MANmagazine Power 1/2015

1/2015
Power
Engineering excellence around the world
Progress in
fast-forward

man magazine
1/2015
Welcome
to the
of MAN Diesel & Turbo.
06
content
04 “My home is with the customer”
MAN Diesel & Turbo’s new CEO shares
his view on the company’s strategy and
markets.
Power
masthead
MAN magazine is published three times a year
in English.
published by MAN Diesel & Turbo SE,
Dr. Jan Dietrich Müller,
Group Communications & Marketing
Stadtbachstr. 1, 86153 Augsburg, Germany
editors in chief Jan Hoppe, jan.hoppe@man.eu,
Felix Brecht, felix.brecht@man.eu
Publisher C3 Creative Code and Content GmbH,
Heiligegeistkirchplatz 1, 10178 Berlin, Germany
Tel.: +49 30 44032-0, www.c3.co,
Shareholders of C3 Creative Code and Content GmbH
are the Burda Gesellschaft mit beschränkter Haftung
(limited liability company), Offenburg, and the KB
Holding GmbH, Berlin, with 50% each. Sole shareholder
of the Burda Gesellschaft mit beschränkter
Haftung is the Hubert Burda Media Holding Kommanditgesellschaft
(limited partnership), Offenburg.
Shareholders of KB Holding GmbH are Mr. Lukas
Kircher (managing director, Berlin) and Mr. Rainer
Burkhardt (managing director, Berlin) with 50% each.
Editors & Authors Cedric Arnaud (resp./C3
Creative Code and Content GmbH, Arabellastraße 23,
81925 Munich), David Barnwell, Hamish Mackenzie,
Goeff Poulton, Patricia Preston, Vicki Sussens,
Asa C. Tomash, Harry Waterstone
project management Marlene Freiberger
Graphics Micheline Pollach, Andrea Hüls
Photo editor Elke Latinovic, André Kirsch
Cover image Waleed Bin Talip
productioN C3 Creative Code and Content GmbH
printing Pinsker Druck und Medien GmbH
Pinskerstraße 1, 84048 Mainburg, Germany
reproduction permitted with reference.
Any changes must be coordinated with the editors.
Copyright ©2015 MAN Diesel & Turbo
and C3 Creative Code and Content GmbH
14
COVER STORY:
In Saudi Arabia,an MAN
Diesel & Turbo team works
closely with the customer
to provide power.
08
06 Up in thinner air
Ecuador’s evolving economy relies on
technology by MAN.
08 Lighting up a brighter future
Facing still-challenging conditions,
Bangladesh is on the move.
10 Modern getaways
With MAN’s fuel-saving technology, NCL
embarks on a new era of cruising.
12 Testing the limits
In Oberhausen, real-life assessments
offer enhanced operation safety.
14 Sand & power
Building a complete power plant in the
middle of the desert is a daunting task.
MAN takes on the challenge.
18 Two voices for one team
MAN Diesel & Turbo and Fairbanks
Morse join forces to tackle the world’s
biggest gas market together.
20 Gas giants
Global LNG sourcing, transport and
storage enters a new era.
24 Smart savings
The EcoCam retrofit solution enhances
fuel usage for low-load operations.
The best of the Power Engineering world
With this first issue of MANmagazine by engineering solutions for a broad customer
MAN Diesel & Turbo, we invite you to explore range almost anywhere on the planet, and in
our universe of versatile technology. Join us on this publication, we strive to bring our readers
a world tour to Ecuador, Saudi Arabia, China the most interesting, illuminating and useful
and Switzerland to discover the fascinating topics and stories. We look forward to all of
and awe-inspiring details of cutting-edge your feedback and hope you enjoy a good read.
power, marine and turbo applications. As a
global player and oftentimes market leader, Find a wide range of additional content
MAN Diesel & Turbo provides high-end power online at > www.dieselturbo.man.eu
All information provided in this magazine is intended
for general guidance only and is not intended to be
used as a substitute for specific technical or commercial
information and advice.
24
26 Protecting profitability
Optimized machinery trains increase
efficiency at a mega PTA plant in China.
30 Local hero
A new generation of gas turbines offers
flexible solutions worldwide.
32 Boom or bubble?
Where is the global shipping market
moving? Two experts share their views.
34 News
Brief business updates from around the
world
35 Facts and figures
Formidable insights and numbers
02 03

man magazine 1/2015
Leading technology expert
MAN Diesel & Turbo serves
both a global and a diverse
clientele. The company’s
new CEO aims to further
strengthen customer ties.
Appointed to assume leadership
of MAN Diesel & Turbo as of
2015, Dr. Uwe Lauber embodies
both an engineer with a passion
for technological innovation
as well as a staunch believer
in customer orientation under any and all circumstances.
MANmagazine conducted an
interview to explore Lauber’s outlook and plans.
Dr. Lauber, you were appointed Sales
Director and CEO all in the same year. How
do you tackle such a far-reaching transition?
With tremendous motivation, but also
a healthy measure of humility. I have respect
for the tasks ahead of me and I am fully aware
of the responsibility that the company has entrusted
me with. After all, MAN has been successfully
writing industrial history for more
than 250 years. Yet more than anything else, I
feel honored and I’m looking forward to the
challenges in store. Considering the global positioning
of our company, we must always remain
in motion. So there’s a lot to do, and I’m
confident that my Executive Board colleagues
and I will continue to set the right course for
the future.
You have a reputation for believing in
“uncompromising customer focus.” Would
you agree? Our customers and the relationships
with them are at the heart of everything
we do and I am interested in implementing
this paradigm to an even greater extent in
our company. Therefore, both orders received
as well as growth targets and trends are now
bundled within a sales director position at the
board level for the first time, which is
my responsibility. Our partnerships with
customers are therefore moving further into
the spotlight, both from an organizational
perspective and in the mind-sets of our
“My home is
where the
customers are”
Focused on the future: Dr. Uwe Lauber
strives to reinforce the technological
leadership role of MAN Diesel & Turbo.
Photo: MAN
employees. Among my primary tasks will
be a continuously sharpened focus on MAN
Diesel & Turbo’s entire portfolio of products
and services and to promote our business beyond
individual segments.
How do you view the current economic
situation and where are further growth opportunities
for MAN Diesel & Turbo? Today’s
economic climate is certainly challenging,
but should actually encourage our company
to do even better. The future holds vast
potential, as MAN Diesel & Turbo plays a pioneering
role in many sectors with regard to
increased efficiency for its customers
through technological advantages. Just one
example is our new range of gas engines –
excellent products with a strong unique selling
point. The 51/60G is the most powerful
engine available on the market today. I also
feel confident about the Chinese market.
Pipelines are under construction, and the infrastructure
for liquid natural gas, or LNG, is
being expanded. In the future, turbomachinery
and engines will also be needed. Thus,
natural gas will continue to play a major role
in our business model. When converting gas
– for example, in coal-to-liquid and gas-toliquid
– we also have a unique product in the
MAX1 compressor, which was designed especially
for higher volume flows of higher performance
density and increased effectiveness.
Our competitors can rightly envy us.
Professional profile
Born in Bad Säckingen in Germany in 1967,
Dr. Uwe Lauber obtained a master’s degree in
mechanical engineering from the University of
Applied Sciences in Konstanz and also studied
business engineering at the business school
in St. Gallen. In addition, he received a Ph.D.
in mechanical engineering from the University
of Kronstadt in 2009. After working at the
company BOC Cryostar in different positions
for more than nine years, he joined Sulzer
Turbo – today MAN Diesel & Turbo – in 2000,
where he was responsible for the design, R&D
and testing of compressors. In December
2010, he was appointed Head of the Oil & Gas
business unit, as well as being named CEO of
MAN Diesel & Turbo Schweiz AG. On October
1, 2014, he joined the Executive Board of
MAN Diesel & Turbo SE, responsible for the
company’s global sales and after sales activities,
including the Marine business.
15
years
of MAN experience is part of Dr. Uwe
Lauber’s vita. He became CEO of about
14,000 employees on January 1, 2015.
You moved to MAN from Sulzer Turbo
in 2000 and headed the Oil & Gas business
unit. As your background is in turbomachinery,
do you also harbor a passion for
large diesel engines? I’m an engineer to the
core, and whether I walk through the production
bays in Augsburg, Oberhausen, Zurich,
St. Nazaire, Deggendorf, Ravensburg, Berlin,
Hamburg or Changzhou, the giant MAN-made
machinery and engines never fail to impress
and inspire me. It fills me with pride. Indeed,
turbomachinery is the technological area that
I’m most familiar with, so I spent weeks prior
to my new assignment to introduce myself to
colleagues at numerous locations, become
better acquainted and seek dialogue with employees
on site. It was a marvelous experience,
and I encountered many dedicated and talented
people who are tremendously committed
to the company.
Can you outline what you value most
about MAN Diesel & Turbo as a company?
Besides a product range that can quicken the
pulse of any engineer, I’m also proud of the
fact that MAN is part of the Volkswagen
Group. We are a long-established company
within a global organization and need to further
utilize the effectiveness and strength of
two powerful brands.
So far, Zurich has been your base, yet
your new role takes you to Augsburg. Will
you relocate? While I don’t plan to move my
family at the moment, I have taken a small
flat in Augsburg. Even though I am CEO, I still
remain the board member in charge of sales,
and that primarily means interaction with
customers. Sales executives should never
spend all their workdays in the office. My
home is where the customers are.
04 05

man magazine
1/2015
Next to six engines
MAN Diesel & Turbo also
supplied plenty of auxiliary
equipment.
my man
Up in
thinner air
Operating at an altitude of
2,400 meters, MAN engines
face challenging conditions
in a new Ecuadorian plant.
The Guangopolo II Plant serves
to satisfy the power needs also
expanding in Ecuador.
Navigating a labyrinth of
lines at roughly 2,400
meters above sea level.
Photos: Guerra Roberto
Vladimir Burbano, Head
of Operations at the
Guangopolo II facility.
L
ocated near Ecuador’s capital, Quito,
the new Guangopolo II Plant extends
an already existing site of the
same name. MAN Diesel & Turbo
has supplied most of the equipment
for this facility, namely six
18V32/40 engines designed to operate on heavy
fuel and equipped with turbo-chargers type
NR34/S, plus six alternators. MAN also provided
the auxiliary mechanical and electrical equipment,
piping, cabling and electrical set-up material
and spare parts, in addition to installation
supervision and commissioning. Designed as a
base-load plant to deliver power mainly during
the dry seasons when hydraulic plants can’t
produce sufficient MWh, Guangopolo II serves
to satisfy a rapidly growing appetite for electricity:
“Ecuador is growing up,” says Isabel
Bascones, Guangopolo II Project Manager at
MAN Diesel & Turbo. “The country’s expanding
infrastructure as well as its fast-paced economic
development process consume a lot more
power.” Already well-acquainted with the capabilities
of MAN, the Cuba-based SIECSA contractor
as well as plant operator CELEC, Ecuador’s
main utility company, worked closely with the
engine specialist during the complete project.
When running at 100% capacity, engine output
amounts to 8,110 MW each, with a total plant
output of 48,714 MW. Since November 2014, the
Guangopolo II plant has been poised to contribute
to the promising Ecuadorian development.
06 07

man magazine
1/2015
Lighting up
a brighter
future
With a metropolitan population
of more than 12
million, Dhaka is the
10th-largest city in the
world and more crowded
than Tokyo, London or
New York. The capital city of Bangladesh, one
of the most densely populated nations anywhere,
is most often featured in international
news with issues such as horrific traffic jams or
flooding. Yet despite many still crushing problems
such as deep-rooted poverty, Bangladesh
is slowly emerging as an economic player: A
2005 paper published by Goldman Sachs and
economist Jim O’Neill already looked beyond
the BRIC nations to the countries that would
shape the economic future of the 21st century,
and identified the Asian country as one of “The
Next Eleven.” While GDP growth rates for Bangladesh
have indeed surpassed 5 percent per
year in the last decade, unique challenges remain
for the developing country, with none
more vital than providing reliable power
sources. According to the CIA World Fact Book
2014, Bangladesh (population about 166 million)
and Hong Kong (7 million) currently
share the same power generation capacity,
which obviously leaves much room for improvement.
Yet without an established infrastructure,
the technology to generate and distribute
electricity that might work elsewhere
is unsuited for this Asian nation – which is
where MAN comes in.
The Bangladesh Power Development
Board called on foreign investors to provide
an additional 1,000 MW of capacity, with
MAN currently involved in a number of projects
throughout the country. In 2013, MAN
received a contract to supply 12 engines for a
power plant project in the capital, as well as a
further nine for the Gazipur District. Two
new projects were added in 2014, with the order
of two identical installations of three 18V
48/60 TS engines each, at the two locations
Nawabganj and Manikganj, just outside Dhaka.
All of these new facilities are powered by
MAN engines, generating electricity from
diesel, while providing the extra power and
stability Bangladesh needs to better reach its
potential. “Our plants can be set up within a
reasonable time frame and operate in remote
areas,” says Alexander Stöckler, Head of Sales
for Middle East and North Africa for MAN
Power Plants. Gas turbines, one of the most
common power plant technologies in the developed
world, are also not as efficient at this
smaller scale, considering the difficult load
pattern of the local grid. According to Stöckler,
the weak network needs power plants that
are capable of responding at short notice, because
fluctuations in the grid impact the operating
pattern and diesel engines are far
more suitable for responding to these interruptions.
“This is one reason why some of the
diesel power plants operate at peak load
times,” he explains.
Sustainable long-term growth can happen
even in the face of still-unresolved challenges,
and diesel-powered generators by MAN are
another guarantor that the people of Bangladesh
are on the right track for a future of development
and more economic stability.
India
Bangladesh
Photo: Peter Bialobrzeski/laif
As Bangladesh’s most populous city,
Dhaka has not only a vibrant cultural
life, but also torrential traffic.
India
2
3 4
5 6
7
1 MAN Diesel & Turbo Power plants
- Already installed:
1 and 2 Shantahar / Katakhali, 2 x 6 x 18V 32/40
- New Orders 2013/14:
3 CLC, Dhaka 12 x 18V 32/40
4 Desh Energy 3 x 18V 48/60TS
5 Kodda 9 x 18V 51/60DF
6 Nawabganj 3 x 18V 48/60TS
7 Manikganj 3 x 18V 48/60TS
08 09

man magazine
1/2015
With the maiden voyages
of the Norwegian Breakaway
in April 2013 and
the Norwegian Getaway
in February 2014, American
cruise line operator
Norwegian Cruise Line (NCL) set out on an ambitious
mission to drastically improve the
modern getaway experience. The Norwegian
Breakaway and the Norwegian Getaway are
part of NCL’s Breakaway line, each with a capacity
of 4,028 guests and a crew of 1,640, making
them some of the largest ships to cruise the
eastern Caribbean Sea. The Breakaway line
serves as the backdrop for NCL’s “Freestyle
Cruising” concept, with no set times or seating
arrangement for meals, no formal attire, and a
brand-new approach to deck design, allowing
for easy access to shops, restaurants and bars.
Another four ships will added be to the
Breakaway fleet over the next years, as part of
a new Breakaway Plus line: the Norwegian
Escape is set to embark on its maiden voyage
in fall 2015, and the Norwegian Bliss will follow
in 2016. Finally, another two ships are planned
for 2018 and 2019, as well.
The Meyer Werft in Papenburg, Germany,
is undertaking the construction of the new
ships. “We are very pleased with the continued
confidence NCL has shown us by tasking us with
expanding their fleet,” says Bernard Meyer,
Managing Partner of Meyer Werft. The shipyard
relied on the know-how of MAN Diesel & Turbo,
equipping the first two Breakaway ships and
with two 12V and two 14V 48/60CR four-stroke
medium-speed diesel engines, with a combined
capacity of 62,400 kW. In the planning
for the Norwegian Escape and the Norwegian
Bliss are three 12V and two 14V 48/60CR engines,
boosting overall capacity to 76,800 kW.
NCL was the first company to introduce
MAN 48/6CRs into its operating fleet seven
years ago. Ever since, all its MAN powered newbuilds
have been ordered with the fuel saving
electronic CR injection system. “The system provides
superior performance compared with
conventional engines,” says Benjamin Andres,
Head of Order Management Cruise & Ferry at
MDT. “We are proud to help bring the modern
cruise experience into the future.”
Modern
getaways
The Norwegian Getaway has its
home in New York and will offer
luxury cruises in the Caribbean.
Photo: gettyimages, Ingrid Fieback (2)
The Getaway is the second
ship in NCL’s Breakaway fleet
of luxury cruise ships.
The advanced MDT
48/60 CR four-stroke
engines power the
Breakaway fleet.
10 11

man magazine
1/2015
Many miles out at sea or far
away from solidly grounded
infrastructure, safety and
reliability is of paramount
importance when operating
the heavy machinery and
installations needed to explore for natural resources.
Extensive equipment testing prior to
installation saves time, money and even lives
– thus serving the pursuit of lower-risk strategies.
Completed in 2012, the multi-purpose
and open-air test facility (MUENSTER) in Oberhausen,
Germany, can perform gas turbine,
compressor and power generation tests for
customers in the oil and gas as well as process
industries. “Companies are trying to access
deeper and more complex sources of oil and
gas, which places higher demands on their utilized
equipment. Comprehensive testing is
more important than ever,” explains Thomas
Müller, Head of Testing in Oberhausen.
Müller and his team work closely with
other MAN teams, especially those in Zurich,
that are engaged in both design and manufacturing
of gas and steam turbines and highpressure
compressors used to transport and
store different types of gases. Each test procedure
is tailor-made according to customer requirements.
The MAN site recently completed
testing of some gas turbine-driven packages
– for example, a completely in-house-manufactured
train for the Hejre Offshore field in
the North Sea, as well as a gas-turbine-driven
compressor train for a UK oil and gas operator
focused on North Sea production, appraisal
and development activities. Work will also begin
shortly on another unit for BP, deliverable
to the Shah Deniz oil field off the coast of
Azerbaijan. “Yet our involvement actually begins
as early as the design stage, as we have to
configure the testing field at the same time,”
says Klaus-Dieter Mohr, Head of Assembly,
Packaging and Testing at the site. When a
compressor skid arrives in Oberhausen, the
team must finalize the plumbing, pipe work
and other electrical connections required for
it to run. “While we usually aim to complete
the actual testing in less than a week, the configuration
phase can easily take months,”
adds Müller.
Already equipped to test electrical driver
systems with outputs up to 20 MW, the
MUENSTER site plans to increase this capacity
to 40 MW. “As electrical drivers become more
popular, we’ll also be able to accommodate
any requested driver frequency,” adds Mohr.
Due to its sliding weather protection, the
MAN Diesel & Turbo facility can operate
under cover or open air, enabling so-called
Type 1 testing. “Thus, we run the machinery
exactly as on site, with the same gases, rather
than compromising in gas density as with
Type 2 testing. As these are often explosive or
toxic, we need comprehensive safety procedures
here,” explains Müller. Currently the
exception rather than the rule, Type 1 tests
will become more common. “The risks for our
customers are high, so they must know their
equipment has been tested to the limit.”
40
mw capacities
are an expressed objective at the
MUENSTER facility to accommodate
testing of electrical driver systems
with larger outputs.
Testing
the limits for safer
energy sourcing
Photo: MAN
The open-site testing area at
MAN Diesel & Turbo’s Oberhausen
location allows for full-load testing
with potentially dangerous gases.
12 13

man magazine 1/2015
Engineer Ayed Al-Fayedi serves as
Vice President of Operations at
the UCIC construction site and works
closely with the MAN team.
Photos:
Slow and steady: Carrying
huge engines, trucks rumble
toward their destination
150 kilometers south of Jeddah.
Supplying the massive engines and
all ancillary equipment for a new cement
plant in the desert of Saudi Arabia,
MAN Diesel & Turbo SE once again meets
the challenges of problem-solving in
a very remote location.
Sand & Power
14 15
Photos: Waleed Bin Talip

man magazine 1/2015
“If you need to
deal with a problem
today, you have
made a mistake
half a year ago.”
Ralf Göppel, Senior Project Manager,
MAN Diesel & Turbo SE
Each of the five engines features 20 cylinders
providing 560 kW/Cyl and renders a
performance of more than 15,000 hp.
Between Saudi Arabia’s Jeddah
Islamic Port on the Red Sea and
the Al-Sadiya Mountains, a desert
area not far from Mecca,
there is little more than sand and a handful of
camels and sheep. Yet in November 2014, five
giant trucks hauling huge monsters of steel
rumbled through the desert – scary black silhouettes
against an ancient golden landscape.
Their cargo was a 130-ton MAN 20V32/
44CR diesel engine for a new cement plant under
construction in the limestone-rich Al-Sadiya
site on behalf of the United Cement Industrial
Company (UCIC), a Jeddah-based Saudi
business established in 2013. MAN Diesel &
Turbo had received an engineering, procurement
and construction (EPC) contract to build
an independent diesel power plant for the
new facility. In its product portfolio, MAN
Diesel & Turbo carries specifically engineered
power plants for remote locations with no access
to electricity grids (island mode) all over
the world. And as these are the only source of
power, technical excellence is essential. Supplied
MAN engines for this project feature
modern common rail technology, an electronically
controlled injection system that controls
fuel consumption and emissions. For the UCIC
project, MAN supplies not only the engines,
but also all ancillary equipment – ranging
from the machine control-room and cooling
systems to the processing and disposal systems
– while the local consortium partner Al
Aman Company is responsible for all civil,
electrical and mechanical construction and installation
work. The project was signed off in
summer 2013, with construction commencing
a year later and final power plant handover to
the customer scheduled for February 2016. The
trailers’ just-in-time arrival at Old Makkha
Road, from where they turned east to the UCIC
site, was a timing triumph for senior project
manager Ralf Göppel and his team at MAN
Diesel & Turbo headquarters in Augsburg. Had
the engines arrived too early, they would have
disrupted work on the project’s ongoing building
phase, while laying the foundations for the
powerhouse, pumphouse, radiator area or tank
farm. Had they arrived too late, the delivery
would have delayed the next stage of construction,
especially installing the auxiliary modules,
steel structure, piping and cabling as well
as the installation of the 35-ton alternators inside
the powerhouse.
Timing the exact arrival is essential in a
project like this,” says Göppel, who always has
to cope with all kinds of eventualities, including
sandstorms, local incidents, late deliveries
or sudden lack of manpower. Delivering all
plant components to the UCIC site is a huge exercise
in logistics. While the Diesel engines
were built in MAN’s Augsburg works, most of
the other equipment was purchased from global
suppliers as far away as India or Finland.
They all must first undertake an almost epic
journey via European North Sea ports, to Jeddah,
and finally move down a sandy gravel
road to the UCIC site. For the first time, engines
of this type were initially put on a train to travel
from Augsburg to Duisburg in Germany for
final assembly, later transported via the Rhine
River to Antwerp in Belgium and then shipped
to Jeddah in Saudi Arabia. Overall, it took more
than a month to arrive at the plant in the desert.
Saudi Arabia’s cement industry is flourishing,
due to a construction boom caused by demographic
and macroeconomic factors.
Photos: Waleed Bin Talip
The MAN team meets with project
engineers to discuss the last preparations
before the first engine arrives.
50°C
during daytime
Crippling ambient temperatures are just
one of the challenges when working in
the desert. Others are sandstorms and
even flooding episodes.
A growing population and changing family
structures – such as the trend toward smaller
households – are increasing demand for residential
properties and new industrial areas, including
big oil refineries. At the same time, the
government vastly increased infrastructure
spending since 2013, resulting from a great year
for the oil industry in 2012 and an associated
20% surplus in GDP.
This has turned the kingdom into the largest
projects market in the Middle East, according
to the “Saudi Arabia Projects Market 2014”
issued by MEED, a Middle East business intelligence
provider. “Saudi Arabia is a key market
for our power plants division, where we have
gathered decades of experience,” says Howard
Barnes, Senior Vice President and Global Head
of Sales Power Plants. The UCIC power plant will
supply 55 megawatts , facilitating a cement production
capacity of around 5,000 tons per day.
Remote sites are, by nature, difficult to access
and each project presents its own engineering
and logistical challenges. The engines at UCIC
were designed to withstand local conditions,
including temperatures of up to 50°C. Special
pulse filter systems in front of the air-intake
ducts keep sand particles out, using compressed
air to blow air filters free when sensors
register a loss of air-intake pressure, while a
huge system of radiator coolers is designed to
regulate the cooling water systems.
Göppel describes his Saudi-specific challenges
as: “Sandstorms! Ramadan! Heavy
rain!” In spring and summer, the northwesterly
Shamal wind creates sandstorms that can
cut visibility to almost zero. In 2014, such
storms interrupted onsite work almost every
afternoon from June through August. Although
rare, rain is also a problem, as cities
and environs are not equipped with rainwater
drains. Jeddah was completely flooded after
heavy rainfalls back in 2010, with hundreds of
people killed. “When it started to rain in November
2014, the workers panicked and left to
reach their families,” recalls Göppel. Also that
year, Ramadan, the ninth month of the Islamic
calendar, proceeded during the month of
July, when daytime temperatures reached
50°C in the shade – if there was any shade.
While faithful Muslims may work throughout
this period, they must fast during daylight
hours. Göppel solved the issue by switching
work shifts to night time during the month of
Ramadan. Another aspect slowing down work
schedules are the five required prayer sessions
per day. “We expect less daily progress in Saudi
Arabia than in other countries, which must
be reflected by work schedules,” says Göppel.
For the four weeks of Ramadan, for example,
he calculates a 50% reduction in progress and
even 70% less efficiency during the annual
fortnight Eid and Hajj holidays. A vital factor
is the skilled MAN team of managers and supervisors
on site, who are coordinating and
driving the construction efforts. Some remain
in the desert of Saudi Arabia for a year or even
longer. On average, MAN has between 18 and
22 months to finalize a power plant project,
with significant fines and penalties built into
the contract for late handover to the customer.
“It’s important to quickly identify any real
problems and how to address them,” says Göppel,
who claims that almost nothing can ruffle
him anymore. “When you have a great team
like mine, be it on site or at headquarters, this
is the most exciting job in the world.”
16 17

man magazine 1/2015
Two
voices
for one
team
Through a strategic
cooperation with engine
expert Fairbanks Morse,
MAN Diesel & Turbo
broadens its access to
the booming natural
gas market in the U.S.
About Fairbanks Morse:
Founded in the late 19th century and now
an EnPro Industries company, power solutions
expert Fairbanks Morse Engine (FME)
is a manufacturer of heavy-duty, mediumspeed
diesel, natural gas and dual-fuel engines
from 0.5 to 3 MW for applications
specifically tailored to marine propulsion,
power generation, pumps and compressors.
FME covers a wide range of municipal, institutional
and industrial applications, primary
customers being the U.S. Navy and
the U.S. Coast Guard: 70 percent of the U.S.
Navy fleet uses FME engines, with supplier
relations dating back more than 70 years.
Based in Beloit, Wisconsin, and represented
through service centers across the U.S.,
FME has been a MAN Diesel & Turbo licensee
for marine turbine technology since
1995. www.fairbanksmorse.com
The U.S. energy market is undergoing
a revolution, a new gold rush
for the 21st century, but this time
the prize is natural gas. Thanks to
technological developments in
horizontal drilling and hydraulic
fracturing, it has become possible to tap natural
gas reserves that would not have been economically
viable using conventional exploration
methods. In 2013, shale gas production accounted
for approximately 40% of contiguous
U.S. Natural gas production, up from about 5%
in 2006, and this number is projected to rise
further over the next 20 years.
The abundance of gas has pushed down its
price, making it far more attractive than before
in comparison with more traditional
sources of energy, primarily coal and nuclear.
New infrastructure is being built to transport
the gas to its point of use, and U.S. energy providers
are replacing existing generation facilities
with distributed power, a network of
smaller gas-powered generators, more efficient
and more environmentally-friendly.
These new market conditions form the
backdrop for a new cooperation between MAN
Diesel & Turbo and Fairbanks Morse, one of the
top three companies in the U.S. energy market
in terms of installed megawatts. Fairbanks
Morse will use their contacts and experience
to bring MDT engines to a new, broader market
in energy production, a synergy with tremendous
opportunities for both parties. We sat
down with Marvin Riley and Howard Barnes to
talk about the future of this bold new venture.
Is it fair to say that this is a new golden
age for gas in the U.S.?
Marvin Riley: Absolutely. We expect 1,900
miles of new natural gas pipelines to be built
over the next two years, and this is primarily
because of the shale gas revolution. The gas
generation market is booming, and we would
like to take full advantage of that. The infrastructure
is being built to support whatever
technologies will take advantage of it. In the
future it could be transportation or other
technologies, but for now, the growth is in
power generation.
Howard Barnes: And this has opened up new
opportunities to expand our existing partnership.
FME has licensed MAN engines for
the marine market since 1995 and they have a
strong footprint and a strong presence in the
U.S.A. So it was a very logical step for us when
Howard Barnes is Senior Vice President at MAN
Diesel & Turbo as well as Global Head of Sales for
the Power Plant business.
Photos: MAN, Stephen Voss
“We have had a
great response
from customers.”
Marvin Riley, President, Fairbanks Morse Engine
we wanted to expand our presence that we
should work through Fairbanks Morse.
How is the newly installed infrastructure
different from the systems it is replacing?
MR: With the change in market conditions,
there are a large number of coal retirements
taking place in the U.S., and the nuclear industry
is basically flat. The real growth is in distributed
power. When you retire a coal plant,
you won’t replace that coal plant with an
equivalent plant that has the same capacity.
You replace the power with smaller, distributed,
more efficient gas-fired power plants,
and these facilities are a perfect fit for reciprocating
engines.
HB: We foresee considerable investment in
decentralized gas-based power plants, varying
in size between 10 and 200 megawatts.
What’s interesting is that we have made a
number of developments in gas engine technology
over the last few years, and these new
gas engines are able to operate in conditions
that are suited to the U.S. The market, going
decentralized, is looking more and more for
peaking applications, and gas engine technology
is very suitable for this.
What do you see as the benefit of this
cooperation, for your company?
HB: Fairbanks Morse Engine is well established
in the marine and power generation
Marvin Riley was appointed President of Fairbanks
Morse Engine in 2012, after holding various
positions at EnPro Industries and General Motors.
sectors, with manufacturing and assembly facilities
in the U.S. They have satellite offices in
many important segments of the U.S., so the
infrastructure is there, and this is infrastructure
that we don’t have. While FME does produce
engines, they are of a much smaller size,
namely in the range of 0.5 to 3 MW. The engines
we make are substantially larger, so
there’s no conflict. There’s really only synergy.
MR: And what MAN brings to the table is not
only a great product, and a great-performing one
at that, but a legacy of engineering excellence.
What has happened since the cooperation
was signed in June?
HB: We kicked off with quite an intensive
training and familiarization program where
Fairbanks specialists in most disciplines have
been visiting us in Germany to get to know
the technology and the gas engine product.
During a second phase, we’re launching this
product in the marketplace directly, with utilities,
with industrial groups.
How has the market reacted to news of
this cooperation?
MR: We have had a great response from customers,
and we’ve been very busy. We have already
met with at least 16 EPC firms, doing
lunch and learns. We have agreed to do much
deeper dives with some of the customers that
have an extensive project list, and we have
also started to bid on a number of projects.
HB: I think the cooperation so far really has
been very good. Fairbanks Morse is also an
engine manufacturer, so we speak the same
language. We understand each other. I trust
that once we’ve passed the five-year benchmark,
we will have established a business that
is profitable and sustainable.
18 19

man magazine 1/2015
Gas
Giants
Worldwide sourcing and distribution of
LNG has grown into a major industry player
while seeking to balance the growing
global appetite for affordable energy with
environmental concerns.
Photos: all mauritius-images, courtesy of OAO Sovcomflot
The new LNG carrier “Veliky
Novgorod” features a dieselelectric,
dual-fuel propulsion
MAN Diesel & Turbo system.
Securing power: The sprawling
LNG storage facilities at the
Rotterdam port in the Netherlands.
Among the largest commercial
vessels cruising the
oceans today are liquid
n atural g as c arriers
(LNGCs) that are almost 300 meters long and
more than 45 meters wide. One of the most
common vessel sizes is capable of carrying
170,000 cubic meters of super-cooled LNG
from its country of sourcing to where it is
needed to generate electricity to light and heat
homes and power the wheels of industry. MAN
Diesel & Turbo is in the fortunate position to
offer ship owners either four-stroke dual fuel
engines for diesel-electric propulsion or twostroke
MEGI high-pressure gas injection for
conventional propulsion. Typically diesel electric
propulsion solutions are powered by two
8L51/60DF and two 9L51/60DF types with a
combined total output of 34 MW. And the
market is booming. In July 2014, SinoShip News
announced that China is planning to build 60
new LNGCs by 2020, at a total cost of $12 billion.
While this trend is partially driven by increased
gas production in the United States
through non-traditional methods, LNG is also
attractive due to its green credentials.
Natural gas burns far cleaner than other
fossil fuels do, producing 30% less carbon
dioxide than petroleum and 45% less than
coal, as well as significantly lower levels of
sulfur and nitrogen oxides. “Natural gas and
air are mixed before entering the combustion
20 21

man magazine
1/2015
Five decades of LNG
Commissioned in 1964, the LNG Tanker
“Methane Princess” delivered the world’s
first commercial liquefied natural gas to
a British re-gasification terminal. Since
then, the sector has assumed an important
role in the global energy industry.
All time LNG trade totals 3,667 million metric tons
of LNG (the equivalent of 4,978 bcm of gas).
Japan: 1,707
South Korea: 464
Spain: 295
France: 268
Taiwan: 151
USA: 148
Others: 635
Indonesia: 721
Qatar: 566
Algeria: 525
Malaysia: 439
Australia: 268
Brunei: 238
Others: 911
424 LNG ships have been built and
more are currently on the order books.
South Korea: 329
Japan: 116
France: 38
China: 20
USA: 16
Others: 32
Scrapped: 31
Current Fleet: 393
Order book: 127
million tons
million tons
no. of ships
no. of ships
by importer
by exporter
LNG fleet by
shipbuilding country
LNG fleet by
current status
Source: Wood Mackenzie
MAN Diesel & Turbo engines will provide
the power for this floating storage and
re-gasification unit, anchored four kilometers
offshore from Montevideo, Uruguay.
263,000
cubic meters
is the overall storage capacity of an FSRU
unit currently under construction in South
Korea, so far the largest worldwide.
chamber and ignited via a small quantity of
injected MDO/MGO pilot fuel. The combustion
process according to the Otto-cycle ensures
the lowest nitrous oxide (NO x ) emissions
when operating in gas mode, which are
lower than projected future emission limits.
For the sake of fuel flexibility, the engine can
operate alternatively in liquid mode, where
fuel oil is injected via conventional main
pumps as in the 48/60B HFO engine,” explains
Dietmar Zutt, Head of Sales Merchant
Marine at MAN Diesel & Turbo.
The booming LNG market is driving more
than ship production, however. There is significant
growth and investment at every
stage of the process chain, ranging from new
production facilities and pipelines to new gasburning
power plants to utilize the abundance
of gas. One important link in this chain
is present at the beginning and end of every
LNGC journey, specifically in the ports where
the vessels are loaded and unloaded. A liquefaction
facility is required to cool and compress
the gas before taking it on board. At the
Photos: GDF Suez S.A.
destination port, the liquid gas is unloaded
before warming up and decompression for future
use. While this had traditionally been accomplished
in on-shore facilities, another solution
has been available since 2005, namely
a floating storage re-gasification unit (FSRU).
This unit sits a few miles offshore, allowing
LNGCs to dock and unload their cargo of LNG.
This gas can then be stored directly at the
facility before being pumped ashore through
a subsea pipeline. Compared with an onshore
facility, an FSRU can be set up with minimal
impact while its mobility allows for relocation
if market demands change.
In October of 2013, the Japanese shipping
company Mitsui O.S.K. Lines (MOL) signed a
so-called BOOT (build, own, operate and transfer)
contract for the duration of 20 years with
the Montevideo-based joint venture Gas Sayago
for LNG storage and re-gasification services
in Uruguay. Currently under construction
at Daewoo Shipbuilding & Marine Engineering
in South Korea, this FSRU will have a storage
capacity of 263,000 cubic meters of LNG,
rendering it the largest worldwide. Construction
will be completed by September 2016, and
the unit will enter service in November 2016,
following delivery and commissioning at the
port of Montevideo.
“The business success of FSRU technology
is rooted in cooperation and trusting relationships
among national governments, financial
investors and gas industry operators,”
says Christian Bale, Head of LNG Offshore at
MOL. “The recent contract with Uruguay results
in the FSRU being moored only five kilometers
off the coast of Montevideo, thus aptly
illustrating the necessary cooperation with
well-known and established partners.”
Power on the FSRU will be generated by
MAN dual-fuel engines with the flexibility to
run on diesel or excess LNG, as required. “We
chose MAN engines for a number of reasons,”
says Bale. “MAN is a credible manufacturer
with a good reputation and offers suitable
dual-fuel engines that meet our objectives of
low liquid and gas consumption, low emissions,
local support in Korea for the Daewoo
Shipyard and also where the vessel operates.
As the installation won’t move from its offshore
position for 20 years, it is essential to
receive MAN’s support to ensure uninterrupted
operations.” Bale also emphasizes that the
available training courses on the dual-fuel engines
are absolutely essential for MOL employees
– and not just in Germany, but also
where the vessels are actually built. “Last, but
not least,” adds Bale, “the fact that the engines
were ‘Made in Germany’ was a factor in the
selection process, as this assured us that production
and testing were of the highest quality
as far as engine design is concerned.”
“Due to their cutting-edge technology,
these engines are highly efficient and therefore
attractive to buyers. In gas mode, the engine
operates according to the lean-burn
four-stroke Otto combustion process,” says
Zutt. “The premixed lean gas/air mixture is
ignited by the compression ignition of a small
quantity of injected MDO-pilot fuel into the
main combustion chamber. The amount of
this injected pilot fuel is less than 1% of the
full-load liquid fuel quantity. This ensures the
lowest NO x emissions in gas mode, which are
even lower than projected future emission
limits. In the liquid fuel mode, the fuel oil is
injected via the conventional main pumps as
in the 48/60B–HFO engine.”
As part of Uruguay’s energy policy plan
2005-2030, the LNG import terminal project is
a cornerstone for energy development in this
country and considered a top priority by the
government. It is projected that it will significantly
change the national energy market by
providing an additional clean fuel source and
reducing the share of imported oil in the energy
mix. This strategy is not only good for
business, but also good for the planet.
“Working with
well-known
and established
partners is
essential in the
LNG business.”
Christian Bale, Head of LNG Offshore at MOL
22 23

man magazine
1/2015
1The amount of actuator
oil influences the
hydraulic pushrod.
Smart
savings
The MAN EcoCam retrofit solution for lowload
optimization of low-speed mechanical
engines improves fuel efficiency with a simple
yet ingenious approach to diesel engineering.
The MAN EcoCam’s
effect on NO x levels
has been taken into
consideration and
is in compliance with
IMO regulations.
2
Draining off actuator oil
allows the exhaust valve to
close earlier.
Asimple solution with great
impact; this is the premise
behind the new MAN Eco-
Cam retrofit solution. The
MAN EcoCam takes advantage of existing
mechanical engine technology by adjusting
the amount of actuator oil in the engine’s hydraulic
pushrod (1). In effect, oil is drained off
the circuit through an added pipe (2), which
enables the exhaust valve to close earlier than
in a traditional diesel engine. The result is
higher compression pressure (3), and the creation
of a “virtual” or flexible cam profile. This
profile serves as the backbone of an optimized
circuit that allows higher combustion pressure
even at lower fuel-oil consumption (4).
“The MAN EcoCam adjusts the exhaustvalve
timing between 10% and 60% load, giving
a 2-5g/kW fuel saving with minimal to
no interruption to a vessel’s schedule during
installation,” says Christian Ludwig, Head of
Retrofit & Upgrade. For smaller engines, this
could mean payback periods as small as 18
months. Even with oil prices on the low end,
the technology is still feasible. The MAN Eco-
Cam is available for S50MC-C engine types,
and will soon be rolled out for the whole midbore
and large-bore engine program.
Earlier closing of the
exhaust valve allows
for around 10%
higher compression
pressure.
3
Illustration: Hokolo 3D
Adjusted
valve opening.
The cam’s profile is
controlled by the adjusted
amount of actuator oil.
This allows for the new flexible
or “virtual” cam profile.
4
With fuel savings between 2-5 g/kW,
the MAN EcoCam could pay for
itself in as little as 18 months, for
smaller engines.
24 25

man magazine
1/2015
Teamwork and trust is essential
for a project of this magnitude.
The rising cost of raw materials
exerts pressure on
manufacturing margins. By
increasing production efficiency,
MAN Diesel & Turbo
production trains facilitate
even expanding competitiveness
for a leading PTA
manufacturer in China.
Protecting
profitability
The PTA plant operated by the Hengli
Group is located in Dalian, in the
south of China’s Liaoning Province.
Foto: Photos: Eric Gregory Powell
“With this
partner, we
have entered
the league of
mega PTA
plants.”
Dr. Lothar Wallscheid, VP Basic Industry
segment, MAN Diesel & Turbo
This radial gear stage compressor
RG160 reflects the rapid turbine
development of recent years.
B
ased in Dalian, China, the Hengli
Group is one of the world’s major
manufacturers of terephthalic
acid (PTA), one of the key chemicals used in
making plastics and textiles. Recently, the rising
costs of raw materials have squeezed margins
to the point that some of the company’s
competitors have struggled to stay profitable.
The Hengli Group, however, has managed to
buck that trend. One of the key reasons for this
business resilience is its decision to use MAN
Diesel & Turbo production trains to upgrade
the efficiency of its manufacturing facilities in
Dalian. “With the Hengli Group as one of our
major partners, we’ve entered the league of
mega PTA plants,” says Dr. Lothar Wallscheid,
VP Basic Industry segment at MAN Diesel &
Turbo. “For the Dalian facility, we initially developed
four machinery trains that became
operational in 2013. As requirements grew,
Hengli ordered another two identical trains –
so far the world’s largest of their kind.”
“Our trains are the beating heart of PTA
production for Hengli,” adds Marc Groß from
MAN Diesel & Turbo’s onsite team. “The train
consists of a compressor that powers the production
reactor, an axial expander used to recover
energy from the production process, as
well as a steam turbine and engine generator
to produce electricity powering the plant.”
Hengli’s PTA production facilities are of
particular strategic importance to the company,
because around 50% of the manufactured
26 27

man magazine 1/2015
Labyrinthine stairs provide
access to the overhead oil
tank, visible at upper left.
Condenser of a state-ofthe-art
steam turbine –
integrated energy concepts
ensure maximum efficiency.
Each of the machine trains
includes an expander for
energy recovery.
was the total project duration. Even
though upgrading a PTA production train
is a complex undertaking, MAN Diesel &
Turbo completed the project significantly
ahead of schedule.
2years
PTA output is actually consumed within China
for the national textile industry. This strategic
move also helps protect it from the volatility
of the PTA market – another reason why the
upgrading of its production trains with
MAN Diesel & Turbo equipment plays such an
important role for the company.
“MAN Diesel & Turbo is by far the worldwide
market leader in the development and
manufacturing of machinery trains for PTA
production,” says Jörg Meier, project manager
at MAN Diesel & Turbo. “Within the last five
years, more than 20 such trains were built
worldwide at a cost of several million euros
each – and most of them came from MAN.”
After having effectively upgraded four
production trains at the plant, Hengli decided
to modify its production process for trains 5
and 6 to improve efficiency still further. Despite
tough competition, MAN Diesel & Turbo
won the contract based on the quality and reliability
of its machinery and outstanding technical
knowhow, supported by a highly collaborative
customer relationship. “We developed
a high level of trust with the Hengli management
team during the upgrade of the first four
“Our machinery
trains are the
heart of Hengli’s
PTA production.”
Marc Groß, Onsite Project Manager
trains and worked hard to build a deep understanding
of Hengli’s specific requirements.
That’s why they selected us, even though our
bid was higher than some of the others. Our
customer was willing to invest a little more to
receive the highest quality and most reliable
solution. At the end of the day, the fact that
our equipment just works was probably the
key differentiator for us,” notes Groß.
Valued highly by the customer in Dalian
is the fact that MAN Diesel & Turbo team work
on trains 5 and 6 was completed in early 2015,
significantly ahead of schedule. “There were
no major issues with deployment or operation
of any installed production trains and we
managed to shorten the project duration
twice,” he says. “The Hengli Group values that
very highly.” Customer focus also plays a key
role for Lothar Wallscheid: “As the world’s population
rises, so does the need for basic materials
such as terephthalic acid,” he explains.
“The PTA industry offers an excellent example
for how our development work allows customers
such as the Hengli Group to continuously
optimize their processes with regard to efficiency
and capacity.”
Photos: Eric Gregory Powell
The secret to this success story is the excellent
cooperation between teams from
across the MAN Diesel & Turbo organization,
the Hengli Group and its partner INVISTA, a
subsidiary of US-based Koch Industries. “We
have had a trusted cooperation with our partners
from MAN Diesel & Turbo for years,” says
Mike Lin, Vice General Manager at Hengli
Group. “Together with us, MAN has raised the
production of PTA to a new level, hence substantiating
the leading position of Hengli.” All
of these factors result in enhanced customer
satisfaction, which places MAN Diesel & Turbo
in an excellent competitive position if and
when the Hengli Group decides to upgrade
more of its PTA production trains.
This particular partnership also looks
promising, as the Hengli Group pursues a
broad range of interests and activities across
many different manufacturing areas. These
include petrochemical refining, a field where
MAN Diesel & Turbo offers a high level of experience
and expertise in equipment manufacturing.
Considering the supplier’s focus on
high quality and reliable machinery, the successful
cooperation in Dalian provides an
outstanding platform for future success.
28 29

man magazine 1/2015
In times of continuously rising energy
costs and efficiency focus, a new
generation of gas turbines offers flexible
solutions for applications worldwide.
Local Hero
Starting up in late summer 2013 at the Solvay
plant in Rheinberg (above), the first custom-tailored
MGT gas turbine package has proven itself an
innovative and reliable power generation system.
Photos: MAN
D
ecentralized energy production
to supplement or even
replace dependence on conventional
power grid infrastructures has certainly
been on the minds and drawing boards
of engineering experts for a while. Yet as Germany
currently debates how to best implement
its consensus-built energy transition
process, including some passionate controversy
over the construction of high-voltage power
line corridors to transfer wind-generated
power from the North to the economically
booming South, both the public and private
sectors increasingly engage in efforts to increase
their independence.
While solar panels on the roof and a biogas
plant down the road might alleviate communal
dependency on a conventional infrastructure,
the demands of industrial manufacturing
and other production plants like breweries,
paper plants, food processing plants and agricultural
green house production facilities
necessitate a continuous, reliable and highvolume
power supply to operate efficiently —
including heating and cooling processes.
Many companies turn to MAN to explore
independent power-sourcing options. Solvay,
an international chemical group, was the first
MDT customer to install and start up a twoshaft
MGT6200 gas turbine at its production
facility in Rheinberg, Germany. Linked to a
generator and equipped with state-of-the-art
technical instrumentation, the compact and
highly efficient unit features six megawatts
of electrical and another 11 megawatts of thermal
performance and has since — together
with the already installed units from MDT —
rendered the Solvay facility almost completely
independent in terms of electrical power
needs. “With this eminently efficient gas turbine,
we have added another component to
our combined heat and power concept at our
production site,” emphasizes Richard Rösler,
Site Manager of Solvay in Rheinberg. As the
system also harnesses the turbine’s waste
heat, it reaches a high overall utilization rate
about 80 percent — thus saving emissions of
about 7,000 tons of CO 2 per year at just the
Rheinberg production site.
The new MGT gas turbine system provides
state-of-the-art reliability with a small
footprint. “Its size, very low maintenance demand
and short installation schedule makes
it suitable for flexible deployment anywhere
in the world, where decentralized power generation
is needed,” says Sven-Hendrik Wiers,
Vice President Gas Turbines, MAN Diesel &
Turbo in Oberhausen, Germany. “It can serve
as a back-up solution for sites with fluctuating
renewable energy input such as solar and
wind power or remote locations not easily
connected to larger grids.” During the MGTseries
development phase, MAN engineers invested
much time and effort in a particularly
clean combustion rate. The MGT6000 series
designed for both electricity generation as
well as a mechanical drive for compressors
and pumps reaches single-digit NO x values in
load levels of between 50 and 100 percent -
impressively proving that the new gas turbine
is not just highly efficient, but also an environmentally
conscious power producer.
With natural gas resources most likely secured
for decades, even coal traditionalists
such as China power producers are moving
toward cleaner fuels, global demand for gas
turbine-powered energy generation is growing
steadily and successful product introductions
such as a 50-hertz version for Solvay
serve to further strengthen the market position
of MAN Diesel & Turbo. “We are currently
developing a version for 60-hertz power grids
like those in the US and in Latin America,” reports
Wiers. “We might supply off-the-shelf
systems, but also work with our customers to
tailor solutions according to technical conditions
and individual power requirements.
Thus, we are just as flexible as our turbines.”
“Our gas turbines
can be deployed
anywhere for
decentralized
power generation.”
Sven-Hendrik Wiers, Vice President Gas Turbines,
MAN Diesel & Turbo
80 %
utilization
rate of natural gas results in outstanding
economic efficiency and 7,000 tons less
CO 2 emissions per year.
30 31

man magazine
1/2015
Boom or bub ble?
ions
Shipping rates have gone up by just 25% since 2008, yet the
world fleet has increased by 50%, with shipping companies
still on a shopping spree. Dr. Martin Stopford, President of
Clarksons Research, and Lex Nijsen, Head of Marine Medium
Speed at MAN Diesel & Turbo, offer their expert opinon
what this trend is all about.
Dr. Stopford, the global shipping fleet
continues to grow. Is the market overheated?
Dr. Stopford: There was talk of a bubble in
2013 when ship orders reached $129 billion —
42% more than the previous year, and the
highest rate since 2008. This despite a long recession,
caused by the excesses of the 2000s
and followed by the 2008 financial crisis. Yet
while the current spending spree shows characteristics
of a bubble, it is not unusual in
shipping cycles. It is also fed by investment in
fuel-efficient ships as a response to International
Maritime Organization emission rules,
as well as highly competitive new ship prices
and accessible credit for construction.
In the light of this situation, what must
shipping companies take account of?
Ship owners typically buy when the market is
slow and prices are good. It takes two to three
years for delivery and they hope the market
will have improved by then. Those keeping a
close look on the balance sheets, and not ordering
too much, will emerge as lean players
after the cycle, ready to make a profit. This is
just market economics. Historically, ship
owners made some of their most rewarding
investments at a time when ordering hardly
made sense. Shipping investors must take
risks to win, but it is almost impossible to tell
whether there will be a depression in three
years or another great Asian boom. So it’s
good for the world economy that ship owners
“Those keeping a
close look on balance
sheets, and
not ordering too
much, will emerge
as lean players
after the cycle.”
Dr. Martin Stopford, President of Clarksons Research,
London, UK
tinue. Ship owner capacity peaked at 160 million
tons in 2011, driven by high freight rates.
This was no doubt a bubble influenced by the
very profitable period in the 2000s, when
owners earned more than $100,000 per day
with some ships. Since 2011, the shipbuilding
industry has cut about a third of its capacity,
but that reduction isn’t enough. If owners
keep buying ships, rebalancing supply and demand
will take a long time.
Why are the order books of shipyards
still bulging?
It is an attractive time to buy. The most important
factor behind the current buying
spree is probably the banking sector, which
has not been keen to foreclose on ship owners.
Without the distressed sales seen in previous
recessions, owners have kept prices of second-hand
vessels high, encouraging the purchase
of new ships rather than pre-utilized
ones. And, with all the shipyard capacity in
Asia, it is easier to get credit from one of the
credit providers based in Korea or China.
From your point of view, are we headed
for a boom period or rather a recession?
I don’t think the industry will flat-line. We
will see some mini booms. Still, considering
the combination of shipyard over-capacity,
pressure to invest in fuel-efficient ships, easy
shipbuilding credit as well as a backlog of surplus,
it will take a few years to return to a
more balanced market.
Illustrations: Berto Martinez
Mr. Nijsen, addressing the same issue:
Is the market actually experiencing a
boom or rather a bubble?
Lex Nijsen: Wondering whether the shipping
industry is heading for a boom or bubble really
depends on individual applications. This
is a highly diversified industry, with many
smaller owners serving different markets, so
a bubble in one area won’t be overheating the
entire global market.
So the shipping market does not render
a unified appearance. Where is the current
demand coming from?
Our order books, which offer an indication of
where markets are heading, indicate mixed
trends. While the container market has
shrunk in the face of a struggling global economy,
other markets are booming. Among
MAN’s largest markets nowadays are specialized
vessels such as cruise ships, LNG tankers,
governmental vessels and ferries – not container
feeders. Let’s take a closer look: The leisure
ship industry is thriving, as cruising becomes
ever more popular – especially among
baby boomers now retiring with generous leisure
funds. At the same time, political tensions
in Southeast Asia have actually created
a demand for patrol vessels to protect borders,
fishing waters, and marine gas and oil reserves.
With developing economies opening
up to tourism, the ferry market is also growing.
And every catastrophe, like the tragic 2014
“This is a highly
diversified industry,
with many smaller
owners serving
different markets.”
Lex Nijsen, Head of Marine Medium Speed at MAN
Diesel & Turbo, Augsburg, Germany
take these risks, as ships are available when
needed. The cycle is one of booms and busts:
When freight rates rise, owners buy more vessels.
Increased capacity and declining rates
force ship owners to cut their fleets.
So where are we heading? Apparently,
this cyclical development is not unusual …
Indeed, it isn’t: There have been 23 shipping
cycle booms and busts since 1741, all for very
different reasons. I think this cycle will conferry
accident in South Korea, raises demand
for state-of-the-art ferries.
Are environmental aspects also an issue?
Yes, these are also a factor. Investing in cleaner
technologies also spurs growth. New emission
regulations issued by the International
Maritime Organization have spurred a greater
demand for our optimized propulsion systems.
I think we will see changes in the fishing
industry, where there has been little investment.
Upcoming environmental regulations
and the economies of scale will force
fisheries to completely renew their fleets.
How would you assess the situation of
the container industry?
The container market is uneven. Smaller container
feeders and tankers operating in the
northwest Baltic area and the Mediterranean,
for example, have been harder hit by the global
economic slowdown than Southeast Asian
markets. As for the current overcapacity of
cargo ships, we might see some degree of
speculation in lieu of future market growth.
This is a normal part of the shipping cycle,
and ship owners are generally experienced in
judging the market. Also, some capacity has
been absorbed through slow steaming.
Speaking of Asia: China’s economy growth
has been slowing down. Must ship yards
fear a crisis?
As the world’s top shipbuilder, China now
constructs not only for exports, but also
local demand. And the nation is diversifying
into specialized and high-value market segments,
such as dredgers for port and construction.
I don’t forecast a slow-down here
and also expect the current boom in energy
transport to last for a while, as China and
Japan increasingly switch from coal and
nuclear energy to gas.
So you remain optimistic?
Yes. Overall, I don’t believe that the shipping
industry is heading for a double-dip
recession. I am an optimist by nature.
32
33

man magazine
1/2015
Steam generated by the heat expands in the steam
turbine and drives the electrical generator.
British waste conversion
WHEN contracted to build the waste-toenergy
plant “Wilton 11” in England, the Parisbased
CNIM industrial solutions group
brought MAN Diesel & Turbo on board. The
state-of-the-art plant will supply northeast
England with resource-friendly energy, reducing
carbon emissions while at the same time
redirecting 90% of the area’s garbage away
from landfills. Wilton 11 will generate energy
by incinerating 60 metric tons of waste per
hour. MAN Diesel & Turbo will supply not
only the steam turbine, but also the generator,
condenser, lube-oil system and the complete
instrumentation and control technology.
CNIM’s environmental operations division
has often worked with MAN Diesel & Turbo
before. “MAN has brought a comprehensive,
technical competence to our project and is a
partner that we know we can rely on,” comments
Olivier Serres, Steam Turbine & Condenser
Purchaser at CNIM.
Power for Gibraltar
2014 ended on a high note for MAN Diesel & Turbo. An important contract for the
supply and installation of six gas and dual fuel engines to operate a new base load
power plant in Gibraltar was signed shortly before Christmas. “This is a significant project
for us,” says Howard Barnes, Global Head of Sales for the Power Plant Business. “The
Government of Gibraltar was looking for reliable generation capacities with a low carbon
footprint. The chosen combination of gas and dual fuel grants both: The plant
benefits from low CO 2 emissions when run on natural gas and yet offers full fuel flexibility
via the three dual fuel engines.” By mid-2017, three 14V51/60G and three
14V51/60DF engines will supply electrical energy to the British Overseas Territory. The
new plant will replace several existing but dated diesel engine plants, which also run
on MDT aggregates. The French engineering, procurement and construction contractor
Bouygues Energies & Services SAS will build the plant.
Rising high above the Strait of
Gibraltar, the famous rock looks
down on a bustling economy.
Facts & Figures
Proud heritage
257
years! That’s how far back MAN’s roots
reach. On October 18, 1758, the first blast
furnace was fired up at St.-Antony-Hütte,
the oldest iron works in Germany’s industrial
Ruhr region. Ever since then, MAN has been
committed to the company philosophy
“Engineering the Future,” with a focus on
the key technologies transport and energy.
1.5 million cubic meters
per hour …
… is the amount of air that the largest axial flow
compressor from MAN Diesel & Turbo can suck in. At
this capacity rate, the entire air volume of the Cologne
Cathedral could be exhausted in merely 16 minutes.
The velocities reached by the turning parts of turbomachinery are staggering. Taking a closer look at
MAN Diesel & Turbo’s steam turbines reveals that the fastest tip speed of an end stage runs up to …
1760 kph
That pace amounts to
Mach 1.5, the typical cruising
speed of a Eurofighter jet.
69,720 kW
=
is the output of the world’s largest engine, a
low-speed MAN B&W 12S90ME-C Mark 9.2 type.
It powers the “CSCL Globe,” which became the
hitherto largest container ship in the world when first
launched in November 2014. This engine performance
corresponds to the output of 78 Bugatti Veyron
Super Sports, the fastest street-legal production car.
Adding SCR systems raises
compliance with new Tier III
emission rules.
Green pass for Petrofac
MAN Diesel & Turbo has won the contract
to provide Selective Catalytic Reduc-
chemical reaction. MAN engines already
atures of up to 400°C and thus achieving a
tion (SCR) systems for each of six MAN comply with Tier II of the International
16V32/44CR engines ordered last year for Maritime Organization’s emission rules.
the global oil and gas services provider MDT and Petrofac have also entered a
Petrofac. The engines will be installed in 12-year service contract for the management,
maintenance and monitoring of the
the Petrofac JSD 6000 deepwater derrick
lay vessel scheduled for delivery in 2016. engines. “We are delighted to work with an
SRC reduces the emission of polluting industry leader on the design and build of
nitrogen oxide (NOx) by up to 80% by the vessel’s key components,” says Yves
injecting urea into exhaust gases, passing Inbona, Managing Director of Petrofac’s
it through a catalytic converter at temper-
Offshore Capital Projects business.
Photos: MAN(2), gettyimages
Illustrations: MAN, shutterstock, fotolia
116,000 euro
donation for
hospital ship
MAN Diesel & Turbo donated
spare parts and services
valued at €116,000 in order to
keep the engines on board the
hospital ship Africa Mercy in
top condition. The ship is now
bound for Madagascar, where
it will remain until June 2015,
providing medical assistance.
20%
more energy is now available to Burkina Faso since the
expansion of the power plant near Bobo-Dioulasso. Each of
the two expansions, “Bobo II” and “Bobo III,” has two
MAN 12V48/60 engines, increasing the capacity of the
plant by 24 MWh.
34
35

Here it is – the brand new MAN 175D.
A high-performance marine engine,
robust and reliable by nature.
Ay folks, just like ol’ Tugboat Joe!
Welcome to the future of high speed marine mobility.
Find out more: www.175D.man.eu