Shipping A New Era - aegean marine petroleum network inc.

Aegean News 

T H E Q U A R T E R L Y M A G A Z I N E O F A E G E A N 

AUTUMN 2003 

Shipping 

On Course 

in Greece 

Aegean 

Honored 

in Washington DC 

DNV 

A Strong 

Greek Bond 

Fujairah 

Aegean Bunkering 

in the Middle East 

Plus 

Flows and Currents 

Aegean Update 

& Retail News 


A New Era 

∞ƒπ§π√ - π√À¡π√ 2003 AEGEAN NEWS 1

editorial 

The summer has been a period for Aegean to prepare 

for a variety of new challenges and new opportunities. 

New personnel in our shipping, retail, 

bunkering, and finance departments will strengthen 

and enhance our performance and capabilities to 

grow. In shipping, we are undergoing a process of 

renovating and expanding our department and fleet 

so that we are fully in line with new EU directives 

and the needs of our customers. 

Our new Fuel Quality Control Program (KEPEK) 

will ensure that the Aegean retail network maintains the highest standards in the 

market and responds fully to what our customers demand and deserve: the finest 

gasoline products in the country. 

We have appointed a new Internal Auditor to help ensure that our financial 

processes are done in accordance with the best international standards and best 

serve our customers and employees. 

In addition, the Aegean retail family is growing at a pace that is meeting our 

strategic targets for 2003. Soon, we expect the Aegean symbol to be seen in retail 

outlets throughout the entire mainland. 

And, we are undertaking a new important initiative in Serres: operating fuel 

stations within transit centers. 

Our growth demands that we have office facilities to serve each and every 

customer and associate in the best possible way. I am happy to report that we are 

in the final stages of constructing Aegean's new headquarters here in Piraeus. 

Our new nine-story office tower will proudly house all our Piraeus-based staff 

and will enable us to continue to grow as one of Greece's most dynamic energy 

companies. We expect to move into our new headquarters in early 2004 and 

look forward to meeting and greeting Aegean associates from all over the world 

in our new premises. 

Aegean 

Core Activities 

Retail 

➔ 

More than 295 gas stations throughout 

Greece proudly display the AEGEAN 

logo, and our network is growing every 

week. AEGEAN's market share in Greece 

is 4.5%. 


➔ 

AEGEAN manages a fleet of 26 tankers, 

ranging from 3,500DWT to 100,000 

DWT, that transfers and delivers oil to 

our clients throughout the world. All 

ships meet ISM standards. 

Bunkering 

➔ 

In Piraeus, Gibraltar, Venezuela, and 

the United Arab Emirates, AEGEAN is a 

leader in providing the best bunkering 

services available. In Piraeus, AEGEAN 

is the market leader in bunkering. 

Agency Services 

➔ 

Ships from throughout the world rely 

on our agency services at Piraeus and 

Gibraltar 24/7, from loading and discharging, 

to spare parts and supplies. 

Lubricants 

➔ 

AEGEAN exclusively stocks and sells 

ChevronTexaco automotive lubricants 

throughout its retail network. 

DIMITRIS MELISSANIDIS 

AUTUMN 2003 AEGEAN NEWS 1

contents 

4 

Aegean's new 

headquarters 

in Pireaus 

12 

Competition for ships 

sailing under a Greek 

flag is expected to 

increase from 2005 

with the enlargement 

of the EU. 

Autumn 2003 

Aegean News is published 

quarterly by AEGEAN 

MANAGING EDITOR 

Raymond Matera 

CONTRIBUTING EDITOR 

George Fintikakis 

LAYOUT AND PRODUCTION 

Multimedia S.A. 

PRINTING AND BINDING 

A. Psillidis & Co. 

OWNER 

Aegean 

51 Akti Miaouli Street 

185 36 Piraeus, Greece 

Tel: +30 210 429 2530 

Fax: +30 210 429 3074 

E-Mail: info@aegeanoil.gr 

Internet: www.aegeanoil.gr 

Comments and suggestions 

are welcomed. 

Aegean News is free of charge 

and is available, subject to 

availability, to any interested person 

or organization. 

8 

Minister of Merchant Marine 

George Paschalidis will be 

steering coastal navigation 

policy toward enhanced 

performance in a competitive 

but regulated environment. 

4 AEGEAN UPDATE 

6 FLOWS & CURRENTS 

Trends and News in the oil and energy fields 

8 SHIP AHOY! 

CHANGES IN THE MARKET 

The Ministry of Merchant Marine: Policies 

10 SHIPPING 

New Standards, New Rules 

12 SHIPPING KEEPS ITS COURSE 

IN GREECE 

16 AEGEAN SHIPPING 

Captain Petros Paleokrassas Heads 

Aegean Shipping 

17 FUJAIRAH 

Aegean Bunkering in the Middle East 

18 RETAIL 

KEPEK Stands for Quality 

19 AEGEAN MARINE 

Aegean Marine Petroleum (AMP) 

A Service and Growth Leader (2003) 

23 

20 AEGEAN AWARDS 

Aegean Oil Honored in Washington DC 

21 STATION OF THE MONTH 

23 AEGEAN ROUTES 

Aegean Car Wash: A New Initiative 

24 FORUM 

DNV: Strong Bonds with Greek Shipping 

26 GANGWAYS 

INTERTANKO on the Energy Environment 

27 EXPLORATION 

The Story of Petroleum 

28 MARITIME TRADITIONS 

The Ancient Ships of Santorini 

29 THE 2004 OLYMPIC GAMES 

The Ancient Games 

30 TRAVEL 

Kalavryta: The Birthplace of Modern Greece 

31 THE AEGEAN IMAGE 

Products that say "We're different" 

32 AEGEAN PROFILE 

Aegean is preparing to 

launch a new initiative 

in the Greek market 

that will radically 

change the concept 

of "washing the car." 


AEGEAN UPDATE 

Aegean—New Headquarters 

Aegean is preparing to move into its new, company-owned premises, a custombuilt 

nine-floor, 2,600 m 2 office building in the heart of Piraeus. 

According to Aegean President Dimitris Melissanidis, the new headquarters of 

Aegean should be ready in January, 2004. "As the company expands, Aegean 

needs to have a modern, fully-equipped headquarters with state-of the-art installations, 

including our IT infrastructure, our work spaces, and all our service facilities. 

We are building these new headquarters to meet our new challenges and to 

serve our customers with total dedication and efficiency. It is an investment in our 

staff, our clients, and our future," said the president. 

The new building will combine management offices with open space work stations, 

reception areas, and fully dedicated floors for each of the Group's operations: 

Aegean Oil, Aegean Shipping, Aegean Agency, and Aegean Marine Petroleum. 

In addition, an environmental company will be headquartered in the 

building, which will feature a cafeteria, a staff gymnasium, a small cinema, reception 

areas, conference rooms, visitors' areas, and an ATM. Technical support, 

security, logistics, accounting, and maintenance will be housed in dedicated and 

specially designed areas. Aegean's new headquarters will be located at 42 

Hatzikyriakou Street in Piraeus. 

Aegean Enters New Sector 

Aegean Oil is entering a new sector by operating 

fuel stations within transit centers. The 

move started in Serres, where the company 

won the tender for the exclusive supply of lubricants 

and fuels at a fuel station located 

within a new transit center for heavy vehicles 

in the prefecture. The €1.1 million development, 

on seven hectares alongside the Serres 

regional freeway in the Krinos area, will consist 

of parking facilities, storage spaces, KTEL, 

and refreshment areas. "Afetiria A.E." will be 

managing the transit center. The municipality 

of Serres, the intercity KTEL bus company, and 

the local Transport Company Association each 

New Manager 

at Aegean Shipping 

Captain Petros 

Paleokrassas was 

named manager of 

Aegean Shipping. 

Mr. Paleokrassas 

began his new 

responsibilities at 

the end of June, 2003. For an interview 

with Mr. Paleokrassas, See inside. 

Anna Sampson Weds 

Eleftherios Siasakos 

Recognizing "family" 

as the key foundation 

on which a healthy society 

is based, Aegean 

management supports 

the institutions of family 

and motherhood. 

Over the past three 

years, 10 Aegean associates have married, 

most of them women, and we hope that other 

single, young men and women will follow 

their examples. 

Anna Sampson, a new member of Aegean’s 

Bunkering Team, tied the knot with Eleftherios 

Siasakos, a Glaxo executive. The wedding 

took place on Sept. 20 at St. Fotini’s Church in 

Nea Smyrni. George Melissanidis stood in as 

best man. The wedding reception was held at 

the Island seaside club/restaurant and was 

attended by 300 guests, including Dimitris 

and Jacob Melissanidis and their families. 

hold a 25% share in the company, while urban 

transport companies of the prefecture hold 

20% and the local council the remaining 5%. 

Aegean, EKO, Shell, TEXACO, Avin and BP all 

took part in the first phase of the tender. 

Aegean won the tender to construct the fuel 

station and lubrication center, after bettering 

4 AEGEAN NEWS AUTUMN 2003

New Lubricants Manager 

at Aegean Marine Petroleum S.A. 

Dimitris Bakinezos 

was named Lubricants 

Manager at 

Aegean Marine Petroleum 

S.A. Mr. 

Bakinezos is a mechanical 

engineer 

graduate of the University of Illinois, 

Chicago U.S.A. He worked for four years 

in marine projects/marketing for Technava 

S.A, the biggest marine representation 

company in the Eastern Mediterranean. 

He then became the marketing/product 

manager of Technellas in 

New Manager 

at Aegean's Gibraltar Bunkering Station 

Kyriakos Maragoudakis is Aegean's new manager at its Gibraltar Bunkering Station. 

Captain Maragoudakis, who is from Athens, has received his first class status 

as Captain. He has attended numerous training courses and seminars since 

his career began and is a member of MENSA, the international society for people 

with high IQ's. Captain Maragoudakis previously worked at Hellenic Slops, 

Aegean Shipping, Avin Corporation, and other companies in Greece. 

offers made by Shell and TEXACO, which participated 

in the last phase of the tender. 

Aegean undertook the construction and operation 

of the fuel station, although Texaco Lubricants 

will be available at the lubrication center. 

The project is expected to relieve traffic congestion 

in Serres considerably. The daily passage 

of heavy vehicles through the center of 

the city will cease, while substantial areas 

the industrial sector. Ten years ago he 

joined the marine department of Mobil 

Oil Hellas, and was involved in the sales 

and marketing of marine lubricants in 

the Greek market. In 1999, he was transferred 

by Mobil to London, taking the 

position of ExxonMobil marine lubricants 

sales manager, mainly responsible 

for Greek accounts in the United Kingdom 

and a part of the Greek marine 

business sector that reported to the London 

office. On August 1, 2003, Mr. 

Bakinezos became Lubricants Manager 

of Aegean Marine Petroleum S.A. 

New Internal Auditor 

Konstadinos Dimakos assumed duties of Internal Auditor at 

Aegean in June. Mr. Dimakos graduated from the Athens University 

of Economic and Business with a specialization in financial 

analysis (balance sheet analysis and tax issues). He has extensive 

experience, since 1979, as credit controller and account 

manager in large manufacturing, commercial, and shipping companies 

and as auditor of the State Corps of Auditors. More inside. 

within the city center used by these vehicles 

for parking will become available. The land 

has been allocated, the construction of the 

storage spaces has been completed, the 

parking facilities are already available, and 

the fuel station will soon be open. 

The transit center should be complete and in 

full operation within 2003, becoming a model 

for other prefectures in the country to follow. 

Aegean's Expanding 

Retail Network 

Aegean is expanding its retail network 

in Greece by several stations per month. 

Listed below are stations that have joined 

the Aegean network during the past 

several months. 

Ampeli, Serres—Eleni Sidiropoulou 

Koila, Kozani—Peristera Sirakou 

Pireaus—Athina Zorbala 

Koudounia, Drama—Karayiannidis S.A. 

N. Moudania, Halkidiki 

Stelios Mantzinas-Moustakas 

Meg. Avlaki, Lefkada—Efstratios Gazis 

Marathoupoli, Gargalianoi Messinia 

Vassilios Kafkis 

Ag. Anagyri—Savvas Vavassis 

Polykastro—Mihail Hasekidis 

25 t h km Thessaloniki-Veria Rd. 

Dimitra Messidi, Argyris Messidis 

Portaria, Halkidiki—Fotis Tsarouhas 

Xyrokampi, Lakonia—Yiorgos Danos 

8 t h km Nat'l Rd. Agrinio-Amfilohia 

Antonis Karamitros 

8 t h km Leivadias-Delfon Rd. 

Ioannis Stathakos 

Ag. Kon/os, Fthiotida—A. Karapiperis 

G. Filon O.E. 

Skala Rahoniou, Thassos 

Apostolia Apostoloudi 

Metagitsi, Halkidiki—Zafeiris Triantafyllos 

Areopoli, Lakonia—Ilias Kasidakos 

Kato Tithorea, Fthiotida—Dimitris Moraitis 

Serres—Olga Christoula 

Kallithea—Natalia Petrova, Konst. Fragos O.E. 


FLOWS & CURRENTS 

Siberian Oil Wealth 

Has Consequences 

The vast amounts of oil in Siberia are 

taking a toll on the local landscape, as 

environmental laws have been scrapped 

and the rush to exploit the reserves is 

leaving ugly scars in a virgin wilderness. 

Authorities acknowledge that 

oversight is lacking throughout the region 

and new legislation must be enacted 

to ensure that the oil wealth can 

be extracted without a negative effect 

on the environment. Russia has been 

rapidly expanding its efforts to supply 

the world with oil in an attempt to 

earn badly needed foreign currency. 

Sulphur Warning 

According to recent reports, despite the likely implementation of European regional caps on 

sulphur content of marine fuels, ship operators need to remain vigilant when dealing with 

high sulphur fuels. Claude Ourvier-Buffet of Total Lubmarine says: " It seems odd to be asking 

what effect very high sulphur fuels will have on engine lubrication. Yet, despite an imminent 

new worldwide sulphur cap of 4.5% and lower regional limits of 1.5% or less, there are 

areas of the world where fuel sulphur content is climbing." Mr. Ourvier-Buffet suggests that 

engineers increase the monitoring of engine performance and of the condition of piston 

crown and the ring pack through the scavenge ports. Feed rates, he says, should not be increased 

initially, as this may lead to increased deposits on the top land and also in the 

grooves. "If high sulphur is to be burned regularly, then the best answer may be to switch to 

an oil with a BN higher than 70. This should only be done after monitoring the engine burning 

the higher sulphur fuel and after discussions with engine manufacturers." 

Romania's Fleet Suffering 

Before the fall of communism, Romania had the world's third largest merchant 

fleet in terms of capacity. The country had almost 300 ships totaling 5 million 

DWT. Today, Romania has 24 ships owned by a few private firms: five bulk 

carriers, 10 general cargo ships, one training cargo, six Ro-Ro vessels and two 

single-hulled tankers. The poor privatization process has led to the current 

state of affairs, which the county must rectify if it hopes to meet criteria for 

EU membership in the near future. 

Call for Increased Greek-Bulgarian 

Energy Cooperation 

During a visit to Bulgaria to inaugurate a refurbished 

steel mill acquired by a Greek company, 

Economy and Finance Minister Nikos Christodoulakis 

said that the two countries should expand 

their economic relationship beyond 

trade. After speaking with Prime Minister 

Simeon Saxecoburg, the minister said: "We 

discussed several issues, especially issues 

concerning cooperation between the two countries 

on transport, energy, and communications networks." Greece is interested in participating 

in the privatization of the Bulgarian electricity distribution network. 

The primary issue of importance, however, is the construction of an oil pipeline between Burgas 

in Bulgaria and the northern Greek port of Alexandroupolis. The pipeline will provide Russia 

with an outlet for its oil from the Caspian Sea region and would compete with the Baku- 

Tswibilsi-Ceyhanb pipeline to Turkey, now under construction. 

More than 1,500 Greek businesses are active in Bulgaria, with a total investment of more than 

€1.6 billion. 

Inter-European 

Transport Networks 

The European Commission announced 

the Inter-European Transport Networks 

plans, which include the joint funding 

of two projects in Greece or partly in 

Greece. The rail line connecting the 

RIgoumenitsa port with Thessaloniki and 

Kalamata via the Rio-Antirio Bridge will 

be funded in part by the EU and has a 

completion deadline in 2014. The second 

project involves the construction 

of the Athens-Sofia rail line, which has 

a completion deadline within 2015. 


194,000 People 

Employed in Oceangoing Shipping 

A study done by Pireaus 

University shows that 

Greece's oceangoing 

shipping sector employs 

around 194,000 people, 

accounting for one 

of the country's major employers. The 

study, the first of its kind ever undertaken, 

stated that salaries to those employed 

in the sector accounted for 8.3% 

Single-Hull Effects 

New EU legislation mandating the retirement of single-hull tankers is having a significant ef- 

on the Greek fleet. According to Reuters, of the 488 Greek-owned tankers slated for re- 

9fect 

tirement under the first set of rules for single-hull ships, 321 will be affected by the new legislation, 

which will curtail their lives from bewteen one and five years. Quoting Nicolas 

Efthymiou, president of the Greek Union of Shipowners, the report said "We are either going 

to have a massive scrapping of ships, with no commensurate availability of new buildings and 

therefore an upsurge in freight rates, or countries in the Far East and Latin America will feel 

like the dumping ground of ships that the U.S. and Europe don't want." 

Drilling in Greece 

of all Greek salaries in 

2000. Of the 194,000 

employees, 60,000 are 

recorded as seafarers, 

11,000 are employed in 

shipping companies, and 

123,000 are in the shipping service sector. 

The total tax revenue contributed to 

the Greek coffers in 2000 from shipping 

amounted to more than €255 million. 

The Regal Petroleum Company of Australia is said to be ready to invest U.S. $30 million 

for initial drilling for oil in the Prinos field off the coast of Thassos. Kavala Oil, a municipally-owned 

company in charge of drilling, hopes to expand its drilling in order to increase 

production beyond the current 3,800 barrels per day. Studies indicate there are oil 

deposits at a depth of about 3,000 meters in the region and the cost of drilling is said to 

be about U.S. $8 million. 

Marine Pollution—A Criminal Offence 

From now on, polluting the sea will be considered a penal 

offence, according to EU regulation 417/2002. Every captain, 

shipowner, administrator, charterer, or representative 

of a ship classification society that is found guilty, either 

through his/her actions or negligence, of polluting the marine 

environment, will be jailed. Furthermore, the act will 

be considered a felony. Over and above the penalties, the 

directive makes provisions of imposing a permanent or provisional prohibition of commercial 

activity, as well as prohibiting access to public assistance or subsidies. With this directive, the 

EU puts in place regulations equally as strict as those that apply in the United States for laying 

up single-hulled tankers. 

Texas City 

Considers Drilling 

on Municipal Land 

The Fort Worth city council voted to 

consider allowing drilling for oil and gas 

on city-owned property. Oil and gas 

drilling, city politicians say, which produced 

much of the wealth in Fort Worth 

today, could provide a new revenue 

source for the cash-strapped city. "It's a 

very good opportunity for revenue and 

for the city to provide services for our 

citizens," he said. Just one "very good" 

well could generate $2.2 million over its 

expected eight-year lifetime, and one 

"poor" well could generate $376,000 for 

the city, according to officials. 

Private companies have shown renewed 

interest in recent years in drilling in the 

Barnett Shale, a vast underground natural 

gas reserve that is believed to be 

one of the largest in North America. 

The increased interest in urban drilling 

has sparked opposition from some residents 

and led to regulations in some 

cities to restrict noise, ensure safety and 

attempt to prevent environmental damage. 

New Fort Worth regulations went 

into effect last year regulating distance, 

insurance, landscaping, safety, noise 

and operating hours in some areas. Fort 

Worth officials said they get inquiries 

nearly every day from companies interested 

in drilling on city property.The 

city likely would lease city property to 

private drilling companies. In return, 

it would receive lease bonuses, royalties 

and annual revenue, officials said. 


COASTAL NAVIGATION 

Ship Ahoy! 

Changes in the Market 

In light of a free market in 2004, the Minister of Merchant Marine George Paschalidis 

will be steering coastal navigation policy toward enhanced performance in a competitive 

but regulated environment. 

The Greek coastal navigation 

market will see dramatic changes 

from the beginning of 2004, after 

the so-called "cabotage" is lifted. 

This means that other European coastal 

navigation companies will be given the 

opportunity to compete in the domestic 

market, and procedures will be kept 

short with very little redtape. 

At the same time, the intervention 

rights of the Ministry of Merchant 

Marine (MMM) that apply today with 

regard to determining fares, mandatory 

discounts, and the make-up of the 

crew will almost completely cease to 

apply. State intervention will be restricted 

to issues concerning safety, 

and may include enforcing obligations 

by companies to observe schedules. 

In these new waters, Minister Paschalidis 

has a challenging task ahead of him: 

on the one hand, he is asked to facilitate 

the market to operate under the terms of 

free competition and lift all obstacles; on 

the other, he cannot abandon the public 

policy followed today by the ministry 

that protects the interests of the more 

vulnerable social classes, such as capping 

increases to third-class tickets. 

From the time he took office, the 

minister's position has been clear: the 

MMM will intervene when the prices 

of economy class tickets are excessively 

high, and that mandatory discounts 

on tickets will continue to apply. 

This position does not sit well with 

Greek coastal navigation companies, 

who are pressing the government 

strongly for a total free market "here 

and now." With regard to third-party 

tax, which increases fare prices by 35- 

41%, the companies have resorted to 

the responsible public body. As an executive 

of a large coastal navigation 

company points out, "if there were no 

third-party tax, we would be able to 

drop fare prices by about 20%." However, 

this is not the only bone of contention 

between the MMM and the 

coastal navigation companies. 

A Free Market "Here and Now" 

Capping economy class ticket prices is 

another heated topic. At the beginning 

of last summer, a 2.44% "cap" was imposed 

on the increases the coastal 

navigation companies wanted. This 

was probably the last time that the 

state could intervene. 

The companies are pressing for the 

abolition of most mandatory discounts 

on tickets, or at least subsidizing them, 

which has been accepted to some extent 

by the MMM. 

The make-up of the crew is another 

issue exacerbating relations between 

the MMM and the companies. The 

companies claim that the government 

only has the right to prescribe the 

number of employees whose duties are 

related to safety of the ship at sea, and 

to the quality of services provided. 

Coastal navigation companies have 

declared that should the MMM continue 

to intervene in their financial 

plans after the first of 2004, they will 

resort to the State Council and to European 

Courts. In the framework of a 

free market, the companies envision 

freedom in scheduling itineraries as 

they see fit on routes of their choice. 

“From the beginning of 2004, state intervention will be 

restricted to issues concerning safety, and may include 

enforcing obligations by companies to observe schedules.” 

The only type of government intervention 

they are willing to accept 

would be on issues related to safety. In 

the matter of withdrawing ships above 

a certain age, after contesting the government’s 

decision to lower the age of 

ships to be withdrawn from 35 to 30 

years, they await an EU court decision. 

On his part, the minister has made 

clear from the outset that the free market 

will be put into effect with the interests 

of the public at heart. However, 

sources say that he has asked for the involvement 

of the Marine Policy Council 

in order to discuss a proper strategy. 

From the beginning of 2004, the 


free market in coastal shipping will 

compel companies operating in the 

Aegean to use discounts willingly in 

their competition drives. The first signs 

of this appeared on the Piraeus-Hania 

route, when ANEK lines offered free 

passage for cars on their early morning 

weekend crossings. It is too early to 

determine which coasting company 

has come out on top. It is certain, 

though, that consumers, Greek and 

foreign, reap the fruit of a competitive 

market: discount policies, bonuses, and 

to a certain extent, better services. 

"Two-speed" Coastal Navigation 

The government is intervening in another 

important area that concerns less 

frequented routes. The picture we see 

today of coastal navigation in the 

Aegean is "two-speed": on the one hand 

we have the popular routes, teeming 

with modern high-speed vessels; on the 

other, we have the less-profitable routes 

to smaller islands, covered by old coasters, 

which chug along to fill connection 

voids to remote islands, and which benefit 

from subsidies that have tripled in 

the last two years. 

The problem lies in the 23 routes the 

Ministry of the Aegean is responsible 

for, and the 12 routes the MMM is responsible 

for. All these are subsidized, 

and this makes the two ministries optimistic 

that they will be covered when 

the relevant tender is announced. 

Hefty subsidies lure shipowners to 

consider less-profitable routes. In the 

last two years, subsidies shot up from 

€11.7 million to €35.2 million. Today, 

according to sources, there is a deficit 

of around €11 million (3.7 billion 

drachmas) in financing these routes, a 

deficit that the Ministry of Finance 

has vowed to cover immediately. 

However, it is an open secret that 

certain coastal navigation companies 

do not schedule crossings on certain 

routes to compel the relevant ministry 

Minister of Merchant Marine George Paschalidis 

to classify the route ‘barren’ and therefore 

to subsidize crossings. Furthermore, 

after receiving the subsidies in 

question, they proclaim engine failure, 

exempting them from covering the 

subsidized part of the route, especially 

during winter months when demand 

for travel is very low. 

For example, if a ship covers the 

route Piraeus – Paros – Naxos – Ios – 

Santorini – Anafi and the subsidized 

part of the route is between Santorini 

and Anafi, the ship will stop in Ios and 

proclaim mechanical failure. 

Scheduling New Ships 

For all these reasons, the Ministries of 

Finance, the Aegean, and Merchant Marine 

are promoting a program that will 

increase the number of crossings toward 

remote islands, reconnecting them to the 

mainland, and boosting tourism. 

The new program includes the gradual 

introduction of large ships (over 100 

meters long) on 20 less popular routes in 

the Aegean, ships with modern specifications, 

high speeds (20-22 knots), 

sufficient carrying capacity (800-1000 

passengers, 400 cabins, 140-170 vehicles), 

and capable of withstanding winds 

as strong as 9 on the Beaufort scale. 

Government subsidies will be doubled 

to put the new program into effect, 

and for this reason it is to be financed 

through long-term concession 

contracts (PFI type). 

In this way, the state will provide 

the investor with an annual lump sum, 

subject to the lowest official tender, 

which will cover operating expenses 

that income forecast by servicing these 

routes has not covered. 

The First Crossing 

After research carried out by the Ministry 

of the Aegean, in cooperation with 

the MMM and the Ministry of Finance, 

it was decided that the program should 

undergo a trial run on three routes 

connecting the islands of the Northeastern 

Aegean with the mainland and 

the islands of the Dodecanese. 

The routes are: Alexandroupoli- 

Lemnos-Mytilini-Chios-Samos-Kos- 

Rhodes (one crossing per week); Samos- 

Chios-Mytilini-Lemnos-Volos (one 

crossing per week); and Samos-Chios- 

Mytilini-Lemnos-Kavala (2 crossings 

per week). In the spring of 2004, the 

contract is expected to be signed, and the 

first crossing to be made during 2004. 

The Delays 

In the last eight months, more than 30 

delays and changes to the forecast 

schedules were recorded on these three 

routes because of the frequent inability 

of older ships to withstand bad weather 

conditions. The program is expected to 

develop gradually over the next four 

years to cover the remainder of lesspopular 

routes in the Aegean, rendering 

the current system of annual tenders for 

contracts unnecessary by 2008. 

It is common knowledge that most of 

the smaller islands in the Aegean are 

cut off from their administrative centers. 

Milos, for example, lies 40 miles 

from Syros, but it is much easier to travel 

to Piraeus to get to Syros than to wait 

for a boat going to Milos (usually making 

one crossing a week). Kastelorizo 

faces similar problems. 


SHIPPING 

New Standards, New Rules 

The European Union has taken strict measures to protect the marine environment after the 

extensive damage caused by the "Erica" and "Prestige" tanker accidents. These measures 

have met strong opposition by member states and shipping circles, who claim that their 

shipping interests will be harmed. 

Greek shipowners now place 

their hopes on India, Brazil, 

and Japan, which have appealed 

to the International Maritime Organization 

(IMO) to reject the directive of the 

European Union that calls for the withdrawal 

of all single-hulled tankers. 

The EU directive (417/2002) that 

roused strong opposition among the international 

shipping community calls for 

the withdrawal of single-hulled tankers 

starting from 2005 instead of 2010, as 

was stated in a previous directive. 

Thus, older and more fragile singlehulled 

tankers constructed before 

1982 will be withdrawn in their 23rd 

year instead of in their 28th, which 

applied until now. Other categories of 

large single-hulled tankers will be 

withdrawn before 2010. The transportation 

of heavy petroleum products 

by single-hulled tankers will be prohibited 

with immediate effect. 

The objections of India, Brazil, and 

Japan were voiced and discussed at an 

IMO committee meeting about the 

EU measures at the beginning of the 

summer. The IMO recommended an 

amended proposal plan that will be 

discussed in December. 

If the Community directive is finally 

approved by the IMO, it will apply 

internationally. If not, then all singlehulled 

tankers not under EU flags will 

be prohibited from entering European 

waters from 2005. 

More specifically, the IMO committee 

proposal plan provides for: 

● The withdrawal of category 1 tankers 

in 2005 instead of 2007. This applies 

to tankers that were constructed 

before the international Marpol 

agreement was signed. The agreement 

outlines the terms and conditions 

for safety on board and at sea, 

and includes the protection of the 

marine environment, although many 

believe it needs urgent revision. For 

many decades, the shipping industry 

has founded its structures and operations 

on this agreement. 

● The withdrawal of category 2 and 3 

tankers in 2010 instead of 2015. 

This applies to tankers that were 

constructed after the Marpol agreement. 

An extension until 2015 is 

proposed for ships younger than 20 

years or until these ships reach a 

specific age (20, 23, or 25 years). 

Who is Affected 

The effect this will have on shipping is 

enormous, hence the fierce opposition. 

Brazil will be forced to withdraw most 

of the 400 tankers sailing under each 

flag. Japan will have a significant part of 

its fleet out of operation since it would 

not be able to travel to the EU. In this 

event, it is almost certain that countries, 

Profile of Greek Management Companies (729 Companies) 

7 

10 

12 

11 

17 

7 

7 

38 

7 

1 

6 

2 

Fleet size: 25+ vessels | No of Companies: 25 

% of total of Greek Companies: 3.48% 

Fleet size: 16-24 vessels | No of Companies: 31 




Vessels: 0-9 years of age Vessels: 10-14 years of age Vessels: 15-19 years of age Vessels: 20+ years of age 


companies and will be a deterrent for 

the correct maintenance of older ships. 

There is a risk that ships will be 

driven out of the Greek register, contrary 

to the wishes of the Greek government, 

which wants to keep capable 

administrators, enterprises, and seamen 

within its borders. 

“The EU directive (417 / 2002) that roused strong opposition 

among the international shipping community calls for 

the withdrawal of single-hulled tankers starting from 2005 

instead of 2010, as was stated in a previous directive.” 

shipping organizations, and even individual 

shipowners will resort to European 

Courts for hefty compensations. 

Repercussions for Greek Shipping 

and Reactions 

With respect to Greece, by 2010 the 

revised EU directive will send 439 

Greek-owned single-hulled tankers 

into "retirement," 88 sailing under 

Greek flag and 351 under foreign flag. 

For this reason, representatives of the 

Greek shipping community are putting 

together a strong case against the directive 

in question. Their argument: 

If it is put into effect by 2005, it 

will lead to the premature withdrawal 

of relatively young ships. These ships 

were constructed after the Marpol 

agreement and, although they are single-hulled, 

have higher safety specifications. 

Most of them are under 15 

years old, and have not yet made the 

returns on investment expected since 

their construction. 

The accumulation of cargo that will 

not have means of transportation because 

of a shortage of ships, and the 

compulsory use of double-hulled ships 

will push up the price of transporting 

oil, a price increase that will be borne 

by the European consumer. 

The proposals will have a negative 

impact on the balance sheets of many 

What the Opposition Says 

The other side argues that in recent 

years, huge investments were made to 

construct a modern fleet of doublehulled 

ships that remain to a large extent 

underutilized because they cost 

more to use than single-hulled tankers. 

With respect to applying a stricter 

institutional framework on an international 

level, experts in shipping criticize 

the slow decision-making processes 

of the IMO. 

They point out that IMO procedures 

allow for extensive dialogue between 

member-states, which precede 

any shipping measures taken of an international 

scope, and in the past, they 

have lasted up to two years. 

They believe that, even if talks did 

reach a conclusion between the countries 

in question, an 18-month margin 

would have been granted to the shipping 

community to adapt to new regulations. 

According to statistics by Clarkson, in 

2002, the international tanker fleet 

comprised 7,320 tankers, 5,243 of them 

single-hulled. Of the remaining 2,077, 

575 had capacities below 10,000 tons. 

18 

7 

29 

84 

10 

6 

23 

119 

11 26 

17 

256 







Based on the Greek Shipping Directory | May 2003 


SHIPPING 


Keeps its Course in Greece 

Responding to the pressures of heightened competition in the shipping industry, Greek 

shipowners ordered 164 modern large-tonnage ships during 2003. 

Orders for new ships by Greek 

shipowners have reached record 

highs this year. According to 

the ship broking agency, N.Cotzias, 

Greek shipowners have ordered more 

ships during the first seven months of 

2003 than they ordered during the 

whole of 2002. 

The value of the new orders is estimated 

to be over $1 billion. Included in 

the orders are 117 new tankers for the 

transportation of crude oil and its byproducts. 

Maintaining first place in 

European commercial shipping and a 

17.8% tonnage share of the international 

market is not an easy task for 

the Greek-owned commercial fleet. 

Competition for ships sailing under a 

Greek flag is expected to increase from 

2005 with the enlargement of the EU. 

The addition of 10 countries is a challenge 

as well as a threat for Greek shipping, 

since it opens new markets while at 

the same time allows in new competitors. 

It is an open secret that Cyprus and 

Malta are already considered important 

stakeholders, although a large part of 

their fleet depends on Greek shipping. 

Today, Greek companies own about 

one-sixth of the international merchant 

fleet. With 3,504 commercial 

ships of all types, 60% of them 

tankers, Greek shipowners lead the 

shipping industry. Greece is also the 

frontrunner in Europe, with 1,274 

ships under Greek flag constituting 

23% of the European fleet. 


Greek shipowners state that keeping 

the level of competition high among 

ships sailing under the Greek flag, 

among other things, demands low labor 

costs. This necessity has resulted 

in companies avoiding the Greek shipping 

register during the last 10 years. 

The National Shipping Register 

shows that only 36% of ships owned by 

Greek-owned companies are registered 

in Greece. The deficit this creates for the 

Greek economy is not negligible. The €7 

billion that Greek commercial shipping 

brings to government coffers would be 

over €20 billion if all Greek-owned 

ships sailed under the Greek flag. 

Between 1994 and 2002, the total 

number of ships registered on the national 

register dropped significantly— 

649 ships abandoned the Greek flag. 

The encouraging fact is that since last 

year, Greek shipowners are showing 

much more interest in returning to 

the Greek flag. During 2002, out of 

the total number of Greek-owned 

ships de-registering from the national 

register, only 10 preferred to sail under 

a flag of convenience, while the remainder 

went to the scrap yard. In the 

same year, 140 more ships, with a total 

capacity of 4,71,000 tons, registered 

in the Greek National Register. 

For the Ministry of Merchant Marine, 

"what counts most is not so much 

the number of ships, but the fact that the 

ships that chose to sail under the Greek 

flag in 2002 are on average five years 

old, as opposed to the average age of the 

ships that left the registry, which was 23 

years." The strategy of the Greek government 

is not to win back Greek-owner 

vessels en mass but to support competition 

and to maintain its leading position 

in EU marine transport. 

Lifesaver for the Economy 

Greek shipping is a "lifesaver" for the 

economy, its growth, and for employment. 

Without funds generated by 

shipping, the balance of payments in 

2002 would have shown a deficit of 

over 19% more for current transactions. 

At the same time, oceangoing 

shipping employed 192,000 more 

people, directly and indirectly, between 

2000 and 2002. Without these 

jobs, employment would have been 

6.2% less than it currently is. 

European Shipping in Numbers 

Number of ships Tons Gross Capacity in tons DW 

AUSTRIA 7 32.742 42.223 

BELGIUM 10 7.295 11.631 

FRANCE 195 4.164.052 6.015.918 

GERMANY 542 6.157.397 7.361.541 

DENMARK 449 6.886.624 8.628.142 

GREECE 1.274 28.383.650 47.885.277 

IRELAND 44 227.670 150.757 

ICELAND 14 8.937 6.288 

SPAIN 233 1.693.092 1.911.476 

ITALY 847 9.199.516 9.924.559 

LUXEMBOURG 56 1.351.547 1.971.302 

UNITED KINGDOM 437 5.297.181 4.481.974 

NORWAY 1.392 21.394.298 32.348.779 

HOLLAND 783 4.965.000 4.367.000 

PORTUGAL 168 1.070.352 1.673.437 

SWEDEN 357 2.881.090 1.775.637 

FINLAND 167 1.414.271 1.038.678 

TOTAL 6.975 95.134.714 130.594.619 

One in Four Seamen 

is a Foreigner 

According to a report by European Community 

Shipowners Association (ECSA), one in 

four seamen working on commercial ships 

that sail under a Greek flag is a foreigner. 

Based on statistics in 2002, foreign employees 

on the Greek shipping register numbered 

7,160 and Greek seamen 17,200. In 

total, 55,000 Greek seamen, most of them 

in oceangoing shipping and on high salaries, 

are employed on Greek-owned ships. About 

1,000 work at the offices of shipping companies, 

and roughly the same number work 

in services supporting the industry. 

The country that is facing an irreversible 

trend in their naval human resources is Norway. 

According to the same report, in 2002, 

for every Norwegian seaman there are two 

foreign seamen. Norwegian seamen employed 

last year numbered 12,500 compared 

with 23,500 foreigners. 

Holland has recorded a balance, with 8,940 

Dutch seamen and 8,200 foreigners. The 

country with the most seamen is the U.K., 

with 20,500 seamen and with a very small 

percentage of foreign seamen on ships sailing 

under the Union Jack. 

In total, the European shipping industry employs 

over 2 million European citizens (including 

Norway and Iceland). Of those, 

190,000 are seamen, and 70% of these are 

European citizens. 

Manning Greek-owned ships with foreign 

hands significantly lowers operating costs. 

However, lack of experience and professional 

training negatively influences the competitiveness 

of the commercial fleet. Referring 

to the relationship between competitiveness 

and crew members, Greek 

shipowners stress that "for Greek shipping 

to continue to exist, there must be welltrained 

Greek officers. For Greek officers to 

exist, there must be ships sailing under the 

Greek flag, which in turn will exist only if 

they are competitive." 

Source: Lloyd’s Register of Shipping, European Community Shipowners Association 


SHIPPING 

Shipping also creates and sustains a 

large number of companies servicing its 

needs. Doctors issuing health certificates 

to Greek seamen generate about 

€1.7 million annually, and taxi drivers 

collect around €2.7 million transporting 

them to and from airports. 

According to a recent study in Holland, 

ships make up 30% of shipping’s 

net total value contribution to the 

Dutch national economy. The remaining 

70% comes from offices and services 

established in Holland supporting 

the ships on land. 

Favorable Tax Environment 

The tax environment has become more 

favorable for Greek shipowners after the 

government created 40% tax reductions 

on oceangoing vessels in 2002 compared 

with tax levels that applied in 

1975. However, the measures taken by 

the merchant marine to support shipping 

have a long way to go. A representative 

of the Greek Shipowners Association 

says that there is still a lot to be 

done to make the Greek shipping register 

more competitive and appealing to 

the majority of Greek shipowners. 

In other EU countries that compete 

with Greece, oceangoing vessels enjoy 

more "privileges," such as being able to 

select their own crew, having insurance 

contributions paid entirely by the government, 

and even being exempt from 

paying crew repatriation costs. 

In Germany, the government announced 

measures that included further 

reductions in the number of community 

seamen to man ships and a 40% reduction 

in employers’ contributions for 

German seamen employed in vessels 

sailing under the German flag. In Norway, 

Greece’s largest competitor, measures 

taken to increase competitiveness 

resulted in a 10% increase in the number 

of vessels flying the Norwegian flag. 

Changes in the Greek merchant marine 

tax environment include reductions 

in tax rates: based on the one-time annual 

tax rates of 1975, a small-tonnage 

vessel paid $5,053; under the new tax 

rates, this has been reduced to $1,486. 

Fewer taxes on international shipping 

comes as a relief for large-tonnage 

ships, whose taxation fell from $160,000 

to $47,000. 

Repercussions From 

EU Enlargement 

Analysts say that with the enlargement 

of the EU, theoretically at least, the 

Greek shipping market will expand, but 

in practice all will be judged by how 

competitive it is. Based on the latest 

statistics by ECSA, the European 

Number of Greek Shipping Companies in Operation 

900 

750 

600 

450 

300 

150 

0 

729 749 785 835 754 926 

2003 2002 2001 2000 1999 1998 

European and International Shipping for the period 1990-2002 

Year European Fleet International Fleet Ships on the European register as 

Number of ships Tons gross (million) Number of ships Tons gross (million) a percentage of the international fleet 

1990 7,659 72.3 38,221 383.9 18.80% 

1995 7,116 83.1 42,121 458.4 18.10% 

2000 6,783 84.3 45,023 518.2 16.27% 

2001 6,912 92 45,322 534.6 17.21% 

2002 6,975 95.1 45,476 549.3 17.31% 

Source: Lloyd’s Register of Shipping 


Community Shipowners Association, 

Greece is the leading shipping power of 

the European Union, with 1,274 ships 

and a capacity of 47.88 million DWT. 

Admitting 10 new member countries 

into the EU from 2005 will mean 

that Greece will move to third position 

after Malta, which has 1,361 commercial 

ships on its registry, and Cyprus, 

with 1,277 ships on its registry. 

It is certain that the expansion of 

the EU from 2005 will significantly 

strengthen the profile of the European 

shipping industry, given that it has 

weakened considerably in the last few 

years in the international arena. 

In 12 years, from 1990 until 2002, 

the European commercial fleet has lost 

a large and important part of its fleet 

on an international level. In 1990, the 

European fleet, comprised of 7,659 

commercial vessels with a total capacity 

of 72.32 million tons gross and 

made up 18.8% of the international 

commercial fleet. Twelve years later, in 

2002, the European fleet, comprised 

of 6,975 ships with a total capacity of 

95.1 million tons gross, makes up 

17.31% of the international fleet 

The six countries with shipping industries 

joining the European Union 

are Malta, Cyprus, Poland, Estonia, 

Latvia and Slovenia. Together, they possess 

a commercial fleet of 2,970 ships 

with a total capacity of 52.15 million 

tons gross, or 83.2 million DWT. 

Distribution of the Greek fleet according to the type of ship 

and based on capacity (tons dwt) 

Bulk liquid cargos (tankers, ships carrying chemical cargos) 60% 

Bulk carriers for dry cargos 34% 

Passenger ships, car ferries, container carriers (refrigerators etc.), cruise ships 6% 

Source: Lloyd’s, statistics of the international mercantile fleet 2002 

International Shipping in European Hands 

Ships sailing under a European flag constitute 17.4% of the international commercial fleet. However, the total ships owned by European 

companies, without necessarily being registered in Europe, make up 41% of the international commercial fleet. 

According to statistics of the European Community Shipowners Association (ECSA), the total number of ships in the European commercial 

fleet increased by 3.25% between 2001 and 2002, bringing the total to 6,975 ships with a total capacity of 95 million tons gross. 

Ships transporting containers make up 23% of the European Commercial fleet, and passenger/car ferries 56%. 

The average age of ships in the European fleet is 11.9 years compared with 12.3 years in 2001, which indicates success in the effort to restore 

older ships. The average age of the international commercial fleet is 13.5 years. 

The shipping industry is an important and strategic weapon in European hands, especially when one bears in mind that 90% of international 

trade and 42% of inter-European trade is done by sea. 


AEGEAN SHIPPING 

Captain Petros Paleokrassas 

Heads Aegean Shipping 

When he was 16, Petros Paleokrassas began his career at sea, joining his father on board a 

Liberty Ship, who was master of the vessel, and his brother, who was first mate—both became 

his mentors and first teachers. 

The Paleokrassas family hails from Andros, an island 

with a strong seafaring tradition, and for five generations 

the family has been active in shipping. Petros 

Paleokrassas served at sea until 1977, on tankers and dry 

cargo ships, and was master for seven of those years. He 

studied nautical science at the Cardiff College of Advanced 

Technology in Wales, and has worked for a variety of companies 

throughout his career. Mr. Paleokrassas was operations, 

chartering, and general manager at Augustus Polemis 

Group of Companies; fleet manager at Troodos Shipping, 

operations manager at Blue Flag Navigation, and operations, 

chartering, and commercial manager at Merryville Maritime 

before joining Aegean Shipping as General Manager 

in June 2003. 

What are your priorities at Aegean Shipping 

What I am now doing is trying to create a more efficient, 

more flexible, and more cohesive company. Aegean Shipping, 

like all shipping companies, must adhere to the ISM 

Code and we need to be fully prepared. One of the most 

important tasks is to train our staff and ensure that we are 

all trained properly so that we can conform to the Code, 

serve our customers better, and grow as a company. 

The personnel that must be fully trained include office staff 

as well as the crews aboard the ships. I am confident that we 

will have all systems ready and will be fully upgraded in a 

short period of time so that we can then focus on other projects 

and long-term plans. 

What are the current activities of Aegean Shipping 

At the present, we have two Afromax ships that carry crude. 

We also have vessels that carry clean petroleum products, 

fuel oil, and edibles. We have ships for home trade, that carry 

for dedicated customers such as PPC and Hellenic Petroleum. 

Finally, we have the bunkering vessels that serve our 

customers in Greece as well as in Gibraltar, Venezuela, and 

Fujairah in the Emirates. 

Has Aegean purchased new vessels 

Yes, we have recently purchased two vessels, which are being 

restored and converted to double-hull carriers. By the end 

of October, the 30,000 DWT Theopisti should be ready and 

soon after we will convert the 32,000 DWT Captain Takis 

which we will put into service after it is fully renovated. After 

that we plan to purchase modern Aframaxes so that we 

may expand our oceangoing fleet. 


AEGEAN IN FUJAIRAH 

Aegean Bunkering 

in the Middle East 

Fujairah, regarded as the Eastern Gate of the United Arab Emirates, is, along with Rotterdam 

and Singapore, one of the top three bunkering ports in the world. 

Aegean began operations in Fujairah/Khor 

Fakkan in 2000 and 

has steadily gained market share 

and currently delivers more than 800,000 

tons of bunkers a year. According to Captain 

Nikos Marinos, General Manager of 

Aegean's Fujairah bunkering operation, 

"The company is now ready, after three 

years of delivering bunkers in the Emirates, 

to expand its presence in the area 

and re-evaluate its position to gain more 

market share. It is an important location 

for Aegean and we hope to expand in a 

steady and progressive way. Fujairah is the 

main bunkering port in the Middle East 

and Aegean is well-positioned to increase 

its volume considerably." 

Captain Marinos, along with Captain 

Nikos Kachrilas, run Aegean's Fujairah 

bunkering, which employs a staff of 30 on 

the vessels. Aegean's vessels have a capacity 

of 11,000 DWT, which serve the world's 

leading shipping lines. 

Each year more than 10 million tons of 

bunkers are delivered to the vessels that 

call at the port, which is located near the 

Fujairah International Airport, a positive 

factor leading to a dramatic rise in transshipment 

operations. 

The port is regarded as one of the most 

modern and advanced in the world. Located 

outside the Strait of Hormuz, it began 

operation in 1983 to meet the needs 

of the economic development of the Emirates. 

Fujairah is noted for its deep waters, 

which are free of marine obstructions such 

as rocks and coral reefs. The waters reach 

a depth of 17 meters, which allows vessels 

to anchor as close as half a nautical mile 

from the port. The port is currently undergoing 

an expansion program in which 

the length of its wharves will increase to 

1,400 meters and warehousing will increase 

to more than 500,000 m 2 . In addition, 

the computerization of operations 

at Fujairah helps owners save considerable 

time and money. An upgrade of the computer 

infrastructure will further improve 

efficiency and lead to greater productivity. 

Fujairah is the fourth busiest port in 

the Middle East for container handling 

and is rising fast on the global list for container 

traffic. 

"Fujairah is an important bunkering location for Aegean 

and we hope to expand in a steady and progressive way. 

It is the main bunkering port in the Middle East and Aegean 

is well-positioned to increase its volume considerably." 

The port can accommodate up to 100 

vessels at any time and is well-known for 

its one-stop-shop services for calling vessels. 

Services, in addition to bunkering, include 

ship supplies, ship repair, spare parts 

and inspection. It is regarded as a very sage 

and secured anchorage and is constantly 

patrolled and policed so that ships and 

crews are well-protected. 


AEGEAN RETAIL 

KEPEK 

Stands for Quality 

Aegean's ambitious quality control program on fuels 

has been and continues to be very successful. 

KONSTANTINOS POURSANIDIS | RETAIL MARKET MANAGER 

The program was launched on June 17, 2003 and since then the Mobile 

Fuel Quality Control Lab (KEPEK) has carried out inspections at 537 

network gas stations, with results that surpassed our best expectations. 

KEPEK operates throughout the country and conducts surprise inspections at 

gas stations belonging to our network. Inspections are carried out throughout the 

year (365 days) during station operating hours. 

Recognizing the added value 

this provides customers, gas 

station owners are more 

than happy to comply 

with these 

inspections, 

oftentimes requesting 

them 

themselves. 

! 

Safety Issues 

Regarding Gas 

Station Operation 

The operation of a gas station presents 

many risks, due to the hazardous nature 

of the products involved. However, you 

would have to agree, that by taking the 

necessary precautions we are able to reduce 

these risks to a minimum. And it is 

absolutely necessary that we do so, since 

human life is precious and should not be 

exposed to undue risk for any reason 

whatsoever. 

In order that we minimize risks at gas 

stations, it is imperative that we take 

some basic preventive measures. 

● The owner or an authorized employee 

should be present while the station refuels. 

The station entrance must be 

closed, the appropriate sign put in 

place, and no customers should be 

served during the refueling process. 

● Vehicle tanks should not be filled unless 

the vehicle engine has been 

switched off. 

● Smoking should be prohibited on all 

outdoor station premises. 

● The use of cellular phones must be 

prohibited anywhere on the station 

premises. 

● Fire extinguishers should always be 

ready for use and staff must be familiar 

with their operation. 

● In the event that work is carried out at 

the gas station involving the use of a 

flame, then the work crew must have 

taken all precautions to prevent an accident 

from occurring. 

I hope these measures constitute a priority 

for everyone and I wish you continued 

and accident-free success. 


AEGEAN MARINE 

Aegean Marine Petroleum (AMP) 

A Service & Growth Leader 

GREGORY ROBOLAKIS | DIRECTOR OF AEGEAN MARINE PETROLEUM 

2003 

During the first nine months of 

2003, the demand for Aegean 

operating as “physical supplier” 

to ships has increased by 22% compared 

with the same period last year. 

Specifically, the demand in Piraeus increased 

by 19%, in Gibraltar by 33%, 

and in Fujairah/Khor Fakkan by 12%. 

We see the largest increase in demand 

in the harbor of Gibraltar, 

where AMP has secured a firm place 

in the market during the last five to six 

years, supplying customer ships with 

its own barges. Aegean Bunkering 

(GIB) Ltd. uses three tankers with a 

total tonnage of 13,000 M.T. to load 

fuels. During 2002, Aegean covered 

about 12-13% of the market, and 

sales increased considerably during the 

first nine months of 2003. 

Aegean places great emphasis on 

the protection of the marine environment 

and the safety of staff during refuelling, 

and has followed the latest 

EU directives. The company has replaced 

two of its single-hulled barges 

in Gibraltar with two new, double 

skin-double bottom (DD) barges with 

a larger capacity. 

Furthermore, in response to client 

feedback regarding the quality of the 

fuel supplied, Aegean has installed an 

electronic “blender” and bunker monitor 

on the M/T Aegean Daisy and the 

M/T Aegean Rose barges in Gibraltar, 

making it possible to supply clients with 

a fuel mixture that is accurate in its 

proportions of crude oil and diesel. 

Fluctuations in viscosity are monitored 

constantly on-screen, and can be 

recorded on a print-out at the end of 

each refuelling. 

In all the ports that Aegean services 

with its barges, it strives to lead the field 

in issues concerning safety and the protection 

of the environment, in the reliability 

of its services, and in the quality 

of its products at a competitive price. 

Fuel Compatibility – Regular Consistencies 

A fuel is considered to have a regular consistency when it does not separate into layers, i.e., its constituents are compatible. 

The tar elements that remain diluted in the fuel do not have a tendency to separate to create a muddy substance. 

In the period of time that fuel is stored in the fuel tanks on board, there is a possibility that it will separate into 

its constituent layers (stratification). When fuel is being piped into the tanks, the engineer of the ship should avoid 

mixing fuels of different origin. If this proves difficult, then he should keep the proportion of foreign fuel to a minimum. 

Problems can occur while mixing fuels of different origin or fuel with diesel. 

Mixing primary fuels with products resulting from fission (many tar products) should be avoided, especially when the 

fuel has a high point of flow. Usually, fission products can be mixed. 


AEGEAN AWARD 

Aegean Oil 

Honored in Washington DC 

Aegean Oil was one of only four 

companies honored in Washington 

DC at the Second Annual 

Business Conference on U.S.- 

Greece Relations, held October 6-8, 

2003. The conference was organized to 

highlight the importance of Greek- 

U.S. relations in terms of business and 

commerce. 

Top officials from several American 

and Greek companies, as well as representatives 

of both the Greek and 

United States governments participated 

in the conference. Participants listened 

to a variety of presentations and 

speeches, including an overview of 

Olympic Games preparations given by 

Ioannis Spanoudakis of ATHOC, U.S. 

Senator and Presidential Candidate 

Joseph Lieberman, United States Senator 

Paul Sarbanes and former U.S. 

Defense Secretary William Cohen. 

Representing the Greek government 

was Defense Minister Yannos Papantoniou 

and the General Secretary for 

Defense Investments Spyridon Travlos. 

Defense Minister Papantoniou discussed 

Greece's armament policy, which was of 

interest to the many representatives of 

the major American defense contractors 

who were present at the conference, 

including Boeing, Lockheed 

Martin and Raytheon. 

Several high-ranking United States 

government officials attended the conference 

from the Department of State, 

the Defense Department and many 

members of the House of Representatives 

and the United States Senate. 

United States Ambassador to Greece 

Top: Gregory Pappas, Andreas Karaindros, Dimitris Melissanidis, and Tom Geanopoulos in the United States Capitol Building 

Bottom: Tom Geanopoulos, former U.S. Defense Secretary William Cohen, and Dimitris Melissanidis 

Thomas Miller, who traveled to Washington 

for this important conference, 

honored four companies for the role 

they played in Greek-U.S. commercial 

relations at a private breakfast hosted 

in the United States Capitol Building. 

Raytheon and Lockheed Martin, two 

of the world's largest corporations and 

providers of advanced weapons systems 

were honored, as was the American 

construction giant Technical Olympic. 

Aegean Oil, represented by its President 

and Managing Director Dimitris 

Melissanidis was the only Greek company 

presented with the honor at the 

conference by Ambassador Miller. 


STATION OF THE MONTH 

Securing an Aegean Presence 

in Lakonia 

The two businessmen began their 

partnership in 1975, manufacturing 

knitwear in Sparta under 

a small company called "Plektiria 

Spartis AEBE." Years passed, conditions 

changed, and the partners quickly 

realized the potential for growth in 

the fuel market, especially in a small 

city like Sparta. 

Seeking new investment opportunities 

when the first signs of a crisis in the 

clothing industry became apparent, 

they secured a place in the promising 

fuel market by opening their first service 

station in 1998 in a prime location: 

one kilometer out of Sparta on the 

Sparta-Athens route via Tripoli. 

Until the beginning of 2003, Gerondidis-Tsourounis 

acquired their fuel 

from another supplier, and financial results 

were not quite satisfactory. Things 

changed after they chose Aegean, since 

lower prices, and a new, more efficient 

service station drew many more customers, 

and turnover shot up. 

One of the partners, Kyriacos Gerondidis, 

is clear about his business objectives, 

and says: "whoever secures a place 

in the local market now will win the 

competition battle today and in the future. 

This is because the wider area of 

Sparta does not have more than 12 

service stations." 

The company’s next target is to have 

fuel stations in the center, entrance 

and exit points of Sparta, covering 

most of the town. The service station 

in the center of Sparta will be a model 

unit. Covering 1000 m 2 of land, it will 

include a car wash, a leather manufacturing 

unit, a mini-market, and a car 

boutique offering all types of car accessories. 

The company, which also 

supplies diesel to residences for heating, 

will invest around €440,000 in 

the two new service stations. 

The plans do not end here. Their 

next step lies beyond Sparta in Gythio. 

The company has a 50% stake in a 

service station currently under construction, 

and has plans to expand into 

other towns in the area. 

As Mr. Gerondidis says, Aegean’s 

target is to increase the number of fuel 

stations in Lakonia from three (Sparta, 

Xirokambis, Aeropoli) to eight or nine 

by the summer of 2004. Two new service 

stations are already being planned 

for Skala and Molaous. Mr. Gerondidis 

has personally undertaken to bring 

service station owners who wish to 

change companies into contact with 

Aegean to join the team. 

Gerondidis-Tsourounis does not restrict 

itself to purely business ventures. 

It also sponsors athletic associations 

(basketball and soccer teams), and 

cultural events in the area. 

Furthermore, its entry into the fuel 

market did not mean abandoning their 

initial enterprise. Today, "Plektiria 

Spartis" manufactures knitwear supplying 

not only Greece, but also Germany, 

France, and the U.K. Annual 

turnover amounts to €1.45 million. 

Mr. Gerondidis claims that "having 

a spread of investments generating 

turnover in many different markets 

reduces financial risks and increases 

the likelihood of making profits." 

For the K. Gerondidis- 

G. Tsourounis company, which 

owns one of the largest 

service stations in the 

prefecture of Lakonia, joining 

the Aegean Oil team has 

proved lucrative. After joining 

in February 2003, turnover 

has increased by 80%. 

“Things changed after they 

chose Aegean, since lower 

prices, and a new, more 

efficient service station drew 

many more customers, and 

turnover shot up.” 


AEGEAN ROUTES 

Aegean 

Investing in Bulgaria 

Aegean is participating in the 

construction of two state-ofthe-art 

office and shopping 

centers in Sofia, the Bulgarian capital. 

The new complexes represent a forward-looking 

approach to the economic 

development of Southeast Europe. 

The shopping and office structures, 

one totalling 5,000 m 2 and the 

other 10,000m 2 , are being built in the 

downtown section of Sofia, where demand 

for contemporary, high-quality 

retail and office space is growing. 

Greek investment in Bulgaria is very 

high. At a speech in Sofia recently, 

Greek Economy and Finance Minister 

Nikos Christodoulakis said mutual investments, 

joint business initiatives, and 

infrastructure projects are the main 

directions for bilateral joint efforts. 


AEGEAN ROUTES 

The Internal Auditor 

KONSTADINOS DIMAKOS | INTERNAL AUDITOR 

The position of the internal auditor of a company, a 

position with its own history in the business world, 

was founded by large enterprises abroad and is 

now also well-established in their subsidiaries and affiliated 

companies throughout the world, including Greece. In 

recent years, major companies in Greece, especially those 

listed on the stock exchange, have also started to create 

departments of internal auditing. 

The function of the internal auditor is very important 

because the auditor helps organize not only financial 

functions, but also enhances cooperation between the financial 

department and other departments in the organization. 

To do so, the internal auditor establishes procedures 

and periodically inspects whether those procedures 

are followed. This also has an impact on the external appearance 

of the company since cooperation with customers, 

suppliers, and the company is improved. 

Moreover, an important aspect of the internal auditor’s 

job is to ensure maximum profit for the stockholders of the 

company by minimizing costs and lost revenue. 

In large companies, these functions become more vital 

and beneficial, and in companies such as Aegean, which is 

growing at a rapid rate, they substantially contribute to efficiency 

and performance. 

“The function of the internal auditor is 

very important because the auditor helps 

organize not only financial functions, 

but also enhances cooperation between 

the financial department and other 

departments in the organization.” 

Konstantinos Dimakos 

Internal Auditor 

Mr. Dimakos graduated from the Athens 

University of Economic and Business with a specialization 

in financial analysis (balance sheet 

analysis and tax issues). He has extensive experience, 

since 1979, as credit controller and account 

manager in large manufacturing, commercial, and 

shipping companies and as auditor of the State Corps of Auditors. 

Aegean Car Wash 

A New Initiative 

Aegean is preparing to launch a new initiative in 

the Greek market that will radically change the 

concept of "washing the car." Aegean's new Car 

Wash System, set to begin operation in Thessaloniki by the 

end of the year, will be a mini "Car City" where motorists 

can give their automobile a thorough and safe wash while 

at the same time purchase a variety of auto accessories. 

The new system, imported from the United States, will 

wash cars with a gentle yet thorough wash cycle that will 

not harm any of the car's paint, metal, or glass, and will 

even protect a user's car from damage. The new car wash 

center will become a hub where all owners can give their 

cars total care, through exterior and interior cleaning, 

waxing, and by applying protective and restorative coatings. 

In addition, motorists will be able to repair and replace 

damaged or worn accessories so that the one-stopcar-care 

shop is a total solution for personal automobile 

maintenance. 

Aegean's first Car Wash System is expected to open in 

December next to the Aegean station of Vassilis Dimitriadis 

near the Thessaloniki Airport. During 2004, the 

Aegean Car Wash System will expand throughout Greece, 

along with the Aegean retail outlet network. 


FORUM 

DNV: Strong Bonds 

with Greek Shipping 

For Det Norske Veritas, one of the largest ship classification societies in the world, Greek 

shipping has proven very important. In the last few years, DNV has entrenched itself in the Greek 

shipping market, which now constitutes 17% of the total tonnage of its international clients. 

Aship classification society as 

large as DNV could not ignore 

a new building activity 

with the astronomical figure of $22 

billion spent for new ships in the last 

five years by Greek shipowners. 

Company executives were quick to 

spot rapid growth in the Greek shipping 

industry in the last few years that 

was spurred by a huge shipbuilding 

investment program, despite signs of 

saturation evident in other markets. 

"To understand how important the 

Greek market is to us, consider the fact 

that, two years ago, we relocated our administrative 

headquarters for 23 countries 

in Southeast Europe to Piraeus," 

says the regional director of the society 

in Southeast Europe, John Kourmatzis. 

Many foreign ship classification societies 

that have offices in Greece have 

also stood up to take note of Greek 

shipping. "Whoever establishes himself 

now in the Greek market will win the 

competition battle today and in the future," 

believes Mr. Kourmatzis. 

The figures speak for themselves. 

The number of Greek-owned ships 

that DNV inspects today has increased 

by 41% in the last six years, 

reaching 428 compared with 301 in 

1998. With regard to the tonnage of 

the ships it inspects, the increase was 

around 77%, from 9.39 million tons in 

1998 to 16.64 million tons today. 

Having secured a position in the 

Greek market which, by nature of its 

size, shows promise, DNV is after a 

larger share, along with its old-time 

competitors, Lloyds Register (LR) in 

the UK and American Bureau of 

Shipping (ABS) in the U.S. 

The Norwegian ship classification 

society already inspects 12.6% of the 

3,300-strong Greek-owned fleet, compared 

with 9.39% in 1998. It increased 

its share in tonnage proportionally, from 

11.95% in 1998 to 16% this year. 

Although the growth the society has 

seen in the Greek market is large, executives 

stress that their objective is 


not so much the size, but the quality of 

the ships it undertakes to inspect. 

"It is not coincidence that, on a 

world scale, DNV has the lowest number 

of ships held at ports by authorities 

for safety irregularities. This has as 

much to do with the company’s objective 

to have a quality portfolio, as the 

care taken by its clients (shipowners) 

on safety issues and ship maintenance," 

says Mr. Kourmatzis. 

New Orders 

The society’s steady upward trend is 

clear. Inspections of Greek-owned ships 

under construction have increased, 

equaling those of its two competitors in 

the Greek market, LR and ABS. 

According to DNV figures, in 2002 

the society inspected 28 of the 95 Greek 

ships under construction, with a tonnage 

of 1.76 million tons of a total 5.46 respectively. 

In the same year, ABS inspected 

31 ships (1.84 million tons), and 

LR 30 ships (1.57 million tons). 

DNV therefore achieved a 12% increase 

in the number of ships it inspected, 

from 18% in 1998 to 30% in 

2002, and an increase in tonnage from 

28% to 32.5%. 

2003 Growth 

Growth continued at the same rate this 

year, which is expected to be a record 

year in new orders of ships by Greek 

owners. During the first seven months 

of 2003, Greek shipowners have ordered 

more ships than those ordered 

during the whole of 2002. 

According to statistics from shipping 

brokers, increases in orders apply 

as much to tankers (117 until June) as 

to container carriers (10), and dry and 

bulk cargo carriers (37). 

In Mr. Kourmatzis’ opinion, a good 

freight market in these ship categories, 

and a good run of the dollar, strengthened 

the flow of incoming orders for 

ships by Greek shipowners. The trend 

was even followed by shipowners who 

normally purchase second-hand vessels 

from the international market. 

The Trust of 177 Companies 

In total, DNV has 160 Greek clients 

and 17 Cypriot clients that own 561 

ships with a capacity of 19.3 million 

DWT. The society has undertaken to 

inspect 54 Greek- and Cypriot-owned 

ships under construction with a tonnage 

of 2.77 million tons, and has issued 

ISM certificates to 78 shipping 

companies. It carries out 600 inspections 

annually, as well as 25 special 

inspections for ship building upgrades. 

DNV in Greece (Department for Southeast Europe) 

Oversees 

Clients 

Greece and Cypriot fleet under DNV inspection 

Ships under construction 

that it has undertaken to inspect 

Annual ship inspections 600 

Companies is has certified with ISM 78 

John Kourmatzis 

23 countries, with 28 local stations 

and 176 employees 

160 Greek and 17 Cypriot companies 

561, capacity 19.3 million tons 

54, capacity 2.77 million tons 

The Shipyards Greek Owners Prefer 

DNV has interesting statistics on 

Greek shipbuilding activity. According 

to its data, Korean shipyards, which are 

considered to have greatest specialization, 

claim the largest piece of the pie 

(60.5%). Japan follows with 23% and 

China and other shipyards with 16.5%. 

The Chinese Market 

Although Chinese shipyards fall short 

of Korean and Japanese standards, they 

are becoming ever more popular 

among Greek shipowners because of 

low construction costs. "This is why it is 

anticipated that many Greek shipowners 

that order elsewhere today will turn 

toward China in the next few years," say 

DNV executives. The types of ships on 

order are: 107 tankers; 48 cargo ships; 

6 container carriers; 19 various types. 

Positive Prospects 

for Greek Shipping 

Executives of DNV are focusing their 

attention on Greek shipping as they 

realize that Greek companies are seeing 

unprecedented growth. 

"In the last few years, the average 

growth rate of Greek shipping companies 

was around 5% compared with 

2% in international shipping, a trend 

that is continuing with the same momentum 

this year" stresses Mr. Kourmatzis. 

This is due to the large number 

of Greek-owned ships. 

Until now, DNV's Piraeus office has 

certified 365 ships for safe management, 

(owned by 70 shipping companies), issued 

ISO 9000 certificates to 15 shipping 

companies, and ISO 14001 certificates 

to four companies. It has also 

certified five training centers and two 

crew employment agencies. Furthermore, 

DNV arranges 30 training seminars 

annually for shipping company executives, 

and, together with the University 

of Piraeus, has established a training 

program for postgraduate studies. 


GANGWAYS 

INTERTANKO 

on the Energy Environment 

INTERTANKO, an organization of independent tanker owners, was established in 1970. INTERTANKO 

has 242 members whose combined fleet comprises more than 2,160 tankers totaling 160 million 

DWT, which is 70% of the world's independent tanker fleet above 10,000 DWT. 

Global Energy Demand 

Oil is by far the world's most strategically 

important commodity and some 

60% is transported across the oceans 

of the world by tankers. Tankers also 

transport a large variety of chemicals, 

gases, vegetable oils, and animal fats 

that serve as essential raw materials for 

many of the products we use in our 

daily life. The vital importance of 

tankers is, however, rarely recognized. 

They are very cost-effective, energyefficient, 

flexible, and safe, and routinely 

deliver an efficient transportation service. 

Without the more than 9,000 

tankers in the world's fleet, we would not 

enjoy the quality of life we have today. 

Hundreds of millions of jobs depend directly 

or indirectly on this oil upon 

which our very standard of living relies. 

One VLCC (very large crude carrier) 

can carry enough oil for half a 

million cars to cross the Untied States 

and return, or travel to London to the 

Middle East and back. All at a cost 

that in good times rarely exceeds $2.00 

per barrel, and is generally closer to 

$1.00 per barrel. 

Despite the harsh conditions operating 

in the environment and the unpredictable 

perils at sea, the safety and environmental 

performance records of 

tankers can measure up to any other 

comparable industry. All the evidence 

Anasuria: The world's largest tanker 

demonstrates a large reduction in pollution 

from tankers to a very low level. But 

the industry is not complacent. This 

strong-performing, dynamic, and highly 

international tanker industry provides 

a backdrop for INTERTANKO's efforts 

for recognition and sound, stable 

regulatory conditions for its members. 

Tanker owners perform an essential 

service in an efficient, economic, and 

environmentally friendly manner. 

● The world consumes some 78 million 

barrels per day (mbd), of which 

60% is transported by sea 

● Japan imports 5 million barrels of 

crude oil and petroleum products 

every day or some 95% of its total 

demand 

● The United States imports approximately 

11.3 mbd or 59% of oil demand 

● Europe imports some 17.4 mbd of 

crude oil products or some 63% of 

total oil consumption 

● There is a large domestic tanker traffic 

both within the U.S. and Europe, 

in the form of intra-regional product 

trades, offshore shuttle tankers, and 

offshore lightering 

Tanker Supply: 2001-2002 

● The tanker fleet increased from 304.1 

to 305.8 million DWT, or by 0.6% 

● 20.9 million DWT of tankers were 

ordered during 2002 

● The total newbuilding order book, at 

the end of 2002, stood at 61 million 

DWT 

● No lay-up, minimal storage end 2002 

● 50% of the tanker fleet was doublehulled 

at the end of 2002 

● Independent tanker owners control 

81% of the world tanker fleet 

Tanker Demand: 2001-2002 

● Total seaborne oil trade declined from 

2,017 to 1,987 million tons, or by 

1.15%. In ton-miles, the seaborne oil 

trade declined from 10,179 to 9,950 

billion, or by 2.3% 

● World oil demand increased from 76.5 

to 76.9 billion b/d, or by 0.5%; the 

projection for 2003 is 77.9 mbd 

● OPEC oil production declined 27.0 

to 25.1 mbd or by 7% 

● Middle East OPEC oil production 

declined from 18.9 to 17.6 mbd, 

or by 6.9% 

● Non-OPEC oil production increased 

from 46.7 to 48.1 mbd or by 3%; the 

projection for 2003 is 49.2 mbd 

For more information: www.intertanko.com 


EXPLORATION 

The Story of Oil 

Oil was formed from the remains of animals and plants 

that lived millions of years ago in a marine environment. 

Over the years, the remains were 

covered by layers of mud. Heat 

and pressure from these layers 

helped the remains turn into what we today 

call crude oil. The word "petroleum" 

means "rock oil" or "oil from the earth." 

Crude oil is a smelly, yellow-toblack 

liquid and is usually found in underground 

areas called reservoirs. Scientists 

and engineers explore a chosen 

area by studying rock samples from the 

earth. Measurements are taken and if 

the site seems promising, drilling begins. 

Above the hole, a structure called 

a "derrick" is built to house the tools 

and pipes going into the well. When 

finished, the drilled well will bring a 

steady flow of oil to the surface. 

After crude oil is removed from the 

ground, it is sent to a refinery by 

pipeline, ship or barge. At a refinery, 

different parts of the crude oil are 

separated into useable petroleum 

products. Crude oil is measured in 

barrels. A 42-U.S. gallon barrel of 

crude oil provides slightly more than 

44 gallons of petroleum products. This 

gain from processing the crude oil is 

similar to what happens to popcorn, it 

gets bigger after it is popped. 

One barrel of crude oil, when refined, 

produces 19.4 gallons of finished 

motor gasoline, as well as other 

petroleum products. Most of the petroleum 

products are used to produce energy. 

For instance, many people across 

the United States use propane to heat 

their homes and fuel their cars. Other 

products made from petroleum include: 

ink, crayons, bubble gum, dishwashing 

liquids, deodorant, eyeglasses, records, 

tires, ammonia, and heart valves. 

When petroleum products such as 

gasoline (used in automobiles), diesel fuel 

(used in trucks), and heating oil (used 

to heat our homes) are burned as fuel, 

they give off carbon dioxide. Drilling for 

oil also has an impact on the environment—companies 

must use advanced 

technology and comply with government 

rules and regulations for safe 

drilling and petroleum production. 

The world's top five 

crude oil-producing countries are: 

● Saudi Arabia 

● Russia 

● United States 

● Iran 

● China 

Source: U.S. Energy Information Administration 


MARITIME TRADπTION 

The Ancient Ships of Santorini 

Some of the oldest ships of Greece were built in ancient 

Thera, known today as Santorini. These ships, dating from 

the 17 th Century BC, were remarkably sophisticated 

in design and construction. 

The volcano of Santorini, which 

erupted around 1500 BC, buried 

the prehistoric settlement of 

Akrotira on the southern tip of the island. 

For centuries, the volcanic ash 

protected the settlement and archaeologists 

and historians were able to 

gather information about the settlement 

in great detail. The building known 

as the West House contained a miniature 

fresco depicting a flotilla in procession 

and experts were able to recreate 

the Ship of Thera from the wall 

painting. The Ship of Thera is dated to 

the 17 th Century BC, and is evidence of 

an advanced level of boat-building 

skills and a sophisticated navigation 

system. The finding at Akrotira provides 

historians with the most complete 

documentation about boatbuilding 

in Ancient Greece. Even though 

the fresco dates from the 17 th BC, its 

“The Ship of Thera is dated to the 17th Century BC, and is 

evidence of an advanced level of boat-building skills and a 

sophisticated navigation system.” 

scenes depict events and activities of 

earlier periods, so that historians know 

that the seafaring tradition in ancient 

Greece precedes this date. 

Researchers estimated the Ship of 

Thera to have a length of more than 30 

meters and most probably the vessel 

employed about 20 oarsmen on each 

side. The oars did not rest in tholes, or 

pins, and a square sail hung from a 

mast in the center of the ship. Two 

large steering oars were operated by 

helmsmen standing on the deck and 

the center of the vessel was covered, 

most likely sheltering passengers. 

Reflecting a Minoan influence, the 

Ship of Thera had a semicircular crescent 

shape and a triangular projection 

extending outward from the stern, 

whose function has not been determined 

by archaeologists or historians. 

Some believe it served as a boarding 

plank and was movable. A small, luxurious 

cabin was located at the stern of 

the ship and the fresco depicts a dignitary, 

possibly the captain, seated here. 

The practice of maintaining a place of 

honor at the stern of a ship originated 

in Egypt and continues today. 

The rich ornamentation depicted on 

the ship, which also reflects an Egyptian 

influence, indicates that the Ship 

of Thera was carrying a high-ranking 

official. 

Today, archaeologists and scholars 

still debate many details about the Ship 

of Thera and the frescos of Santorini, 

which provide maritime buffs a rich 

source of information about ancient 

maritime traditions. 


2004 OLYMPIC GAMES 

The Ancient Games 

The Olympic Games, the most spectacular sporting event in the world today, are said to have 

begun in Ancient Greece in 776 BC as a tribute to the gods of Olympia. 

The Games were an important 

ceremony that measured excellence, 

celebrated creativity, 

and encouraged competition. In addition 

to athletic events, the ancient 

games featured cultural performances 

and arts competitions, the foundation 

for today's cultural Olympiad. In fact, 

the world "Olympiad" is a time unit, 

referring to the four-year interval between 

games, which underscores the 

importance of the Games to the ancient 

Greeks. 

Contestants gathered in Olympia, 

home of the magnificent temples of 

Zeus and Hera, to compete for the 

most important reward: a heroic return 

to their city-states wearing the prized 

olive wreath. Although victory then, 

like today, was an important element 

of the Games, all contestants celebrated 

noble competition and the effort to 

combine body, will, and thought. 

Standard events, rules, and schedules 

evolved over the course of time so 

that benchmarks were established. 

And the Olympic Truce became a time 

when all warring factions ceased hostilities, 

no matter how intense or bitter. 

Greece is trying to establish an Olympic 

Truce that will be honored by all 

countries during the 2004 Games. 

Contestants in the ancient games participated 

in a variety of sports, most of 

which are still practiced today. In 393 

AD, the emperor Theodosius banned 

the Olympic Games as being too "pagan." 

The Games in Ancient Greece 

included the following athletic events: 

Running Athletes competed naked in the stadion or stade race, a 200-meter event that was the 

ultimate test of speed. Other running events included the diavlos, a 400-meter race, and the dolichos, 

a race of between seven and 24 stades. 

Jumping Athletes used stone weights called halters to increase the distance of their jump. 

The jumper would jettison the weight backward at the end of his flight, trying to gain distance. 

Discus Originally made of stone, the discus was later made of bronze. The discus throw is one of 

the most unchanged events in history and the ancient sport was very similar to today's discus throw. 

Javelin The javelin throw was divided into two events: one for distance and one for accuracy. 

Wrestling Wrestling was one of the most popular ancient sports. The notable aspect of ancient 

wrestling contests is that the competition ended only when one contestant admitted defeat. 

Boxing Boxing was added as a sport in 688 BC. Contestants wore leather straps, forerunners of 

today's' boxing gloves, on their hands. The straps evolved from dangerous pins to today’s gloves. 

Pankration A combination of wrestling and boxing, the Pankration was one of the most harsh 

events of the ancient Olympics. 

Equestrian Events Horse races and chariot races were held in the hippodrome, an oval 

space that was wide and level. Today, equestrian events are still highly popular Olympic events. 

It was not until 1896 that the Olympic 

Games and the Olympic ideal were revived, 

when Athens hosted the first 

modern Games, following the efforts of 

Pierre de Coubertin and Dimitirs Vikelas. 

Today, just more than 100 years 

since the Games' re-birth, Athens is 

preparing to host the XXVIII Games, 

from August 13-29, 2004. More than 

15,000 athletes from 201 countries 

will compete for gold, silver, and bronze 

medals in 28 sports. It is expected that 

4 billion people will view the XXVIII 

Games, an historic celebration of what 

2004 organizers call "the Olympic 

Games on a human level." 

For more information about the 2004 

Olympic Games to be held in Athens 

visit www.athens2004.com 


TRAVEL 

Kalavryta 

The Birthplace of Modern Greece 

On March 25, 1821, Bishop Germanos of Patras raised the flag of revolt against the Turks at 

Moni Agias Lavras, six kilometers from Kalavryta, a territory so difficult to access that it was 

cheaper to bring a pound of grain from Russia to Italy than from Patras to Kalavryta. 

Sixty years later, the prime minister, 

Harilaos Trikoupis, commissioned 

a 22.5-kilometer railway 

line from the coastal town of Diakofto 

rising 756 meters through the dramatic 

Vouraikos Gorge to Kalavryta, so that 

all countrymen could visit the birthplace 

of the modern Greek nation. It was the 

first 750 mm gauge rack-and-pinion 

railway system designed to climb a 

gorge so steep. The track searches or 

footholds on rocky outcrops, clings to 

cliffs, and crosses the gorge with spectacular 

views over rivers, waterfalls, and 

lush woods of cypress and fir. 

The engineering feat included six 

tunnels totalling 200 meters, retaining 

walls more than 4,000 meters long, and 

40 steel and 15 masonry bridges and 

viaducts with spans varying between 

three meters and 60.9 meters. The first 

steam locomotive designed by Roman 

Abt is now on display in Diakofto and 

was recently restored to working order. 

It had first entered Kalavryta terminus 

on March 10, 1896 travelling at a 

maximum speed of 40km/h on level 

sections and 12km/h on inclined sections. 

Today, specially designed dieselelectric 

railcars operate the service on 

the original traction stock. 

The railway traverses one of the most 

scenic routes in Europe, and hundreds 

of tourists and train lovers endure the 

noise to chug up (and clutch down) the 

narrowest public rack railway in the 

world still in regular service. The area is 

“The railway traverses one of the most scenic routes in 

Europe, and hundreds of tourists and train lovers endure 

the noise to chug up (and clutch down) the narrowest 

public rack railway in the world still in regular service.” 

also a National Heritage Site and a safehaven 

for rare birds of prey such as the 

Honey Buzzard, the Griffon Vulture, 

and the Short-toed Eagle. 

Kalavryta today is a popular winter 

mountain destination attracting mainly 

ski-loving Athenians. The ski center 

is at an altitude of 1,600-2,200 meters, 

and offers ski lessons to take you 

swishing down the slopes. 

The town has a rustic stone railway 

station and a church clock stopped at the 

time of the Kalavryta massacre, when in 

December 1943, Nazi troops occupying 

Greece executed more than 1,300 males 

(including children and teenagers) as a 

reprisal against resistance activity in the 

Kalavryta region. The Execution Monument 

is one kilometer outside town. 

Kalavryta means “good springs,” so 

the area has some water-related attractions. 

There is a trout farm in Planiterou 

at the foot of mount Helmos, where 

lunch is fished and fried before you. 

The impressive Cave of Lakes is 16 

kilometers away near Kastria. Here, 

paths wind through two kilometer-long 

underground caverns of ponds and lakes 

under haunting stalactites. In spring, 

after the snow melts, water levels rise 

and form a river running from cavern to 

cavern. According to myth, the daughters 

of King Proteus of Tiryns took 

refuge here after they were driven mad 

by the goddess Hera and roamed the 

countryside thinking they were cows. 

The seer Melampus then cured them. 

There are two monasteries in the 

area, Agia Lavra and Mega Spileon, a 

5 th century monastery built on a rock 

and housing the miraculous icon of the 

Virgin Mary painted by the Apostle 

Luke. Agia Lavra houses relics and the 

famous banner of the revolution. 

For ªore Information 

www.greektourism.com 


A look that says 

THE AEGEAN IMAGE 

“We ‘re different” 

Aegean is proud of the contemporary image of its petrol 

stations. Station personnel enhance the "Aegean Look" 

through clothing and products that reflect a commitment 

to quality and customer service. 


Aegean 

AEGEAN is a diverse group of companies active in the energy and shipping 

industries and is committed to providing its clients with the best 

products, services, and solutions to meet their needs. The AEGEAN 

group markets fuels and lubricants in the bunkering and retail sectors, 

is a leader in top-quality bunkering services, provides 

marine transport through its fleet of 26 tankers, and offers 

24/7 shipping services to trusted clients throughout 

the world. 

SERVICE AND PRICE 

Founded in 1990, AEGEAN is committed to providing 

its customers with unmatched services 

at the most competitive prices. It has grown in 

just over a decade into a dynamic force in the 

industry and from its headquarters in Piraeus, 

Greece AEGEAN directs its domestic and international 

operations. The company is privately held and 

100% Greek owned. 

A DYNAMIC GROWTH STRATEGY 

Through a strategy of responding to market needs, 

AEGEAN has successfully grown to be an industry 

leader that is committed to excellence in customer 

satisfaction, environmental awareness, and overall 

quality. The company is ISO 9002 accredited, 

its ships meet ISM standards, and AEGEAN's 

bunkering operations are on the top of the FOBAS 

White List. AEGEAN employs more than 1,000 

professionals who are the foundation of the company's 

success. In 2002, turnover reached $1.5 billion. 

In addition to its headquarters in Piraeus, the 

company has offices in Thessaloniki, Greece and an international 

presence in the United Arab Emirates, Venezuela, 

Russia, Bulgaria, Gibraltar, and the United States. 

FULLY-EQIUPPED FACILITIES 

AEGEAN has two fully equipped depots to handle its fuel needs. The 

depot in Alexandroupolis serves clients and customers in northern 

Greece and southeast Europe. The company's depot in Aspropyrgos 

serves southern Greece and the important port of Piraeus. 

www.aegeanoil.gr

Shipping A New Era - aegean marine petroleum network inc.

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