port operator Venta-                         from the terminal to the ships.                 Tallinn–Helsinki route as a replacement for
                 monjaks and a cashier have also been                             Last summer, the Regina Baltica was at       the Vana Tallinn, which will begin to sail
                 remanded in custody on suspicion of                           times fully booked. During the peak sea-        on the Riga–Stockholm route on 26 April.
                 complicity in money laundering.                               son, 50 per cent of the passengers came         In conjunction with this, the Vana Tallinn
                                                                               from Sweden and during the low season,          will be registered to the Latvian flag.
BENT MIKKELSEN




                                                                               CRITIQUE GROWS AGAINST CANAL TOLL HIKES During a public hearing on its proposed
                                                                               toll hikes, the Panama Canal Authority, PCA, met massive critique from international
                                                                               shipping organisations, national shipowners’ associations, diplomats from South Ameri-
                                                                               can states and some of the largest customers, among those Wallenius Wilhelmsen Logis-
                                                                               tics. All in all, PCA has received 21 written comments, which will be studied carefully, says
                                                                               PCA. The industry’s main complaints are the large hikes during a short period of time,
                                                                               which the critics doubt that the market can absorb. The hikes are also larger than earlier
                 The Nico (ex Varangerfjord).                                  indicated. The new toll system is to be launched within a few months.
                 DANISH CT OFFSHORE BUYS HSC The
                 former Norwegian passenger catamaran
                 Varangerfjord will be the flagship in the                     Norwegian cruise traffic
                 Danish company CT Offshore, which
                 purchased Varangerfjord this week and
                                                                               threatened by NOx fee
                 renamed it Nico. The ship is currently                        ssg-tønsberg. The new Norwegian NOx                Every year Norway has one million
                 lying in Svendborg for conversion into                        fee could cost around NOK 1,200 per             cruise passengers, each spending an esti-
                 an offshore multipurpose vessel. The                          cruise passenger and cost Norway 25 per         mated NOK 1,200. The cruise traffic is
                 vessel will be fitted with cabins, galley                     cent of the cruise traffic, according to        vital to many areas in Norway and any loss
                 and recreation areas. There will also be                      Cruise Norway. The fee is applicable to all     of cruise ship calls will be felt economical-
                 a work deck aft. The Varangerfjord was                        vessels sailing between Norwegian ports         ly. The new NOx fee, which does not apply
                 purchased from Finnmark Fylkesrederi                          and could force some cruise operators to        to ferry traffic to an from Norway, came as
                 and until recently was employed trans-                        avoid Norway and increase visits to other       a surprise to most cruise operators and the
                 porting workers to and from the                               Scandinavian ports, especially in the Baltic.   extra cost has not been included in cruise
                 Snøhvit-field off Hammerfest and                              Cruise ships may also be forced to stop all     prices.
                 already has an approval from Norwe-                           auxiliary machinery while in port and buy
                 gian Statoil.                                                 electricity from ashore.                                                More news on page 84 >


                 6                                                                                                       SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
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           Safety                                                                                                            SES Onboard
                                                                                                                       The SES Onboard section
                                                                                                                focuses on Safety, Environment
           Environment                                                                                            and Security issues of interest
                                                                                                                for ship operating professionals
                                                                                                                      at sea and in shore-based
           Security                                                                                                               organizations.




                   Editor: Cecilia Österman | Phone +46 31 62 95 88 | E-mail: cecilia@shipgaz.com | www.sesonboard.com


     Free enterprise                              holds her until the Greek owners, The-            According to ITF, the crew – most of
                                                  sarco Shipping, has settled their bill, a      them from Myanmar – earn as little as
     – to what cost?                              tab that has run up to hundreds of thou-       USD 1.50 an hour, but they have not

     T   rinity Sierra, a Cyprus-flagged bulk
         carrier of 15,612 GRT has been
     detained in the Savannah River since last
                                                  sands of dollars.

                                                  Judging by the owners’ previous histo-
                                                                                                 been paid since May. To date, the good
                                                                                                 people with the local Seaman’s House
                                                                                                 are helping the crew with clothing for
     October. Reading the list of 42 deficien-    ry, this will take time. On her last voyage,   the cold weather, refreshments and
     cies regarding safety equipment, lifeboats   she picked up a load of sugar in China         phones so they can call home. Things
     and crew living conditions, I say it is      for the US. On their way, the owners           an employer should provide. The crew is
     with all right.                              decided on a little detour to Lagos with       left in a vacuum. The Trinity Sierra is but
        But then there is the small issue of      a deck load of steel for extra profit. The     one example of free enterprise at
     the crew. Without a visa they have been      Lagos port of call lasted a month and          the freest. But
     stuck onboard for five months, watching      resulted in one Nigerian stowaway and          must it be at
     other ships come and go.                     a seriously annoyed owner of the sugar         any cost?
        The ship is cleared by the USCG since     load, an owner who even had to pay to                             cecilia österman
     end-January but now the US Marshall          get the ship out of Lagos.                                                cecilia@shipgaz.com




New agreement signed                                    Baltic cooperation against crime Representatives from the Swedish cus-
                                                        toms, Coast Guard and the border police in Stockholm met with their counterparts
for eye in the sky
                                                  from Helsinki, Turku, Mariehamn and Tallinn at a seminar on March 7–8. The aim is to
      The European Maritime Safety Agen-          coordinate the border control in the Baltic Sea area in the fight against crime. An opera-
      cy (EMSA) and the European Space            tive meeting is held in May to strengthen the cooperation between the authorities and
Agency (ESA) have signed an agreement             develop the daily joint effort.
on cooperation in maritime monitoring
and surveillance.

Alert to EU states                                Inspection campaign resulted
When a deliberate or accidental oil spill is
detected by satellite radar images, an alert
                                                  in 128 ship detentions
will be sent to EU coastal states and EMSA              Between February 1 and April 30,         rect recording of maintenance were veri-
within 30 minutes.                                      2006, the 25 maritime administra-        fied in detail for compliance with Marpol
   The CleanSeaNet system will provide            tions of the Paris MoU visited 4,614 ships     Annex I.
analysed images from Envisat and Radarsat         in a Marpol inspection campaign.                  3,213 deficiencies were recorded and
satellites. Operations begin in mid-April            During every port state control inspec-     128 ships were detained with serious defi-
with receiving stations in Norway and Italy,      tion, the ships’ oil filtering equipment,      ciencies. On 360 ships, no evidence was
and the Azores from 2008.                         auxiliary boilers, their operation and cor-    found that the ship had discharged into
                                                                                                 port facilities or burnt sludge in the incin-
                                                                                                 erator, indicating that illegal discharges at
          A discussion forum has been launched on SES Onboard.                                   sea may have taken place. On 86 ships, the
       Join the forum for Safety, Environment and Security issues at                             inspectors found illegal overboard connec-
                                                                                                 tions from the sludge tank. The results will
                        www.sesonboard.com                                                       be discussed at the Port State Control com-
                                                                                                 mittee meeting in May 2007.

                                                                                          SCANDINAVIANSHIPPINGGAZETTE•MARCH23,2007
                      Life saving                                                                                                     Barrot slams




                                                                      PäR-HENRIkSjöSTRöM
                      feedback                                                                                                        sluggish
                      forum launched                                                                                                  member states
                            Intertanko, Intercargo and ILAMA                                                                                 The EU Commission’s vice president
                            (International Life-Saving Appliance                                                                             and transport commissioner Jacques
                      Manufacturers Association) have launched                                                                        Barrot has grown tired of the resistance to
                      a joint feedback forum.                                                                                         new maritime safety regulations from cer-
                         Crew members, being the users of life-                                                                       tain member states. In an interview with
                      boats and other life-saving appliances, are                                                                     AFP, he identifies three member states –
                      encouraged to provide their comments,                                                                           Malta, Cyprus and Greece – as states drag-
                      thoughts and input on how equipment                                                                             ging their feet over the latest rule package.
                      can be improved to minimize accidents,                                                                             “They have made maritime transport a
                      enhance safety and improve ergonomic                                                                            pillar of their economies. They are the least
                      design.                                                                                                         inclined to accept changes”.
                         Intertanko will collect and assess                                                                              According to Barrot, there are member
                      the feedback but the forum is open                                                                              states, but this time without mentioning
                      to all crews no matter the ship type.                                                                           anyone, that “are hiding mediocre ships
                      All information will be treated confi-                                                                          under their flag”, and these states “will have
                      dentially. You can reach the forum at:                                                                          to put their house in order”.
                      lifeboats@intertanko.com
                                                                                                                                      Combined efforts
                                                                                                                                      against death traps onboard
                      Baltic Sea temperature rises 3–5 degrees                                                                               After several serious accidents with
                            A new Helcom report projects a rise                        one to two months and by two to three                 crewmembers and stevedores enter-
                            in the mean annual temperature                             months in the central parts.                   ing unventilated cargo holds, two Swedish
                      between three and five ° C for the Baltic Sea                      The greatest effect of this climate change   authorities have joined forces.
                      as a whole, during this century. The larg-                       would be eutrophication and changes in            The Maritime Administration and the
                      est part of this temperature increase would                      the biodiversity. According to Helcom, it is   Work Environment Authority has sent
                      occur in the east and north of the Baltic                        necessary to improve measures to prevent       an official letter to all Swedish harbours
                      Sea during winter months and in the south                        ballast water releases and reduce nutrients,   and other parties concerned, informing
                      during summer months.                                            heavy metals, hazardous organic pollutants     them of the risks and of the liability as
                                                                                       and emissions from fuel combustion and         employer.
                      decreasing length of ice season                                  antifouling paints.                               The risk is especially high during load-
                      Over the past century, the length of the ice                       Ships add to the eutrophication of the       ing and unloading different organic mate-
                      season has decreased by 14 to 44 days and                        Baltic Sea through discharge of sewage         rial, such as wood-based products and
                      the ice season is projected to decrease fur-                     and wastewater. The contribution is rather     fish. Since hazardous gases develop that
                      ther. Researchers believe the ice season in                      small, but not negligible due to the great     displace the oxygen, the quality of the air
                      northern parts of the Baltic could decrease                      sensitivity of the marine environment.         must always be controlled before entering.
                                                                                                                                      The employer must also make sure that
PäR-HENRIkSjöSTRöM




                                                                                                                                      personal protective equipment is available
                                                                                                                                      and used.
                                                                                                                                      Formoreinformation,see
                                                                                                                                      www.sesonboard.com




                                                                                                                                      loss prevention
                                                                                                                                      toolBox
                                                                                                                                      in co-operation with


                                                                                                                                      MorE nEws, soUrcEs And links
                      TheBalticwillgetwarmerandtheiceseasonshorter.                                                          www.sesonboard.com


                      SCANDINAVIANSHIPPINGGAZETTE•MARCH23,2007                                                                                                             
                                                                                                                                        EDITORIAL




The art of navigation in ice
D
                 espite alarming reports of      breaker fleet is by no means sufficient.          ing in icy waters, training is very impor-
                 global warming it has hap-      Already during a normal ice winter, when          tant. But for those visiting the area once
                 pened again. Large areas in     the Gulf of Botnia, Åland Sea and the             or maybe only now and then, ice advisors
                 the Gulf of Bothnia and         whole Gulf of Finland is covered by ice,          is a working solution. A pilot or a deck
                 Gulf of Finland are covered     the large number of vessels in the area will      officer boards the vessel at the ice edge
by ice. In the end of February most of the       provide more than a match for the ice-            and provides the master with ice-knowl-
icebreakers in the northern Baltic Sea area      breakers. Especially the large aframax-           edge and information about how to pro-
were in service. Without taking up a stand       tankers may present a problem as they,            ceed.
in the emotional debate about the conse-         despite their ice class, are no icebreakers.         Such a service exists for example in Fin-
quences of the greenhouse effect, we have        So far there are only two icebreaking afra-       land, but so far the interest for it has been
to live with the fact that there will be cold    max-tankers, which are equipped with              quite low. As long as these are not manda-
winters up here in the north, also in the        podded propulsion and capable of sailing          tory services, most of the owners and char-
future for many years to come.                   independently in most ice conditions.             terers will probably see them only as
    From the shipping industry’s point of                                                          another extra cost.
view cold winters mean nothing else than                                                              Even though the problems of winter
trouble. When the ice cover grows, sched-            Perhaps we one day may                        navigation are discussed in several forums,
ules lose their significance. Shipping is left                                                     consensus about compulsory measures
in the hands of the natural forces – and            have an “ice class” also for                   still seems to be far away in the future. To
the icebreakers. The costs increase dramat-         the crew, certifying that the                  have the slightest chance to advance fur-
ically as the bunker consumption may be                                                            ther from the discussion stage, all the
several times higher than in open water.               navigators have been                        Baltic Sea countries concerned must stand
    Navigation in ice is not easy. During the                                                      united.
first half of the last century, vessels were
                                                    trained in ice navigation?                        Today the authorities’ traffic restrictions
even lost as their hull structures crushed                                                         provide an efficient way to regulate the
under the pressure of ice. Today the rules          Sharing resources is a solution. There is      traffic and eliminate unsuitable vessels. In
of the highest Finnish/Swedish ice classes       a long tradition in co-operation between          Sweden and Finland these are connected
demand such strong hulls that total losses       Sweden and Finland when it comes to ice-          to ice class and deadweight. Both the
due to ice pressure most likely have been        breaking. The key to the successful co-           restrictions and the ice classes are harmo-
eliminated in Baltic Sea conditions. Still,      operation is of course that the two coun-         nized in these two countries. The
it is common that the hull, or even more         tries have a similar attitude towards winter      Finnish/Swedish model would certainly
often the rudder and the propeller, are          navigation and that the cultural differ-          work in the whole Baltic Sea area. Today
damaged by ice. During an icy winter the         ences are minimal.                                there is a jungle of different ice classes,
local repair yards are kept busy.                                                                  issued by authorities or classification soci-
                                                 It is also essential that the crews of all ves-   eties.
Despite stronger vessels, many of the            sels regularly sailing in the northern Baltic        Just a thought: Perhaps we one day may
dangers of ice navigation remain. If a ves-      Sea have adequate knowledge about navi-           have an “ice class” also for the crew, certi-
sel gets stuck in a drifting ice field, there    gation in ice. The officer on watch must          fying that the navigators have been trained
may be a risk that it enters shallow water       understand the signs of nature and the            in ice navigation? Why not let this lead to
and runs aground. The collisions between         behaviour of an ice field to find the easiest     discounts in the fairway dues?
vessels in a convoy form a chapter them-         way to get through. Following the direc-             It is all positive that winter navigation is
selves. As the ships run with maximum            tives from the icebreakers is a good start,       discussed in the Baltic Sea countries. The
power and the distances in the convoy            but this does not eliminate the need of ice       problem is that this
must be kept at a minimum, a following           knowledge onboard the vessel too.                 discussion usually
vessel occasionally runs into the stern of a         During normal ice conditions a modern         disappears with
leading vessel, that loses its speed in heavy    vessel built to the highest ice class should      the ice in the
ice pressure. It is also quite common that       be able to manage quite independently             spring.
an icebreaker leading a convoy suddenly          from icebreaker assistance. And, in theory,
stops in a ridge and if the officer on watch     when all vessels are strong and manned
in the following vessel is not extremely         with competent crews, many problems
alert, it may run into the icebreaker’s          could be eliminated. The icebreakers
stern.                                           could concentrate their resources to areas
   When a severe ice winter occurs next          where it is really impossible to force
time – that is for sure going to happen, it      through.                                          pä r - h e n r i k s j ö s t r ö m
is just a matter of time – the whole Baltic          But how is it possible to reach such an       Editor, Finland
Sea freezes. In that stage the current ice-      ideal situation? For officers regularly sail-     Phone: +35 2 242 62 50, E-mail: parhenrik@shipgaz.com


SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                        11
                                                   DIY solutions on
                                                                                           T
                                                                                                         he result from the first cycle of
                                                                                                         the MTO-Sea project (Man
                                                                                                         Technology Organisation) was
                                                                                                         presented at a seminar at
                                                                                                         Kalmar Maritime Academy
                                                                                            (KMA) on March 1.
                                                                                                Christer Bergquist at KMA is the pro-
                                                                                             ject leader and Margareta Lützhöft at
                                                                                              Chalmers, Jonathan Earthy and Brian
                                                                                              Sherwood-Jones at Lloyds Register and
                                                                                               last, but certainly not least, the cadet


       According to the MTO-Sea
       project study, the items of
       equipment for navigation have
       almost doubled since 1990. It is
       not always easy for mariners to
       keep up.




                                                                                                                                        TOVE SVENSSON



Working with IBS since a decade
Wallenius Marine has worked with              the same ECDIS. And when we go for           and machinery, which is tested by the offi-
the integrated bridge system, IBS, for        training, we use the simulator in Turku,     cers before the prototype is fitted on the
their vessels for over a decade and has       where we have access to three generations    new ship.
an owner-supply delivery of the               of our own bridges and our officers can
navigation equipment to the                   practise with our instruments and our pan-   Appreciated work
newbuildings. The concept is simple.          els.”                                        The story of having their own ergonomist
                                                 When it is time to design a bridge on a   has a long history in the company, and
“You should be able to go from one ship to    new car carrier, a team of captains get      began when Wallenius did an inventory of
another and it should be more or less the     together with an ergonomist. With gained     the workstations at their office in Stock-
same bridge”, says Per Croner, president of   experiences from previous ships, they cre-   holm. It was an appreciated work and
Wallenius Marine AB. “The same radar and      ate a mock-up, a model of the structure      when the project was finished in the office



12                                                                                   SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
non-integrated bridges
researchers at KMA compose the research                                                       BOWTHRUSTER”. Innocent looking in
team.                                                                                         all its simplicity at first sight, but ponder
   The project was launched with the aim                                                      the consequences. A forgotten cooling
to close feedback loops between the mak-                                                      water pump may well result in a failing
ers of the increasingly complex systems                                                       bowthruster or a black-out, in the worst sce-
onboard and the users, in this case the offi-                                                  nario leading to a grounding or collision.
cers on the bridge.                            methods and got a digital camera and a            The captain of a German container ship
   More and more equipment is fitted on         logbook for data collection. During four       was recently released after eight months in
the bridge and in the engine control room.     months, they described, discussed and          an American high security prison. He was
According to the study, the items of equip-    used the equipment on the bridge together      sentenced after a failing bowthuster caused
ment for navigation have almost doubled        with the officers onboard. When the cadets      a fatal accident.
since 1990. It is not easy for the mariners    returned to school, they were debriefed           Margareta Lützhöft asks the audience:
to keep up-to-date and find the time for        and the vast job of analysing the logbooks        “A note like this gives you a hint of what
learning how to use it properly. Such a sim-   and photographs could begin.                   is wrong with this design. If it is important
ple device as a ship clock can have 29 but-       “There were a lot of photos and com-        that the cooling water pump is started
tons and a manual on more than ten pages.      ments in the logbooks and some students        before the bowthruster, why is it not con-
                                               even came up with proposals for redesign       nected to do so automatically?”
                                               even if this was not something they had to
                                               do”, says Margareta Lützhöft.                  Paper work on the watch
        An officer on watch                        Several students mentioned that they        An animated discussion began when the
     is obliged by regulations                 started seeing with new eyes and think in a    pictures in the presentation showed com-
                                               new way and this is a first indicator of suc-   puters and office equipment not related to
       to concentrate on the                   cess, the project team notes.                  the traditional bridge work.
                                                                                                Both Christer Lindvall, president of
        navigational duties                    Disturbing lights                              IFSMA and managing director of the
     and watch keeping only.                   A common finding was lights disturbing          Swedish Ship Officers’ Association, and
                                               the night vision. The inventive solutions      Christian Lindquist from the SMA stressed
                                               ranged from taping old charts over entire      that office work shall not be carried out on
   A class of final year cadets was given the   screens to custom made dimmer sheets.          the bridge.
opportunity to volunteer in the research          Another frequent modification is notes         “An officer on watch is obliged by both
programme. 18 out of 42 students accepted      and memos posted on various equipment.         Swedish and international regulations to
and in the end, eight logbooks were            One example was the sign: “START               concentrate on the navigational duties and
returned. Before signing on for their last     COOLING WATER PUMP BEFORE                      watch keeping only. The administrative
onboard practice period, the cadets were                                                                     work that goes with the
prepared with lectures on usability and                                                                      watch may include making
human factors, ethics and basic scientific                                                                    notes in the logbook and



environment, it was decided to launch the                                                     est moving of the electrical panel out of
activity onboard.                                                                             the engine control room meant some
   “If we do it at the office, then naturally
                                                     If we do it at the office,                compromises that were not all that suc-
we should do it on the ships as well, says               then naturally                       cessful. Hopefully the issues will soon be
Per Croner, and continues: It is a pro-                                                       solved.
nounced part of the company’s strategy to                we should do it                         When it comes to upgrading the older
be world leading in work environment                                                          ships in the fleet, the same manufacturer
onboard. It is important when we want to
                                                       on the ships as well.                  delivers the new equipment to minimize
attract capable young persons.”                                                               interface problems.
   He emphasises that the bridge design is     stewards, and a lot of work has also been         “There is no fitting of our own gadgets,
just one part of the newbuilding program.      done in the engine room, which has been        the aim is to replace and install in a struc-
The ergonomist has also worked with the        divided into several spaces.                   tured way”, says Per Croner.
layout in the galley together with the cook       However, Per Croner admits that the lat-                           cecilia österman



SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                           13
                                                                                                lack of basic ergonomics in consol layout.
                                                                                                Dr Earthy stated that basic ergonomics is
                                                                                                often not there, not even from the begin-
                                                                                                ning, and that it worsens as the ship gets
                                                                                                older and new machinery is fitted.
                                                                                                   “It sounds like an old skippers tale, but
                                               DIY solution to a dimming problem.               we have heard stories of how the decision of
                                                                                                where to put a new piece of equipment was
                                               perhaps the odd filling of a time sheet but       based of the length of cable the service tech-
                                               nothing else”, says Captain Lindvall.            nician making the installation had brought
                                                                                                onboard”, says Margareta Lützhöft.
                                               The reality                                         The clash is inevitable when old and
                                               But the photographs showed a reality not         new equipment from different manufactur-
                                               always by the book and many of the new           ers are connected and fitted in the worksta-
                                               office spaces that has sneaked its way in to      tions somewhat haphazardly, and with the
To know where an “object at two o’clock” is.
                                               the bridge offer neither good lookout posi-      users introduced too late in the process.
                                               tions, nor an ergonomic workplace. And              The project will continue at the academy
                                               the fact that the office equipment is not         in Kalmar but it will also be extended to
                                               designed for use in the special environ-         Chalmers and there include the engine
                                               ment found onboard a seagoing vessel, cre-       department.
                                               ates a need for more ingenious solutions by         Christer Bergquist proudly presented the
                                               the mariners.                                    cadets with their well-deserved certificates
                                                  “In terms of office equipment; whether         and Dr Earthy gave his thanks to the
                                               we like it or not, it is not going away”, says   “guinea pigs” for their participation and
                                               Jonathan Earthy of Lloyds Register, and          wished for a long term feed back.
                                               continues: “But it is not safe. Watchkeep-                              cecilia österman
                                               ing is a fulltime job.”                          The photos are samples from the
Not made for high seas.                           Furthermore, the researchers observed a       MTO-Sea project.




                                                                                           »        More information on
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14                                                                                        SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
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                                                                                                   AKER YARDS
                                                                                                                services, the vessel newbuilding contracts
                                                                                                                with Aker Yards for delivery of quality
                                                                                                                ships in 2010 are valuable to Aker Oilfield
                                                                                                                Services. The total capital requirements of
                                                                                                                Aker Oilfield Services approach USD 1 bil-
                                                                                                                lion. This funding will consist of approxi-
                                                                                                                mately 30 per cent equity. Aker Innovation
                                                                                                                and DOF Subsea are contributing the
                                                                                                                equity needed to build up the company.




                                                                                                                   Whenever Kjell Inge Røkke
                                                                                                                    starts a new venture,
                                                                                                                     speculation is ripe.

Aker should                                                                                                     Building at Søviknes
                                                                                                                Aker Yards – Søviknes, will build the hard-


look beyond
                                                                                                                ware – four large well intervention/con-
                                                                                                                struction vessels, and an option for another
                                                                                                                two vessels. The owner (Aker Oilfield Ser-
                                                                                                                vices) has the option to cancel the last two


Shtokman                                                                                                        fixed vessels. The vessels are of Aker Yards
                                                                                                                design, type Aker OSCV 06 WI, developed
                                                                                                                for Aker Oilfield Services on basis of the
                                                                                                                OSCV 06 design, adapted for well inter-
                                                                                                                vention purposes.
                                                                                                                   Delivery of the first vessel is scheduled
                                                                                                                for spring 2010, and the following vessels
                                                                                                                will be delivered with approximately six
                                                                                                                months interval. The vessels will be 157
                                                                                                                meters long with a beam of 27 meters, and
                                                                                                                will be equipped with an active heave com-
                                                                                                                pensated crane, ROV, launching systems
                                                                                                                and a Derrick for well intervention purpos-
                                                                                                                es. The vessels will have DP Class 3 as well
                                                                                                                as Ice Class, and achieve a maximum speed
                                                                                                                of 18 knots, which is of significant impor-
                                                                                                                tance for global operations in order to min-
An artist’s impression of the new well intervention/construction vessel ordered by Aker
Oilfield Services at Aker Søviknes. The yard will deliver four such vessels, with an option for                  imize mobilization time.
another two. One vessel is seen here, in well intervention work on a template.
                                                                                                                Shtokman a long way off




A
                ker Oilfield Services was          expertise is helping oil companies increase                   Whenever Kjell Inge Røkke, who controls
                met with a cold shoulder          oil recovery rates from subsea wells in exist-                the Aker companies, starts a new venture,
                by investors in Oslo, Lon-        ing fields. The current plan is to build a                     speculation is ripe. For some odd reason
                don and New York when             fleet of up to six advanced vessels equipped                   the market seems to believe that all or
                the new company tried to          to take on specialized maintenance and                        some of the vessels will be deployed during
find USD 300 million in fresh capital in           intervention tasks at subsea wells at water                   a development of the giant Shtokman nat-
the middle of March. Needless to say, such        depths of up to 2,500 meters.                                 ural gas field in the Barents Sea. When the
an unexpected setback will not deter either           Aker Oilfield Services has entered into                    Shtokman development finally gets under-
Aker (through Aker Innovation), with 75           an agreement with Aker Yards to build ves-                    way – and Gazprom is in no hurry, even
per cent, or DOF Subsea, with 25 per cent.        sels (see below), which will be operated by                   though the European Community coun-
  The company established in March will           DOF Subsea. Aker Kværner will deliver                         tries dearly want the gas as quickly as possi-
offer its customers subsea light well inter-      advanced equipment and services to the                        ble – it will not be by 2010. Gazprom has
vention services by means of both riserless       new company. In a market with substantial                     other gas fields to handle before they take
and riser-based technology. The company’s         and growing demand for such subsea well                       on the mammoth task of developing

16                                                                                               SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
    Shtokman. Industry sources say that the           could easily finance the development, but
    first phase (of four) will at best start in 2015   not run it.                                            Gazprom hasn’t got
    with a price tag of a minimum of USD                 At this point it is appropriate with a
    15,0 billion. It is well to remember that         short recap of Shtokman and its develop-            the foggiest how to develop
    Shtokman (really Shtokmanovskoye) is by           ment. The field is located some 550 kilo-
    far the most challenging project interna-         metres northeast of the port of Murmansk.
                                                                                                              the Shtokman field.
    tionally. Almost none of the equipment            The giant field contains estimated reserves
    can be bought off-the-shelf, and most             of 3.2 trillion cubic metres (or 113 trillion   Vyborg, is 2,980 kilometres via Germany
    major parts will have to be developed on a        cubic feet) and 31 million tonnes of con-       and the Netherlands. This pipeline project
    conceptual basis. It is possible to build on      densate. Next year it is 20 years since the     is called Nord Stream (formerly North
    existing hardware, but in the end most            field was discovered. The development            European Gas Pipeline) and will have an
    components will be tailor-made. Neverthe-         poses formidable challenges. It is generally    ultimate capacity of 55 billion cubic metres
    less, serious analysts state that Gazprom         assumed the development would be split          per year. The leg from Gryazovets to
    cannot develop Shtokman without western           in four phases, with each phase to produce      Vyborg will link the Nord Stream to the
    technology. But even western companies            22.5 billion cubic metres per year and          important Russian Unified Gas Supply Sys-
    have to develop tailor-made solutions for         205,000 tonnes per year of condensate.          tem (RUGSS). When the link is complete
    the gas field.                                     After the completion of phase four, pro-        the system will be nearly 3,000 kilometres
                                                      duction should be 90 billion cubic metres       in length. Before Shtokman is even con-
    Gazprom in no hurry                               and 820,000 tonnes condensate per year.         templated, two other gas fields will be con-
    Experts suggest that “Gazprom hasn’t got                                                          nected. They are the big Yuzhno-Russkoye,
    the foggiest how to develop the Shtokman          Other priorities                                with reserves of 700 billion cubic metres,
    field”, not even after having received sug-        Contrary to a common view held in Nor-          and the super giant Bovanenkov on the
    gestions from western oil companies how it        way, Shtokman is not a top priority with        Yamal Peninsula (between the Kara Sea and
    could be done. They therefore suggest that        Gazprom. First they want to connect the         the River Ob estuary), with a staggering 4.5
    Gazprom is the wrong company to be in             Vyborg terminal near St Petersburg by a 48-     trillion cubic metres of reserves. We do not
    charge of the Shtokman development.               inch pipeline to Bacton in the United           think for a moment that Aker Oilfield Ser-
    Gazprom, which is Russia’s biggest compa-         Kingdom. The total length, including the        vices are focusing solely on Shtokman.
    ny, capitalised at around USD 260 billion,        860 kilometres leg from Gryazovets to                                       p et t e r a r e n t z




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Warmer winters but
no less need of icebreakers
                                                                                                                             PÄR-HENRIK SJÖSTRÖM




I
        n November, the Helsinki Commis-           This will have consequences for ship-         of course its effect on the ice season.
        sion, Helcom, will hold a ministeri-     ping in the area, and since shipping is an         Milder sea-ice conditions are not new or
        al meeting. Ministers representing       activity based on long-term planning of         future phenomena. This has been a trend
        governments from all nine Baltic         operations and investments, the challenges      during the past century, when the length of
        Sea states and the EU is expected to     ahead need to be addressed now.                 the ice season has decreased by 14–44 days.
adopt a Baltic Sea Action Plan to reduce                                                         The number of very cold days has
pollution in the Baltic Sea, one of the          Eutrophication must be controlled               decreased and during the past ten years, all
world’s most sensitive water basins.             The warming will increase stress of the         ice winters have been average, mild or
   One contribution to the minister’s basis      highly sensitive marine environment in the      extremely mild.
for decisions is a new report on the climate     Baltic Sea, and the politicians will face a        The scientists predict that the change
change in the Baltic Sea. More than 80 sci-      number of measures that the scientists say      during this century will be dramatic, and at
entists from 12 countries have contributed       is necessary to improve the situation.          the end of it, the Bothnian Sea, large areas
and the result is that the warming trend is         According to the scientists, eutrophica-     of the Gulf of Finland and the Gulf of Riga
faster in the Baltic Sea area than in many       tion must be controlled. The amount of          and the outer parts of the south-western
other regions.                                   nutrition input to the sea has to be reduced    archipelago of Finland will be on average
   The scientists expect the mean annual         as well as input of heavy metals and haz-       ice free.
air temperature to increase by three to five      ardous organic pollutants, and this could          The length of the ice season will
degrees during this century. Subject to          lead to further limitations of what ships are   decrease by 1–2 months in the north and
uncertainties in the climate model projec-       allowed to discharge into the sea.              by 2–3 months in the central part of the
tions, the scientists believe that the largest      The report recommends that vessel emis-      Baltic Sea.
part of the warming will occur in the            sions from fuel combustion and from                Last season, traffic restrictions (when
northern parts of the region in the winter       antifouling should also be reduced and bal-     assistance is given only to ice-classed ves-
and in the south during summer. The              last water releases prevented.                  sels) were in force for 155 days in the Bay
growing season is expected to increase by           Landscapes and habitats must be pro-         of Bothnia, for 118 days in the Gulf of
20 to 50 days in the northern parts and by       tected and native Baltic species conserved.     Riga, 112 days in the Sea of Bothnia, 111
30 to 90 days in the south.                      Possible consequences of future decisions       days in the Gulf of Finland and for 18 days
   During the same period, the mean sea          to this effect could be alterations of ship-    on the Swedish coast in the Baltic Sea. Less
surface temperature will increase by two to      ping routes and possibly traffic restrictions.   ice will lead to changes in operational pat-
four degrees, according to the projections          In an operational point of view, the         terns and in market conditions. Vessels
based on modelling studies.                      largest impact of the warming process is        without, or with low ice-class, will be able

18                                                                                         SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
Steering for Asia
At Broström, we are looking forward to a doubling of our total capacity
in Asia in 2007.
   To further strengthen our position in this region, we are now
implementing our partnership with the Turkish company Dünya
Shipping. During a 15-month period, starting in October 2006, we will
launch eight new vessels to satisfy the oil and chemical industries’
increasing demand for safe and reliable logistic services.
   Our goal is to continually increase our ability to provide both current
and future customers with logistic services prioritising quality, safety
and environmental care.




www.brostrom.se
to trade in the Baltic Sea markets for a         Technology. It is a part of the EU Motor-        needed. The only vessel design that can
longer period of time.                           ways of the Baltic Sea project and focus is      operate fully independent is the
   During the ice season 2005–2006, the          on ore transports between Luleå in Sweden        DAS/Azimuth vessel.
Baltic states deployed some 35 icebreakers       and Raahe in Finland.                               The study shows lower operational and
at the most to assist maritime transport in         Ore transports in the Bay of Bothnia          environmental costs in all three alterna-
the region.                                      require almost one icebreaker full time. If a    tives. The DAS/Azimuth alternative shows
   A shorter ice season of course doesn’t        new generation of ore carriers can operate       the best performance with fuel and envi-
mean lesser demand for resources to keep         independent of icebreaker assistance, this       ronment costs almost 25 per cent below
shipping lines open during the cold peaks.       resource could be deployed in another            the reference vessel costs.
   Ice breaking is a costly business and the     area. The scope of the study was to design
present capacity is not sufficient to meet a      three different ice-class 1A Super bulk car-     No incentive for a shipowner
growing demand for assistance during nor-        riers and compare those with a convention-       As always, there is however a snag in it.
mal and severe ice seasons from a boosting       al design.                                       The DAS/Azimuth vessel is EUR 10 mil-
maritime transport sector.                          Investments, operational costs and envi-      lion, or 20 per cent, more expensive to
                                                 ronmental impacts are compared. The              build, and even if the vessel would be total-
BIM study                                        three designs are:                               ly exempted from the fairway dues, this is
According to Baltic Icebreaking Manage-           • a traditional ice bow vessel with a single    far from enough to be an incentive for a
ment (BIM), the industry and shipping            CP propeller and a slow-speed diesel             shipowner.
companies must find alternative means to          engine                                              A conclusion in the report is that, look-
secure time-scheduled traffic. The organisa-       • a double-acting vessel (DAS) with             ing at the overall picture, if sufficient eco-
tion, which has members from all Baltic Sea      Azimuth propulsion and                           nomic incentives are created, there is
states, has therefore initiated a study aiming    • a vessel similar to the double-acting ves-    national economic gain to be made. An
at finding solutions for frequent lines in        sel, but with CRP-propulsion.                    independent vessel would remove opera-
areas covered by ice for a long time.               The reference vessel is a conventional        tional and environmental costs, and not
   The study is financed by the authorities       bulbous bow vessel with a slow-speed             least investment costs for one icebreaker.
in Finland, Sweden, Estonia, Denmark,            engine and a CP-propeller.                                                  rolf p nilsson
                                                                                                  References:
and St Petersburg, with EU as co-financer,           The comparisons include emissions and         Helcom, www.helcom.fi
and has been carried out by Aker Arctic          costs for the icebreaker when assistance is      BIM, www.baltice.org




                                                                                             G The private repair yard for coastal
                      Shiprepairs – Classifications                                              tonnage and special purpose vessels
                                                                                                 in the Port of Gothenburg
                                                                                             G Strategic location in the Port of
                                                                                                 Gothenburg
                                                                                             G Small and flexible organisation




     Our dry-docking facilities:
     Floating Dock No. 1        Floating Dock No. 2         Slip-way                                 Manufakturgatan 3
     Max 75x13,5 m              Max 110x15,0 m              Max 25x5,5 m                             SE–417 07 Göteborg
     Lift cap. 1600 tonnes      Lift cap. 3000 tonnes       Lift cap. 70 tonnes
                                                                                                     Phone +46 31-23 52 00
                                                                                                     Telefax + 46 31-22 79 79
     Max.tonnage 2.500 dwt      Max. tonnage                Max. tonnage 100 dwt
                                                                                                     E-mail: info@gotenius.se
                                5.000–6.000 dwt
                                                                                                     http://www.gotenius.se



20                                                                                         SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
  Zodiac, mastering the elements




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20 years after the Herald of Free Enterprise disaster

193 lives lost
to the disease of sloppiness
20
                         years have past         degrees to port and lost main and emer-          was still asleep after his break and since it
                         since the fatal acci-   gency power. She capsized in less than a         was his job, no one else closed them. The
                         dent of the ro-ro       minute and ended on the side, half-sub-          First Officer should have stayed on the car
                         passenger ship The      merged in shallow water on a sandbank 90
                         Herald of Free          meters from the shore.
Enterprise. In the evening of March 6,              In July 1987, a report from the public             Put pressure on the first
1987, she capsized shortly after leaving Zee-    inquiry on the sinking concluded that neg-
brugge for Dover. 193 people, passengers         ligence at every level of the company’s hier-       officer if you don’t think he
and crew, lost their lives.                      archy was what led to the disaster and that          is moving fast enough …
   The investigation revealed that due to        the failure of the shore management to give
negligence, nobody closed the bow doors          proper and clear directions was a contribu-
before sailing. Less than two minutes after      tory cause of the disaster. In the report, the   deck to make sure the doors were closed,
leaving the harbour, large quantities of         wreck commissioner wrote: “From top to           but the urge to keep the schedule made
water began to enter the car deck. The           bottom the body corporate was infected           him leave the car deck and go to the
open car deck had no dividers, thus allow-       with the disease of sloppiness.”                 bridge. The investigation found that this
ing vehicles to drive in and out easily.                                                          was normal procedure.
However, as she turned, it meant all water       On schedule at all cost                            The operations manager in Zeebrugge
flooded to one side.                              Apparently, the assistant bosun was              had sent a memo in August 1986 that read:
   Within seconds, the ship began to list 30     responsible for shutting the bow doors. He       “Put pressure on the first officer if you

22                                                                                          SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                            don’t think he is moving fast enough …            in 1989, came the resolution adopting the
                                            Let’s put the record straight, sailing late out   first guidelines for a safety management sys-
                                            of Zeebrugge isn’t on.”                           tem. The purpose was to ensure safety and
                                               Finally, there was the captain who was         prevent maritime casualties and pollution
                                            not able to see the bow doors from the            of the sea and this was the forerunner to the
                                            bridge. He just assumed that they were            ISM code that is mandatory since 1998.
                                            closed.                                              One of the most important amendments
                                                                                              is the SOLAS 90 that deals with the stabili-
                                            Other causes                                      ty of passenger ships in damaged condi-
                                            Since one of the Herald’s sister ships with-      tion. It was actually initiated after the cap-
                                            out incident once sailed from Dover to Zee-       sizing of the European Gateway in 1982,
                                            brugge with the bow doors open, it is             but the work was no doubt put in higher
                                            believed that the open doors alone did not        gear after the Herald disaster. Britain want-
                                            cause the capsize. But the Herald was also        ed to make SOLAS 90 mandatory also on
                                            ballasted down to fit the loading ramp at          existing ships, but although the IMO
                                            Zeebrugge, which was too low at high tide,        member states agreed that an improvement
                                            and this together with the squat effect in the    was needed, the majority felt that the stan-
                                            shallow water caused her to take in water.        dard was too high and a modified, less
                                               Many of IMOs most important initia-            costly alternative was agreed upon. After
                                            tives have been prompted by disasters, and        the Estonia sank in 1994, further measures
                                            the shocks of the Herald of Free Enterprise       were introduced and this time the SOLAS
                                            without doubt helped improve the ro-ro            90 standard was accepted.
                                            safety.                                              The Herald of Free Enterprise was later
                        The investigation      In 1988 came amendments regarding the          lifted and renamed the Flushing Range.
                        revealed that due   integrity of the hull and superstructure,         She embarked on her final voyage to a
                        to negligence,
                                            damage prevention and control. It is worth        scrap yard in India in 1988, thus ending a
                        nobody closed
                        the bow doors       noting that the changes entered into force        sad chapter in maritime history.
                        before sailing.     only 18 months after adoption. A year later,                              cecilia österman




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SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                           23
                     Trimming
                     the transport
                     chain with NETSS
                                                                                                                  the same SECU-box all the way to the ter-



                                                                                              FREDRIK DAVIDSSON
                                                                                                                  minal on the continent and Britain.

                                                                                                                  From a chain of projects
                                                                                                                  The NETSS stems from a EU-project
                                                                                                                  called IPSI in the mid 1990’s. IPSI later
                                                                                                                  developed into another project called Base-
                                                                                                                  port. This project aimed at bringing all the
                                                                                                                  paper from Stora’s mills in Sweden to
                                                                                                                  Göteborg, thereby making it a hub in Sto-
                                                                                                                  ra’s transport system, this was before the
                                                                                                                  fusion between Swedish Stora and Finnish
                                                                                                                  Enso. So far the project wasn’t much about
                                                                                                                  shipping.


                                                                                                                     A SECU is the equivalent
                                                                                                                      of 4 TEUs and in this
                                                                                                                         system we handle
                                                                                                                        80 TEUs per hour.
Jamie Pagara, second mate on the TransPulp, uses a remote control to operate the linkspans,
upper and lower ramps, so they reach the ship’s weather and main deck.

                                                                                                                     “We started by looking at the railways.




S
           tora Enso’s transportation sys-     today”, says Stefan Horndahl, director of                          How many tonnes can we put on one
           tem, NETSS, is now complete.        special projects at Stora Enso Transport                           metre of railroad, the only thing stopping
           Eight ships and 2,750 SECU-         and Distribution in Göteborg.                                      us was the overhead power transmission
           boxes transport the industrial        NETSS, the North European Transport                              lines. That’s how we came up with the
           groups paper in a fully integrat-   Supply System, is Stora Enso’s transport                           SECU”, says Stefan Horndahl.
ed system from the mills in Sweden and         system connecting mills in Sweden, mills                              The SECU, Stora Enso Cargo Unit, is a
Finland to the terminals on the continent,     in southern and northern Finland, via                              very central ingredient in the NETSS since
with Göteborg as the NETSS hub.                Göteborg to continental terminals. Ship-                           this is the box into which up to 80 tonnes
  “There is no system more effective           ping paper from the interior of the mills in                       of paper can be stuffed already inside the

24                                                                                       SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                FREDRIK DAVIDSSON
mill, never to be handled again until it
reaches the terminals on the continent. At
a distance, or to the untrained eye, the
SECU looks just like any other container
but it is in fact just a weather proof cover
placed on a cassette, and the SECU is also
a lot larger than any standard container.
   The SECU never passes the terminals in
either Britain or on the continent since
they are built to fit so precisely into the
Swedish railway system they are simply too
large to be put into traffic in any other
country. The cassette on the other hand is
really nothing more than a very large pallet
and a piece of equipment used by many
other industries but in the NETSS case
specially designed to fit the translifters
from TTS Port equipment, a company
based in Göteborg that has been involved
in the project since the very beginning.
                                                                    The tug masters can work on both weather and main deck, as soon as the upper ramp has
   “Baseport and NETSS are really the                               been lowered.
only, such large, project where suppliers
have been involved from the beginning”,                             lifters so that the translifter goes in under    bit different in various ports, depending on
says Lars-Gunnar Nyström at TTS.                                    the cassettes at the bottom of the SECU,         the space available. In Göteborg it is built
                                                                    lifts it up and takes it straight to the ship.   in a way that enables the tug-masters to go
Step-by-step development                                            Since the large paper rolls are not handled      up one ramp and down another, making it
The traffic in NETSS has been developed                              at any time during the shipping the              a simple one-way system.
in stages where first the mills in Sweden,                           amount of damaged goods has been greatly            The linkspans give access to both weath-
via Göteborg, were connected to Zee-                                reduced, an achievement aimed at from the        er and main deck on the purpose built ves-
brugge and Immingham during Baseport.                               very beginning.                                  sels with straight lanes and the dock work-
In July 2005 southern Finland and Tillbury                             The Port of Göteborg has made large           ers can roll on or off the SECUs from two
were included, this was the first NETSS                              investments to facilitate the NETSS traffic,      levels at a time. The purpose built vessels
phase. Norhern Finland and Antwerp were                             a huge area has been laid with concrete to       from Wagenborg and Transatlantic can
incorporated in the system in July 2006                             facilitate the handling of the SECU-boxes        take 130 and 150 SECUs respectively.
and finally traffic on Lübeck from January                            before and after loading and discharge of        They have automatic lashing, either
this year was the last stage.                                       the vessels. The trains from the Swedish         through special friction decks or automatic
   From the Swedish mills the paper arrives                         mills stop on the edge of this concrete area,    lashing equipment.
in Göteborg by train, 24 trains arrive at the                       reducing transports inside the harbour to a         All together these components makes a
harbour every week. Semi-automatic strad-                           minimal.                                         very effective loading system
dle carriers unload the trains. They put the                           Another vital part in the ports handling         “A SECU is the equivalent of 4 TEUs
SECUs on the ground where they are                                  of the very heavy SECU, weighing over 90         and in this system we handle 80 TEUs per
picked up by skilled drivers who manoeu-                            tonnes in total, is the linkspans. These         hour, the best container handling cranes
vre their tug masters with trailering trans-                        ramps connecting vessel with quay look a         can do 40 TEUs per hour. That’s how




 Find out more about us and our fire doors at NorShipping                                                                                                     ™

 in Oslo this June. Stand no. D05-23
 Please read more on our website www.hellbergs.com                                                                         DOORS YOU CAN RELY ON

SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                                 25
                                                                                                            responsible for fleet management in the
                                                                                                            NETSS traffic, which constitutes approxi-
                                                                                                            mately 20 per cent of the 17 million tonnes
                                                                                      Veitsiluoto           of cargo handled by the division.
                 NETSS                                                  Kemi                                   The system is profitable even if it only
                 Shipping paper in the                                                   Oulo mill          transports its own goods, the paper from
                 same box from mill to                                         Oulu                         the mills, and returns with the empty
                 crossdocking terminal.
                                                                                                            SECU-boxes. But of course Stora Enso
                                                                                   South Finnish            does not mind filling the boxes on the
                                                                                   Mill Cluster             return trip back to the Scandinavian
                                                                                                            ports.

                                           Kvarnsveden     Grycksbo                       Kotka

                                                                 Fors
                                                                                                                 This, from the beginning,
                                          Skoghall
                                          Gruvön                                                                      Swedish project
                                     Göteborg                                                                     has been implemented
                                                         Hylte                                                     on a corporate level.
                                                                        Running since July 2005
     Immingham                                                          Running since July 2006                “To a certain extent it is already a two-
                                                                        Running since January 2007
                                                                                                            way flow, for example we have made a deal
                                                                        Hub                    Ship         with Volvo to ship cars from Zeebrugge to
       Tilbury                               übeck
                                            Lübeck
                                                                        Cross docking          Train
                                                                                                            Kotka”, says Jonas Wåhlin.
                                                                        Terminal               Truck
                                                                        Mill
                                                                                                               There is also a considerable amount of
           Zeebrügge
           Zeebrügge         Antwerp                                                                        convenience goods flowing into the Port of
                                                                                                            Göteborg in Stora Enso’s boxes.
                                                                                                               With the last part of the system, the
                                                                                                            northern Finland to Göteborg leg, opened
effective this is”, says Michel Lyrstrand,           as up to 150 SECUs, they spend less than               for traffic in January 2007 the system is
research and product manager at TTS Port             six hours in port. Nevertheless, TTS and               complete and no more extensions are
Equipment.                                           Stora Enso have signed an agreement to do              being planned at the moment. Any devel-
   Wagenborg’s vessels Spaarneborg, Schie-           a study with automatic guided vehicles                 opment lies in finding more goods for the
borg, Slingeborg and Transatlantics Trans-           (AGV). Where the translifter is trans-                 return trips.
Paper, TransPulp and TransTimber are the             formed into a vehicle that does not need a                “NETSS has been a successful project,
purpose built vessels in the system char-            tug-master to pull it, and with a fleet of              and the acknowledgement for that is the
tered by StoraEnso, any additional tonnage           AGVs in the ports, the two companies                   fact that this, from the beginning, Swedish
needed are chartered on shorter or longer            think the turn around time for the ships               project has been implemented on a corpo-
terms as it is necessary. The last of the spe-       could be brought down to as little as one              rate level. Had it not been economically
cially designed vessels, the TransTimber, is         hour.                                                  viable it would never have happened”, says
due to arrive in the middle of April.                   Joakim Lundman and Jonas Wåhlin at                  Joakim Lundman.
   Although the vessels can carry as much            Stora Enso Logistics in Göteborg are                                         f r e d r i k dav i d s s o n




                                                                                                        Welcome to
                                                                                                        Søby Værft AS
                                                                                                        New Dry Dock: 115x24x6

                                                                                                        Søby Værft AS, Dokvej 5
                                                                                                        DK 5985 Søby Ærø
                                                                                                        Ph: +45 6258 1123
                                                                                                        www.shipyard.dk




26                                                                                                     SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
SHIPBUILDING
AND SHIP REPAIR                                                                                                                                        Editor: Pär-Henrik Sjöström




Cityvarvet in Göteborg.                                                                                                                                                  LASSE VOURIO




                          Cruise ships – the Formula One class within shipbuilding . . . . . . . . . . . . . . . . . . 28
                          DENMARK Steady flow for Danish yards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
                          New jobs with the new dry dock at Søby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
                          ESTONIA BLRT: current market situation favourable . . . . . . . . . . . . . . . . . . . . . . 38
                          SRC: We are paid for quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
                          LTH-Baas: Big expansion plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
                          FINLAND Exceptional order intake at Finnish shipyards . . . . . . . . . . . . . . . . . . 42
                          Uki Workboat had a busy 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
                          GERMANY Shipbuilding never had it so good . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
                          Ship repair enjoys wide pallet of work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
                          LATVIA Riga Shipyard: 2008 portfolio is filling up . . . . . . . . . . . . . . . . . . . . . . . . . 50
                          Tosmare Shipyard: no expansion plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
                          LITHUANIA Baltija: Caring about the staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
                          Western Shipyard: Clients like our style of work . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
                          NORWAY 2006 – a blissful bonanza for Norwegian shipbuilding . . . . . . . . . . 56
                          POLAND Sentenced to cut down on capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
                          RUSSIA Changes continue in Russian shipbuilding . . . . . . . . . . . . . . . . . . . . . . . . . 64
                          SWEDEN Shipbuilding and ship repair along the long Swedish coast . . . . . 66
                          Positive trend at Falkvarv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
                          Öresundsvarvet will increase their resources for the future . . . . . . . . . . . . . . . . 72
                          Kockums – building invisible vessels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
                          Landskronavarvet – with capacity for large ships . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
                          Götaverken Cityvarvet – a growing repair yard . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76


SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                                                    27
S H I P B U I L D I N G A N D S H I P R E PA I R




The Formula One class
within shipbuilding




Aker Yards is, together with its competitor Fincantieri, the world leader in building large cruise vessels.                         PÄR-HENRIK SJÖSTRÖM

The Liberty of the Seas was on sea trials in December 2006 and is due for delivery in spring 2007.


The market situation is extremely                  largest while Meyer Werft is a little bit             Passenger vessels are mainly built at Aker
good for shipyards building passenger              smaller.”                                          Yards’ shipyards in Finland and France.
vessels. If the market continues to                   According to Mr Julin the competitive           Some smaller ferries are also built in Nor-
grow, Aker Yards might have to                     situation between these shipyards draws            way, mainly for local traffic. Another
increase their capacity to build cruise            parallels to the “balance of terror” during        exception is the two ultra-large ro-pax fer-
vessels.                                           the cold war.                                      ries ordered by Stena. Cruise & Ferries
                                                      “It is virtually impossible for any of us       organisation in Finland closed the deal




T
             he order backlog for large cruise     three to grow by acquiring another one. A          with Stena, but still the vessels are going to
             vessels is all time high with         takeover is out of question not at least due       be built in Germany.
             deliveries until year 2012. Dur-      to competition legislation. The situation
             ing the years 2007 to 2009 nine       with just two players, of which one would
             large cruise vessels will be deliv-   be considerable larger than the other one,                 It is virtually impossible
ered each year in the world and thereafter         is not an option for any competition
six in 2010, two in 2011 and one in 2012,          authorities”, Mr Julin states.                                 for any of us three
including letters of intent. All these vessels        In today’s situation he sees that the only
are built on European shipyards and nine           condition for expansion for the cruise ves-
                                                                                                                to grow by acquiring
of them on shipyards belonging to Aker             sel builders is that the market continues to                      another one.
Yards.                                             grow, and the three shipyards compete to
   President Yrjö Julin of Aker Yards,             get their share of this growth.
Cruise & Ferries business area, thinks that                                                             “This is a typical way to handle things in
building cruise ships is the most prestigious      Finland and France                                 Aker Yards. The unit, which is responsible
sector within shipbuilding.                        Aker Yards is divided into three business          for the business area makes the deal and
   “It is like Formula One in racing, the          areas: Cruise & Ferries, Merchant Vessels          then we look at the optimal place to build
most demanding class, and Aker Yards is a          and Offshore & Specialized Vessels.                the ships regarding to the actual situation
main player in this class”, he says.                  Cruise & Ferries count for the largest re-      with capacity. We are indeed able to build
   “There are thousands of shipyard enter-         venues, but also the other two areas are           vessels across our administrative borders”,
prises in the world, but only three of them        important. Aker Yards is for example a             Mr Julin states.
are today capable of building large cruise         market leader regarding the types of ships           “We optimize expressly the whole Aker
vessels. They are all situated in Europe.          included in Offshore & Specialized Ves-            Yards, not the individual shipyards within
Aker Yards and Fincantieri are the clearly         sels.                                              the group. There is no option, as Aker

28                                                                                             SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
          First Class tankers: a new perspective

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S H I P B U I L D I N G A N D S H I P R E PA I R




                                                   AKER YARDS
Yards is a true global player with activities                                                                    Norwegian Cruise Line last autumn
at 17 shipyards in seven countries, soon 18                                                                      ordered two very large vessels from Aker
in eight.”                                                                                                       Yards in France.
                                                                                                                    “We hope that this will lead to a long
Successful integration                                                                                           customer relationship”, says Mr Julin.
According to Mr Julin, the integration of                                                                           The other main new customer with Aker
the former Alstom-owned shipyard                                                                                 Yards is MSC, which for several years have
Chantiers de l’Atlantique with plants in                                                                         placed their orders at Chantiers de l’Atlan-
Saint-Nazaire and Lorient, France, has so                                                                        tique.
far succeeded extremely well. The large
shipyard at Saint-Nazaire has built a row of                                                                     More capacity needed
excellent cruise vessels, such as the Queen                                                                      The future development of the shipyards
Mary 2.                                                                                                          within Aker Yards, Cruise & Ferries Mr
   “Acquired last year, the French shipyards                                                                     Julin thinks is very closely connected to the
have been a positive experience for us.                                                                          development of the cruise market. The
There have been no strikes due to the                                                                            acquisition of the French shipyards was a
change of ownership. The French feel that                                                                        remarkable addition of capacity for Aker
they have now come into a group where                                                                            Yards. However, it did not bring any new
ship building is the core business.”                                                                             capacity to the market, as it already was an
   Mr Julin stresses that when they still                                                                        existing facility.
were a part of the gigantic Alstom group,                                                                           “If the market continues to grow like
they were far away from the core business.                                                                       today, we have to take into consideration
As a matter of fact, the owner stated that it                                                                    the possibility to increase our newbuilding
                                                                Yrjö Julin, President of Aker Yards, Cruise &
wanted to get rid of the shipbuilding activ-                    Ferries business area.                           capacity for cruise vessels. A solution
ities.                                                                                                           might be to expand the activities in one of
   “When we come to France we made it                                                                            our Finnish shipyards, another to convert
clear that we love shipbuilding and that the                       “Regarding health, safety and environ-        one of our existing shipyards outside Fin-
French yards form a central part of our                         ment Aker Yards have stipulated six basic        land for building passenger vessels. No
group”, clarifies Mr Julin.                                      values, that are most important to us and        doubt the management has to work
   Soon after the deal was closed on May                        must be followed in the whole group. But         intensely with these strategic questions in
31, 2006, an ambitious programme was                            still we respect local cultures and habits       the future”, says Mr Julin.
launched to streamline the organisation.                        and provide space for them on top of these          Within a short time perspective Mr Julin
Aker Yards aiming at a annual saving of                         common values”.                                  does not foresee an addition of cruise ship
EUR 100 million until the end of 2011.                                                                           building capacity coming from shipyards
   “We established 12 workgroups contain-                       New customers                                    outside Europe. He thinks that the compe-
ing some 300 people and chartered a pri-                        When looking at the order books, it              tition from Asian shipyards is still many
vate jet to fly them between Turku and                           becomes obvious that the different cruise        years away in the cruise ship sector.
Saint-Nazaire. They set up the plans that                       shipping companies prefer certain ship-             “Today there exists not even the basic
we now are starting to implement”, Mr                           yards. For example Carnival Corporation is       know-how for handling a large cruise vessel
Julin informs.                                                  clearly oriented towards Fincantieri while       project neither in South Korea nor in Chi-
   So far there has not been any clash                          Norwegian Cruise Line for a long time has        na.”
between the different cultures, when inte-                      ordered their newbuildings from Meyer               He also stresses that it is not just enough
grating the French shipyards into the                           Werft.                                           with shipyards building the vessels. The
organisation.                                                      “It is true that there are quite long rela-   shipyards need a network of hundreds of
                                                                tionships between customers and ship-            subcontractors, building the vessel together
                                                                yards. In Finland we have been co-operat-        with the shipyard, like it is made in
                                                                ing with Royal Caribbean for 38 years”,          Europe.
                                                                says Mr Julin.                                      “Simple ferries are already built in both
                                                                   “Before the acquisition of the French         Korea and China, but still most of the ferries
                                                                shipyard group we had only one main cus-         are built in Europe. In a long term perspec-
                                                                tomer in the cruise segment. Now we are in       tive it is possible that the skills of the ship-
                                                                the lucky position that three of the world’s     yards in South Korea and China increase
                                                                four largest cruise shipping companies           gradually, allowing them to build more
                                                                have ships in order at Aker Yards. An            sophisticated ferries. The next step would be
                                                                important reason for the acquisition of the      small cruise vessels, which again leads to
                                                                French shipyard was to strengthen our            large cruise vessels. This is likely going to
                                                                strategic position as a cruise ship builder”,    happen in the future, but it is by no means
                                                                Mr Julin continues.                              reality today”, Mr Julin points out.
                                                                   This strategy has already paid off, as                             pä r - h e n r i k s j ö s t r ö m

30                                                                                                         SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                              S H I P B U I L D I N G A N D S H I P R E PA I R




There has been a steady flow of work for Orskov’s at Frederikshavn.                                                               BENT MIKKELSEN




Steady flow
for Danish yards
T
       he Danish ship repair scene has not     spend more on maintenance of the ships in      Generally there is a shortage of hands in
       changed much in the past twelve         a healthy circle that also keeps the Port      Danish industry and therefore a number
       months. Most significant is the inau-    State Control officers away.                    of Poles have been taken into Denmark,
guration of a new facility at Søby on the         The healthy market, with money on           and a fair number of these are shipyard
Isle of Ærø.                                   both sides of the table, also has a positive   workers.
                                               effect on the imbalance between Danish            Denmark continues to have only two
DENMARK                                        shipyards and low price countries like         shipyards that deliver new ships in large
                                               Poland and the Baltic states. Danish ship-     sizes – Karstensens Skibsværft at Skagen
  The majority of the other facilities in      yards are normally more careful with deliv-    and Odense Steel Shipyard – while at least
Denmark have been working with a rising        ery on time from the shipyard, which can       four works in the smaller segment. The
number of clients in a healthy market for      save the owner a number of days off hire.      two Hvide Sande-based Vestværftet –
ship repairs. The market is still good for     One strange effect of globalization within     which delivers smaller fishing vessels and
earning money from the ships and this has      the EU is that a growing number of work-       last year a tug for Lerwick – and Hvide
an immediate effect on the owners as they      ers at the shipyard are imported Poles.        Sande Skibs- & Bådebyggeri build all kinds

SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                              31
S H I P B U I L D I N G A N D S H I P R E PA I R


of newbuildings from copies of viking              Frederikshavn                                                   This includes a general overhaul of the
ships to the first trimaran in commercial                                                                          Danish Peder Tordenskiold.
use.                                               Orskov Yard can look back on a twelve
  Furthermore Skagen Yachts build patrol           month period with a steady flow of work
vessels for the Danish navy along with             on the facilities with two dry docks and                        Fredericia
super-yachts, and this also goes for Århus         two floating docks. The customers range                          Fredericia Skibsværft almost got themselves
Shipyard, which has produced several               from the ferry operators DFDS Seaways,                          a new floating dock in the last twelve
super-yachts in the last few years.                Color Line and Fjord Line to a large num-                       months. Last spring the Panamax dock
                                                   ber of supply vessels from Norwegian own-                       developed some cracks during the docking
                                                   ers and operators.                                              of a vessel. A repair job was carried out at
Skagen                                                The yard has won a number of contracts                       the facilities of Odense Steel Shipyard leav-
Karstensens Skibsværft has delivered two           from the supply-owners around the North                         ing the yard without the biggest dock for
super-fishing vessels during 2006 and is            Sea area. Also a number of other ships                          seven weeks.
presently working on the first of two new           have visited Frederikshavn, which has gath-                        The rest of the year has been a busy job
patrol vessels for the Danish Navy’s sover-        ered a number of sub-suppliers in a net-                        keeping up with all the customers. At the
eignty keeping in Greenland waters. The            work offering a total packet solution for                       moment the second of two major rebuilds
fishing vessels were the Isafold and the            shipowners.                                                     of a Maersk Supply vessel is well in hand.
Cattlaya.                                                                                                          The Mærsk Attender is half way through the
   During the year, repairs have been made                                                                         conversion from a super-supply vessel to a
on the slipway (capable of ships up to             Århus                                                           craned offshore vessel. The first month of
3,000 DWT) on a number of ships of vari-           Århus Yard A/S is about to enlarge the                          the year has seen the traditional ferry-repair
ous types from fishing vessels to passenger         facilities. A second-hand dock was pur-                         time with ferries from DFDS, Color Line
vessels and chemical tankers.                      chased in Norway (originally the dock was                       and Scandlines in the dock in Fredericia.
   Karstensens Skibsværft is still waiting         operated in Peterhead, Scotland) and towed
for its new facility, a 110-metres long dry        to Århus. At the moment the dock is being
dock. It is still under construction and           prepared and repaired before being placed                       Assens
has proved to be more difficult to build           at the yard in the same position where an                       Assens Skibsværft has recently been taken
than expected. There have been some                older dock worked until 1999, when the old                      over by two local owners after purchase
serious delays in the process and the dock         yard closed down. On the repair side Århus                      from Fredericia Skibsværft. The first year
will not be ready until the early summer           Yard have had a number of smaller ferries                       has been rather busy with a couple of big
this year.                                         along with several naval vessels for repair.                    conversions. They came from Rederiet M.
                                                                                                                   H. Simonsen of Svendborg, which had to
                                                                                                                   convert three of its double-hull tankers for
                                                                                                  BENT MIKKELSEN




                                                                                                                   edible oil. Edible oil has been reclassed as
                                                                                                                   from January 1, 2007, and is now an IMO
                                                                                                                   II product. This changed the requirements
                                                                                                                   for M. H. Simonsen’s three tankers, the
                                                                                                                   Oraness, Orakota and Orateca. One of the
                                                                                                                   complicated things was to enlarge the side-
                                                                                                                   ballast tanks by 20 centimetres on each side
                                                                                                                   and fit them with piping.


                                                                                                                   Søby
                                                                                                                   Søby Værft started working with their new
                                                                                                                   facility; the 110-metre dry dock, in Octo-
                                                                                                                   ber 2006. See the special article about the
                                                                                                                   yard.


                                                                                                                   Marstal
                                                                                                                   Marstal Værft A/S, which is a part of the
                                                                                                                   Petersen & Sørensen Group in Svendborg,
                                                                                                                   has had a steady flow of repairs during the
                                                                                                                   year. The customers range from Norwegian
                                                                                                                   coaster owners to Danish ferry operators as
                                                                                                                   well as coaster owners and entrepreneurs,
                                                                                                                   who needed docking of their equipment.
Fyrholm is one of the new navy ships from Danish Yachts at Skagen.                                                 Also some naval vessels have been repaired

32                                                                                          SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                    S H I P B U I L D I N G A N D S H I P R E PA I R




                                                  BENT MIKKELSEN
in Marstal. The latest is the ice patrol vessel
Agdleq.


Svendborg
At first sight the J. Ring-Andersens Skibs-
værft looks like something from the past. A
floating dock amongst a forest of wooden
masts from old-fashioned sailing vessels is
a reality at Svendborg and its facility. The
yard, founded in the 1880s, still keeps the
tradition of wooden ships and the skill
attracts owners of these vessels. In February
the training ship Georg Stage, the world’s
smallest square-rigged vessel, arrived at the
dock at Ring-Andersen for a general over-
haul and change of the main engine. This
vessel too is built with a steel hull, which
can be repaired at the old wooden yard in
Svendborg.
                                                                   The new dock for Århus Yard A/S shortly after arrival from lay up in Norway.

Odense                                                             also for a threat from the owners, which         number of G-class vessels. But rumour has
The A. P. Møller-Mærsk owned Odense                                gave the yard a last chance to become            it that A. P. Møller-Mærsk as a client has
Steel Shipyard made the headlines last                             profitable. The alternative is closing           given the yard the go-ahead to try to sell
year, mainly for the delivery of the                               down the facility.                               the G-class vessels (six ships) to another
world’s largest container carrier the                                 At the moment the order book contains         operator if possible.
Emma Mærsk and its three sisters. But                              a further five E-class container ships and a                               bent mikkelsen




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New jobs with
the new dry
dock at Søby
Renewal of steel in the cargohold on a dredger.                                                                                                        BENT MIKKELSEN




S
      øby Værft A/S can now look back at                            months longer than stipulated in the con-          The new dock with its new customers has
      the first couple of months with a                              tract.                                          also generated a new problem: getting more
      large dry dock at the port of Søby                               “We have had some interesting jobs now       manpower. This has turned out to be more
on the Isle of Ærø.                                                 when we can offer to dock bigger ships          difficult than expected. The staff has grown
  The readying of the dock took six                                 than before”, explains Roar Falkenberg,         from around 100 persons to 183 persons in
                                                                    CEO of Søby Værft. “So far things are           February. A number of these are Polish
                                                                    moving in the right direction for our ship-     shipyard workers hired via an agency for
                                                   BENT MIKKELSEN




                                                                    yard and we learn something new every           workers in Poland. A few – nine – Polish
                                                                    day”, the CEO adds.                             workers are permanently employed at Søby.
                                                                       One of the things they learned by doing         “These Polish workers are doing very
                                                                    is that a tug on station in Søby should be      well at Søby,” Road Falkenberg, says. “And
                                                                    part of the equipment in stock at Søby          if necessary we will employ more Polish
                                                                    Værft.                                          people.”
                                                                       “We thought that it was easy to call a tug
                                                                    in to help us in Søby, but it turned out to     Finest know-how retiring
                                                                    be more expensive and more complicated          The trouble getting the qualified workforce
                                                                    than expected”, says Roar Falkenberg. “So       has revealed another problem for Søby
                                                                    we are in the process of looking at a tug for   Værft.
                                                                    purchase under our own colours.”                  “We realised that within the next few
                                                                       Now that the dock is working, Søby           years 20 to 30 of our staff will retire. That is
The Wrist tanker Olivia is the biggest vessel                       Værft has started on the next stage, enlarg-    an even bigger problem,” the CEO adds.
so far under repair at Søby.                                        ing the facilities for the workforce.             “The 30 people that will retire are our

34                                                                                                            SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
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S H I P B U I L D I N G A N D S H I P R E PA I R




                                                                                            BENT MIKKELSEN
                                                                                                             most experienced staff members and they
                                                                                                             represent our finest know-how.”

                                                                                                             The biggest ship
                                                                                                             So far the biggest ship in the new dry dock
                                                                                                             is the Wrist owned tanker Olivia. It mea-
                                                                                                             sures 111 metres in length and is close to
                                                                                                             the dock limit of 115 metres.
                                                                                                                The job also gave the yard good experi-
                                                                                                             ence of large ships with all the new and
                                                                                                             maybe a little more complicated handling
                                                                                                             than with the smaller vessels.
                                                                                                                Another group of clients that are new in
                                                                                                             Søby is tugs. They normally have a larger
                                                                                                             draft than coasters and until the inaugura-
                                                                                                             tion of the new dock there was a lack of
                                                                                                             facilities for the medium size tugs with a
                                                                                                             draft of more than 4.5 metres.
                                                                                                                Søby Værft has a number of contacts
                                                                                                             with new customers. Especially German
                                                                                                             coaster owners seem to be thrilled over the
                                                                                                             new facility on the Isle of Ærø not far away
                                                                                                             from the shipping lane from the Baltic Sea
                                                                                                             to the Kiel-Canal.
                                                                                                                “Our location is important in the
                                                                                                             choice of repair yard,” says Roar Falken-
                                                                                                             berg.
The dredger Navo in one of two old dry docks at Søby.                                                                                  bent mikkelsen




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36                                                                                       SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
Sales Office Sweden
Jotun Coatings
Jotun Sverige AB
P.O. Box 151, SE-421 22 Västra Frölunda, Sweden
Phone +46-(0)31-69 63 00, Fax +46-(0)31-69 63 97
www.jotun.se
S H I P B U I L D I N G A N D S H I P R E PA I R




                             BLRT: current market
                             situation favourable




                                                                                                   MADLI VITISMANN
                                                                                                                                            These big factories can’t
                                                                                                                                            survive on ship building
                                                                                                                                               and repairs alone.

                                                                                                                                       clients, including a Turkish shipping com-
                                                                                                                                       pany. The docks are booked solid until
                                                                                                                                       May, and the fast ferries, amongst others,
The thousandth lashing bridge from BLRT Marketex.                                                                                      will be queuing up prior to the start of the
                                                                                                                                       high season.


F
      jodor Berman, chairman of the man-           the lack of available workers, especially                                               Smaller vessels are repaired at Peetri har-
      agement board of the BLRT Group,             among welders.                                                                      bour, but it was also here that BLRT Lae-
      is in an optimistic frame of mind.              “These big factories can’t survive on ship                                       vaehitus built the hull of the fishing bait
Negotiations are finished with the govern-          building and repairs alone,” Mr Berman                                              transporter Arctic Lady last year. The ship
ment of the Åland Islands for the building         says. “That’s why the Western Shipyard in                                           was then handed over for final construc-
of a new ferry – the details of an exciting        Klaipeda, following Tallinn’s example, has                                          tion to the Norwegian party who ordered
order are being ironed out in Germany –            restructured and diversified its operations.”                                        it, Myklebust Prosjekt.
and with the Saaremaa Shipping Compa-                 Personnel director Heinart Puhkim                                                    BLRT has founded a subsidiary, called
ny’s ferry order comes the promise of              explains what the group needs. Having                                               Valgekaru, to carry out in-service repairs,
potential subcontracting work on the con-          grown so big, the company could easily                                              but its operations are yet to fully get off the
struction of its hull. There are even plans        lose sight of who is doing what, and that is                                        ground.
for a new series of dry cargo ships.               why it has continued with its group forum                                                                     madli vitismann
                                                   for a second year. Its focus this year has
ESTONIA                                            been on the implementation of communi-
                                                                                                                     MADLI VITISMANN




                                                   cation theory, which also meets the EU
   Half of the group is based in Lithuania,        directive on the provision of information
which is why, Mr Berman explains, a num-           to and consultation of employees.
ber of partnership formats operate within             BLRT, like other Estonian companies, is
it. The sections are produced in Klaipeda,         affected by the lack of available labour, and
for example, while the hull is assembled in        to remedy this, salaries are being raised.
Tallinn. This is practical with ships up to        According to Dmitri Kubyshkin, a member
100 metres in length, but larger vessels           of the management board, pay has gone up
have to be built in Klaipeda from the out-         ten per cent in a year despite the fact that
set. Even with the prospective Saaremaa            productivity is not keeping pace. Increased
Shipping Company order it would have to            turnover is not increasing profitability,
be weighed up whether costs would be               although the group should be satisfied
kept lower in Klaipeda or Tallinn.                 with the results of the past year.
   Around 30 per cent of the group’s pro-
duction takes place in Klaipeda, as well as        Dock space is booked
half of its repair work and an even greater        Tallinn Shipyard carried out repairs on 150
proportion of its shipbuilding. EUR 60             ships last year, and currently has the SOL’s
million has already been poured into it,           Balticland in for hull cleaning and painting
and further investments, larger than those         and exchanging old metal, pipes and
made in Tallinn, are in the planning stages.       equipment for new. Ships belonging to
   However, while the market situation             both Estonian and Lithuanian owners have
may be good, restrictions are enforced by          been repaired, as well as those of other                                            Automated welding at BLRT Marketex.


38                                                                                           SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                              S H I P B U I L D I N G A N D S H I P R E PA I R




SRC: We are paid for quality
❯    Two half-finished tankers are moored




                                                 MADLI VITISMANN
     at SRC, Ship Repair & Conversion, in
Paljassaare harbour in Tallinn. Once the
work is finished on them, two more will
take their place.
   The tanker Vedrey Tora for Svithoid
Tankers will be ready in April. This is one
month later than the original deadline, as
Svithoid decided to convert the ship from
a product tanker into a chemical tanker,
and waiting on new plans saw the end date
postponed. The second tanker in the series,
the Vedrey Thor, is shortly to have its main
engine and superstructure put in place.
Installation of the engines of both ships
has fallen to Estonia, after the Naantali
stage originally planned for the Astrakhan-
built hulls also fell by the wayside.
                                                                   The Vedrey Tora, just converted into a chemical tanker, is the first in a series
   The towing of a third tanker’s hull to                          for Svithoid Tankers.
Tallinn from the MNP Group’s shipyard in
Astrakhan will begin in the middle of May                          assembly metal workers. One of the rea-                   should theoretically be 10 per cent cheaper
while the keel of another one will be laid.                        sons the hulls were ordered from Astra-                   than the second. Unfortunately, the cost of
An option for a fifth and sixth tanker is                           khan is that there was less of a problem                  both the first and second tankers has been
valid until the end of June.                                       finding welders there than in Tallinn.                     the same – due, according to Mr Kaarma,
                                                                      “If the state was capable of providing the             to the rise in labour costs.
No workers of their own                                            basic education, we could educate them
Neeme Kaarma, the managing director of                             further and offer them experience,” says                  Complex ships
SRC Uusehitised, explains that two thirds                          Mr Kaarma. “Until that happens we have                    “We’ve exhibited some pretty high quality
of the 200 workers are on the payrolls of                          to manage with welders and metal workers                  work, and quality is what we are being paid
Estonia’s five largest subcontractors, while                        brought in from abroad. They don’t come                   for right now,” he says.
the rest belong to smaller companies. SRC                          cheaply, but quality and speed count.”                       He underscores the complexity of the
has no workers of their own – only masters                            Mr Kaarma says that where money could                  ships that are being constructed: “With
and managers. The rise of labour costs in                          be saved most at present is in technological              these tankers Svithoid has planned the best
Estonia has already made the ships more                            preparation:                                              possible level of supply, and heightened
expensive, albeit not significantly. For                               “One of the biggest steps we’ve been                   requirements mean the ships will operate
Estonian subcontractors with good special-                         weighing up is if we could get a 3D model                 to a more densely packed schedule. All
ists, salary levels are such that workers are                      of the engine room and produce all of the                 operations of the ships will be controlled
not inclined to leave.                                             parts based on that and then put them                     from the bridge alone, and the integrated
   It is a sign though that shipyard workers                       together in the engine room itself.”                      automation system will mean that every-
in Estonia are not being trained, and as a                            The second tanker should cost 15 per                   thing on the bridge is duplicated.”
result there is a lack of good welders and                         cent less than the first one, while the third                                       madli vitismann




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SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                                             39
S H I P B U I L D I N G A N D S H I P R E PA I R




LTH-Baas: Big expansion plans
❯     “Our Director of Marketing is in negoti-     hostel, being dry-docked and renovated at




                                                                                                 AUGUST BÖTTIGER
      ations in France, we’re exhibiting at a      the MarinV Naval Workshops at Muskö,
trade fair in Miami, we’re having to bring         can be completed by the ten months dead-
our workers back from Spain and we’re              line stipulated in the tender documents
working on a national tender in Sweden,”           from the af Chapman owner, the City of
says Aleksandr Maljugin, director of LTH-          Stockholm. Three months of work have
Baas, reeling off a list of just some of the       already gone into the ship, with the total
things his company is currently involved in.       cost of the order coming in at around two
    In March the company will be opening a         million EUR. However, the chief contrac-
subsidiary, LTH Oy, in Turku, Finland.             tors, Wårö Stål, are only halfway through
Having so far achieved success by sending          their work on the hull of the af Chapman.
out mobile teams of workers from Estonia
to other countries, the company is being           Onto the next sea
                                                                                                                   The af Chapman going into the rock covered
forced to establish a more static subsidiary       LTH-Baas’ expansion plans have taken the                        dry-dock of the MarinV Naval Workshops at
due to changes in Finnish taxation law.            company to the Seatrade Cruise Shipping                         Muskö.
Another subsidiary may also need to be             Convention in Miami, supported by the
formed in France.                                  Enterprise Estonia, as they plan to take on                     ki route also remain among their clients.
    Its existing Estonian subsidiary, LTH Inte-    the repairs of such ships in the future. At                        According to Mr Maljugin, the price of
rior, is currently engaged in the repairs of       present they employ up to 150 full-time                         LTH-Baas’ services has not risen signifi-
the three-mast full-rigged vessel, af Chap-        workers, with around half of them in                            cantly, even though labour no longer
man, in Sweden. According to sales manag-          Estonia. Repairs are being made to the                          comes as cheaply as it used to. As a lot of
er Lars Nordqvist, the interior of the steel-      Meloodia, for example, as it sails on the                       its work is abroad, the company is able to
hulled ship has been stripped and a new one        line leaving from Barcelona. Shipping                           pay good wages.
is in production so that work on the floating       companies ploughing the Tallinn–Helsin-                                                 madli vitismann




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40                                                                                         SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
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S H I P B U I L D I N G A N D S H I P R E PA I R




Exceptional order intake
at Finnish shipyards
Aker Yards Helsinki shipyard. Tallink’s ro-pax ferry the Star is at the outfitting quay.                                                   AKER YARDS




After an exceptional order intake                     “After all the positive publicity with
during 2005 and the beginning of                   large new orders, it seems like the ship-                  Young people feel
2006, Aker Yards’ Finnish shipyards are            building industry again has a strongly posi-
now fully booked until the end of                  tive image in Finland. Young people feel                 that this is a branch
2008.                                              that this is a branch of the future”, explains
                                                   Ms Railo.
                                                                                                                of the future.

T
      wo firm orders were added to the
      order book in early 2006 and in Jan-         First of the largest                             tures. The cabins and balconies are among
      uary 2007, increasing the contract           The Finnish shipyards of Aker Yards are          the most spacious ever built in a ship. The
value of the vessels to be delivered by the        mainly active in the Cruise & Ferries busi-      double-occupancy passenger capacity is
Finnish shipyards to a total of EUR 3.3 bil-       ness area. The acquisition of the French         3,600.
lion.                                              shipyard Chantiers de l'Atlantique was
                                                   finalized at the end of May 2006 and the          Several ships from Rauma
FINLAND                                            French yard was thereafter integrated in the     The Rauma shipyard handed over the third
                                                   Cruise & Ferries business area.                  cruise ferry of the Romantika type to the
   Ms Sinikka Railo, communications                   Last year Aker Yards completed six ves-       Tallink Group on April 18, 2006. The EUR
manager at Aker Yards, Cruise & Ferries            sels at their Finnish shipyards.                 165 million Galaxy is in service with short
in Finland, says that the situation is prob-          On April 13, 2006, the world’s largest        cruises from Helsinki to Tallinn. Slightly
ably better than ever for the shipyards in         cruise vessel, the Freedom of the Seas, left     larger than the near sisters Romantika and
Finland. Also earlier problems concern-            the Turku shipyard for Hamburg, where            Victoria I, the Galaxy is one of the largest
ing shortage of labour seem to have been           she was handed over to the owner on April        cruise ferries in the Baltic Sea, with a capac-
at least partially solved. The outcome of a        24 after a short docking. The Freedom of         ity for 2,800 passengers.
massive recruitment campaign, aimed at             the Seas is the first vessel in a series of          The forest products carriers TransPaper
getting more than two hundred new                  three. The design of the Freedom class is        and TransPulp were also completed by the
employees to Aker Yards’ shipyards in              based on the Voyager class, but they are 15      Rauma shipyard last year. These are includ-
Finland, has turned out to be successful.          per cent larger and have many new fea-           ed in a series of three ships ordered by

42                                                                                            SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                       S H I P B U I L D I N G A N D S H I P R E PA I R


Baltic Container Shipping for Stora Enso’s                             ship will be named the Independence of         early 2008. The project is called “Viking
shipments of forest products from North-                               the Seas.                                      XPRS” and the vessel is designed for the
ern Finland to Sweden and Germany. The                                   The Freedom class will be followed up        Helsinki–Tallinn route. With a capacity for
vessels are managed and operated by Red-                               by the even larger Project Genesis – a         some 1,000 lane metres of vehicles and
eri AB Transatlantic, which has a time char-                           220,000 GT cruise ship that will dwarf         2,500 passengers, the ferry will reach a
ter agreement with Stora Enso. The third                               most of the vessels afloat of any type. This   speed of 25 knots.
vessel, the TransTimber, is soon to enter                              vessel too was ordered by Royal                  Intended for the same route is also
service.                                                               Caribbean International and the contract       Tallink’s newbuilding the Star, which is
   The fourth delivery from the Rauma                                  was signed in February 2006. The proto-        scheduled for delivery in spring 2007. She
shipyard was the fast missile craft Pori. This                         type will be delivered by the Turku ship-      will carry up to 2,000 lane metres of cargo
is the fourth and last fast surface combat-                            yard in 2009 and has the impressive main       and 1,900 passengers with a speed of 27
ant of the Hamina class.                                               dimensions of 360 meters length, 47            knots.
                                                                       meters width and a height of 65 meters           Tallink also has on order a sister ship to
Arctic container vessel                                                above the water line. She will accommo-        the cruise ferry Galaxy for delivery in sum-
In April 2006 the shipyard in Helsinki                                 date 5,400 passengers.                         mer 2008.
handed over the prototype for an Arctic                                                                                 Fast car and passenger ferries are also
container carrier to the Russian company                               Large and fast                                 on order by Color Line. Aker Yards will
MMC Norilsk Nickel. Named the Noril-                                   For Viking Line, Aker Yards is building a      deliver two vessels with a capacity for
skiy Nickel, the vessel is designed for carry-                         fast car/passenger ferry to be delivered in    2,000 lane metres and 1,900 passengers
ing metallurgical products from Dudinka
                                                 PÄR-HENRIK SJÖSTRÖM




on the River Yenisey to Murmansk.
   The Norilskiy Nickel left Helsinki on
March 3, 2006, for ice trials in Arctic con-
ditions in the waters north of Russia and
was handed over to the owners in Mur-
mansk on April 11. This prototype is based
on the double-acting ship concept devel-
oped by Aker Yards.

Even larger ships to come
Although not to be delivered by any of the
Finnish shipyards, two newbuildings for
Stena Line are to be designed by Aker
Yards in Finland. The vessels will be the
largest ro-pax ferries in the world, capable
of carrying 5,500 lane metres of cargo and
1,200 passengers. The vessels will be built
in Germany for delivery in 2010.
   The Turku shipyard will deliver two
more vessels of the Freedom class to Royal
Caribbean Cruises Ltd in spring 2007 and
spring 2008 respectively. The Liberty of the
Seas completed her sea trials in December
2006 and the third and final Freedom class                              The hull of the Color Magic was built in Turku and towed to Rauma for outfitting.




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S H I P B U I L D I N G A N D S H I P R E PA I R




                                                                                                  AKER YARDS
                                                                                                               ter vessel to the Color Fantasy. The cruise
                                                                                                               ferry Color Magic will join her elder sister
                                                                                                               on the Oslo–Kiel route in the fourth quar-
                                                                                                               ter of 2007.

                                                                                                               Channel ferries
                                                                                                               Brittany Ferries has two newbuildings on
                                                                                                               order in Finland at Aker Yards. A ro-pax
                                                                                                               ferry will be handed over in 2007. The ves-
                                                                                                               sel is designed to carry 2,200 lane metres of
                                                                                                               road cargo vehicles between France and
                                                                                                               England at a speed of 23 knots. She will be
                                                                                                               equipped with 120 cabins for drivers.
                                                                                                                  In January 2006 Aker Yards and the
                                                                                                               French company Brittany Ferries turned a
                                                                                                               letter of intent into a firm contract for
                                                                                                               building a ferry with a capacity for 1,500
                                                                                                               passengers and 1,100 lane metres. The ves-
The newbuildings TransPaper and Galaxy at Aker Yards Rauma shipyard.
                                                                                                               sel will be delivered in October 2008. Also
                                                                                                               this ferry will be employed in the English
for Color Line’s services between Norway           for day crossings and have a service speed                  Channel on a route between France and
and Denmark in 2007 and 2008. The                  of 27 knots.                                                the United Kingdom.
“Color Superspeed” ferries are intended              In addition, Aker Yards is building a sis-                                    pä r - h e n r i k s j ö s t r ö m




Uki Workboat had a busy 2006
❯    Uki Workboat in Uusikaupunki had a
     busy year in 2006. The largest project
was an extensive refit of the Finnish Border
Guard patrol vessel Uisko, which was com-
pleted in September. Like the sister vessel
Tursas, the Uisko was lengthened, re-
engined and updated with new systems.
For the same customer, the shipyard also
delivered two smaller, steel-hulled patrol
boats.
   For Vägverket (Sweden’s road adminis-
tration) Uki Workboat completed the road
ferry Tora, for operations in the Mälaren
area near Stockholm. Tora is 62 meters
long, 15 meters wide and has a capacity for
36 cars or 165 t.
   Uki Workboat also delivered three pilot         Last year Uki Workboat completed an extensive refit of the Finnish Border
boats, two oil recovery vessels and a small        Guard’s patrol vessel Uisko.
training ship for the Finnish navy.
                                                   the Pluto, which have been delivered earli-                 Estonia, two training ships for the Finnish
Road ferry on order                                er from the same shipyard.                                  navy, three channel service vessels to Swe-
In the order book, there is a large road fer-         Further there are two 25 meters alumini-                 den as well as a fast representation boat to
ry for Vägverket in Sweden. The newbuild-          um-built boats for delivery to the UK and                   be used by the President of Finland.
ing is of the same type as the Venus and           Cyprus, a catamaran and a service vessel to                                    pä r - h e n r i k s j ö s t r ö m



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44                                                                                          SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
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S H I P B U I L D I N G A N D S H I P R E PA I R




Shipbuilding never
had it so good
German shipbuilding never had it so
good with lean yards still churning
out more newbuildings than ever
before and orders defying earlier
predictions that the inevitable
downturn was just around the corner.




I
    n 2005, German yards delivered 69
    merchant ships of 1.3 million GT
    worth EUR 2.6 billion. Unofficial
reports said the 2006 figure was 83 of
about 1.4 million GT. However, it’s the
orders that tell the important story.              The bulging Meyer docks out AIDAdiva.

GERMANY
                                                                                                  ing and personnel and told German yards
   Yards that took orders for 17 ships in the
                                                        The search for staff comes                they cannot afford to rest on their techno-
whole of 2001, took 157 orders in 2005. In               as an ironic twist after                 logical laurels. As recently as February she
the first nine months of 2006 they took fur-                                                       also warned that not only low wages were a
ther orders for 59 ships of more than a mil-              years of bloodletting                   threat but that Asian competitors were
lion GT worth EUR 3.8 billion, taking total                                                       gaining in technological strength and
orders in hand as of last September to 236
                                                         in German shipyards.                     know-how as well.
ships of 4.2 CGT worth EUR 12.9 billion.
Statistically, that’s enough to keep German        ative shipbuilders are enough to combat        Good times still rolling
yards happy for another four years.                the threats. But for that to happen, Lundt     Wöhrl urged continued strong investment
   The German shipbuilding association             stresses the industry needs not only more      in research and development. An EU deci-
VSM shares the happiness of its members            investment in research, development and        sion to continue to allow member states to
but draws attention to growing competi-            innovation but also more qualified workers.     subsidise their shipyards for a further two
tion not only from South Korea, Japan and             The search for staff is a tune now being    years will undoubtedly help that, even if
China, but also now from Vietnam and the           hummed by many and it comes as an ironic       the VSM would have preferred a three year
Philippines.                                       twist after years of bloodletting in German    extension.
   VSM MD Werner Lundt is optimistic               shipyards, particularly in the former GDR.        Amid the caution, the good times were
that Germany’s cutting-edge technology,               Germany’s new Maritime Co-ordinator,        still rolling at the start of 2007 and Michael
innovative equipment suppliers and cre-            Dagmar Wöhrl, has also urged more train-       von Bauer, tanker shipping chief at Nor-




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46                                                                                         SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                   S H I P B U I L D I N G A N D S H I P R E PA I R


way’s Aker Yards, said contrary to some            Maersk, delivered the first three of seven      Werft rolled out AIDAdiva, the first of four
predictions, there was no end in sight to          4,170 TEU ships in 2006, the biggest ever      68,500 GT cruise ships for Aida Cruises, as
the boom. He said demand for sea trans-            built there. Peene Werft concentrated on       SSG went to press. Earlier it delivered the
port would rocket over the next few years          customer-oriented smaller 1,400 and 1,600      two 93,500 GT sisters Norwegian Pearl and
and fleets would have to grow enormously            TEU ships, delivering six ships with 15        Pride of Hawaii for NCL and had eight
to meet it.                                        more listed for delivery this year and next.   cruise ships on order late 2006, keeping it
                                                      The other ships were from Neptun, now       busy well into the next decade. It has also
                                                   concentrating on building inland cruise        just signed an LOI for two 122,000 GT Dis-
     East Germany’s modern                         ships. It has delivered eleven since 2002. Its ney ships and was building passenger ships
                                                   fifth TwinCruiser, the Avalon Imagery, left     for Indonesia and gas tankers for Norway.
       shipyards now bear                          in February and her sister, the Avalon Tran-
                                                   quility, in January.                           FSG in Flensburg
      no resemblance to the                           Together, the east German yards had 75      World leading ro-ro builder FSG in Flens-
      crumbling dinosaurs                          ships on order worth EUR 3.4 billion at        burg took orders for two more Turkish
                                                   the start of 2007 – enough to                               ships and said it was fully
       of the former GDR.                          keep their 5,000 employees                                  booked to mid 2010. SSG
                                                   busy until mid 2009. And they                               learned that the four Con-
                                                   are not all boxships.                                       Ro200 ships booked last year at
  Liquid cargo transport in particular                Aker’s list includes special                             FSG for an unidentified owner
would increase, von Bauer added, predict-          Arctic cargo ships as well as                               were in fact, as thought, for
ing that gas shipping demand would dou-            two 62,000 GT, 22 knot ro-pax                               Cobelfreight bringing that
ble in five years with customers plumping           ferries worth EUR 400 million.                              firm’s orders to six.
for ships in order to stay independent of             As well as boxships, Volk-                                  Tanker specialists Lindenau
pipeline supplies and offshore production          swerft has anchor handling                                  Schiffswerft was delivering Sea-
increasing.                                        supply ships for Maersk and                                 sprat, the third of five 40,500
                                                   Peene Werft has two fisheries                                DWT tankers, its biggest to
East Germany                                       protection vessels worth EUR Dagmar Wöhrl, the              date, and readying a fourth for
                                                                                       new Maritime Co-
In east Germany’s modern shipyards,                63 million for the German ordinator in Germany. delivery in July. They follow
which still lead German production, the            authorities and plans co-opera-                             Seatrout and Seacod last year.
boom continued in 2006. Aker Wismar,               tion with west German sister Rolandwerft       Finally the small Cassens yard was busy up
Aker Warnemuende, Volkswerft in Stral-             to build tankers, reefers and lo-ro ships.     to late 2009 building a new series of ten
sund and Peene-Werft in Wolgast – all                 In what can be no more than just a men-     724 TEU, 8,600 DWT “CW 7800 gearless”
rebuilt with billions in state aid after re-uni-   tion of a few other achievements in Ger-       feeder ships for German owners.
fication in the 1990s – as well as Meyer            man yards of late, the remarkable Meyer                                          to m to d d
subsidiary Neptun Werft in Rostock, now
bear no resemblance to the crumbling
dinosaurs of the former GDR, which used
to employ five times as many people as
now.
   The east German yards, together turning
over about a billion Euro and no longer
hamstrung by EU production quotas,
delivered 24 ships of 524,000 CGT in 2006
worth about EUR 900 million. The deliv-
ery of 28 container ships is planned this
year. Improved and leaner production
techniques and efficient ships have enabled
them to hold their own against cheaper
Asian yards.
   Norwegian-owned Aker yards in Wismar
and Warnemünde delivered 13 container
ships in 2006, three more than in 2005. A
spokesman said divided production – bows
built in Warnemünde and sterns and
assembly in Wismar – was paying off. In
future, sections will be built at a new
assembly plant in Lubmin, near Greif-
swald.
   Volkswerft, owned by A.P. Møller-               The east German yards still lead the field.


SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                  47
S H I P B U I L D I N G A N D S H I P R E PA I R




     Ship repair enjoys
     wide pallet of work



Meiderich dry-lands in Heidelberg.




T
       here has been a good mix of passen-              Before the Britannica came in, LWB fin-      work and painting, took nearly three
       ger and cargo ship repair and conver-         ished lengthening the Italian reefer Cala      months.
       sion in German yards of late, inland          Pino. She got an additional 15.7 × 24            The yard also repaired and modernised
as well as in the usual larger coastal facilities.   meters section, weighing 510 tons as did       the German frigate Luebeck.
   Lloydwerft Bremerhaven (LWB) went                 three sisters in for similar work, a series
into 2007 brimming with orders, its new              project which reports said LWB got             Motorenwerke Bremerhaven
partnership with Fincantieri promising               because of the new partner Fincantieri.        LWB neighbour Motorenwerke Bremer-
more cruise ship work and future stability.             All the more embarrassing, then, that one   haven, MWB, meanwhile completed the
Fincantieri, for its part, saves money and           of the ships, the Cala Palma, should be dam-   lengthening of a series of four 32,600
time by having North Sea and Baltic cruise           aged by fire in August while docked at LWB.     DWT German general cargo ships: the
ships call at LWB rather than sail back to           The yard has just recently announced a con-    Toscana, the Masuren, the Algarve and the
the Mediterranean.                                   tract to repair the vessel “up to November”.   Normandie.
   Construction of a new Kaiserschleuse              She was badly buckled, so the time taken for      Handling one ship a month, the yard
lock in Bremerhaven also means that big-             insurers to decide on repair rather than       inserted 16.1 meters midbody sections
ger ships will have access to LWB from               scrapping appeared understandable.             increasing tonnage to 36,000 DWT and
2010, like the giant Maersk container ships             Other recent work at LWB included the       length to 189.7 meters. Cranes were also
serving terminals up the road. Work on the           modernisation and overhaul of the Meyer-       upgraded, fuel-saving equipment installed
new 305 × 55 m lock was starting this year.          built, 76,152 GT regular caller Oriana.        and nautical gear modernised.
                                                     LWB also refurbished the 20,077 GT rail           Another neighbour, Bremerhavener
Lengthening at LWB                                   ferry Rider, ex Railship II, renaming her      Dock (BREDO), repaired extensive bot-
Just completed at LWB was the conversion             Baltiysk. The job, involving steel and track   tom damage on the 304 TEU feeder Trans
of Stena’s 43,487 GT Stena Britannica into                                                          Frej. She grounded in January and some
the biggest ro-pax ship afloat. Work on the                                                          200 tons of new steel were needed for her
33,769 GT Stena Hollandica was getting                                                              month-long repair.
under way as SSG went to press, for com-                                                               In Hamburg, and demonstrating its ver-
pletion in May. Reports said LWB won the                                                            satility again, as SSG went to press was
EUR 100 million job more for its deadline                                                           Blohm+Voss Repair. Two big tankers were
than its price.                                                                                     docked for repair after a year in which
   The 210 meters long Britannica has been                                                          twelve passenger or cruise ships called.
lengthened by about 29 meters amidships                                                                Bottom damage requiring 24 tons of
while the 188 meters long Hollandica will                                                           new steel was repaired on the 74,999 DWT
get a whopping 50 meters section, which                                                             tanker Summit Europe while the 118,500
reports said was the biggest passenger ship          The Cala Palma lengthening plus repair         DWT Navion Britannia came in with cable
lengthening ever.                                    bonus for LWB.                                 wrapped around a propeller and shaft.

48                                                                                            SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                  S H I P B U I L D I N G A N D S H I P R E PA I R


   B+V also hosted another visit from the               version was reported well under way for                  connecting rod damage on the 32,226 GT
148,528 GT Queen Mary 2. The 345                        completion by about Autumn, following                    ro-ro ship Alyona. Both ships have spent
meters long Queen replaced one of her                   removal of asbestos by a specialist Dutch                months at the facility.
four 270 ton Mermaid pod drives, squeez-                firm. Plans were to extensively restore the
ing into B+V’s 351 meters Elbe 17 dock for              ship’s interiors – cabins and amenities – to             Impressive work
the work. The pod, damaged during an ear-               their original “Sixties” look for service as a           Finally, some impressive work has just been
lier port manoeuvre, was removed during a               floating hotel in Rotterdam.                              carried out at competent leading inland
six day stay in the same dock earlier in                   Turbo-Technik was also carrying out the               shipyards in Germany. Meidericher Werft
2006. The ship operated with only three                 conversion of engines on seven Wagenorg                  in Duisburg utilised the entire length of its
drives in the interim until the missing pod,            feeder ships from MDO to heavy oil (ifo                  slip to dry-land the 110 meters long inland
repaired at B+V, was remounted. During                  180) operation. The work was reportedly                  cruise ship Heidelberg for overhaul.
her latest stay the yard also fitted a balcony           taking about three weeks per ship and the                   Kötter Werft in Haren did something
sprinkler system and extended QM2’s                     first vessel, the 211 TEU feeder Geulborg,                similar, dry-landing its biggest ship for over-
bridge wings by two metres.                             called last October.                                     haul – the 105 meters Karl Hein. It also
                                                           Also in Hamburg, completion of anoth-                 lengthened another 85 meters vessel.
Main engine overhaul                                    er series repair job has got things off to a                Finally the Schiffswerft Braun in Speyer
The 24,108 GT Saga Rose called for pro-                 good start this year at MAN PrimeServ.                   not only lengthened but also widened the
peller and main engine overhaul, while                  The repair facility tackled main engine                  inland vessel Bandolino and added a new
work on the 8,378 GT Hanseatic included                 crankshaft bearing damage on the 15,074                  bow.
engine, gear and stabiliser maintenance,                GT ferry Millenium Express and engine                                                       to m to d d
cabin refurbishment and painting. Regular
customer 24,202 GT Maxim Gorkiy paid
her tenth visit, this time for general repair.
   Other recent jobs have included repair
and steel and class work on one of the
world’s biggest offshore pontoons, S600.
Propeller repairs were handled on the
31,992 DWT bulker Umiak, a job which
entailed the removal and replacement of
the entire propeller plant. Elsewhere the
lengthening of the ro-ro/lo-lo carriers
Finnpine, Finnwood and Finnfighter by 20
meters was successfully completed.
   Among other busy repair/conversion
projects of note is the conversion of the
59,652 GT Dutch cruise ship veteran Rot-
terdam at Turbo-Technik Reparaturwerft in
Wilhelmshaven. Project Head Jürgen
Möhring was quoted as saying the overall
project was costing EUR 60 million, with
TT earning a double-digit sum. The con-                 Queen Mary 2 gets her pod back at B+V.



                                                                                                                                                               BerCom



                                                                                                                  – to install
                                                                                                                  a vacuum
                                                                                                                  toilet system




        www.jets.no

                                                                                                                                       Sanitary Systems
                                                                                                                                       – made to please


JETS VACUUM AS. P.O. Box 14, N-6069 Hareid, Norway. Tel. + 47 70 03 91 00. Fax + 47 70 03 91 01. E-mail: post@jets.no




SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                                 49
S H I P B U I L D I N G A N D S H I P R E PA I R




                                                                                                   MADLI VITISMANN
                                                                                                                     building orders are placed by loyal cus-
                                                                                                                     tomers, mostly from Scandinavia, and the
                                                                                                                     order portfolio for the year 2008 is already
                                                                                                                     being filled.

                                                                                                                     LATVIA
                                                                                                                        A domestic turnkey shipbuilding order
                                                                                                                     is nearing completion. One of the two ice
                                                                                                                     class tugs commissioned by the Freeport of
                                                                                                                     Riga has already been launched and the
                                                                                                                     other one is still on the slip. The Stella and
                                                                                                                     Santa tugs have 3,300 hp engines capable
                                                                                                                     of a bollard pull of 65 tons.

                                                                                                                     Inevitable wage increases
                                                                                                                     Insufficient labour force and high labour
                                                                                                                     costs are not unfamiliar issues for the Riga
                                                                                                                     Shipyard. According to Mr Slyozkin, some
                                                                                                                     of the necessary specialists are recruited in
The hull of a live fish carrier in April 2006, delivered as Aronia Viking in July 2006.                               the Ukraine and Bulgaria. Wage increases
                                                                                                                     are inevitable in Riga, too, and Mr Slyoz-
                                                                                                                     kin remarked that these wage increases are

Riga Shipyard: 2008                                                                                                  disproportionally high.
                                                                                                                        Last year the Riga Shipyard repaired 94
                                                                                                                     vessels and head of the marketing division

portfolio is filling up                                                                                               Edward Maltsev notes that it was a usual
                                                                                                                     year with normal profitability. When there
                                                                                                                     are not enough local repair workers, addi-


S
        hips are already being built at the        Norway. A Danish customer is expecting a                          tional workers are recruited not only in the
        Riga Shipyard on two slips. The            trawler that is 63 metres long.                                   Ukraine, Bulgaria and Russia, but in
        large well boat, with the volume of           According to Gennady Slyozkin, head of                         Lithuania as well.
its three holds at 2,000 m3, is an order from      the newbuilding department, the ship-                                                     madli vitismann




Tosmare Shipyard: no expansion plans
❯    The Tosmare Shipyard has reached its
     optimal performance level and strives
to remain in its niche, focusing more on
                                                   summertime. The wages were increased
                                                   twice during last year, the rise totalling 30
                                                   per cent, yet this has nothing to do with
                                                                                                                     requirements. There is plenty of work at
                                                                                                                     the shipyard, for example five ships are cur-
                                                                                                                     rently being repaired.
quality than on volume. 56 ships were              improved labour efficiency. Mr Galkovich                              Mr Galkovich explains:
repaired last year and 5–6 catamarans, up          believes that it is not viable to bring in                           “Our future plans are similar to what we
to 30 metres long, are built for Norwegian         more than 50–60 workers from abroad at a                          have now: keep the level of repairs at
customers every year.                              time, as work quality control would suffer.                       50–60 ships per year and also build smaller
   According to Commercial Director                                                                                  ships. We maintain the current level as that
Boris Galkovich, the shipyard is concen-                                                                             of high quality and we would rather
trating its efforts on repair work. They                We would rather decrease                                     decrease the volume than yield our quality.
already have loyal customers in Russia,                                                                              In the future clients will make their choices
Germany and even Cyprus, also repairing                       the volume                                             based on the available quality, which is
ships owned by Latvian companies. For                    than yield our quality.                                     why we have no expansions plans.”
instance, three ships of the Riga Transport                                                                             The Tosmare Shipyard thus intends to
Fleet were docked, as well as bulkers of                                                                             stay in its current niche, that of dry docks,
smaller Latvian shipowners at 2,000–5,000             The Tosmare Shipyard has 290 employ-                           repairing ships of up to 10,000 DWT,
DWT. Lithuanian shipowners also find                ees of its own and some more people work-                         length of up to 120 metres and width of up
their way to Tosmare – four Lithuanian             ing for subcontractors. Those who come                            to 30 metres.
ships were repaired last year.                     from elsewhere are distributed between dif-                          “Medium-tonnage vessels – this is the
   Just as elsewhere, Tosmare experiences          ferent work teams at the shipyard to facili-                      current growth area,” says Mr Galkovich.
labour force shortages, especially in the          tate their compliance with the work                                                        madli vitismann

50                                                                                           SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                               Flexibility
FA L K VA R V – S E R V I C E S P E C I A L I S T S F O R A L L T Y P E S O F TO N N AG E


                        M/V Laguna owned by Lupin
                        Shipping was the first vessel
                        entering the new dock
                        bought from Germany.




                                                                             • Rebuildings
                                                                             • Class works
   Two floating docks with                                                   • Chocking of
    following dimensions                                                       main engines
                     Dock 1       Dock 2                                     • CAP-measuring
 Max. ship length     120 m         155 m
 Max. ship width       19 m          25 m
 Lifting capacity 4,500 tons   7,500 tons

             REPAIR QUAY
 Length                            250 m
 Depth                                7m
 Crane capacity                   36 tons




                                 Change of main
                                 engine at M/S Gotland




                                                                   Prepairing for installation of
                                                                   main engine



   Falkvarv AB, Hamnvägen 12, S-311 32 Falkenberg, Sweden
   Telephone +46 (0)346 - 141 50 • Telefax +46 (0)346 - 819 85
             E-mail info@falkvarv.se www.falkvarv.se
S H I P B U I L D I N G A N D S H I P R E PA I R




                                                   Baltija: Caring
                                                   about the staff




Baltija puts a lot of effort into keeping their experienced welders.                                                         BALTIJA SHIPBUILDING YARD




T
       he Baltija Shipbuilding Yard had            built for the Odense Steel Shipyard. Con-        product research and development,
       expected a loss for the previous year       tracts already exist for these parts of a new    improved working conditions and success-
       but managed to avoid it due to addi-        ship series to be manufactured until the         ful marketing. In addition to the LTL 7 mil-
tional orders. The labour force fluidity is         middle of 2008.                                  lion (EUR 2 million) invested last year, the
forcing the enterprise to seek ways of better                                                       investments planned for this year total LTL
ensuring that its workers choose not to            EUR 43 million turnover                          10 million (EUR 2,9 million) for expand-
leave. One possibility is temporary work at        Last summer Baltija suffered a setback           ing the existing workshops and building
the parent company of the group.                   when the upper part of the Emma Mærsk            new ones. The gas-plasma cutter assembly
                                                   superstructure burned down and had to be         is about to be completed. The Acos plan-
LITHUANIA                                          rebuilt.                                         ning system has been implemented that
                                                      The turnover of the shipyard achieved         helps with noticing unused opportunities
   Last year Baltija processed 55,400 tons         EUR 43 million, but the inevitable increase      inside the enterprise.
of steel. This is a new output volume              of the wages was higher than planned,
record – 18 per cent more than in 2005.            threatening a loss. Nevertheless, the enter-     Staff should stay
According to sales manager Vladislav               prise managed to get a zero profit instead.       Baltija has 1,521 employees and the num-
Marinec, the output structure’s largest part          Mr Marinec remarked that although the         ber of the workers remains on the same lev-
comprises hull blocks (60 per cent) and            portfolio is complete, nevertheless Baltija is   el as last year. Yet the labour force fluidity
superstructures (34 per cent) for container        open for additional orders, because the          prevents the enterprise from increasing the
vessels. The turnkey tug production for            market situation is favourable. The enter-       output volume. Even though the 300 peo-
Svitzer amounted to just 6 per cent of the         prise also uses subcontractors, mostly from      ple who left during the year have been
total output but the enterprise is now in          the Ukraine. This is one way of reducing         replaced by the same quantity of new
negotiations to make another tug series for        labour expenses – they are somewhat lower        workers, the newcomers are unfortunately
Svitzer in 2008.                                   at subcontractors’ companies.                    less experienced.
   In the preceding years a large part of the         The Lithuanian Confederation of Indus-           The labour force fluidity stands at about
output had also comprised hull blocks and          trialists awarded the Successfully Working       20 per cent and although this has not
superstructures for the container vessels          Enterprise 2006 diploma to Baltija for           reduced the quality to a level below the

52                                                                                            SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                                  S H I P B U I L D I N G A N D S H I P R E PA I R




                                                      BALTIJA SHIPBUILDING YARD
norm, some quantity decreases have
ocurred.
   The enterprise has conducted employee
polls to determine the problems that worry
the staff the most. A good solution to
retain experienced employees has been
found – such employees are sent to work at
the parent company of the group for a
while. Instead of going to work abroad and
on their own, about one hundred of the
best workers last year formed brigades to
work for three months at the Odense Steel
Shipyard.

Annual bonus
According to Mr Marinec, the wages were                                           Today, the welders are helped by programmed welding consoles.
raised by 15 per cent on average during the
year and by a further 8 per cent this Janu-                                       chance to have their vacation in the sum-         The salary alone is not a sufficient moti-
ary. Those who have worked at the enter-                                          mer, the enterprise has to restore the sum-    vating factor, as a long-serving worker
prise for more than a year get an annual                                          mer break, as it had been practiced in the     relates in an interview in the enterprise’s
bonus as well. Furthermore, to stimulate                                          earlier years. The arrangement for the com-    own newspaper. The welder who has been
long-term employee loyalty, Baltija pays                                          ing summer is to stop the production           here for 35 years praises the tug order as an
insurance premiums for its staff. If a person                                     process for three weeks. Baltija also offers   opportunity to feel creative while perform-
is still working at the enterprise when the                                       various smaller additional benefits like        ing his work. Unlike in the separate parts
ten-year insurance contract expires, (s)he                                        cheaper meals at the enterprise’s diner,       manufacturing process, a turnkey order
will receive the insurance sum if no insur-                                       transport cost compensation for those who      gives one the chance to see how the ship is
ance indemnity was paid.                                                          commute to work from outside the city,         actually taking shape.
   To give the majority of the employees a                                        etc.                                                                   madli vitismann




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SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                                                 53
S H I P B U I L D I N G A N D S H I P R E PA I R




Western Shipyard:
Clients like our style of work




                                                                                                     ZYDRUNAS STASYTIS
                                                                                                                         clients are thus pleased with us. The prices
                                                                                                                         remain competitive – so far – because the
                                                                                                                         use of foreign workers allows us to keep the
                                                                                                                         prices on the same level. We hope to start
                                                                                                                         building turnkey ships next year.”

                                                                                                                         Young people prefer to stay away
                                                                                                                         94 ships were repaired at the Western
                                                                                                                         Shiprepair Yard last year. The larger docks
                                                                                                                         than the parent company have allowed the
                                                                                                                         enterprise to repair larger vessels. Some
                                                                                                                         loyal customers already exist but this does
                                                                                                                         not mean that they have all their ships
                                                                                                                         repaired in Klaipeda.


                                                                                                                                 The prices remain
                                                                                                                               competitive – so far –
                                                                                                                             because the use of foreign
                                                                                                                             workers allows us to keep
                                                                                                                            the prices on the same level.

The Monchegorsk in the dry-dock, with extensive repairs of her propulsion mechanism
                                                                                                                            According to deputy marketing director
being done.                                                                                                              Dmitrij Kuzmin, one of the most difficult
                                                                                                                         projects was the Murmansk Shipping Com-
Just like its BLRT Group parent                    way to build a self-propelled jack-up plat-                           pany’s general cargo vessel Monchegorsk, a
company, the Western Shipyard in                   form for a German company.                                            ship with a high ice class, which was sent in
Klaipeda is comprised of several                      In addition to hulls, the enterprise con-                          for extensive repairs of her propulsion
subsidiaries. The amount of work is                tinues to manufacture hull blocks for the                             mechanism. The largest ship repaired so far
not something to complain about but                Odense Steel Shipyard, a cooperation that                             is the Panamax-tanker Citius. This vessel,
labour force shortage is a problem                 will continue next year and negotiations                              248.6 metres long and 32.2 metres wide,
here, too.                                         are already underway regarding a contract                             could not even fit in the dock and 200 tons
                                                   for 2008–2009.                                                        of its metal parts were replaced outside the

❯   Fiskerstrand Verft, a long-time partner,
    has already received ten ferry hulls
from Klaipeda and the outfitting level
                                                   Adhere to deadlines
                                                   As elsewhere at shipyards on the eastern
                                                                                                                         dock.
                                                                                                                            Labour force shortages are a problem in
                                                                                                                         the ship repairs sphere, too, which is why
increases every time. Further four hulls will      shore of the Baltic Sea, the Western Ship-                            workers are brought in from other coun-
be built this year and one earlier next year.      yard experiences labour force shortages,                              tries: the Ukraine, Bulgaria and Romania.
According to Western Shipbuilding Yard’s           especially welders. This situation is alleviat-                       According to Mr Kuzmin, young people
marketing director Jevgenij Petrov, negotia-       ed by recruiting foreign workers – welders                            are not eager to go to vocational schools to
tions are taking place with the Norwegian          from Bulgaria, Russia, the Ukraine and                                become welders as they prefer so-called
shipyard to find ways for closer coopera-           Romania.                                                              “cleaner” jobs, for instance in the IT field.
tion aimed at joint turnkey shipbuilding.             Mr Petrov answers the question why the                                “We had to increase the wages by 10–15
   But do not exclude the possibility that         shipbuilding focus is not shifted to the                              per cent recently to keep people working
new orders of environmental ferries, like          countries where the welders are recruited                             for us – salaries are generally on the
LNG-ferries, will come to Klaipeda as well,        from:                                                                 increase in Lithuania. That is why we have
also in co-operation with Fiskerstrand                “Clients like our style of work, deadlines                         to slightly raise some prices and put a lot of
Verft. These ships are currently in their          and quality. We always adhere to our dead-                            attention to inner reserves”, he explained.
design stage. Negotiations are now under-          lines, the quality is very good and the                                                        madli vitismann

54                                                                                             SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
  All types
  of ships!




                                         Foto: Flight Foto




     Box 8045, 402 77 Göteborg.
Tel 031 - 50 20 00. Fax 031 - 22 79 31
  e-mail: gotaverken@cityvarvet.se
     hemsida: www.cityvarvet.se
S H I P B U I L D I N G A N D S H I P R E PA I R




The activity at Aker-Yards’ Søviknes yard reflects the main market groups: An offshore vessel fitting out,                             AKER YARDS

a trawler for conversion and one of the five Fjord1’s LNG-fuelled ferries for the E-39 coastal road.




2006 – a blissful bonanza
for Norwegian shipbuilding
T
       he year of 2006 will surely be                                                             cy gains achieved during preceding meagre
       remembered for a very long time as                                                         years.
       the blissful bonanza for shipbuilding
                                                          Production was up                          The volume of new orders during 2006
in Norway. Production was up to capacity,               to capacity, new orders                   of NOK 44 billion should, however, be put
new orders and order backlog exceeded any                                                         into perspective by the corresponding fig-
historical precedent at prices that should            and order backlog exceeded                  ure of NOK 3.4 billion in 2003. That was
again leave a decent margin for profit.                                                            the year when shipyards were closed and
Most yards are now fully booked into
                                                       any historical precedent.                  shipbuilders and sub-contractors had to
2009, and contracts are being negotiated                                                          cut down on staff. Now everything is
for delivery positions well into 2011.             deepwater production. This has given a         reversed; the shortage of skilled labour is
                                                   tremendous incitement for the Norwegian        being made up by Polish guest workers.
NORWAY                                             offshore-related marine industry in a global      The singular aspect about the Norwegian
                                                   market. As a related part of this industry     shipbuilding industry is its fragmentation
  The order boom, which picked up in the           cluster the shipyards have been in a posi-     and flexibility; a relatively large number of
autumn of 2004, is mainly driven by the            tion to benefit with competitive offers,        small yards relying on a high degree of sub-
prospects for increased oil exploration and        largely thanks to the cost cuts and efficien-   contracting, from steelwork to specialist

56                                                                                          SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                   S H I P B U I L D I N G A N D S H I P R E PA I R


outfitting. As demand varies, the fluctua-                         ORDERS WITH NORWEGIAN SHIPBUILDERS AS PER JANUARY 1, 2007
tions are being absorbed by a great number
                                                                                        Norwegian                   Foreign
of suppliers which to a certain extent con-                                             account no   Mill NOK       account no      Mill NOK         Total
tribute to a robust industry structure.
                                                                 Tankers                –                    –      8                    3,960       8    3,960
Oil-fuelled boost                                                Dry cargo              3                  355      5                      918       8    1,273
                                                                 Offshore               118             42,188      30                   7,142       148 49,330
The global building boom has had its own
                                                                 Fishing/fish carriers   8                  715      6                    1,010       14   1,725
oil-fuelled boost as Norwegian shipyards
have been able to conclude building con-                         Pass vessels           18               1,735      2                      150       20   1,885
tracts of NOK 44.1 billion (roughly USD                          Other                  2                  100      9                      135       11     235
6.8 billion) in 2006. The order stock at the                     Total                  149             45,093      60                  13,315       209 58,408
                                                                                                                                                   Source: SSG Bergen
end of the year amounted to NOK 58.4
billion, compared to a production value of
11.9 million.                                                    Aker Florø. In this project, the Florø yard       early delivery positions from the autumn
   The oil price is the main driver, as seen by                  will build the stainless steel cargo sections     of 2008.
the 88 per cent share of offshore vessels in                     and do the outfitting, while the Damen
the new orders. The trend through the year                       Ocean shipyard in Ukraine will build the          Industry structure
was from supply ships to even more expen-                        bow and stern sections. The price of USD          Aker Yards has taken another step
sive vessels for subsea construction work                        87.5 million per ship is, arguably, not mod-      towards consolidating its five yards in
and multipurpose service ships. The prices                       est, but will ensure quality and reasonably       Western Norway, Aukra, Brattvaag, Søvik-
for such ships are often in the USD 80–125
                                                    AKER YARDS




million range, so even though the hulls are
subcontracted to Romania or elsewhere, the
largest slice goes to Norwegian suppliers.
   The rising shipbuilding prices globally
have also restored some competitive power
in other segments. This is seen by the order
for four 43,000 DWT chemical carriers by
Stolt-Nielsen Transportation Group from

Production value
Billion NOK
15



10



 5



 0
     1996   1998   2000   2002     2004    2006                  Offshore vessels make out 85 per cent of the order value. Aker Yards Langsten will build four
                               Source: SSG-Bergen                UT731 for Farstad Shipping, each at a price of USD 85 million.

Shipyard orders 1990–2006
Billion NOK                                                                                               ■ Order stock at end of year ■ New orders during year
60

50

40

30

20

10

 0
       1990   1991    1992       1993     1994      1995               1996     1997      1998   1999    2000    2001    2002    2003     2004    2005       2006
                                                                                                                                                  Source: SSG-Bergen



SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                                    57
S H I P B U I L D I N G A N D S H I P R E PA I R




                                                                                                  TOR ARNE AASEN
                                                                                                                         The challenge for the
                                                                                                                       Norwegian shipbuilders
                                                                                                                         will be to retain their
                                                                                                                       competitive edge through
                                                                                                                          the offshore feast.

                                                                                                                   invested so much in a local steel produc-
                                                                                                                   tion facility, has developed a system for
                                                                                                                   section building in Poland. Other yards
                                                                                                                   have been less capable of finding long-term
                                                                                                                   steel suppliers of the required quality, and
                                                                                                                   these are already seeing severe delays in
The Norwegian yards have sourced out steelwork to Baltic and Black Sea builders, like the
                                                                                                                   deliveries.
ferry hull at Fiskerstrand Verft to be completed as Lote to Fjord1 FSF.
                                                                                                                   An increased workforce
nes, Langsten and Florø. In October 2004              The next years will see higher figures,                       Also, the specialist subcontractors involved
the commercial leadership was brought              much due to the complexity and cost of                          at home have had to take on people to
together in a common staff, and subse-             the vessels.                                                    meet demand. Although figures are hard to
quent new orders were concluded with                  There are obvious bottlenecks, though.                       get by, the total employment in the ship-
this unit and allocated to the yards. The          One has been the availability of skilled                        building industry has rebounded from an
Florø shipyard, the only one in Norway             labour, a shortage filled by Polish workers.                     estimated 6,000 by 2004 to more than
capable of building larger vessels up to           Another, and more serious, has been the                         8,000 today.
about 40,000 DWT , was acquired by                 capacity for steel subcontracting from                             Equipment manufacturers are report-
Aker Yards in June from Kleven, valued at          Baltic and Black Sea countries. No doubt                        ing much the same challenges and are
NOK 60 million plus assets and liabili-            Aker Yards has tackled this in a profession-                    carefully trying to attract new workers.
ties.                                              al manner, buying and integrating the Tul-                      Manufacturers like Rolls-Royce Bergen
   Other yard transactions include the             cea and Bourgas yards in Romania, latterly                      Diesel are now fully booked until 2010,
Solstrand shipyard, purchased by Per               also Ocean Damen. Ulstein Verft, which                          and the crucial factor for delivery of
Sævik’s Havila group in August from the
bankers. This means that Solstrand in the




                                                                                                                                                                  ARTIST IMPRESSION NMF
future will be integrated with Havyard
Leirvik.
   The year saw a few resurrections. Fosen
Mek Verksteder again spurred into life with
Stena Trader, a ro-pax delivered to Stena
Line in June after three years’ inactivity.
Bergen Yards – which carries the legacy of
both BMV and Mjellem & Karlsen –
received its first hull from Poland for fit-
ting out and has thus returned to ship-
building. Karmsund Maritime delivered its
first vessel in three years, and smaller yards
like Eidsvik and Hellesøy secured orders
that will see new activity at quiet yards. At
the latest count, there are 32 shipyards
actively building vessels larger than 20
meters.

Production bottlenecks
Looking back ten years, the annual produc-
tion value has varied considerably within
NOK 8-12 billion range, with 2002 and
2004 as the all-time high and low of 14.4          Aluminium shipbuilder Fjellstrand will deliver the FlyingCat 35m catamaran
and 4.4 billion, respectively.                     Miljødronningen 2 to Norges Miljøvernforbund in September 2007.


58                                                                                          SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                S H I P B U I L D I N G A N D S H I P R E PA I R




                                                ODDGEIR REFVIK
 Read more on
 www.shipgaz.com
   For complete lists of orders and
 ! deliveries for the year 2006 in
 Norway, please see our website.


anchorhandlers, for example, is not steel
production, but delivery of propulsion
systems and winches.

Technology edge
Traditionally, Norwegian shipbuilders have
had four main markets: Offshore, fishing,
passenger and specialized vessels. From
1998 to 2004, offshore vessels have made
out roughly half the annual production
value, rising to 75 per cent last year and 85                    The first of the Ulstein X-bow concept was the anchorhandler Bourbon Orca of the AX-104
per cent of the order stock. Fishing vessels,                    design, delivered in June 2006 from Ulstein Verft to Bourbon Offshore Norway.
for example, used to fluctuate between 17
and 29 per cent, but was down to 3 per                           times complementing demands. This will            As we close the book for 2006, the chal-
cent in 2006. The same goes for passenger                        certainly continue. Typically, the Norwe-      lenge for the Norwegian shipbuilders will
vessels, where large vessels like the Hur-                       gian shipbuilding industry has its strongest   be to retain their competitive edge through
tigrute ships in 2002 brought the share to                       stand in offshore and fishing, and secondly     the offshore feast. When it is all over, they
27 per cent, down to 7 last year.                                in passenger and specialized vessels, seg-     will have to be lean and hungry to compete
   In a longer perspective, all these markets                    ments where shipbuilding is just a part of a   with Polish and Indian shipbuilders.
are cyclical, driven by diverse and some-                        larger technology cluster.                                                 da g b a k k a j r
S H I P B U I L D I N G A N D S H I P R E PA I R




Polish newbuilding shipyards:

Sentenced to cut down
on capacity
Finntrader being rebuilt at Remontowa.                                                                                                   OLLI LEINO




W
           hen writing about Polish new-           aged to unearth Neelie Kroes’ letter           take them over. Privatization is namely the
           building shipyards today, one           addressed to the Polish Minister of Econo-     basic condition to avoid the necessity of
           cannot help but get the impres-         my, Piotr Wozniak, in which she demands        paying back.
sion that it does not really matter what           the reduction of capacity of shipyards in         Not only the very shipyards but also
they produce, who they make it for, and            Szczecin, Gdansk and Gdynia. The plan          their owners seem to have encountered a
how much it costs. Whether or not they             was to be submitted by the end of February.    dead end situation. Any decision they
produce anything next year, who they                 The reductions is the price we have to       make will be disastrous in consequence.
belong to and what the price of their sec-         pay after the support given to the sector in      The European Union demands that
ond denationalization will be, seem to be          2002. According to Brussels’ estimates, the    either there are considerable cuts in the
questions of far greater importance.               public financial assistance amounted to         capacity, or the Polish shipbuilding sector
                                                   PLN 2.2 billion.                               will be forced to return the borrowed
POLAND                                                                                            amount, which for the time being is utterly
                                                   Privatization to avoid payback                 impossible, since the shipyards cannot
   According to hearsay, Brussels wants to         If the plan is not lodged in time, the Euro-   afford it.
reduce the capacity of Polish shipyards by         pean Commison is going to order the ship-         If the shipyards decide to get rid of the
approximately 40 per cent. They insist on          yard a quick payback, which is equal to        part of properties essential for building
appropriate steps being taken by the end of        their insolvency. Kroes suggested that the     new vessels, they will cease to attract any
February. At least that is what Neelie             reduction might be achieved by closing         investors, which will result in their fall. The
Kroes, the EU Commissioner for competi-            down one of the shipyards. The letter from     repayment of the public assistance is rather
tion, expects. Most of the demands have            the EU Commissioner arrived just when          out of the question because the shipyards
been disclaimed by her spokesperson,               state-owned ARP – Agencja Rozwoju Prze-        are up to their ears in debt and they make a
Jonathan Todd.                                     myslu, the main owner of the shipyards –       loss.
   One of the Polish national dailies man-         was looking for private investors ready to        On the other hand, however, such firm

60                                                                                          SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                    S H I P B U I L D I N G A N D S H I P R E PA I R




                                               PIOTR STARENCZAK
demands must have caused great astonish-
ment. The lower capacity they have, the
less attractive they are to potential
investors. It seems as if there were some of
them with their sights set on cheap pur-
chase of Polish shipyards. It is namely
impossible to reduce production capacity
without putting the shipyards at risk of
paying contractual fines. After the capacity
has been reduced, it will not be possible to
meet the deadlines, which are already
agreed – 750,000 CGT.

Sceptical approach
The present Minister of Economy is rather
sceptical about the plans, which came from
Brussels, nowadays Poland is not the for-
                                                                  Could privatization rescue the Polish shipbuilding industry?
mer GDR (German Democratic Republic)
and there is no way we could talk about
liquidation of the Polish shipyard sector’,                       low production was caused by “wrong/bad          are a real time bomb that can go off at any
as it was suggested by Kroes. Nor are we                          management”. He adds that their actual           time.
going to close down any of the shipyards.                         capacity is considerably higher. Wozniak            If there is any understanding in Sczecin
                                                                  announces that the preliminary plan of           for closing one of the slipways, it will take
                                                                  capacity reduction will be proposed by 28        place no sooner than 2011. They have
      We are doing our best                                       February.                                        already got used to the idea that around
                                                                     Strangely enough it seems as if Europe is     2,000 of 5,500 staff will lose their jobs. Now
     to push the shipbuilding                                     trying to shoot themselves in the foot.          a substantial part of them are taking leave
     industry out of Europe.                                      Brussels should be aware of the fact that        or sick leave and seeking better jobs abroad,
                                                                  shipowners are already struggling to place       first and foremost in Norwegian shipyards.
                                                                  their orders as far as 2011. Even Asian ship-       According to the latest news, the ship-
The Department of Economy has decided                             yards are bursting at the seams as far as the    yard in Gdynia would probably reduce
to agree that the production will be                              orders are concerned.                            their capacity by closing the so-called small
reduced to 750,000 CGT (the measure of                                                                             dock for ten years, from 2010 to 2020. Such
the ships under construction). The prob-                          Giving in to Asian pressure?                     a move would enable production to be kept
lem is that Commissioner Kroes has                                The firm demands make one think that             at the planned level, i.e. twelve vessels each
already learned about this plan and criti-                        Europe is giving in to the pressure from         year. The level has been described in the lat-
cized it in the letter addressed to Wozniak.                      Asia – we are doing our best to push the         est restructuring programme. The informa-
Within the last 15 years the entire yearly                        shipbuilding industry out of Europe. This        tion we have shows that other production,
production of the three shipyards has nev-                        will yield further thousands of lay offs,        not connected to shipbuilding, can be car-
er reached this amount, pinpointed Com-                           both in the shipyards and among suppli-          ried out without any obstacle. For example,
missioner Kroes.                                                  ers. Therefore the Minister of Economy           producing stall constructions for building
   The Minister of Economy agrees with                            has to do as much he can to negotiate the        purposes should not raise any protest and
this calculation, but he explains that their                      tiniest possible reduction. The unionists        could be carried out without any restric-




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SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                                   61
S H I P B U I L D I N G A N D S H I P R E PA I R




                                                                                                  PIOTR STARENCZAK
                                                                                                                           No one is able to focus
                                                                                                                           on current production,
                                                                                                                             as everybody fears
                                                                                                                             the days to come.

                                                                                                                     that Gdynia will have to suffer a heroic
                                                                                                                     and sometimes hysterical battle for sur-
                                                                                                                     vival. No one is able to focus on current
                                                                                                                     production, as everybody fears the days
                                                                                                                     to come.
                                                                                                                        Sentence is to be pronounced in
                                                                                                                     March. It is not until then that the plans
                                                                                                                     of the government and the opinion of the
                                                                                                                     European Comission will see the day-
                                                                                                                     light. What if investors do not show up?
The container vessel Hijaz before delivery from Gdynia Shipyard.                                                        Undoubtedly there is too much politics,
                                                                                                                     organized labour and employees in the
tions. It seems that it also will be possible to      It is believed that the two Norwegian                          Polish shipyards. The lack of competence is
assemble ship sections, which could be             companies, now consolidating their posi-                          visible not only in Warsaw, where they
assembled in a big dock afterwards.                tions, are planning to build in Szczecin                          always have been somewhat out of the sec-
   As the president (MD) of Stocznia Gdy-          either platforms for the offshore sector, or                      tor, but unfortunately also in the very ship-
nia, Kazimierz Smolinski says, the Euro-           windpower plants. Vegar Stokset from                              yards, where there has always been a clash
pean Union has started to discuss the              Norsk Hydro does not make any comment                             of political interest and not a single idea
future of the shipbuilding sector. The Pol-        on current projects and sales, in his cus-                        for a successful strategy.
ish shipyard workers hope that Europe              tomary manner.
does not want to fall behind the Far East             When it comes to the shipyard in                               Sluggish Government
countries, where subsidies on production           Gdansk, its future connected to privatiza-                        Both Jacek Piechota, the former Minister
are tantamount to 30–40 per cent of a              tion does not look bad either, as it has ten                      of Economy, and organized labour are
ship’s value.                                      times lower debt than the former owner,                           convinced that the present situation has
                                                   Stocznia Gdynia, whose debt is estimated                          resulted from the sluggishness of the Gov-
Norwegian interests                                at approximately PLN 500 million.                                 ernment. They believe that the situation
By now, only one investor has lodged an               Free from strains, numerous staff and,                         would be different if the shipyard was
official bid for the purchase of Stocznia           what is rather important, given more time                         already in private hands. The last restruc-
Szczecinska. It is Zlomrex, the company            in the plan of the Polish government (until                       turing programme was launched only when
owned by Przemyslaw Sztuczkowski. It is            June 2008), they may expect much more                             Brussels reacted. Consequently, it was
unofficially known that Norwegian Norsk             favourable solutions concerning their                             completed at the last moment, and now
Hydro and Statoil may be willing to take           future.                                                           there is great tardiness in enforcing it.
over the SSN property.                                Being at the bottom of the list means                             Hardly anyone is envious of what War-
                                                                                                                     saw is experiencing now. Even if they man-
                                                                                                                     age to rescue some tings, the costs will be
                                                                                                                     rather significant. If the shipyards fall, all
                                                                                                                     or just some of them, they will leave
                                                                                                                     behind debts guaranteed by the State Trea-
                                                                                                                     sury. The person to pay for incompetence,
                                                                                                                     taridness of consecutive governments,
                                                                                                                     light-heartedness, and political games, is
                                                                                                                     none other than the Polish taxpayer.
                                                                                                                        In recent reports it is estimated that the
     REPAIR SHIPYARD IN HELSINGBORG SWEDEN                                                                           costs to Polish society would reach PLN
                                                                                                                     3.5 billion if the shipyards went bankrupt.
     Landskrona Stål AB                                                                                              Unemployment would increase directly by
     “The Shipyard in the heart of Oresund Strait”                                                                   15,000 persons and indirectly by 35,000.
     Dry dock:        112 x 16 meters              Phone: +46 42 12 02 95
                                                                                                                        Everybody knows that ships built in
     Crane cap:       40 and 5 tons                Fax:   +46 42 18 09 16
                                                                                                                     Poland are of top quality. So?
     ~24 hrs service ~ E-Mail: landskronastal@landskronastal.se www.landskronastal.se
                                                                                                                                             leszek szymanski

62                                                                                          SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
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S H I P B U I L D I N G A N D S H I P R E PA I R




                                                                                                  ALEXANDER KALININ SEANEWS.RU
                                                                                                                                                                 establishment of a national shipbuilding
                                                                                                                                                                 corporation, has given the supreme respon-
                                                                                                                                                                 sibility for this task – now also including
                                                                                                                                                                 civilian shipbuilding – to his new First
                                                                                                                                                                 Deputy Prime Minister, Sergei Ivanov.

                                                                                                                                                                 Unified shipbuilding corporations
                                                                                                                                                                 Just after having been promoted on Febru-
                                                                                                                                                                 ary 15, Sergei Ivanov said that he saw ship-
                                                                                                                                                                 building as one of his key tasks of develop-
                                                                                                                                                                 ment. Citing the news agency Itar-Tass, he
                                                                                                                                                                 compared shipbuilding to the national air-
                                                                                                                                                                 craft industry:
                                                                                                                                                                    “Here, as is the case with aviation, is one
                                                                                                                                                                 of the most burning problems; we are very
                                                                                                                                                                 competitive in military shipbuilding, but
                                                                                                                                                                 in the civil sector – (it is) a headache. Apart
                                                                                                                                                                 from military orders, we also need civil
Sovcomflot's Tavrichesky Bridge at the Admiralty Shipyard (St Petersburg).
                                                                                                                                                                 ones; from river vessels to oil platforms,
                                                                                                                                                                 tankers and gas carriers, which we have not


Changes continue in
                                                                                                                                                                 produced so far.”
                                                                                                                                                                    In his new role, Minister Ivanov over-
                                                                                                                                                                 sees industrial policies and telecommuni-
                                                                                                                                                                 cations. Previously he had the position of

Russian shipbuilding                                                                                                                                             Deputy Prime Minister and Defence Min-
                                                                                                                                                                 ister, in which role he successfully unified
                                                                                                                                                                 the county’s aviation industry designers


I
    n February Russia’s Minister of Industry       seeing a Russian version of the Jones Act                                                                     and manufacturers into one holding,
    and Energy, Viktor Khristenko, present-        emerging?                                                                                                     OAO Unified Aircraft Corporation, to be
    ed the Russian Duma with the Govern-              President Putin had ordered the Govern-                                                                    operational this year. In early February,
ment’s intentions to introduce new legisla-        ment to prepare a proposal for shipbuilding                                                                   then as Deputy Prime Minister, he told
tion “to prevent Russian shipbuilding from         reforms and streamlined organization of                                                                       Cabinet members that “a decision in
falling behind Western competitors”, citing        related institutes by December 1 last year.                                                                   principle was made that shipbuilding will
the Russian daily Kommersant. Abolishing              The programme, approved by the cabi-                                                                       have at least three holdings, unlike air-
of VAT is proposed for equipment with no           net of ministers, proposes that there should                                                                  craft construction.” His intention is to
similar products manufactured in Russia.           be one scientific centre, headed by the                                                                        “try to avoid placing Russia’s defence
Measures include interest-free credits for         Krylov Institute, two engineering centers                                                                     interests at risk while creating these hold-
building ships, as well as financing for            and three shipbuilding centers, in the                                                                        ings, and to preserve those areas of ship-
shipyard modernization.                            Western, Northern and Far Eastern Russia,                                                                     building which are well developed, while
                                                   with shiprepairs to be developed in the                                                                       maintaining certain specializations in the
RUSSIA                                             Black Sea and Caspian Sea areas. Accord-                                                                      global division of labour on the ship-
                                                   ing to Khristenko, the programme will                                                                         building market.” The formal phase of
   The intention is also “to reinforce the         receive RUB 23.7 billion in funding                                                                           the project was to be completed already
priority right of Russian industry to create       between 2008 and 2010. Of this amount,                                                                        in February, to be followed by the forma-
means to develop the sea shelf ”, meaning          RUB 16.4 billion will come from the feder-
decisions for increased domestically placed        al budget. From 2010 to 2015, the pro-
                                                                                                                                 ALEXANDER KALININ, SEANEWS.RU




orders for rigs and vessels for the oil and        gramme will receive RUB 84.3 billion,
gas industry.                                      RUB 80.6 billion of which will come from
   Repeating figures mentioned already last         the budget.
October, Khristenko said that about 40                Much of the programme has been
drilling rigs and platforms for oil produc-        worked out by the Industry Agency, run by
tion and 14 rigs and platforms for gas pro-        Khristenko’s Ministry of Industry and
duction would be needed by 2030, along             Energy. The agency is in charge of the
with some 85 specialized tankers and more          naval shipbuilding, repairs, R&D, and
than 140 service vessels for developing off-       coordinating foreign trade of military and
shore oil fields in the North, the Far East         civilian ships at enterprises and organiza-
and in the Caspian Sea. He also proposed           tions directly subordinate to the agency.
the limitation of the use of foreign ships            President Putin, who last spring, in his                                                                   The Karel at Onega Shipyard in Petroza-
for coastal and internal shipping. Are we          state-of-the-nation address, called for the                                                                   vodsk.


64                                                                                          SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                               S H I P B U I L D I N G A N D S H I P R E PA I R


                                                DWT ships by 2010–2011, he was quoted
                                                saying.

                                                                                                      INTERIOR
                                                  At the beginning of February, Minister
                                                Ivanov said the government will, in
                                                2009–2010, decide whether to start build-
                                                ing a new shipyard for “building aircraft
                                                carriers”, which makes Gnusarev’s size              INSULATION
                                                                                                    VENTILATION
                                                plans seem too modest.

                                                New general director


                                                                                                       PIPING
                                                On February 26 the Northern Shipyard
                                                received a new general director. Before
The first sea trials of the nuclear-powered      this, Andrey Fomichev held the position

                                                                                                     ELECTRICAL
icebreaker 50 Years of Victory took place in
the Gulf of Finland in February. The            of advisor on shipbuilding to UIC’s chair-
construction of the vessel began at the         man and earlier headed Nevsky Shipbuild-
Baltiysky Zavod back in 1989.                   ing and Shiprepairing before which he was
                                                deputy general director of Yantar Ship-
tion of holdings. By 2015 the shipbuild-        yard.
ing production output is expected to               Admiralty Shipyards (Admiralteyskiye
more than double.                               Verfi), the third big shipyard in St Peters-
   Minister Ivanov’s prime task set by Pres-    burg, is already state-owned, as is Kalin-
ident Putin is to diversify industry in the     ingrad’s Yantar Shipyard. An idea to create
country from today’s dependence of oil          a submarine holding including Sevmash
and gas exports to producing high-tech          together with Zvezdochka, in the Arkhang-
high value products. This includes increas-     elsk region, was earlier proposed. Admiral-
ing the share of civil production by the        ty Shipyards in St Petersburg and a plant in
country’s Military Industry Complex.            Komsomolsk-on-Amur were also proposed
   Changes will be seen. At the end of Sep-     for this group.
tember last year, the newbuilding order-
book in Russia stood at 84 vessels,             Non-military sector
equalling some 790 CGT, down from 106           In January Zvezdochka informed it will
vessels and 990 CGT nine months earlier.        focus more on the private non-military sec-
                                                tor, as submarine repairs do not provide
On the verge of merge                           sufficient work for the yard. In February
Last summer, state arms trader Rosoboron-       Norwegian Aker Kværner bought Kimek
export was already negotiating on taking        Offshore As’s 50 per cent share in Zvez-
over the main yards in St Petersburg. This      dochka Engineering, working on western
task has apparently been difficult. Since        contracts for the state-owned Zvezdochka           SCANMARINE GROUP OF SWEDEN AB
2005, the Northern Shipyard (Severnaya          Shipyard. Sevmach has also lately been             WWW.SCANMARINE.SE
Verf) and Baltic Shipyard (Baltiysky Zavod)     involved in building civilian ships and            Bäringe 1B, Annexet
in St Petersburg have been owned by Unit-       semi-sub rigs and offshore structures,
                                                                                                   SE-241 95 Billinge, Sweden
ed Industrial Corporation (UIC), a sub-         including, recently, the soon finalized Pri-
sidiary to Mezhprombank. As speculated          razlomnoye Arctic oil platform.                    Phone: +46 (0)413-54 40 00
in the article last spring, this yard’s ship-      A little more than a year ago OJSC              Fax: +46 (0)413-54 41 10
building facilities would probably be           Vyborg Shipyard’s (then) owner Sergey              E-mail: scanmarine@scanmarine.se
closed, freeing valuable land for real estate   Zavyalov became head of surface ship-
purposes, another business sector of UIC.       building of UIC, indicating the future of
In this scenario, we speculated, new yard       this yard. Last autumn, some new private
facilities for large size shipbuilding would    investors bought shareholdings in the yard,
then have to be built on the Northern           and in December last year, Valery
Shipyard site.                                  Levchenko, former Baltiysky Zavod general
   In October last year, UIC chairman           director, was appointed general director of
Alexander Gnusarev, who still refused to        Vyborg Shipyard.
sell the yards, said there are plans to build      The smaller Almaz Marine Yard was
Russia’s most modern privately owned            bought by the yard management in 2005.
yard. The first facilities of Baltic Shipyard   Current owner Nevsky Capital is said to be
would be transferred to Northern Ship-          gaining more from the yard by using its
yard in 2008. After upgrading, the yard         land for real estate properties.
would be capable of building 80,000                                 henrik segercrantz

SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                              65
S H I P B U I L D I N G A N D S H I P R E PA I R




Shipbuilding
and ship repair
along the long
Swedish coast
Along the coast of Sweden and in the largest lake, Vänern,
several ship yards are rebuilding, repairing, renovating and
building new ships for domestic use as well as for foreign
shipowners and administrations.
  Many of the yards are small and family owned and quite a
few of the latter have been in the family for generations. The
present owners have not only inherited the skill and tradition
of shipbuilding and repair but have also developed and
renewed the enterprise to meet the demands of today and
tomorrow. They will continue to be in the forefront when it
comes to new techniques and environmentally friendly ships
and equipment.



Swede Ship Marin – three                           customers are principally the Swedish            The yard is also building five new train-
different shipyards                                Navy, Coast Guard, the Shipping Adminis-       ing ships for the Swedish Navy.
                                                   tration and the Swedish Sea Rescue Soci-
Swede Ship Marin, formerly Djupviks                ety.
Varv, on Tjörn has a more than 100-year               Swede Ship Composite is also capable of     Ö-Varvet – a dynamic shipyard
long history. The group consists of three          building ships up to 50 metres but only in     in the Göteborg archipelago
modern and highly specialized yards certi-         composite.                                     Since 2000 the Ö-Varvet has gone through
fied according to ISO 9001: Swede Ship                 Swede Ship Yachtservice is a repair and     major changes such as new dry dock capac-
Marin, Swede Ship Composite at Lökhol-             maintenance yard.                              ities, new piers, new workshops and the
men, close to Hunnebostrand, and Swede                The yard in Göteborg has a lifting capac-   depth in the harbour and along the ship-
Ship Yachtservice in Göteborg.                     ity of 200 tonnes over the slipway. The        yard quays has been increased to 6.5
                                                   water is 3.5 metres deep and ships up to 30    metres. The work has also been reorganised
SWEDEN                                             metres can be accepted.                        and is now environmentally certified
                                                      During the spring of 2007 a 24-metre        according to ISO 14001.
  Swede Ship Marin concentrates on pro-            work boat for a Danish energy company             Today, when the fourth generation of
duction of aluminium and steel and has a           and a 16-metre rescue ship for the Norwe-      the Backman family is in charge, Ö-Varvet
capacity to build 50-metre long ships. The         gian Sea Rescue will be delivered.             offers full service in a number of different

66                                                                                          SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
Ö-varvet in the archipelago of Göteborg is controlled by the fourth generation of the Backman family.                              ÖCKERÖ HAMN




areas like newbuilding, service and repairs.     important part of the activities at the yard.   The shipyard at Tjörn
Ships up to 900 tonnes and maximum               The requirements for modifications have
dimensions of 70 × 12 metres can be dry-         increased as the shipping companies often       Tjörnvarvet AB is situated in Rönnäng on
docked and marine equipment such as              choose to modify and rebuild rather than        the island of Tjörn in the archipelago
mooring and trawling winches are manu-           building new ships.                             north of Göteborg. The shipyard was
factured.                                           When it comes to newbuilding the yard        founded in 1977 and has two owners and
                                                 has an in-house design and construction         ten employees. More people are hired
The Hönö plant                                   department. The philosophy is to take full      when needed.
Modifications, engine refitting and dry            responsibility for the work from the idea to       In 1996 newbuilding recommenced and
docking take place at the site on Öckerö,        a complete ship. Since 1997 twelve vessels      until the present day the yard has built
while mechanical work, minor engine fit-          of sizes between 12 and 24 metres have          ships for Swedish, Norwegian and Irish
tings, production of mooring winches and         been built.                                     owners.
steel and aluminium designs are done at                                                             The newbuildings are mainly stern
the nearby Hönö plant.                           Major refit of Wilhelm Tham                      trawlers but also mooring boats, a research
   Some years ago the yard bought MITAB,         Larger modifications have been done              ship, a barge and a sailing yacht have been
a key dealer for Volvo Penta on the west         onboard the sailing ships Gunilla, HMS          produced.
coast of Sweden, and Marin In-West AB,           Falken and HMS Gladan. Several fishing              At the present time, March 2007, a 17 × 5
which is a specialist in marine electronics,     boats have been rebuilt, as have ships from     metre boat in aluminium is being built.
mainly nautical equipment.                       the Royal Swedish Navy and the Swedish
   However, the main part of the work            Coast Guard.
today consists of rebuilding and in the            In the autumn of 2006, the old passen-        Dockstavarvet – specializing
Hönö plant there are tailor made facilities      ger ship Wilhelm Tham docked for a major        in aluminium construction
for building cabins. As far as possible, full-   refit. Among other things the engine room        The family owned Dockstavarvet is special-
time personnel do all the repair work.           was cleared out and new engines and sub-        ized in aluminium ship construction.
   Large and small modifications are an           systems were installed.                         Today 40 people work at the yard, ten of

SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                             67
S H I P B U I L D I N G A N D S H I P R E PA I R




                                                                                                               DOCKSTAVARVET
                                                                                                                                  2006 was a very good year, in fact the
                                                                                                                               best since the renovating of the Viking
                                                                                                                               twelve years before. 102 ships were dry-
                                                                                                                               docked in the two floating docks and on
                                                                                                                               the slipway in 2006. The largest vessel was
                                                                                                                               the MS Total Impression X. Extensive steel-
                                                                                                                               work was done onboard during more than
                                                                                                                               13,000 hours. Vessels from the Swedish
                                                                                                                               Road Administration, Röda Bolaget and
                                                                                                                               the Swedish Maritime Administration, as
                                                                                                                               well as tankers, dry cargo ships and fishing
                                                                                                                               boats were docked last year.
                                                                                                                                  As the yard is familiar with the noble art
                                                                                                                               of riveting, work on veteran ships has
                                                                                                                               become a niche during latter years. Among
                                                                                                                               other old and distinguished ships the
                                                                                                                               steamer Bohuslän, the tugboat Herkules
During the last 30 years more than 40 pilot boats have been launched at Dockstavarvet.                                         and the Norweigan D/S Børøysund have
                                                                                                                               paid a visit to the yard in the centre of
whom are certified aluminium welders. Ten                         and several sub-contractors. Strömma                          Göteborg.
to 20 additional operators are used on a                         Kanal is a big customer and the yard has
regular basis. The most important is the                         built several pilot boats for England.
Docksta Elteknik AB, responsible for all                           The slip capacity is 100 tonnes and ships                   Landskrona Stål – old yard
electrical installations.                                        up to 37 × 7.1 metres can be dry-docked                       in a new version
   Since 1974 the yard has built more than                       indoors. The order books are filled for a                      Landskrona Stål took over the Far-
40 fast aluminium pilot launches for Swe-                        considerable time.                                            tygsmekano shipyard in Helsingborg in
den, Denmark, Turkey and the UK. The                                                                                           2005 and renewed the machine equipment.
first pilot boat was delivered in 1906.                                                                                            According to the owner, Allan Stern-
   Dockstavarvet has been appointed by                           Gotenius Varv – familiar                                      berg, Landskrona Stål has many strings to
the Swedish Defence Materiel Administra-                         with the noble art of riveting                                its bow and does all kinds of jobs on small-
tion (FMV) to build the fast assault craft                       Gotenius Varv AB is mainly occupied with                      er tonnage, like ferries, minor tankers, pas-
Combat Boat 90H for the Amphibious                               ship repair, service and lengthening. The                     senger ships, tug boats and barges. Electri-
Corps of the Royal Swedish Navy. 147                             floating dock makes it possible to dry-dock                    cal repairs and installations, as well as me-
units are in use in Sweden and more than                         ships as large as 2,000 tonnes.                               chanical and hull work, painting and sub-
80 ships have been exported to Norway,
                                                   BJÖRN ALDÉN




Greece, Mexico and Malaysia. Customers
in the US have also shown a great interest
in the Combat Boat 90H and a prototype
is being tested.
   The workshops have been extended and
modernized continuously and are fully
equipped with modern tools and machin-
ery suitable for aluminium boat construc-
tion. The yard has an in-house CAD office
and works to a QA system type ISO 9001.
   Among deliveries in 2007 are two 17-
metre pilot launches for Kystverket in Nor-
way and six 16-metre interceptor craft. Two
of them will be delivered to Russia and the
Polish Border Guard has ordered the
remaining four.


Boghammar Marin – building
pilot boats for England
Boghammar Marin at Lidingö is focused
on building passenger ships, pilot boats
etc. The shipyard is owned by Anders and                         Götheborg, the newly built replica of an 18th century Swedish East Inda Man, was served at
Ewy Boghammar and has nine employees                             Gotenius before the long voyage to China.


68                                                                                                        SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                    S H I P B U I L D I N G A N D S H I P R E PA I R
SÖREN STRIDSBERG




                                                                                                                   Landskrona Stål for repair work onboard.
                                                                                                                     The yard also equips floating houses for
                                                                                                                   the Danish company Water Living. The
                                                                                                                   hulls, in steel, are built in Latvia, the
                                                                                                                   accommodation comes from Ängelholm
                                                                                                                   and the floating homes are put together
                                                                                                                   and completed at the yard in Helsingborg.
                                                                                                                     In 2006 the dry dock was in use almost
                                                                                                                   300 days and the yard was fully booked –
                                                                                                                   and still is, until next summer.


                                                                                                                   Fridhems Varv – taking an even
                                                                                                                   flow of small passenger ships
                                                                                                                   Fridhems Varv is situated between Göte-
                                                                                                                   borg and Strömstad. The yard mainly
                                                                                               All types of
                                                                                                                   serves the ferries from Färjerederiet, the
                                                                                               work are
                                                                                               carried out at      Swedish Road Administration Ferry Opera-
                                                                                               Fridhems Varv       tions, but there is a well-established com-
                                                                                               in Lysekil.         petence within the company and all types
                                                                                                                   of work are done. External jobs on minor
                   contracting work are carried out. The limi-   required on ships in service, both in for-        passenger ships and cargo ships are carried
                   tation is the dry dock, which measures        eign ports and when vessels are under way.        out and the yard is a specialist in renovat-
                   112 × 16 metres. Eight men and one            The intension is to do fewer jobs outside         ing Aquamaster propellers.
                   woman are employed at the yard and when       the yard in the future and concentrate the           Fridhems Varv has two slipways; the
                   needed additional staff are hired.            business to the yard.                             largest is 50 metres long and 14 metres
                      Landskrona Stål also does all jobs            Nordö Link in Malmö frequently uses            wide. The eastern slipway is being rebuilt




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                                                                                                                    KÅLLANDSÖ VARV
                                                                                                                                                                since 1950 24 newbuildings have been
                                                                                                                                                                delivered.
                                                                                                                                                                   Most of the ships that are built at Kål-
                                                                                                                                                                landsö are tankers and today most of them
                                                                                                                                                                are used as bunker ships on the west coast.
                                                                                                                                                                The largest ship that has ever left the berth
                                                                                                                                                                was the Eken at 720 tonnes.
                                                                                                                                                                   In latter years, the yard has focused on
                                                                                                                                                                repairing fishing boats, passenger ships, dry
                                                                                                                                                                cargo ships and tankers. The yard has also
                                                                                                                                                                repaired vessels that have run aground in
                                                                                                                                                                Vänern. The management, consisting of
                                                                                                                                                                three brothers Jonsson, are planning to re-
                                                                                                                                                                establish Kållandsö as a newbuilding site.
                                                                                                                                                                   Other plans for the future are both to
                                                                                                                                                                deepen and broaden the dry dock and to
                                                                                                                                                                dredge the fairway so the yard has the
                                                                                                                                                                capacity to dry-dock Vänermax vessels.
In latter years the Kållandsö Shipyard has focused on repairwork.                                                                                                  Today the dry dock is 84 × 13 metres.

to make it possible to dock ships with a                            to the prices in Norway, shipowners in the
fixed keel.                                                          south of Norway have shown a great inter-                                                   Beckholmen – long-established
   After the winter storms that caused                              est in docking at the Fridhems Varv.                                                        in the centre of Stockholm
severe damage along the west coast and                                                                                                                          Beckholmens Dockförening is a section
destroyed the E6 motorway at Munkedal,                                                                                                                          within the Swedish Sailing Ship Associa-
three ferries in the daytime and two at                             Skillinge Marin – always                                                                    tion. The dock on Beckholmen in Stock-
night were continuosly transporting lorries                         with a full order book                                                                      holm is used for restoring old, traditional
by sea, as the road could not be used. Frid-                        The order books have been full since                                                        ships. It is 100 metres long, 10.7 metres
hems Varv was in charge of the service and                          Skillinge Marin was founded in 1989. At                                                     wide and the draught is 3.7 metres.
maintenance of the ferries and worked                               the beginning of 2005 Simrishamns Varv                                                         The customers themselves organize all
every night to keep the small fleet going.                           was bought and the old slipway was mod-                                                     the work, and they have a network of
   Under normal circumstances 44,000                                ernized, so ships of 1,000 tonnes can be                                                    craftsmen such as carpenters, sailmakers
trucks are transported on the ferries at                            dry-docked.                                                                                 and blacksmiths at their disposal.
Gullmarsleden every year. In January 2007                              The large slipway has capacity for ships                                                    A 100 metres long repair and fitting-out
alone more than 41,000 units used the                               as large as 60 × 11.5 × 5.5 metres or two 25-                                               quay can also be found on the premises.
alternative route.                                                  metre ships at the same time.                                                                                  r o b e rt h e r m a n s s o n
   During the spring the yard will change                              Fishing boats, workboats and barges
                                                                                                                                     BECKHOLMENS DOCKFÖRENING




engines, propellers and control equipment                           have occupied the slipways most of the
on a ferry. An even flow of small passenger                          time. Next summer two fishing boats from
ships – barges, tugboats and larger leisure                         Kaskö in Finland will be dry-docking for
cruisers – are docked at the yard.                                  the second time.
   As the prices in Sweden are competitive                             Skillinge Marin is one of three centres in
                                                                    Sweden for sales and service of Volvo Penta
                                                   SVEN JOHANSSON




                                                                    diesel engines and most of the time there is
                                                                    a ship at the yard having a Volvo diesel
                                                                    installed.
                                                                       A water-blasting machine with a pressure
                                                                    of 2,500 bars will be bought in the near
                                                                    future, giving the yard new facilities for
                                                                    blasting and painting. An agreement with
                                                                    International has been made and the yard
                                                                    will use mainly their paint.


                                                                    Kållandsö Varv – well situated
                                                                    in Lake Vänern
                                                                    Kållandsö Varv is very strategically situated
Skillinge Marin is constantly installing new                        on an island in Lake Vänern. For many                                                       Many beautiful ships have been seen at
Volvo diesel engines.                                               years newbuilding was the main issue and                                                    Beckholmen.


70                                                                                                            SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
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S H I P B U I L D I N G A N D S H I P R E PA I R




Falkvarv – successful




                                                                                                   FALKVARV
yard between
Göteborg
and Öresund
❯    Falkvarv is strategically well situated on
     the west coast of Sweden between
Göteborg, the largest port in the country,
                                                           The capacity was
and the fast growing Öresund region.                    considerably increased
   Falkvarv was founded in 1987 when
Falkenbergs Varv, which had been on the                  in 1997 when a new
site since 1946, went into liquidation.                floating dock was bought.
   Since the yard was reorganised it has
been very successful and a wide circle of
customers continually return. In recent            network of subcontractors and collabo-
years the annual turnover has been ap-             rators has been established, the yard is able
proximately 60 million SEK and the profit           to offer great capacity at very short notice.
four million.                                         In 2006 the Falkvarv saw a very positive
                                                   trend and 80 vessels were repaired at the
Positive trend                                     yard, of which 60 were dry-docked. Fur-
The capacity was considerably increased in         thermore, staff from the yard repaired
1997 when a new floating dock was bought            approximately 40 ships in other ports or
and seven years later yet another dock was         while at sea. Three totally demolished                     During 2006, 60 ships were dry-docked
added. Today the yard can dock ships up            main engines were repaired last year and a                 at falkvarv.
to 150 metres. The length of the quays is          couple of Epocast foundings were per-
250 metres and the draught is seven                formed.                                                      As the order intake is constantly increas-
metres.                                               At present there are six ships at the yard              ing, Falkvarv is looking for more staff.
  Falkvarv has 50 employees and as a huge          and 15 are expected in the near future.                                        r o b e rt h e r m a n s s o n




Öresundsvarvet will increase
their resources for the future
❯    Like the previous years, 2006 was a suc-
     cessful year for Öresundsvarvet with
many interesting projects.
                                                   auxiliary engines and on the piping system.
                                                      The icebreaker Oden was dry-docked in
                                                   October and prepared for the long voyage
                                                                                                                 The dry dock is used to the limit today
                                                                                                              and the plans for the future are to increase
                                                                                                              the capacity with one or two large floating
   Four of TT Line’s ferries were dry-             to the Antarctic.                                          docks.
docked and one of them, the Nils Holgers-                                                                        During the two first months of 2007 the
son, changed the starboard pod, with a             Dry dock used to the limit                                 Ada Gorthon and the Visby were dry-
weight of 110 tonnes.                              The yard also works with hydraulic sys-                    docked.
   Catalytic exhaust gas cleaning was              tems, ramps, propellers, rudders, steelwork,                  The Östanvik and the train ferries Trelle-
installed on the Aurora of Helsingborg and         painting, electrical installations and all                 borg and Skåne are among others in the
the Tycho Brahe. The heating elements in           kinds of service.                                          order book and the icebreaker Oden will
the exhaust gas boiler on the Birka Express           In 2006 the dry dock was used 270 days                  return.
were changed.                                      and parallel with the work in the dry dock                    Öresundsvarvet will increase their
   On the Finnish tanker the Crystal Emer-         steelwork on a number of barges has been                   resources to meet future demands.
ald, major work was done on the main and           carried out in the floating dock.                                               r o b e rt h e r m a n s s o n

72                                                                                           SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
S H I P B U I L D I N G A N D S H I P R E PA I R




Kockums – building
invisible vessels




A rare photo showing all five Corvettes in the Visby series at the same time at the yard in Karlskrona.                              PETER NILSSON

In the background is the 240 metres long production plant.




T
       oday the Karlskronavarvet, which               Kockums also operates a facility in          Countermeasures (MCM), Anti-Subma-
       was founded as early as in 1679, is         Malmö and 260 employees work at the             rine Warfare (ASW), surface combat,
       named Kockums and has for a cou-            Technology Department.                          marine surveillance and maritime protec-
ple of years been owned by ThyssenKrupp               In 2000 the newbuilding no. 454 was          tion to general maritime support.
Marine System in Germany. All produc-              launched and named the Visby. She has a
tion is concentrated to Karlskrona and the         full stealth capability and in August 2006      Busy year
work of the Technology Department is               the fifth and final vessel in the Visby-series    Kockums can look back at a very busy year.
focused primarily on surface ships and             was launched at a formal ceremony. The          Another major project currently in
mine-clearance concepts. The company               vessels are constructed of carbon fibre and      progress is the Landsort project: a midlife
has a unique high-tech expertise and is spe-       from the ship the crew can hear and see         upgrade and general refit of five Swedish
cialised in stealth technology. Approxi-           everything while remaining undetected           Navy MCMVs. The first vessel will be
mately 850 people work at the Karlskrona           themselves. The Visby class corvettes are       delivered to the Royal Swedish Navy in
plant.                                             designed to handle everything from Mine         2008.

74                                                                                          SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                 S H I P B U I L D I N G A N D S H I P R E PA I R




                                                                                                 PETER NILSSON
                                                sion (AIP) system has been developed by
     Over the next five years                    Kockums. The system makes it possible for
                                                conventional submarines to remain sub-
      we will need to achieve                   merged for long periods without having to
                                                surface in order to get fresh air.
       a ratio of 30 per cent                      For the Stirling propulsion, the compa-
     domestic and 70 per cent                   ny has a successful partnership with
                                                Kawasaki Heavy Industries in Japan. Dur-
      exports. This is a must.                  ing 2006 Kockums supplied engines for
                                                installation on Japanese submarines.
                                                   Kockums continues to invest in future
Kockums’ responsibilities also include the      technology in several development areas in
procurement of command and sonar sys-           an attempt to become a Marine System
tems.                                           Powerhouse for the Swedish Navy. Besides
  Other deliveries are the supply of two        the key areas of competence, such as
new hulls to the Royal Danish Navy. The         stealth technology, submarine technology
contract comprises the supply of six coast-     and mine clearance systems, the main
guard-vessel hulls in Fibreglass Reinforced     focus is in the fields of Modelling and Sim-
Plastic (FRP), complete with superstruc-        ulation and Netcentric Defence.
tures and installation of full propulsion
systems.                                        Five-year R&D partnership
  Two former Swedish submarines, which          Kockums and Blekinge University College
                                                                                                                 One of the ships for the Royal Danish Navy is
will be exported to Singapore, are to under-    (Blekinge Tekniska Högskola) have signed                         hanging in the shiplift. Kockums is
go a major refit and upgrade and they will       an LOI concerning a five-year R&D part-                           subcontractor and responsible for hull,
be modified for operation in tropical            nership that will focus on IT applications                       superstructure and the machine installation.
waters. The contract with the Republic of       in the field of naval defence.
Singapore Navy also includes a logistic            Five years ago, the company depended                          70 per cent exports. This is a must”, says
package and training of the crews.              on the Swedish Navy for 70 per cent of the                       Kjell Göthe, Vice-President/PR & Commu-
                                                sales while exports did not account for                          nications.
Air independent propulsion                      more than 30 per cent. Today, the ratio is                          The latest annual report noted orders
The submarines are designed in Malmö            50 per cent domestic sales and just as much                      received of 2.9 billion SEK. This brings the
and there is also the research and develop-     in exports.                                                      current order backlog to about 3.7 billion
ment department for underwater technolo-           “Over the next five years we will need to                      SEK.
gy. The Stirling Air Independent Propul-        achieve a ratio of 30 per cent domestic and                                           r o b e rt h e r m a n s s o n




Landskronavarvet –
with capacity for large ships
L
      andskronavarvet, formerly Bruces          cable-layer. The contract for the third ves-                     and a whole ship can be built in the
      Shipyard, is next-door neighbour to       sel, a seismic ship, will be signed during the                   300 × 55 metre hall.
      Öresundsvarvet in Landskrona.             first half of March.                                                 There are not many yards in the area that
   Due to a tremendous drop in the new-            The ships will have a material weight of                      can build such large ships as Landskrona-
building market in 2002, the yard went          approximately 3,000 tonnes each. The yard                        varvet. Most of the yards with similar
bankrupt. The production recommenced in         will also build the fundaments for the                           capacity want to deliver complete ships and
the spring of 2006, when the building of a      engines, pumps, winches etc and also lay                         not, like Landskronavarvet, be a sub-deliv-
supply ship for the Norwegian Company           the pipes in bottom tanks.                                       erer of hulls to other shipyards. The main
Voldstad began. The hull will be delivered                                                                       competitors are found in Russia, Romania
in mid-March 2007 and be equipped at Fos-       Built the World                                                  and China, while the newbuilding prices
en, in Norway, the owners of Landskrona-        The passenger ship World was built at the                        are constantly rising in Poland and the
varvet.                                         yard. She weighed 12,500 tonnes when she                         Baltic states.
   The supply ship is the first in a series of   left the yard to be equipped at Fosen.                              Today there is frantic activity at the yard
three vessels that have much in common          Landskronavarvet can build ships that are                        and the management are looking to the
but will be built for different purposes. The   255 metres long and 39 metres wide. The                          future with confidence.
second ship, to be delivered in August, is a    assembly shop is even larger than the berth                                           r o b e rt h e r m a n s s o n

SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                                   75
S H I P B U I L D I N G A N D S H I P R E PA I R




                                                                                                                                           LASSE VOURIO




Götaverken Cityvarvet
– a growing repair yard
G
         ötaverken Cityvarvet has a long           borgsbron and fitting into the dry dock,
         and interesting history and was           which is 240 meters long.                            The activities at the yard
         founded in 1841. A lot of well               In 2006 more than 90 ships, with a total
known ships have been built and repaired           deadweight of some one million ton, were            are growing continuously
at the yard that played a major role during        repaired and docked at the yard. As usual
the heydays of Swedish shipbuilding. Due           most of the vessel types were represented,
                                                                                                       and an increasing number
to continuing losses the yard was reorga-          though ro-ro ships, ferries and tankers were          of larger ships are dry-
nized in 1992 and the activities continued         in a majority. The largest ship in 2006 was
with reduced staff.                                the 95,195 DWT tanker Navion Fennia.                  docked at Cityvarvet.
                                                      Also the Stena Saga, Stena Scandinavica,
The bridge is the limit                            Stena Freighter and Stena Jutlandica were
In 2000, Götaverken Cityvarvet was                 docked during 2006. Extensive work was          dry-docking and rebuilding of the ferries
bought by the Dutch Damen Shipyard                 carried out on the Norwegian seismic ves-       Stena Nautica and Stena Germanica and
Group. During 2006 the number of                   sel Geo Atlantica. The Danish frigate Væd-      the rebuilding of the Norwegian paper car-
employees increased by almost ten per cent         deren was modified before and around its         rier Baltic Excellent. The Baltic Excellent
to 140. The activities at the yard are grow-       world expedition.                               will be converted into a seismic vessel and
ing continuously and an increasing num-               Extensive steelwork was also carried out     the work includes a new engine room with
ber of larger ships are dry-docked at City-        on the Greek Panamax bulk ship Velos, the       new generators, a new accommodation
varvet. Vessels up to 110,000 tonnes are           Norwegian offshore barge Ur 111 and on          deck and a new bow thruster. Almost 200
accepted at the yard. Larger ships will have       the ro-ro ships Tor Flandria and Tor Scandia.   tons of steel will be added to the hull.
difficulty in passing under the bridge Älvs-           Among the new orders for 2007 are the                             r o b e rt h e r m a n s s o n

76                                                                                           SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
fleet news
Editor: Pär-Henrik Sjöström ~ Phone: +358 2 242 62 50 ~ E-mail: par-henrik@shipgaz.com



Last Husum coaster leaves Danish flag
In the last days of February 2007, a chapter                      sands of thousands of standards of sawn




                                                                                                                   JENS LARSEN
in Danish coaster shipping was closed with                        timber from the Baltic and from Russian
the sale of the singledecker Othonia to an                        White Sea ports as well. Some has worked as
American buyer situated in Miramar, USA.                          fish carriers taking the catch from Norwe-
   The vessel changes to Fifita 500 alongside                     gian trawlers in the North of Bear Island
in Svendborg. It is a coincident that the                         and sailed it to Southern Norway.
name change took place in Svendborg, as                              Gradually the ships have been sold off in
Svendborg owners in the 1950’ies and                              the past years, leaving Othonia as the very
1960’ies were the primary Danish customers                        last one flying the Danish flag. Under its
at the shipyard in Husum for this type of                         new name, she will soon leave for the spe-                     The singledecker Othonia.
coasters. All told a number of 30 units were                      cial trade from Miami River to the Islands
delivered to Danish owners or purchased                           in the Caribbean area. On the Miami River                      ordered by shipowner Johannes K. Sørensen
second-hand from German owners. Not all                           trade Othonia will join several of her sisters                 of Odense and named Fionia, a name it kept
alike, as they were offered in a 299 GT, a 399                    from Husum and Danish ownership.                               until 1977, when was changed to Othonia.
GT and a 499 GT version. The type turned                             Othonia was delivered in 1965 as hull no.                   The coaster is fitted with a MaK-engine and
out to be successful and made a lot of mon-                       1228 from the shipyard owned by Gebrü-                         is on 680 DWT and 51.8 metres.
ey for the owners. They have taken thou-                          derne Kröger on November 18, 1965. It was                                                bent mikkelsen



Tug enters its fourth Nordic ownership
Danish pusher-tug operator Britannia Bulk                         Panamian flag with the name Vornaes II.                        ing the entire SvitzerWijsmuller fleet of
DK A/S has purchased the tug Baus from                            By joining the Danish owned fleet of push-                     bulkbarges. Since then a former SvitzerWi-
Finnish Alfons Håkans and placed it under                         er-tugs, Baus has been flying all the Nordic                   jsmuller barge has been purchased from
                                                                  colours during its 37 years of service. Built                  Alfons Håkans and renamed Iholm II and
                                                 BENT MIKKELSEN




                                                                  in 1970 for Norwegian account, since sold                      that addition needed another pusher tug
                                                                  to Sweden and renamed Hans Oskar,                              for operation even that the barge presently
                                                                  shortly after that sold to Russia and                          is used for an salvage operation off
                                                                  renamed Hans Oscar. Then back to the                           Ventspils.
                                                                  Norwegian flag and from 1997 under                                The tug Vornaes II was built by
                                                                  Finnish flag. First as Rauma IV and from                       P. Høivolds Mek. Verksted at Kristians-
                                                                  1999 under its original name Baus.                             sand S in 1970 (as hull no. 44) for Bukser &
                                                                                                                                 Berging. However in these days the 32 tons
                                                                  Pusher tug                                                     bollard pull tug was operated international-
                                                                  Under the Danish ownership it will be                          ly for the B&B-company. The Swedish
                                                                  rebuilt to be a pusher tug to serve the bulk-                  Piteå Bogserbåts found it too big for Baltic
                                                                  barges, which is the backbone of Britannia                     operation and sold it to Russia.
Vornaes II (ex Baus).                                             Bulk DK’s fleet. They started by purchas-                                               bent mikkelsen



                                                                           ADVOKATFIRMAN
                                         MORSSING & NYCANDER
                                                                                   Est. 1880

                          MARITIME LAW • LOGISTICS & MULTIMODAL • MARINE INSURANCE
                           ADMIRALTY & CASUALTY • PURCHASE & SALE • SHIP FINANCING

                Box 3299, 103 66, STOCKHOLM, Sweden, Tel: +46 8 58705100 (24-hour service), E-mail: info@mna.se, Fax: +46 8 58705120

                                                                       www.morssingnycander.se

78                                                                                                           SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
Newbuildings
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vices AB. The newbuilding
TransAnund entered service
in February and the sister ves-
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                                  taken on double tow by
                                  ITC’s 8,440 bhp tug Sumatras
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                                                                                               E-mail:              cat.marine.se@pon-cat.com




                                                                                                                      Pon Power A/S
                                                                                                          Tagenevägen 25, SE-425 37 Hisings Kärra
                                                                                                             Tlf: 031- 606490 / Fax: 031- 606491
                                                                                                                       www.pon-cat.com
TransAnund in the port of Oulu on her first voyage on charter
to Transatlantic.


SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                      79
technical news
Editor: Robert Hermansson ~ Phone: +46 40 15 61 44 ~ E-mail: robert@shipgaz.com



Online search                                    New monitoring system
engine for shipping
An online search engine for the global
                                                 to detect high levels
shipping industry further improves the
ability of all marine buyers and suppliers to
                                                 of oil mist
do business efficiently.
  ShipServ has recently introduced Ship-         The new QMI Triplex monitoring sys-
Serv Pages, an online search engine for the      tem is meeting the need for oil
shipping industry. The search engine             mist monitoring in areas where
makes immediate online search and listing        only one, two or three detec-
access available to the 10,000 shipping          tors are required.
companies and more than 30,000 marine               The QMI atmo-
suppliers operating in the global ship sup-      speric oil mist sys-
ply market.                                      tems identify a
                                                 hazardous build-
User friendly                                    up of oil mist in
ShipServ Pages enables all marine buyers to      confined      zones
search for and qualify suppliers using a         such as purifier
wide variety of criteria on as narrow or as      rooms, generator
wide a basis as required.                        rooms, hydraulic                                                   The QMI atmosperic
   Suppliers are provided with a highly          chambers, shaft bearing                                            oil mist systems
effective tool to market and advertise their     tunnels and main engine                                            identify a hazardous
services in an interactive manner. Fully         rooms, as recommended by IMO                                       build-up of oil mist in
                                                                                                                    confined zones.
integrated to ShipServ’s TradeNet and very       1086. The oil mist concentration in
user friendly, the search engine provides        the air is reported back to the monitor and
shipowners and their suppliers with further      gives an advanced warning of dangerous         detection monitoring system was first
improved management and marketing                conditions in order to prevent the out-        recognised when the maritime industry
tools.                                           break of fires.                                acknowledged that up to 65 per cent of
                                                    The detectors incorporate a small fan to    fires at sea were the result of oil mist leaks
Free listing                                     ensure a stream of air through the sensing     from areas where lubricating, fuel or
All suppliers receive a free listing in          system and are sited in the airflow, usually   hydraulic oils were under pressure. The
ShipServ Pages and will then be able to          above the equipment being monitored.           sources of ignition can be many including
manage how their company appears in              Detectors can be placed more than 100          exhaust gas pipes, turbochargers, non
response to buyers search criteria.              metres from the monitor. All detectors are     flame-proof motors and static electricity.
   ShipServ Pages is more than just an           calibrated and interchangeable and have a      To be on the safe side, an oil mist detection
online directory. The combination of tools       user friendly working instruction on the       system should be installed that will detect
for search and transaction integrate             face plate.                                    oil mist as it is being spread into the atmos-
ShipServ Pages with the largest and fastest         The need for an atmospheric oil mist        phere and alarm long before it reaches a
growing e-commerce platform in shipping,                                                        dangerous level.
ShipServ TradeNet. In 2006 a transaction                                                           The QMI Multiplex system was original-
volume of 700 million USD is expected to                                                        ly developed in the early eighties to warn
be carried out on TradeNet. In 2005 there                                                       of avoidable engine damage and fires.
was a 266 per cent increase in the number                                                          The monitor measures 280 × 230 × 138
of transactions made via TradeNet com-                                                          millimetres and the weight is 5.2 kg. The
pared to the year before.                                                                       detector is 359 × 113 × 73 millimeters, in-
   Today shipowners representing 1,700                                                          cluding fixing, and weighs 2.3 kg.
vessels are doing 15,000,000 transactions                                                       For more information, please contact:
annually with more than 5,000 suppliers.                                                        Brian Smith, Tel: 044 (0)20 7328 3121
                                                                                                e-mail: qmi@oilmist.com
For more information please contact:                                                            www.oilmist.com
Lone Jensen, Tel. +45 33 41 10 70                                                               Or: Thomas Björner, TB Konsult
ljensen@shipserv.com                                                                            Tel: 0707 36 15 35
www.shipserv.com                                                                                tbkonsult@comhem.se


80                                                                                        SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                    Marine air system




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This support is available to you, wherever you operate,
through our global network of Atlas Copco sales companies
and distributors.
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                                                               and different technologies to best suite your specific application
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www.atlascopco.com
Fax: +47 64 860 239

kjell.hognes@be.atlascopco.com
Mobile: +47 922 67 127
finANCE & INSURANCE
Editor: Petter Arentz ~ Phone +47 33 40 12 00 ~ E-mail: petter@shipgaz.com


RS Platou on the move
RS Platou, the big Norwegian ship broking
firm, obviously has ambitions beyond rais-
ing equity finance for limited partnerships
and syndicating shipping projects. When
RS Platou set up RS Platou Finans in 2004,
one of the stated objectives was to identify
interesting investment opportunities. This
month RS Platou announced it has a 5.13
per cent stake in London based ACM
Shipping.
   Analysts term the investment as a move
into the tanker chartering market. But, by
all accounts, Platou is seriously looking to
access and benefit from more financial
instruments to strengthen their entry into
the IPO - initial public offering – market.         Container vessel Hyundai Fortune, 5,500 TEUs and 64,000 GT, is seen here burning fiercely
They have already participated in some              in the Gulf of Aden off Yemen, in March last year. After suffering this catastrophic fire
                                                    she was subsequently declared a total loss.
IPOs by drilling companies. Platou and
ACM Shipping, which is also strong in
freight derivatives, have worked together
on several deals. Perhaps the most impor-
                                                  Strong increase in partial losses
tant basis for future cooperation is that the     International Union of Marine Insurance           strong upward trend since 1998 when 228
companies’ client base does not overlap.          (IUMI) has announced a dramatic reduc-            serious incidents were reported. Last year,
                                                  tion in the number of total losses of mer-        685 were logged and, like total losses, this
                                                  chant ships since the year 2000. New statis-      figure is likely to increase during the early
Demand for KG shipping funds                      tics indicate that 67 ships (of 500 gross tons    months of 2007
German HSH Nordbank are a bit cautious            and over) were total losses in 2006, com-
about the demand any further growth in            pared to 140 in 2000 and a peak of 182            Rising partial losses
the market for KG shipping funds. How-            during the 1990s.                                 Explaining why partial losses have risen so
ever, the strong demand for ship finance             However, this news is heavily diluted by       strongly, Simon Beale, a leading Lloyd’s
generally means that institutional investors      an equally dramatic increase in serious par-      marine underwriter who is a member of
are quite active.                                 tial losses, up by 200 per cent since 1998.       IUMI’s executive committee and a past
   The market for new funds has been              IUMI stresses these are preliminary figures       chairman of its ocean hull committee, said
around EUR 2,5 billion per year, but it is        for 2006 as both total and partial losses or      that “the highly profitable levels of mar-
unlikely the volume will go any higher in         constructive total losses can rise in the ear-    itime trade has meant ships and crews
2007. Nordbank was involved in setting up         ly months of this year. The 2006 losses           being driven very hard. In fact, the IUMI
he Marenave, the first stock-listed shipping      equate to approximately 0.1 per cent of the       statistics show that machinery continues to
investment vehicle in Germany. König &            world fleet, compared to 0.3 per cent in          be the major cause of serious partial losses
Cie launched the fund in 2006.                    1996 and nearly 0.5 per cent in 1990. There       (35 per cent in the past five years), followed
                                                  was a slight increase in actual tonnage lost      by groundings, and collision or contact
                                                  in 2006, particularly in the bulk carrier sec-    damage. IUMI states:
Shipping index                                    tor, but this is largely explained by the total      “This 200 per cent-plus increase in partial
below benchmark                                   loss of a capesize bulker accounting for 37       losses compares with an increase of 24 per
The Lloyd’s List-Bloomberg index – LLB-50         per cent of the total gross tonnage.              cent in the number represented by the com-
– for the top 50 global shipping shares fell                                                        bined tanker, bulk carrier and container fleet,
below the 2,000 barrier early this month,         First IUMI statistics                             a 27 per cent increase in the deadweight ton-
but some companies like Frontline and             They are the first statistics of their kind to    nage (carrying capacity) of the bulk carrier
Teekay Shipping bucked the trend. LLB-50          be produced by IUMI as a basis for under-         and tanker fleet, and a 115 per cent increase
has since recovered some of the lost              writing decisions. However, there is a            in the TEU (standard carrying capacity) of
ground, but remains below the peak before         downside to these statistics, said Deirdre        the container fleet – all since 1998.”
the general stock market downturn. Among          Littlefield, the New York-based president of         The world container fleet’s capacity has
the other companies in the index are              IUMI. While total losses are down, serious        more than doubled to over 8,000 million
Finnlines and Golar LNG.                          partial losses continue to rise, showing a        TEU since 1998, says IUMI.

82                                                                                            SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
it & communications
Editor: Petter Arentz ~ Phone +47 33 40 12 00 ~ E-mail: petter@shipgaz.com



Essential float free capsules                                                                   Kongsberg simulation
                                                                                                in LNG project
Nobody wishes for accidents to happen,            S-VDR information available                   Kongsberg Maritime’s process simulation
but when they do occur it is adamant that         even if the vessel should sink.               group (including former Fantoft Process
help is summoned immediately. On                  No need for expensive and                     Technologies) and Taike Engineering Beijing
December 6th 2006, the Dutch semi sub-            time consuming under water                    Co. Ltd (part of Essca Group) have been
mersible vessel Mighty Servant 3 sank off         search as required for a fixed                contracted to supply the Operator Training
the coast of Angola. The complete crew            capsule. The Tron S-VDR                       Simulator and Gas Management System
were taken off the vessel and taken to the        CAPSULE will duplicate                        (PMS) for the Fujian LNG project, located
Port of Luanda on board one of the sup-           all on board S-VDR                            in China. The delivery to China National
porting vessels, which was on stand by dur-       recorded and stored                           Offshore Oil Company (CNOOC) includes
ing the offloading of a drilling platform.        information. It can be                        an operator training simulator, pipeline leak
The Mighty Servant 3 was equipped with            connected to all exist-                       detection system and gas management sys-
an S-VDR system and a TRON S-VDR                  ing VDR systems on                            tem. An integrated team with engineers from
Float Free Capsule from Norwegian Jotron          the market. The                               Kongsberg and Taike Engineering Beijing
as the final storage medium. Jotron is based      Tron S-VDR CAP-                               Co. Ltd will execute the project.
a Tjodalyng near Larvik in Southern Nor-          SULE is a necessi-
way. A report from FMCC, in Toulouse,             ty, even as optional
confirms that distress signals were received      equipment according                           Secure networking technology
from the Tron S-VDR Capsule just minutes          to the IMO resolu-                            Telenor Satellite Services, a subsidiary of
after the accident.                               tion A.861 (20), due                          Norwegian Telenor, has previewed Terralink
                                                  to the possibility to                         Secure (TM), the first in a series of secure
The capsule                                       avoid high cost for                           networking value added services to enable
This multipurpose float free maritime safety      under water search.                           users to more effectively monitor and filter
product contains both a conventional              As noted above, the                           security attacks and unwanted Internet con-
GMDSS satellite position-indicating radio         Capsule contained                             tent over satellite communications. Telenor
beacon with integrated GPS, EPIRB and             more than twelve                              currently anticipates commercial launch of
also a storage media for S-VDR (Simplified        hours of readable                             this new secure service during the second
Voyage Data Recorder). MED B approved             data including the critical seconds           quarter of 2007. Terralink Secure is designed
by DNV. Tron S-VDR CAPSULE will at all            before the ship went under the ocean sur-     to stop unwanted traffic and content com-
times have in store a loop of the latest twelve   face. All input-sensors from the S-VDR sys-   ing from the Internet to a user's satellite ter-
hours recorded data provided from the S-          tem were loaded into the TRON S-VDR           minal before the content enters the satellite
VDR system installed on board the vessel.         Capsule and were accessible for both the      portion of the end-to-end connection. Ter-
   Floating at the water surface keeping the      Investigators and Ship-Owner.                 ralink Secure differs from client-installed
                                                                                                firewalls and security programs running on

ShipNet/MTS extend co-operation                                                                 the user's PC, which can stop unwanted
                                                                                                traffic after it has passed over the satellite
Norwegian companies ShipNet and                   MTS (jointly owned by Alfa Laval,             portion of the connection.
Marine Transaction Services (MTS) will            Capgemini, Hellmann Worldwide Logis-
joinly offer very advanced e-business solu-       tics, Jotun and Unitor) and ShipNet will
tions, by further developing the existing         ensure that customers can automate their      Navmaster Pilot launched
integration of their systems. MTS and             procurement process with their suppliers,     UK based PC Maritime has introduced the
ShipNet’s co-operation goes back to 2003,         obtain improved overview and control of       Navmaster Pilot – a simple-to-use portable
when the first integration between Ship-          all transactions processed with the suppli-   electronic chart system based on Type
Net’s procurement system SNAPS and                ers and achieve much improved data            Approved Navmaster ECDIS software
MTS’ e-business solution for ship owners          quality.                                      with additional features to assist pilots.
and managers, BuyerLink, was made. The               ShipNet will include the MTS function-     Navmaster Pilot provides software and
capabilities in this integration will be fur-     ality as a standard add-on feature in Ship-   wireless interfacing so that a pilot can con-
ther developed, meaning that joint cus-           Net, which is configurable for the cus-       nect his own laptop to a ship’s AIS (Auto-
tomers of MTS and ShipNet will benefit            tomers. The advanced offering will be         matic Indentification System) within min-
from advanced e-business capabilities             available without any barriers in form of     utes of arriving onboard a vessel. There is
when trading with suppliers from their            extra costs for the customers for using the   no need for cables as communications
SNAPS procurement system.                         MTS compliant e-business capabilities in      between the laptop and the ship’s AIS pilot
   The advanced integration between               the SNAPS system.                             plug are wireless.

SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                               83
                 NEWS REVIEW
ANDERS RYDBERG




                                                               Fuel cell supply vessels by 2012
                                                               ssg-tønsberg. Ships using fuel cells should     this vessel is nil and CO2 emissions will be
                                                               be operational in Norway by 2012, accord-       cut by 50 per cent. Eidesvik Offshore is cur-
                                                               ing to Jan Fredrik Meling, managing director    rently developing a fuel cell supply vessel,
                                                               of Eidesvik Offshore. Eidesvik has invested     and Meling believes that the Norwegian gov-
                 The Kapitonas A. Lucka.                       in three LNG driven, Avant type supply ves-     ernment should use the majority of the pro-
                                                               sels, the first of which was delivered in the   ceeds from the new NOx tax for investment
                 LJL BUYS BULK CARRIERS Lithuanian             autumn of 2003. The fuel cells will also be     in environmentally friendly vessels, not only
                 Shipping Company (LJL) has bought             fed by LNG, but the NOx emissions from          to line the state coffers.
                 the bulk carriers Clipper Falcon and
                 Clipper Eagle, both 16,900 DWT, from
                 Norwegian Eagle Shipping. The vessels
                 were built in 1995 and 1994, respective-
                                                               Crude output paves the way for B-MAX
                 ly. LJL recently sold its dry-cargo carrier   ssg-göteborg. The new pipeline, which           depreciation. The company is now expect-
                 Kapitonas Simkus and her sister, the          will increase the output of Russian crude       ing tougher times ahead.
                 Kapitonas A. Lucka, will be sold at an        via Primorsk considerably, has also brought        “I’m a bit worried about the massive
                 auction on March 12.                          Stena’s B-MAX project to the fore.              deliveries of new tankers from the yards”,
                                                                  “We are in talks with Sovcomflot to          says Ulf G. Ryder.
                 SLOW HANDLING OF TONNAGE TAX                  continue with the development of the B-            For 2007, the company is expecting a
                 The Swedish Parliament’s Committee            MAX tanker”, says Ulf G. Ryder, CEO of          profit of around SEK 250 million (EUR 27
                 on Taxation has run out of patience           Stena Bulk. With B for Baltic and Bospho-       million). The year has, however, started on a
                 with the Government’s slow handling           rus, the B-MAX is an extremely wide             positive note. Operations in January gener-
                 of the tonnage tax issue. The tonnage         tanker with a shallow draft, able to carry      ated a surplus of SEK 40 million (EUR 4.3
                 tax commission of inquiry submitted its       over 200,000 tons of crude from Primorsk        million). Today, Stena Bulk has no vessels in
                 proposal to the government more than          through the Great Belt in Denmark on a          its order book. Its listed sister company
                 a year ago. The committee now propos-         15 metres draft.                                Concordia Maritime has, however, half a
                 es that the Parliament urge the Govern-          2006 was another good year for Stena         dozen vessels on order. Long-term charter
                 ment to speed up its procedures and to        Bulk. The company reports a profit of SEK       agreements have been secured for the first
                 present a bill as soon as possible.           1 billion (EUR 107 million) despite extra       two vessels, to be delivered in 2007–2008.

                 TOO EXPENSIVE FOR STENA Stena
                 Line thinks that the port dues in Dun
                 Laoghaire, on Ireland, are too high and
                                                               UN to discuss Russian terminal project
                 wants either to have the dues reduced         ssg-tallinn. Regnum.ru reports that the         says that the residents of Svetly have
                 or to move to Dublin when the con-            UN Commission on Human Rights will              appealed to 22 different authorities and
                 tract with Dun Laoghaire expires in           discuss the construction of an oil terminal     taken legal action ten times in the last three
                 2011. “It’s about four times as expen-        in Svetly in the Kaliningrad region. The        years, but have failed to put a stop to the
                 sive in Dun Laoghaire as in Dublin,           Russian oil company Tatneft’s subsidiary        plans.
                 and since both the ports are state-           Baltnafta is planning to build an oil termi-       The oil terminal will have a capacity of
                 owned, we think that’s peculiar”, says        nal in Kaliningrad’s free zone but has met      900,000 tons per year and its planned loca-
                 Joakim Kenndal, head of corporate             with opposition from the residents of Svet-     tion is close to a residential housing area.
                 communications at Stena Line. The             ly, who have appealed to the UN.                Svetly (formerly Zimmerbude) lies between
                 HSS ferry Stena Explorer is operated in          The environmental organisation Bellona       Kaliningrad and Baltiysk.
                 the service, which, according to the
                 newspaper Irish Independent, adds
                 EUR 250 million to the Irish economy
                 every year.
                                                               Norwegian order book at NOK 60 billion
                                                               ssg-tønsberg. Order books at Norwegian          tion/construction vessels at a price of more
                 MACGREGOR IN JOINT VENTURES The               shipyards reached an all-time high of NOK       than NOK 1.0 billion each. The vessels are
                 MacGregor Group and the Tallinn-              60 billion in early March after having          likely to be built by Søviknes Verft. DOF
                 based BLRT Grupp AS have estab-               reached NOK 57.3 billion at the end of          Installer has also ordered two Anchor Han-
                 lished the joint venture OÜ MacGre-           January, according to statistics released by    dling Tug Supply/Construction vessels at
                 gor BLRT Baltic to provide service of         Norske Skipsverft in Bergen and Norsk           NOK 750 million each at Aker Aukra.
                 marine cargo access equipment in the          Industri.                                       Through January, ships worth around
                 Baltic area. This will begin in Tallinn          The figure of NOK 60 billion was             NOK 2.5 billion were delivered. During
                 after approval by the competition             reached when Aker Oilfield Services             the last yard boom in 2001, the order book
                 authority.                                    ordered four combined well interven-            peaked at NOK 33 billion.

                 84                                                                                      SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                          NEWS REVIEW



Eckerö bids for Birka Line
ssg-åbo. Ferry owner Rederiaktiebolaget               The offer sets a value of EUR 216 mil-
Eckerö has made a bid for all the outstand-        lion on Birka Line, including its net inter-
ing shares in Birka Line Abp. Eckerö cur-          est-bearing liability of about EUR 85 mil-
rently holds a 42 per cent stake in the listed     lion. The bidding process is planned to
cruise and ro-ro operator. The bid is valued       start on March 10 with April 20 as the
at EUR 77 million and the price offered for        deadline. The aim is “to create a larger
the two shares (A shares and B shares) is          Alandic shipowning player to meet chal-          Eukor orders four car carriers.
said to be 23 per cent and 29 per cent             lenges and demands on the market.” Eck-
respectively above the three-month average         erö is looking to acquire all the remaining      EUKOR ORDERS CAR CARRIERS South
on the Helsinki stock exchange.                    shares and to de-list Birka Line.                Korean car carrier owner/operator
                                                                                                    Eukor – controlled by Wallenius Line
                                                                                                    (40 per cent) and Wilhelmsen Lines (40
Most of Russian fleet under foreign flags                                                           per cent) – has ordered four 8,100 car
                                                                                                    PCTC:s (Pure Car and Truck Carrier)
ssg-tallinn. According to the Russian              but 60 per cent of the tonnage. Last year,       from Hyundai Heavy Industries (HHI)
Ministry of Transport, the Russian mer-            28 new ships totalling 1.4 million tons          in South Korea with delivery in 2010.
chant fleet consists of 1,536 ships totalling      were completed and this year, 18 new ships       The vessels will be 232 meters long,
15.3 million DWT. 1,380 vessels totalling 6        totalling 1.5 million DWT will join the          making them the largest car carriers in
million DWT sail under the Russian flag –          fleet.                                           the world.
90 per cent of the ships but only 40 per              These figures give Russia a 13th place
cent of the tonnage.                               among the world’s shipping nations. In its       SSN FACING FINANCIAL CRISIS The
  98 vessels with owners in tax havens and         first year, 136 ships totalling 0.5 million      SSN shipyard in Szczecin, Poland, is
50 of Sovcomflot’s vessels are registered to       DWT were registered in the new interna-          facing an acute financial crisis. If the
foreign flags, i.e. 10 per cent of the vessels     tional register.                                 yard’s management is unable to secure
                                                                                                    credits for the day-to-day financing of
                                                                                                    production, the shipyard could come

Debt-burdened Gdynia Shipyard                                                                       to a halt. The yard’s management has
                                                                                                    been negotiating for credits with banks
still trying to find a buyer                                                                        in Warsaw since March 2. The shipyard
                                                                                                    did not pay any social security contri-
ssg-kolobrzeg. Despite Gdynia Shipyard’s           has already bought five per cent of the shares   butions for its employees in January.
difficult situation, ISD, a Polish subsidiary of   in Gdansk Shipyard. The purchase of yards
the Ukrainian Donbas group, still appears to       in Gdansk and Gdynia would secure sales          24 KILOS OF COCAINE FOUND During
be interested in buying the shipyard’s shares      for some or Donbas’ steelworks, including        an inspection of the vessel San Emeral
and Donbas’s representatives are currently in      Czestochowa. According to current plans,         in St Petersburg, the Russian customs
negotiations with the ministry of privatisa-       Gdynia Shipyard will be privatised by the        found 24 kilos of cocaine. The vessel
tion in Warsaw. Donbas has made its own            end of June, this year.                          had arrived from Ecuador and the
estimate of the size of the shipyard’s debt           It is conceivable that Rami Ungar – the       cocaine was found in the belongings of
burden, which is said to be larger than indi-      Israeli shipowner who has order a long           a crew member.
cated by official Polish sources. They claim       series of car carriers – will submit an offi-
that the shipyard has debts of around PLN          cial offer for the yard even though he has       A GOOD YEAR FOR DFDS DFDS
515 million while Donbas says that they            publicly expressed his dissatisfaction with      Group had another nice year in 2006.
could be as high as PLN 1.2 billion. Donbas        the way the Poles negotiate.                     Its profit was up by 74 per cent and
                                                                                                    turnover increased 20 percent. It is still
                                                                                                    DFDS Tor Line that generates the high-
Grimaldi ro-ro capsized at berth                                                                    est profit in the group. DFDS Tor Line
                                                                                                    provides 3/4 of the turnover. Growth
ssg-göteborg. On Thursday morning,                 The list increased, and the vessel is now        by purchase of competitors is part of
one of Grimaldi’s ro-ro vessels capsized           lying on its starboard side on the bottom        the plan for the future.
during loading in Antwerp. The accident            close to the berth in the Verrebroek dock.          In 2006, the net turnover landed at
occurred at 05.30 and started with a 20-           About 300 cars and containers are said to        DKK 7.5 billion with DKK 5.7 billion
degree list to starboard, towards the quay-        have been on board the vessel. No oil spills     from DFDS Tor Line and DKK 1.8 bil-
side. The crew, consisting of Italian and          have been detected. The cause is not yet         lion from DFDS Seaways. The operating
Rumanian citizens, and the passengers              known. The 42,567 GT Repubblica di Gen-          profit was DKK 1.1 billion, of which
were safely evacuated. All in all, there were      ova was built in 1988 in Italy. It is classed    DFDS Tor Line contributed with DKK
34 persons on the Repubblica di Genova.            by Rina and P&I insured by Gard.                 937 million.

SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                             85
M A R K E T R E P O RT S



Newbuilding contracts in the Nordic market
Month     Owner                          Nat           Size       Type                Shipyard               Delivery     Value                        Remarks
Feb       AS Prestfjord                  No            65.4 m     trawler             Solstrand              10.09        NOK 200 m
          Aries Offshore                 Gr              3,500    supply              Myklebust Verft        10.08        NOK 187.5 m                 VS 470-2
          A P Møller Maersk              Den          20,000*     pctc                Xiamen SB              10                                      4,900 cars
          A P Møller Maersk              Den          20,000*     pctc                Xiamen SB              10                                      4,900 cars
          A P Møller Maersk              Den          20,000*     pctc                Xiamen SB              10                                      4,900 cars
          A P Møller Maersk              Den          20,000*     pctc                Xiamen SB              11                                      4,900 cars
          ProdJack                       No                       jack-up             Keppel-Fels            10           USD 381 m
          Remøy Management               No              93 m     coastguard          Myklebust Verft        3.09         NOK 285 m                 VS794CGV,
          Østensjø                       No              37 m     tug                 Sanmar Denizcilik      7.08
          Cecon                          No             130 m     offshore            Davie Quebec           4.09         USD 132.5 m               VS4220OCV
          Cecon                          No             130 m     offshore            Davie Quebec           09           USD 132.5 m               VS4220OCV
          JCE Group                      Sw                       crane semi-sub      Yantai Raffles         end 08       USD 150 m
          JCE Group                      Sw                       crane semi-sub      Yantai Raffles         beg 09       USD 150 m
          Odfjell Invest                 No                       semisub drilling    Daewoo                 6.10         USD 645 m
          Knutsen OAS Shipping           No          173,000c     LNG                 Daewoo                 6.10
          O H Meling                     No             5,000     supply              Turkey/Eidsvik         end 08       NOK 300 m
          Lorentzen Skibs                No            13,000     tanker              Jinse Heavy Ind        5.08         USD 22.3 m                     IMO II
          Lorentzen Skibs                No            13,000     tanker              Jinse Heavy Ind        7.08         USD 22.3 m                     IMO II
          Lorentzen Skibs                No            13,000     tanker              Jinse Heavy Ind        9.08         USD 22.3 m                     IMO II
          Lorentzen Skibs                No            13,000     tanker              Jinse Heavy Ind        11.08        USD 22.3 m                     IMO II
          Lorentzen Skibs                No            13,000     tanker              Jinse Heavy Ind        1.09         USD 22.3 m                     IMO II
          Eidesvik                       No             162 m     offshore            Westcon                10           NOK 1.2 bn
          Volstad Maritime               No             5,000     mpsv                Fosen MV               12.08                                      ST-256L
          Ålands Landskapsstyrelse       Fin           65.3 m     ferry               BLRT                   11.08        EUR 12.5 m                     62 cars
          DSD Shipping                   No           104,880     tanker              Sumitomo               4.10         USD 60 m
March     Aker Oilfield Services         No             153 m     offshore            Aker Yards             4.10         NOK 1 bn                Aker OSCV06
          Aker Oilfield Services         No             153 m     offshore            Aker Yards             11.10        NOK 1 bn
          Aker Oilfield Services         No             153 m     offshore            Aker Yards             4.11         NOK 1 bn
          Aker Oilfield Services         No             153 m     offshore            Aker Yards             11.11        NOK 1 bn
          DOF Installer                  No                       contr               Aker Yards             12.09        NOK 800 m               Aker AH04CD
          DOF Installer                  No                       contr               Aker Yards             5.10         NOK 800 m               Aker AH04CD
          DS Norden                      Den           31,800     bulk                Jiangmen               09
          DS Norden                      Den           31,800     bulk                Jiangmen               09
          Eukor                          Intl           232 m     pctc                Hyundai                10                                      8,100 cars
          Eukor                          Intl           232 m     pctc                Hyundai                10                                      8,100 cars
          Eukor                          Intl           232 m     pctc                Hyundai                10                                      8,100 cars
          Eukor                          Intl           232 m     pctc                Hyundai                10                                      8,100 cars
          Boa Offshore                   No            5,000*     seismic             Fosen MV               12.08        NOK 350m+                    MT6009




Secondhand transactions in the Nordic market
Month     Name                          DWT          Built   Type         From                            Price          Buyer                 Remarks/New name
Feb       Lion                        48,000         1985    tanker       AMA Capital Prtn, US            USD 11 m       Champion Tankers, Bergen
          Acer                         1,890         1985    dry cargo    Oblix Shipping, Cardiff                        Hav Shipping, Bergen
          Scotsman Sea                 2,901         1982    supply       Secunda Marine, Canada          USD 8.2 m      Sartor Sh, Bergen
          Active Girl                  3,230         1985    supply       Ugelstad Rederi, Oslo           NOK 73 0m      Aries Maritime, London
          Active Lord                  2,253         1984    supply       Ugelstad Rederi, Oslo           en bloc        Aries Maritime, London
          De Vries Tide                3,350         2002    supply       Ugelstad Rederi, Oslo           en bloc        Aries Maritime, London
          Skandi Waveney               3,350         2001    supply       Ugelstad Rederi, Oslo           en bloc        Aries Maritime, London
          Viking Swan                  5,000         2005    supply       Ugelstad Rederi, Oslo           en bloc        Aries Maritime, London
          Maya Princess               37,420         1983    dry cargo    TBS International, USA          USD 13 m       Dannebrog, Cph
          Clipper Sussex              76,000         2005    bulk         Clipper, Copenhagen             USD 41 m       undisclosed
          Nordatlantic               105.000         2001    tanker       DS Norden, Copenhagen           USD 59.5 m     König KG, Hamburg
          Chengxi resale              53,000         2007    bulk         DS Norden, Copenhagen           USD 44 m       German KG                           TC
          Chengxi resale              53,000         2007    bulk         DS Norden, Copenhagen           USD 44 m       German KG                           TC
          Maersk Rimini               15,174         1990    container    O T Tønnevold, Grimstad         USD 10.85 m    Dania Marine, Mariager
          Dynasty                    133,082         1982    bulk         Arne Blystad, Oslo              USD 15 m       Korean
          Sibonina                    83,158         1993    obo          Camillo Eitzen, Oslo            USD 101 m      Norwegian UK-based
          Siboelf                     74,928         1993    obo          Camillo Eitzen, Oslo            en bloc        Norwegian UK-based
          Sibotura                    74,928         1992    obo          Camillo Eitzen, Oslo            en bloc        Norwegian UK-based
          Sea Cat                     89,000         1985    tanker       Seatankers, Limassol            USD 18 m       Sea Production, Oslo
          Sea Jaguar                  89,000         1985    tanker       Seatankers, Limassol            USD 18 m       Sea Production, Oslo
* gross tons          c = capacity in cubic meters


86                                                                                                         SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                                                    M A R K E T R E P O RT S



Secondhand transactions in the Nordic market
Month     Name                             DWT       Built                    Type        From                           Price         Buyer                 Remarks/New name
          Front Puffin                   113,000      1990                    fpso        Frontline, Oslo                USD 150 m     Sea Production, Oslo
          Crystal Ocean                    10,000     1999                    fpso        Crystal Ocean, Oslo            USD 90 m      Sea production, Oslo
          Champion Vincita                 45,574     1982                    tanker      Champion Tankers, Bergen                     breaking
          Seminole Princess                29,500     1996                    bulk        Filscan Shipping, US           USD 45 m      Norwegian KS
          Laguna Belle                     29,500     1997                    bulk        Filscan Shipping, US           en bloc       Norwegian KS                           bb
          Green Frio                        2,400     1979                    reefer      Green Reefers, Bergen          USD 2.4 m     Viking Reefers, Ålesund
          Ievoli Gold                       7,100     1993                    tanker      Mosvold Chemical, Krs S                      Eitzen Chemical, Oslo        bb until 6.09
          Ievoli Silver                     5,400     1992                    tanker      Mosvold Chemical, Krs S                      Eitzen Chemical, Oslo        bb until 6.09
          Torquato                          5,400     1992                    tanker      Mosvold Chemical, Krs S                      Eitzen Chemical, Oslo        bb until 6.09
          Attilio Ievoli                    6,200     1995                    tanker      Mosvold Chemical, Krs S                      Eitzen Chemical, Oslo        bb until 6.09
          Jo Rogn                          37,572     1980                    tanker      JO Tankers, Bergen             USD 12.0 m    Indian buyers
          Jo Gran                          37,572     1980                    tanker      JO Tankers, Bergen             USD 12.0 m    Indian buyers
          Høegh Galleon                   87,603c     1974                    LNG         Höegh LNG, Oslo                USD 45 m      Maverick LNG, US
          Berge Sisu                      75,685c     1978                    LPG         BW Gas, Oslo                   USD 8.9 m     Benelux, Greece
          Golden Gunn                      74,759     2005                    bulk        Golden Ocean, Oslo             USD 50.2 m    Hadley Sh, London
          Crystal Sea                      10,200     1994                    fpso        John Fredriksen, Oslo          USD 80 m      BW Offshore, Oslo
          Nordatlantic                   105,344      2001                    tanker      DS Norden, Copenhagen          USD 59.5 m    KGAC                               tc back
          Nord Mariner                     53,000     2006                    bulk        DS Norden, Copenhagen          USD 41.0 m    German KG                    3 yrs tc back
          Mira A                             740*     1976                    tug         Jens Alfastsen, Horsens                      Italian
          Bro Trader                       14,402     1988                    tanker      Broströms, Göteborg            USD 15.3 m    Styga, Greece
          Bro Transporter                  14,316     1989                    tanker      Broströms, Göteborg            en bloc       Styga, Greece
          Nord Mariner                     53,000     2006                    bulk        DS Norden, Copenhagen          USD 41 m      German KG                         tc back
          Draupner                           735*     1999                    catamaran   Tide Sjø, Bergen               USD 5.25 m    Italian
          Sapphire Express                   478*     1993                    catamaran   Titan Cruise, US                             Tide Sjø, Bergen
          Scot Pioneer                      2,379     1984                    dry cargo   Scot Line, UK                                Vidar Sh, Finland
          Varangerfjord                      417*     1990                    catamaran   FFR-Connex, Hammerfest                       CT Offshore, Denmark
March     Sichem Labrador                   6,700     1985                    tanker      Eitzen Chemical, Oslo          USD 3.4 m     undisclosed
          Golden Dena                      74,700     2005                    bulk        Golden Ocean, Oslo             USD 50.02 m   undisclosed
          Selah SY resale                  10,000     2007                    tanker      Turkish                                      Tärntank, Donsö
          Atlantic Swan                    10,500     1982                    tanker      Uni-Tankers, Middelfart        USD 5.9 m     undiscl
          Miclyn Magnitor                  1,047*     2006                    supply      Offshore Charters, Singapore                 Boa Offshore, Trondheim
          Front Vanadis                  285,872      1991                    tanker      Frontline, Oslo                USD 42 m      TMT, Taiwan
          BBC Bornholm                      3,700     2003                    dry cargo   Bockstiegel Reederei, Emden                  Scan-Trans, Denmark
          Clipper Eagle                    16,900     1994                    bulk        Th Jacobsen & Co, Sarpsborg                  Lithuanian Sh Co, Klaipeda
          Clipper Falcon                   16,900     1995                    bulk        Th Jacobsen & Co, Sarpsborg                  Lithuanian Sh Co, Klaipeda
          Baus                               515*     1970                    tug         Alfons Håkans Oy Ab, Turku                   Britannia Bulk DK A/S           Vornaes II
* gross tons             c = capacity in cubic meters
                                                             BENT MIKKELSEN




  Correction
    Tarbit Shippings sale of the product
  ! tanker Oktavius was mentioned in
  our last Sale & Purchase Report. The
  vessel’s new name is Sir Athos.




Mira A, the powerful Danish tug, has been sold
to Italy.


SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                                                87
M A R K E T R E P O RT S



Rates and fixtures week 11
Shortsea dry bulk market report
Baltic.The Baltic market is showing further     Earning estimates past 12 months
improvement in activity with limited ton-       EUR/day                        ■ 1,000–1,500 DWT ■ 1,500–2,000 DWT ■ 2,000–3,000 DWT
nage supply in all sizes. Mild weather
                                                 5,000                         ■ 3,000–4,000 DWT ■ 6,000–7,000 DWT
throughout Baltic has improved the ice sit-
uation further and ice restrictions are
already removed in many ports in Sweden         4,000
and Estonia.
   Good activity in the scrap and fertilizer
                                                3,000
sector has resulted in a surge in demand for
4,000–5,000 tonners especially, but ton-
nage has proven very difficult to attract.       2,000
Smaller ships have also been in demand for
movements of steel products and general         1,000
cargo from Klaipeda and Poland to Scandi-
navian destinations. Owners are finally                                                                                                         Week
regained some confidence that the market             0
                                                            15     20         25    30         35        40      45       50    1      5         10
will be performing better in the weeks
ahead.                                          EARNINGS ESTIMATES ON T/C                           MARKET SNAPSHOT
   Activity level: More Active                  BASIS PER DAY (MODERN, BOX)
                                                                                                                        This week           Last week
                                                Size              This week        Last week        Brent                USD 60.64          USD 62.24
Scandinavia.Continuous brisk activity
                                                1,250 DWT         EUR 1,800        EUR 1,750        MGO Rotterdam       USD 527.50         USD 538.00
along the coast of Norway has taken a lot       1,750 DWT         EUR 2,000        EUR 2,000        IFO180 Rotterdam    USD 283.50         USD 290.00
of tonnage out of the market and created a      2,500 DWT         EUR 2,450        EUR 2,400
demand for spot and prompt tonnage in           3,500 DWT         EUR 3,400        EUR 3,350
the smaller sizes especially. Several fresh     6,500 DWT         EUR 4,300        EUR 4,250        ern Europe this week with salt, phosphates
orders of pig iron, aluminium and minerals                                                          and minerals and owners have been focus-
in the 1,500 mt size quoted from WC Nor-        sizes. 4,000–6,000 tonners have been very           ing on positioning for Easter holidays.
way to ARAG and German Baltic this              hard to attract pushing rates higher on             Eastern Med is more active with good out-
week, but brokers have struggled hard to        ARAG-Mediterranean cargo runs. We have              put of steels and minerals from Turkey and
attract offers. 1,500 mt marble chips from      seen rates in region of EUR 25 p/mt for             Greek Island both inter Med and to
WC Norway to Belgium was covered at             4,000–5,000 mt of DWT scrap from Conti-             ARAG/UK. 3,000 mt of steels Turkey to
EUR 16 p/mt while 1,500 mt ferro prod to        nent to S.Spain while 3,000 mt of wheat             ARAG has been covered in region of EUR
German Baltic was covered at EUR 18             from ARAG to Irish Sea has been covered             37–39 this week depending on destination.
p/mt. Good activity in project and general      around EUR 17p/mt. The tugboat strike in              Activity level: Stabile
cargo movements to and from Norway has          Rotterdam was called off last weekend, and
also offered owners valuable possibilities      the market was back to normal early this            Fixtures
this week.                                      week.                                               – 1,500 mt minerals WC Norway/ARAG
   Activity level: More active                     Activity level: More active                      fixed Eur 16 p/mt
                                                                                                    – 3,500 mt minerals SC Spain/Lower
UK/Continent. rokers are reporting of           Mediterranean. The Western and Central              Baltic fixed EUR 20 p/mt
good activity both in the fertilizer and ani-   Mediterranean market is moving sideways             – 3,000 mt wheat SC Spain/Algeria fixed
mal feed sector especially. No significant       with balanced supply of tonnage in the              USD 16 p/mt
change in rates from previous weeks, but        larger sizes. Several ships open in SC Spain         norbroker shipping & trading as,
tonnage supply is getting tighter in all        and WC Italy this week was fixed to North-                           f l e k k e f j o r d , n o rway




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88                                                                                       SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                        www.tts-marine.com
                                                                                                       Photo: RCCL




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RoRo equipment | side loading systems | hatch covers | equipment for cruise vessels and megayachts |
After-sales service and support
M A R K E T R E P O RT S



Tank – clean firmer – aframax misery
❯   Clean MR (Medium Range) freight
    remained firm throughout the past
four weeks in North Europe, while crude
                                                smiles of aframax owners faces. In fact, the
                                                aframax freight rate in the North Sea has
                                                nearly halved from WS195 to WS 102 in
                                                                                                             period. Freight was not forced below WS
                                                                                                             100, at least not until we went to press, like
                                                                                                             in the Mediterranean where indications of
loaders, like aframax and suezmax suffered      the past for weeks, while freight for                        below WS 90 were seen. After firmer rates
in a miserable market. Towards the middle       100,000 tonnes Primorsk for UK/Conti-                        the panamax crude carrier soon fell back
of the month MR tonnage in the Trans-           nent slipped a little more than 40 pr cent                   towards WS 200 for the UK/Continent to
Atlantic trades westbound went through          from WS 185 to WS 105 during the same                        US Gulf run.
WS 360 with no sign of abating, while
clean LR (Large Range) tonnage made              Wet bulk freight development
smaller gains. WS 400 figured also, for          Worldscale   ■ Suezmax North Sea–TA    ■ Aframax NS– UKCont
33,000 tonnes Baltic for East Coast Cana-                     ■ Aframax Primorsk–UKCont ■ Clean MR UKCont–TA ■ Clean Baltic–UKCont
                                                 600
da. But it is unlikely that demand will hold
at present levels. Also, as soon as position-
                                                 500
ing imbalances are ironed out, more ton-
nage will be available and present freight
levels will not be sustained. Some MR            400
owners will dispute this line of thought,
but there is certainly no overall shortage of    300
MR tonnage in market.
   The story of the month is the not unex-       200
pected fall in aframax freight both in the
North Sea and the Baltic. On the short           100
haul North Sea to UK/Continent route the
time charter equivalent (TCE) spot rate            0
hovered around USD 15,500 per day,                 Apr ’05      Jul ’05        Oct ’05        Jan ’06       Apr ’06    Jul ’06     Oct ’06      Jan ’07
which is hardly the sort of rate to bring                                                                                             Source: SSG, March 14, 2007




Dry – time to pause for thought
❯    Dry bulk owners are having a real
     bonanza. One could say against all
odds, but demand is still forthcoming to
                                                bulk tonnage have had a runaway start to
                                                the year. This is particularly true for the
                                                capesize dry bulker, where Atlantic time
                                                                                                             committing to up to three years, perhaps
                                                                                                             believing freight will go even higher. But
                                                                                                             even the most bullish brokers now believe
create sufficient demand to cover a steadily    charter equivalent (TCE) spot rates were                     freight will weaken shortly, but none will
growing fleet. Perhaps it is time to pause      more than USD 100.000 per day for vessels                    say when.
for thought, because the current upturn is      for the Far East. Even at the present freight                   After showing signs of slowing down
very fragile. However, all categories of dry    level in the Atlantic charterers were still                  into the second week of March, there still
                                                                                                             remained sufficient nerve in the market to
                                                                                                             continue the upturn. In the Atlantic
Dry bulk freight development                                                                                 around USD 45,000 per day was paid for a
Atlantic round voyage,USD/day                          ■ Capesize ■ Panamax ■ Handymax                       modern panamax for Atlantic delivery/
90,000                                                                                                       redelivery. Because of temporary deficien-
80,000                                                                                                       cies of capesize tonnage in the Atlantic,
                                                                                                             panamax loader were booked for iron ore
70,000                                                                                                       cargoes from Brazil to China. During
60,000                                                                                                       March the handy market really hit the
                                                                                                             accelerator and improved around USD
50,000
                                                                                                             6,000 per day in the Atlantic. Handy ton-
40,000                                                                                                       nage was particularly popular I the South
30,000                                                                                                       American grain trades, where scores of ves-
                                                                                                             sels were booked to the Far East. In fact,
20,000
                                                                                                             the handy market has not been this strong
10,000                                                                                                       or many years. The last time it reached
                                                                                                             USD 30,00 per day in the Atlantic was
     0
     Apr ’05    Jul ’05    Oct ’05   Jan ’06    Apr ’06   Jul ’06       Oct ’06        Jan ’07               three years ago.
                                                                    Source: Fearnleys/SSG, March 14, 2007                              p et t e r a r e n t z

90                                                                                                   SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
                                                                                                                                         M A R K E T R E P O RT S




Offshore market report March
                                                                                                               Installer, a new company in the DOF
Offshore rate development
                                                                                                               group. Eidesvik is reported to be talking to
GBP 1,000                             PSV:   ■ 600/700    AHTS:     ■ 15,000–16,000 ■ 20,000+                  Westcon for a gigantic subsea construction
140                                                                                                            vessel of 162 meters, with a speed of 20
                                                                                                               knots and cranes of 1250 tons. The con-
120
                                                                                                               tract price is rumoured to NOK 1.2 bil-
100                                                                                                            lion–USD 190 million, the most expensive
                                                                                                               vessel of this type ever seen.
 80                                                                                                               No doubt there are more projects in the
                                                                                                               pipeline, but yards and equipment suppli-
 60                                                                                                            ers are now looking to 2010 for delivery.

 40                                                                                                            Going public
 20                                                                                                            By all marks, Remøy Offshore ASA will be
                                                                                                               launched on the Oslo stock exchange at the
                                                                                                   Week
  0                                                                                                            end of March, following a NOK 150 mil-
        15       20      25      30          35      40        45       50     1        5           10         lion IPO. This company, managed by Åge
                                                                                                               Remøy in Fosnavåg, will become the

❯    The winter months have seen a busy
     and dynamic offshore market in the
North Sea. With a healthy rate level, new
                                                  ships are still coming on. The quartet of
                                                  153-meter service ships for Aker Oilfield
                                                  Services at USD 160 million apiece caught
                                                                                                               eighth offshore supply shipping company
                                                                                                               to go public. Following in the tracks is the
                                                                                                               seismic data supplier Wavefield Inseis.
enquiries for spot and term charters and          a lot of attention. Similarly, Aker Yards also               Money is still abundant for new oil-related
ample opportunities, the mood is still            secured two ultra-large anchorhandlers for                   service companies.
buoyant throughout the industry. Com-             deepsea construction work for DOF                                                       da g b a k k a j r
pared to the end of 2006, the market has
been less turbulent, with anchorhandler           NEW TERM CHARTERS IN THE NORTH SEA:
rates mostly in the GBP 30,000–60,000 seg-
                                                  Charterer         Vessel                  Type          Operation
ment and platform vessels in the 20,000–
                                                  Team Marine       Far Strider             psv           ext 1 yr until Jan 08
30,000s. However, some vessels have expe-
                                                  MLS/Total         Eidesvik Avant tbn      psv           3 yrs firm + 2x1 yrs opt from 2q08
rienced idle days between jobs.
                                                  Oilexco           Rig Express             psv           1 yr support Sedco 712, April 07
   Most offshore brokers are expecting a
firm market this year, too. The confidence        ConocoPhillips    Highland Promise        psv           3 years
of the owners is apparent from a general          DPT               North Traveller         psv           3 yrs from April 07
reluctance to offer for medium term peri-         Peterson          Sical Torino            psv           1 yr + 2x1 yrs opt, end March 07
ods, which is a much-used practice by char-       Statoil           Edda Frigg              psv           85 days firm + 2x15 d opt, pipehaul, April
terers. As expectations are running high for      Statoil           Normand Carrier         psv           30 days pipiehaul April
the summer season, many owners prefer to          Apache            Highland Citadel        psv           ext 2 yrs
have ships in the spot market, or alterna-        Apache            UP Sapira               psv           ext 2 yrs
tively only go for longer periods of 3–5          BP UK             Taurus                                ahts 3 months firm + opt, April 07
years.                                            Statoil           Normand Draupne         ahts          ext 1 yr

New orders                                        NEW CHARTERS OUTSIDE THE NORTH SEA:
For order boom for conventional supply            Charterer         Vessel            Type                Operation
ships have been petering out, however,            Total             Sea Halibut       psv                 6 months form + 2x3 opt, May, Congo
some projects are still coming out. The           Total             Bourbon Borgstein ahts                28 months firm + 4x6 opt, Aug, Congo
Myklebust Yard managed to squeeze a
                                                  SPECIAL VESSEL CHARTERS:
VS470-2 type PSV into their schedule for
delivery in September 2008, at a price of         Charterer         Vessel                  Type          Operation
NOK 183 million; this going to Greek              Acergy            Normand Tonjer          subsea        3-4 months W Africa (Deep Ocean relet)
Aries Maritime. Volstad Maritime has tak-         Seabird Expl      Munin Explorer          seismic       5 yrs + 3x1 yrs opt, bb July 07, purch option
en a fourth ST-256 vessel from Fosen, slat-       Diavaz            Aquanaut                subsea        225 days ext until Oct 07
ed for delivery in December 2008. Fosen           Veolia            Nor Sky                 ROV           5 yrs from April 07
also secured the option for a MT6009 to           CCG Veritas       Veritas Viking II       seismic       6 yrs ext
Boa Offshore/EMGS, also for December              various clients   Geosea                  survey        until Sept 07, Australia/Sakhalin
2008.                                             OT2K              Bothnica                subsea        subsea work August-Dec 07
   More demanding projects for specialized                                                                Based on information from R G Hagland Offshore, www.hagland.com



SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007                                                                                                                        91
M A R K E T R E P O RT S


 BUNKERS AND CRUDE OIL TRENDS                                                                                          SHARE PRICE INDEX
Week           Rotterdam Bunkers                               Crude Oil                                              Index                                       16/3             9/3
               380 cSt, USD/t         MDO, USD/t               Brent, spot IPE, USD/brl
                                                                                                                      Broström Logistics*                      102.56          99.24
05                 247                  464                          57.06
06                 263                  468                          58.60                                            OSE2030GI**                              351.43         356.93
07                 250                  463                          56.18                                            *Broström Logistics is a share price index that includes seven
                                                                                                                      Swedish as well as non-Swedish transportation and logistics
08                 259                  473                          60.64
                                                                                                                      companies, publicly listed on European Stock Exchanges. For
09                 265                  486                          61,47                                            further information, visit www.brostrom.se.
10                 268                  487                          61.00                                            **OSE2030GI includes the shipping companies listed on the
11                 264                  477                          60.56                                            Oslo Stock Exchange.
Quotations Friday each week.                                         Source: Stockholm Chartering, www.stochart.com


 CRUDE TANKER MARKETS                                                                   DRY CARGO MARKETS, LARGE CARRIERS
Size          Route                  Week        Worldscale          Earnings          Size          Route                                           Week                     USD/t
                                                                     (USD/day)
                                                                                       Single voyages
VLCC          Persian Gulf–UKC C/S    05             55.0                38,600
                                                                                       Capesize Tubarao–Rotterdam                                    05                     21.00
280,000                               06             50.0                31,000
                                                                                       165,000 Iron Ore                                              06                     21.30
                                      07             50.0                32,800
                                                                                                                                                     07                     22.20
                                      08             55.0                39,200
                                                                                                                                                     08                     21.50
                                      09             57.5                 42100
                                                                                                                                                     09                     24.00
                                      10             70.0                59,800
                                                                                                                                                     10                     24.00
                                      11             75.0                67,600
                                                                                                                                                     11                     24.90
Suezmax       Cross Med               05            135.0                57,500
                                                                                       Tripcharter                                                                   Av. Earnings
130,000                               06            130.0                53,500                                                                                        (USD/day)
                                      07            125.0                51,200        Panamax       Cont–Far East                                   05                    34,000
                                      08            115.0                44,500        70,000                                                        06                    35,500
                                      09             90.0                28,700                                                                      07                    38,000
                                      10             90.0                28,500                                                                      08                    38,900
                                      11            100.0                34,900                                                                      09                    43,500
Aframax       North Sea–UKC           05            160.0                50,500                                                                      10                    44,700
80,000                                06            160.0                50,000                                                                      11                    44,000
                                      07            195.0                68,200        Handymax Transatlantic, round voyage                          05                    31,500
                                      08            130.0                34,800                                                                      06                    30,750
                                      09            120.0                29,400                                                                      07                    30,750
                                      10            102.5                20,400                                                                      08                    31,750
                                      11            160.0                49,800                                                                      09                    33,250
Quotations Friday each week.          Source: Stockholm Chartering, www.stochart.com                                                                 10                    35,000
                                                                                                                                                     11                    38,750
                                                                                                                                                  Source: Fearnleys, www.fearnleys.no




Norwegian ship and rig orders                           drilling rigs for a total of NOK 154 billion.                 tonnes. This is the first time that this sort
for NOK 220 billion                                     Total investments are 60 per cent higher                      of statistics has been compiled, but the
ssg-tønsberg. Norwegian and Norwegian-                  than a year earlier.                                          Baltic Exchange promises annual numbers
controlled shipowning companies and                                                                                   for the tanker FFA trade. Those participat-
drilling contractors had ships and rigs                                                                               ing in the market are oil companies, ship
worth NOK 220 billion on order at the                   USD 5.5 billion worth of FFAs                                 owners and companies in the financial sec-
end of last year, according to market                   last year                                                     tor.
sources quoted by the Norwegian financial               ssg-tønsberg. Thanks to a growing num-
daily Dagens Næringsliv. These numbers                  ber of oil market participants who trade
include Norwegian-controlled companies                  risk, Baltic Exchange statistics show that                    SFI sells single-skin VLCC
registered abroad, such as entities con-                12,758 tanker Forward Freight Agreements                      ssg-tønsberg. John Fredriksen controlled
trolled by John Fredriksen. Statistics from             (FFAs) worth USD 5.5 billion were traded                      Ship Finance International (SFI) has sold
the Norwegian Shipowners’ Association                   last year. Translated into oil, carried these                 the 285,000 DWT single-skin Front
(NSA), excluding those companies abroad,                transactions, both over the counter and                       Vanadis, built in 1990, to Taiwan Maritime
show investments in 356 ships and 25                    cleared trades, equate to 329,4 million                       Transport for USD 42.0 million.



92                                                                                                             SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
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                           The Montagne:
                           Adventures of an Old Lady




I
                         t is nowadays very rare for a ship to   old that he could hardly walk, he still         goal was to take her to the Caribbean and
                         have a life span for more than 40       insisted in continuing to drive his even        sell her to a local shipowner. After the visit
                         years. But many disappeared ships       older ship. His crew had to carry him to        in Cyprus, the Montagne departed to Las
                         of the past lived much longer than      the wheelhouse where he then could sit          Palmas where her fuel tanks were filled up
                 that, often having a very variable career,      and steer. A true skipper to the last.          as much as possible. After this Maijala cast
                 operated by owners whose lives were                Eventually time comes to an end for          off and headed for Barbados.
                 somewhat more adventurous than what is          everything and Johansson was forced to             After 16 days at sea, when finally arriv-
                 usual in today’s shipping world.                part from his ship after almost 30 years. In    ing at Bridgetown, she had only 60 litres
                    In 1876 the Motala Mekaniska Verkstad        1979 the Montagne was sold back to Swe-         of fuel left! But now new problems
                 at the Swedish Lake Vättern launched the        den, but this time to a Stockholm-based         ocurred. The prospective buyer ran into
                 small steam cargo ship the Vieille Montagne     diver, Karl Hillgren. The new owner also        financial difficulties and Maijala could not
                 II. She was especially built for the Belgian    had new plans for her. The Montagne             sell the Montagne as he had planned.
                 company Vieille Montagne. The company           sailed down to the Mediterranean and to         Instead he decided to operate the Mon-
                 operated zink mines in Åmmeberg, Sweden,        the Red Sea, where Hillgren and his friends     tagne himself, trading cargo in the
                 and built eventually four coasters for carry-   dived to numerous shipwrecks in search for      Caribbean. Surely no one in the Finnish
                 ing the zink to Göteborg. In their private      valuable items. In 1982 this business came      Maritime Administration knew there was
                 harbour it was loaded into bigger ships.        to a sudden end, when Hillgren disap-           such a cargo ship under the Finnish flag
                    The Vieille Montagne II remained             peared on a dive. His friends dived to          on this deep sea trade. After one year of
                 almost unchanged all her career, plying         search for him, but found something else        trading the local skipper Bernard Tavernier
                 back and forth on the Göta river. In 1961       instead: two big sharks swam around in the      from Dominica bought her. Still bearing
                 her trading in Sweden ended and she was         area where Hillgren last was seen.              the same name, the Montagne shifted to
                 sold together with the Vieille Montagne IV                                                      the Dominican flag. In 1986 she ran
                 to Borgå in Finland. Renamed the Mon-           The Montagne was laid up in Israel and          ashore on Martinique after a hurricane but
                 tagne, she spent her following years on the     was put for sale. But instead of being          was refloated under the assistance of a US
                 busiest domestic coastal trade between          bought by a local owner she ended up to fly     navy ship. Cheating scrapping, nature ele-
                 Borgå and Helsinki carrying sand materials.     the Finnish flag again, as the Finnish adven-   ments, and unforeseeable sales, the Mon-
                    Her Finnish owner Evert Wilhelm              turer and mariner Markku Maijala somehow        tagne’s end came in 1995 when an over-
                 Johansson was a coaster skipper of the old-     managed to acquire her. The Montagne            board valve broke and filled her engine
                 er breed, who had spent all his life on this    now got Helsinki as her home port and she       room with water. She sank on deep water,
                 particular trade. Even in the end of the        was registered as a pleasure craft. Maijala     loaded with cargo for a nearby island.
                 1970’s, when Johansson was becoming so          sailed her to Limassol for dry docking. His                              ja n g r au tawa a r a

                 94                                                                                        SCANDINAVIAN SHIPPING GAZETTE • MARCH 23, 2007
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