November 2003 - Eitzen group

Eitzen NewsNOVEMBER 2003 No. 1High ethicsHuman touchInnovationDynamics

Camillo Eitzen & Co ASEitzen NewsNovember 2003 No. 1Published by:Camillo Eitzen & Co ASCamillo Eitzen HouseSmakkedalen 8DK-2820 GentofteDenmarkTelephone +45 7733 8600Editor:Peer Harms LarsenLay out:Anne KokFront cover:OBO carrier “SIBOTI”Contents:Camillo Eitzen & Co ASLogo and Visual SymbolThe Brand PlatformPhilosophy of NamesEitzen BulkEitzen ChemicalEitzen GasEitzen ShiipingCamillo RealEitzen IndustriTESMA - Ship Management“New” ActivitiesEitzen Bulk opens in AustraliaPersonaliaIt is with great pride, combined with humblenessand respect; we address you for thefirst time on behalf of the restructuredcompany in the old name of CamilloEitzen & Co AS.4 Generations - 3 Centuries - 2 Families- and now back to Square 1Also on behalf of previous generations, wewould like to start by thanking the Tschudifamily for the partnership over all theseyears. It is unique in a way to have achievedsuch a long lasting cooperation.But the importance of the future exceedsthe one of the past.Since the bankruptcy in 1986, whereTschudi & Eitzen restarted with 2 vesselson technical management and 4 employees,enormous efforts from all - and constantlyincreasing number of employees -, haveresulted in a sound and solid platform ofmarine activities.With a centre of gravity in Copenhagen, aworld wide and diversified Group of ShipOwning, Ship Operators and ShipManagement has been established.We would like to thank all employees ofTschudi & Eitzen Group for their loyal andvaluable contribution in creating this platform.This business platform has now been dividedinto two separate entities, enabling eachCompany to focus on their own future.For the Eitzen Group this implies that 50%ownership in non core activities, has beentransformed and consolidated into 100%ownership in core business.For Camillo Eitzen & Co this implies thatwe are now a 100% family ownedCompany.Our first task has been to confirm andexpress our corporate values through abranding process and to create an identityfor the future development.This is a dynamic process and everyone inthe Organization will be involved going forward.Through our values we are making ourpromises, through our mission we shallreach our vision.We are returning to a simplified organizationmodel, with short and direct responsibilitylines.This in combination with the focus on thepresent core business segments, and possiblenew acquisitions, will release the motivation,determination and ability to thrivedynamically forward with passion and professionalism.We would also like to direct a warm thankyou to the resigning top management andBoard of Directors of Tschudi & Eitzen.Their efforts have been instrumental inachieving a well functioning split.Finally a sincere thank you with the deepestadmiration to the architects and engineersof the split; Christian Wessel, PetterMannsverk Andresen, the lawyers atWikborg & Rein, especially AreZachariassen, the auditors of Ernst &Young, especially Johnny Duedal andNordea.Thank youWe are looking forward to the futureThrough dedication and innovationwe will make a difference.Warmest regardsAxel C. Eitzen together with Nina EitzenManaging DirectorChairman2 Eitzen News

Logo and Visual SymbolBy Nina Eitzen, Chairman of the BoardCreating a new logo and identity forCamillo Eitzen & Co AS and TheEitzen Group, has been one of ourfirst challenges. With great respect forwhat a logo represents, we wanted tocreate a strong visual symbol, whichwould clearly represent our businessand philosophy, and which would alsobe a well defined and positive trademark.Therefore a lot of thought and energyhas been put into the process, as therewere many factors to include and consider.The historical fact is that CamilloEitzen first was established in 1883 -and now re-established in a new framein 2003. In this process we have beenworking on developing a brand platformfor the new company, focusingon historical factors, business idea,aims and means, corporate values andour promises to the customers. Thisplatform has been an important basefor developing our new logo.The main challenge was to create alogo which would symbolise andinclude all the Camillo Eitzen activitiesin the global arena, its history andtradition combined with innovationand future development - as well asour corporate and human values.In addition it was important to combinethe logo with a new company flagand a new funnel mark.In this process we have been workingclosely with the Norwegian designerand friend Søren Yran, who also wasresponsible for the previous T&Elogo. Søren has been very involved inthe branding process and hence has agood understanding of our philosophyas an important base for creatingour new logo & design program.Søren describes our new logo accordingly:"The logo is a strong symbol andcommunicates a clear message.It is straight forward and easy torecognise in the global arena. Theclean and crisp E for Eitzen and the Cfor Camillo identifies both CamilloEitzen & Co, and The Eitzen Group.The E being slightly more dominantemphasises Eitzen and our maintrademark. The figurative shape of afunnel or a ship-alike picture representsshipping as our core business.The square frame, the blue and whitecoloured emblem, and the red colourand belt at the funnel - are all importanthistorical elements.Furthermore the composition of ournew symbol visualises our corporatevalues:- Honesty and ethic values enhancedby clean and crisp simplicity.- Human warmth and dedication representedby the colour of blood.- Dynamic power by the asymmetrictilted white edge, making the red portionlean forward symbolising movement.- Innovation by a new way of combiningthe initials C and E - to a unifyingfigure opening up to future -emphasising that Camillo Eitzen buildon the past but look to the future."We are very pleased with and proud ofthe result, and really feel the logo representsand visualise who and what wewant to be in Camillo Eitzen and theEitzen Group.We believe this symbol will make iteasy to recognize the Eitzen groupworld wide and boost the team spiritinternally. We would very much like toconvey our sincere thanks to Sørenfor his professional and creative work,and everyone else involved in theprocess.We would also take this opportunityto thank Tone Ringstad of DinamoConsulting, who has been the architectand inspirator behind developingour Branding Platform.As a symbol of Camillo Eitzen & CoAS and The Eitzen Group - we reallydo hope that everyone in the Groupcan identify themselves with - and beproud of our new visual brand.3

Platforma business culture where high ethics are not only wellknown but are lived every day everywhere in ourorganisation. Through the behaviour, attitudes andbusiness appearances in every day's life, our businessculture will reflect what values we prioritise. Thebusiness culture gives an impression.The more focused you are on the brand and livingthe corporate values, the more the Eitzen Group isable to deliver what we promise. In order for us tosucceed in our deliveries, the key focus is the corporatevalues. We all need to define what they mean inour job, what they mean to our team, what theymean in leadership and how we together in theEitzen Group can be trustworthy in the meetingswith our customers. Seeing is believing, talkingabout values is only the beginning. Our commonchallenge is how we together can bring the Eitzengroup forward in the values driven way we havebelieve will give meaning to us and the customers.That's truly what will make a difference!Below is the Eitzen Group brand platform, definingthe foundation of our brand!5

Philosophy ofNamesBy Axel C. EitzenThe Company Camillo Eitzen & Co. was foundedby my Great Grandfather Captain Camillo Eitzen,who had been sailing as Captain with the OwnerGustav Conrad Hansen of Tønsberg.Gustav Conrad Hansen was a significant Owner,and has been recognized as being the Owner of thefirst tanker in the world, the three masted Barque"Lindesnes" commissioned in 1877.In 1879 Camillo Eitzen married the daughter ofGustav Conrad Hansen, and in 1883 he wentashore to establish his own company, which wasnamed Camillo Eitzen & Co. Some years laterCaptain Henry F. Tschudi joined the Company.Camillo Eitzen & Co changed name into Tschudi &Eitzen in 1936.Based on this history, it is therefore natural for theultimate holding company, to revert to this old traditionalname:CAMILLO EITZEN & CO ASAll the national holding companies in different countries will be named accordingly, like in Denmark we have:CAMILLO EITZEN (DENMARK) A/SIn order to combine the tradition with the future, it has been decided to market the entire Group with its diversifiedactivities all over the world, as:EITZEN GROUPIn compliance with this philosophy, the shipping related core businesses within the Group have been namedwith Eitzen as a "prefix" to their activity, such as:EITZEN BULK A/SThe Eitzen Group will also be involved in various non shipping related activities. These activities have benamed with Camillo as a "prefix" to their activities, such as:CAMILLO REAL A/SWe thereby hope to have established a logical and powerful brand of names within the Group.6Eitzen News

Eitzen BulkEitzen Bulk A/S, Copenhagen was established as Tschudi& Eitzen Bulkers (DK) A/S early 1997 when Tschudi &Eitzen Bulkers AS, Oslo purchased EAC Shipping A/S,Copenhagen from The East Asiatic Company Ltd. A/S asa going concern. 80% of the shares are held by CamilloEitzen & Co. AS. Management and senior staff of thecompany hold the remainder 20%.Eitzen Bulk is conducting its business as both ship ownersand operators, and apart from the head office inCopenhagen Eitzen Bulk has representative offices in NewYork, Rio de Janeiro, Singapore, Hong Kong and as from1st October 2003 also in Melbourne.Eitzen Bulk's mission statement is:"We aim to be market leader in providing value-added andcost effective transportation services to our customers withfocus on high ethics and quality".The Chartering and Operations staff at Eitzen Bulk's headoffice and overseas offices place great emphasis on havingclose personal relationships with existing as well as potentialnew customers. Besides the usual marketing objectivesthis facilitates a fruitful dialogue about each customer'sspecial requirements and problems, which enables EitzenBulk to tailor its services to satisfy these requirements.Typically, on any one day, Eitzen Bulk operates a fleet ofabout 60 vessels mainly consisting of handymax vessels (35- 55,000 DWT), and in addition handy (25 - 35,000 DWT)and panmax (60 - 75,000 DWT) bulkers are employed. Thefleet has a total carrying capacity of about 2.5 mill. DWT.The first vessel in a series of 6 handymax newbuildingsordered at Oshima and Imabari shipyards in Japan wasdelivery on 21st January 2003 and named "SIBULK PRE-MIER". She has recently been sold to German owners andtaken back on long term period charter.The remaining 5 newbuildings will be delivered during2004 and 2005.Eitzen Bulk has a partnership with Sealift, Antwerp withinthe handysize segment. This operation is focusing on servicingcustomers with both parcels and full loads in thehandy size, mainly within the Atlantic basin.The backbone of Eitzen Bulk's activities is a portfolio ofcontracts of affreightment, which are being entered intowith a diversified range of large international companies aswell as a substantial amount of spot shipments - arbitrage- which are being carried for a series of very close customers.In 2002 the total volume of carryings amounted to 13.3mill. tons mainly consisting of coal, petcoke, agriculturalproducts, alumina, cement clinker, fertilizers, steel productsand pulpwood logs.For loading and discharging at ports with no or inadequatecargo handling facilities Eitzen Bulk operates pt. 56hydraulic Peiner grabs with a capacity of 10 cubic metres.The grabs are interchanged in sets of three or four betweenstrategically chosen locations world-wide.As also reflected in the Mission Statement earlier in thisarticle, the activities of Eitzen Bulk are very customer orientated.By putting focus on high quality and high ethicscombined with value-added and cost-effective transportation,Eitzen Bulk has a position as being one of the largestoperators within the Handymax dry cargo sector in theAtlantic basin, and amongst the largest operators on aworld-wide basis.Whereas volume in itself is not an objective, it is extremelyimportant for Eitzen Bulk to have a critical mass withinits segment thereby be an important player in the market,who the cargo owners shall always consider as their potentialpartner for their transportation needs.Eitzen Bulk's most important tool is its staff, and it is itsaim at any time to have the most professional and wellmotivatedorganisation to support its vision. In addition itis the obvious objective at any given time to equip alloffices with state of the art operations and IT systems.7

Eitzen ChemicalThe chemical tanker activity - as a business area in the Group -was entered when Tschudi & Eitzen Holding AS in 2001 boughtover the Danish shipping company - KIL Shipping A/S, thefleet of which still represents the backbone of our existingchemical tanker activity. Eitzen Chemical today controls a fleetof 10 Chemical Tankers ranging in size from 7,000 - 10,000DWT, which are all epoxy coated units with number of segregationsranging from 4 to 12.All our ships are technically managed by TESMA where highemphasis is put on safety as well as the environment. Each shipin our fleet holds an average of 4.5 major oil approvals, whichbesides a high standard, ensures that the earning potential of theships are maximized.All ships owned and controlled by us are commercially managedby Copenhagen Tankers A/S (CT), which was originally establishedin 1992. CT is equally owned by the following three parties:Wonsild & Son, Clipper Group and Eitzen Chemical andthis tripartite ownership has - besides ensuring consolidationand critical mass - resulted in an optimal utilisation of the fleetand a very strong and professional marketing platform.CT has - besides the head office located in Copenhagen - representativeoffices in New York and Bogota, Colombia. Theexisting fleet controlled by CT counts about 25 units ranging insize from 7,000 DWT up to 17,500 DWT, and the total aggregateDWT of about 250,000 tons puts CT amongst the 10largest chemical tanker operators in the world within this segmentof the market. The approximate 5 million tons of cargowhich is carried annually, is predominantly distributed betweenChemicals (33%), Vegoil (18%), CPP/Lube oils (16%) andTallow/Grease (14%).Further expansion of the fleet is ensured through strong supportfrom the three shareholders in as much as CT is set to getnine new ships over the next couple of years! From EitzenChemical, apart from the newbuilding we added in January thisyear, we are proud to announce that our fleet will be furtherenhanced when we in 2004 and 2005 take on two 8,700 DWTnewbuildings from the Usuki Shipyard in Japan. These ships willalso mark Eitzen Chemical's first entrance into the stainless steelcargotank segment and this commitment by us reflects a continuousstrive to provide high quality shipping solutions to ourcustomers and partners within the Chemical Tanker segment.Eitzen ShippingTschudi & Eitzen ordered the first generationpanamax OBO carriers already in1966 for delivery in 1968 and 1969 andsince then the company has always beenengaged with OBOs. The second generationwas ordered in 1979 with delivery in1982 and the third generation was deliveredfrom Burmeister & Wain Shipyardin Copenhagen from 1992 through 1994and "SIBONINA", "SIBOTI" and"SIBOELF" for which Eitzen Shippingholds ownership are third generation vessels.Combination carriers are single-deck vesselswithout cargo gear, suitable for carryingin their cargo space either liquid ordry bulk cargo. Originally conceived andbuilt in the 1950ies as Ore-Oil-carriers(O/O). The design of such type of shipwas improved in the 1960ies, enablingthem (then called Ore-Bulk-Oil carrier orOBO) to carry also other dry bulk commoditiesthan ore, such as coal, grain,bauxite, etc. and thereby making themeven more flexible as regards tradingopportunity and - last but not least -profitability. Nowadays almost all combinationcarriers are of the OBO type.The three OBO carriers are in technicalmanagement by TESMA, Singapore andin commercial run through PoseidonSchiffahrt in Hamburg.Eitzen Shipping also holds ownership of"SIBEIA" an aframax tanker of abt.88,000 DWT. and built in 1981."SIBEIA" is operating as FSO offThailand on the Platong Field on a longterm time charter for Unocal and technicalthe vessel is in management byTESMA, Singapore.

Eitzen GasEitzen Gas controls and operates a fleet of 9 LPG carriers rangingin size from 1,600 cbm to 3,500 cbm. The entire fleet is technicallymanaged by TESMA, Copenhagen while the commercialmanagement is with Sigas Kosan and Lauritzen Kosan.Sigas Kosan is owned equally by Lauritzen Kosan and EitzenGas and commercially operates the two owner's fleet of gas carriersbelow 3,000 cbm in cargo size. The two bigger gas carriersabove 3,000 cbm controlled by Eitzen Gas are on a long termtime charter contract with Lauritzen Kosan.The Sigas Kosan fleet consists of 15 carriers of which 8 areowned by Lauritzen Kosan and 7 by Eitzen Gas. The vessels aremaintained to the highest standard fulfilling all major oil- andpetrochemical companies' requirements for safe sea transportation.The joining of forces has resulted in a better utilisation ofthe fleet and a more flexible service to customers in respect oftiming, suitability of last cargoes and destinations.Sigas Kosan operates in two markets; the LPG market and thePetrochemical market. The customers in the LPG market aremostly local distribution companies supplying propane andbutane to the domestic market in bottles or bulk used for heating,cooking and auto-gas. This market is very seasonal and isnormally most active during the winter season. LPG is also usedas raw material for the petrochemical industry and as a blendingcomponent in the refinery production. The petrochemical marketis the other market in which Sigas Kosan is involved. Also inthis market the trade is coastal and is mainly driven by productimbalances at the various petrochemical plants. The voyages areprimarily performed under long term Contract ofAffreightment and Time Charter Contracts and to a less extenton the spot market.The Sigas Kosan Fleet operates world wide. Northern Europe isthe main market; however the company is also represented inthe Mediterranean, the Caribbean and South America. The vesselsare normally used for local distribution of liquefied petroleumgases and petrochemical gases. The vessels are equippedwith semi/refrigerated cargo arrangement enabling the vesselsto transport both gases under pressure and refrigerated.Camillo RealCamillo Real A/S is the owner ofCamillo Eitzen House housing the entireGroup activity in Denmark. The officebuilding of approximately 3,500 sqm islocated in Gentofte, near Copenhagenand was built in 1999.EitzenIndustriHydranorHydranor is the leading Scandinavianmanufacturer of hydraulic valve componentsand valve units and 100% ofHydranor's production goes to vesselsand offshore installations all over theworld. The production is based on morethan 40 years of dedicated hydraulicdesign efforts, extensive developmentand prototype testing of practical experience.The products are well known for theirexcellent operational characteristics andhigh reliability even under most hostileconditions.The products are designed by the company'sown mechanical engineers utilizing a3-dimensional CAD/CAM system andmanufactured on fully automatic andhigh technological machines, which canhandle 180 different tools built into themachinery.Hydranor, which last year celebrated its40th anniversary, was founded by Axel C.Eitzen's father Fritjof Eitzen and the factoryis located in Kongsberg, Norway.

TESMA - Ship ManagementTESMA is a neutral and independentship manager servicing in excess of 60vessels with full technical management,and providing crews to morethan 150 vessels from a pool of some3,500 seafarers.Servicing customers' customersTESMA's customers are ship ownerswho have decided to focus theirresources and efforts on the commercialside of their business, and haveentrusted the ship management oftheir vessels to TESMA.Our customers' customers are all theparties in the international transportationchain; where in particular theshipboard management team plays akey role in ensuring customer satisfaction.The purpose of our services isto ensure vessels are cargo worthy. Wedo this by providing two separate,preferably integrated, services: crewand technical management.Crew managementCrew management is the provision ofqualified seafarers; either full or partcomplement, and includes a host ofservices. Most important is to ensurethe seafarers are well qualified to carryout their tasks when onboard. It islikewise important to ensure the seafarersare satisfied in their positions,thereby ensuring a high retention rate.TESMA has its main CrewCompetence Centres (CCCs) in theBaltic region (Tallinn, Riga and St.Petersburg), India (Mumbai and NewDelhi) and Philippines (Manila).Technical managementTechnical management is the provisionof technical related services, suchas maintenance, repairs, dry-dockings,safety & quality, ensuring vessels fulfilthe regulatory and customer demandsrequired for trading, in a cost competitiveand efficient manner.In conjunctionwith the shipowner will wedevelop a set ofKey PerformanceIndicators (KPIs)defining theexpected servicedeliverable. TheKPIs and the conditionof the vessel,assessed at thoroughinspection ofthe vessel prior totake-over, will driveour actions and setthe OPEX (Operational Expenses).TESMA has its Technical CompetenceCentres (TCCs) in Denmark(Copenhagen), Estonia (Tallinn),Singapore and India (Mumbai).Alliance networkTESMA is a network of top professionaland competent ship managementcompanies, located in primeshipping centres, to service the customers.Most of the companies arefully owned by TESMA Holding,whilst some for some companies theownership is solely jointly with ourpartners. This is a reflection of ourstrategy to expand the TESMAalliance network through inclusion ofadditional qualified alliance partners.TESMA and the fissionThe TESMA name was launched inFebruary 2003 to create an image ofbeing a neutral and independent shipmanager, whilst at the same timeintroducing the business concept ofbeing a network of alliance partners.The fission of the T&E Group is avery positive development forTESMA. It has cemented the neutralityand independence aspect, and atthe same time increased the numberof alliance partners. The two newcompanies, Camillo Eitzen & Co. andTschudi Shipping Company, are bothcustomers and alliance partners withTESMA. They are also our shareholders.TESMA will carry forward the "old"T&E Group logo; and our new "status"will be reflected throughout theorganisation. All entities in theTESMA group has been renamed e.g.TESMA Singapore, and our website,www.tesma.net, along with all papermatters, are being updated reflect ournew situation.The Eitzen Group will "continue" tobe a valued customer, an alliance partneras well as part- owner of TESMA.Without doubt the strong ties fromthe past will continue in the future,and we are hopeful that the EitzenGroup will keep in mind TESMA'scapabilities as ship manager whenmeeting with ship owners worldwide.10 Eitzen News

"New" Activitiesin the Eitzen GroupAll the demerged activities from Tschudi & Eitzeninto Eitzen Group are technically being merged withan already existing, private company of Axel C.Eitzen.This results in some new activities within the newEitzen Group.Camillo Energy ASCamillo Energy AS has equity positions in StrataManagement Corporation Ltd, active in Gas explorationand production as well as pipelines for transportationin USA.The positions are held through the following companies:Norse Finans AS, Norse Explorarion Ltdand Naturgas (USA) AS.Camillo Energy AS is among the largest shareholdersand Axel C Eitzen is chairman of Norse FinansAS and Naturgas (USA) AS.Camillo Trading ASCamillo Trading AS will be active in various privateand/or listed companies. The main position as oftoday is 30% shareholding in the Marine InsuranceBroker based in Oslo, Polaris Insurance Brokers AS.Camillo Eiendom ASCamillo Eiendom AS will have some minor investmentsin real estate as of today.Eitzen Bulk (Australia) Pty Ltd was established as arepresentation office in Melbourne, Victoria,Australia on 1st October 2003. The office is situatedin a suburb east of Melbourne called NorthBalwyn, about 10 km from down town Melbourne.Like the other overseas offices, this company is afully owned subsidiary of Eitzen Bulk A/S,Copenhagen.The office is operating as the extended arm of theHead Office in Copenhagen and is responsible formarketing with special focus on cargo and contractprocurement in Australia and New Zealand.Eitzen Bulkhas openednew office inMelbourneInitially the office will be staffed by 5 persons, 3 personson the Chartering desk, one person on theOperations desk and one person as Office Manager.For further details please refer to Personalia.We have moved fast in establishing this office, butare still awaiting the last furniture and fittings tomake the office look fantastic. However, essentiallythe office is operational and we are pleased herebyto have substantially strengthened our market presencein Australia and New Zealand.11

PersonaliaStaffing at the new Melbourne OfficePeter Marshall, previouslyemployed with Western Bulk(Australia), Melbourne, willtake up the position as GeneralManager on 1st April, 2004when he is released from hisprevious employment.Peter Hjorth will be transferredfrom Copenhagen toMelbourne in the second halfof November 2003 to take upthe position as SeniorChartering Manager.Per Halvorsen, previouslyemployed with Western Bulk(Australia), Melbourne, took upthe position as CharteringManager when the office startedoperation on 16th September2003.Tony Honeyborne, previouslyemployed with Western Bulk(Australia), Melbourne, tookup the position as OperationsManager when the office startedoperation on 16thSeptember 2003.Rosemary Morris took upthe position as Office Manageron 14th October 2003. Shecomes from a similar positionwith Altamar Networks PtyLtd, Melbourne.Staff TransfersTommy J. Rathleff has beentransferred from Singapore tothe Rio de Janeiro office totake up the position as GeneralManager after Peter G.Hansen, who resigned on 1stOctober 2003.Jørgen Løfqvist will be transferredfrom Copenhagen totake up the position as SeniorChartering Manager at theSingapore office earlyDecember 2003 replacingTommy R. Rathleff.New Staff in SingaporeGuy Gowrie Smith, previouslyemployed with Western Bulk(Australia), Melbourne, joinedEitzen Bulk, Singapore on10th November 2003 in a positionas Chartering Manager.New ApprenticesOld ApprenticesJulie Voigt and Thomas P. Ingerslev have begun education withEitzen Bulk, Copenhagen on 1st August 2003.Julie and Thomas shall be joining the education programme atMaritimt Uddannelsescenter Vest, Esbjerg in cooperation withEsbjerg Handelsskoles kursuscenter. The shipping programme hasbeen developed with participation of Danish Shipbrokers Associationand Maritime Development Centre of Europe.New Staff in CopenhagenWe are pleased to welcome EvaJensen, who joined Camillo EitzenDenmark as Reception Assistantper 1st October 2003.Pernille F. Andersen and Jesper A. Andersen completedsuccessfully their apprenticeship on 31st August 2003 and on31st October 2003 the same was achieved for Morten L.Hansen. We congratulate and wish all three the very best infuture. All have obtained employment as Assistants withinEitzen Bulk.