Issue No. 7, September 2007 - J. Lauritzen

OCEANS OF KNOW-HOW
September 2007
A Capesize
milestone
Half-year results · Lauritzen Kosan newbuilding programme enters into
delivery phase · Staying safe means staying alert · Vessel of the Year
2006 · Hole in one · JL exits the reefer business · A Capesize milestone ·
Goodbye to training, Hello to the real thing · It’s back to school for
experienced purchasers · Lauritzen Tankers builds in China

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Half-year results 2007
Lauritzen Kosan newbuilding
programme enters into delivery phase
Staying safe means staying alert
Vessel of the Year 2006
Hole in one
JL exits the reefer business
A Capesize milestone
Allotment gardens - nature and leisure
within the city limits
Goodbye to training, Hello to the
real thing
It’s back to school for experienced
purchasers
Lauritzen Tankers builds in China
Namegiving ceremonies

Dear Reader,
The ability to handle uncertainty and change is paramount in today’s business
world with its increasing competitive pressures. The ability to cope with and
even thrive on change can thus be regarded as a major competitive advantage.
The decision to sell JL’s 50% shareholding in NYKLauritzenCool, and consequently
to exit reefer shipping, is an excellent example. I take pride in the way it
demonstrates our ability to change. JL’s history in the reefer business (see article,
page 10) illustrates our ability to constantly seek new opportunities through
innovation, market development, and flexibility – and to continuously respond
to changing market conditions.
It is, of course, emotional to leave the fascinating reefer industry together with
all our trustworthy customers and dedicated colleagues worldwide. We wish all
our friends in the reefer industry good luck and thank them for the trust they
have shown us during many years. However, our exit from the reefer business
will open new opportunities for JL.
I find it fair to state that the ability to cope with change is built into the culture,
organisation, and management style of JL. I am very pleased with that. But there
is always a risk that complacency might be lurking around the corner. Therefore,
we constantly have to sharpen our skills and competencies and thus our ability
to continuously change.
During the last couple of months, other major changes have occurred. Lauritzen
Bulkers has ordered no less than four Capesize bulk carriers, manifesting its presence
in this segment of the bulk market. The Capes are the biggest vessels ever ordered
by JL. During the summer, Lauritzen Tankers ordered six additional product tankers,
another sign of our continuous fleet build-up in the MR product tanker market.
With 50 owned and time-chartered vessels on order, JL has the biggest newbuilding
portfolio ever recorded. Furthermore, partners will add 15 additional
newbuildings to the JL-managed fleet.
I am pleased to report that JL’s result for the first six months of 2007 was
USD 132 million compared to USD 60 million in 2006 and thus better than
expected and very satisfactory. The outlook for the remaining part of the year
is positive, and the best ever full-year result is expected for 2007.
Sincerely,
Torben Janholt
President & CEO
Although some organisations
may continue successfully with
their current strategies, most
will undoubtedly need to change.
Of course, any change brings
uncertainty, and some organisations
are better at coping
with that situation than others.
Torben Janholt,
President and CEO
3

4
Very satisfactory
half-year results 2007
JL’s result for the first six months of
2007 was USD 132 million compared
to USD 60 million in 2006. The
result is better than expected and very
satisfactory.
The improvement compared to 2006
was primarily driven by a substantial
strengthening of the bulk market,
increasing activities within JL’s product
tanker division, and gains on securities.
Earnings in Lauritzen Kosan and
Lauritzen Reefers were better than
expected but lower than last year due
to lower profit from sale of vessels and
for Lauritzen Kosan particularly due
to the sale of the small gas carrier
activity towards the end of 2006.
The newbuilding programme further
increased to a total of 50 vessels, including
19 vessels that will be taken on longtime
time-charter. Furthermore, joint
venture partners will add another 15
newbuildings to the JL-managed fleet.
During the first half of 2007, JL’s 50%
shareholding in NYKLauritzenCool
was sold to joint-venture partner NYK
Reefers Ltd. As consequence of the
transaction, JL will leave the reefer
market (see article on page 10).
Invested capital (average) 1H USDm
800
600
400
200
0
Bulk Gas Tank Reefer JL
2006 2007
Fleet
During the first six months of the year,
JL took delivery of two Handysize
bulk carriers, two MR product tankers
(one of which was sold at delivery),
and one 8,000 cbm ethylene gas carrier
(the first of a series of six sister vessels).
Additionally, JL took delivery of four
long-term time-chartered product
tankers and one Handysize bulk carrier.
Year-to-date, investments in 15 fully
or part-owned vessels were approved,
as were divestments in five vessels and
other assets.
After the exit from the reefer business,
JL controls a combined fleet of about
130 vessels at the beginning of August
2007. Based on current commitments,
a total of 65 newbuildings will be added
to the fleet during the coming years,
bringing the total fleet to 195 vessels.
Invested capital
During the first half of 2007, invested
capital increased by USD 255 million
compared with the same period last
year. Average invested capital was
USD 695 million, of which USD 291
million relates to Lauritzen Bulkers,
USD 265 million to Lauritzen Kosan,
and USD 140 million to Lauritzen
Tankers.
JL’s newbuilding commitments total
about USD 1.3 billion. In addition,
JL’s investment capacity amounts to
about USD 1 billion.
Lauritzen Bulkers
The result before tax was USD 114.4
million compared to USD 34 million
in the same period last year. The result
is considerably better than expected.
Towards the end of the first half of
2007, Lauritzen Bulkers ordered
four Capesize bulk carriers, further
strengthening its presence in this
segment of the bulk market.
Lauritzen Kosan
During the first half of the year,
Lauritzen Kosan realised a result
before tax of USD 7.2 million compared
to USD 16.9 million in the
same period last year. The result is
better than expected.
The first of a series of innovative
8,000 cbm ethylene gas carriers was
delivered in May. A further nine identical
vessels will be delivered during
Key figures 1st Half Total Year
2007 2006 2006
(USD million) Actual Actual Actual
Lauritzen Bulkers 114,4 34,0 93,4
Lauritzen Kosan 7,2 16,9 38,3
Lauritzen Tankers 13,6 1,6 3,8
Lauritzen Reefers 9,9 16,2 13,2
Landbased activities (0,2) (1,2) (3,7)
Other (7,6) (1,3) (8,7)
Result before tax 137,3 66,2 136,3
Tax and minorities (5,8) (6,3) (11,9)
Net result 131,5 59,9 124,4
Cash and securities 10,3 104,4 48,6
Long-term debt, total 44,8 68,1 49,9
Equity (excl. min.) 782,3 614,4 679,8
Total assets 991,8 755,9 929,7

the coming years, five of them owned
by Lauritzen Kosan and four by jointventure
partners.
Lauritzen Tankers
The result before tax was USD 13.6
million compared to USD 1.6 million
in the same period in 2006. The result
is better than expected.
During the summer, Lauritzen Tankers
ordered six additional products tankers,
further strengthening the fleet build-up
in the MR product tanker market.
Lauritzen Tankers’ newbuilding programme
comprises 12 owned and timechartered
vessels.
Lauritzen Reefers
The result before tax was USD 9.9
million compared to USD 16.2 million
in the same period in 2006. The
result is in line with expectations.
In connection with the 50% sale of
NYKLauritzenCool, JL’s portfolio
of time-chartered reefer vessels was
transferred to NYKCool AB. Four
reefer vessels will, however, remain
on bareboat charter to Lauritzen
Reefers and be commercially operated
by NYKCool
Total fleet (August 2007)
Owned 34
Part-owned 14
T/C 39
Pool 28
Joint charters 12
Comm. mngt. 4
Total 131
N/B (own) 31
N/B (T/C) 19
N/B (partners) 15
Key figures
Return on invested capital for the first
six months of 2007 was 34.5% compared
to 27.7% in the same period in
2006.
Return on equity was 37.7% compared
to 19.6% in the same period in 2006.
Solvency was 78.9% compared to
81.3% last year.
Outlook
Due to the continued strong global
economy and the overall positive outlook
for JL’s business activities, the net
result for 2007 is expected to be substantially
higher than earlier estimated
and the best in the history of JL.
Lauritzen Kosan
newbuilding
programme
enters into
delivery phase.
Past issues of this magazine have provided
progress reports on Laurtizen
Kosan’s extensive newbuilding project
of ten ethylene gas carriers being built
at INP shipyard in Ulsan, Korea. The
first of these, the Isabella Kosan, was
delivered on 31 May. After extensive
sea and gas trials, she sailed from
Korea to Iran to load her first cargo.
“All the tests went very well,” says
Jan Kastrup-Nielsen, president of
Lauritzen Kosan, “which is as we
expected. But when you’ve spent so
long reviewing diagrams and drawings,
it’s always a relief when a cargo is
actually loaded.” The next ship in
the series, the Helena Kosan, is due
to be delivered early September. All
ten of the vessels are scheduled to be
completed and delivered by 2009.
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Staying sa
means stay
“Our onboard ship management is tight,
and our crews are fully confident with
what it takes to stay safe – and that’s
what matters”
Tommy Thomassen
Senior Vice President, Head of Lauritzen Fleet Management
How J. Lauritzen ships avoid modern-day pirates,
terrorists, and run-of-the-mill bad guys.
If you have recently enjoyed a couple of
hours in a dark theatre happily eating
popcorn and watching Pirates of the
Caribbean, you can be excused for
thinking of piracy as a threat from the
past. In fact, it is a danger that never
entirely disappeared and one that is
making an impressive comeback off
the west coast of Africa, in some of the
same waters where the Barbary pirates
of centuries past preyed on shipping
in the western Mediterranean.
21st-century pirates are often trained
and heavily armed fighters who use
speedboats equipped with satellite
phones and Global Positioning System
equipment and have the backing of landbased
militias. They are notoriously
active off Somalia's coast. Although no
J. Lauritzen vessels have been attacked,
a Danish vessel, the Danica White, was
hijacked in June, 210 nautical miles
off the Somalian coast.
International naval forces do attempt
to protect shipping in this area –
because of Middle East oil production
it attracts heavy traffic – but the size
of the territory to be patrolled gives
the pirates an edge. Even when help
is at the right spot at the right time,
rescue efforts are not always successful:
the USS Carter Hall, part of a US
task force, fired on the Danica White’s
hijackers, but had to call off its pursuit
after the pirates entered Somalia’s territorial
waters.
Awareness and discipline
Large commercial vessels can’t do much
to protect themselves. They are too
slow to outrun the pirates, and most
shipping companies do not allow
ships’ crews to be armed. When asked
to explain J. Lauritzen’s 100% success
rate in modern time at avoiding this
danger, Tommy Thomassen, senior
vice president and head of Lauritzen
Fleet Management (LFM), gives a
disarmingly simple answer. “Our ships
play it safe,” he says. “Off Somalia, for
example, instruction is to stay at least
250 nautical miles from shore. It’s a
matter of staying alert and being disciplined
– observing the right security
level, posting extra guards, and always
being prepared. Our onboard ship
management is tight, and our crews

e
ing alert
are fully confident with what it takes
to stay safe – and that’s what matters ”
Achieving a consistent level of security
awareness and discipline is a matter of
training, and LFM sees that everyone
is trained in security, in Denmark
and the Philippines and in the Baltic
countries. There are three Company
Security Officers, and each ship in the
fleet has a specially trained Ship Security
Officer as part of the International
Ship and Port Security (ISPS) code.
International regulation
A major part of a Security Officer’s
responsibility is ensuring compliance
with the ISPS code that was implemented
in the wake of 9/11. Each
J. Lauritzen ship has an individual
security plan, with specific guidelines
about how to respond – and how not
to respond – in emergency situations.
Additionally, all ships undergo rigorous
audits: internal LFM security reviews
and inspections and Flag State security
audits. “These audits are valuable not
only because they document that we
comply with requirements, but also
because they help us and the shipboard
management and crew to continue
stay on our toes when it comes to
security, not allowing us to slowly
doze off” says Tommy Thomassen.
He also notes that the ISPS regulations
were by far one of the fastest
produced and implemented pieces of
maritime regulation ever, and points
out that rules covering port security
are among the most important part of
the code. “The regulations tightened
quayside security with strict visitor
rules and improved search routines for
stowaways and explosives,” he says, “so
they provide a layer of security against
everything from terrorist threats to
common criminals.” ISPS regulations
also focus on the important transition
from sea to port, by requiring ships’
security officer and the port security
officer to coordinate security levels in
a structured manner. In volatile areas
this is vitally important to ship security.
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Vessel of the Year 2006
Congratulations to the master, officers, and crew of the Tessa
Kosan for achieving best-in-fleet inspection performance.
The vessel received only two Ship Specific Remarks in 2006.
Ulrich Voss (on left), Vetting Superintendent, Lauritzen Kosan, presents award
plaque to Captain Nestor Aimero.
“The performance of the Tessa Kosan is a
good example of people pulling together to
put our core values into practice.”
Klaus Grøndal
Vetting Manager, Lauritzen Kosan
An article in the March 2006 issue
of this magazine reported on the
initial success of Lauritzen Kosan’s
Zero Remarks vetting programme. It
encourages high standards of vetting
inspections through monetary awards
to ships’ welfare accounts whenever a
ship posts an inspection score of 0-4
remarks. Successful vetting is crucial in
gaining business from the oil majors,
and it is also an opportunity to promote
Lauritzen Kosan as a safe and responsible
shipowner. As Klaus Grøndal,
vetting manager of Lauritzen Kosan,
puts it, “Vetting inspections are the
entry ticket to all our business. Not
doing well can have serious consequences,
as an unsuccessful inspection
can end up with the vessel being
rejected by our customers, with loss of
goodwill and earnings as a result”. A
rejected vessel is required to be satisfactorily
re-inspected before it again
may do business for the individual
customer, which is not only costly
but also time-consuming.
During 2006, there were a total of 86
inspections carried out, of which 17%
received zero ship-specific remarks.

The average amount of money awarded
per inspection was increased by 75%
in 2006, and there were a growing
number of USD 500 awards for a
perfect score. The award money is
used for the benefit of the entire crew,
both those working at the time of the
inspection and those who join the ship
at a later date. Funds can be spent on
anything from video games to karaoke
systems to sports equipment. The idea
of identifying an overall winner as the
Vessel of the Year is a new addition to
the programme – one for which the
officers and crew of the Tessa Kosan
were awarded a commemorative plaque
and a 32” flat-screen TV.
“This programme is all about encouraging
team effort, and it’s obviously
been very successful,” says Klaus
Grøndal. “We’re not only paying out
more reward money, but the steady
reduction in crew-related remarks
also indicates a real change in attitude
and awareness. The performance of
the Tessa Kosan is a good example
of people pulling together to put our
core values into practice.”
Hole in one
While anchored on the roads off
Newcastle, Australia, the Pasha
Bulker – on long-term time charter to
Lauritzen Bulkers – ran aground during
a major storm on 8 June 2007,
just off the local golf club at Nobbys
Beach. The vessel remained grounded
on the beach only a few meters from
the greens, where it became a tourist
attraction and certainly also a distraction
for the club’s keen golfers.
After the dramatic grounding all 22
Korean and Filipino crew members
were successfully rescued from the
vessel by helicopter. The vessel had
no cargo onboard, as it was waiting
to load coal. During further stormy
weather, the ship was pushed onto
the beach and was stuck in the sand,
completely trapped between the
beach and the reef. There were fears
that it could break up and cause environmental
problems.
The vessel’s Japanese owners, together
with salvage experts, decided to try to
refloat the ship. After the third attempt,
it was successfully towed off
the reef on 2 July 2007. Minor
repairs were conducted in Newcastle
harbour before the Pasha Bulker was
towed for major repairs.
The incident caused extraordinary
media attention worldwide, but fortunately
neither the crew nor the
environment suffered any damage.
As time-charter owners, Lauritzen
Bulkers had no responsibility for the
navigation of the vessel nor for the
rescue, but we thank the owners and all
Australian authorities involved in the
rescue operation for a job well done.
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10
For more than a century, J. Lauritzen reefer ships have
served worldwide markets. Seen here, the Knud Lauritzen
off New Zealand with a full load of containers.
The end of an era
reefer business
A history of more than 100
years has come to an end with
J. Lauritzen’s sale of its 50%
share of NYKLauritzenCool to
NYK Reefers Limited, JL’s professional
and dedicated partner
during the last four years. As
a consequence of the transaction,
NYK will take full control
of the company, which has
been renamed NYKCool AB.
Pioneer of the reefer trades
JL was a pioneer in the development
of the reefer trades, carrying citrus from
Spain to England as early as 1905.
During the 1920’s, JL installed electrical
ventilation systems in the cargo holds
of its vessels in order to improve the
still rather primitive carrying conditions
for perishable cargoes. Regular services
were established from Italian ports to
the UK, from Sicily and Spain to
Gdyniain in Poland, and between the
Canary Islands and Antwerp in the
Netherlands. In 1925 JL opened its
first overseas office in Valencia, Spain.
During the 1930’s, JL expanded its
reefer activities considerably. In 1931,
JL performed its first shipment of
bananas from West Africa to France.
This was a major achievement, since
there was no experience in transportation
of bananas over such long distances.
Also in 1932, JL negotiated a long-term
contract concerning transportation of
bananas from the West Indies to Europe,
and JL subsequently became instrumental
in the development of the trans-
atlantic banana trades. JL consequently
played a leading role in the expansion
of the reefer business during the 1930’s,
and JL’s reefer activities were also
extended to include Chile, Ecuador,
Brazil, and South Africa.
On the vessel side, the first of a series of
three general cargo vessels were reconstructed
at Elsinore Shipyard in Denmark,
part of the J. Lauritzen Group,
in the beginning of the 1930’s. These
converted refrigerated vessels played
an important role in the early phase of
the development of the reefer trades.
A new milestone was reached in 1935,
when JL took delivery of its first purpose-built
reefer vessel, equipped with
specialised cooling machinery, also from
the shipyard in Elsinore. The YRSA,
later renamed African Reefer, was JL’s
first vessel to carry the “Reefer” name
and traded for JL until 1963. During
the second half of the 1930’s, JL further
expanded its fleet of dedicated
reefer vessels and the African Reefer
was followed by a series of sister vessels.

“J. Lauritzen has enjoyed a strong partnership with NYK Reefers and
a very good cooperation with our Swedish colleagues. As a part of
Lauritzen’s overall strategy we decided to sell our reefer fleet in 2006,
and it is therefore only natural that NYK takes over our 50% shareholding
of the joint marketing company.
Torben Janholt, President & CEO, J. Lauritzen
: JL exits the
Modern reefer vessels
In 1953 a new series of modern reefer
vessels was ordered at the Lauritzen
Group’s shipyards in Elsinore and
Aalborg, Denmark. Major innovations
included replacing inflammable cork
with glass wool as insulation material
and replacing traditional wooden gratings
with aluminium gratings. Diesel
engines from Burmeister & Wain gave
the vessels a service speed of 18 knots.
The African Reefer, delivered in 1935,
was J. Lauritzen’s first purpose-built
reefer vessel equipped with specialised
cooling machinery.
In the second half of the 1950s more
new vessels were ordered, and the vessels’
carrying capacity was increased
to almost 250,000 cbft. A noticeable
change was made in their appearance
as these vessels, instead of being white,
were painted the same JL-red as the
company’s polar vessels.
Between 1968 and 1974, six sister
vessels were built at Aalborg Shipyard.
These were the so-called Italian reefer
class, with a cargo carrying capacity of
422,000 cbft. and able to make a laden
speed of 22 knots.
The pool concept
Around 1970, a pool concept was
adopted by J. Lauritzen in order to
secure economies of scale through the
control of a larger number of vessels
from other owners. Thus a jointventure
with Peninsular and Oriental
Steam Navigation Company Ltd.
(P&O) was established in 1971 under
the name of Lauritzen-Peninsular
Reefers (LPR). The company was owned
on a fifty-fifty basis between JL and
P&O, but vessels belonging to other
reefer owners were also operated by
LPR. By 1975, LPR controlled a combined
fleet of some 25 reefer vessels.
During this period, JL’s fleet of reefer
vessels gradually expanded with bigger
ships, and in the late 1970’s four sister
vessels – the Asian Reefer, Balkan Reefer,
Canadian Reefer, and Ecuadorian Reefer
– were delivered, each with a hold
capacity of 588,000 cbft. and a speed
of 22 knots. The partnership existed
until 1983, when P&O decided to
withdraw. Consequently, JL became
the sole owner of LPR and the company
name was changed to Lauritzen
Reefers.
After 1983, the Lauritzen Reefers’
pool was gradually developed, including
JL’s reefer vessels as well as vessels
belonging to other reefer owners. JL
contributed the majority of the vessels
employed in the pool, which in the
beginning of the 1990’s comprised
about 65 specialised reefer vessels.
JL/LR became a market leader with
regards to trade development as well as
technological innovation. An example
of trend-setting technological innovation
was the development of the Family
11

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“It is obviously emotional for us to leave the reefer business and we
wish NYKCool a fair wind. We want to thank all our trustworthy customers
worldwide for their continued support. We also thank the many
dedicated employees of JL who over many years worked hard to meet
our customers’ demands.”
Torben Janholt, President & CEO, J. Lauritzen
Class reefer vessels (758,725 cbft.
capacity under deck and 118 FEU
reefers on deck) delivered from
Danyard (Aalborg and Frederikshavn
Shipyards) in 1990-91. A reefer-industrial
cluster had gradually evolved
within the Lauritzen Group, which
included construction at Danyard of
state-of-the-art reefer vessels equipped
with advanced cooling machinery produced
by Sabroe Refrigeration, ownership
of reefer vessels by J. Lauritzen,
and commercial management of tonnage
by Lauritzen Reefers’ pool.
Over the years Lauritzen Reefers worked
diligently to optimise the return on
voyages by exploiting the flexibility
of the reefer ships’ holds to carry dry
cargoes on return voyages. The reefer
trades are characteristically from the
southern to the northern hemisphere,
and the ability to carry packaged
goods or, at a later date, containers on
the return voyages could significantly
improve the bottom-line. This concept
peaked during the years of cooperation
with the NOBOA group, with
bananas and other fruits as fronthaul
cargoes for the US and Japan markets
and cars as backhaul cargoes from
Japan to Chile, Peru, and Ecuador.
Major acquisitions
Lauritzen Reefers’ pool was terminated
in 1996, after which LR was established
as a stand-alone entity operating tonnage
solely owned and time-chartered
by JL.
In December 2000, JL acquired Cool
Carriers from Norwegian Leif Hoegh
& Co. and subsequently merged
Lauritzen Reefers and Cool Carriers,
creating LauritzenCool. Following this
initial strategic move, JL became
instrumental in the consolidation of
the reefer industry. Lauritzen Reefers
and Cool Carriers were a perfect
strategic fit, which combined two of
the strongest brand names in the
industry, with robust market positions
in all major trades, strong conceptual
skills, and long-lasting customer relationships.
Furthermore, both companies
had experience with land-based
reefer logistics as a supplement to
ocean transportation, and on that
basis LauritzenCool Logistics (LCL)
was established.
In August 2003, a strategic partnership
was established between NYK Reefers
and LauritzenCool. This was shortly
followed by NYK’s acquisition of 50%
of LCL in January 2004 and NYK’s
subsequent 50% acquisition of
LauritzenCool in September 2005,
whereby NYKLauritzenCool was
created. Finally, NYK acquired the
remaining 50% of NYKLauritzenCool,
effective 1 June 2007, thereby taking
full control of the company.
Ongoing excellence
For JL, the recent transaction marks
the end of an era with intimate customer
relationships and great colleagues.
We thank them all for their
trust and support, and wish them all
the best of luck in the future.
J. Lauritzen will endeavour to bring
the entrepreneurship, innovative skills,
and flexibility that we have gained
within the reefer industry with us
in our constant effort to become a
world-class shipping company, irrespective
of within which segments of
shipping we concentrate our efforts.
Background source for article:
Søren Thorsøe. “J. Lauritzen 1884-1984.”
The World Ship Society, Kendal, 1984.
Hiroshi Yamafuji (on left), CEO, NYK Reefers and Torben Janholt,
President & CEO, J. Lauritzen

A Capesize milestone
Lauritzen Bulkers places
first-ever order for Capesize
newbuildings with Korea’s
Hyundai shipyard.
Although Lauritzen Bulkers acquired
two time-charter Capesize vessels last
year, the order with Hyundai is the
first for newbuildings of this size.
They are scheduled for delivery during
the last quarter of 2009 and the first
quarter of 2010. In addition, two similar
Capesizes have been ordered from
Japanese yards. “At 180,000 tons deadweight,
they’re the biggest ships we’ve
ever ordered,” says Jens Ditlev Lauritzen,
president of Lauritzen Bulkers. “In
the larger picture, these four Capesize
purchases are part of our ongoing
strategy of taking every opportunity
to strengthen the Lauritzen Bulkers
fleet, which is today at a record level
of more than 85 ships.” The growth
strategy is further evidenced by the
fact that Lauritzen Bulkers is awaiting
delivery of more than 40 other vessels,
including purchased, contracted, and
time-chartered ships. They are to be
delivered between now and 2011, and,
encompassing a variety of vessel sizes
and types, indicate Lauritzen Bulkers’
determination to increase its fleet across
all segments.
Capesize ships – so called because they
are too large to traverse the Panama
Canal and therefore must round the
Cape of Good Hope and Cape Horn
to travel between oceans – represent
the largest type of bulker carriers. The
“In the larger picture, these four Capesize
purchases are part of our ongoing strategy
of taking every opportunity to strengthen the
Lauritzen Bulkers fleet, which is today at a
record level of more than 85 ships.”
Jens Ditlev Lauritzen
President, Lauritzen Bulkers
ships on order at Hyundai are being
built to meet the latest CSR (Common
Structural Rules) and PSPC (Performance
Standard for Protective Coating) standards.
The application of these standards
serve various purposes, namely
to prolong the service life of the vessel,
increase its safety, and at the same time
reduce its maintenance. They will be
used primarily to transport iron ore,
and are 292 metres long, have a 45
metre beam, and draw an 18-metre
draft fully loaded. Because of the enormous
pressure of being loaded at rates
of up to 15,000 tons per hour, the
four new vessels will also incorporate
a stress-monitoring system to protect
their hulls.
13

14
Allotment
gardens –
nature and
leisure within
the city limits
For the past 12 months, JL’s working
environment has been slightly different
from our posh neighbourhood in downtown
Copenhagen.
At Sankt Annae Plads our nearest
neighbour is the new Opera house.
At our temporary premises at Amager
Strandvej the Opera House has been
replaced with a small green enclave
containing a concentration of small,
unique sheds – so-called allotment
gardens. Compared to the downtown
neighbourhood with its charming
boutiques, art galleries, and gourmet
restaurants at every turn, the contrast
of the new surroundings is striking.
Allotment gardens form a characteristic
feature of Danish cultural life, and
the roots of this phenomenon can be
tracked back to the late Middle Ages,
when gardens were situated outside
town walls and served as an important
food supply. In the 1890s, due to the
Industrial Revolution, poor housing,
and an increase in population, the
interest in allotment gardens increased.
In that period the city of Copenhagen
broke its old boundaries and many
large, dense five-story buildings were
constructed. These flats were often
very small, some with only a view of a
backyard, and the residents longed for
natural surroundings and the outdoors.
As a result, areas in the vicinity of the
city were rented by the municipalities
for allotments, so that people could
get into contact with nature and live a
healthy outdoor life.
Rest and recreation – and necessity
The size of the gardens ranged between
200 and 400 square meters, and often
the plots included a small shed built
with the aid of the most primitive
tools and materials. The allotment
holders spent most their leisure hours
in their gardens, taking great pride in
creating a small paradise of their own.
Where there used to be squares with
heaps of rubbish outside the city, the
outskirts now offered wide green areas,
fruit trees, and neat little houses.
However, the allotment gardens have
not only served as place of pure rest
and recreation: during the Second
World War, they provided a welcome
and vital supply of vegetables and
fruits for a nation suffering under government
rationing.

While allotment gardens in the past
were an integral part of urban working
class culture, today they are more likely
to be associated with a summer getaway
for urban families with children – and
even for the highly paid. It is the freedom
to get out of the apartment for
the summer and take a break from the
demands of modern life that attracts.
People are able to socialize and relax
in the atmosphere they have created.
There is a Danish word that fits this
lifestyle perfectly – hygge. Although
Danes say it cannot be translated, it
roughly means to be cosy and relaxed
in warm surroundings with friends
and family. Many allotment holders
put a great deal of effort into creating
that cosy and comfy atmosphere in
their allotments.
For almost a year now JL has taken a
break from the throbbing life of the city.
But we will soon leave these natural
surroundings behind in order to return
to our renovated headquarters on 24
September. Who knows – perhaps we
will feel a little nostalgic about trading
the allotment gardens’ atmosphere of
tranquillity for the bustling environment
of Frederiksstaden, with its cultural
institutions, wide avenues, and
opulent dwellings.
15

16
Goodbye to
training, Hello
to the real thing
As of 1 August three trainees made the
transition to real jobs, more responsibility . . .
and larger paycheques.
Jannik Jarnsborg,
Assistant Chartering Manager,
Lauritzen Bulkers
Like all J. Lauritzen trainees, Jannik
Jarnsborg has completed a two-year
programme of general shipping education
courses supplemented by equally
intensive on-the-job training – spending
his first year of training with
Lauritzen Kosan and the second one
with Lauritzen Bulkers. His final academic
project was to write and defend
a paper on the time-charter business,
which brought together his studies
and his practical experience with the
sales and purchase of vessels and time
charters. Being rapidly immersed in the
details of vessel purchasing and time
chartering was demanding, he says, but
mastering the technical details wasn’t
the most challenging part of the trainee
programme.
“If you can handle it, you’re given
pretty much responsibility right away.
That means the phone is ringing, you
have people pulling you from all sides,
and it’s up to you to find out how to
prioritize everything. It was tough at
first, but I think that’s one of the most
valuable parts of the trainee programme
– learning how to juggle competing
demands on your time and to be
aware of how you’re doing the job.”
He recently had the chance to spend
two weeks at J. Lauritzen’s Singapore
office gaining direct experience of
overseas operations and seeing exactly
how they do their jobs. “I’m looking
forward to being a full-fledged
employee after 1 August,” he says.
“To being an equal among equals
and giving it my best effort. And,
of course, to collecting a bigger
paycheque . . . that’ll be nice, too.”
Monica Christensen,
Assistant Operations Manager,
Lauritzen Kosan
For the past two years, Monica Christensen
has balanced the theoretical side
of her trainee education with almost
daily contact with ship captains and
agents. As a member of the operations
department of Lauritzen Kosan, she
has literally been at the crossroads of
worldwide shipping activity, engaged
in everything from coordinating load-

ing and discharge ports and determining
cargo discharge temperatures to
appointing agents and updating schedules.
“Our academic classes in shipping
gave us a solid background in the
shipping business, but the actual job
training has definitely been ‘learning
by doing’,” she says. “After 1 August,
I know I’ll have the feeling of more
responsibility, but in reality I’ve been
allowed to do my job pretty independently
already.”
Her training has also included rotating
one-week stretches as a duty officer on
call for captains, agents, or charterers
who need to contact Lauritzen Kosan
outside of regular office hours. Usually
this isn’t a problem, but, she observes
that “if you’re very unlucky you might
have to work through the night, so it
can be demanding. But even as a trainee
you get to be the one who sorts things
out and solves problems, and that’s
exciting.” In the next few years Lauritzen
Kosan will be taking delivery of technically
advanced newbuildings from
Korea that have ethylene capacity,
and, along with everyone else, Monica
Christensen will be learning a new
and complex side of the business. “It’s
a challenge,” she says, “but that’s what
I love about this job. You never know
for sure what’s going to happen next.”
Christian Grønlund,
Assistant Chartering Manager,
Lauritzen Kosan
Christian Grønlund has already had
broad practical experience, even by JL
trainee standards. After spending his
first year in JL’s Bunkers Department
trading oil, he moved to Lauritzen
Kosan, where he has worked in both
the Operations Department and
the Chartering Department. As of 1
August he will continue with Lauritzen
Kosan as an assistant chartering manager.
“Basically, my job is to keep vessels
employed, to make sure they have
cargo to sail with,” he says. “You could
compare it to a hotel, which ideally
would maintain 100% occupancy. We
try to come as close to that as we can
for our ships, largely on contract, but
also through the spot market.”
He also confirms that the most intense
part of the training period was learn-
ing to cope with serious job responsibilities
right from the start. “This was
especially true when I first started with
the Bunkers Department,” he says.
“One day, about a month after I began,
I realized that – at age 21 – I was buying
oil for ten vessels and trading for a
total amount of about USD 10 million.
Let’s just say it both made me nervous
and really focused me on not making a
mistake.” Christian Grønlund credits
all his senior colleagues – but especially
his assigned mentors – for providing
the help and advice he needed. Asked
about the future, he points out that
there is always room for growth within
the shipping industry – and always
something more to learn. On that note,
he is soon travelling to Korea to get a
firsthand view of Lauritzen Kosan’s
newbuilding projects. The future looks
wide open.
17

18
It’s back to school
for experienced
purchasers
Two members of Lauritzen
Fleet Management’s purchasing
department earn marine purchasing
and supply diplomas
in year-long distance-learning
programme.
“Until now, the
shipping industry
has never had a
specific course for
maritime purchasing
and supply.”
Henrik Steffensen
Head of Purchasing Department,
Lauritzen Fleet Management
“Well, at least that’s behind me,” thinks
nearly every graduate who leaves
school and gets a job. Not necessarily,
as Henning Andersen (above left) and
Klaus Christoffersen, both seasoned
J. Lauritzen purchasers with years of
experience, recently discovered. During
the past year, they participated in the
first class of a groundbreaking new
course launched by the International
Marine Purchasing Association(IMPA)
in co-operation with the National Sea
Training Centre (NSTC) and Lloyds
Maritime Academy. After final exams
in July, both men emerged as successful
graduates with diplomas in marine
purchasing and supply.
The diploma is intended for all purchasing
practitioners in shipowning,
operating, and management companies
as well as all ship suppliers around the
globe. Comprised of eight discrete
modules, the course considers different
purchasing models, incorporates appropriate
marine insurance and English
law, and explains how they interface
with other areas such as finance and
administration. Except for the final
exam, all course work and testing is
delivered by distance-learning methods,
via the Internet.
A maritime focus
“Until now, the shipping industry has
never had a specific course for maritime
purchasing and supply,” says Henrik
Steffensen, head of purchasing for
Lauritzen Fleet Management and an
IMPA board member involved with
establishing the new programme.
“Most courses were set up with indus-
trial production companies in mind
and are more concerned with stock
planning, production planning, and so
on. This course was developed from a
strictly maritime point of view, so it’s
much more useful for shipping companies.
It offers a unique opportunity
to gain a recognised qualification in
marine purchasing and supply, which
is why we’re requiring all our current
and future employees to complete it.”
The various course modules were
created by industry experts with
specialised backgrounds as diverse as
a port captain with customs expertise
and a London law school professor.
Henning Andersen and Klaus Christoffersen
say that the course offered a
combination of benefits, both strategic
and operational. “With our past experience,
we were familiar with a good
deal of the basic information,” says
Klaus Christoffersen, “and that’s just
as well since some of the modules, like
the one covering English law, were
pretty demanding.”

An immediate success
The 2006-2007 course, the first one
of its kind, was even more successful
than anticipated, with 60 people signing
up. The second year, with more
than 40 people enrolled, has followed
suit. Participants in 2006-2007 were
chiefly from European companies,
but also included representatives from
companies in Japan, Hong Kong,
and the Middle East. In addition to
J. Lauritzen, other major Danish
shipowners such as AP Moeller Maersk,
Torm, and Scanlines took part.
As for the return to the routine of
studying and taking tests, it seems as if
little has changed. “It’s a good thing to
do the course together, the way Klaus
and I did,” says Henning Andersen.
“That way you’ve got someone to
compare notes with – and someone to
keep up with.”
Lauritzen
Tankers builds
in China
Newbuildings on order from
GSI offer attractive combination
of price and design.
Six new recently purchased medium
range (MR) product carriers are the
first vessels Lauritzen Tankers will
take delivery of in China. They are
to be built at Guangzhou Shipyard
International Co., Ltd. (GSI), which
is a part of China State Shipbuilding
Corp. (CSSC), South China’s largest
modern integrated shipbuilding enterprise.
“GSI is one of the best – and
best known – yards in China building
tankers. They focus exclusively on
product carriers, and count other
Danish shipping companies among
their customers,” says Erik Donner,
vice president of operations and
chartering for Lauritzen Tankers.
In the past, Lauritzen Tankers has
worked with shipyards in Korea and
Japan, but GSI was able to offer an
attractive combination of price and
design – all six ships will be built to
meet the latest IMO II/III regulations.
“This new design is 50,500 dwt.,” says
Erik Donner, “which fits with our
strategy of concentrating on the larger
end of the MR scale. Because these
ships have a larger cubic capacity
(58,000 cbm), they’re able to handle a
broader range of voyage combinations
than smaller MRs. This gives us greater
trading flexibility and potentially higher
earnings.”
The first of the ships will be delivered
in the fourth quarter of 2010, and the
remaining five will follow in 2011. All
six vessels will be owned and operated
by Lauritzen Tankers. This brings the
total number of ships on order to ten:
two smaller newbuildings are coming
from Korea early next year and two
from Japan in 2010. “In terms of
price negotiation and design flexibility,
it’s very important to have good longterm
relationships with shipyards,
which we’ve already established in
Japan and Korea,” says Erik Donner.
“We’re happy to be able to add GSI
to the mix. And we hope that this
new established relationship will
bring additional future newbuildings.”
“This new design is
50,500 dwt, which fits
with our strategy of
concentrating on the
larger end of the MR
scale.”
Erik Donner
Vice President, Operations and
Chartering, Lauritzen Tankers
19

Namegiving ceremonies
Mrs Karen Heering (far right) was sponsor
for the Freja Selandia on 28 March
2007.
As reported in this and earlier issues of
Lauritzen News, J. Lauritzen’s current
newbuilding programme is extensive,
including more than 50 vessels to be
delivered within the next couple of
years.
When a newbuilding is delivered, it’s
time for festive activities at the Far
Eastern shipyards involved. Each
delivery is celebrated at the shipyards
by representatives from the yard,
the shipowners, clients, business
associates, representatives from the
J. Lauritzen Group – and not least
by the sponsors.
Editors
Torben Janholt
Tove Elisabeth Nielsen
Jens Søndergaard
Facts on J. Lauritzen A/S
J. Lauritzen A/S
Sankt Annæ Plads 28
1250 Copenhagen K
Denmark
Tel: +45 3396 8000
September 2007
J. Lauritzen A/S operates globally through these business units: Lauritzen Bulkers, Lauritzen Kosan, and Lauritzen Tankers.
JL employs a staff of approximately 600 persons and together with partners/associates controls a combined fleet of about 200 vessels representing bulk
and gas carriers and product tankers.
For more details on JL’s business activities and on the fleet, see www.j-lauritzen.com
20 January 2007
Sofie Bulker delivered from the Shin Kurushima Dockyard.
Sponsor: Sofie Wegeberg, daughter of Carl Wegeberg, Vice President,
Lauritzen Bulkers–Tonnage Procurement.
19 February 2007
Freja Dania delivered from the Shin Kurushima Dockyard.
Sponsor: Tove Elisabeth Nielsen, Senior Vice President, J. Lauritzen.
12 March 2007
Belaia delivered from Imabari Shipbuilding Co., Japan. Sponsor:
Margarita Tidemand, spouse of Sverre Tidemand, Managing Director
and member of the BOD of Belships ASA.
28 March 2007
Freja Selandia delivered from the Shin Kurushima Dockyard.
Sponsor Karen Heering, spouse of Niels Heering, attorney-at-law,
member of the BOD of J. Lauritzen.
12 July 2007
Freja Fionia delivered from the Shin Kurushima Dockyard.
Sponsor: Cheryl Talam Hansen, spouse of Tom K. Talam Hansen,
Managing Director, J. Lauritzen Singapore.
23 July 2007
Perla Bulker delivered from the Tsuneishi Fukuyama Shipyard.
Sponsor Anne Bruun Larsen, Senior Operations Manager, Lauritzen Bulkers.
7 August 2007
Charlotte Bulker delivered from the Hakodate Shipyard.
Sponsor Charlotte Warsberg, daughter of Torben Warsberg,
Vice President, Lauritzen Bulkers-Chartering/Capesize.
Editorial support and design
Cross-Border Communications
Copenhagen
Lauritzen News is a semi-annual
publication. Reproduction
permitted only after agreement
with the editors.