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BTJ Seminar: Coastal Poland - Baltic Transport Journal

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<strong>Baltic</strong> <strong>Transport</strong> 1733-6732<br />

<strong>Journal</strong> ISSN<br />

№ 3/2009 (29), MAY/JUNE<br />

b i m o n t h l y - d a i l y c o m p a n i o n<br />

€ 15/50 PLN (VAT 0%)<br />

<strong>BTJ</strong> <strong>Seminar</strong>: <strong>Coastal</strong> <strong>Poland</strong><br />

Cargo opportunities & investment prospects<br />

Focus<br />

<strong>Baltic</strong> shipyards<br />

Oil & gas transportation in the BSR<br />

Where will the lifeblood flow?


<strong>BTJ</strong> <strong>Seminar</strong><br />

<strong>BTJ</strong> <strong>Seminar</strong>: <strong>Coastal</strong> <strong>Poland</strong><br />

Ports, terminals, logistics centres:<br />

cargo opportunities & investment prospects<br />

held under the honorary patronage of the Polish Ministry of Infrastructure<br />

London, 3 rd June 2009<br />

H.E. Barbara Tuge-Erecińska<br />

The Ambassador<br />

of the Republic of <strong>Poland</strong><br />

<strong>Poland</strong> is attractive<br />

Despite the global credit crunch,<br />

<strong>Poland</strong>’s situation remains stable. It<br />

is true that an economic slowdown<br />

has been noticed, however, the results<br />

of the breakdown on the world<br />

financial markets still have only a limited impact on the Polish<br />

economy. The sources of economic growth (revival of investment<br />

demand, high consumption growth and dynamically<br />

growing export) allowed us to obtain one of the best results<br />

in the European Union in 2008, when <strong>Poland</strong>’s GDP reached<br />

only a little less than 5%. We strongly believe that, despite the<br />

global difficulties we all have to face now, we will also witness<br />

the growth of our economy in the current year. The Polish<br />

economy is built on a sound basis, comprising transparent<br />

financial, economic and political institutions. What makes<br />

<strong>Poland</strong> even more competitive is its favourable position in<br />

central Europe, educated workforce equipped with foreign<br />

language skills, and attractive incentives for investors, also<br />

constituting a part of special economic areas.<br />

In the last few years, Polish-British commercial cooperation<br />

has been developing exceptionally dynamically. According<br />

to the British data, in 2008 mutual sales came to more than GBP<br />

7 bln , whereas the value of British export to <strong>Poland</strong> amounted to<br />

almost GBP 3 bln, putting <strong>Poland</strong> in the 18th place on the global<br />

scale and the ninth among recipients from the European Union.<br />

The value of British import from <strong>Poland</strong> amounted to more than<br />

GBP 4 bln, placing <strong>Poland</strong> as the 20th country on the global scale<br />

and the 9th among suppliers from the European Union.<br />

The value of obligations stemming from the British direct<br />

foreign investments in <strong>Poland</strong> at the end of 2007 was EUR<br />

4.6 bln, which puts Great Britain in the 8th place on the list of<br />

the largest foreign investors. In general, the inflow of net British<br />

capital that year amounted to EUR 613 bln, which again<br />

puts the British capital in the eigth position, as far as invested<br />

means in that period are concerned. That constitutes about 4%<br />

of the inflow of the total direct foreign investments in <strong>Poland</strong><br />

in 2007.<br />

I firmly believe that the seminar that will be taking place<br />

at the Embassy of the Republic of <strong>Poland</strong> in London on the 3rd<br />

of June 2009 will significantly contribute to a more effective<br />

introduction of the Polish investment offer to our British business<br />

partners and that it will increase their presence in <strong>Poland</strong>.<br />

Programme:<br />

3.00 Embassy of the Republic of <strong>Poland</strong> in London<br />

• Welcome by H.E. Ms Barbara Tuge-Erecińska<br />

3.05 Polish Ministry of Infrastructure<br />

• Keynote speech: Ms Anna Wypych-Namiotko<br />

– Undersecretary of State<br />

3.15 West Pomeranian Region<br />

(Urząd Marszałkowski Województwa<br />

Zachodniopomorskiego)<br />

• Mr Wojciech Drożdż, Member of the Voivodeship Board<br />

Ms Małgorzata Saar, Investors’ Assistance Center Manager<br />

3.30 Pomeranian Region<br />

(Urząd Marszałkowski Województwa Pomorskiego)<br />

• Mr Marcin Piątkowski, Investor Assistance Centre<br />

Manager, Pomerania Development Agency<br />

3.45 Szczecin & Świnoujście Seaports Authority<br />

(Zarząd Morskich Portów Szczecin i Świnoujście S.A.)<br />

• Mr Jarosław Siergiej, President of the Management Board<br />

4.00 Police Port Authority<br />

(Zarząd Morskiego Portu Police Sp. z o.o.)<br />

• Mr Tomasz Melan, President of the Management Board<br />

4.15 Port of Gdańsk Authority<br />

(Zarząd Morskiego Portu Gdańsk S.A.)<br />

• Mr Julian Skelnik, Marketing Director<br />

4.30 Port of Gdynia Authority<br />

(Zarząd Morskiego Portu Gdynia S.A.)<br />

• Mr Janusz Jarosiński, President of the Management Board<br />

4.45 <strong>Baltic</strong> Container Terminal Gdynia<br />

(BCT Gdynia Sp. z o.o.)<br />

• Mr Krzysztof Szymborski, President of the Management<br />

Board<br />

5.00 Q&A session<br />

Drinks and canapés<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


<strong>BTJ</strong> <strong>Seminar</strong><br />

West Pomeranian region<br />

Invest in North-West<br />

Photo: The Marshal’s Office of Zachodniopomorskie<br />

The opinion on the growing position of West Pomerania among<br />

leaders in the attractiveness for foreign investment is confirmed<br />

by the investors themselves. In fact, a number of them are already<br />

present in the region. Join us on a trip to meet West Pomerania’s<br />

offer and the companies already taking advantage of it.<br />

One of the investors is the<br />

Bridgestone Corporation<br />

– the world’s largest tire and<br />

rubber company. The others<br />

are inter alia: LM Glasfiber<br />

(a manufacturer of fibreglass<br />

blades for wind turbines), Kronospan Holdings<br />

and Swedwood Holding (both companies<br />

make furniture and wood products). We cannot<br />

forget Carlsberg Breweries – a brewery<br />

that makes probably the best beer in the world<br />

– or Royal Greenland, which is a producer of<br />

cold water prawns specializing in fishing and<br />

processing quality seafood. Moreover, at this<br />

very moment Cargotec (a provider of cargo<br />

handling solutions) is establishing its industrial<br />

plant in West Pomerania.<br />

Taking care of investors<br />

The incentives for investors are numerous,<br />

starting with European Union funds,<br />

including Regional and Innovative Economy<br />

operational programs. As far as local<br />

conveniences are concerned, investors<br />

| <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

can benefit from Special Economic Zones,<br />

which give them CIT exemption until 2020.<br />

There are also labour easements, for example<br />

diverse tools for enterprises hiring unemployed<br />

as well as several various facilities<br />

for R&D activity.<br />

Last, but not least, the international investors<br />

will not be left on their own, but will<br />

get professional advisory services, which are<br />

provided by the Investors’ Assistance Centre<br />

in the Marshal’s Office of the West Pomeranian<br />

region. Its main tasks are being a liaison<br />

between investors and investment-process<br />

related institutions and a one-stop shop<br />

(comprehensive advisory) for investors.<br />

“The West Pomeranian region is very attractive<br />

in terms of the business environment<br />

– not only because of well-known investment<br />

qualities, but also because of the great support<br />

(both financial as well as organizational)<br />

of the local authorities. I am more than convinced<br />

that apart from already existing investors,<br />

there will be more to come quite soon,”<br />

persuades Mr Witold Jabłoński, the vice-<br />

Marshal of the West Pomeranian region.<br />

Where to invest<br />

There are various sites where a potential investor<br />

can develop their activity. For instance,<br />

Goleniów Industrial Park located 30 km northeast<br />

of Szczecin is well developed for greenfield<br />

investments, while the Infrapark in Police (30<br />

km north of Szczecin), an area surrounded by<br />

the Chemical Plant “Zakłady Chemiczne S.A.”, is<br />

ideal for the inorganic chemical industry, heavy<br />

industry or utilization of by-products.<br />

The business activity zone in Koszalin, located<br />

170 km north-east of Szczecin, owns well developed<br />

land with production halls for sale/lease;<br />

further development of technical and transportation<br />

infrastructure is welcome.<br />

The Science and Technology Park in Szczecin<br />

is the ideal place for starting, establishing<br />

and running business activity in branches of<br />

high technology, new workplaces, legal activity<br />

and synergy working. The park will be offering<br />

many services for companies, such as suitable<br />

infrastructure, office areas, conference rooms,<br />

laboratories, technical equipment, machines,<br />

access to risk, guarantee and loan funds, a database<br />

of potential well–qualified employees,<br />

bookkeeping, the law service, common marketing<br />

and a “business and innovation climate”.<br />

The place is designed for IT, R&D and innovative<br />

technologies.<br />

Speaking of Western Pomerania, it is unavoidable<br />

to mention the Szczecin and Świnoujście<br />

port complex. Located nearest to the Atlantic<br />

Ocean, comparing to other ports in the CEE region,<br />

it offers regular connections with Scandinavian<br />

countries as well as modern passenger as<br />

well as container and ro-ro terminals.<br />

The region’s economic potential is determined<br />

by the maritime industry and its services.<br />

The most dynamically developing sectors are also<br />

trading, tourism and recreation. The condition of<br />

the agriculture is improving – the average size of<br />

premises is twice the national standard.<br />

Logistics, especially associated with the<br />

maritime industry, is one of the high-chance sectors.<br />

The sectors which are becoming more and<br />

more important are the renewable resources (especially<br />

wind energy), the wood, chemical and<br />

food processing sectors as well as Busines Process<br />

Offshoring. For further information, please visit<br />

www.coi.wzp.pl or email coi@wzp.pl.<br />

Investors’ Assistance Center<br />

The Marshal’s Office of<br />

Zachodniopomorskie<br />

Voivodeship


<strong>BTJ</strong> <strong>Seminar</strong><br />

An investor’s guide to Pomerania<br />

Hot spot for logistics investments<br />

If you want to invest in Pomerania (Pomorskie region), this seems<br />

like the time to do it. With its ever-growing potential in the field<br />

of transportation and storage infrastructure, the northernmost<br />

region of <strong>Poland</strong> is on the verge of becoming an attractive place<br />

for logistics investments, willing and able to meet the standards<br />

of European and global entrepreneurs alike.<br />

The big news in the Tri-City<br />

investment world at the moment<br />

is the Pomeranian Logistic<br />

Centre, comprising about<br />

200 ha of terrain with production,<br />

warehouse and service potential.<br />

It is situated right next to the Deepwater<br />

Container Terminal (DCT), Gdańsk’s youngest<br />

container facility, which makes it the natural<br />

location for housing the terminal’s prospective<br />

back-up facilities. The site wholly a property of<br />

the commune of Gdańsk and supervised by the<br />

Gdańsk Economic Development Agency who,<br />

in cooperation with the IAC (Investors’ Assistance<br />

Center), are now searching for an investor<br />

interested in either purchase or long-term lease<br />

of the area. A direct link to the A-1 highway<br />

will be established upon the completion of the<br />

nearby Sucharskiego Route, and there are also<br />

plans to cover the Pomeranian Logistic Centre<br />

with the Special Economic Zone privileges. All<br />

things considered, in several years’ time the<br />

DCT together with the adjacent back-up area<br />

is intended to become one of the leading logistic<br />

centres in the <strong>Baltic</strong> region.<br />

Photo: Pomerania Development Agency<br />

Among the most interesting offers on<br />

IAC’s menu are plots of land located along the<br />

A-1 highway. Two of such places seem to be of<br />

especially high value to potential investors<br />

with logistics ambitions: junctions at<br />

Swarożyn and Pelplin-Ropuchy. Both are<br />

located in the Tczew-ski poviat, within an<br />

hour’s drive distance from the Tri-City the<br />

moment the neighbouring stretch of A-1 is<br />

finished; both are versatile in terms of zoning<br />

– they could easily make excellent production<br />

or warehouse sites. The Swarożyn lot is<br />

150 ha large, with possibilities of further<br />

expansion, and is available for sale<br />

or lease. The Ropuchy junction is smaller<br />

(90 ha) and, interestingly, is church property<br />

owned by the Diocese of Pelplin whose representatives,<br />

as IAC assured us, are very open to<br />

investor talks. These are just two areas, selected<br />

out of dozens of sites with significant potential,<br />

which are up for grabs in the region.<br />

Future investors will be glad to know<br />

that a field in which Tri-City has been making<br />

considerable progress recently is storage<br />

capacity. As of today, the agglomeration’s total<br />

warehouse space amounts to 200.000 m 2 , the<br />

bulk of which is in the hands of three major<br />

operators, all relatively new to the region: Pro-<br />

Logis, Panattoni and AIG/Lincoln. This gives<br />

Tri-City a national market share of around<br />

3%. However, continuing growth of modern<br />

storage facilities is almost certain, as more<br />

high-profile companies are bound to enter the<br />

competition, encouraged by the successes of<br />

those before them, and by the massive development<br />

prospects of infrastructural undertakings,<br />

such as the construction of the A-1 highway,<br />

modernization of railway lines, and last<br />

but not least, the Euro 2012 championship.<br />

Where to go<br />

When considering the investment possibilities<br />

in Pomerania, the first place to go is the Investor<br />

Assistance Centre. This non-profit body<br />

has all the necessary credentials – it operates<br />

within the structures of the Pomerania Development<br />

Agency (ARP) and is a local partner of<br />

the Polish Information and Foreign Investment<br />

Agency (PAIiIZ). As such, they have at their disposal<br />

a rich database of investor-aimed offers of<br />

property and facilities in Tri-City and beyond.<br />

The IAC will guide you through the decision<br />

making process from day one until the opening<br />

day of your new enterprise.<br />

At IAC, client service usually involves<br />

three stages. The first step will likely consist in<br />

the Centre providing the enquirer with a basic<br />

overview of the region’s macroeconomic data<br />

and relevant legal and financial information<br />

to help them get a hang of the situation in the<br />

local markets. Next, a profiled offer is issued<br />

based on the stated requirements of the client<br />

company, regarding the type of desired activity,<br />

the size and location of the plot, etc. In the<br />

third stage the investor is invited to visit the<br />

places that they find most promising – such a<br />

visit’s agenda and logistics is fully organized by<br />

the IAC, and meetings with local authorities<br />

or utility providers are arranged if need arises.<br />

This final phase can be repeated as many times<br />

as necessary to enable the investor to make a<br />

satisfying decision, and the entire process normally<br />

takes up to a year and a half, although<br />

record-breakers have been known to close the<br />

deal within seven months.<br />

For more on Pomerania’s investment potential,<br />

including a complete property database, visit<br />

IAC’s website: www.arp.gda.pl.<br />

Adam Olesiejuk<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


<strong>BTJ</strong> <strong>Seminar</strong><br />

Szczecin & Świnoujście port complex<br />

Deepen your connection<br />

Photo: Świnoujscie<br />

The inland Port of Szczecin and its seaside partner, Port of<br />

Świnoujście, will deepen their approach canal to increase<br />

their potential.<br />

The main strength of inland<br />

ports is their relative accessibility<br />

both from the sea and the<br />

landside. Huge container ships<br />

sail through rivers or canals like<br />

trucks through highways everyday<br />

traversing Europe to reach their hub. Their<br />

destinations are the ports such as Hamburg,<br />

Nantes, Ghent, or Antwerp, which are successful<br />

thanks to their inland localization. Port of<br />

Szczecin also wants to join the club.<br />

A window for the region<br />

The strategic location of the Szczecin and<br />

Świnoujście port complex gives a possibility to<br />

reach over 135 mln potential customers. It is<br />

the closest port to the Czech Republic, Slovakia,<br />

South-Western <strong>Poland</strong> and Eastern Germany.<br />

Szczecin lies only 100 km from the Berlin agglomeration<br />

and has direct highway and railway<br />

connections with the hinterland. The Oder river<br />

| <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

also gives multiple possibilities to reach the inland<br />

canals system. The main goal, which makes<br />

the Port of Szczecin more competitive, is to<br />

deepen the Szczecin-Świnoujście approach canal.<br />

Currently, the maximal draught for ships is<br />

9.15 m. Deepening works are to be started soon<br />

and their aim is achieving a 12.5 m depth, which<br />

will allow to serve much bigger vessels. The result<br />

of the works will contribute to enhancing<br />

the attractiveness of the port in comparison to<br />

its competitors in the <strong>Baltic</strong> Sea region. It is of<br />

even higher importance if we take into account<br />

the fact that the Szczecin and Świnoujście port<br />

complex is the southernmost port in <strong>Poland</strong>,<br />

which makes it also a natural beneficiary of hinterland<br />

connections.<br />

Speaking of infrastructure<br />

A widely planned modernization of existing<br />

quays (Fińskie, Czeskie, Słowackie and<br />

Zbożowe) and building new (Niemieckie and<br />

Dąbrowieckie) ones in the Port of Szczecin will<br />

significantly contribute to successful development.<br />

Moreover, the new container terminal is<br />

expected to be opened this year with a capacity<br />

of 120,000 TEU and a potential to build-up.<br />

Also of significant importance is the newly created<br />

20 ha area for the West Pomeranian Logistic<br />

Centre; the undertaking includes complete<br />

infrastructure with roads and the rail tracks<br />

network, water mains, electrical grid and parking<br />

for forty trucks, waiting for a leaseholder.<br />

The Szczecin and Świnoujście Ports Authority<br />

has declared competitive conditions of lease to<br />

companies, which would take part in the development<br />

of the area.<br />

To sum up, the Port of Szczecin is playing<br />

an important role in the West Pomeranian<br />

region and wants to improve its position by<br />

constant investments in infrastructure. The<br />

huge potential to become the focal point for<br />

the <strong>Baltic</strong> Sea, connecting southern Europe<br />

with Scandinavia, is supported by the European<br />

Union, the Polish government and local<br />

authorities.<br />

Wojciech Sobecki<br />

Spokesperson for the Szczecin and<br />

Świnoujście Seaport Authority


The Port of Police<br />

The port’s eco-friendly face<br />

Photo: The Port of Police<br />

The port in Police, situated in the West Pomeranian region, used<br />

to operate exclusively for its owner – Chemical Plants Police. Now<br />

it is ready to present its abilities to other partners. The Management<br />

Board of the Seaport Police Authority, with its shareholders,<br />

Police Chemical Plants and the local community, are jointly<br />

implementing a project called the “Green Bay”.<br />

The history of Police Port dates<br />

back to 1970, when the first<br />

cargo ships moored on the quay<br />

of its barge port. In the beginning,<br />

cargos were transported<br />

from bulk carriers to barges in<br />

Świnoujście and then to the Police factory. In<br />

the late 1970s, a rising level of cargo transported<br />

from the Police factory and the need<br />

to ease the load of the Szczecin-Świnoujście<br />

port complex resulted in a decision to build<br />

a chemical works port on the river Oder with<br />

a capacity that would enable to serve oceangoing<br />

vessels. The project was taken over by<br />

the Chemical Plants Police, one of the largest<br />

Polish producers of non-organic chemical<br />

products, in 1982 and completed in 1993.<br />

The new port was ready to serve chemical<br />

works and belt conveyors for unloading raw<br />

materials and loading fertilizers onto ships.<br />

In 2004, the board of Chemical Plants Police<br />

decided to appoint a company to manage the<br />

port. Today, 90% of its shares belong to the<br />

factory and 10% to the Police Community.<br />

The port handles approximately 2.5 mln<br />

tons of cargo every year.<br />

Geo-conditions<br />

The city of Police has a great connection<br />

with its surroundings due to a network of road,<br />

water, railway and air transport routes. The nearest<br />

located cities are Szczecin, Goleniów with its<br />

domestic airport, Świnoujście, with a passenger<br />

and cargo ferry border crossing to Scandinavia<br />

and Berlin (140 km from the country’s border).<br />

The region of Police is connected by the local<br />

114 and 115 roads, national 10 (Szczecin-Piła-<br />

Bydgoszcz), international road 6 (from Szczecin<br />

through Koszalin and Gdańsk to Kaliningrad,<br />

Riga and Kaunas), Highway A6 (E28) Szczecin-<br />

Kołbaskowo-Berlin and express road S3 (E65)<br />

Świnoujście-Goleniów-Szczecin. The railway<br />

transport system has been expanded, mostly<br />

for the needs of the Chemical Plants Police, but<br />

the current infrastructure also presents a possibility<br />

to develop the connections, including<br />

the construction of railway sidings. Although<br />

Police Port is not directly connected to the<br />

open sea, it has access to it via the Świnoujście-<br />

Szczecin water lane, which is 10.5 m deep. This<br />

feature enables a movement of ships with a 160<br />

m length and a 9.15 m draught or a length of<br />

<strong>BTJ</strong> <strong>Seminar</strong><br />

206 m and a draught of 8.15 m, which corresponds<br />

to a fully loaded bulk carrier with a capacity<br />

of 16 – 18,000 DWT or a partly loaded<br />

bulk carrier of 40,000 DWT. The location of<br />

the port provides all-year access. An analysis<br />

conducted by the Szczecin Maritime University<br />

showed the possibility of handling ships with<br />

the maximum permissible draught; moreover,<br />

potential partners do not need to be afraid of<br />

changing water levels, tides or ice conditions.<br />

Infra-conditions<br />

The port infrastructure consists of three elements:<br />

the Sea Terminal, the Mijanka Terminal<br />

and the Barge Terminal. The port is used as a<br />

transhipment terminal for bulk cargos such as<br />

phosphorites, apatites, titanic iron ore, potassium<br />

salt, fertilizers, ammonia and sulphuric<br />

acid. Within the “Green Bay” project, the Management<br />

Board of Police Port plans an extension<br />

of the existing infrastructure. Reserve development<br />

grounds occupy more than 300 ha,<br />

so there is enough space for investments such<br />

as: the construction of two new berths, 200 m<br />

long each (universal and dolphin), building a<br />

new road (2200 m long) to improve access to<br />

the port, as well as construction of a new railway<br />

line of 5,725 m in length. When considering the<br />

infrastructural aspect, it is necessary to mention<br />

the access to the media. Although construction<br />

of a new power network with a mean voltage<br />

of 6 kV is in the plans, currently the port uses<br />

the existing power network from the Chemical<br />

Plants Police. There is a gas (methane) network,<br />

a city water supply system, their own heat supply<br />

system, access to the telecommunication<br />

network and the port’s sewage treatment plant.<br />

HR conditions<br />

A strong scientific base and specialized<br />

graduates are factors which the future enterprises<br />

can depend on. The Police Industrial<br />

Park provides convenient solutions for establishing<br />

enterprises. Investors are offered the<br />

sale of or leased land on preferential conditions,<br />

a supply of cheaper media in relation to<br />

the free market and fast access to information<br />

regarding investment areas and technical conditions.<br />

For more information, please visit<br />

www.greenbay.pl.<br />

Barbara Rogalska<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


<strong>BTJ</strong> <strong>Seminar</strong><br />

The Port of Gdańsk<br />

A port for every kind of cargo<br />

The geographical advantage of the Port of Gdańsk is mentioned by many works of many economists.<br />

However, one also has to take into account its historical background, enabling the port to tie<br />

strong knots of friendship with many partners.<br />

Photo: The Port of Gdańsk<br />

Historically, the port was a gateway to Western Europe<br />

for Polish, Hungarian and even Moldavian goods.<br />

It also maintained strong relations with Lithuanian<br />

Klaipėda, Latvian Riga and Russian Novgorod. For<br />

years it has held a place in the top 10 largest <strong>Baltic</strong><br />

ports and only temporary fluctuations in the world<br />

economy could lead to worse results. Today, as a centre of distribution<br />

Gdańsk is a key element of Trans Corridor VI, connecting the Nordic<br />

countries with South-Eastern Europe.<br />

Polish accession to the European Union has created additional opportunities<br />

for development. Completed and planned projects are the expansion<br />

and modernization of port infrastructure, as well as improving the port’s<br />

communication with the national and international transport network.<br />

The biggest asset of the Port of Gdańsk is the possibility of developing<br />

deep-sea transhipment bases, serving the biggest vessels entering the <strong>Baltic</strong>.<br />

This enables not only development of dumping areas, but also greenfield<br />

investments.<br />

The existing handling potential, which plays an important role in<br />

ensuring energy security for the whole of <strong>Poland</strong>, is not thoroughly<br />

| <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

taken advantage of. Despite this, liquid fuels storage facilities developments,<br />

as well as implementation of new technologies for coal imports,<br />

are being planned.<br />

The already convinced<br />

Increasingly, these intentions are carried out by external capital.<br />

Acquisition of the cargo handling and storage enterprise “Port<br />

Północny” by the recognized port operating company “Sea Invest”<br />

is an excellent reflection of the growing interest in Gdańsk. The operator’s<br />

experience, gained inter alia in Antwerp, Gent and Dunkirk,<br />

makes it possible for the Port of Gdańsk to look forward to creating<br />

a site for handling dry bulk cargo.<br />

Another example of the port’s attractiveness for foreign investors<br />

is the Macquarie Group of companies from Australia, who financed<br />

the construction of the Deepwater Container Terminal DCT<br />

Gdańsk. The terminal offers year-round, ice-free access for vessels<br />

with a drught of up to 15 metres, providing excellent conditions for<br />

the creation of a <strong>Baltic</strong> container hub. Today the Port of Gdańsk has


the potential to handle 600,000 TEUs, and a possibility of expanding<br />

this capability to 3 mln TEUs. Worth noting is also the upcoming<br />

creation of the logistics centre in the vicinity of DCT. Its area is supposed<br />

to cover about 200 ha.<br />

The completion of the Sucharskiego Route, together with a tunnel<br />

under the port channel of Martwa Wisła, will undoubtedly have<br />

a serious impact on the further development of the port. It will connect<br />

the left and right parts of the port with the southbound motorway<br />

A-1. The construction of a new railway bridge on the route from<br />

Port Północny to the southern artery is also being planned. Both<br />

projects are on the list of the European Operational Programme ‘Infrastructure<br />

and Environment’.<br />

A titbit for investors<br />

An analysis of the port’s development plans cannot ignore an important<br />

logistics element of its operations, which is the Port of Gdańsk<br />

Cargo Logistics (Port Gdański Eksploatacja, PGE). Its almost exclusive<br />

owner, the Port of Gdańsk Authority, is taking decisive steps to privatise<br />

its daughter company. Rapid growth of PGE can only be ensured by an<br />

owner, who already has the experience as a port logistics operator. The<br />

company is operating on the most attractive quays of the internal port,<br />

but also has access to the deep-water zone. Further investments in its<br />

quays is bound to attract new clients and cargos. To facilitate the privatization,<br />

the Port of Gdańsk Authority has decided to transform PGE into<br />

a limited company and has started to adapt the ground leased by PGE<br />

to the implementation of new technologies. To sum up, for a reliable<br />

partner, the Port of Gdańsk Cargo Logistics will be a titbit.<br />

A clear division<br />

Earlier decisions of the Polish government have predestined the Port<br />

of Gdańsk to handle mainly bulk cargo: liquid fuels, petroleum products<br />

and coal. The economic reality of the past few years is, however, verifying<br />

the validity of past priorities. New transportation technologies are<br />

being developed and the outskirts of the port are being modernized.<br />

Photo: The Port of Gdańsk<br />

Containers<br />

PCS<br />

200 000<br />

220 000<br />

180 000<br />

160 000<br />

140 000<br />

120 000<br />

100 000<br />

80 000<br />

60 000<br />

40 000<br />

20 000<br />

0<br />

<strong>BTJ</strong> <strong>Seminar</strong><br />

2002 2003 2004 2005 2006 2007 2008<br />

Cargo handling structure in 2008<br />

A clear division becomes apparent. From a chain of well planned investments<br />

the “Old Port” has been adapted for <strong>Baltic</strong> feeder transport and<br />

the deep-water “Outer Port” has been made more suitable for berthing<br />

large ocean vessels. Fulfilling the requirements of modern and economical<br />

shipping, Gdańsk has become a port for every kind of cargo.<br />

Janusz Kasprowicz<br />

Spokesperson for the Port of Gdańsk Authority<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


<strong>BTJ</strong> <strong>Seminar</strong><br />

<strong>Baltic</strong> Container Terminal Gdynia<br />

A solid link in the supply chain<br />

Photo: BCT Gdynia<br />

Every day millions of containers are loaded onto ships to reach their destination. Somewhere in the<br />

supply chain are ports with their container terminals. Common, but not a quite true image of those<br />

places is a quay with a few cranes. In fact, a modern container terminal is a huge logistic center providing<br />

various services. BCT Gdynia is the best example. As the first in <strong>Poland</strong> BCT received the EN<br />

ISO 9001:2008 certificate from Lloyd’s Register Quality Assurance (LRQA).<br />

Location, location, location<br />

Gdynia, the city where BCT is located,<br />

lies between Eastern and Western Europe.<br />

Only 150 km separates the city from the Russian<br />

border. A fast-growing network of trans-<br />

<strong>Baltic</strong> connections operating from the BCT<br />

quay, by carriers such as MSC, APL, Team<br />

Lines, IMCL/BCL and UECC gives a possibility<br />

to transit containers and other goods<br />

to and from all over the world. Intermodality<br />

is the strong point of BCT. A direct highway<br />

and railway connect the terminal with its<br />

hinterland. The Gdańsk Lech Wałęsa Airport<br />

is situated just 25 km down the highway. In<br />

2012, a new commercial airport is expected<br />

to be opened in Gdynia-Kosakowo, only 5 km<br />

from the terminal. To sum up, this localization<br />

offers multiple possibilities to reach over<br />

38 mln potential customers in <strong>Poland</strong> and<br />

neighbouring countries, including Russia,<br />

Germany, the Czech Republic, Slovakia, Belarus,<br />

Ukraine and the <strong>Baltic</strong> States.<br />

10 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

The key: cutting the transit time<br />

BCT, which is owned by International<br />

Container Terminal Services Incorporated<br />

(ICTSI), makes a point of quality and velocity<br />

of services. A 60 ha complex contains inter<br />

alia a quay (800 m long, 12.5 m deep), an adjustable<br />

ramp (hydraulically operated, serving<br />

ro-ro vessels equipped with stern ramps),<br />

a railway terminal (with 3 rail tracks 300 m<br />

long each), 5 entry and 4 exit gates for containers/trucks,<br />

storage yards accommodating<br />

20,000 TEU, a bonded area (529 sq. m) as well<br />

as two general cargo warehouses (20,000 sq.m<br />

and 1,058 sq.m). Modern facilities combined<br />

with advanced computer systems (TOS) and<br />

experienced staff are the key to maximizing<br />

the capacity. Currently, it is 750,000 TEU with<br />

a maximum potential of one mln TEU. The<br />

average time of serving a truck from entry to<br />

exit is just 40 minutes. Additionally, a three<br />

shifts system provides a 24/7 service of the<br />

highest standard.<br />

Supplementary services<br />

BCT, thanks to its advanced infrastructure<br />

is prepared to deal with any order. A<br />

professional and wide consumer service is<br />

a principle in such companies. What distinguishes<br />

BCT from other terminals is its elastic<br />

approach, when it comes to fulfil the clients’<br />

demands. All operations on containers,<br />

general cargo and ro-ro motor vehicles are<br />

always carried out professionally and with<br />

flexible prices. Moreover, special, oversized<br />

loads are also welcome at BCT. In the terminal’s<br />

main building many forwarding and<br />

shipowners offices are located, i.e. Schenker,<br />

DHL, JAS-FBG, Damco, Hellmann, Rohlig,<br />

Kuehne&Nagel. The Customs House is<br />

there, too.<br />

Where the land meets the sea, you need<br />

an expert for your operations. BCT is certainly<br />

among those to consider.<br />

Bartłomiej Hapka


Turnover of the Terminal in the years 2000-2008<br />

year number of vessel calls boxes TEU<br />

<strong>BTJ</strong> <strong>Seminar</strong><br />

cars & trucks<br />

pcs<br />

2000 1040 123,038 188,272 49,072<br />

2001 948 135,890 217,024 33,946<br />

2002 854 152,788 247,907 35,159<br />

2003 743 189,871 304,745 16,635<br />

2004 798 233,668 372,762 32,950<br />

2005 815 247,428 395,757 29,549<br />

2006 731 257,086 402,557 54,827<br />

2007 793 320,235 493,860 74,656<br />

2008 712 280,847 440,591 71,632<br />

Shipping Lines served by<br />

<strong>Baltic</strong> Container Terminal<br />

Ports Shipping Line Ships Number of calls vessel’s capacity<br />

Antwerp<br />

Bremerhaven<br />

Klaipėda<br />

Bremerhaven<br />

Klaipėda<br />

Hamburg<br />

Bremerhaven<br />

Kaliningrad<br />

Klaipėda<br />

Bremerhaven<br />

Hamburg<br />

Klaipeda<br />

Szczecin<br />

Rotterdam<br />

Kotka<br />

Bremerhaven<br />

Kaliningrad<br />

Zeebrugge<br />

Hamburg<br />

Klaipėda<br />

MSC MSC RHONE<br />

MSC MARIA<br />

MSC LAUREN<br />

MSC TAIPAN<br />

2 weekly 1584 TEU<br />

1254 TEU<br />

1948 TEU<br />

925 TEU<br />

APL EURO STORM 1 weekly 686 TEU<br />

TEAM LINES BUXTEHUDE<br />

GOTLAND<br />

ANNALAND<br />

BIRKALAND<br />

MARIS<br />

BELUGA<br />

SENSATION<br />

LIVLAND<br />

IMCL/BCL MARIA SCHEPPERS<br />

ELEGANCE<br />

BF MARYAM<br />

MONSUN<br />

RHEIN CARRIER<br />

IWONA<br />

DENEB<br />

TRANS JORUND<br />

GERMAN<br />

VICTORIA<br />

BETSY S.<br />

UECC PELANDER<br />

RITA DEL MAR<br />

AUTORACER<br />

1-2 weekly 868 TEU<br />

822 TEU<br />

868 TEU<br />

868 TEU<br />

508 TEU<br />

750 TEU<br />

866 TEU<br />

2-3 weekly 262 TEU<br />

374TEU<br />

509 TEU<br />

724 TEU<br />

374 TEU<br />

672 TEU<br />

509 TEU<br />

340 TEU<br />

1-2 monthly 508 TEU<br />

366 TEU<br />

1 weekly 2780 cars<br />

2780 cars<br />

1060 cars<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 11


<strong>BTJ</strong> <strong>Seminar</strong><br />

The Port of Gdynia<br />

One stop… port<br />

What can a bulk terminal and a general cargo terminal have in<br />

common? Regarding the Port of Gdynia, they are both offering<br />

promising amenities and are awaiting a private investor.<br />

Photo: The Port of Gdynia<br />

According to Polish law, port<br />

authorities are obligated to<br />

cede control of their operating<br />

activities to private enterprises<br />

through privatization.<br />

The operating area should<br />

therefore be private entities’ fields of activity,<br />

whereas the port authority ought to remain<br />

a landlord-port. At the moment, two important<br />

companies, hitherto owned by the port<br />

authority, are to be privatized in the second<br />

half of 2009. Let us take a look at their offer<br />

and facilities.<br />

Every type of cargo is welcome<br />

MTMG – the Maritime Bulk Terminal<br />

Gdynia – operates as a universal terminal<br />

and renders handling, storage, big-bagging<br />

and sorting services related to any bulk<br />

cargo in port – maritime trade. It handles<br />

coal and coke, grain and fodder, ores, other<br />

bulk and liquid cargo as well as general<br />

cargo. The terminal comprises four quays:<br />

Holenderskie, Szwedzkie, Śląskie and the<br />

Southern Pier of Duńskie; the latter is dedicated<br />

to handling liquid bulk cargo, including<br />

3, 6, 8 and 9 class chemicals according<br />

to the IMDG code. Basic data about the<br />

quays are shown in Table 1. Additionally, the<br />

Maritime Bulk Terminal also operates and<br />

12 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

provides technical services on the Liquid<br />

Fuel Berth, located on the breakwater. The<br />

berth handles tankers of up to 210 m long,<br />

with a draught up to 10.80 m.<br />

Everything in one place<br />

The <strong>Baltic</strong> General Cargo Terminal<br />

Gdynia (BTDG) is a multi-modal port terminal<br />

that renders services related to handling,<br />

stowage and storage of steel products,<br />

bagged cargo and also granite blocks,<br />

heavylifts, oversized cargo and containers.<br />

BTDG handles conventional general cargo<br />

and ro-ro and sto-ro cargo.<br />

A part of BTDG is dedicated to handling<br />

ro-ro cargo and is located within Basin V<br />

of the Port of Gdynia. The ro-ro terminal<br />

comprises three modern ramps, new and<br />

comprehensively reconstructed warehouses<br />

as well as paved storage yards. The terminal<br />

is equipped with modern handling facilities,<br />

including a 45T quayside container<br />

gantry crane, SISU truck-tractors, RT 60T<br />

semi-trailers, a Clark and Kalmar 11.5 – 7T<br />

stacking machine and 2 SISU15T reach<br />

stackers. The most important facilities that<br />

BTDG has to offer are:<br />

• quays of 4.3 km length, minimum 8 m<br />

and max. 13 m depth<br />

• 3 ro-ro ramps (including one swinging<br />

ramp),<br />

• 125,000 m² of covered storage area,<br />

• 120,000 m² of open storage yards, including<br />

5,000 m² of sheds area (RT),<br />

• bonded warehouse.<br />

Taking into account all the abovementioned<br />

facilities, one can say that there is no<br />

need to move any activities to another site.<br />

Everything a transport or logistics company<br />

needs is here, in one place.<br />

By putting its companies on the market,<br />

the Port of Gdynia Authority aims at<br />

maintaining the port’s public character<br />

while creating innovative, dedicated cargo<br />

handling and warehousing sites at the same<br />

time. “It is not only revenues that we are<br />

expecting from the privatization process,”<br />

says Jan Lewko, Marketing and Development<br />

Director at the Port of Gdynia Authority.<br />

“Equally important is creating an<br />

environment where technological and organizational<br />

development will take place<br />

– for the sake of the terminals as well as the<br />

whole port.”<br />

For further information about the legal<br />

procedure and privatization, please visit<br />

www.port.gdynia.pl.<br />

Martyna Bildziukiewicz<br />

Table 1. The quays in the Maritime Bulk Terminal Gdynia<br />

Quay Length Maximum<br />

draught<br />

Storage area<br />

Holenderskie Quay 500 m 12.8 m storage yards – 14,223 m²,<br />

warehouse – 20,000 m3<br />

Szwedzkie Quay 444 m 10.6 m storage yards – 8,197 m²,<br />

two flat warehouses – 12,225 m²<br />

Śląskie Quay 353 m 8.6 m storage yards – 21,209 m²<br />

Southern Pier of<br />

Duńskie Quay<br />

170 m 9.5 m


<strong>BTJ</strong> <strong>Seminar</strong>: <strong>Coastal</strong> <strong>Poland</strong><br />

Invest in North West ............................................................................................................... 4<br />

West Pomeranian region<br />

Hot spot for logistics investments ..................................................................................... 5<br />

An investor’s guide to Pomerania<br />

Deepen your connection ...................................................................................................... 6<br />

Szczecin & Świnoujście port complex<br />

The port’s eco-friendly face ................................................................................................. 7<br />

The Port of Police<br />

A port for every kind of cargo ............................................................................................. 8<br />

The Port of Gdańsk<br />

A solid link in the supply chain ......................................................................................... 10<br />

<strong>Baltic</strong> Container Terminal Gdynia<br />

One stop… port ..................................................................................................................... 12<br />

The Port of Gdynia<br />

<strong>BTJ</strong> Calendar of partnership events ................................................................................ 16<br />

What’s new ............................................................................................................................... 18<br />

Just One Question: Still good alternative to road transport? ................................ 24<br />

Short sea shipping<br />

Where will the lifeblood flow? .......................................................................................... 26<br />

Ttrends in BSR oil & gas transportation<br />

From vision to action ........................................................................................................... 28<br />

<strong>Baltic</strong> Master II<br />

Report: Behind the ports ............................................................................. 29<br />

<strong>Baltic</strong> Ports Organization Newsletter ......................................................... 34<br />

Focus: <strong>Baltic</strong> shipyards ................................................................................ 37<br />

Protecting merchant ships ................................................................................................. 40<br />

Naval cooperation & guidance for shipping<br />

A niche hub for the <strong>Baltic</strong>? ..................................................................................................42<br />

Groningen Seaports are looking for partners<br />

The dry freight and tanker market .................................................................................. 44<br />

Strategies for the future ...................................................................................................... 46<br />

Rail transport networks in the BSR<br />

On standby mode ..................................................................................................................48<br />

TransRussia impressions and more<br />

Eco-driving .............................................................................................................................. 50<br />

Soft measures for more sustainable road transport<br />

<strong>Transport</strong> miscellany ............................................................................................................ 53<br />

Who’s who ................................................................................................................................ 54<br />

Contents<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 1


Editorial<br />

� � � � � � � � � � � � � � � � � � � � � � � � �<br />

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�����������������������<br />

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<strong>Baltic</strong> <strong>Transport</strong><br />

<strong>Journal</strong><br />

President of the Board<br />

dorota sobieniecka<br />

dorota@baltictransportjournal.com<br />

Publishing Director<br />

piotr trusiewicz<br />

piotr@baltictransportjournal.com<br />

Deputy Editor-in-Chief<br />

martyna bildziukiewicz<br />

martyna@baltictransportjournal.com<br />

Contributing Writers<br />

and Update Correspondents<br />

marek błuś, stane božičnik, vladimir chernyshev,<br />

alexandre dubois, michał gomerski, katja hanžič,<br />

bartłomiej hapka, janusz kasprowicz,<br />

mariusz kościelski, maciej matczak, manik mehta,<br />

ryszard miler, błażej mykowski,<br />

alison nissen, adam olesiejuk, barbara rogalska,<br />

aneta sandecka, piotr b. stareńczak,<br />

piotr trusiewicz, wojciech sobecki<br />

English Language Editors<br />

alison nissen, magda łutek<br />

Design and DTP<br />

medon<br />

Art Director&Graphic Designer<br />

danuta sawicka-romanowska<br />

Publisher<br />

baltic press sp. z o.o.<br />

Address: 8 Pułaskiego Street<br />

81-368 Gdynia, <strong>Poland</strong><br />

office@baltictransportjournal.com<br />

tel. +48 58 627 23 94, tel. +48 58 627 23 95<br />

fax +48 58 621 69 66<br />

wwww.baltictransportjournal.com<br />

Marketing & Sales<br />

(advertising, tradefairs, conferences)<br />

piotr trusiewicz<br />

piotr@baltictransportjournal.com<br />

Subscriptions<br />

klaudia sowińska<br />

klaudia@baltictransportjournal.com<br />

Print<br />

medon<br />

Address: Medon sp. j.<br />

ul. Kartuska 245, 80-125 Gdańsk, <strong>Poland</strong><br />

e-mail: medon@medon.gda.pl<br />

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1 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

Dear Readers,<br />

Promotion and marketing are far more important in difficult times. Therefore, <strong>Baltic</strong> <strong>Transport</strong><br />

<strong>Journal</strong> is proud to present you the new issue of our magazine, where we are focusing on showing<br />

the multi-faceted offer of Polish ports, terminals and coastal regions. The issue accompanies<br />

the <strong>BTJ</strong> <strong>Seminar</strong>, organized jointly with the Polish Ministry of Infrastructure and the Polish Embassy<br />

in the United Kingdom. We are taking you on a trip to coastal <strong>Poland</strong> to show you how transport and<br />

logistics enterprises can take advantage of the economic downturn. We remain loyal to our mission,<br />

symbolized by the bridge on the cover of <strong>BTJ</strong> – to link companies and businesses, this time from two<br />

sides of Europe: <strong>Poland</strong> and the United Kingdom.<br />

As always, we are doing our best to have our fingers on the pulse of <strong>Baltic</strong> transport and logistics.<br />

Among the articles worth recommending is the in-depth analysis and ranking of <strong>Baltic</strong> shipyards,<br />

conducted by Marek Błuś – a very current topic, especially when taking into account the latest news<br />

about the acquisition of the shipyards in Gdynia and Szczecin. Another hot topic on the agenda is oil<br />

and gas transportation – Błażej Mykowski, inspired by the Trans-Port and Energy <strong>Seminar</strong>, shows<br />

us the latest trends and possible directions of development in the industry.<br />

In times of decreased traffic and reduced road transport costs, we asked the question how the<br />

present economic situation can influence the discussion about the EU policy of shifting traffic from<br />

road to sea. Can short sea shipping still be a true alternative to road haulage? Check what the experts<br />

think about this in our Just One Question section.<br />

As we have just come back from the <strong>Transport</strong> Logistic fair in Munich, we are very curious if our<br />

impressions are similar to the ones of the TransRussia exhibitors. The latter, combined with deliberations<br />

about the situation on the Russian rail freight market, are being offered by Vladimir Chernyshev<br />

in his „On standby mode” article. Speaking of the railways, do not miss the article prepared by Alexandre<br />

Dubois of Nordregio, highlighting the railway links in the <strong>Baltic</strong> Sea region.<br />

The worst you could do in times like the ones we are experiencing now is to sit back and wait for<br />

what is going to happen. Polish ports, terminals and coastal regions are aware of this and therefore on<br />

<strong>BTJ</strong>’s orange pages you can read about their accomplishments and strategies for the future. I am deeply<br />

convinced that the success of the <strong>BTJ</strong> <strong>Seminar</strong>, promoting the Polish maritime industry, will encourage<br />

companies from the <strong>Baltic</strong> Sea region to invest in their marketing strategies for the sake of us all.<br />

Company index<br />

Dorota Sobieniecka<br />

President of the Board<br />

<strong>Baltic</strong> Press Sp. z o.o.<br />

APM MØLLER-MAERSK 37-39, 53; Admiralteyskiye Shipyard 37-39; AIG/Lincoln 5; Air <strong>Baltic</strong> 22; Air Berlin 54; Amadeus<br />

22; APL 10-11; APS Technology 19; Austrian Airlines 22; Avia Solutions 22; Aviation Industries Ilyushin 22; Baltiyskiy<br />

Shipyard 37-39; BCL 18; BCT Gdynia 10-11; BLS Cargo 21; Bridgestone 4; Calsberg 4; Cargotec 4, 18; Cavotec 19; CEVA<br />

Logistics 20; Chemical Plants Police 4, 7; CMA CGM 19; Conductix-Wampfler 19; ContainerTrans 32-33; CroisiEurope<br />

34-35; CTL Logistics 32-33; CTS <strong>Transport</strong> 32-33; Damco 10-11; DB 21; DCT Gdańsk 5, 9, 18; Deutsche GVZ-Gesellschaft<br />

30-31; DGG 30-31; DHL 10-11, 20; ERS Railways 32-33; Estonian Railways 32-33; Eurolog 32-33; European Rail Shuttle<br />

32-33; Finnair 22, 54; Flensburger Shipyard 37-39; flyLAL 22; GAC Logistics 20; Gdańsk Lech Wałęsa Airport 10-11, 22;<br />

Gdańsk Shipyard 37-39; Gdynia Shipyard 37-39; Gdynia-Kosakowo Airport 10-11; Green Cargo 21, 32-33; Grundfos 20;<br />

Hamburg Süd 18; Hansa Shipping 18; Hapag-Lloyd 18, 54; HDW Gaarden Shipyard 37-39; Hellmann 10-11; Helsinki<br />

Shipyard 37-39; Hupac 21, 32-33; ICF 32-33; ICTSI 10-11; IMCL/BCL 10-11, 18; Intercontainer 32-33; Iveco 50-51; JAS-<br />

FBG 10-11; Karstensen Shipyard 37-39; Kombiverkehr 32-33; Kronospan 4; Kuehne&Nagel 10-11, 20, 32-33; LDZ Cargo<br />

(Lithuanian Railways) 32-33; Lindenau Shipyard 37-39; Lisco 18; Lloyd’s Register Group 10-11; LM Glasfiber 4; Lokomotion<br />

21; Lufthansa 22; MacGREGOR 18; Macquarie Group 8-9; Maersk Line 18; MAN 50-51; Marine Project Shipyard 37-<br />

39; Megamar 53; Mercedes-Benz 50-51; Mid Cargo 32-33; MSC 10-11; Munich Airport 22; Nordic Hamburg Shipping<br />

18; Northern Shipyard 37-39; NYK 18; Odense Steel Shipyard 37-39; OOCL 18; Panattoni 5; PCC Intermodal 21, 32-33;<br />

Peene-Werft Shipyard 37-39; Peter Deilmann 34-35; PKP (Polish Railways) 32-33; Polet Airlines 22; Polzug 32-33; Port of<br />

Antwerp 6, 8-9, 10-11; Port of Bremerhaven 10-11, 32-33, 54; Port of Dunkirk 8-9; Port of Esbjerg 18; Port of Gdańsk 8-9,<br />

18, 32-33; Port of Gdańsk Cargo Logistics 8-9; Port of Gdynia 10-11, 12, 32-33; Port of Ghent 6, 8-9; Port of Göteborg<br />

18; Port of Hamburg 6, 10-11; Port of Kaliningrad 10-11; Port of Klaipeda 8-9, 10-11, 32-33; Port of Kotka 10-11; Port of<br />

Lübeck 32-33; Port of Odessa 32-33; Port of Police 7; Port of Riga 8-9; Port of Rostock 32-33; Port of Rotterdam 10-11,<br />

18, 19, 32-33, 42; Port of Stralsund 34-35; Port of Szczecin 10-11; Port of Ust-Luga 26-27; Port of Ylyichevsk 32-33; Port<br />

of Zeebrugge 10-11; ProLogis 5; Rauma Shipyard 37-39; Renault 50-51; Riga Airport 22; Rohling 10-11; Rongcheng<br />

Shenfei Shipbuilding 18; Royal Greenland 4; RTC 21; Ryanair 22; RŻD (Russian Railways) 21, 32-33; SAS 22; Schenker<br />

10-11; Scylla Tours 34-35; Sea Chef Cuises 34-35; Sea Invest 8-9; STX Europe 37-39; Swedwood 4; Swiss Airlines 22;<br />

SWS Seehafen Stralsund 34-35; Szczecin & Świnoujście port complex 4, 6, 19; Szczecin New Shipyard 37-39; Tallink 18;<br />

Team Lines 10-11; TransContainer 32-33; TransRussia 48-49; Turku Shipyard 37-39; UECC 10-11; Viking Croisers 34-35;<br />

Volkswerft Shipyard 37-39; VR-Cargo 32-33; Wadan Shipyard 37-39; WWL 20; ZIM 18.


<strong>BTJ</strong> calendar of partnership events 2009<br />

<strong>BTJ</strong> 3/2009 (May-Jun edition)<br />

Issue distributed at:<br />

<strong>BTJ</strong> <strong>Seminar</strong>: <strong>Coastal</strong> <strong>Poland</strong><br />

ports, terminals, logistics centres<br />

3 June 2009, UK/London<br />

www.baltictransportjournal.com<br />

Nor-Shipping 2009<br />

Expo & Conference<br />

9-12 June 2009, NO/Oslo<br />

www.nor-shipping.no<br />

TOC Europe 2009<br />

Expo & Conference<br />

16-18 June 2009, DE/Bremen<br />

www.tocevents-europe.com<br />

<strong>BTJ</strong> 4/2009 (July-Aug edition)<br />

Issue distributed at:<br />

Baltexpo 2009 Exhibition<br />

1-3 September 2009, PL/Gdańsk<br />

www.baltexpo.eu<br />

BPO XII General Assembly<br />

3-4 September 2009, DK/Aarhus<br />

www.bpoports.com<br />

Airports 2009 Conference<br />

24-25 September 2009, PL/Warsaw<br />

www.actiaconferences.com<br />

CEE Air Cargo 2009 Conference<br />

9 October 2009, PL/Warsaw<br />

www.easteurolink.co.uk<br />

<strong>BTJ</strong> 5/2009 (Sept-Oct edition)<br />

Issue distributed at:<br />

TRAKO 2009 Expo<br />

14-16 October 2009, PL/Gdańsk<br />

www.mtgsa.pl<br />

<strong>Baltic</strong> Ro-Ro & Ferry<br />

Conference 2009<br />

October/November 2009, tba/tba<br />

www.actiaconferences.com<br />

Global Shipping Summit China<br />

November 2009, China/Dalian<br />

http://en.shippingchina.com<br />

Intermodal 2009<br />

Expo & Conference<br />

3-5 November 2009, ES/Valencia<br />

www.intermodal-events.com<br />

TLS Congress 2009<br />

24-25 November 2009, HU/Budapest<br />

www.tls-congress.com<br />

<strong>BTJ</strong> 6/2009 (Nov-Dec edition)<br />

* to be announced<br />

Dates and places of the events are subject to be changed by the organizing parties.<br />

1 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

Special Report: Behind the ports<br />

Focus on: The <strong>Baltic</strong> shipyards<br />

The <strong>BTJ</strong> seminar reflecting one of our core roles – promoting transport companies from the <strong>Baltic</strong> region<br />

worldwide. We have gathered the main Polish ports, a leading container terminal and northern <strong>Poland</strong>’s<br />

regional authorities to present their business offers in the TFL sector. We chose London, Europe’s centre<br />

for international shipping and financial/investment services. The event is co-organised by the Embassy of<br />

the Republic of <strong>Poland</strong> in London and held in place, under the honorary patronage of the Polish Ministry of<br />

Infrastructure.<br />

One of the most important bi-annual meeting places of the global maritime industry and much more than<br />

just an ordinary expo and conference. With a long and rich history Norway Trade Fair’s fundamental aim<br />

is to create business opportunities, and with over 800 exhibitors and more than 13,000 visitors (2007) the<br />

numbers clearly speak for themselves.<br />

This year’s Terminal Operations Conference and Exhibition moves to Bremen. Following 2008’s figures with<br />

2,500 attendants and 133 exhibitors demonstrating their products and innovations, one needs to expect a<br />

spectacular event, not only for the seaports/terminals and shipping industry, but the whole supply chain<br />

management.<br />

Special Report on: <strong>Baltic</strong> maritime transport<br />

Focus on: Aviation market<br />

The jubilee 15 th International Shipbuilding and Shipping Exhibition Baltexpo 2009 comprising the trade fair<br />

and the conference, will traditionally cover shipbuilding/ship-repair topics as well as equipment and services<br />

for the industry.<br />

Fifty major <strong>Baltic</strong> seaports’ annual meeting and a conference gathering executives from ports, port-related<br />

industries, international organisations, members of the EP, consulting companies, academia and professional<br />

media. Co-organised by The Port of Aarhus.<br />

The fifth edition of the international aviation conference, a well-known event for all kinds of air transport<br />

business in <strong>Poland</strong> and the CEE market. Delegates from various European countries will deal with the challenges<br />

of passenger/cargo traffic slowdown in the region’s airports.<br />

Entering its 2 nd year, the conference is addressing the most current issues for the Central and Eastern European<br />

air industry, like the financial crisis, practical advice and cost saving strategies, assessing ways to stimulate<br />

air cargo traffic growth and examining profitability of the cargo/parcel forwarding airlines.<br />

Special Report on: Railway transport & infrastructure<br />

Focus on: Ro-ro & ferry market<br />

The most prestigious rail industry meeting in <strong>Poland</strong> and one of the largest in Central and Eastern Europe.<br />

A nice opportunity to promote rail transport, freight forwarding and logistics, present the latest technologies<br />

and hold business meetings. The event is organized in partnership with Polish State Railways (PKP S.A.)<br />

and accompanied by an extensive programme of seminars, conferences & company presentations.<br />

The event concentrating on ro-ro, ro-pax and con-ro traffic on the <strong>Baltic</strong> Sea, giving a thorough insight<br />

to shipping/port/hinterland matters, actual trends in vessels technology and ro-ro shipping’s role in the<br />

regional logistics network.<br />

The 4th edition of the grand event gathering giants from shipping companies, ports, freight forwarders,<br />

traders, investment and financial institutions, IT business and government officials, both from China and<br />

abroad. Last year more than 1,600 delegates from over 27 countries joined this event to exchange ideas and<br />

experiences, build up business relationships, create new industry patterns and establish new cooperations.<br />

The world’s leading intermodal event comprised of a comprehensive exhibition and a conference held<br />

uninterruptedly for 34 years. As usual, expect over 100 exhibitors and more than 30 acclaimed speakers.<br />

A must attend for professionals involved in the container business.<br />

The TLS Congress for Central and Eastern Europe is once again inviting you for a discussion and networking<br />

with Europe’s leading companies on the latest strategies, initiatives and developments with regard to<br />

transportation, logistics and warehousing in the EU.<br />

Special Report on: BSR containerization<br />

Focus on: Road transport & infrastructure


What’s new?<br />

Maritime<br />

AS Tallink Grupp has announced the results<br />

in its traffic level during April 2009 in<br />

comparison to the same period a year ago.<br />

Passengers’ traffic increased by 25.3% and<br />

reached 621 674 persons. Such an increase<br />

was caused by the Easter holidays, celebrated<br />

later than last year (March). The highest volume<br />

of traffic was observed on the route<br />

Latvia – Sweden. Tallink Grupp also transported<br />

more passenger vehicles (increase by<br />

50.2 %), but less cargo units (decrease by<br />

33.4%), when compared to April 2008. The<br />

company introduced new vessels of a higher<br />

capacity to operate on almost all its routes.<br />

MacGREGOR, part of Cargotec Corporation,<br />

a company providing ’cargo handling<br />

services for ships, will implement a major<br />

order for two German ship owners. The<br />

company will deliver two types of cranes<br />

(electro-hydraulic and cylinder luffing) and<br />

lift-away hatch covers for six 3,100 TEU<br />

container ships, which are currently under<br />

construction at the Chinese shipyard of<br />

Rongcheng Shenfei Shipbuilding Co<br />

Ltd. Four vessels were ordered by Nordic<br />

Hamburg Shipping NHS GmbH & Co.<br />

KG and two others by Hansa Shipping<br />

GmbH & Co. KG. The whole order will cost<br />

over EUR 10 mln and delivery will be completed<br />

between 2010 and 2012.<br />

Atlantic Express Service (ATX) will soon be<br />

operated by a larger than present, united<br />

group of shipping companies. Currently, it<br />

is operated by the Grand Alliance members<br />

(Hapag – Lloyd, Nippon Yusen<br />

Kaisha – NYK and Orient Overseas<br />

Container Line – OOCL) together with<br />

ZIM Integrated Shipping Service. After<br />

the agreement receives FMC approval, the<br />

third operator will be Hamburg Süd. The<br />

port rotation will remain as it is: Rotterdam-<br />

Hamburg-Le Havre-Southampton-New<br />

York-Norfolk-Charleston-Rotterdam.<br />

The new ferry – Lisco Maxima – began<br />

to operate on the route between Kiel and<br />

Klaipėda on 12th of May. It is the largest<br />

ferry sailing under the flag of Lithuania and<br />

replaced the older one – Lisco Optima.<br />

New vesel’s capacity is 2,500 lane meters<br />

for trucks and trailers, she can carry up to<br />

600 passengers (previous one could take<br />

325 persons). The journey takes 21 hours.<br />

Six departures a week have made this service<br />

the most important ferry connection<br />

between Germany and the <strong>Baltic</strong> states.<br />

1 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

Stepping into a new phase<br />

In order to develop the position of the<br />

largest port in the Nordic region and a<br />

transit hub for the <strong>Baltic</strong> region and Russia,<br />

the Göteborg Executive Board has supported<br />

a proposal to divide the port into<br />

the port authority and three terminal companies.<br />

This decision will open the doors<br />

On the route from Gdańsk to Rotterdam<br />

IMCL – Inter Marine Container Lines –<br />

one of the biggest container operators on the <strong>Baltic</strong><br />

announced starting a new connection from<br />

DCT Gdańsk to Rotterdam. IMCL started cooperation<br />

with DCT in December 2007. During<br />

that time, the company offered one call a week to<br />

the ports of Hamburg and Bremerhaven. Starting<br />

from May 2009, IMCL provides two calls of one<br />

ship to Rotterdam/Hamburg, while the weekly<br />

call to Hamburg will still be maintained. The vessel<br />

that operates on the new route is BCL Iwona<br />

(672 TEU) and she departs from DCT Gdańsk<br />

every Saturday. Firstly, the ship will call at two<br />

terminals in Rotterdam: ECT Delta Dedicated<br />

West (DDW) and ECT Delta Dedicated North<br />

(DDN) every Tuesday/ Wednesday. Additionally,<br />

the ship will also call at Hamburg. Nakis Kassos,<br />

Photo: BCT Gdynia<br />

Learning from the best<br />

TOC Europe 2009 will take place in<br />

Bremen, Germany, 16-18 June. The conference<br />

is accompanied by the trade fair with<br />

over 120 exhibitors, giving a nice opportunity<br />

to learn about strategic business development<br />

and practical operational issues within terminal<br />

cargo handling. “The conference programme<br />

will focus on the economic downturn<br />

and other pertinent issues facing the industry,”<br />

pointed Paul Holloway, Event Director<br />

of TOC Events Worldwide. Sharing ideas on<br />

how to manage in difficult times should not<br />

for private terminal operators. “I regard<br />

the decision as a natural progression. The<br />

Port Authority can now focus entirely on<br />

developing Göteborg as a marketplace and<br />

freight hub and reinforce its role as the leading<br />

port in the Nordic region,” said Magnus<br />

Kårestedt, CEO of the Port of Göteborg.<br />

General Manager of IMCL, said, “Cooperation<br />

with DCT Gdańsk has always been excellent.<br />

From the very beginning we have offered a direct<br />

route from DCT to Hamburg and Bremerhaven.<br />

We are convinced that this connection<br />

with the Rotterdam port will create new possibilities<br />

for all clients on this evolving market.”<br />

IMCL was established on Cyprus in 1996.<br />

The company provides shipment delivery services<br />

for many operators from Northern Europe up to<br />

the <strong>Baltic</strong> Sea. In 2007 the company acquired the<br />

Polish operator – <strong>Baltic</strong> Container Lines (BCL),<br />

creating one of the biggest container service operators<br />

on the <strong>Baltic</strong>. Its fleet operates between German,<br />

Polish and Lithuanian ports. It has also recently<br />

started up a new connection on the route to<br />

Esbjerg in Denmark.<br />

dominate the 33rd TOC meeting. Equally<br />

important are new strategies, equipment procurement,<br />

asset and risk management that<br />

will be presented by top industry leaders, like<br />

Dries van Dongen of Maersk Line, Markus<br />

Pressdee of Credit Suisse or Ghislain Lorthiois<br />

of CMA CGM Terminal Link. This year the<br />

attendees will have the chance to participate<br />

in some workshops for free. Leading industry<br />

suppliers, like APS Technology, ABB and<br />

Conductix Wampfler will present their new<br />

cost-efficient products and services.


One yacht, one man, one ocean<br />

Photo: Paweł Czekała<br />

A single-handed non-stop yacht race<br />

across the Atlantic Ocean with no outside<br />

assistance allowed, is the challenge by a<br />

famous Polish sailor, Cpt. Jarosław Kaczorowski.<br />

The Artemis Transat regatta starts<br />

in 2012 from Plymouth (UK), heading to<br />

Boston (USA), but first requires pre-qualification.<br />

Cpt. Kaczorowski is now looking<br />

for partners for a two year sponsorship<br />

programme throughout Europe with national<br />

& international media broadcast on<br />

TV, radio, press and the internet. The sponsorship<br />

proposition involves branding the<br />

yacht and sails, the yachtsman’s and support<br />

team outfits, the team car and official<br />

website as well as product endorsement.<br />

The Artemis Transat race, known until<br />

2004 as the OSTAR, is the oldest solo race<br />

in history which has grown the greatest sailing<br />

legends over the last four decades, like<br />

Tabarly, Birch, Peyron, Joyon and MacArthur,<br />

to name a few. Jarosław Kaczorowski became<br />

the Polish Champion when he was only 11.<br />

He also was twice the World Champion in<br />

Micro Class and the winner of Mackinac<br />

Race in PHRF A (1999), the 1st place taker<br />

with „Łódka Bols” in Sydney-Hobart Race<br />

(2001) and the captain of this huge racing<br />

yacht in 2002-2003. In 2007 Cpt. Kaczorowski<br />

took part in the Mini Transat, a single-handed<br />

regatta across the Atlantic from<br />

France to Brazil, on a very small (6.50 m)<br />

and fast (up to 20 knots) boat. He finished<br />

at 19th place out of the total 89 competitors.<br />

He was then honoured a prestigious title<br />

of “The Sailor Of The Year” in <strong>Poland</strong><br />

Maritime<br />

What’s new?<br />

Port of Rotterdam authorities have<br />

presented their European agenda for<br />

2009-2014, “Working together on Europe”.<br />

The brochure consists of three policy<br />

themes: Space for the Future, Accessibility<br />

and Sustainability and contains fifteen practical<br />

recommendations for further development<br />

of the port sector in the EU. The areas<br />

requiring attention firstly are: a strong and<br />

integrated transport and port policy, high<br />

quality hinterland connections, a realistic<br />

environmental policy, preventing protectionism<br />

and promoting free world trade.<br />

The Polish Port of Szczecin has been<br />

chosen by Sail Training International to<br />

be a Presenting Sponsor of the Tall Ships<br />

Races for a period of four years. Szczecin<br />

will host the Tall Ships Races in 2013,<br />

the city’s logo will be presented on the<br />

races’ official symbol. STI has chosen this<br />

city because its authorities pay special attention<br />

to maritime interests and young<br />

people. Szczecin successfully hosted the<br />

guests from all over the world during the<br />

final of races in 2007.<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 1


What’s new?<br />

Logistics<br />

GAC has set up a new company in Norway<br />

and opened a business development office<br />

in Oslo to meet the needs of the country’s<br />

energy sector. GAC Logistics (Norway) focuses<br />

on the energy industry’s air, sea and<br />

road transportation needs and serves the<br />

whole of Norway. Ahmet Özsoy, managing<br />

director of GAC Logistics (Norway), also<br />

heads GAC-ORO – the company formed<br />

by the acquisition of Norwegian shipping<br />

company, Ole R Olsen, in 2007. In addition<br />

to project logistics, ship logistics and<br />

freight forwarding services, GAC Logistics<br />

(Norway) also provides warehousing and<br />

distribution services.<br />

Grundfos and CEVA Logistics have<br />

signed a new contract for spare parts logistics<br />

support. The partnership between<br />

CEVA and the pump manufacturer began<br />

in 2004, and encompassed warehousing<br />

services for the spare parts, handling of<br />

inbound flows into Europe and preparation<br />

of the outbound flows. CEVA’s Site in<br />

Eindhoven, the Netherlands, will continue<br />

to act as the European Distribution Centre<br />

for the spare parts flows to Grundfos’<br />

European and intercontinental customers.<br />

Other news is that CEVA Logistics and<br />

Wärtsilä are expanding their partnership.<br />

CEVA Logistics will manage Wärtsilä’s<br />

new central distribution centre in the<br />

Netherlands. CEVA has been managing<br />

spare parts transportation and deliveries<br />

to Wärtsilä’s European warehouses and<br />

international customers since September<br />

2008. Now it will manage Wärtsilä’s existing<br />

Netherlands warehouse in Zwolle and<br />

assist in planning the new distribution<br />

centre, which is scheduled to be fully on<br />

stream by 2011.<br />

Wallenius Wilhelmsen Logistics (WWL)<br />

opened a flagship European Vehicle<br />

Processing Centre (VPC) in Zeebrugge, Belgium.<br />

The company invested over EUR 8.5<br />

mln to develop two eco-friendly VPC’s. The<br />

new VPC is complemented by a recently<br />

opened facility dedicated to handling high<br />

and heavy ro-ro equipment. The technical<br />

services complex incorporates a biological<br />

water recycling system, extra insulation<br />

and other energy service measures to ensure<br />

its low ecological footprint. The company<br />

assumes that the trading conditions<br />

of Q1 2009 will persist through the rest of<br />

the year, although the recent stabilisation<br />

in express is a welcomed situation.<br />

20 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

Deutsche Post DHL’s profit plunged<br />

Germany’s Deutsche Post DHL reported<br />

that its first quarter operating profit crashed<br />

95% from a year ago mainly due to the cost of<br />

shuttering its U.S. domestic express delivery<br />

service. Deutsche Post CEO Frank Appel said<br />

declines in air and ocean freight volumes caused<br />

by the global economic recession may be bottoming<br />

out. “Our international express shipments<br />

stabilized in March, and April’s figures<br />

seem to point in a similar direction,” Appel said.<br />

“In terms of air freight volumes, we have been<br />

seeing a monthly improvement since January,<br />

and we even experienced an increase in March,<br />

compared with last year in ocean freight.”<br />

“However, momentary developments<br />

should not hide the fact that the shipping<br />

volume still remains far below the previous<br />

year’s level in most areas,” he cautioned.<br />

Deutsche Post said it will likely reach<br />

its target of cutting non-operating costs<br />

by $1.33 billion by the end of 2010, sooner<br />

than planned. It is re-organizing its express<br />

and mail divisions to further cut costs, and<br />

shifting mail shipments from air to ground<br />

Kuehne+Nagel’s cost-cutting program pays off<br />

Photo: Kühne+Nagel<br />

Kuehne+Nagel managed to increase its<br />

sales activities to counteract the recession-related<br />

volume decline by leveraging an effective<br />

cost-cutting program. Compared with<br />

the prior year period, turnover dropped by<br />

19.2% to CHF 4.29 billion in Q1 2009. In the<br />

global sea freight market, the negative trend<br />

from the fourth quarter of 2008 continued,<br />

although K+N gained additional market share<br />

in March. The result was a 13% drop in Q1 volumes,<br />

which was less than the market average.<br />

However, strict cost management enabled the<br />

company to produce an operational result only<br />

4.7% below the one in 2008.<br />

The air freight business was particularly hit<br />

hard by the recession, with the global market<br />

transportation. It may postpone salary increases<br />

and extend working hours.<br />

Express revenue fell by 25.9% to USD 3.3<br />

billion in the first quarter as time-definite<br />

shipments declined by 13.3%.<br />

Due to restructuring costs in the United<br />

States, the express division swung to an operating<br />

loss of USD 521 million from a yearearlier<br />

profit of USD 10.6 million.<br />

Outside the U.S., underlying express earnings<br />

fell to USD 88 mln from USD 305 mln in<br />

the first three months of 2008.<br />

Global freight forwarding revenue<br />

slumped 18.2% to USD 2.55 billion, due<br />

largely to a 26.2% drop in air freight volumes.<br />

Ocean container shipments fell ten percent<br />

compared with a market decline of 16%.<br />

Forwarding and corporate freight earnings<br />

slipped to USD 59.8 million from USD 103.7<br />

million.<br />

Deutsche Post said declines in overall<br />

operating earnings excluding one off items<br />

should be “significantly lower” in the next<br />

three quarters.<br />

dropping more than 20% from the previous<br />

year. Again, strict cost control and substantial<br />

new business gains mitigated an impact on<br />

K+N’s performance. Thus, despite an overall<br />

volume decline of 17.9% compared to the previous<br />

year, the operational result decreased by<br />

only 10.3%.<br />

In the first quarter of 2009, demand in European<br />

road transport weakened further, with<br />

volumes in Germany dropping by 20% in the<br />

first two months of the year. The improved<br />

network capacity utilisation and substantial<br />

cost reduction could not compensate for this<br />

volume decline. The 31.4% increase in gross<br />

profit is primarily due to the consolidation of<br />

the French Alloin Group in the Kuehne+Nagel<br />

Group’s financials from January 1st. The operational<br />

result was 45.5% lower than that of the<br />

prior year period.<br />

Kuehne+Nagel compensated for the continued<br />

decline in the global contract logistics<br />

market with new business, and counteracted<br />

high fixed costs and insufficient warehouse<br />

utilisation through stringent cost management<br />

and workforce reductions. Nevertheless, the<br />

operational result dropped by 21.3%. According<br />

to CEO Reinhard Lange, it is impossible to<br />

predict when the global economy will recover,<br />

therefore K+N will adhere to its dual strategy<br />

of rigorous cost control with a commitment to<br />

market share expansion.


From North to South<br />

Photo: Kühne+Nagel<br />

DB Intermodal now offers its customers a<br />

consistent and cycled intermodal transportation<br />

concept from the Nordic countries via<br />

Germany to southern Italy. “Our customers increasingly<br />

expect solutions that combine costeffectiveness<br />

with environmental protection.<br />

A cry for help<br />

More than 20 chief executives of private<br />

and state-owned European rail freight companies<br />

have proclaimed a joint declaration, urging<br />

the EU and national governments to introduce<br />

concrete measures supporting the railways’ efforts<br />

to cope with the effects of the crisis on<br />

their business. According to the data collected<br />

by the Community of European Railway and<br />

Infrastructure Companies (CER), the economic<br />

downturn has had a major impact on railways<br />

since the last quarter of 2008. Rail freight traffic<br />

in the EU in January 2009 declined by 36%,<br />

compared to the previous year. “Some railways<br />

have only limited investment programs to cut<br />

DB Intermodal CEO Hans-Georg Werner<br />

said: “Our intermodal transportation services<br />

in Europe, with the environmentally friendly<br />

rail transportation as the backbone, provide<br />

the right answer. DB Intermodal helps to<br />

avoid 1.3 mln tons of carbon emissions year<br />

after year, and at the same time, it considerably<br />

improves our customers’ carbon footprint.”<br />

Overall, DB Intermodal provides 500<br />

trains per week on this route and thus transports<br />

roughly 130,000 tons of freight by rail.<br />

Hupac Director Bernhard Kunz commented:<br />

“As one of the leading European operators,<br />

we have developed the link between<br />

Sweden and northern Italy via the Big Belt in<br />

cooperation with DB Intermodal. This provides<br />

a direct link between the Swedish network<br />

and Italy via our Danish gateway Taulov.<br />

The synergies resulting from the cooperation<br />

with DB Intermodal have provided a major<br />

impetus for us to market daily services.”<br />

DB Intermodal produces the services on<br />

the route in close cooperation with the traction<br />

service providers DB Schenker Rail, Green<br />

Cargo, BLS Cargo, RTC and Lokomotion.<br />

and are poorly placed to find new sources of<br />

funding. They are therefore laying off staff. This<br />

could accelerate the vicious circle of decline<br />

that railways, particularly in Central and Eastern<br />

Europe, have experienced over the past few<br />

years.”, said Mr. Johannes Ludewig, CER Executive<br />

Director. The declaration outlines desirable<br />

measures to counter these issues. The first is to<br />

decrease energy prices and track access charges.<br />

The declaration also proposes infrastructure investments<br />

to remove bottlenecks and enhance<br />

infrastructure capacity. Rail companies are also<br />

asking for support to meet the legislative demand<br />

to reduce noise pollution.<br />

See us at<br />

Stand A1-39<br />

Overland<br />

What’s new?<br />

Vladimir Yakunin, President of the Russian<br />

Railways, announced that his company will<br />

invest RUB 2 bln (EUR 46 mln) in developing<br />

new RIC coaches for RZD’s international<br />

routes this year. “This will be the first time<br />

in the history of Russian coach building that<br />

coaches for international routes satisfying all<br />

international requirements and standards<br />

will be made in Russia,” said Mr. Yakunin. The<br />

RIC coaches are to be developed and produced<br />

at the Tver Coach Works. Russian Railways<br />

operates services to 16 European and<br />

Asian countries and provides through trains<br />

and coaches on 61 international routes.<br />

PCC Intermodal S.A. is going public. The<br />

company has published it’s Issue Prospectus<br />

which was approved by the Polish Financial<br />

Supervision Authority. The opening<br />

of the Public Offer is planned on September<br />

2009. The company is going to receive<br />

from the stock-market about PLN 27 mln<br />

(approx. EUR 7 mln) for its development.<br />

PCC Intermodal is systematically increasing<br />

its transport volumes. In 2008 it handled<br />

81.2 thousand TEU, which is 262% more<br />

than one year before.<br />

Despite the plummeting traffic in the fourth<br />

quarter of 2008, combi operator Hupac<br />

maintained a growth of 1.8% and reported<br />

an annual profit of CHF 2.8 mln (EUR 1.84<br />

mln) for 2008. The international exchange of<br />

goods in Europe, which has fallen by more<br />

than 20%, is having a very negative impact<br />

on combined transport. As a result operators<br />

are abandoning unfeasible connections<br />

and the combi network in Europe is thinning<br />

out. Hupac, however, is relying on continuity.<br />

“As one of Europe’s leading combi<br />

operators, we aim to stand our ground even<br />

in the crisis,” emphasized Bernhard Kunz,<br />

MD of Hupac.<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 21


What’s new?<br />

Aviation<br />

Ryanairistoaddtwomoreconnectionsfrom<br />

Gdańsk Lech Wałęsa Airport. The low fare<br />

carrier has decided to fly this summer from<br />

Gdańsk to Bremen and Alicante. According to<br />

Laszlo Tamás from Ryanair, it would be a great<br />

possibility to “face the crisis” and a chance for<br />

325 people from the Pomeranian region to<br />

keep their jobs. The carrier expects to serve<br />

through its six connections over 325 000 passengers<br />

this year from Gdańsk Airport.<br />

Finnair has successfully adopted the<br />

Amadeus Altéa platform. The new generation<br />

technology, which includes inter<br />

alia a departure control system and a multichannel<br />

self-service check-in will definitely<br />

improve the company’s capabilities. “The<br />

migration of our departure control system<br />

is the last step in a strategic project that will<br />

strengthen our business. Our operations<br />

spanning Europe and Asia require systems<br />

that easily and quickly adjust to new market<br />

demands,” says Finnair’s Tom Källström,<br />

VP e-business development.<br />

On 29 April, Air <strong>Baltic</strong> held an international<br />

conference on global trends in the aviation<br />

industry in Riga. The title of the conference<br />

was “Going to the North Hub Riga” and focused<br />

on air traffic in the <strong>Baltic</strong> region and the<br />

development of Riga as an important air traffic<br />

centre. The conference gathered aviation<br />

leaders, government representatives from<br />

the European Union and international media<br />

representatives, who exchanged views and<br />

experiences related to the direction in which<br />

the industry is headed. Subject matters at the<br />

conference were the global trends in the aviation<br />

industry, EU and regional co-operation<br />

in aviation, legislative developments, passenger<br />

flows, airport construction and renewal<br />

in Riga and the exchange of experiences<br />

among airports and airlines. Emphasis was<br />

given to the future of competitive hubs in the<br />

industry, as Riga is being developed as a hub<br />

for the north-eastern region of Europe.<br />

SAS and its partners Lufthansa, Swiss and<br />

Austrian Airlines have secured a procurementcontractwiththeSwedishgovernment<br />

for international travel. The purchasing process<br />

was conducted by the Swedish Armed<br />

Forces Logistics, SWAFLOG, and applies<br />

to all government agencies, departments,<br />

institutes of higher education and universities.<br />

For SAS, the agreement is valued at SEK<br />

190 mln (EUR 18 mln), with a potential for<br />

twice this amount.<br />

22 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

Photo: Kühne+Nagel<br />

The bankrupt’s new clothes<br />

The owners of the now bankrupt airline flyLAL have decided to start a new business outside<br />

Lithuania. Avia Solutions Group, the new aviation company, which in fact has only changed its<br />

name, is now registered in Estonia. The assumption is that the carrier will operate between Estonia<br />

and Europe, Asia and Africa. “It will become our key competitive advantage in the European<br />

region, in Eastern countries and on the global market, which we will focus on from now on,” said<br />

Avia Solutions Group CEO, Linas Dovydenas. According to company information, consolidated<br />

revenues of the group are seen reaching some LTL 400 mln (EUR 115.94 mln) this year. The airline<br />

wants to carry at least 90,000 passengers and gain a profit of more than EEK 1.5 mln (EUR 96,000).<br />

In order to verify these very optimistic expectations, we will have to wait until the end of the year.<br />

Do ”flying giants” conquer the market?<br />

Polet Airlines, one of the most important companies on the air transportation market, specialized<br />

in heavy and oversized cargo, have acquired three new IL-96-400Т. These long range,<br />

wide body aircraft, are new constructions manufactured in Russia. Their declared characteristics<br />

such as fuel efficiency, payload factor, cargo compartment volume make it an attractive product<br />

in most market segments. In particular, the fuel consumption by IL-96-400T is some 30% lower<br />

than the Boeing-747-400F. The cargo hold volume is over 770 cbm. The aircraft have been leased<br />

from Ilyushin Finance Co. and will start to operate in autumn 2009. Furthermore, the aircraft<br />

fleet will be extended by the acquisition of three additional IL-96-400Т aircraft in 2010-2011.<br />

Polet Airlines have acquired their main operation base for regular flights at Munich Airport. It<br />

is planned to operate flights serving the key hubs at different world regions including Europe.<br />

ELFAA protests against rising APD<br />

ELFAA (The European Low Fares Airline Association) in an official statement appealed<br />

to the UK government to limit the tax burden on the industry by removing the Air Passenger<br />

Duty (APD) or, at the very least, scrap the proposed increases in APD that are due to take effect<br />

on 1 November 2009 and 2010. For business class passengers travelling on long-haul flights to<br />

destinations in Asia and Australia, this will mean an increase from the current rate of £80 to<br />

£110 in November this year, and £170 in 2010, a hike of over 110 per cent in two years. Longhaul<br />

economy passengers will be equally as hard hit, by increasing from £40 today, to £60 come<br />

November, and £85 in November 2010. “Taxing transport, which facilitates international trade,<br />

investment and other economic activity, doesn’t make any sense whatsoever at this point of<br />

the economic cycle. Governments throughout Europe have woken up to the fact that aviation<br />

is crucial in pulling us out of the recession,” said John Hanlon, ELFAA Secretary General.


Just one question<br />

Short sea shipping<br />

Still good alternative to road transport?<br />

SSS is an already established form of moving goods in the <strong>Baltic</strong> Sea region and the whole of Europe. It is more reliable than road<br />

transport – but slower. It is more eco-friendly – but not able to deliver door-to-door. The European Union has put a lot of effort to put<br />

the cargo from wheel to keel, but is shipping still a good alternative to road haulage in the current conditions?<br />

2 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

Willy de Decker<br />

Market Prospector<br />

Shortsea Promotion Centre Flanders/Belgium<br />

The mission of the Shortsea Promotion Centre is to include shortsea as a sustainable part in the intermodal transport chain. We are<br />

looking for cooperation and synergy with other transport modes (inland navigation, road and rail). For the past 3-4 years the bigger<br />

road haulier companies have been profiling themselves as “multimodal providers” instead of just roadhauliers, demanding party for<br />

multimodal concepts, i.e. with ro-ro shortsea services, as they also are confronted with congestion on the roads, taxes, Maut, drive/<br />

rest regulations etc. Therefore, the road is definitely not the enemy, but a partner and target group of SSS. The previous strict “modal<br />

shift” required by the European Community has been replaced by “co-modality” where every transport mode in the transport chain<br />

is judged on its own merits.<br />

Markus Heinen<br />

Project Manager<br />

ShortSeaShipping Inland Waterway Promotion Center, Bonn, Germany<br />

The longer the distance and the more voluminous/greater the amount of goods, the more sensible is shortsea transport. The most<br />

important benefits of SSS are a reduction in cost and fixed schedules. Moreover, by using shortsea shipping you shift haulage of<br />

the road and generate capacities for passenger traffic. Road transport is becoming more and more unreliable due to lack of truck<br />

drivers, increasing fuel prices and toll, ban on HGVs driving on Sundays. However, if inventory carry costs are increasingly high,<br />

one has to prefer road transport due to longer durations/transit times. Road haulage cannot be excluded from European supply<br />

chains. A non-discriminating approach of the common carrier is necessary to optimize a transport system, so that one can benefit<br />

from the advantages of each transport mode.<br />

Ulf Sandevärn<br />

Marketing Manager<br />

Port of Karlshamn, Sweden<br />

One of the biggest advantages of short sea shipping is its eco-friendliness, incomparably higher than in the case of the road transport.<br />

Furthermore, the latter is far more vulnerable to various rules and regulations, such as the ban for driving on Sundays as well<br />

as environmental laws. The level of reliability of shipping is, of course, much higher than in case of road transport. The idea of short<br />

sea shipping is in line with the EU philosophy of moving traffic from road to sea; the port of Karlshamn has been strongly supporting<br />

this idea, for example by setting up a joint Motorways of the Sea project together with the port of Klaipėda.


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Maritime<br />

Trends in BSR oil & gas transportation<br />

Where will the lifeblood flow?<br />

Oil and gas continue to be the lifeblood of the world’s economy<br />

and the most often traded resources. In this issue we answer the<br />

question how does its flow influence traffic on the <strong>Baltic</strong> Sea.<br />

The issue of transporting gas and<br />

oil is very complex and definitely<br />

worth a long discussion. Therefore,<br />

Actia Forum organized a<br />

conference dedicated to the topic.<br />

In April, experts, policy makers<br />

as well as business representatives gathered in<br />

Gdańsk at the Trans-Port and Energy <strong>Seminar</strong>,<br />

debating on changes in the global exchange of<br />

energy materials, oil and gas transportation as<br />

well as petrol products logistics.<br />

The total demand for oil in Europe is estimated<br />

to be around 700 mln tons. Due to<br />

the scarcity of this resource in the BSR, 88%<br />

of the demand has to be satisfied by imports.<br />

Over 30% of them come from Russia, which<br />

has always been the greatest exporter of crude<br />

oil in the region. In 2007, its output reached<br />

2 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

490 mln tons; over a half has been exported,<br />

mostly to Europe. In order to reach its destination,<br />

Russian oil can be transported by three<br />

major channels: the Black Sea, the Druzhba<br />

pipeline or the <strong>Baltic</strong> Sea.<br />

By pipe or sea<br />

Historically, Russian oil has been exported<br />

mostly by a cheap and efficient system<br />

of pipelines but recently more pressure has<br />

been put on the development of other means<br />

of distribution. Already 75 mln tons are<br />

shipped every year via the flagship Primorsk<br />

port near St. Petersburg, which is capable of<br />

berthing huge Baltimax tankers. The volume<br />

could be doubled but pipeline capacity to the<br />

port keeps exports constrained. That is why<br />

Russia has taken the decision to build the new<br />

BPS II pipeline, which would connect Unecha<br />

and the recently built port in Ust-Luga.<br />

Transneft, the Russian state-owned business<br />

responsible for national oil pipelines, expects<br />

the construction to finish in the 3rd quarter<br />

of 2012, but other parties doubt their plans<br />

Marek Litka, the Vice-President of PERN<br />

“Przyjaźń” S.A. Management Board, said,<br />

“The Russians are sure they will build this<br />

pipeline, we however, are quite sure they will<br />

not.” Should BPS II be built, it could increase<br />

the volume of oil exported via the <strong>Baltic</strong> Sea<br />

by 30 – 50 mln tons. To further diversify its<br />

export markets Russia is building a pipeline,<br />

which will connect Taishet and Nakhodka. It<br />

is planned to reach a throughput of 80 mln<br />

tons and will open the Pacific market to Russian<br />

oil. The project is partially financed by<br />

a loan granted by the Bank of China and involves<br />

an agreement, which names China as<br />

the preferred buyer of oil. It is scheduled for<br />

completion in December 2009.


Political and environmental threats<br />

These projects would highly increase the<br />

elasticity of Russian oil exports and probably reduce<br />

the significance of the Northern Druzhba<br />

pipeline which is the most important source of<br />

supply for <strong>Poland</strong> and Eastern Germany. This<br />

fact would give Russia not only a higher bargaining<br />

power, but also a possibility to use oil as<br />

a means of political pressure on CEE countries<br />

more efficiently.<br />

Ecological hazards are also involved. Liquid<br />

cargos contribute 44% of the total maritime<br />

transport in the BSR. An increase in volumes exported<br />

via the <strong>Baltic</strong> Sea by 30-50 mln tons would<br />

result in greater traffic. We also have to bear in<br />

mind that shifting oil exports from the Northern<br />

Druzhba pipeline would force Polish companies<br />

to seek other sources of supply and in turn result<br />

in a substantial increase (even by 20 mln tons)<br />

in volumes handled at Naftoport in Gdańsk. This<br />

would add to the congestion in the <strong>Baltic</strong>. “On<br />

average, two large tankers leave Primorsk every<br />

day. More ships on the <strong>Baltic</strong> Sea could lead to an<br />

environmental catastrophe,” concluded Litka.<br />

Liquid Natural Gas<br />

Another resource about to get seaborne in<br />

the BSR is natural gas. Recent disruptions in<br />

the delivery of Russian gas have forced CEE<br />

countries to consider other sources of supply.<br />

LNG is the answer to this problem as it can<br />

easily be transported by sea. Today Europe<br />

imports 90% of its natural gas from Norway,<br />

Algeria and Russia, but LNG projects will open<br />

our market to other producers. Although due<br />

to the high cost of transport LNG continues to<br />

be a lot more expensive than pipeline gas, diversification<br />

of supply seems to be worth the<br />

price. Already several BSR countries are planning<br />

to build gas terminals in their ports.<br />

The Świnoujście LNG Terminal in <strong>Poland</strong>,<br />

which is an answer to the Nord Stream pipeline<br />

built by Russia and Germany, is scheduled<br />

for completion in 2014. This project has<br />

a very long history. The terminal was initially<br />

planned to be placed in Gdańsk but a feasibility<br />

study performed in January 2007 revealed<br />

that Świnoujście is a much better location.<br />

The key factor that led to this conclusion was<br />

time. It turned out that legal issues connected<br />

with obtaining land for the terminal in Gdańsk<br />

would cause unacceptable delays. The project<br />

has the full support of the Polish government<br />

and the parliament has adopted a special act<br />

to shorten the time of its construction. “This<br />

will be a completely new port,” says Sławomir<br />

Nitras, a member of the Parliamentary Committee<br />

of the Treasury. “The Prime Minister<br />

Maritime<br />

welcomed the idea of building not one, but six<br />

gas receiving posts”.<br />

Sweden is also building its own LNG terminal<br />

in Nynäshamn near Stockholm. It is going<br />

to be constructed by NCC Construction<br />

Sweden AB. The terminal will be the first of its<br />

type in the country and will facilitate the utilization<br />

of natural gas in Central Sweden. The<br />

natural gas will replace petroleum for city-gas<br />

production in Stockholm and the Nynäs refinery<br />

will use the natural gas in its production<br />

of hydrogen gas. The total value of the project,<br />

which includes the construction of an LNG<br />

tank awarded to Cryo AB, will be about SEK<br />

275 mln (EUR 26.3 mln). It is scheduled for<br />

completion in May 2011.<br />

In the next few years we will probably observe<br />

a significant increase in oil and gas transportation<br />

on the <strong>Baltic</strong> Sea. Russia’s efforts to<br />

diversify its export markets and its well-known<br />

practices of using oil and gas as a tool of political<br />

influence will force the CEE countries to<br />

seek other sources of supply. Most of them will<br />

have no other option but to import these resources<br />

by sea. The growing popularity of LNG<br />

will add further ships to the overall traffic. The<br />

question is, how much more traffic can the <strong>Baltic</strong><br />

Sea take?<br />

Błażej Mykowski<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 2


<strong>Baltic</strong> Master II<br />

From vision to action<br />

The <strong>Baltic</strong> Sea’s natural environment is fragile due to the limited<br />

water flow from the Atlantic and subsequent slow water exchange.<br />

The impact of an oil spill could be disastrous and it is safe to assume<br />

the coastal and local regions will be most heavily impacted.<br />

With this assumption in mind, it seems most appropriate to consider<br />

these issues also from a local and regional perspective.<br />

Photo: Swedish Civil Contingencies Agency<br />

Maritime<br />

In 2005, the <strong>Baltic</strong> Sea was officially<br />

announced as a Particularly Sensitive<br />

Sea Area (PSSA), an area that needs<br />

special protection through the action<br />

of IMO (International Maritime Organisation)<br />

and is prone to damage by<br />

international maritime activities which may<br />

influence various socioeconomic and environmental<br />

aspects of <strong>Baltic</strong> life.<br />

The predecessor…<br />

All these aspects were analysed in the international,<br />

EU-funded project <strong>Baltic</strong> Master<br />

which was completed in 2007. The project delivered,<br />

among other results, the <strong>Baltic</strong> Master<br />

Action Plan. It describes measures for a safe and<br />

clean <strong>Baltic</strong> Sea and contains recommendations<br />

such as proactive on-land contingency planning,<br />

enforcement of current safety regulations<br />

and development potentials of coastal management.<br />

The significance of the <strong>Baltic</strong> Master<br />

project was recognized by the Commitee of Regions<br />

and Parliament Review as it received the<br />

European Champion Award for the best European<br />

Maritime Project in 2007.<br />

…and the follow-up<br />

The project results indicated that further<br />

actions were necessary and accordingly,<br />

2 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

a follow-up project was formed – <strong>Baltic</strong> Master<br />

II – with the goal of continuing development<br />

of the issues started in the first project, and to<br />

go from vision to action.<br />

The overall aim of the <strong>Baltic</strong> Master II<br />

project is to improve the land-based response<br />

capacity to oil spills originating in the <strong>Baltic</strong><br />

Sea, as well as to enhance the prevention of<br />

pollution from maritime transport.<br />

The project is divided into four work packages.<br />

As Lead Partner, Swedish Region Blekinge<br />

acts as project secretariat and manages work<br />

packages one and two facilitating all project<br />

management and communication issues. Apart<br />

from project management, the secretariat also<br />

coordinates strategic cooperation with other<br />

projects, organizations, and activities to maintain<br />

political commitment. The aim of communication<br />

is to disseminate information relating<br />

to project results and activities as well as to encourage<br />

participation and involvement within<br />

the project.<br />

Work Package Three (WP3), led by the<br />

World Maritime University in Malmö, focuses<br />

on oil-spill preparedness, response and coastal<br />

management linked to contingency planning.<br />

Work Package Four (WP4), led by the Maritime<br />

Institute in Gdansk, includes several tasks<br />

which aim at preventing pollution caused by<br />

maritime traffic. WP4 will primarily focus on<br />

the existing legal framework regulating maritime<br />

transport in the <strong>Baltic</strong> Sea. It will also propose<br />

concrete measures that, when implemented, may<br />

improve maritime safety.<br />

The anticipated results from the <strong>Baltic</strong> Master<br />

II project are: a best practice report including<br />

a checklist for oil contingency planning, several<br />

local and regional oil contingency plans, a scenario<br />

exercise CD for exercising oil contingency<br />

plans, recommendations for how to integrate<br />

coastal management into contingency planning,<br />

recommendations for improved and harmonized<br />

waste management onboard and in ports,<br />

a research brief, assessing maritime conventions,<br />

a management plan for reduced pollution from<br />

maritime traffic, and, finally yet importantly, a<br />

political vision for the <strong>Baltic</strong> Sea, based on the<br />

project results.<br />

The project brings together partners from a<br />

wide range of backgrounds; local, regional and<br />

national authorities, research institutions, universities<br />

and pan-<strong>Baltic</strong> organisations. Providing<br />

a link between the local and regional level to the<br />

national level is a vital task of the project aiming<br />

to combine practical knowledge with strategic<br />

work. <strong>Baltic</strong> Master II puts a significant effort<br />

into developing concrete solutions to the environmental<br />

safety problems in the <strong>Baltic</strong> Sea.<br />

<strong>Baltic</strong> Master II facts and figures:<br />

• Project period: Jan. 2009-Jan. 2012<br />

• 48 organisations in the partnership from<br />

all countries surrounding the <strong>Baltic</strong> Sea<br />

• The project budget is approximately<br />

EUR 4 million<br />

• The project is partly financed by the European<br />

Union, <strong>Baltic</strong> Sea Region Programme<br />

Read more about the project, current maritime<br />

safety news and register to receive the<br />

project newsletter at: www.balticmaster.org.<br />

Part-financed by the European Union


Photo: PCC Port Szczecin<br />

<strong>Baltic</strong> <strong>Transport</strong><br />

b ibm i mo no tnh tlhy l-yd -ad ial y i l y c oc mo mp ap na ino ino n<br />

<strong>Journal</strong><br />

Behind the ports<br />

Success through synergy .............................................................................................. 30<br />

Railways supporting the ports .................................................................................... 32<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 2


Report<br />

Freight villages in Germany<br />

Success through synergy<br />

As the logistics business started to develop dynamically<br />

in the 1970s, a tendency to move out<br />

of the city centres could be observed. At the same<br />

time, in order to enhance their competitiveness<br />

and the spectrum of services offered, ports started<br />

to invest in their logistics facilities. Looking at<br />

those two tendencies now, it is easy to say that<br />

the creation and development of freight villages<br />

was the next logical step to undertake.<br />

Photo: PCC Port Szczecin<br />

The term ‘freight village’ usually appears surrounded by<br />

the adjectives: co-modal, multi-modal or intermodal. In<br />

fact, one of its most important features is a combination<br />

of various modes of transport and logistics services. The<br />

most advanced FVs offer a wide range of amenities, from<br />

container and ro-ro facilities to rail sidings and warehousing<br />

opportunities. This is the main idea: creating a commercial area in<br />

which both transport-oriented companies and logistics service providers<br />

as well as logistics-intensive trade and production enterprises can<br />

find their place. Such a freight village, in unison with the intermodality<br />

rule, should offer at least two modes of transport (in particular road and<br />

rail). And all this lies in the hands of a local manager, whose basic role is<br />

to initiate cooperation among the companies involved.<br />

Altogether, freight villages are transport and logistics or, to be more<br />

specific, freight-related clusters, aiming at the highest levels of competitiveness<br />

and attractiveness. This goal ought to be achieved in line with<br />

the basic economic law, saying that the effect of synergy can be more<br />

easily achieved by cooperation instead of competition. A freight village<br />

0 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

can provide a very wide offer which could not be available by a single<br />

company. It is a mixture of cooperation between the enterprises, master<br />

planning, high quality settings, location near cities as well as a broad<br />

scope of related and supporting services. These can also include vehicle<br />

service, repair and leasing or even employment agencies, training facilities<br />

and insurance companies.<br />

Pros and cons<br />

The advantages of freight villages are numerous. Taking into consideration<br />

the benefits to businesses, it is obligatory to mention the market<br />

proximity. Everything is there, in one place, which not only saves the<br />

potential customers’ time and money, but also ensures the safety and<br />

efficiency of the service. Access to multimodal transport is another important<br />

factor.<br />

There are a number of public benefits of freight villages as well. FVs<br />

certainly are centres of growth, providing jobs and restoring lands to tax<br />

roles. Furthermore, a concentration of companies relieves congestion;<br />

not to forget the esthetical factor – instead of warehousing sites and<br />

factories scattered in the whole city, there is one modern freight village<br />

in the city’s neighbourhood.<br />

There is, however, a bitter drop in this sweet ocean of positive aspects<br />

of freight villages. There have been voices, also from Brussels, negatively<br />

evaluating the top-down planning, typical for clusters in general,<br />

and FVs among them. It was also said that decisions made in a cluster<br />

are not market-based and as such cannot be truly beneficial to the actors<br />

involved. Moreover, the EU has pointed out that the aim of consolidation<br />

is not always achieved, which can lead to abandoning the goal of<br />

cooperation instead of competition.<br />

How they did it in Germany<br />

Certainly, there is no ideal model – neither in terms of achieving<br />

100% of the goals, nor when considering a benchmark suitable for everyone.<br />

“We’re not even looking for one,” says Steffen Nestler, Managing<br />

Director, Deutsche GVZ Gesellschaft. “It is obvious that the freight villages<br />

differ not only nationally, but also regionally, depending on the<br />

relations with the local and regional authorities as well as their development<br />

stage.”<br />

Steffen Nestler and Thomas Nobel were the ones who came up with<br />

the idea of coordinating the work of freight villages in Germany in the<br />

1990s. The German model was SME-oriented, however constructed in a<br />

way which enabled it to develop according to the market’s needs. After<br />

over ten years of functioning of FVs, Thomas Nobel claims the yardstick<br />

has remained the same: strong cooperation aimed at achieving the effect<br />

of scale and focus on linking logistics centres with various modes of<br />

transport. Nevertheless, over the course of the evolution, freight villages<br />

in Germany extended their activity and opened up, among other things,<br />

to the real estate and warehousing business. Currently, approximately<br />

1,300 enterprises are active in German freight villages, employing about<br />

45,000 people.<br />

Where does the source of success lay? Steffen Nestler names the following<br />

advantages of FVs as the most important success features:<br />

– attitude to logistics as an economic factor (diversification of production<br />

processes and outsourcing tendencies in manufacturing


and trade, enabling medium-sized companies to cope with the market<br />

requirements through cooperation with suitable partners, sufficient<br />

infrastructure and suprastructure as well as consolidation of<br />

logistics know-how and possible 24/7 operational availability);<br />

– a trend towards intermodality (the option of alternative transport<br />

modes ought to improve entrepreneurial flexibility and guarantees<br />

the quality of logistics services; moreover, the high logistics affinity<br />

of road haulage is effectively combined with the advantages of other<br />

transport modes);<br />

– advantage through synergies (direct cost savings thanks to cooperative<br />

purchase and pooling of resources, support from the FV<br />

management for the tenant companies implementing new service<br />

product ideas);<br />

– networking of logistics structures (both on a national and international<br />

level).<br />

A safe umbrella<br />

What distinguishes Germany from other countries where FVs are<br />

present is the density of the network and the high level of cooperation<br />

between them. The entity which has played a significant role in achieving<br />

that is DGG – Deutsche Güterverkehrszentren-Gesellschaft, an umbrella<br />

organization coordinating the work of the freight villages. Founded<br />

in 1993, DGG not only initiates and coordinates common projects, but<br />

also acts as an external representative of the actors involved in the FVs.<br />

Moreover, it is aiming at transferring the positive effects which freight<br />

villages generate on the local and regional level to the national and European<br />

level. Typical fields of collaboration are: intermodal transport<br />

(new transport chains between FVs), implementation of a logistics-oriented<br />

service spectrum in the FVs, intensification of location marketing<br />

and harmonisation of service standards as well as creating sustainable<br />

models for the development and operation of FVs.<br />

As DGG is also involved in consulting in the area of transport and<br />

logistics, it has conducted several projects dealing with freight villages in<br />

other countries. One of them is the “EU-<strong>Baltic</strong> Tangent” aimed at building<br />

a FV network in the <strong>Baltic</strong> Sea region. However, the highest hopes<br />

and biggest expectations are bound to the GVZ Masterplan, whose preparing<br />

DGG took part in as well. Conducted in the German Federal<br />

Ministry of <strong>Transport</strong>, Building and Urban Affairs, the document is a<br />

limestone of the current transport policy in Germany. Regarding freight<br />

villages, the following measures should be noted:<br />

– “Avoiding unnecessary journeys – ensuring mobility” (which supports<br />

investments in innovative and capacity-enhancing technologies<br />

as well as urban logistics initiatives)<br />

– “Shifting more traffic to the railways and inland waterways” (where<br />

combined transport is promoted)<br />

– “Further measures to make Germany even more attractive as a centre<br />

for logistics” (where freight transport and logistics as well as promotion<br />

of them are of high priority).<br />

Implementation of the Masterplan can certainly be included in the<br />

list of accomplishments. Has any failure occurred over the past ten years?<br />

Thomas Nobel names a far-fetched telematics project – an IT platform<br />

with various offers for and from freight villages. The DGG Managing<br />

Director is, however, optimistic about the future of the project. “It may<br />

be distant now, but some day a well-developed IT infrastructure will be<br />

the standard for every freight village in Germany”, he says.<br />

And the winner is…<br />

As it has already been stated, the level of performance differs significantly<br />

between freight villages. Since 2004, the leader of the ranking<br />

remains GVZ Bremen, leaving its competitors far behind (see Table 1).<br />

Report<br />

The high level of marketing, job creation and protection as well as the<br />

manifold activities of GVZ Bremen play a decisive role in this context.<br />

This leads to a continuation of the very successful development of the<br />

increasing competition between the FV locations. According to Thomas<br />

Nobel, the freight village in Bremen probably belongs to the “Top 10<br />

FVs”, not only in Germany, but in the whole of Europe.<br />

“We remain at the highest position in the ranking, because we offer<br />

a high level of competence in logistics and practical know-how for<br />

the freight village,” says Michael Moehlmann, the Managing Director<br />

of GVZ Bremen. The north German freight village focuses its offer on<br />

logistics-intensive wholesale and production in the area of the food<br />

industry. Founded in 1985, it was the first operating freight village in<br />

Germany. In an area of 360 ha, it employs around 5,500 people working<br />

in 135 companies.<br />

The level of public investments, since GVZ Bremen was founded,<br />

has achieved a level of approximately EUR 180 mln, whereas private<br />

entities invested about EUR 200 mln.<br />

Other interesting examples of freight villages adjacent to seaports<br />

include GVZ Hamburg and GVZ Kiel. This is, however, material for<br />

another story…<br />

Martyna Bildziukiewicz<br />

Tab. 1 “TOP 10” German freight villages 2007<br />

Position Freight Village Position 2004 Total performance<br />

(max<br />

300)<br />

1 Bremen 1 280<br />

2 Nürnberg 6 265<br />

3 Berlin-Süd 3 257<br />

4 Leipzig 5 255<br />

5 Dresden 11 243<br />

6 Emsland 12 241<br />

7 Regensburg 2 238<br />

8 Berlin-West 4 236<br />

9 Herne 9 233<br />

10<br />

Source: DGG.<br />

Trier 8 226<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 1


Report<br />

Rail container transport in the BSR<br />

Railways supporting the ports<br />

Proper functioning of the maritime container<br />

transport in the <strong>Baltic</strong> Sea region is strictly dependent<br />

on the development of a national transport<br />

system and its performance. A majority of<br />

the container hinterland traffic is served by road<br />

haulage. The road infrastructure underdevelopment<br />

of the East European countries and the<br />

increasing focus on environmental issues in the<br />

whole EU make rail transport the perfect solution<br />

for container seaports’ services.<br />

Regular container shipping lines need conventional land<br />

connections. Block container trains are the only way to<br />

ensure fast and effective hinterland connections. Total<br />

European traffic (when we take into account all members<br />

of UIRR, the International Union of Combined Road-Rail<br />

<strong>Transport</strong> Companies) of rail intermodal transport in<br />

2008 achieved a level of 2,937 ITU (Intermodal <strong>Transport</strong> Unit).<br />

2 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

Becoming popular…<br />

A significant rise of activity in rail container traffic is shown by JSC<br />

TransContainer, an affiliated company of the Russian Railways (RZD).<br />

In 2008, TransContainer transported 1.5 mln TEU on the fitting platforms<br />

which cover 60% of the total container transit in Russia. According<br />

to the latest information, TransContainer handled 300,000 TEU of<br />

regional and global container volumes carried on container flat cars in<br />

Q1 2009 – 12% down, compared to the same period last year. The other<br />

Russian rail container operators carried 145,000 TEU on container flat<br />

cars, down 36% from last year’s figure. TransContainer is also engaged<br />

in numerous services in Finland and Latvia. Scheduled seaports container<br />

rail connections with a share in TransContainer are: St. Petersburg-Moscow;<br />

Tallinn-Moscow (a joint initiative by TransContainer<br />

and Estonian Railways AS); Riga-Moscow (operated by TransContainer<br />

and Latvian Railways (LDz Cargo) and St. Petersburg-Finland (operated<br />

by Oy ContainerTrans Scandinavia Ltd., initiative TransContainer<br />

and VR-Cargo).<br />

Polish examples of rail container transport are the services provided<br />

by PKP Cargo SA and PCC Intermodal. PKP Cargo SA is part of<br />

the national Polish Railways with a strong market position. In 2008,<br />

the company transported a volume of 628,400 TEU (annual growth


Photo: PCC Port Szczecin<br />

22.7%). About 18% of this traffic was to/from Polish seaports. The<br />

railways operate about 20 block container trains per day. The company<br />

cooperates with such operators as ICF, Polzug, European Rail<br />

Shuttle, Hupac, Eurolog, Kombiverkehr and Kühne&Nagel. PCC<br />

Intermodal, a private company, renders services from the following<br />

seaports: Gdańsk/Gdynia, Bremen/Bremerhaven and Rotterdam. In<br />

2008, PCC Intermodal transported over 47,600 containers (over 81.2<br />

thou. TEU). What is more, CTL Logistics, the main private rail carrier<br />

in <strong>Poland</strong>, also has the ambition to become a major player on the<br />

Polish rail container market.<br />

A wide offer of seaports’ hinterland container services is also<br />

available in Sweden. For instance, 25 shuttle container trains are operating<br />

from Göteborg. The service is rendered by such companies<br />

Report<br />

like Green Cargo, Intercontainer, Mid Cargo, CST <strong>Transport</strong> and<br />

ERS Railways. The total turnover of rail traffic achieved a level of<br />

342 thou. TEU in 2008. That means that 40% of the total seaport<br />

traffic was transferred by trains.<br />

…and specialized<br />

The container train connections offered by ‘Viking’ is another<br />

interesting initiative. The combined ‘Viking’ train is a joint project<br />

of the Lithuanian, Belarusian and Ukrainian railways, seaport cargo<br />

companies, and the Klaipėda, Ilyichevsk and Odessa seaports. The<br />

train carries containers as well as semi-trailers and trailer-trains<br />

(contrailers). It operates on the route from Klaipėda to Ukraine, Belarus,<br />

the Near East and Caucasus.<br />

Combined shuttle trains, served containers, swap-bodies and<br />

trailers also operate from the German <strong>Baltic</strong> seaports of Lübeck and<br />

Rostock. In the first case, the rail network consists of 11 destinations<br />

and 61 trains per week. Long distance connections reach Verona in<br />

Italy. In Rostock, 25 combined trains per week are offered. They connect<br />

the seaport with the hinterland territory of Germany, Switzerland,<br />

Austria and Italy.<br />

The examples of rail containers’ activities on the <strong>Baltic</strong> seaports<br />

hinterland presented above could be regarded as energy-efficient and<br />

an environmentally friendly way to serve the flow of <strong>Baltic</strong> boxes. It<br />

should be believed that the share of rail container traffic will grow, at<br />

the expense of road haulage.<br />

dr Maciej Matczak<br />

Actia Consulting/Actia Forum Ltd<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


The Port of Stralsund<br />

The Hanseatic spirit<br />

Walking along the streets of the German city of Stralsund, one can still feel the spirit of the<br />

Hanseatic city. Some even say that the tradition of being one of the major long-distance ports in<br />

northern Europe in the Middle Ages is the reason for the port’s logistic success now.<br />

Photo: The Port of Stralsund<br />

According to Sören Jurrat,<br />

Marketing and Sales Director<br />

of the Seaport of Stralsund,<br />

the harbour is now an efficient<br />

and attractive logistics<br />

centre. Naturally, the port’s<br />

location on the <strong>Baltic</strong> coast of western Pomerania<br />

influences to some extent the main directions<br />

of foreign exchange. However, apart<br />

from Norway, Sweden (gypsum, limestone,<br />

building materials), Finland (steel, scrap) and<br />

Denmark, one of its most important partners<br />

is the United Kingdom, from which steel<br />

plates are imported and where agricultural<br />

products are being shipped.<br />

In search for…<br />

The port is owned by SWS Seehafen Stralsund<br />

GmbH. The company’s target is the<br />

| <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

processing and manufacturing industry, for<br />

which the port offers a high level of logistics services.<br />

In addition to the logistical and infrastructural<br />

facilities, the goods and services available<br />

from local companies are also a major attraction.<br />

Subsidies and a well-educated and trained workforce<br />

are further arguments favouring locating<br />

in Stralsund. Access to the European system of<br />

inland waterways is also worth mentioning.<br />

Apart from the abovementioned advantages<br />

of the port, let us present you with some<br />

basic data. The port’s quay length is 2,300 m,<br />

on which 25 berths of a 7.5 m depth are located.<br />

The port spreads over an area of 85 ha<br />

(including water). The covered storage goes<br />

as far as 3,000 m², whereas the open storage<br />

covers 50,000 m². The port’s silo capacity comprises<br />

30,000 t.<br />

Seehafen Stralsund focuses on conventional<br />

cargo handling, especially metals,<br />

steel plates and steel bars for the German<br />

and European shipbuilding industry, in cooperation<br />

with its sandblasting facility inside<br />

the port. Over 200,000 tons of steel for<br />

German shipyards is handled and processed<br />

yearly. Furthermore, the port provides modern<br />

equipment for dry bulk (building materials,<br />

agricultural products, gypsum and<br />

limestone). Another landmark is the logistics<br />

service for East German power stations, the<br />

construction industry and export as well as<br />

import of agricultural goods.<br />

“The key in our philosophy is the universality<br />

– in harmony with high quality standards,<br />

flexibility and long-term experience in<br />

stowage and warehousing,” says Sören Jurrat.<br />

In fact, apart from cargo handling, the Port<br />

of Stralsund is slowly becoming an important<br />

destination for cruise shipping. The<br />

development of this activity gathered pace


in 2002, when the Old Town of Stralsund<br />

was recognised as a world heritage site. At<br />

the moment, the seaport is the most heavily<br />

frequented harbour for river cruise liners<br />

in Germany. Famous lines (Peter Deilmann,<br />

Scylla Tours and SeaChef Cruises, CroisiEurope,<br />

Viking Croiséres) use it as the base for<br />

their tours through the unique canal and<br />

shoreline waters of Brandenburg and Mecklenburg-Vorpommern.<br />

Four in one<br />

The port comprises four main harbours,<br />

each of which has its own destination and field<br />

of specialisation. In the City Port (Stadthafen),<br />

berths for cruise liners, boat tours, authority<br />

vessels and traditional sailing boats can be<br />

found. In the summer the port is a basis for<br />

famous shipowners of the river cruise lines.<br />

An important advantage is its location in the<br />

vicinity of the historical old town.<br />

Classic handling areas for grain, deep-frozen<br />

goods and scrap can be found in Nordhafen<br />

– The North Port. A service for power stations<br />

is going to be provided there as well. The<br />

shipment of grain and the discharge of gypsum<br />

is made possible thanks to the special plants.<br />

The South Port (Südhafen) attracts the<br />

steel industry with a terminal dedicated for<br />

handling, blasting and plimering plates and<br />

sectional steel. According to the port’s management,<br />

almost all suppliers or shipbuilding<br />

enterprises of the Mecklenburg-Vorpommern<br />

region are customers of this terminal. Another<br />

attractive facility offered here is a logistics<br />

centre for export and import of agricultural<br />

Transhipment in the seaport of Stralsund<br />

BULK GOODS construction materials<br />

GENERAL<br />

CARGO<br />

gypsum<br />

fertilisers<br />

grain<br />

chemical products<br />

chalk<br />

a special bulk handling<br />

installation for unloading<br />

of goods wagons<br />

project cargo<br />

refrigerated goods<br />

timber<br />

METALS steel plates<br />

section steel<br />

coils<br />

wires<br />

STORAGE open and roofed stock<br />

grounds<br />

CANAL<br />

SHIPPING<br />

Europe-wide inland<br />

navigation<br />

despatch of cruise<br />

liners<br />

LOGISTICS Customer tailored and<br />

to (almost) all destinations<br />

by all means of<br />

transport<br />

COMMISSION-<br />

ING<br />

weighing<br />

palletising<br />

sorting<br />

Annual <strong>Baltic</strong> Ports Conference and<br />

12 th BPO General Assembly in Aarhus<br />

Photo: The Port of Aarhus<br />

goods, handling of scrap, building material<br />

and project cargo.<br />

Last but not least, the Franken Port (Frankenhafen)<br />

aims at attracting the production<br />

industries. The port’s berths are dedicated to<br />

the seaside development of the Port Extension<br />

and Commercial Area “Franzenshöhe Maritime<br />

Business Park”. As Mr Jurrat said, further<br />

extension of Franken Port is currently being<br />

discussed with the transport ministry of the<br />

Mecklenburg-Vorpommern region. However,<br />

the details of the idea remain a mystery.<br />

Getting better<br />

Significant investments in the port’s equipment<br />

as well as the local infrastructure, such<br />

as expanding the southern harbour, building<br />

the new Franken harbour, connecting the port<br />

to the A20 motorway via the Stralsund bypass<br />

and the new Ruegen bridge, which came<br />

into use in October 2007, have made Seehafen<br />

Stralsund’s location very attractive to business<br />

and tourism.<br />

Hinterland connections are of big importance<br />

to the port. Therefore, in order to enhance<br />

the rail-bounded pre-and post carriage,<br />

1,000 m of tracks have been laid in the South<br />

Port, whereof 500 m are close to the quay.<br />

The port’s condition can best be summarized<br />

by quoting Sören Jurrat once again, “We<br />

are a good example of how a port can benefit<br />

from its relatively minor size. It enables us to<br />

deliver reliable tailor-made services, combined<br />

with a high level of quality and flexibility.”<br />

Martyna Bildziukiewicz<br />

The Annual <strong>Baltic</strong> Ports Conference is<br />

the most important event for BPO members<br />

as well as an opportunity to get together.<br />

Previously the host of the event was<br />

the Port of Lübeck, now the duties of the<br />

co-organizer are taken over by the Port of<br />

Aarhus.<br />

This year’s <strong>Baltic</strong> Ports Conference will<br />

be held 3 rd -4 th of September in the Aarhus<br />

Concert Hall. The main theme of the conference<br />

is the global economic slowdown.<br />

Participants will take a close look at the<br />

downturn’s impact on shipping and ports<br />

as well as discuss the challenges this situation<br />

brings.<br />

The event will gather not only top executives<br />

from all major <strong>Baltic</strong> ports, but<br />

also politicians and academia, as well as<br />

transport sector and media representatives.<br />

Around 70-100 participants are expected to<br />

take part.<br />

For more information, please follow the<br />

updates on www.bpoports.com or contact the<br />

BPO Secretariat at bpo.office@actiaforum.pl.<br />

BALTIC PORTS ORGANIZATION • Secretariat Office – Actia Forum Ltd.<br />

ul. Pułaskiego 8, 81-368 Gdynia, POLAND, ph.: +48 58 627 24 67, fax: +48 58 627 24 27,<br />

e-mail: bpo.office@actiaforum.pl, bpo.sg@actiaforum.pl, http://www.bpoports.com<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


<strong>Baltic</strong> shipyards<br />

Photo: Fesco <strong>Transport</strong> Group Focus<br />

Not a sinking trade<br />

A revolution in ownership, falling and delayed production, growing losses and financial turbulences<br />

marked the year of 2008. The year 2009 has started with closures, order cancellations, backlogs and<br />

announcements of redundancies. The <strong>Baltic</strong> shipyards are in an eye of world crisis and the future is<br />

uncertain. Therefore, we will not forecast the events in the coming years. Let us concentrate on ‘hard’<br />

and often unknown figures and discover the facts behind the headlines.<br />

In 2008, 19 <strong>Baltic</strong> shipyards delivered 75 seagoing vessels over GT<br />

1,000 each (Table 1). The total gross tonnage was 2,312 thousand<br />

which means 3.8% of world production. Five <strong>Baltic</strong> countries<br />

contributed to those numbers, three with the whole output<br />

of tonnage (Table 2). However, the hierarchy changes if we take<br />

compensated gross tonnage into account (CGT – a statistical<br />

tool developed in order to enable a more accurate macro-economic<br />

evaluation of the shipbuilding workload than is possible on a pure gross<br />

tonnage (GT) basis).<br />

Production in Denmark, Germany and <strong>Poland</strong> was dominated by<br />

container ships and in the case of the latter – also by car carriers. As<br />

Table 3 shows, 65% of the <strong>Baltic</strong>-made tonnage belongs to the two<br />

simplest types of ships characterized by a CGT workload factor below<br />

20. A low CGT factor also means a low added value. For comparison<br />

– in 2007 the share of containerships and car carriers in world<br />

shipbuilding amounted only to 29%. It is worth noting that <strong>Baltic</strong><br />

continued on page 38<br />

2/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


Focus<br />

shipyards in 2008 did not produce ships with the highest workload<br />

factors – chemical tankers (CGT factor 84) and LPG carriers (factor<br />

62). Oil tankers accounted only 2.5% of the <strong>Baltic</strong> output, while they<br />

are one third for the world. Those facts disclose partly the reasons of<br />

some economic phenomena, including the latest takeovers – Polish<br />

shipyards, except Finnish and Russian, made mostly air surrounded<br />

by steel which means they meet the full fury of the Asian competition.<br />

It is killing the companies that are not able to turn their heading. The<br />

two largest <strong>Baltic</strong> shipyards – in Odense and Gdynia – are also the<br />

biggest losers. In Odense the Lindøværft’s result for 2008 amounted<br />

to a deficit of DKK 562 mln (EUR 76 mln) with a turnover of DKK<br />

5157 mln (EUR 692 mln); Gdynia’s loss came to PLN 137 mln (EUR<br />

33 mln), with a turnover of PLN 1058 mln (EUR 257 mln).<br />

Behind the shadow<br />

An additional and important contribution to the <strong>Baltic</strong> Sea region<br />

is being made by partly outfitted hulls (in 2008 at least 40 hulls<br />

were towed to Norwegian and Dutch yards) and blocks, superstructures<br />

and other parts of ships. Thanks to statistics oriented to the<br />

final product, we often forget that nowadays shipbuilding is strongly<br />

outsourced and therefore <strong>Baltic</strong> region is a backbase for many Western<br />

and even <strong>Baltic</strong> shipyards. Therefore, our list of production yards<br />

should be lengthened by 15 enterprises which we can call “block<br />

and/or hull factories”. The largest one, Baltija Shipyard in Klaipėda,<br />

processed over 50,000 tons of steel into blocks and superstructures<br />

in 2008 alone; the second on our list, Loksa in Estonia, consumed<br />

about 40,000 tons, of which 15,000 were used for hatch covers (both<br />

belong to Odense Staalskibsværft A/S, which is a subsidiary of the<br />

A.P. Møller-Maersk concern). Such kind of production is important<br />

also for many repair yards; i.e. in 2008 the Riga Shipyard delivered<br />

11 hulls. The highest concentration of “block/hull factories” is in<br />

Gdańsk, where 10 companies live only or mostly off this business,<br />

processing about 100,000 tons of steel and 4,000 tons of aluminium<br />

per year. Total output of the <strong>Baltic</strong> support sector amounted to<br />

250,000 tons of metal. Taking into account that a typical coaster includes<br />

less than 1,000 tons of steel, whereas 5,000 tons is needed for<br />

a medium-sized oceangoing vessel, we can imagine the importance<br />

of that “shadow” industry for European shipbuilding.<br />

Additionally, two old “delisted” shipyards should be mentioned<br />

because of their floating products. Neptun Werft from Rostock<br />

Photo: Magemar Polska<br />

| <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

Table 1. <strong>Baltic</strong> shipyards building over GT 1,000<br />

Shipyard Country<br />

Odense<br />

Lindøværft<br />

Number<br />

of ships<br />

Gross tonnage<br />

Denmark 5 563,800<br />

Gdynia <strong>Poland</strong> 7 352,680<br />

Wadan* Germany 14 284,374<br />

Volkswerft Germany 9 233,100<br />

Turku (STX) Finland 1 154,407<br />

Szczecin New <strong>Poland</strong> 5 130,690<br />

Peene-Werft Germany 8 126,360<br />

Flensburger Germany 4 102,000<br />

Helsinki (STX) Finland 2 84,693<br />

HDW Gaarden Germany 3 84,150<br />

Rauma (STX) Finland 2 68,462<br />

Gdańsk <strong>Poland</strong> 1** 32,270**<br />

Admiralteyskiye Russia 1 27,752<br />

Lindenau Germany 2*** 27,480<br />

Northern <strong>Poland</strong> 10 23,500<br />

Baltiyskiy Russia 1 9,491<br />

Marine Project <strong>Poland</strong> 2 4,950<br />

Karstensens<br />

Skibsværft<br />

Denmark 3**** 1,500<br />

total – 80***** 2,312,209<br />

* actually 2 shipyards; Warnemünde made foreparts and<br />

superstructures, Wismar afterparts and joins hulls<br />

** plus 3 partly outfitted hulls totalling GT 46,800<br />

*** plus 1 floating dock 6,000 dwt<br />

**** plus 2 patrol vessels for the Danish Navy, displacement 2,050 tons<br />

each; both hulls made by Stal-Rem in Gdańsk<br />

***** includes 5 ships below GT 1,000: 1 tug from Lindenau, 2 standby<br />

vessels from Northern and 2 fishing vessels from Karstensens<br />

Skibsværft<br />

delivers mainly blocks to its parent company Meyer Werft, but also<br />

built passenger (cruise) river vessels (only one in 2008), while Russian<br />

Vyborg switched to the offshore sector and is building mobile<br />

platforms.<br />

The list of production yards will be longer in 2009, because some<br />

“factories” have just finished or will finish turn key vessels; for example,<br />

Partner from Szczecin is building coasters, Western Shipbuilding<br />

from Klaipėda – double ended ferries, Wisła from Gdańsk<br />

– fishing vessels.


New capital takes (and turns?) the wheel<br />

The year 2008 also brought new names and a new grouping to the<br />

shipbuilding industry in Northern Europe. The brand of Aker Yards<br />

was substituted by two others – STX Europe and Wadan Yards. The<br />

first one, a well established South Korean builder, has taken over the<br />

whole Aker business except its former German yards at Wismar and<br />

Warnemünde, which now trades under the latter brand. Wadan Yards<br />

is a new company – it comprises three yards, the third of which is at<br />

Nikolaev in Ukraine. Its shareholders are FLC West, a Russian private<br />

equity fund (70%) and STX Europe (30%).<br />

Wadan hopes to change the production profile thanks to Russian<br />

orders for icebreaking vessels, which ought to be used for the anticipated<br />

expansion of Arctic shipping. The company has started to market<br />

a mixed range of ships and offshore structures. The assortment<br />

includes icebreakers and ice-going cargo vessels as well as LNG carriers<br />

intended for Arctic operation. The offer also comprises a selection<br />

of ro-pax ferries, container ships (between 1,500 and 2,800 TEU)<br />

and multi-purpose sea-river cargo vessels. Construction of the world’s<br />

two largest ro-pax vessels for Stena Line for delivery in February and<br />

August 2010 commenced in the spring of 2008, thanks to the former<br />

owner. Semi-submersible drilling rigs complete the portfolio.<br />

STX’s European <strong>Baltic</strong> branch, STX Finland Cruise, has another<br />

problem. Yards situated in Turku, Helsinki and Rauma produce very<br />

sophisticated ships, but they have a very short order book. It consists<br />

of four newbuildings only: two passenger (cruise) vessels Genesis class<br />

for Royal Caribbean (the Oasis of the Seas (GT 226,000), scheduled for<br />

delivery in 2009 and her sister vessel, the Allure of the Seas, scheduled<br />

for 2010, will be the largest passenger ships ever built) and two ro-paxes<br />

for P&O Ferries. Production of both cruisers is in progress, steel cutting<br />

for the first ferry started in March 2009. A high uncertainty regarding<br />

capacity utilization means that the portfolio of the STX department<br />

Cruise & Ferries has been expanded to cover also other types of vessels<br />

including icebreaking tonnage and selected types for the offshore industry.<br />

The company hopes that energy-related segments of the market are<br />

more stable. The trouble is that everybody in the industry has the same<br />

idea. Volkswerft has some AHTS in its order book, Wadan and Odense<br />

Staalskibsværft A/S are also marketing for offshore structures.<br />

Meanwhile, during the first quarter of 2009 the ferry Armorique<br />

(GT 29,468) was delivered from the Helsinki yard and the cruise ferry<br />

<strong>Baltic</strong> Queen (GT 43,800) left the Rauma facility.<br />

Table 2. <strong>Baltic</strong> shipbuilding nations<br />

Country GT CGT in thousands<br />

Germany* 856,464 470<br />

Denmark 565,300 243<br />

<strong>Poland</strong> 544,620** 285<br />

Finland 307,582 335<br />

Russia* 37,243 50<br />

total 2,312,209 1,375<br />

* part of the national production<br />

** includes GT 530 (2 tugs) made by Damen Shipyard Gdynia<br />

More than repair<br />

Table 3. <strong>Baltic</strong> shipbuilding by main types<br />

Type<br />

Workload<br />

factor<br />

Number of<br />

ships<br />

Passenger ships 49 3* 239.1<br />

Tankers 48 2 54.8<br />

NCCV 46 10 24.7<br />

Ro-ro 32 7** 198.8<br />

General cargo 27 7 64.5<br />

GT<br />

in thousand<br />

Containers 19 42 1,206.3<br />

Car carriers 15 5 288.5<br />

* including 2 cruise ferries<br />

** including 4-day ferries<br />

Focus<br />

The second – or rather third – category of shipyards is the<br />

repair branch. We measure their potential in the <strong>Baltic</strong> region by<br />

the number of dry and floating docks used only for repairs, maintenance,<br />

etc., excluding slips which served rather smaller vessels.<br />

Our registration disclosed 37 companies which operate 28 dry<br />

and 58 floating docks. Four of them are also listed as production<br />

shipyards because of their universal role (Lindenau, Karstensens<br />

Skibsværft and both Russian yards). Others are also active on<br />

the newbuilding market, but it is a margin of their turnover. In<br />

2008 the aforementioned Riga Shipyard delivered two tugs (GT<br />

468 each); small Kallandsö Varv, the most highly situated <strong>Baltic</strong><br />

shipyard (in the Lake Vänern, which is under maritime authority)<br />

built a 40-metre road ferry for traffic in the Göteborg archipelago.<br />

Lithuanian Laivite Shipyard has found an exclusive niche<br />

– it assembles airplanes made in USA in kit form.<br />

Repair yards, contrary to the globalized production branch,<br />

live off local markets established by a concentration of ports<br />

– most ships have to or can be repaired between loading and discharging.<br />

Therefore, serious repair facilities are present around<br />

the <strong>Baltic</strong> shores except the Bothnia region. Most yards are concentrated<br />

in three areas – around Kattegat’s shores (Danish: Orskov,<br />

Fredericia; Swedish: Cityvarvet, Falkvarv, Gotenius Varv,<br />

Öresundsvarvet), around the Gulf of Gdańsk (Polish: Remontowa,<br />

Nauta; Lithuanian: Western) and in the Gulf of Finland<br />

(Tallinn, Turku). The Remontowa shipyard operates the largest<br />

floating dock in the <strong>Baltic</strong> (36,000 dwt) and the Turku shipyard<br />

has the largest dry dock used for repairs (265 metres long) in the<br />

<strong>Baltic</strong> Sea region.<br />

At the end, we should mention numerous groups of companies<br />

making small, but rather sophisticated vessels: large yachts, pilot<br />

boats, rescue vessels, patrol vessels for coast guards, etc. The Danish<br />

company Royal Denship (which, by the way, went bankrupt in<br />

April this year) built motor expedition yachts up to 65 metres in<br />

length, Swedish Dockstavarvet is famous thanks to hundreds of<br />

fast landing crafts made for amphibious forces around the world,<br />

Finnish Uki Workboats have made a wide range of small ships for<br />

dirty works; and it is just the top of the iceberg.<br />

Marek Błuś<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


Maritime<br />

Naval cooperation & guidance for shipping<br />

Protecting merchant ships<br />

Military operations conducted by naval forces frequently involve<br />

or have some impact on merchant shipping and likewise,<br />

merchant shipping may affect naval operations. Naval Co-operation<br />

and Guidance for Shipping (NCAGS) participates in a broad<br />

range of maritime operations during peacetime, crisis or major<br />

conflicts. It is supposed to provide military guidance, advice or<br />

assistance with respect to participating nations’ global, maritime<br />

commercial interests in order to enhance the safety of merchant<br />

ships and to support military operations.<br />

NCAGS’s activities are focused<br />

on all aspects relating to<br />

merchant shipping such as<br />

the provision of guidance,<br />

picture compilation, surveillance,<br />

deconfliction or supervision.<br />

The military commander should aim to<br />

deliver a tailored, cost effective and executable<br />

NCAGS plan, which must conserve military<br />

resources and minimise the impact on merchant<br />

ships, therefore it could minimise negative<br />

economic consequences.<br />

Organization<br />

The NCAGS Organisation (NCAGSORG)<br />

will seek to develop and implement measures<br />

to facilitate the conduct of military activity<br />

at sea either involving, or in the presence<br />

of, merchant ships. The size of the NCAG-<br />

SORG and level of expertise required will<br />

be commensurate with the operation. The<br />

NCAGSORG must be flexible and prepared<br />

to operate within a wide variety of command<br />

structures and operational environments.<br />

It may comprise some or all of the mentioned<br />

below elements tailored to suit the<br />

0 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

situation depending on the level of NCAGS<br />

support that is to be provided.<br />

Procedures<br />

NCAGS procedures utilised in any particular<br />

operation will be determined by the requirements<br />

of the operation and will focus on the safety of<br />

merchant ships in the area. The procedures are<br />

listed in the paragraph below.<br />

An NCAGS area is an area within which<br />

NCAGS procedures have been implemented.<br />

The Shipping Risk Area (SRA) delineates an<br />

area of higher or specific risk to merchant ships<br />

within an operations area. An NCAGS area may<br />

contain one or more SRAs. Furthermore, Communication<br />

Reporting Gates (CRGs) are established<br />

to provide a position for merchant ships<br />

to call the NCAGSORG in order to establish initial<br />

contact or to update previous information. A<br />

CRG should be positioned in such a way that a<br />

minimum notice period of 36 hours is available<br />

to merchant ships to contact their owners/operators<br />

for onward passage instructions before<br />

reaching the AOO/NCAGS Area/SRA. Monitoring<br />

of Merchant Ship Movements is critical to<br />

the maintenance of an accurate RMP. NCAGS<br />

personnel must make every effort to update the<br />

contact information. Guidance to Merchant<br />

Ships will be provided to participating merchant<br />

ships to help them understand the nature and extent<br />

of the risk in the area. The guidance is purely<br />

voluntary and intended to allow merchant ships<br />

to determine their own voyage. A voluntary arrangement,<br />

in which merchant ships may be<br />

organised for passage through a specific area of<br />

increased risk in company with military assets,<br />

is called Accompaniment and can be recommended<br />

by NCAGS. Other procedures include:<br />

lead-through and convoys.<br />

Benefits<br />

NCAGS can provide benefits to the military<br />

commander as well as to merchant shipping.<br />

The activities related to the military commander<br />

are as follow: a more comprehensive picture of<br />

merchant activity in the maritime portion of<br />

the Common Operational Picture (COP) and<br />

Recognised Maritime Picture (RMP); deconfliction<br />

of merchant ships from military operations;<br />

improved safety and security of merchant ships<br />

in a crisis area; improved effectiveness in supporting<br />

Crisis Response Operations (CRO) and<br />

Maritime Interdiction Operations (MIO); better<br />

understanding of commercial constraints,<br />

improved counter-terrorism capability; more<br />

efficient and cost effective employment of military<br />

forces; improved counter-piracy capability<br />

and finally, more opportunities for training with<br />

merchant ships in exercises arranged with forces<br />

on passage.<br />

The benefits that can occur to Merchant<br />

Shipping are: improved safety and security in<br />

crisis areas; minimising disruptions to passages<br />

through areas where military operations are being<br />

conducted; maintenance of economic flow;<br />

quicker reaction to changing threats; better understanding<br />

of military constraints; potential for<br />

stabilising insurance costs; minimising disruption<br />

to commercial schedules; improved support<br />

for counter-terrorism as well as counter-piracy.<br />

Undoubtedly, all benefits for both sides have<br />

been widely recognized and appreciated, therefore<br />

NCAGSORG has been established within<br />

the Navy’s structure of many NATO countries.<br />

CDR Ryszard Miler, PhD,<br />

Head of NCAGS Cell<br />

CDR Mariusz Kościelski,<br />

Head of Command Planning & Liaison Cell<br />

POL Navy Maritime Operations Centre


Maritime<br />

Groningen Seaports are looking for partners<br />

A niche hub for the <strong>Baltic</strong>?<br />

With the low price factor and no congestion in the<br />

ports nor in their hinterland, Groningen Seaports<br />

wish to position themselves as a <strong>Baltic</strong> hub. However,<br />

their proximity to Rotterdam, Hamburg and<br />

JadeWeserPort (soon) make the containerized<br />

cargo flow shift to Eemshaven-Delfzijl hardly possible;<br />

therefore, the ports are trying to find their<br />

niche role in bulk goods consolidation.<br />

Groningen Seaports consist of three business elements:<br />

an over 1000-year-old port in Delfzijl, a deep sea port<br />

in Eemshaven and a new Rail Service Centre Groningen<br />

(RSCG) in Veendam. RSCG, a trimodal inland<br />

rail port handling containers and conventional loads<br />

has a daily shuttle train connections to Rotterdam and<br />

weekly shuttles to Amsterdam, Hamburg and Antwerp.<br />

So far, the main handled cargoes are minerals (salt, limestone and sand),<br />

chemicals and oil products (bitumen). There is a huge resource of salt in the<br />

bottom of the Groningen area and large gas fields onshore which has led<br />

2 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

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to the development of the chemical complex in Delfzijl (12 companies in a<br />

chloride industry). The port also features a 31 ha metal park acting as a cluster<br />

for metallurgic companies and bordering the large production plant of<br />

the aluminium smelter, Aldel. The Port of Delfzijl comprises 1,500 hectares<br />

and a 1,000 m quay length. Its draught is 9 m. Last year’s cargo throughput<br />

amounted to 5,7 m/t – mainly salt, methanol, MDI, gypsum and feed.<br />

The Port of Eemshaven provides 1,150 ha, a draught of 10.5 m and<br />

1,250 m of quays. The cargo throughput was 2.2 m/t in 2008 and consisted<br />

mainly of agricultural and building materials – both recycling and new<br />

products. The eastern part of the port is turning into a huge energy park<br />

with four power plants. The already existing largest gas-heated power<br />

plant in Europe (the 24 MW Electrabel) is going to be backed up by three<br />

new plants by 2012/13 – the Dutch Nuon Magnum, the German RWE<br />

and the Swiss Advanced Power. Vopak is building a huge oil tanker park<br />

on its own 55 ha terminal which is to become a strategic storage place<br />

for oil for the Netherlands. There are also plans for Vopak cooperation<br />

on raising a 12 bcm LNG terminal in Eemshaven. All these, according to<br />

the ports’ management, should lead to an increase in Eemsaven’s cargo<br />

throughput even by 175%, once the investments are completed. “We are<br />

pretty successful in attracting businesses to the port, having sold or long<br />

leased more than 60% of the Eemshaven’s area in just 5 years,” comments<br />

Harm Post, Groningen Seaports’ managing director. Both ports feature<br />

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700 hectares of industrial sites, out of which 330 ha are still available. The<br />

vision of the authorities is to have the surrounding area full of business<br />

parks. On the other hand, as the ports’ marketing manager Marjolein Zwerwer<br />

puts it, the ports wish to increase their cargo throughput and logistics<br />

services, to bring added value and counteract the image of a dedicated<br />

facility for the industrial manufacturers onsite.<br />

Fair-cost alternative<br />

Groningen claims to be a fair-cost alternative to the main continental<br />

ports. Both Eemshaven and Delfzijl offer pilotage exemption to vessels<br />

shorter than 90 metres. Moreover, the ports’ dues for one transhipped container<br />

is less than five euro, no matter if the box is loaded or unloaded, but as<br />

the ports have practically not handled containers so far and pure transhipment<br />

in 2008 was below 1% of their total throughput, Groningen believes in<br />

their niche role of consolidating mainly industrial and breakbulk goods.<br />

Looking to the <strong>Baltic</strong><br />

Likewise, rather than going to the abused western direction, the main<br />

area of interest for Groningen ports lies in the southern <strong>Baltic</strong> and the ports<br />

are wishing to find partners for the MoS project(s). “It’s not that we are<br />

developing new trade relations with the <strong>Baltic</strong> area, but rather renewing<br />

them now,” says Post. “Due to good trade relations between our regions<br />

some 200-250 years ago northern Holland became one of the most important<br />

shipping centres in Europe, but also now the companies located<br />

in Groningen 20090130_Advertisement do a Transfennica_landscape_3mmBleed.pdf lot of traffic with the 1/30/2009 <strong>Baltic</strong> 3:55:49 area, PM e.g. the forest products,<br />

Photo: Groningen Seaports<br />

Maritime<br />

fertilizers, gypsum or aluminium”. Groningen’s offer to the <strong>Baltic</strong> Sea region<br />

comes in three business fields: cargo transhipment for the energy port,<br />

development of the bio cluster (both in Eemshaven) and consolidation of<br />

the <strong>Baltic</strong> bound cargo to avoid congestion in the main ports. The three<br />

new power plants in Groningen are to consume five mln tons of coal and<br />

one mln tons of biomass per year so there is a huge demand for imports<br />

of these resources. The bio industries cluster uses a variety of technologies<br />

to produce chemicals, biofuels, food ingredients and power from biomass<br />

raw materials. Posts suggests that – as <strong>Poland</strong>, for example, is a big rapeseed<br />

production place, the biofuel manufacturers in Groningen should stimulate<br />

their cargo flow between the countries.<br />

Piotr Trusiewicz<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


Maritime<br />

The dry freight and tanker market<br />

Prepared by Polfracht<br />

Dry Cargo Market Report, March-April 2009<br />

In the first half of March the <strong>Baltic</strong> Dry Index continued its rise<br />

thanks to a fairly strong demand for handysize and panamaxsize tonnage<br />

and despite the uninspiring outlook for the capes. By mid-April,<br />

however, the BDI slid down to the level of early February, strengthening<br />

a bit towards the end of the month.<br />

CAPE:<br />

After promising development of the cape-size sector in February,<br />

March noted earnings sliding down. The market was dominated by ore<br />

trades from Australia and Brazil to China, with other trades only occasionally<br />

appearing on the market. Rates for ore in the Brazil/China<br />

run stood at about USD 22/mt at the beginning of March, then started<br />

softening daily, down to about USD 16/mt at the end and keeping this<br />

level throughout the first half of April. Then the rates moved up to<br />

about USD 19.50 and eased again at the end of the month. Similarly,<br />

the Australia/China ore trade fluctuated from about USD 8/mt to<br />

about USD 6.50/mt.<br />

PANAMAX:<br />

March started on a positive note and during the month the Atlantic<br />

market went up from about USD 14,000 to about USD 21,000 daily, but<br />

in the end the rates were back to square one. The best rates were obtained<br />

by open vessels in the Mediterranean and the Black Sea for trips with iron<br />

ore to China or those willing to trade Aden/Somalia waters where pirates’<br />

activity motivated many owners to stay away from that area.<br />

April opened with a negative trend on the Atlantic and only in the<br />

pre-Easter period, when owners and charterers wanted to cover their positions,<br />

rates moved a bit higher before falling at the end of the month to<br />

about USD 10,000 per day.<br />

The Atlantic/Far East trade was influenced by grain cargoes from<br />

South America where rates in late March improved to around USD 23,000<br />

per day, however, later in April they fell to around USD 19,000.<br />

The Pacific market was much weaker as a result of the big number of<br />

open tonnage.<br />

There was some small activity for the period where rates reported at<br />

USD 12,000 daily for 1 or 2 years t/c.<br />

HANDY:<br />

Grains, coke, sugar, fertilizers and scrap have still been the driving<br />

engine keeping the handy market strong, although the end of April noted<br />

rates falling.<br />

Atlantic round voyages, also those to the Far East, fetched rates between<br />

USD 20,000 and 30,000 per day for supramax tonnage and about<br />

USD 10,000 for handies. Voyages within South-East Asia and the Indian<br />

Ocean stood on average at USD 9,500 and USD 14,000 at their peak. The<br />

Pacific market has been helped by more coal coming from Kalimantan as<br />

the monsoon did not hit the area as early as one would have expected.<br />

The acts of piracy in the Gulf of Aden still influence the market to<br />

some extent, with a number of charterers directing their vessels round<br />

Africa rather than via the Suez Canal.<br />

| <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

Average monthly freight indices and rates during<br />

February-April 2009:<br />

a) freight indices II’09 III’09 IV’09<br />

<strong>Baltic</strong> Dry Index (BDI) 1816 1958 1659<br />

<strong>Baltic</strong> Capesize Index (BCI) 3179 2442 2206<br />

<strong>Baltic</strong> Panamax Index (BPI) 1332 1824 1403<br />

<strong>Baltic</strong> Supramax Index (BSI) 1105 1567 1289<br />

b) freight rates (USD/mt) II’09 III’09 IV’09<br />

110,000 mt coal, Hampton Roads<br />

– Rotterdam<br />

140,000 mt coal, Richards Bay<br />

– Rotterdam<br />

140,000 mt iron ore, Narvik –<br />

Rotterdam<br />

150,000 mt iron ore, Tubarão<br />

– Rotterdam<br />

10.30 9.11 8.58<br />

9.35 8.50 7.21<br />

4.50 4.05 3.81<br />

10.10 8.61 8.31<br />

Freight market trends in February-April 2009,<br />

as indicated by average daily T/C rates (in USD per day),<br />

reported on specific trading routes:<br />

Cape (170,000 dwt)<br />

II`09 III`09 IV`09<br />

Atlantic round voyages 30700 23900 19200<br />

Continent – Far East 50200 38500 32800<br />

Far East – Continent 15600 11500 9300<br />

Pacific round voyages 33200 20600 17700<br />

Panamax (74,000 dwt)<br />

Atlantic round voyages 12100 17100 10900<br />

Continent – Far East 17800 23400 18700<br />

Far East – Continent 5000 8400 5400<br />

Pacific round voyages 7700 11000 9500<br />

Handymax (45,000 dwt)<br />

Atlantic round voyages 17300 26500 21300<br />

Continent – Far East 17800 27300 23200<br />

Far East – Continent 5500 6300 6100<br />

Pacific round voyages 6600 8400 7500


Tanker Market Report,<br />

March-April 2009<br />

VLCC:<br />

March proved to be another disappointing month. The MEG<br />

rates to Western destinations came crushing down from WS 37.5 to<br />

the WS 24 level, in fact even a single fixture done at WS 22.5 was<br />

reported during the last week of the month. At the same time rates<br />

to the Far East dropped from WS 48.5 to WS 35. The same story<br />

happened in West Africa, where rates to USG fell from WS 55 to<br />

WS 47.5.<br />

In April the MEG market fluctuated between ‘low’ and ‘very<br />

low’ levels. Rates to the West fell from WS 24 to a low of around WS<br />

20, reported prior to the Easter Holidays. This was followed by a<br />

recovery to a high of WS 25. Rates to Eastern destinations followed<br />

the same pattern – a fall from WS 35 to WS 25 was followed by a<br />

rise back to WS 35. In West Africa/West trade the rates fluctuated<br />

– dropped from WS 47.5 to WS 42.5, climbed to a monthly high of<br />

WS 50 and finally fell to slightly above WS 40.<br />

Average monthly freight rates (in Worldscale points),<br />

April 2007 and 2008, February-April 2009:<br />

VLCC<br />

IV’07 IV’08 II’09 III’09 IV’09<br />

Middle East Gulf – West 54 90 36 33 23<br />

Middle East Gulf – Japan 68 128 45 40 31<br />

Suezmax<br />

West Africa – US Gulf 129 193 73 82 54<br />

Aframax<br />

North Africa –<br />

European Mediterranean<br />

157 269 85 73 61<br />

cross UK-Continent 144 202 79 78 70<br />

SUEZMAX:<br />

The beginning of March brought a brief moment of optimism,<br />

with West African rates rising from WS 70 to WS 95. However, it<br />

did not last for long – during the second week dropping activity<br />

caused a steep dive to only WS 55 and this level was there to stay<br />

for the rest of the month. In the Mediterranean and Black Seas the<br />

rise to WS 95 was followed by a drop to WS 62.5.<br />

In April the West Africa to USG rates remained relatively stable,<br />

fluctuating between a low of WS 50 and a high of WS 55, depending<br />

on the level of activity. The Mediterranean and Black Sea<br />

markets mostly hovered around the WS 60 point; however, during<br />

the last week of the month tonnage thinned out and consequently<br />

rates reached WS 75 and WS 72.5, respectively.<br />

AFRAMAX:<br />

<strong>Baltic</strong> Dry Index 2007, 2008 and 2009<br />

Maritime<br />

In March rates paid for 80,000 mt sized ‘cross UKC’ cargoes as<br />

well as for parcels 100,000 mt from the <strong>Baltic</strong> (mostly Primorsk) to<br />

UKC generally fluctuated within the WS 75/80 range; however, the<br />

last days of the month brought a rise to WS 100 in trades ex <strong>Baltic</strong>.<br />

In the Mediterranean and Black Seas an abundance of tonnage<br />

caused a gradual deterioration of rates, which fell from WS 80/85<br />

to WS 57.5/65 by the end of the month.<br />

April was a far cry from what the owners expected to see. The<br />

beginning of the month brought about WS 80/85 in <strong>Baltic</strong>/UKC<br />

trade and this proved to be a monthly high. This was followed by<br />

numerous fluctuations, however, basically with a downward trend<br />

and finally a disastrous WS 50 during the last week. The ‘cross<br />

UKC’ market basically oscillated between WS 65/80, with WS 65<br />

being paid during the last days of the month. In the Mediterranean<br />

rates fluctuated between WS 55 and WS 67.5, with about a five<br />

point premium being paid for the Black Sea. An increase in activity<br />

during the last week pushed the market up to WS 70 and WS 75,<br />

respectively.<br />

80,000 tonnes dirty (Aframax) 2007, 2008 and 2009<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


Overland<br />

Rail transport networks in the BSR<br />

Strategies for the future<br />

There are, to date, no trains directly linking the<br />

following cities: Warsaw, Vilnius (or Kaunas),<br />

Riga and Tallinn. The absence of north-south<br />

infrastructure is determinant here. This lack of<br />

connectivity between the Polish and <strong>Baltic</strong> capitals<br />

is still probably the most serious bottleneck<br />

for the complete integration of the <strong>Baltic</strong> Sea region.<br />

However, in this particular case, bus services<br />

as well as air connections act as a substitute<br />

to the relative weakness of the rail system.<br />

Interestingly, although Tallinn, Riga and Vilnius are barely connected<br />

to each other, they all have direct connections to St. Petersburg, even<br />

if the frequency of the routes is rather low (6 weekly direct trains<br />

each). In this regard, Minsk appears to be central here in acting as<br />

the hub for connections between North West Russia, Kaliningrad<br />

and <strong>Poland</strong> in addition to Belarus itself. Indeed, Minsk not only has<br />

direct rail connections to Warsaw, Vilnius, Kaliningrad and Warsaw, but is<br />

also a necessary way-station for mobility between these cities.<br />

Gaps, gauges and bottlenecks<br />

The most emblematic, and probably the most problematic challenge<br />

in this regard corresponds to the lack of inter-operability of the various<br />

national railway networks. Differing technical solutions and the varying<br />

degree of modernity are limiting factors for enhancing mobility of persons<br />

and goods across the border, and especially on the eastern shore of<br />

the <strong>Baltic</strong> Sea, from <strong>Poland</strong> to North-West Russia.<br />

As for the differing technical solutions, the main challenges remain<br />

the differences in gauges between the Russian (1,520 mm) and European<br />

(1,435 mm) systems. Besides Russia, Belarus and the <strong>Baltic</strong> States<br />

have adopted the Russian gauge, due to their former belonging to the<br />

Soviet Union. Finland also has the Russian gauge system. In <strong>Poland</strong> and<br />

Kaliningrad, both systems can be found. Consequently, these territories<br />

have become central interfaces for enabling the integration of both railway<br />

systems on the eastern shore of the BSR.<br />

The integration of the eastern BSR railway networks bears importance<br />

on two main levels: first, to connect the main metropolitan areas (Warsaw,<br />

Vilnius, Kaunas, Riga, Tallinn and St. Petersburg) and second, to act as an<br />

interface between ‘continental Europe’ and Russia.<br />

The lack of North-South linkages in the eastern BSR can be seen as<br />

mainly due to the historical heritage of the region and the power play<br />

within the former Soviet Union: East-West linkages, connecting each Soviet<br />

republic to the central powerhouse of Moscow, were developed and<br />

inter-regional linkages very consciously avoided. On the eastern shore of<br />

the BSR, this results in a persisting lack of reliable, modern infrastructure,<br />

for instance double and electrified tracks, connecting the main cities.<br />

These ‘missing links’ are well highlighted by visualising the frequency<br />

of transnational (i.e. crossing a national border) rail services between<br />

the BSR’s main metropolitan areas (Figure 1). Indeed, the figure clearly<br />

shows the still poor level of connectivity of the main metropolitan areas<br />

on the eastern shore of the <strong>Baltic</strong> Sea, i.e. between <strong>Poland</strong>, the <strong>Baltic</strong><br />

States, Western Russia and Belarus.<br />

| <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

Figure 1: Route frequency on main cross-border rail connections<br />

in 2008 (weekly)<br />

Source: Deutsche Bahn (2008), RRG Spatia<br />

Table 1 provides further indications on the implications of the poor<br />

connectivity of the rail system on the Eastern shore of the BSR by assessing<br />

the time it takes to travel between these cities. To date, travelling<br />

from Warsaw to Tallinn takes more than 40 hours and 6 changes to complete<br />

the journey. The main problem related to rail infrastructure is witnessed<br />

between <strong>Poland</strong>, Lithuania, Latvia and Estonia. For the journeys<br />

between capital regions, bus connections are often faster as, for instance,<br />

between Warsaw and Vilnius. There is still, to date, no train connection<br />

between Tallinn and Riga. In an earlier report commissioned by VASAB<br />

(Nordregio et al., 2000), it was already stated that no train connection<br />

was available between these two cities in 1999: nearly a decade after, the<br />

situation is still the same.<br />

The hub-by-nature of the BSR<br />

The second main dimension concerning the necessary integration of the<br />

railway networks on the eastern shore of the BSR lies in its trans-continental<br />

nature. Indeed, the geographical position of the BSR reveals its role as a potential<br />

‘natural’ hub, acting as an interface between Europe and Asia. In this<br />

regard, St. Petersburg is a key hub, as it enables to connect the BSR with the<br />

greater Russian railway system and, due to the immensity of the country, to<br />

countries in Central and Far-East Asia. This trans-continental potential is<br />

even enhanced by the importance of the Tallinn-St. Petersburg railway corridor,<br />

to date the busiest section for freight transportation in Europe.<br />

In addition to this, the importance of Warsaw as a hub between the<br />

BSR railway system and the ‘continental European’ one (see Figure 1), not


only because of its relative territorial location in the BSR, but also because<br />

it is connected to both gauge standards, reinforces the support to a necessary<br />

upgrading of the networks between Warsaw and St. Petersburg in<br />

order to enable the blooming of such trans-continental linkages.<br />

Integration is a must<br />

The further integration of the railway systems on the eastern shore of<br />

the BSR has repercussions not only for the capacity to integrate further its<br />

regional economies and labour markets, but also on the capacity of the<br />

BSR to act as a global player, an interface region between Europe and Asia.<br />

Yet, the persistence of structural deficiencies endangers the achievement<br />

of this potential. In that light, the completion of the TEN-T Rail <strong>Baltic</strong>a<br />

project, running from Warsaw to Tallinn, needs to be regarded as a high<br />

priority project by the European Commission and the governments of the<br />

BSR countries.<br />

Furthermore, it becomes clear that the completion of Rail <strong>Baltic</strong>a<br />

should be connected to future plans for upgrading the Tallinn-St. Petersburg<br />

section of the network, which would ensure a good connection between<br />

the TEN-T and Russian networks. Yet, more than an upgrade, it is<br />

in fact a complete renewal of the section in the European standard (1,435<br />

mm) instead of the current Russian one (1,535 mm) that would only ensure<br />

the integration of Russia within the predominantly EU/EEA BSR<br />

region. The Tallinn-St. Petersburg connection is not only of vital importance<br />

for the future spatial integration of the BSR, as it enables to connect<br />

western parts of Russia to the north-eastern members of the EU, but it is a<br />

key corridor for the transportation of goods from Central Asian markets<br />

to Western European markets (Germany, France, Benelux), and offers an<br />

efficient bypass from the crossing of Ukraine and Belarus.<br />

The geographical location of the BSR, with Russia and Asia to the<br />

East, and the Arctic region to the North, clearly demonstrates its strategic<br />

position for Europe. Consequently, the integration of transport systems<br />

within the BSR has a clear ‘EU added-value’ as it will enhance the capacity<br />

of the macro-region to act as a hub for Europe in a trans-continental perspective.<br />

It is, to my mind, clearly the reason why the European Commission<br />

is currently developing a specific strategy for the <strong>Baltic</strong> Sea Region. It<br />

is unprecedented, as it is the first time that the EU Commission elaborates<br />

a strategy and action plan for a macro-region.<br />

Yet, the strong focus on the BSR as a potential interface between the<br />

EU and its eastern and northern neighbourhoods should not overshadow<br />

the fact that the macro-region is very diverse with an increasing divide<br />

Table 1: Shortest travel times between main cities on the eastern shore of the BSR<br />

Shortest travel time between main<br />

BSR cities in Hours:Minutes (Number<br />

of train changes or Bus connection)<br />

From<br />

Warsaw<br />

8:38 (3)<br />

9:16 (0)<br />

Overland<br />

in the levels of development between the metropolitan areas and more<br />

peripheral parts. Yet, so far, transport strategies in the BSR are essentially<br />

elaborated for connecting the metropolitan areas between them. More<br />

territorially differentiated strategies adapted to the needs of the different<br />

territories that constitute the BSR are urgently needed.<br />

What needs to be done?<br />

The integration of the transport networks of the countries around the<br />

<strong>Baltic</strong> Sea has been perceived, since the emergence of the macro-region<br />

in the beginning of 1990s, as a necessary precondition for improving the<br />

integration between its regional and national economies. Consequently, it<br />

is not surprising that the theme of transport integration has been central<br />

to the work of the Visions and Strategies Around the <strong>Baltic</strong> Sea (VASAB)<br />

organisation, since the adoption of its first ‘vision’ in 1992 (the so-called<br />

“Tallinn Report”).<br />

In an increasingly globalized world economy, the positioning of regional<br />

economies in this ‘space of flows’, as conceptualised by Castells,<br />

ought to be a central concern for national and regional policymakers. The<br />

need for a complementary approach synergizing the development of tangible<br />

(transport networks) and virtual (information and communication<br />

technologies) communication means is blatant.<br />

In that regard, the Gdansk Declaration, the latest document adopted by<br />

VASAB, acknowledges the need for better ‘global positioning’ of the BSR by<br />

stressing the importance of EU policies with regards to accessibility issues.<br />

Improved accessibility is seen as an important part of the Community Cohesion<br />

Policy, and the planned investments in the Trans-European <strong>Transport</strong><br />

Network (TEN-T and TINA) are seen as crucial for improving the connectivity<br />

of the BSR to the rest of the European continent. The development of<br />

the Transnational European Networks represents a key part of the EU’s strategy<br />

to achieve an integrated internal market, and is as well a key platform for<br />

integrating the EU and Russia.<br />

Alexandre Dubois<br />

Research Fellow, Nordregio<br />

alexandre.dubois@nordregio.se<br />

The author would like to thank Carsten Schürmann (RRG Spatial Planning)<br />

and José Sterling (Nordregio) for their support in the compilation of the empirical<br />

data presented in this article.<br />

Minsk Vilnius Kaliningrad Riga Tallinn<br />

9:00 (Bus)<br />

9:26 (2)<br />

TO<br />

8:04 (1) 13:20 (Bus)<br />

24:31 (4)<br />

24:32 (3)<br />

17:00 (Bus)<br />

40:36 (6)<br />

41:18 (2)<br />

St.<br />

Petersburg<br />

22:27 (4)<br />

28:32 (0)<br />

Minsk<br />

4:30(0) 11:03 (0) 14:57 (2) 29:31 (1) 13:33 (1)<br />

13:52 (0)<br />

Vilnius<br />

6:15 (0) 4:20 (Bus)<br />

14:49 (1)<br />

34:26 (2)<br />

9:30 (Bus)<br />

13:08 (0)<br />

Kaliningrad<br />

22:14 (2) 14:10 (Bus)<br />

41:20 (2)<br />

20:33 (1)<br />

25:21 (0)<br />

Riga<br />

4:25 (Bus)<br />

No train route<br />

12:20 (0)<br />

14:20 (Bus)<br />

Tallinn<br />

St. Petersburg<br />

8:02 (0)<br />

8:00 (Bus)<br />

Source: Deutsche Bahn (2008), RRG Spatial Planning Database, Eurolines (2008).<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


Overland<br />

TransRussia impressions and more<br />

On standby mode<br />

The business environment in Russia is not very friendly for private<br />

forwarders and operators. Together with the pressure of competition,<br />

they suffer from shrinkage of the freight market and a lack<br />

of bank loans.<br />

Lower demand has made the activity<br />

of the operator companies<br />

troublesome. Some of them have<br />

already exited the market. Others<br />

have developed lower price programs<br />

practically for all sorts of<br />

cargoes. One company reported discounts for<br />

the transportation of metal by 10%, coal 5%<br />

and ore – up to 10%.<br />

The market is changing deeply<br />

The privately owned container fleet is<br />

mostly idle because of the shortage of domestic<br />

freight and the obligation to pay<br />

for storage at the same time. Moreover, a<br />

lack of domestic freight has eliminated the<br />

| <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

possibility of cheap relocation of containers<br />

(in loaded transportation) to the Far<br />

East, where they could pick up commercial<br />

freight. Such a situation has disturbed many<br />

business plans which had been working for<br />

years.<br />

Representatives of leasing companies<br />

also report that they are in a difficult situation.<br />

Mass return of the leased rolling<br />

stock because of the competitive prices of<br />

new cars can have a serious impact on the<br />

railcar leasing market (however, it depends<br />

on the provisions of the leasing contract).<br />

Finance leasing companies are really confronted<br />

with the return of the rolling stock.<br />

The banks crediting these leasing contracts<br />

are also in a bad position – the same<br />

wagons of doubtful liquidity are the pledge<br />

of the credit.<br />

According to the official statistics, since<br />

August 2008, the prices of new railcars have<br />

been reduced by 15-20%, but at the same<br />

time, the demand for the railcars has fallen<br />

because of lower traffic. Over 55,600 railcars<br />

have been purchased in 2008, and plans for<br />

2009 include only 9,600 units. As a result,<br />

production of the railcars has also fallen: until<br />

the end of 2008, the car-building industry in<br />

the CIS countries had a total output of 30,000<br />

cars instead of 70,000 as before. Considering<br />

the very high rate of fleet ageing, this can lead<br />

to a significant decrease in the available fleet<br />

in the future, to 670,000 units by 2015.<br />

Demotivated business environment?<br />

Already in 1977, when I participated in an<br />

international transport event as an exhibitor<br />

for the first time, it became clear to me that<br />

the behaviour and reactions of the visitors


was an actual evaluation of the situation in<br />

the industry. The latest experience, TransRussia<br />

2009 (April 21-24 in Moscow), gave<br />

more proof of that. As compared to its previous<br />

exhibitions, the event had good statistics:<br />

over 500 exhibitors from 33 countries,<br />

including large rail networks and ports,<br />

forwarders and logistic service providers,<br />

as well as over 20 000 visitors.<br />

As usual, there were visitors walking between<br />

stands and watching the bright colours<br />

of two-storey stands, the large spaces<br />

of national companies and so on. However,<br />

many of them demonstrated an unusual relaxation<br />

and lack of specific transportation<br />

inquiries. Mrs. Svetlana Minosyants, Rail<br />

Service General Director, says, “They are<br />

asking about possible carriage of specific<br />

shipments; however, there is a feeling that<br />

they are obliged to ask something but have<br />

no real business interest for a while yet. It is<br />

a matter to think about. We have felt it for<br />

the past months, and the TransRussia event<br />

has already confirmed that many potential<br />

consignors are on ‘standby mode’. They<br />

have adapted their business to the current<br />

situation and hope for good prospects.”<br />

Over half of the exhibitors were from<br />

foreign countries, but this was not accidental.<br />

It is evidence of the interest in the<br />

Photo: Kühne+Nagel<br />

Russian freight market and of a wish to compete<br />

for vacant and profitable market niches.<br />

The experts do not have one general<br />

opinion about the status quo of the freight<br />

market. Part of them considers it as a time<br />

of coming out of the recession, others expect<br />

the autumn to be the worst time for<br />

transportation services. Nevertheless, the<br />

crisis will not last forever, and the current<br />

Overland<br />

breathing space must be used to prepare for<br />

future challenges. Intermediate companies<br />

concerned with various aspects of forwarding<br />

and logistic services have become an<br />

integral part of the transport environment<br />

in Russia, and they must be smart enough<br />

to survive.<br />

Vladimir Chernyshev<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


Overland<br />

Soft measures for more sustainable road transport<br />

Eco-driving<br />

Fuel consumption and thus green house gas emissions of road<br />

transport are constantly increasing. The concept of fuel consumption<br />

reduction by means of applying an economical driving<br />

style (so called eco-driving) represents an effective and low-cost<br />

way for partial reduction of fuel consumption and CO 2 emissions<br />

with immediate possible effects.<br />

One of the factors affecting fuel<br />

consumption, apart from the<br />

vehicle’s technical characteristics<br />

and load, etc., is the<br />

driving style. Acceleration,<br />

driving speed, gear shifting<br />

etc., are characteristics of the driving style,<br />

which have an important impact on the volume<br />

of fuel consumption. The results of the RECO-<br />

DRIVE project have proven that with appropriate<br />

eco-driving techniques fuel consumption in<br />

the field of road transport can be reduced up to<br />

10%. The drivers can learn the eco-driving style<br />

with appropriate driver training within one day.<br />

However, it may be stated that in general the<br />

fuel consumption is reduced for a short time<br />

period succeeding the driver training whereas<br />

in the long run, fuel consumption renders to its<br />

previous level if the appropriate stimulation and<br />

consumption control is not applied. In order to<br />

achieve a sustainable reduction in fuel consumption<br />

broader measures should be introduced. The<br />

key to achieving a sustainable reduction of fuel<br />

consumption is the employee’s motivation to behave<br />

in a energy efficient way – for drivers that<br />

means driving according to eco-driving principles,<br />

for maintenance staff keeping the appropriate<br />

maintenance standards, for procurement<br />

understanding a company’s requirements and for<br />

management applying energy saving measures<br />

throughout the company’s operations.<br />

Motivation for a start<br />

The above mentioned problem is dealt with<br />

in Intelligent Energy Europe’s project RECO-<br />

DRIVE – “Rewarding and Recognition Schemes<br />

for Energy COnserving DRIving, VEhicle procurement<br />

and maintenance”. The project undertakes<br />

some of the EU objectives and targets,<br />

starting with the promotion of sustainable fleet<br />

management, and aims at merging existing ecodriving<br />

initiatives with progressive fleet management<br />

and logistics optimization practice to<br />

ensure continuity of the effects of fuel saving<br />

measures. The project RECODRIVE focuses on<br />

0 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

all processes comprising a human component<br />

with special focus on recognition and reward<br />

schemes for drivers, maintenance and procurement<br />

staff. The key to keeping fuel consumption<br />

as low as possible, within the existing vehicle<br />

fleet, is to provide the drivers and other fleet<br />

management staff with training, insight and<br />

motivation. The staff must be motivated for constantly<br />

keeping low fuel consumption in mind.<br />

In contrast to many other eco-driving projects,<br />

RECODRIVE offers a strategy for training and<br />

keeping up the motivation for low vehicle fuel<br />

consumption over a longer period.<br />

One of the most important aims of the RE-<br />

CODRIVE project is the implementation of fuel<br />

saving measures, recognition and rewarding<br />

schemes for drivers and the entire fleet management<br />

into various transport companies acting<br />

as demonstrators in the project. The successful<br />

implementation and manifestation of efficiency<br />

of measures undertaken is the driving force for<br />

further diffusion of RECODRIVE initiative into<br />

general practice.<br />

It is important to stress that companies<br />

introducing the eco-driving schemes, should<br />

carefully plan the following basic implementation<br />

steps, shown in Figure 1.<br />

Based on an analysis of the current situation<br />

in a company, eco-driving goals and<br />

EMPLOYEES<br />

Individual/Team<br />

Goal setting<br />

Situation<br />

analysis<br />

Training<br />

Goal setting<br />

implementation methods should be set. It is<br />

very important to stress that the control mechanisms<br />

and rewarding/recognition schemes are<br />

to be explained to the drivers before the ecodriving<br />

training is performed and implemented<br />

immediately after it. We should keep in mind<br />

that the drivers (besides the appropriate vehicle’s<br />

maintenance and adequate fleet management)<br />

have the greatest impact on fuel consumption<br />

savings. One must always remember that even<br />

the best drivers can improve their driving techniques<br />

and reduce their fuel consumption.<br />

The Slovenian example<br />

In Slovenia, the RECODRIVE eco-driving<br />

concept was practically tested in the following<br />

companies: “Viator&Vektor” – freight transport,<br />

waste management and transport company<br />

“Snaga” and municipal utility transport<br />

company “JKP Radlje”. Waste collection vehicles<br />

(and urban busses) have special different driving<br />

characteristics – they need to stop and start<br />

frequently. Therefore, the eco-driving technique<br />

can have an important impact on fuel consumption.<br />

On the other hand, the need to idle while<br />

the waste is being loaded (the vehicle’s engine<br />

supplies the power needed to operate the refuse<br />

loading system) can abate the positive effects of<br />

eco-driving on fuel savings. The impact of driving<br />

style on fuel consumption is, surprisingly or<br />

not, more significant in long distance haulage.<br />

The drivers taking part in eco-driving trainings<br />

were chosen on basis of their abilities to<br />

adopt new knowledge and to disseminate positive<br />

experiences to their fellow drivers. Drivers<br />

in each company were trained during the period<br />

from November 2008 to January 2009.<br />

Performance<br />

management<br />

Planning and<br />

Implementation<br />

Recognition and<br />

Rewarding<br />

Measuring<br />

Analysis


Table 1: Reductions of fuel consumption achieved by vehicle<br />

Company Vehicle Monitoring period<br />

Viator&Vektor<br />

(long distance freight transport)<br />

Snaga<br />

(waste collection and transport)<br />

JKP Radlje<br />

(municipal utility fleet)<br />

As shown in Table 1, there are several levels<br />

of the achieved fuel consumption reduction<br />

in practice. For example, freight transport<br />

operator “Viator&Vektor” has achieved<br />

on average a 4,52% reduction of fuel consumption.<br />

Fuel savings were also achieved in<br />

waste management/transport company Snaga.<br />

The results show that even in waste transport<br />

with specific characteristics fuel savings are<br />

achievable. “Snaga” has achieved an average<br />

4,2% reduction of fuel consumption. Similar<br />

results were achieved in “JKP Radlje” – on average<br />

a 5,0% reduction of fuel consumption.<br />

Noticeably higher fuel savings in litres in<br />

the freight transport operator in comparison<br />

to the waste management/transport operator<br />

Percentage of<br />

reduction<br />

Iveco Stralis 6 months -3,42% 855 l<br />

Iveco Stralis 6 months -5,53% 1.317 l<br />

Renault Magnum 6 months -4,62% 1.071 l<br />

Mercedes-Benz SKII 3 months -7.02% 330 l<br />

Mercedes-Benz Actros 3 months -1,40% 83 l<br />

MAN TGA 5 months -6,83% 455 l<br />

Mercedes-Benz Actros 5 months -3,22% 254 l<br />

or municipal utility company derives from<br />

the average distance travelled. Vehicles in<br />

long haul operations perform averagely more<br />

kilometres per months than vehicles in waste<br />

collection of municipal service.<br />

The results achieved in the practice have<br />

proven that soft measures in the field of ecodriving<br />

can, to a certain extent, reduce the<br />

average fuel consumption (pollution). Immediate<br />

results of introduced measures are<br />

therefore possible. Costs of introduction of<br />

measures are relatively low. The fundamental<br />

problem is the appropriate solution for ensuring<br />

the consistency of use of eco-driving techniques<br />

over longer period of time in practice.<br />

Recognition and rewarding schemes, based<br />

Overland<br />

Fuel savings in the<br />

monitoring period<br />

on achieved fuel savings, are most probably<br />

the right solution for the drivers and fleet<br />

managers.<br />

Stane Božičnik<br />

Katja Hanžič<br />

University of Maribor<br />

Faculty of Civil Engineering<br />

For more information, please visit<br />

www.recodrive.eu.<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 1


Veterans to the <strong>Baltic</strong><br />

It is rather news than a memory. The Polish branch of the Belgian<br />

company Megamar has bought a piece of British maritime heritage – the<br />

pilot vessel Bembridge built in 1938. Now a veteran of the Trinity House is<br />

lying on the slip in a small Szczecin shipyard and from autumn will serve<br />

as an office for the new owners. They have the ambition to restore her,<br />

except the engine room, to the original – depicted – appearance from her<br />

youth. She is also a “cousin” of the former Trinity House tender Patricia<br />

– now a floating restaurant in Stockholm. Both ships were built by the<br />

famous Smith’s Dock in Middlesbrough.<br />

Flying from a beach (2)<br />

The postcard from the small fishing town and beach resort Leba shows<br />

another forgotten attraction of a summer in the 1930s – it was a place of one<br />

of the best glider schools in Germany. Planes took off from the hillside of the<br />

highest sand dune situated 600 metres from the shore. To make the higher<br />

altitude pilots used a so-called “air wave” created by the north and northwesterly<br />

winds over a range of 40-metre dunes along the coast. The best<br />

could fly up to 18 hours at a height of only 100 metres over their tops!<br />

Photo: Marcin Błuś collection<br />

A forerunner<br />

A missing link in the north-south ferry connections in the <strong>Baltic</strong><br />

has been discovered by Finnlines. Since 1 June their white-blue giant<br />

ro-paxes offer three sailings per week between Helsinki and Gdynia.<br />

Let us remind of the forerunner of the service – the ferry Gryf, then in<br />

colours of the POL. The postcard from 1973 depicts her first departure<br />

from Gdańsk to Helsinki – the notice on the side and fore and aft full<br />

dress are the evidence.<br />

Photo: Zygmunt Grabowiecki<br />

Photo: Tomasz Roliński Photo: Tomasz Roliński<br />

Photo: Marcin Błuś collection<br />

Only child<br />

What joins a unique engine K class from Warsaw with the sea and<br />

shipping? The link is very delicate, but it exists. The vehicle was built in<br />

1939 in Gdańsk as a tram for the Polish capital. In the 1980s it was converted<br />

to a switching engine but its producer – Danziger Waggonfabrik<br />

– was converted earlier, in the 1950s, to a shipyard called Northern, now a<br />

member of the Remontowa Group.<br />

Maersk vessels…<br />

<strong>Transport</strong> miscellany<br />

…in miniature decorate the walls in the company’s headquarters<br />

in Copenhagen. Our presentations usually serve as reminiscences or<br />

benchmarks. In the case of Maersk’s model, it plays both roles – the<br />

editor of the column remembers displays in the POL office in Gdynia<br />

full of their deepsea liners… they are gone forever. But a benchmark<br />

for surviving shipping companies and their agencies is still valid: if<br />

you have only one shop window, please, show a model, and if you have<br />

no window, follow Maersk’s initiative.<br />

3/2009 | <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> |


Who’s who<br />

NTB: New Manager for a New Direction<br />

Air Berlin’s New Executive<br />

| <strong>Baltic</strong> <strong>Transport</strong> <strong>Journal</strong> | 3/2009<br />

North Sea Terminal Bremerhaven has chosen Jan Gelderland as their new Managing Director. He takes<br />

over from Gerhard Wahlers who has been with the company from its very inception in 1998.<br />

With plenty of managerial experience, Gelderland is a well-known figure in the container industry. Before<br />

moving to NTB he was head of the Business Development department at Hutchison Port Holdings. Earlier,<br />

he was for several years involved with the Europe Container Terminal in Rotterdam, where he held, among<br />

others, a position of Chief Operations Officer. In the early 1990s he worked for the American shipping line<br />

Sea-Land Service whose European operations he supervised.<br />

During the 11 years at the helm of NTB Gerhard Wahlers played a major role in helping the operator to<br />

establish its current position. NTB’s shareholders and the Management Board are said to have made a joint<br />

decision to replace Wahlers with Gelderland, confident that, in the words of chairman Emanuel Schiffer,<br />

“the time has now come for a change.” The chairman also stressed that the company is grateful to Gerhard<br />

Wahlers for his years of dedication and expressed hope that, despite the hard times ahead, Jan Gelderland<br />

will prove a “worthy successor” to the retiring director. 1 May 2009 marks the official management change<br />

in the Bremerhaven terminal.<br />

No. 2 Named No.1 at Finnair Finance<br />

Maunu Visuri was appointed head of Finnair Aircraft Finance, the body within the Finnair Group responsible<br />

for the commercial and legal side of Finnair’s aircraft ownership. He stepped in for the retiring director<br />

Colin Molloy and took over the department on May 1.<br />

Visuri began his career at Finnair in 1997 as an engineer in the company’s Technical Services – as he admits<br />

himself, although his new duties are far from his original line of work, he finds his engineering experience “still<br />

of great use” to him. After a period as fleet manager, he most recently held the position of FAF Deputy Managing<br />

Director under Molloy, starting from 2006 and lasting until the latter’s retirement at the end of April 2009.<br />

As the department’s director he is now in charge of all aircraft trade and lease contracts, as well as long-term<br />

fleet planning for Finland’s largest air carrier.<br />

Hapag-Lloyd: Between <strong>Poland</strong> and Hamburg<br />

Global reorganization at the container shipping line Hapag-Lloyd brings changes to the power structure<br />

of its Polish branch. Starting from 1 June 2009, Mark Wottke moves from the post of its Managing Director<br />

to the company’s headquarters in Hamburg to become Senior Director at the Global Account Management<br />

department.<br />

Following Wottke’s departure Alina Angielczyk, who has until now served as the local Sales Director, gets<br />

elevated to take over as head of the company’s Polish office. She will now report directly to Leo Vapalahti, the<br />

Helsinki based Area Manager Finland & <strong>Poland</strong> for Hapag-Lloyd AG.<br />

Air Berlin’s Board of Executive Directors has named its newest member – Christoph Debus, a 38-year old<br />

aviation expert, is set to assume a seat on the board on 1 June 2009. Debus is to be in charge of the company’s<br />

sales, network and IT.<br />

Before joining Air Berlin, Debus was for four years the Managing Director at the Condor airline, and concurrently<br />

a member of the Airline Executive Board of Thomas Cook Group. Prior to that, he was a partner at Roland<br />

Berger Management Consultants, where his responsibilities included areas such as aviation, tourism and<br />

the car industry. Debus holds a degree in industrial engineering from TU Darmstadt and the École Centrale<br />

de Lyon.<br />

Adam Olesiejuk


www.mainport-hamburg.de<br />

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