BTJ 3/2008 - Baltic Transport Journal

Baltic Transport 1733-6732
Journal ISSN
№ 3/2008 (23), MAY/JUNE
b i m o n t h l y - d a i l y c o m p a n i o n
€ 15/50 PLN (VAT 0%)
Focus:
Ro-ro traffic on the Baltic
Abu Dhabi makes a strong pitch for European shipping companies
Khalifa: state-of-the-art import gateway
Special report:
Seaport equipment & facilities

BTJ calendar of partnership events 2008/2009 ........................................................... 8
What’s new ............................................................................................................................... 10
Just one question .................................................................................................................. 14
Big country, promising market .......................................................................................... 16
TransRussia 2008
No traffic flow reorientation............................................................................................... 17
A new policy for the European seaports
The return of the city ............................................................................................................ 18
Vuosaari project in its final stage
Grimaldi calls for equal market conditions ................................................................... 20
Successful in Europe, a Naples-based company feels not fairly treated at home
Khalifa: state-of-the-art import gateway ....................................................................... 22
Abu Dhabi makes a strong pitch for European shipping companies
Report: Seaport equipment and facilities .................................................. 25
Baltic Ports Organization newsletter .......................................................... 41
Focus: Ro-ro traffic on the Baltic.................................................................. 45
An extra 100,000 TEU for Gdynia and Kotka ................................................................. 49
The Baltic Container Outlook 2008
To those, who are not yet convinced .............................................................................. 50
Towards a Destination Gdynia project
Face to face with giants ........................................................................................................ 53
Hamburg: a port as a tourist attraction
The dry freight and tanker market ................................................................................... 56
The low cost service is the model of the future .......................................................... 58
An interview with John M. Kohlsaat, General Manager Commercial, easyJet
State monopoly and its aftermath .................................................................................. 60
Private carriers on fight for rail cargo in Poland
Name yet unknown ............................................................................................................... 61
Swedish and Danish post offices plan merger
Anz_BTJ_2008_PG 07.05.2008 14:35 Uhr Seite 1
Transport miscellany ............................................................................................................. 62
S-XXL Container
chassis
In all sizes – for all sizes. Europe-wide over 4.000 container chassis. Rental,
service and insurance, fleet management and sale & rent back, trading
and finance.
+ 49 40 - 37 689 732 – www.paulguenther.com
Contents
3/2008 | Baltic Transport Journal | 3

Freight that bears fruit!
To us, knowledge and cooperation are the route to financially
and environmentally sustainable transportation. Together we
harvest the fruits of our collective labours. We are right where
we are needed – close to the market, close to you. Choose the
Ports of Stockholm to improve the flow of your transportation.
Ports of Stockholm Container Terminal – For great flow!

www.stoports.com
www.hurra.se

Editorial
Baltic Transport
Journal
Editor-in-Chief
DARIUSZ SZRETER
dariusz.szreter@baltictransportjournal.com
Contributing Writers
and Update Correspondents
ALISON NISSEN, MAREK BŁUŚ, MICHAŁ GOMERSKI, MA-
CIEJ KONOPIŃSKI, KUBA ŁOGINOW, MIKE ELSOM, OLGA
ANISZCZUK, BARBARA ROGALSKA,
ALEKSANDRA WIŚNIEWSKA, ERNEST CZERMAŃSKI, MANIK
METHA, PER OLAF BRETT,
PAWEŁ RYDZYŃSKI, NICOLA CAPUZZO,
ARNOUD SERRY, PIOTR B. STAREŃCZAK
English Language Editors
ALISON NISSEN, KRYSTIAN BENNICH
KRZYSZTOF WIERZBA
Design and DTP
MEDON
Art Director
DANUTA SAWICKA-ROMANOWSKA
Graphic Designer
MONIKA RÓŻYCKA
Publisher
BALTIC PRESS SP. Z O.O.
Chairman
DOROTA SOBIENIECKA
dorota@baltictransportjournal.com
Address: 8 Pułaskiego Street
81-368 Gdynia, Poland
office@baltictransportjournal.com
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fax +48 58 621 69 66
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Print
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6 | Baltic Transport Journal | 3/2008
Dear Readers,
Are sea-ports over-invested? Per Olaf Brett put such a thesis forward in the last issue of
BTJ provoking varied and emotional reactions among our readers. Naturally, issues
like these will be viewed differently depending on who voices an opinion. One thing
is beyond a doubt, however, irrespective of whether or not we consider part of the investments
as being too big – over the last years ports have lived through a period of
unprecedented prosperity. This translates into a growing need for seaport equipment and facilities. In
our special report we have presented some of the offers from a sumptuous catalogue of manufacturers.
Even though the Baltic market constitutes a fragment of all their clients, many interesting investments
are being launched here.
One of them is the new port of Vuosaari in Helsinki, which has been heralded for a long time now.
Interestingly, this giant investment, which is to be ready in the fall of this year, was initiated not so
much to increase the volume but rather on account of the city and its inhabitants. The object was not
to make the port’s operations tedious for the surrounding inhabitants. This illustrates a very peculiar
way of thinking about transport and its role in everyday life. We, the dwellers of the Baltic Sea Region,
should be proud of such an attitude.
When talking about new investments in this issue of the BTJ, we offer you a trip to Abu Dhabi
– a region in the Middle East – where a very modern port and a business centre is underway. Investors,
while looking around for prospective trade partners, have come all the way to Northern Europe to encourage
local logistics companies to use their port as a hub for the Middle East. This is why, even though the
majority of freight forwarders are first of all thinking of trading with the Far East, it is well worth taking a
look at this offer. We also deemed it interesting to take a glance at the Mediterranean Sea where Grimaldi
Group, one of the world’s largest ro-ro fleet owners, is having a dispute with its own government over
unequal treatment and intervention on behalf of a public player on the sea transport market. Grimaldi
Group is also the majority share-holder of Finnlines on the Baltic Sea.
The influence of politics on the sea transport sector is the subject of an article by Patrick Verhoeven,
Secretary General of ESPO. It will be possible to discuss this issue in detail during the planned June expos
– TOC Europe and Posidonia – as well as during the conferences which accompany them.
As we are already on the issue of expos, bearing in mind the upcoming ROROex, we have prepared a
focus on ro-ro traffic on the Baltic Sea. Anyone interested is welcome to join us in Gothenburg. Meet us at
ROROex, 20-22 May, stand A11.
Dariusz Szreter
editor-in-chief
Company index
ABB 38; Abu Dhabi International Airport 23; Abu Dhabi Ports Company 22-23; ACE Link 45; Actia Consulting 49; Airbus 12; Alitalia 21;
Alrosa 32; Archirodon Construction 23; Atlantic Container Line 20-21; Atomstroiexport 32; Attica 46; AXS-Alphaliner 10; Baltic Scandinavia
Line 46; Baltkran 32; BCT 15; Beluga Shipping 44; Boeing 12; Bornholmstrafikken 46; Boskalis Westminster Middle East 23; Brussels
Airlines 12; Cargotec 31; Castellammare di Stabia 20; Chocolat Frey 62; CMP 15; Cobelfret 38; Color Line 46; Corus Rail 13; CTA 53; CVC
61; CVS Ferrari 29-30; Czech Railways 16; DCT Gdańsk 10, 41; Delta Shipping Lines 44; Destination Gotland 45-46; Deutsche Bahn 13, 35;
Dexter 12; DFDS 11, 35, 46; easyJet 58; Eckero Line 46; Estonian Railways 16; Eurogate 10; Euroterminal Sławków 58; Fantuzzi Reggiane
29, 33, 34; Fincantieri 20; Finnlines 6, 20-21, 45-46; Finnsteve 19; Gazprom 32; GTK 44; GE Energy 55; Gottwald 26-31, 44; Green Carrier
16; Grimaldi 6, 20-21; Helsinki-Vantaa Airport 18; HH Ferries 46; HHLA 53; Hyundai Engineering and Construction 23; ICTSI 15; IMPSA
29; Italgru 33; Kalmar 29, 31; Khalifa Port and Industrial Zone 22-23; Konecranes 29-31; Laem Chabang Container Terminal 10; Latvian
Railways 16; Liebherr 27-30, 33; LindaLine 45; Lithuanian Railways 16; LOT 12, 58; Lufthansa 12, 58; Lukoil 32; Maersk 10, 11; Malév 58;
Management Group Pomerania 42; Midland Airways 12; Minoan Lines 20-21; Mols Linien 45-46; MSC 49, 62; Multi-Link Terminals 19;
NCC 10, 32; Noell 32, 34; Nordic Jet 46; Novatug 39; Orvelin 46; Paceco 27; P&O Nedlloyd 10; PCC Rail 13; PGE 54; Polferries 46; PKP
Cargo 13, 16, 60; PKP LHS 16, 60; PKP PLK 13, 60; Port of Aabenraa 33; Port of Aarhus 44, 49; Port of Amsterdam 39; Port of Antwerp 15,
21, 39, 47; Port of Bilbao 47; Port of Dubai 22, 39; Port of Gdańsk 42, 44, 54-55, 60; Port of Gdynia 42, 46, 47, 49, 50, 60; Port of Gioia Tauro
35; Port of Göteborg 38-39, 44, 46, 49; Port of Hamburg 10, 14, 39, 44, 53; Port of Hanko 47; Port of Helsingborg 46; Port of Helsingør
46; Port of Helsinki 18-19, 35, 44, 45-46, 49; Port of Hong Kong 49; Port of Houston 39; Port of Kaliningrad 34; Port of Karlskrona 46; Port
of Kemi 46; Port of Kotka 16, 35, 46, 49; Port of Los Angeles 39; Port of Lübeck 39, 41, 46, 47; Port of Malmö 45-46; Port of Melbourne
39; Port of Mina Zayed 23; Port of Monfalcone 20; Port of Muuga 16, 35; Port of New Jersey 39; Port of New York 39; Port of Ningbo 16;
Port of Oulu 46; Port of Rostock 44, 46; Port of Rotterdam 10, 15, 44, 49; Port of Santos 35, 39; Port of Shanghai 39, 49; Port of Sillamäe
46; Port of Singapore 39, 49; Port of Södertälje 44; Port of St. Petersburg 10, 33, 44, 49; Port of Stockholm 41, 46; Port of Szczecin 44,
60; Port of Świnoujście 46; Port of Tallin 45-46; Port of Tilbury 47; Port of Tokyo 39; Port of Trelleborg 46; Port of Ust-Kut 32; Port of Ust-
Luga 33; Port of Uusikaupunki 46; Port of Zeebrugge 47; Ports of Stockholm 41; Post Danmark 61; Posten 61; PSA International 10; Rail
Cargo Austria 16; Rail4Chem 13; RG Line 46; Riga Airport 12, 58; Rosmorport 45-46; Russian Railways (RZD) 13, 16, 32; Ryanair 12, 58;
SAAB 62; SAS 11; Scandlines 46; Slovak Railways 16; Spliethoff 47; SSC Ferries 46; Stal 32; Stena Line 14, 39, 46; Steveco 19; Stora Enso
35, 38; Subsea Industries 44; Superseacat 46; Surgutneftegas 32; Swan Container Line 10; Tallink 10, 46; TAP 12; Team Lines 49; TGV
13; Tirrenia 21; Trade Trans 16; Transatlantic 46; Transfennica 46-47; TT Line 46; Uljanik yards 20; Unifeeder 49; Unity Line 20, 46; Veolia
Cargo 13; Viking Line 46; Virgin 12; Visy 35; Vodafone 11; VR Cargo 16; Vuosaari Harbour 6, 18-19, 35; Wagenborg Shipping 38; Wallenius
Wilhelmsen 44; ZPMC 29; Züblin/Aarsleff 44;

BTJ calendar of partnership events 2008/2009
BTJ 3/2008 (May-June edition)
Issue distributed at:
Roroex 2008 Expo
20-22 May 2008, SE/Göteborg
www.roroex.com
ICCMI 2008 Conference
2-4 June 2008, SE/Malmö
www.iccmi.info
Posidonia 2008 Expo
3-6 June 2008, GR/Athens
www.posidonia-events.com
East-West Intermodal
Conference
4-5 June 2008, PL/Warsaw
www.informedia-polska.pl
E-logistics Networking
Conference
5-6 June 2008, PL/Tomaszowice
www.transporeon.com
TOC Europe Expo
17-19 June 2008, NL/Amsterdam
www.tocevents-europe.com
BTJ 4/2008 (July-Aug. edition)
Issue distributed at:
BPO XI General Assembly
September 2008, DE/Lübeck
www.bpoports.com
Airports 2008 Conference
September 2008, PL/Warsaw
www.actiaconferences.com
BTJ 5/2008 (Sept.-Oct. edition)
Issue distributed at:
Innotrans 2008 Expo
23-26 September, DE/Berlin
www.innotrans.com
Baltic Ro-ro and Ferry
Conference 2008
October 2008, tba
www.actiaconferences.com
CEE Rail 2008 Conference
27-29 October 2008, HU/Budapest
www.terrapinn.com/2008/cee_rail
BTJ 6/2008 (Nov.-Dec. edition)
Issue distributed at:
Intermodal 2008 Expo
18-20 November 2008
DE/Hamburg
www.intermodal-events.com
BalticFuture 2008 Expo
18-20 November 2008, DE/Rostock
www.expotec-international.com
8 | Baltic Transport Journal | 3/2008
TRANSPOREON
SOLUTIONS FOR E-LOGISTICS
Special Report: Seaports equipment & facilities
Focus: Ro-ro trafic on the Baltic
Bi-annual exhibition and conference held exclusively for the roll-on/roll-off shipping industry. A
“must attend” meeting place for all the principal operators, suppliers and service providers using
ro-ro and horizontal handling methods.
“Impacts of Climate Change on the Maritime Industry” Conference will be a cornerstone of WMU the
Silver Jubilee celebration, attracting experts from around the globe to discuss how climate change
might affect various maritime and coastal activities, also evaluating measures to ensure the sustainability
of maritime industries.
With over 1,600 exhibitors every 2 years the international shipping community gathers at Posidonia. Besides
showcasing new products, services and technological breakthroughs, the event provides great networking
opportunities and discussions with senior, technical and operations management of shipping companies.
“Intermodal Transport in the East-West Commerce” is the topic of a 2-day international conference in Warsaw,
Poland. The agenda includes costs optimization, meeting deadlines, quality and effectiveness of the services
in efficient logistic models, insurances and guarantee systems, Euro 2012 and the construction boom in Poland,
the most perspective economical markets: Ukraine, China and Asian countries.
The first conference for Central and Eastern European logistic managers devoted entirely to introducing sophisticated
solutions for optimizing logistic processes. Guests include representatives of international companies
(Whirlpool, Curver) and academic researchers. Organised for you by TRANSPOREON. Free entrance.
TOC Europe 2008 edition will help you to find in-depth information about the port industry in the Netherlands,
better understand its impact on European shipping and make good business in the area. The accompanying
conference will also deal with the challenges European ports face for their growth and the future.
Special Report: Maritime-Aviation ranking 2008
Focus: Chinese boom & BSR economy dynamics
Fifty major Baltic seaports’ annual meeting and a conference gathering executives from ports, portrelated
industries, international organisations, members of the European Parliament, consulting
companies, academia and professional media. Organised by Actia Forum Ltd.
The four-year old conference provides a well-known meeting place for the aviation business in Poland,
the CEE fastest growing market. Delegates from various European countries will deal with the challenges
of increasing passenger/cargo traffic in Polish airports.
Special Report: Baltic ship suppliers’ guide
Focus: Railway innovations
Focusing on railway technology the expo has become the European platform for transport engineering
industry buyers and sellers both in passenger and cargo transport. Over 1,600 exhibitors and about
66,000 international visitors make for countless business opportunities for everybody.
The event concentrating on ro-ro, ro-pax and con-ro traffic on the Baltic Sea, giving a thorough insight
into shipping/port/hinterland matters, actual trends in vessels technology and ro-ro shippings role in the
region’s logistics network.
Central & Eastern Europe’s leading rail conference, designed to provide valuable insight into what drives this
booming industry and the challenges being faced. Last year’s edition featured 45 high level speakers. Expect
two days of focused discussion dedicated to freight, infrastructure and passenger services.
Special Report: Rail-Road ranking for 2008
Focus: Key logistics players
The world’s leading intermodal event comprised of a comprehensive exhibition and a conference
held uninterruptedly for 32 years, with its last edition showcasing products/services of over 100
companies and speeches from 30 acclaimed speakers. A must attend for professionals involved in
the container business.
International expo for innovations, technology, trade and services from the private and public
sector of the maritime supply industry, addressing professionals from the Baltic Sea area, UK and
the western North Sea region. The event will be accompanied by seminars, workshops, networking
service and a Come-Together-Party.

BTJ 2009 partnerships
EuroRail 2009 Conference
23-25 February 2009, DE/Berlin
www.terrapinn.com/2009/eurorail
SITL Real Time 2009 Expo
24-26 March 2009, FR/Paris
www.sitl.eu
Transport Logistic 2009 Expo
12-15 May 2009, DE/Munich
www.transportlogistic.com
TRAKO 2009 Expo
14-16 October 2009, PL/ Gdańsk
www.mtgsa.pl
Dates and places of the events are subject to be changed by the organizing parties.
BTJ calendar of partnership events 2008/2009
Now in its 12th year, EuroRail 2009 marries its exceptional pedigree with new topics of marketing,
distribution and revenue management. EuroRail provides a forum where you can debate
the big commercial questions with your peers, whilst making those all-important contacts.
Get ahead. Take the lead in logistics performance. SITL Real Time brings together in one place
the total transport and logistics chain. 25 800 professional attendees, 500 exhibitors, a conference
program with more than 30 sessions. Check the official website for more information.
The world’s largest exhibition (with 90,000m², 1,582 exhibitors and 47,636 visitors from 118
countries) for the transport, logistics and telematics sector with innovative solutions and products
for the entire value-added chain. An absolute must for anyone who wants to move things
in this sector.
The most prestigious rail industry meeting in Poland and one of the largest in Central and
Eastern Europe. It is the perfect opportunity to promote agglomeration rail transport, freight
forwarding and logistics, to present the latest technologies and hold meetings within the industry.
TRAKO is organised in partnership with Polish State Railways (PKP S.A.). The event is accompanied
by an extensive programme which includes numerous seminars, conferences and
company presentations.
or just enter www.baltictransportjournal.com and click: SUBSCRIPTION
3/2008 | Baltic Transport Journal | 9

What’s new?
Maritime
Danish container shipping company
Maersk Line is gradually recapturing its
market share, shown in a new report by
French AXS-Alphaliner. The company
boosted its global market share in terms of
TEU capacity from 16.0% at the beginning
of 2008 to 16.4% in April 2008. Maersk Line
had an 18.2% market share in 2005 which
fell to 16.8% in January 2007, reflecting the
difficulties the company experienced after
acquiring P&O Nedlloyd.
The new generation high speed vessel M/S
Superstar was delivered to the Estonian AS
Tallink Group’s subsidiary Tallink Superfast
Ltd. The new 1A ice class vessel has a speed
of 27 knots, which enables it to sail between
Helsinki and Tallinn in less than two hours.
M/S Superstar is 175.1 m long and 27.6 m
wide and is a bit bigger than her sister vessel
M/S Star. It accommodates up to 2,080 passengers
and 1,930 lane meters of vehicles.
The ship has 186 cabins and 736 berths.
The Germany-based container terminal and
logistics group Eurogate will invest EUR 1.1
billion to expand its facilities in Europe over
the next four years. The investment will include
50 new super-post-Panamax gantry
cranes between 2008-2012. In 2007, the EU-
ROGATE Group handled 13.9m TEU Europewide,
10.6% more than in the previous year.
Since 2003 Swan Container Line GmbH
& Co. KG has offered a regular service between
Hamburg and St. Petersburg (First
Container Terminal). The service from
Hamburg and Rotterdam was operated
by M/V Baltic Swan (720 TEU) and M/V
Berit (612 TEU) on a weekly basis. A third
vessel, the M/V Mistral (612 TEU), was put
into service from April 2008. With this the
frequency increases to 2 times per week.
The rotation of the ship is: Rotterdam-St.
Petersburg-Hamburg-Rotterdam. The
transit time between Rotterdam and St.
Petersburg is 3-4 days. The ship leaves
Rotterdam every Monday and Saturday.
In January-March 2008, the total throughput
of Russian National Container Company
(NCC) amounted to 423,103 TEU
which is an increase of 21.1% compared
to January-March 2007. The throughput of
the largest NCC’s container terminal – FCT,
at the sea port of Saint-Petersburg came to
256,399 TEU which exceeds the results of
January-March 2007 by 17%.
10 | Baltic Transport Journal | 3/2008
IMO’s new fuel regulations can increase
shipping rates
The Marine Environment Protection
Committee (MEPC) of the International
Maritime Organization (IMO) approved
major changes to the MARPOL Annex VI
regulations to reduce harmful emissions from
ships. Sulphur oxide (SOx) emissions will be
reduced by lowering the global cap on sulphur
in fuel from 4.50% to 3.50% on 1 January
2012 and then progressively to 0.50% on
1 January 2020. In Sulphur Emission Control
Areas (SECAs), limits would be reduced from
1.50% to 1.00% on 1 March 2010 and then to
0.10% on 1 January 2015. The Baltic Sea and
North Sea are the only marine areas defined
as SECAs. “This is a real ocean-sized change
for the IMO. After a decade and a half of discussion
and pressure from environmentalists
around the world, the IMO has recognized
the need for clean shipping fuels,” said Eelco
Leemans of the North Sea Foundation, representing
Friends of the Earth International.
The new regulations come at a time when
environmental organisations published the
results of research indicating that more than
80,000 premature deaths annually worldwide
New CEO in DCT Gdańsk
Boris Wenzel was appointed CEO of the
container terminal operator DCT Gdańsk
SA. He succeeds Colin Chanter, who continues
as Chairman of the Management Board.
Wenzel brings to DCT Gdańsk a wealth of port
industry experience with a strong financial
and business development bias. Educated in
France, Mr Wenzel spent his very early career in
Barcelona, New York and London before joining
a leading Thai investment bank in 1995.
His introduction to the port industry came in
1999 when he joined as General Manager of
the Eastern Sea Laem Chabang Container Terminal,
one of several terminal operators in the
due to shipping pollution could be reduced
with caps on sulphur. It should be noted that
new sulphur limits present a considerable
challenge for the oil and shipping industry
which will probably result in significant additional
fuel costs. Bunker fuel already costs
around USD 500/ton and low-sulphur marine
diesel fuel costs $790-860/ton. A 10,000 deadweight
tonnage ship uses about 20 tons/day
of bunker fuel. “There is a potential danger
that the additional costs for short sea shipping
will result in a shift from the sea to the
less environmentally credible land-based
transport. This environmentally counterproductive
consequence will need to be
addressed in the context of the application
of the IMO Agreement in the EU,” said the
European Community Shipowners’ Associations
in a statement.
Annex VI Regulations for the Prevention
of Air Pollution from Ships entered into
force in May 2005 and has been ratified by
49 countries, representing approximately
74.77% of the gross tonnage of the world’s
merchant shipping fleet.
new Thai port of Laem Chabang as General
Manager. Successive promotions saw him appointed
President and CEO in 2002. From Laem
Chabang he moved to PSA International in
2003 where he played key roles in the international
expansion programme of PSA, including
projects in Turkey, India, Belgium and Portugal.
At the same time Danuta Biłat, formerly commercial
manager, takes on the wider role as sales
and marketing manager. Board Director Derek
Peters will remain as senior marketing adviser to
the new CEO and the responsibility for all day to
day management of the company remains with
General Manager Fred Kamperman.

New vice president of DFDS Seaways
The Danish shipping company DFDS, appointed
Carsten Jensen as new Manager of the
Business Unit Passenger and also as new head
of DFDS Seaways. Carsten Jensen, who comes
from a post as deputy director at DFDS Seaways,
simultaneously takes up a position with
DFDS’ Executive Management. Following
Carsten Jensen’s statement, he wants to focus
on making DFDS Seaways a stronger business
and even better workplace in close co-operation
with the Executive Management and the
employees. Carsten Jensen is 44 years old and
has an MSc in Economics and Business Administration.
He gained solid international
experience from SAS, which he moved to in
1995 and where he had management respon- rienced leader, who knows and loves the shipsibilities
with customer relations, marketing, ping company, its employees and customers. I
price policy, sales and operations, including in have no doubts that he is the right person to
Stockholm, before becoming German director ensure DFDS Seaways’ continued success and
for SAS in Frankfurt. “I am very happy to be dynamism,” said Niels Smedegaard, DFDS’
able to hand over the helm to Carsten Jensen, CEO. DFDS Seaways is the passenger-carrying
who brings some excellent ballast to the job. division of DFDS. The company operates the
Partly through his place in the company’s man- passenger routes Copenhagen-Oslo, Esbjergagement
since 2005, partly due to his previous Harwich, IJmuiden-Newcastle and Bergen/
valuable experience from international man- Haugesund/Stavanger-Newcastle. DFDS Seaagement
AD 320trucks positions. 205x135 Carsten (PL) Jensen 07-05-14 will provide 11.33 ways Sida transports 1 around 1.5 million passengers
DFDS Seaways as a sharp analyst and an expe-
per year on six ferry cruise ships.
Gdynia–Karlskrona
EXTRA
CAPACITY
Now you can book more space. And deliver more often.
We’ve expanded our fleet on the popular Gdynia–Karlskrona route. The “Finnarrow” is a new
reinforcement that gives an extra daily departure with capacity for 120 trucks – increasing the
overall route capacity by 60%.
And with another departure time, you’ll be able to fit more deliveries into your schedule.
Maritime
What’s new?
The government of the Republic of
Latvia gave the go-ahead for a EUR
500m natural gas terminal to be built between
2010 and 2013. Anicetas Ignotas,
the Economy Ministry’s undersecretary,
told a parliamentary committee that the
LNG terminal with an annual capacity
of 2 billion cubic meters would cover
an area of 3-9 hectares. With more than
8,000 kilometres of gas-mains and distribution
networks, nearly 1,700 kilometres
of gas-mains and about 6,600 kilometres
of distribution networks, Lithuania has
an extensive gas network.
At the Annual General Meeting of A.P.
Møller Maersk Sir John Bond (chairman
of Vodafone Group Plc.), Mr. Lars Pallesen
(rector at the Technical University of Denmark)
and Mr. John Axel Poulsen (captain
in A.P. Møller Maersk) were elected as new
members of the Board of Directors of A.P.
Møller Maersk. According to the pressservice
of the company, at the same time,
Mr. Svend-Aage Nielsen and Mr. Henrik
Lorensen resigned as nominee directors.
For more information give us a call or drop us a line at freight.info@stenaline.com www.stenalinefreight.com Tel +48 (0)58 660 92 97 Fax: +48 (0)58 621 33 08
3/2008 | Baltic Transport Journal | 11

What’s new?
Aviation
During the first three months of 2008,
Lufthansa carried a record number of passengers.
Its passenger numbers rose by 5.5%
to 13m in the first quarter. Revenue seat-kilometres
climbed 5.9%, lifting the passenger
load factor by 0.2% to 77.2%. Passenger numbers
were up in all traffic regions. Lufthansa
Cargo also improved its performance in terms
of cargo volume and capacity utilisation in
the first quarter. The Lufthansa subsidiary
transported 429,000 tons of freight and mail,
0.4% more than in the same period last year.
The cargo load factor rose to 69.5%.
The Boeing Co. announced another delay
involving its 787 jetliner, pushing back
its expected debut in commercial service
to the third quarter of 2009. It’s the fourth
time Boeing has had to revise the schedule
for the top-selling plane which has been
plagued by supply-chain problems. The first
global network airline in Europe operating
Boeing 787 will be LOT Polish Airlines.
The European concern Airbus announced
a rise in prices across its range of aircraft,
blaming rising metals prices and the weakness
of the US dollar. The list prices of singleaisle
planes rose EUR 2m while wide-body,
long range, and A380 aircraft increased by
EUR 2.5m. The average price for an A380 is
EUR 210m while an A320 is EUR 50m.
The first Russian air taxi Dexter obtained
an official permit for international transportation
and from June 2008 will start to carry
out flights to Finland, the Baltic countries,
and to a number of the CIS states. Dexter is
planning to use Swiss Pilatus aircraft which
have eight seats and can cover a distance
of up to 2,000 kilometres at a speed of
450km/h. By the end of the year the company’s
aircraft park will expectedly have 13
Pilatus aircraft and 3 Russian M-101 T aircraft
that have 4-5 seats. Officially the company
is based in Bykovo airport in Moscow.
A EUR 200m investment is planned for the
development of Riga International Airport.
In the first stage the plan is to prepare the airport
to handle 12m passengers per year. The
second stage foresees demolishing the existing
buildings in the southerly direction to construct
new space for the airport. This will allow
an even more increased passenger flow – up
to 20m per year. The first stage is to be completed
by year 2011. The number of passengers
handled by Riga Airport last year was 3.6m.
12 | Baltic Transport Journal | 3/2008
Growing fuel costs hit airlines
Europe’s second-largest airline, Lufthansa, maintained its financial outlook for 2008 but warned
that operating costs in the first quarter of 2008 rose sharply, driven mainly by soaring fuel prices.
“The challenges posed by increased prices, particularly the price of fuel, as well as uncertain economic
development, will increase for Lufthansa. For this reason, all of the group companies are
keeping their focus on cost management,” the Germany-based airline said in a statement.
The company spent EUR 1.07 billion on fuel in the first quarter of 2008, up 42% from the previous
year. However, positive EUR/USD currency effects and fuel hedging helped to offset some
of the increases. These factors lowered the additional fuel costs by EUR 97m and fuel hedging by
EUR 131m in the first three months of 2008. This year, the company will probably spend EUR
5.26 billion on fuel, up 36% from last year – more than the March forecast of EUR 4.9 billion. To
sustain earnings, Lufthansa decided to impose fuel surcharges on its ticket prices. The company
levied a EUR 77 fee on long-haul flights and EUR 17 on European services.
Another airline tries to stand up against high fuel costs. Belgium’s Brussels Airlines is looking
at nearly 100 ways of cutting fuel use, including more efficient fuel use and reducing the
weight on its planes. The company also announced it is slowing speeds and reducing the weight
on some of its airplanes. The airline said that slowing planes by about 10km/h would cut its
annual fuel bill by EUR 1m and only adds a minute or two to flight times. Brussels Airlines is
also trying to force through changes in the air system. The current system often forces planes
to fly a zigzag route over Europe as they pass over different countries’ airspaces. The situation
in the European airline industry can get worse over the next months when airlines’ oil hedging
ends and they will have to pay the full oil market rate.
The EU has approved in-flight mobile calls
The European Commission opened the way for
airlines to introduce technology that would allow
passengers to use their mobile phones throughout
Europe’s airspace. The decision will enable calls, text
messaging, and emails by GSM technology. The final
decision to introduce in-flight mobile calls will
be left to individual airlines. Some of them launched
a trial of in-flight mobile phone services on Euro-
pean routes. British Midland Airways, Portugal’s
TAP, and the low-cost airline Ryanair are planning
to offer services later this year. However, not all
airlines support the EU’s plans. Lufthansa said in
a statement that it is not interested in introducing
the service because a majority of its customers see
no need for phone calls during flights. Virgin also
expressed reservations over the idea. EU officials say
the cost of calls will be set by operators and the European
Commission will keep a close eye to ensure
that pricing is transparent. Passengers will be able to
make and receive calls using a base station within the
airplane. They will be allowed to turn their phones
on after the plane reaches 3,000 meters, when other
electronic devices such as laptops are permitted. The
phone services will not be available during takeoff,
landing or during turbulence, and the captain or
crew of the plane can control when they want to
switch off the onboard network.

Deutsche Bahn’s
partial privatization agreed
Germany’s committee of government parties coalition sealed an agreement that paves the way for
the partial privatisation of the last major state-owned company in Germany, the national train operator
Deutsche Bahn. Chancellor Angela Merkel’s conservatives (CDU/CSU) and her Social Democrat
(SPD) partners agreed that 24.9% of the company’s passenger and freight divisions will be sold to private
investors via an initial public offering. All stations, tracks (34,000 kilometres) and energy supplies
will still be owned by the state. The sale is expected to net between EUR 5 billion and EUR 8 billion.
“Deutsche Bahn is a very special company and it can’t be compared to others. It is a safe investment
that promises long-term success, both in terms of profits and the value of the stock itself. I am sure
investors will come,” said Wolfgang Tiefensee, Federal Transport Minister. Furthermore, he said the
government hoped the Bahn’s initial public offering could take place before the end of 2008, but he
added that “one could perhaps wait two or three months” if market conditions prove unfavourable.
According to SPD leader Kurt Beck, two thirds of the money will be invested to finance growth plans
of the rail and logistics giant. The rest will go back into the general government budget. The coalition
agreement comes after months of wrangling between Germany’s governing parties over how much of
the company should be privatized. Merkel’s conservatives said they want this initial privatization to be
the first step toward selling off up to 49.9% of Deutsche Bahn.
PKP Cargo will develop container transport
Rails for the high speed lines
Corus Rail, a company providing products
and infrastructure services to the international
rail industry, supplied the rails for the TGV
high-speed train tracks. For the new East TGV
line, Corus supplied 300 km of high-speed
line, plus 44 km of tracks to link the new line
to the classic network. In all, 1,300 km of 60E1
rails (60 kg per metre) were supplied, in unit
lengths of 80 m. The total weight of this order
amounts to 78,000 tons of steel, i.e., eight times
the weight of the Eiffel Tower. At more than
300 kph in commercial operation, and over
550 kph for the speed record, rail straightness
has to meet very stringent requirements. The
Despite Poland’s poor railway infrastructure,
which does not allow trains to develop their proper
speed, and high track access fees charged by the
national rail infrastructure company PKP PLK,
the Polish state-owned rail freight operator PKP
Cargo expects that container rail transport in Poland
will grow by 30% on an annual basis over the
next few years. To face up to the growing market
demand, the company is going to buy 800 container
carriages this year to increase its total number
to 3,000 by 2010. Furthermore, PKP Cargo will
invest in modernization of the existing cargo terminals
and in construction of new ones. By 2010,
the company plans to operate at least eight logistics
centres and container terminals. PKP Cargo’s
target is to increase the share of the intermodal rail
freight services in Poland from 2.5% in 2006 to
10%, which is the average level in Western Europe.
In 2007, PKP Cargo’s container transport division
transported 512,000 TEU and achieved a growth
of over 27%, year-on-year.
vertical deviations authorized, for example, are
set at 0.3 mm over a distance of 3 m, which is
four times less than on a conventional track. In
the rail production chain it was necessary to
ensure perfect geometry, eliminate all impurities
from the steel, and guarantee the chemical
and mechanical homogeneity of all the rails
made for high-speed tracks. Rail measurements
and straightness were checked using
laser systems; the absence of surface defects
was controlled by using eddy currents and the
internal structure had to be inspected using ultrasonic
systems. The service life of TGV rails
is 20 to 30 years.
Hinterland
What’s new?
The Russian Railways (RŽD) directed a
proposal to the Russian government about
two increases in the tariffs on cargo transportations.
According to RŽD representatives,
the first increase by 5% will compensate
the increase in prices due to inflation.
The second is projected for the period
from 2008 to 2011: by 3.6% in 2008, by 7%
in 2009, by 9% in 2010 and by 6% in 2011.
These funds will be directed towards the
company’s planned investment projects.
PCC Rail, the second-largest private
freight rail operator in Poland, decided to
establish a new subsidiary called PCC Logwag,
which will manage and administrate
PCC Rail’s rolling stock. The company will be
100% owned by PCC Rail, and will start operating
from 1 July 2008. Actually, PCC Rail
Group plans to invest in foreign markets. The
joint venture company will be established
soon in the Czech Republic. At the beginning
of 2009, a similar company will start its
services in Bulgaria and in Austria.
PKP Group, the Polish national railway operator,
earned its first-ever net profit of EUR
22m last year, compared to a loss of EUR
68m in 2006. It is a result of lower costs,
which fell by EUR 172m and 8m more passengers
served in comparison with 2006.
The company’s income amounted to EUR
3.2 billion. In 2008, a similar result is expected
to be achieved.
The European Commission adopted a
European standard for train signalling and
speed control – the European Train Control
System (ETCS) – which guarantees a
common standard that enables trains to
cross national borders and enhances safety.
Currently, there are more than 20 different
signalling systems operating in Europe and
their incompatibility is a major technical
barrier to international traffic. Thanks to the
ETCS, freight volume is expected to increase
by 55% along certain corridors and travel
time is expected to be reduced by 20%.
Veolia Cargo, the rail-based logistics
company, signed an agreement for the
acquisition of Rail4Chem which specializes
in international rail freight transportation.
The takeover will make Veolia Cargo
one of Europe’s largest private rail freight
companies, with revenues of more than
EUR 200m and will expand its Dutch and
German business.
3/2008 | Baltic Transport Journal | 13

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Just one question
Overinvestment?
Do you agree that mega-ports are overinvested and that upgrading
small and medium-sized ports could lead to greater
effectiveness?
In the last issue of the Baltic Transport Journal we published an article by Per Olaf Brett
entitled “The mega-port development mania must be stopped”. In this article (available
to read on www.baltictransportjournal.com) the author argues that the percentage of
investments in mega-ports is much higher than their share in European maritime freight
handling. Moreover, they are not effective, in terms of providing uninterrupted cargo flow,
especially with the hinterland. In Brett’s opinion it’s strong political pressure and not commercial
reasons that drive ports towards further developement. This drives the author towards
a call for stopping overinvestments, reducing modal shifts of cargo, retaining cargo onboard,
decentralisation and strengthening the role of small and medium-sized ports.
The article received a wide response among our readers and is now the subject of our main
question in this issue.
14 | Baltic Transport Journal | 3/2008
We are not overinvested
Bengt van Beuningen
Port of Hamburg Marketing
The hub and spoke system in Europe is working well. Big ports function
as hub ports and the smaller ports are serviced by feeder/short sea traffic.
Both smaller and bigger ports must invest and bring up their infrastructure
and facilities to become ready for further cargo growth.
Liner vessels do not have to wait for port access in Hamburg or for terminal
service. Hamburg was just voted as a fast and good service port with a
high quality network for hinterland traffic by the shipping lines.
We just decided to invest EUR 3 billion to bring up port terminals and
infrastructure because we expect to handle around 18 million TEU in
2015. The terminal operators (private companies) will invest around
EUR 3 billion to modernize and extend their facilities. This is a private
investment which we cannot forbid.
Wait for the climate change and see
Hans Hansson
Freight Commercial Manager at Stena Line Freight
My view is that the mega ports are effective up to a certain level and,
beyond that point, new cost elements emerge that will be counterproductive.
One thing is to grow the port itself but what we see today
is that many of the mega-ports are fighting with an insufficient hinterland
infrastructure. There will be a need for mega-ports (specialized)
around the world but mainly then as hubs for the mega carriers
(more than 10,000 TEU) from which the containers are feedered to
smaller ports. What we see today is the fact that many of the smaller
and medium-sized ports are more competitive and flexible in their
servicing than the real big ones.
For the time being, we see an enormous overinvestment in ports all
over the world which will influence the effect of climate change on a
new possible routing. The North-West passage will save a lot of time
and fuel.

Where can we develop our next project?
Johannes de Jong
CEO of Baltic Container Terminal, Gdynia
I read with interest the ideas expounded in Per Olaf Brett’s article,
which appeared in BTJ 2/2008.
The headline employed is perhaps a little radical for the
beliefs expressed which seemed to suggest a change in
emphasis from major hub port development to small and
medium-sized regional ports as a solution to meet future
transport system and capacity requirements. While the article
does suggest something of a major change in direction
in development terms, it does not, however, entirely rule out
future development in the major hub ports and to this extent
it acknowledges there are “horses for courses.”
It is clear that the commercially-oriented interests that have
moved into the sector – independent international terminal
operators, shipping lines, investment banks and others
– now represent a key driving force in port development. Today
over 80% of the world’s container handling capacity is
in the hands of the major international terminal operators.
Some of the statements used in the article appear to suggest
port growth and investment are still based on regional
It’s customers who prefer mega-ports
Lars Karlsson
Managing Director, Copenhagen Malmö Port AB
My direct comment is: “We have heard it all before!” And, I get
the feeling when I read this article that there is a call for more
regulations and “EU – Port Packages”. It lacks recognition
of the market forces and market orientation. Logistics and
transports are no longer a matter of a “planned economy”
where politicians decide where cargo shall be handled and
on what terms or rates.
The mega-ports are of course there because they are
needed! But there are, of course, always limits to the extent
that they can grow. Surrounding infrastructure is
normally the limiting factor but the trend is very clear:
the larger ports will get larger and the smaller ports
Investments are necessity
Annick Dekeyser
Marketing Executive, Antwerp Port Authority
I cannot really agree with the opinion that big ports are over-investing
in capacity. We have globalisation and growing trade.
The goods need to come to Europe. In your local supermarket you
would like to buy your exotic fruit, and you would like to use electronic
equipment made in China. We do need to have the capacity
so vessels can come to a port and unload their goods without
any problems. In Antwerp we have invested in a new container
dock. This was a big investment but I wouldn’t say it was an overinvestment.
It was simply an answer to a need.
I can assure you that we are also working on hinterland
connections. We develop the railways, inland navigations,
and the infrastructure for roads. In Antwerp there is a group
of people who is working very hard to optimise all kinds of
hinterland connections.
We cannot deny the fact that cargo flow into Europe is uneven.
For instance, almost all import is coming through the port of
Rotterdam while all exports are going through the port of Ant-
Just one question
and/or political considerations but I would contend such
views are not in line with reality. The global operators are
growing because they know how to evaluate good projects
by looking at important issues such as inland infrastructure,
cultural and labour environment, legal and environmental
obligations, etc. And, as the parent group of my
own company proves – ICTSI – the focus is not just on large
port developments.
Mega-ports, mainly based on hub and spoke for the global
carriers, will continue to grow as long as global trade will
grow and there is enough draft and inland infrastructure.
Small ports and terminals will also continue to advance and,
particularly, as the demand for capacity strengthens. Dedicated
short-sea services need their customized gateways.
Therefore, the question is not what needs to be stopped.
The question for many global port and terminal operators
is, “where can we still develop our next project?” And, leave
mega or small, any will do! If you still know one, please contact
the writer.
will get smaller and probably specialised or niched to
certain commodities.
The European port and terminal industry is nowadays very
market-oriented and operates on commercial grounds and
responds to market forces. In general terms the author argues
that “port and terminals should improve their ships’ turnaround
times, opening hours and improve their overall flexibility.”
But, in order to accomplish this, you need to be big! It is
not possible to operate a port and terminal 24/7 at economic
competitive rates without very large volumes. Finally, it is not
the ports and terminals that set the production levels. Always
remember that the port and terminal operator supplies the
production resources and the shipping company supplies the
production conditions.
My view is that large ports will grow larger and small will get
smaller and some might even disappear.
werp. This causes imbalance. Railway operators have problems
with empty trains and cannot deliver shuttle services which can
be provided only when they are profitable both ways. We bring
together all kinds of parties like shipping companies, railway
companies, forwarders, and ask them to guarantee a certain
amount of products and a certain volume. This is one of the efforts
of the Port Authority, playing the mutual role by stimulating
this kind of thing. Right now we are primarily the last port of
call for vessels going to the Far East so we are trying to convince
the shipping companies to make us their first port of call when
they return to Europe.
Shipping companies have plans to build bigger and bigger
vessels. I don’t think that ports’ infrastructure can cope with
it any longer. Ports do not have unlimited draft, they have
to dredge constantly to make it safer for the ships. This is extremely
expensive. Another issue is that big vessels tend to arrive
in ports on Friday afternoons or on Mondays – all at the
same time. And then we have congestion problems again.
With smaller vessels you have the possibility to make more
frequent calls which in turn lessens enormous delays.
3/2008 | Baltic Transport Journal | 15

Event
TransRussia 2008
Big country, promising market
Photo: Agnieszka Selig
With its territory of 17m km 2 , 11 time zones and a distance of over
9,000 km between its western and eastern border, Russia certainly
is a challenge for transport and logistics companies of all kinds.
Especially since a lot of freight
is transported in and out of
the country. The recent export
boom of oil and gas from the
Russian Federation resulted in
huge investments both in the
extractive industry and in the transport infrastructure
of all kinds. It is estimated that
the private sector invests USD 120-150 billion
in the Russian transport and logistics
market each year. Besides this, Russia’s fast
economic growth (more than 7% in 2007),
corresponding with this boom, causes a
large import of consumer goods.
Although Russia is still not as an important
trading partner for the EU as China,
certainly it’s widely recognized as one of the
most promising markets in the world. Hence,
everybody wants to be there.
No wonder this year’s TransRussia exhibition
was the biggest ever, with over 520 exhibitors
(The Baltic Transport Journal among
them) from 26 countries. This year, for the
first time, it was organized in the modern and
spacious Expocentr Fairgrounds at the banks
of the River Moscow.
Six countries – Germany (with over 60
companies presenting their achievements at a
joint stand), Finland, Lithuania, Latvia, Estonia
16 | Baltic Transport Journal | 3/2008
and Spain – had their national pavilions. Latvia,
Lithuania and Finland, with their seaports close
to the Russian borders, are the countries that
Photo: Agnieszka Selig
Rodan Šenekl, Commercial Director and
Member of the Directors Board, CD Cargo,
a.s. reading BTJ.
benefit the most from sea trade with their eastern
neighbour. The Finnish port of Kotka has
become a kind of container hub for Far East
imports to Russia, while the Baltic Republics’
ports – in spite of some obstacles – still remain
an important gateway to the Russian market.
One of the sessions during the 13 th International
Transport and Logistic Conference accompanying
TransRussia 2008, was devoted to
container transportation in the Baltic. According
to Raido Rebane of Green Carrier, 70% of
Chinese logistics operators still believe that it’s
easier to use Baltic ports on their way to Russia.
Thus, some big investments are expected
there, like the one by the Port of Ningbo in
Tallinn’s Muuga terminal.
One of the main topics discussed during
the conference was the possible future development
of the railway transport in Russia.
The famous transsiberian-line is the shortest
land-bridge between Europe and China. Successful
transit of the Beijing-Hamburg Container
Express in January of this year only
whetted appetites. But the capacity of the
line, as well as the efficiency of the whole existing
railway infrastructure, is not sufficient
enough. That’s why a long-term strategy for
railway development has been implemented.
By 2030, 20,000 km of new railways will be
added to the already existing 85,000 km.
Railway industry was surely a vivid part of
this year’s Moscow event with Polish major national
operators, PKP Cargo and PKP LHS as
well as the leading railway forwarding company
Trade Trans. The huge stands of the Chech
(ČD Cargo) and Slovak Railways (ŽSSK), the
Finnish VR Cargo, the Latvian Latvijas Dzelcels,
the Lithuanian and Estonian national
operators or Rail Cargo Austria - all gathered
much attention along the exhibition.
Some of the hindrances to the transport
development in Russia were also mentioned.
One of the most important is bureaucracy, like
complicated customs-clearance rules that slow
down cargo flow. It was widely recognized not
only by representatives of foreign companies
but by the hosts as well. But will their opinions
be taken into account by the government? One
of the rumours heard at TransRussia was that
Vladimir Yakunin, head of Russian Railways
(RŽD), will be the new transport minister in
Vladimir Putin’s cabinet. Can he speed up the
process of Russia’s integration with its neighbours
on a transport level?
Dariusz Szreter

This would have left the ports governed
by the basic principles of the
Treaty and secondary legislation.
The essential question was
whether it was in the interest of the
ports to be subject to an incoherent
patchwork of jurisprudence and legislation
which often demonstrated contradictions, the
conflicting objectives of the EU transport and
environmental policy being a case in point.
Beyond the traditional context
Already in 2004, ESPO made a plea for a
thorough reflection of the priorities to a European
seaport policy, expressing the need for a
coherent framework within a broad perspective
focusing on the main challenges of the port sector.
The time for such a profound discussion only
became pertinent after the failure of the second
Directive proposal. Several factors helped to
bring the debate back on its feet. First there was
the determination of Transport Commissioner
Jacques Barrot to restore a climate of confidence
after the traumatic experience of the Directive.
Second the Commission had launched a process
to develop a comprehensive and integrated
maritime policy which would inevitably cover
ports. Finally there came a proposal from ESPO
to organize a wide-ranging stakeholders consultation
on the principal themes and challenges
to the European ports’ policy. The latter two
broadened the scope of the debate beyond the
traditional transport policy context.
Between June 2006 and June 2007, a stakeholder
consultation process was held which
consisted of two conferences and six thematic
workshops. This resulted in adopting the communication
policy on European ports by the
Commission on 18 October 2007. The communication
resorts to the Commission’s integrated
maritime policy and forms part of
its freight transport agenda, which were both
adopted around the same time.
Balanced picture reflected
The Commission’s new communication
is based on an overview of the general challenges
to the European ports’ system. These include
the demand for international transport,
technological change, emissions and climate
Maritime
A new policy for the European seaports
No traffic flow reorientation
Following the failure of the second port services’ Directive in
2006, it looked for a while as though the prospect of a European
ports’ policy was definitely off the table.
change, dialogue between the ports, cities and
stakeholders and, finally, reconciliation with
transparency, competition and, in general, the
Community’s set of rules.
The communication’s actual policy proposals
generally consist of a mixture in interpreting
the Treaty rules and an action plan
with further measures and instruments, which
are mostly of a “soft law” nature, i.e., which are
not legally binding but have certain indirect
legal effects and aiming to produce practical
effects. These relate to the following areas:
port performance and hinterland connections,
expanding capacity while respecting the environment,
modernisation, a level playing field
– clarity for investors, operators and users, establishing
a structured dialogue between the
ports and cities and, finally, work in ports.
ESPO has given a positive response to the
Commission’s communication. We believe the
new policy generally reflects the balanced picture
that emerged from the stakeholders consultation.
We have also welcomed the broad perspective
of the communication which included
topics such as capacity expansion and port-city
relations, which were never thoroughly discussed
at a European level despite their vital importance
for many ports on the continent. ESPO
agrees with the general focus of the communication
on soft law measures and instruments,
which complement the diversity of European
ports better than stringent legislation.
Let the market find its solutions
In this respect, we especially appreciate the
Commission’s recognition of the pivotal role of
port authorities, notably with regard to the use
of concessions. Defined in a broad sense, concessions
are very useful governance instruments for
public landlord port authorities and often the
only tools they have at their disposal to protect
the legitimate interests of their ports. The interpretation
given by the Commission broadly
corresponds to the principles we believe port
authorities should apply when granting concessions,
i.e., in regard to selection criteria, durations
as well as performance, and ownership clauses.
ESPO is currently undertaking a study on how
European port authorities are using concession
instruments. The results will be presented at our
annual conference to be held in Hamburg on
Patrick Verhoeven is the Secretary General,
the European Seaports Organisation
(ESPO).
May 29-30, 2008. The results may lead to further
comments and initiatives at a later stage.
ESPO has also welcomed the fact that the
Commission is not seeking to develop measures
which would alter the distribution of traffic across
Europe. The market, in combination with policies
of regional and national authorities, is largely capable
of finding its own solutions. The European
port scene is indeed becoming more diverse in
terms of the number of ports involved along with
the scope of port functions and services which, in
turn, are leading to more routing options for shippers.
It is our belief that the Commission should
refrain, now and in future, from any interventionist
policies which, directly or indirectly, aim at reorienting
traffic flows in Europe.
Finally, we look forward to continuing the
constructive dialog with the services of the Commission
and other stakeholder organizations on
the instruments and measures which are announced
in the communication. ESPO is particularly
interested in contributing to the guidelines
on the application of Community environmental
legislation to port development and State aid
guidelines.
Patrick Verhoeven
Find more on this
topic at TOC Europe
Conference,
17-19 June in Amsterdam,
where
Mr Verhoeven will
be a panelist in the
plenary session: The Outlook for Europe.
3/2008 | Baltic Transport Journal | 17

Maritime
Vuosaari project in its final stage
The return of the city
For ages ports gave rise to the development of
the cities always having a definite impact on
their economies.
Usually they were an integral part of the city centre being an
excellent job provider and an appealing location for businesses
and investment.
The Industrial Revolution, technical and technological
improvements, trade development and the change in
its pattern presented new challenges. The ports started to
expand beyond the city limits becoming more alienated from the city itself.
This process was uninterrupted till the mid-20th century when we could observe
new concepts in the port and city co-existence; one result was a new
demand for larger and specialized port terminals with an adequate capacity.
The old port areas returned to the city as business, cultural, and publiclike
new multifunctional districts. The city of Helsinki is an example of the
port-town metamorphosis benefiting both the harbour itself, industrial businesses
involved, and the city development as well.
The beginning
In the last years of the 20 th century the City Hall of Helsinki started a
project whose aim was to create a new highly specialized harbour in place of
the old one, located in the city centre. Only passenger, cruise, and ferry shipping
were to remain in the old port. The first step taken was the relocation
of the Ruoholahti harbour, a terminal which served as a discharging base
for imported coal for two main power plants: Samisaari and Hanasaari. The
Ruoholahti district is located roughly 2 km from the very centre of Helsinki,
and in the past the area was almost entirely dedicated for industrial functions.
Along with the city’s expansion, the coal port was beginning to be
18 | Baltic Transport Journal | 3/2008
“eaten up by the commercial and residential buildings” and could no longer
serve its functions without disturbing the local community. Ruoholahti was
not the only problem in the process of the city’s growth. In the vicinity of the
coal port, there were two other huge traffic port areas: Länsisatama (West
Harbour) and Sörnäinen (North Harbour).
The last decades have witnessed uninterrupted growth in container
shipments which has also had a definite influence on Helsinki with almost
30% of the entire import and export, approximately 10m tons of
cargo passing through the city. All of this led to a decision taken by the
City Council in 1996 to approve a plan for the construction of the Vuosaari
harbour, to where the cargo would be shifted.
The Vuosaari Harbour Project
The construction works started in January of 2003 and currently the
project is in its final stage of implementation. The whole harbour should
become operational before the end of the year. The total area of the port
will take up approximately 150 hectares of land, out of which 60% is to be
gained by filling in the sea (a total of about 700,000 cubic meters of material
will be dredged from the fairway and will be used, partly, for creating
artificial land in the suitable areas). The port will handle unitised cargo
only, i.e., goods transported in containers, trucks and trailers. The harbour
will have two 750-metre container quays and 15 ro-ro berths. There will
be no problem with shallow waters as the draught of the fairway leading
to the port will be 11 m after completion of the dredging works, allowing
even a large Panamax container vessel to berth and discharge. The port
will have direct connections to the entire Finnish main road and railway
network. The Harbour Road will give access to Ring Road III through a
1.6 km long tunnel. The length of the harbour railway will reach 19 km
and connect to the whole Finnish railway system. The Helsinki-Vantaa
airport will be directly accessible both by rail and road.

The cost of these port investments is estimated at EUR 313.7m, but the
expenditure for the whole project, with road connections, railway line, fairway
and logistics centres amounts to well over EUR 600m. The participants in
the project are: the Port of Helsinki (the constructor of Vuosaari), the Finnish
Road Administration, the Finnish Rail Administration and the Finnish Maritime
Administration. The ownership of the entire traffic connections will be
the governmental participants.
A logistics area is planned for construction in the vicinity of the Vuosaari
harbour. It will consume about 75 hectares of land, of which 50 will
serve as a logistics hinterland for the port. Apart from the logistics centre,
a business park is anticipated to be built in order to further increase the
attractiveness of the area.
Economy
The Vuosaari harbour will offer the most frequent shipping services between
Finland and the north-central European ports. The total capacity of
the port will amount to 12m tons (2m more than is currently handled by the
Port of Helsinki). The construction of the harbour will not change any shipping
routes on the Baltic Sea and the Finnish Bay as the new site will have the
same functions as the old port in the centre of the city. However, centralizing
the harbour activities will enable cost-savings and, at the same time, increase
the efficiency of port operations and transportation. According to the Port of
Helsinki, the harbour traffic will be organised in such a way that a trailer truck
can pick up a container at the harbour within a couple of minutes. The new
port is already gaining attention from business entities. A letter of agreement
has been signed with Finnsteve Oy Ab, Steveco and Multi-Link Terminals
Ltd. – all first class players in cargo handling, stevedoring and forwarding.
Furthermore, the Vuosaari Harbour, the nearby logistics centre, and business
park will create around 4,000 new jobs. This will definitely have an impact on
the development of the district and of the city centre.
Spatial aspect
Relocation of the port and industrial activities is a result, as said before, of
the change in technology and demand. For the last decades we have noticed
this process on the continent and the British Aisles, e.g. in Baltimore, London,
Copenhagen and Cardiff. The list is too long to enumerate all. What we must
keep in mind is the balance of gains and losses. Helsinki is a very “lucky” city
– by having an extremely long shoreline the town has ample space for the shift
of its industrial activities to much more favourable sites.
When the harbour operations are transferred to Vuosaari, the West and
North Harbours may, and supposedly will be, used for commercial and residential
functions. New homes, offices, and waterside parks will become reality.
In the Länsisatama (West Harbour) and Sörnäinen (North Harbour) flats
for approximately 20,000 to 30,000 residents will be built, and the area of
Sörnäinen in particular will also offer a vast number of jobs. On the shore
side, a recreational route system and new parks are envisaged.
The construction of Vuosaari will increase the vitality of this district
itself and also of the neighbouring areas. The business park and
logistic area, built in the vicinity of the harbour and alongside with the
port itself, will create a vital harbour centre. The commercial district
will create new jobs stimulating daily life and the need for services.
This should have a snowball effect, increasing demand for new investments
in housing, shopping and cultural centres, as well as green areas
for outdoor and recreational activities.
Environment
Maritime
Transferring harbour operations to new areas located outside
the city will decrease the number of lorries and trucks in the centre,
leading to a substantial reduction in noise and exhaust emissions.
It is estimated that approximately 3,000 lorries and trucks
pass each day between the North and West Harbours. Furthermore,
handling and transport of hazardous goods will be eliminated from
the vicinity of housing districts and office buildings. Current experts
show that up to 100,000 inhabitants live or work in areas exposed
to toxic substances, potential accidents or emergencies arising
from industrial activities.
The environmental aspect was thoroughly examined before the
decision for constructing Vuosaari was taken. All the pros and cons
were weighed. Although the construction will have some negative
effects on the vicinity of the construction site, all possible solutions
were adjusted in order to minimize the damages, like tunnel solutions.
The harbour road and the railway for the most part run entirely underground
thus leaving the land above unchanged. In addition, the
heavy traffic in the harbour has been arranged in such a way that it
is directed straight to the main arteries, minimizing harmful impacts
on housing. Particular attention has also been paid to noise control to
railway and harbour roads, with numerous sound barriers alongside.
Vuosaari has also very good railway connections which should support
this environmentally friendly transport mode.
The Vuosaari project will be finished this year. Upon its completion,
the centre of Finland’s capital will undergo major changes and, at the
same time, Helsinki will gain a modern specialized cargo port. Adding
the environmental awareness of the decision-makers we may boldly
state that the project is a textbook example of sustainable development
in the region.
Michał Gomerski
3/2008 | Baltic Transport Journal | 19

Maritime
Successful in Europe, a Naples-based company feels not fairly treated at home
Grimaldi calls for equal market
Photo: Nicola Capuzzo
Eurostar Barcelona (Grimaldi Ferries) in Barcelona
With an order book of new buildings worth EUR 1.7 billion, Grimaldi
Group Naples is aiming at becoming the owner of the largest
ro-ro multipurpose and car carrier fleet not only in the Mediterranean
Sea, but in the world.
Although Finnlines, controlled
by Grimaldi since 2007, has a
strong position on the Baltic
Sea, too.
Grimaldi Group actually
manages a fleet made up of 120
ships and their orderbook includes 24 new buildings.
Six ro-pax at Fincantieri, two new multipurpose
vessels of a series of eight at the Uljanik
yards in Pula (Croatia), four more ro-pax orders
in China and another five multipurpose ships still
to be built in Korea. The total investment volume
is approximately EUR 1.7 billion.
Cruise Roma, the last new ro-pax vessel,
built by Fincantieri at Castellammare di Stabia
shipyards, entered into service on the Civitavecchia-Barcelona
route in April. “The new cruise
ferry enables us to double our cargo capacity
on this primary Italy-Spain line and replace
the past Eurostar Roma (built in 1995) recently
sold to Unity Line for an interesting price,” says
Emanuele Grimaldi, CEO of the Group.
It seems the operation provided an excellent
capital gain for the seller, around EUR 30m
or maybe even EUR 40m. There are some speculations,
not confirmed yet, that her sister ship,
Eurostar Barcelona, is the subject of sales negotiations,
too. She will probably be substituted
by a new ro-pax vessel called Cruise Barcelona,
20 | Baltic Transport Journal | 3/2008
which is to be delivered next September. Like
Cruise Rome, she’ll be 225 m long, 30.4 m wide,
with 28 knots speed, will be able to carry 2,300
passengers and have a garage with 3,050 linear
metres of capacity.
New line? We shall see
Yet Grimaldi Group also operates in the
East Mediterranean and in Northern Europe
through its owned companies in Greece (i.e.,
Minoan Lines), Finland (Finnlines) and, obviously,
referring to ACL – Atlantic Container
Line, purchased eight years ago.
Some rumours have been heard that
Grimaldi is planning to introduce a new
line from Greece to Monfalcone (Italy).
Emanuele Grimaldi does not wish not to
comment on this. “We have been a 30.7%
shareholder in Minoan Lines for a few
months, therefore, we prefer not to speak
about strategies until we will have our men
in the management board. The shipping
line is working well and we feel completely
in tune with the management,” admits
Grimaldi. “We could go on buying shares in
the market to a 33% capital, after that we’ll
have to launch a tender offer in order to
gain a majority stake.”
Currently, Grimaldi Group calls at the
port of Monfalcone with car carrier lines and
it seems probable that they are planning a new
passenger service to Greece, an alternative to
the already existing one from Venice.
As for their future plans, the Italian manager
admitted that he already knows where to
focus their next efforts in the Mediterranean
Sea but all his ideas need to be previously discussed
with the board.
After Cruise Roma and Cruise Barcelona,
Fincantieri will go on building and then delivering
four more ships of the same class to
operate on the Adriatic Sea or in Greece. They
could substitute the three units actually linking
Ancona with Igoumenitsa and Patrasso. The
ro-pax built by Fincantieri granted the Naples
group high economies of scale and hence a
way to maximise profit and to propose cheaper
ticket prices to its customers. For the third consignment
of Cruise Roma class sister ships, to
be delivered in 2010, market rumours report of
a possible deployment on the Greek domestic
market between the Piraeus and Iraklion ports
(one million potential passengers). One important
clue confirmed that Minoan Lines’ managers
seems that they really appreciate Cruise Roma’s
capacity and its technical characteristics.
Finnlines: from charterer to shipowner
Grimaldi also controls 51% of the Finnish
ferry company Finnlines. After a slow but
gradual purchase of shares, which came to an
end in March 2007, the company started its

conditions
new long-term business plan. “In Finnlines
we have already invested EUR 121m for ten
new ships, six ordered from Chinese shipyards
and the other four purchased after their previous
chartering,” Emanuele Grimaldi explains.
“Now the company has 20 chartered ships,
therefore, we can consider our owned fleet percentage
as having grown significantly.”
By now it seems there is no news about
new lines or new destinations. In the owners’
opinion the company is working well and
doesn’t need any intervention.
Last year Finnlines registered an 8% increase
in turnover (EUR 685.5m) with EUR 68m of net
profit (+18%); as for the volumes transported in
2007 the company shipped 807,000 trailers and
containers (+8,6%), 96,000 new cars and 2.4m
tons of cargo (+24%). From January 2008 a new
passenger division started operating. Even if the
financial reports for 2007 were excellent, how-
ever, there are some worries about the future,
mainly referring to the oil prices, which have
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become one of the key challenges for the short
sea shipping industry. Competition with road
and rail transport impose that the shipping
speed service must remain regular in order to
maintain the scheduled services.
“Let me underline that, as the owner of a
majority stake in Finnlines, we decided not to
upset anything from the previous management,
because everything was working in the right
way,” emphasized Grimaldi. “The same receipt
will also be applied to Minoan Lines and follows
the choices made for Atlantic Container Line
where there are no Italians working and whose
headquarters will be moved to another building,
recently bought in New York.”
Everywhere with the exception of…
Italy!
It seems unbelievable but Grimaldi Group
has experienced the biggest obstacles in their
business activities in its home country. The reason
for that is the state aid for the Italian public
shipping company Tirrenia, which Grimaldi
characterizes as “unfair”.
“The market balance is troubled by the EUR
200m given by the Government to Tirrenia for
covering the debts and balancing the budget,”
complains Emanuele Grimaldi. “Politicians
Fleetwood-Larne
number of daily connections: 3
crossing time approx: 8 hours 30 minutes
Fishguard-Rosslare
number of daily connections: 2
crossing time approx: 3 hours 30 minutes
Göteborg-Frederikshavn
number of daily connections: 7
crossing time approx: 3 hours 15 minutes
Göteborg-Kiel
number of daily connections: 1
crossing time approx: 13 hours 30 minutes
Göteborg-Travemünde
number of daily connections: 1
crossing time approx: 14 hours
Hoek van Holland-Harwich
number of daily connections: 2
crossing time approx: 6 hours 30 minutes
Hoek van Holland-Killingholme
number of daily connections: 1
crossing time approx: 11 hours
Maritime
should understand short sea lines diverge from
the routes they “like” and where they dedicate
funds but it’s the liberalized market which selects
the convenient maritime services.”
He adds that politics is responsible for Alitalia’s
bankruptcy and hopes Tirrenia’s unfair
role in the shipping sector won’t continue without
some kind of intervention. “We agree with
all the other private operators that actually it’s
impossible to plan investments until there is a
public player, which is influencing the market
conditions in such a way,” he claims. These
are the reasons why Grimaldi Group won’t go
ashore with regard to Italian internal shipping
services until something will be changed.
Grimaldi is undoubtedly one of the most
important players in the ro-ro and ro-pax sector
worldwide, therefore, they can’t be feared by any
other competitor but only when market conditions
are equal and fair. For the company from
Naples it has been easier investing in port and
terminals abroad than in Italy. “We built an entire
port in Nigeria and bought another one in Sweden;
Antwerp Port Authority gave us complete
autonomy to realize a large terminal in a few
years while at home it’s almost impossible even to
obtain a simple grant,” says the Group’s CEO.
Holyhead-Dun Laoghaire
number of daily connections: 2
crossing time approx: 1 hours 40 minutes
Holyhead-Dublin
number of daily connections: 3
crossing time approx: 3 hours
Karlskrona-Gdynia
number of daily connections: 3
crossing time approx: 10 hours 30 minutes
Oslo-Frederikshavn
number of daily connections: 1
crossing time approx: 8 hours 30 minutes
Rotterdam-Harwich
number of daily connections: 3
crossing time approx: 7 hours 45 minutes
Stranraer-Belfast
number of daily connections: 6-7
crossing time approx: 1,45 hours or 3 hours
Varberg-Grenaa
number of daily connections: 2
crossing time approx: 4 hours
Nicola Capuzzo
3/2008 | Baltic Transport Journal | 21

Maritime
Abu Dhabi makes a strong pitch for European shipping companies
Khalifa: state-of-the-art
An image of the Khalifa Port & Industrial City
Baltic logistics companies could use Abu Dhabi as a hub for the
Middle East. They can extend their business interests in the Middle
East and, particularly, in the Gulf by using a local port to foray
into the region.
While many international
companies have had
considerable exposure
to Dubai, whose growing
popularity has led
to the overcrowding one
notices there, neighbouring Abu Dhabi wants
to assume the role of a regional logistics hub.
“As companies and others in the Baltic region
seek new markets in Asia and, particularly, in the
Middle East, Abu Dhabi would be a good platform
to foray into these lucrative markets,” Hamad Abdulla
Al Mass, the executive director (international
economic relations) of the Department of Planning
and Economy of Abu Dhabi, makes a pitch
in an interview with the Baltic Transport Journal
at the recent Hannover Industrial Fair.
To attract technology and know-how
Recognizing its strength attributed to its strategic
location in the waterways between Europe
and Asia, Abu Dhabi is quietly courting companies
in Europe, including in the Baltic region. This was
also the reason for Abu Dhabi’s high-pitched participation
at the Hannover event where it was seen
courting corporate executives from Europe, including
the Baltic Sea Region. “Yes, our pavilion has received
visitors from BSR and, in fact, the whole of
Eastern and Northern Europe,” Al Mass revealed.
22 | Baltic Transport Journal | 3/2008
While interaction with the Baltic region has
not been very intense in the past, Al Mass envisages
greater interaction and traffic between Abu
Dhabi and that region in the future.
Abu Dhabi’s presence at the Hannover fair
underscored the emirate’s resolve to leave an impression
on the global business. Al Mass added
that Abu Dhabi was participating in the event
because it wanted to benefit from the presence of
huge contingents of trade visitors from America
and Europe. “While we welcome foreign direct
investments, we are, particularly, interested in attracting
technology and know-how which would
make Abu Dhabi an attractive logistics hub for
foreign companies. Balkan shippers and logistics
players could certainly set up outfits in Abu
Dhabi which because of its strategic location and
its modern infrastructure has all the characteristics
of an attractive hub,” Al Mass explained.
Tax-free environment
The Abu Dhabi government is offering a free
trade zone area located next to the port which,
as Al Mass claimed, will provide all the logistics
support for companies located there. Abu
Dhabi’s port is a deep-water facility (100 sq. km)
for the free zone which will provide all the modern
facilities such as energy, water, etc. “Baltic
companies could take advantage of our tax-free
environment and duty-free exports. By being in
Abu Dhabi, you are also securing a steady supply
of low-cost energy because of the region’s natural
resources. Water is also, of course, available
without any problems. Abu Dhabi is focusing on
business that offers long-term value and we are,
consequently, avoiding cheaper products. We are
targeting companies that offer good value products
and services,” he maintained.
What makes Abu Dhabi attractive for foreign
companies, including those in shipping and logistics,
is that the emirate has a rich middle-class
which is a potential constituency of high-spending
buyers. Baltic companies can set up operations
here for manufacturing, logistics services
and other businesses.
A catalyst for industrial growth
Image: Abu Dhabi Dept. of Planning & Economy
According to Abu Dhabi-based shipping
circles, the emirate’s major thrust in the global
logistics business will come from the new
Khalifa Port and Industrial Zone (KPIZ), an
ambitious mega project comprising of an industrial
zone and multi-purpose port with a
special economic zone dedicated to industrial,
logistics, commercial and other facilities. The
KPIZ is being developed by Abu Dhabi Ports
Company, a master developer of ports, industrial
zones, trade and logistics zones, and related
services.
“The Khalifa Port and Industrial Zone will
be a home base for a range of manufacturing,
logistics and industrial activities. It should be
an interesting place for European companies to
make a foray in the region,” claimed Ata’a J. Al

import gateway
Fraith, project manager (strategy and organization
development) of Abu Dhabi Ports Co.
Al Fraith highlighted the ongoing work for
development of the KPIZ. “It’s being developed
in phases. Phase 1 has entailed investments
amounting to some USD 6 billion. The existing
Abu Dhabi port is much smaller than the new
port under development. The long-term objective
of the new port will be to function as a catalyst
for industrial growth. The plan is that this
zone should contribute about a USD 1 trillion
to the economy in 15 years,” he said.
The Phase 1 area size encompassing some 173
sq. km, envisages the phased development of basic
infrastructure and utility networks; high, medium
and low impact industry zones; residential, commercial
and educational zones.
Khalifa will be a unique port
According to Al Fraith, the Khalifa Port will
be a “state-of-the-art gateway for import and export.
Ideally situated between two major cities and
two major airports, the Khalifa Port will be linked
by a nation-wide freight rail line, excellent high-
way systems, roadways and utility distribution
networks. The port will be able to receive all ship
sizes, including the largest container ships and
bulk vessels. Thoroughly extensible, it will be able
to accommodate even larger vessel sizes, as they
are manufactured,” Al Fraith predicted.
The Khalifa Port will accommodate a wide
range of cargo, including containers, break bulk,
liquid and dry bulk cargoes; it will also feature
modern unloading and storage facilities. Mandated
along a five-stage phased development approach,
the Khalifa Port is expected to start early
operation by the end of 2010, Al Fraith said.
“There will be offshore multi-cargo port facilities,
phased development of the Port Island
Approach Channel and Causeway to the Industrial
Zone. The dredging work has already
begun and we expect it will go into operation
within the next two and a half years. Its proximity
to the Abu Dhabi International Airport
gives Khalifa Port another advantage for airand-sea
shipments,” Al Fraith said. German
shipping experts familiar with the Gulf region
say that Abu Dhabi is “sparing no money” to
make Khalifa Port a “unique port.”
Maritime
USD 1.5 billion dredging contract
Dredging and reclamation of 45 million cubic
metres of material started in February at the
site of the planned Khalifa Port. In the first phase,
the port will be able to accommodate a throughput
of over 2m TEU and over 6m tons of general
cargo. By the time all the phases of construction
and development are completed by the year 2028,
the port’s overall throughput would increase to
over 22m TEU, and 35m tons of general, break,
dry and liquid bulk cargo.
The USD 1.5 billion turnkey dredging
contract was awarded to a consortium including
Archirodon Construction (Overseas) S.A.,
Boskalis Westminster Middle East Ltd. and Hyundai
Engineering and Construction Co. Ltd.
The Middle East region has seen tremendous
growth in trade in the past decade, according
to the International Monetary Fund,
with the UAE’s import value touching USD
121 billion and export value reaching USD
154 billion at the end of 2007. Representatives
of Abu Dhabi Port Co. say that Khalifa Port,
which will replace the existing port Mina Zayed
on completion, will create a gateway for
the import of all cargo into Abu Dhabi and
the export of goods manufactured in the adjacent
free zone industrial areas which will
cater for multiple sectors, including shipyards,
trade and logistics.
Manik Mehta
3/2008 | Baltic Transport Journal | 23

Opening in November 2008.
www.portofhelsinki.fi

Baltic Transport
b ibm i mo no tnh tlhy l-yd -ad ial y i l y c oc mo mp ap na ino ino n
Journal
Seaport equipment
and facilities
An offer for today, an investment for the future ...................................................... 26
Baltkran: Machinery for severe climate conditions ................................................ 32
Liebherr: Looking at Russia, waiting for China ....................................................... 33
Fantuzzi: Not only a supplier, but also a consultant ............................................... 34
Visy: With three things in mind .................................................................................... 35
Tug boats - the showcase of a modern port ............................................................. 36
Cold ironing can reduce air pollution and noise ..................................................... 38

Report
Seaport equipment and facilities
An offer for today, an investment
In order to meet customers’ requirements and to
adapt to the changing market, producers of port
equipment try to provide more and more automat-
ed solutions containing future-oriented options.
The goal is to create such solutions which allow further development
of the port devices. Many equipment manufacturers
have meanwhile changed from a machinery producer to a
supplier of complete handling management systems. Others
play the market by specialising in one type of machinery.
As the variety of available equipment is a very broad
topic, we decided to focus on the main producers and their key products,
dividing our overview into several sections based on port operations:
• ship loading and discharging equipment,
• quayside to stackyard/warehouse transportation,
• storage and distribution of containers (stackyard operations),
• intermodal/trimodal transhipment,
• bulk and general cargo handling.
First, let us however take a closer look at the main trends in a port’s
technology development, which constantly leads to improvements in:
• handling operations flexibility, quality and efficiency,
• complexity of projects, solutions and services,
• expansion of handling storage and transport activities,
• better terminal planning (involving a further
development of existing/new facilities),
• used equipment customized modernization
and conversion programmes,
• customized software packages to test the interplay
of modules in a virtual environment,
• complete service packages
(including consulting services supporting the purchase).
Ship loading and discharging equipment
Let us start with ship-to-shore transhipment and cranes which, traditionally,
are the core of any harbour business. They are widely used for fast, highperformance
and cost-effective loading/off-loading of a variety of goods,
from bulk and general cargo, via containers, to project and heavy-lift.
26 | Baltic Transport Journal | 3/2008
This makes them useful both in a small multi-purpose port as well
as in a large terminal. The most popular types of cranes are: Mobile Harbour
Cranes (MHC), Portal Harbour Cranes (PHC) equipped with a
rail-mounted portal instead of the tyre-mounted chassis usually used for
Harbour Cranes and Floating Cranes (FC).
The competition is high and companies always try to stand out.
Gottwald Port Technology GmbH, which invented the MHC about
50 years ago, is now strongly promoting its new Generation 5 Harbour
Cranes with the motto: “You name it, we crane it”. The idea behind the
new series is custom built products for individual demands of the client.
It is possible due to the block principle construction with the use
of many identical parts.
Gottwald Generation 5 Harbour Cranes offer:
• up to 20% higher handling rates,
• lifting capacities up to 200 tons,
• up to a max. 63-t grab curve,
• cargo handling on all ship sizes right up
to post-Panamax ships,
• a longer service life.
Typical examples of possible applications are:
• intensive, high-speed container handling
(also in a twin lift mode) on ships of all sizes,
• container handling on vessels of special sizes
e.g., Panamax ships,
• container handling and a high percentage
of heavy-load lifting operations in multipurpose
terminals,
• a high-level performance in continuous-duty
professional bulk handling operation (with 4-rope
grab),
• frequent changing between different types of cargo
handling, including container, general cargo
and bulk handling, in small and medium-sized
multipurpose terminals,
• high handling speeds at low lifting capacities,
for handling pallets, for example.
Gottwald’s main competitor in the field of MHC is Liebherr which
has got more than 30 years of experience in this area. Today they offer a
balanced range of models. The LHM product range, with its combination
of well-established functions and many additional features, is the
tool for easy, highly efficient cargo handling.
Liebherr Harbour Mobile Cranes offer:
• highly efficient container handling, bulk operations up
to 1,500 metric tons/hour, handling of scrap or
general cargo and even heavy lifts up to 140 metric
tons – just by an easy exchange of the lifting attachment,
• leading-edge crane undercarriage technology with
manoeuvrability and low ground pressure,
• an in-house design Litronic® system and the
patented Cycoptronic® cycle optimizing the electronic
crane control system.

for the future
However, this is not the flexible MHCs, but huge ship-to-shore gantries
that have truly revolutionized container handling on/off the vessels on a big
scale. STS Gantries lift objects by a hoist fitted in a trolley that moves horizontally
on rails. This concept is said to have been initially developed by the
US-based Paceco Corporation in the 1960s (and produced by this company
till now under the licensed name of Portainer). STS Gantries are now produced
by many manufacturers, including the European Liebherr Container
Cranes, Kalmar Industries, Konecranes, the South American IMPSA, the
Chinese Zhenhua Port Machinery Company (ZPMC), and others.
Liebherr offers an extensive range of STS cranes from a Panamax
size to the latest generation of Megamax and Malacca-max cranes with
safe working loads from 40 to 120 metric tons (4 x 20-ft. containers
each weighing 30 metric tons).
Container transport from quayside to stackyard
Gottwald manufactures an entire fleet of Automated Guided Vehicles
for automated container transport between the quay and the stack.
These unmanned transporters can carry 20’, 40’ and even 45’ containers
and operate under computer control using Gottwald’s own Management
and Navigation Software.
Also Fixed and Travelling Cargo Cranes produced by Liebherr are
a good solution for installation at quaysides, in harbours and in dock-
Report
yards available on fixed pedestals (FCC), or on rail-mounted travelling
gantries (TCC). The FCC and TCC ranges are economical, space-saving
solutions for cargo handling with vessels up to the Panamax size. This
relatively new concept is ideal for harbours and dockyards with limited
room for manoeuvring, where low ground pressures are essential or
Liebherr Fixed and Travelling Cranes offer:
• a low initial outlay, economical operating
and maintenance costs,
• compatibility with different types of cranes to suit all
cargoes and ensure maximum handling efficiency, e.g.,
wire luffing, cylinder luffing, heavy-duty bulk or
double-girder grab/container cranes,
• the extensive range of working attachments enabling
the crane to be configured for specific purposes
(container or bulk handling), multi-purpose operations
or special applications,
• control systems with a hydraulic load sensing control
(LSC) or a Liebherr Litronic® high-speed control system,
• an unrestricted view of the work area and the load.
where rail-mounted cranes are called for. The slewing cranes themselves
are all proven designs with capacities of up to 300 metric tons.
The best choice for terminals handling between 100,000 and
4,000,000 TEU per year are handling systems based on straddle carries.
A wide range of carrier models are offered in the market. Modern solutions
contain stronger side frame for continuous twin lift operation and
modular drive system with direct driven wheel hubs which ensures driver
comfort in operation works and good visibility of operation space and sur-
3/2008 | Baltic Transport Journal | 27

oundings. One of such clever answer for customer requirements are Kalmar
Edrive ESC W type with the new winch rope hoist option. Kalmar
has now launched the 7 generation of straddle carrier family that covers
all models from a shuttle carrier to 4-high straddle carrier. The other one
is CSC Straddle Carrier produced by Kalmar and equipped with original
Smoothlift hoist solution which combines strong performance with good
reliability. For the quick transportation from ship to the stack Kalmar Company
proposes SHC Shuttle Carrier. This concept combines Shuttle Carriers
with stacking cranes for better serving ship-to-shore cranes.
Storage and distribution of containers
Storage and distribution are two main functions of modern sea ports.
That is the reason why ports managers do their best to maximize reliability
and safety combined with high operating efficiency, long lifetime and low
maintenance costs of their facilities. Konecranes’ Container Yard Cranes including
the Rubber Tired Gantry (RTG) and Rail Mounted Gantry (RMG)
cranes are surely designed according to the above standards. The new RMG
technology provides high performance, reliability, easy and improved
steering, low operating costs and energy consumption.
Konecranes Rail Mounted Gantry (RMG) cranes offer:
• unique patented Konecranes Active Load Control
(ACL) system providing effective sway prevention
and additionally horizontal fine positioning
of the spreader (the spreader can be moved up
to 300 mm in trolley/gantry travel direction without
moving the trolley/gantry),
• spreader trim with hoist machinery units eliminating
separate special trim mechanisms,
• no hydraulics on the crane, only on the spreader which
enables better reliability, less maintenance and lower
environmental risks,
• low energy consumption and noise level because of
advanced drives and power regeneration,
• rigid and durable compact steel structure,
• remote diagnostic system enabling the operators and
service technicians to analyze the productivity
and preventive maintenance needs of the cranes,
• the optional slewing trolley for very precise load
handling and load positioning for moving containers
between rail cars and road vehicles.
Wide Span Gantries and Automated Stacking Cranes are aimed as tools
for medium-sized container terminals. Together with Mobile Harbour
Cranes and Portal Harbour Cranes and the respective Gottwald software
package, these systems can be used to form automated Gottwald Compact
Terminals. Large-scale container terminals, in which containers have to be
transported, stored and distributed, can be served by Automated Stacking
Cranes and Automated Guided Vehicles co-working. They can be linked by
innovative management software from Gottwald Port Technology.
Another mobile handling equipment are the reachstackers manufactured
by, e.g., Kalmar, Liebherr, Fantuzzi or CVS Ferrari (said to be
the quickest machines available today). Ferrari reachstackers can handle
a telescopic 20’-40’ ISO container spreader of a 45-ton capacity as
a standard. They have got three different lifting capacities in the second
row from 25 to 36 tons; the additional offering also has the lightest
ground pressure, low fuel consumption, full PLC/CAN BUS integrated
management, and GSM connection for remote control.
On the contrary, Liebherr’s reachstackers are mainly characterized by a
curved telescopic boom, making hitherto unavailable handling possible.
Intermodal and trimodal handling
Report
Liebherr Reachstackers offer:
• access to the second and third row of containers with
out removing containers from the front row.
• easy loading/unloading of containers from or to below
ground level with direct access to the spreader
from the ground,
• stepless speed control with an automatic power
regulator enabling smooth travel movements
and maximum efficiency reflected in the remarkably
low fuel consumption,
• large, well equipped driver’s cabin and an all round
standard of visibility,
• special damping measures to enhance driver comfort
and to extend the reachstacker’s operating life
reducing maintenance costs.
Intermodal and trimodal solutions are required at the interchange
zones between different modes of transport. Gottwald Port Technology
Wide Span Gantries are particularly suitable for such cases – at inland terminals
for combined rail and road transport and in rail terminals of large
container transshipment sites.
Ferrari Intermodal, equipped with a modular design spreader with
integral piggyback, offers: longer legs, an extra wide opening, handling
of semi-trailers and swap bodies of the latest generation, and the possibility
to be retrofitted later on.
Liebherr’s wheel loaders are used in ports and harbours for load
transfer work, discharge of material from vessels, and for the loading of
trucks and rail cars. It is good to have a closer look at them because of the
fact that they consume as much as 40% less fuel than comparable machines
from other manufacturers. The model L 544 2plus2 upwards have
optimized hydrostatic travel gear for almost entirely jerk-free movements
at all travel speeds and traction levels. And, the Litronic® system ensures
optimum control of travel speed and all steering movements, and is therefore
ideally suited to working in restricted conditions.
3/2008 | Baltic Transport Journal | 29

Report
Bulk and general cargo handling
Bulk materials such as coal, ores, fertilizers, sand, clinker and scrap
require high-performance cranes with particularly high handling capacities
in continuous duty operation.
Such requirements are met by, e.g., Gottwald four-rope-grab
cranes of the Mobile Harbour, Portal Harbour and Floating Cranes
series. These represent a cost-effective alternative to purpose-built
handling machines, which generally have long delivery times and
involve comparably high specific investment costs.
Liebherr is also a good choice supplying a range of specially
adapted equipment with its hydraulic excavator and crawler crane,
as well as the wheel and crawler loaders. Rapid working cycles
and high handling volumes make these machines very profitable.
The wide range of equipment and attachments enables crawler
cranes to be converted for either general cargo or bulk material
handling. For the harbour use, a special equipment package
is supplied in order to match the specific needs of loading and
unloading vessels at the quayside. This package comprises of a
raised operator’s cabin for an unrestricted view into the vessel’s
hold; an adapter between the crane’s undercarriage and superstructure
to raise the boom pivot point. This enables the crane to
work close to the vessel and ensures that the crane can operate at
a minimum outreach and therefore closer to its maximum load
capacity. Another advantage of this crawler crane solution is the
extended safety package with access ladder guards, wide catwalks
everywhere on the superstructure, additional mirrors for an unobstructed
view, and an acoustic travel warning signal. The crane
is equipped with the Litronic® control system.
30 | Baltic Transport Journal | 3/2008
Another interesting solution for bulk handling is offered by
Konecranes, with the most popular Gantry Type Grab Unloader
and their new AGD Grab Unloader, an easily maintained tool with
excellent operational reliability due to using a simple rope reeving
design and standardized drive machinery.
Innovative software solutions
Many firms provide their machines with dedicated operating systems.
We can observe a trend to make the software as user-friendly as
possible: penalization, touch screens, and icons menus are just a few
examples. Another trend is the compatibility with software of differ-
Konecranes AGD Grab Unloader offers:
• 60% less amount of ropes than in the conventional
unloader (a compensating rope trolley is not required),
• no need for a separate rope tensioning device
• only one rope per drum. Changing of the ropes
is easy to do,
• a longer lifetime of ropes,
• efficient control of ropes at all times
(no slack rope problems),
• frequency controlled AC drives
(almost maintenance free Squirrel cage AC motors),
• four fully interchangeable equal-sized drive machines
(AC motor, brake, gear box and rope drum),
• smaller physical size of the main driving components,
• easier handling and changing of the components.
Added
value to
logistics
The Port of Turku is a competitive
service centre of transport logistics
which is located as part of the
Nordic Triangle. Turku links together
the large cities of Scandinavia,
Russia and Central Europe, and it is
the only Finnish port that is able to
handle trains, trucks, containers and
trailers. Effi cient connections and
fl exible services help you get to the
destination ahead of others.

ent models and an easy way of inputting all the computerized machines
into one controlled system.
There is also the possibility for ports to set a system dedicated only
for their internal use, but these implementations are still not often met.
Gottwald provides a solution for the logistical linking of individual
products with complete systems, namely customized software packages
and simulation and emulation. This software links Gottwald products and
systems to each other and can be integrated with ease into higher-ranking
management, stack and logistics systems. Thanks to simulation and emulation,
it is possible to run through case studies and test the interplay of modules
in a virtual environment.
Kalmar Industries has recently launched a second version of its Remote
Machine Interface (RMI) which can be fitted to all types of Kalmar’s wide
range of equipment or even to other-branded machinery. It is a perfect tool
Report
for remote machine monitoring, maintenance tasking and reporting which
can be used with all Kalmar equipment. RMI 2.0 features a new customer
friendly graphical user interface (GUI).
Firstly launched in 2005 RMI gave operators an opportunity for centralized
machine maintenance data in order to optimize equipment fleets
through real-time maintenance and operational planning even via internet.
That is because of the growing importance of analytical data being used to
create more efficient operations. Data from each machine is sent wirelessly
to the RMI system and is accessed via the user’s GUI enabling generation
of reports and analyses for defined timeframes. Since now over 200 applications
have been sold to customers in approximately 25 countries.
Port Optimizer is a simulation tool from Kalmar, illustrates the different
handling systems in real time as well as the benefits of each individual
system. It can be mainly used in automating new or existing terminals.
Another software solutions from Kalmar Industries is the terminal
operating system (TOS) used for managing the machines and the
location of containers in the yard. The central of ASC control system
executes the commands which are received from TOS and takes into
consideration factors such as optimal speed, route and collision avoidance.
Measuring systems and sensors help to achieve accurate automated
crane movements. Additionally control stations are supervising
and controlling the system for example for loading and unloading of
road trucks. The diagnostics system is used for recognizing, notifying
and displaying errors and failures. It is applied to each individual
crane, the automation subsystems and the central ASC control system.
Kalmar is prepared to advise customers on the layout and equipment
planning both with existing and new terminals.
Aleksandra Wiśniewska
3/2008 | Baltic Transport Journal | 31

Report
Machinery for severe climate
conditions
An interview with Oleg F. Yermolayev, General Director of Baltkran
History of the Russian crane manufacturer Baltkran from Kaliningrad
spreads over 60 years but it’s only in the last 13 that you have
worked under free-market conditions. Is it not difficult to compete
with the West European companies that have well established their
reputation in the world’s harbour crane market?
Baltkran has developed dynamically over the period of 63 years. During this
time, it has produced more than 13,500 cranes of various types. And we have
come quite a long way since our first rivet crane – with its lifting capacity of 6.3
tons, its simple mechanisms and steering system, and its primitive cabin for a
crane operator. There’s no comparison to the modern, complicated and mighty
container cranes we produce now. Baltkran not only survived the transformation
from the socialist planned economy to a market economy but, having consolidated,
we have carried out a thorough reorganization of the enterprise on a
daily basis. Presently, we hold good positions in the niche areas chosen by the
company’s directorship. The period of time referred to in your question is not
that short at all. Everyone has begun from scratch at one time or another. When
our main shareholder – the Noell concern from Germany – obtained our company’s
shares from the government and then realized orders for modern and
complex equipment, it took upon itself the responsibility to share with Baltkran
its long-standing experience in deliveries to large ports.
Which countries prevail among the clients who purchase your products?
Delivery of equipment and complex crane parts is carried out both to
domestic and to foreign markets like: France, Holland, Finland, Germany,
USA, China, India and also Lithuania, Belarus, Kazakhstan and
many more.
Some of your equipment is to be used in severe climate conditions.
How can you assure the safety of its usage?
Ensuring safety is our credo. We are one of the few companies with many
years of experience in delivering lifting equipment to areas with critically low
temperatures (down to 60°C) in Eastern and Western Siberia, Iakutia, and beyond
the Arctic Circle. What is more, we have had a large number of positive
replies from our clients. And we have no less experience in delivering products
to regions with sumptuous and long-lasting annual atmospheric fall, in
particular snowfall, strong storm winds and others. The crate-like construction
of cranes ensures stability when hurricane winds set in and it also prevents
the snow from accumulating. For this purpose, a specially constructed
spreader was designed, whose gripping devices are placed on top thereby allowing
to grip the container without fail and in a reliable manner even with
a huge snow-drift on it. In seismic sensitive areas, special technological solutions
have been implemented which ensure the stability of equipment also in
case of an earthquake of 7 degrees on the Richter scale.
How do your products meet present ecological standards?
First of all, we produce equipment which does not require the use of diesel
oil. Our cranes and even the separate crane parts are operated with
the use of electrical power. This is why, we only use electrical spreaders
instead of the hydraulic ones for reloading containers. The use of noiseless
operating systems is yet another important factor, which enables
our cranes to be operated in terminals located in inhabited areas.
32 | Baltic Transport Journal | 3/2008
It seems like Baltkran benefited a lot from the Russian extractive
industry boom. Is your development strategy focused more on cooperation
with existing clients from that branch or are you searching
for new customers?
In the wake of the dynamic growth in the Russian economy within
the last decades, such branches as the oil and gas industries, black and
colour metallurgy, transport and others have much developed. Currently,
one can observe a real increase in the number of new production
plants in Russia and in the modernization of the already existing
ones, which naturally entails additional investments in equipment and
technology. The majority of our clients are big players on the global
markets like Lukoil, Surgutneftegas, Gazprom, RŽD, Atomstroiexport.
They have established stable and partner relations with us over
the period of many years. At the same time, the circle of our clients
has steadily been growing with new companies both from Russia and
abroad – Stal, NCC, Alrosa (based at the river port of Ust-Kut), companies
from Kazakhstan, Germany… We believe others will follow.
Taking into account further seaports’ dynamic development, in
what direction should the equipment and services offered on the
market evolve?
One can characterize all the tendencies related to the development of
the lifting equipment market by saying that it is ‘maximum efficiency
and minimum loss’ in the area of exploitation that is being sought
after. This also means that technology should be reliable, repairable,
economical, and that it should have a high working capacity. In the
countries where the level of technical culture is high – the USA, Germany,
Holland and others – the working force is costly and hence a
fully automated operating system will be preferred there. Naturally,
there will be more pressure for keeping up with ecological and safety
standards as far as materials and equipment are concerned.
Aleksandra Wiśniewska

Looking at Russia,
waiting for China
An interview with Thomas Bachmann, Head of the Marketing Department
at Harbour Mobile Cranes, Liebherr-Werk Nenzing GmbH
We are meeting at Transrussia in Moscow.
How important is the Russian market for
Liebherr at the moment?
Russia is definitely a promising market for us
and we have a very good situation here since
we are spread close to the west, in the St. Petersburg
area, in the Black Sea region as well
as the Far East.
How big a share do you have in the Russian
market?
Globally we deliver around 90 mobile harbour
cranes per year. From that number, four
to six go to the Russian market. Sometimes it
is a little bit more – up to 10 machines. During
the last two years, Liebherr was the only
company to sell mobile harbour cranes into
the Russian market – a result of the continuous
market penetration of our Russian sales
office in Moscow and the headquarters in
Nenzing, Austria.
What about other countries in the Baltic
region?
The other countries have a particular capacity
of cranes available, they sooner or
later will buy new ones or exchange older
ones but not in the quantity we expect from
the Russian ports. Scandinavia had a very
strong growth in the 1980s and early 1990s,
then it cooled down a little bit, but during
the last two years we have observed that it is
catching up again. When mentioning Scandinavia,
I have to tell about our long-lasting
relationship with the port of Aabenraa.
They have excellent crane drivers. We have
a very regular exchange of information between
them and our technicians in order to
speed up handling capacity for bulk cargo.
They even achieve a 55-60 cycling time per
hour, which is tremendous.
And the German market?
Germany is not such a big market, because
it has a relatively short coastline. So the
most important markets for us are: Spain,
South America in general, specifically
Brazil, Turkey and several other European
countries. Italy has always been strong.
There are two Italian manufacturers, so it’s
not so easy. Italian ports have always, from
the very early stage, believed in the production
of mobile harbour cranes. Whereas in
other countries, it took a little bit longer.
Do you think that some ports in Europe
still need advice on why they should use
mobile harbour cranes?
At the moment, the mobile harbour cranes
have a certain reputation and most port operators
already know what this product can
do and what they can expect from it. We
have a growing number of orders. Last year,
we achieved a 30-40% increase in orders so I
believe that most of the port operators have
enough information to decide if they want
to keep smaller handling machines or if they
should invest in mobile harbour cranes. Of
course, a lot depends on the vessels sizes and
the kind of cargo handled in ports.
Do you sell many cranes to Chinese ports?
It is a very interesting area for us and our
competitors because, currently, mobile harbour
cranes are not really accepted there.
Chinese ports are to a large extent specialized
in either container handling or bulk cargo,
so a flexible tool like the mobile harbour
crane, isn’t really well-known in China. At
this moment, there are maybe only 10 mobile
harbour cranes there. But we hope that
there will be a similar tendency as in India.
Until 2000/2001 the Indian market, although
having a very long coastline and a huge population,
had no mobile harbour cranes at all.
In 2004 we won the first contract there and
in three and a half years we have delivered 25
machines. We hope that we will experience a
similar situation in China.
Are there any plans to open a production line
of mobile cranes there?
There have been rumours several times but
right now there is no Chinese manufacturer
of mobile harbour cranes. China is very
strong in Ship-To-Shore cranes. They have
a big advantage that on the Chinese market
there’s a huge demand in that kind of equipment.
And if any of the European producers
decides to open a mobile crane plant there,
Report
I would expect it’s definitely not Liebherr. If
you look at our history we still have most of
our companies in Western Europe. It is not a
typical philosophy for Liebherr to jump to the
lowest manufacturing cost, but rather to look
at where there is a good quality in the product,
where there are skilled workers.
Does this mean that you have no plans to
build a factory in Russia or Ukraine?
If we look at Liebherr as a whole group, you
will realize that Liebherr is producing everything
from small refrigerators to hydraulics
for the Airbus company. The maritime division
represents just 6-7% of the total Liebherr
turnover. However, we are big in our market
and we are already the market leader in the
three most important areas for mobile harbour
cranes – Europe, South America and the Middle
East. While there are currently no plans to
open up a factory for maritime cranes/components
in Russia or Ukraine, the signing of an
investment contract for co-operation between
Mr. Valery Shantsev, Governor and Head of
the Nizhny Novgorod regional government
and Dr.h.c. Dipl.-Ing (ETH) Willi Liebherr,
President of the Administrative Board of Liebherr-International
AG and proprietor of the
Liebherr Group of Companies has just taken
place by the end of March 2008, focusing on
the setting up of a new production site in the
town of Dzerzhinsk. This new company, representing
a planned investment volume of more
than 200 million Euros and creating more than
600 permanent new jobs, will produce and assemble
construction machines such as earthmoving
machines and tower cranes for the
Russian market.
Dariusz Szreter
Piotr Trusiewicz
3/2008 | Baltic Transport Journal | 33

Report
Not only a supplier,
but also a consultant
An interview with Ottavio Artoni, General Sales Director, Fantuzzi
Reggiane
How important is the Baltic Sea and Russian
market for Fantuzzi Reggiane?
We are pushing forward in the market because
we see a great potential from the Baltic Sea
to the Pacific Ocean, and to the Black Sea. A
lot of new projects are going on there. There
are many interesting places in the Baltic Sea
Region for us, in Poland, in the Baltic states,
but our main market here is Russia. It is not a
very big share of our global operations yet. For
some equipment Russia represents about 5% of
our turnover at the moment but we have some
good orders already in our pocket and many
attractive businesses coming, and every month
there is something new. New projects like, for
instance, a big investment in Kaliningrad.
Russia is a big country and to be effectively
present on the market, it certainly requires
an adequate sales structure?
We already have a good organizational structure
in Russia with our coordinating branch
office in Moscow providing sales, information
and service and three other service
departments, one in St. Petersburg, one in
Novorossijsk, and one in Vladivostok.
What are the main problems you have to
cope with on this specific market?
What we often see is the lack of knowledge
and information as a problem. This is why for
us – the most important task is to show some
solutions to our client. To not only be a supplier,
but also a consultant. Russia is a market
in which you need to dedicate more time than
34 | Baltic Transport Journal | 3/2008
to the others. So first, you need to explain what
you really want to do, and only second go to
the supplier. Also, the bank system there is not
very modern with bureaucratic operational
money transfers. Next, the custom rules are
very rigid, which is especially difficult for the
after-sales service.
Do you have any plans to build a factory in
the Baltic Sea Region or in Russia?
Right now we have four factories, one in
Germany with our Noell division producing
straddle carriers, two factories in Italy, one for
reach stackers and forklifts, and another for
our mobile harbour equipment, and we have
a big plant in China, specializing in Railway
Mounted Yard Gantry (RMG) cranes, Rubber
Tyred Gantry (RTG) cranes and Ship To Shore
(STS) cranes. Now, because of the high costs of
transportation, our strategy is to concentrate
our production in China for Far East selling
destinations, and focus on Mobile Harbour
Cranes (MHC) in Europe, because shipping
one or two cranes overseas no longer seems
convenient. According to this, we would like
to establish some kind of joint-venture for
production directly in Russia or in Ukraine,
in an area where steel is produced, but it is
very difficult to find the right partner.
How big is your production and is your
company also involved in handling second-hand
equipment?
Fantuzzi manufactures as many as 300 straddle
carriers per year, followed by Rubber
Tyred Gantries and Ship-To-Shore cranes.
Of course we mainly sell new equipment,
but sometimes we are also involved in second-hand
sales basically to small and private
terminals and mainly for yard equipment. It
rarely happens with the big cranes as the total
costs of dismantling, transport, and then
reassembling them are too high to make it of
big interest.
Dariusz Szreter
Piotr Trusiewicz

With three things in mind
An interview with John Lund, International Sales Manager Visy OY
When I think of access control, I typically
think of regulating people trying to get
into an office building and the basic security
needs surrounding individual people.
What is a Port Access Control System
(PACS) and what makes it different from a
traditional access control system?
The access control needs of a port are unique in
many ways. Geographically, a port has a huge footprint.
Within the port there can be many different
(often competing) terminal operators, distribution
centres, administration buildings, businesses with
a vast array of needs, and a customs office. Access
and area control for a port is extremely complex
and it takes a system with great depth and flexibility
to properly administer control functions. A traditional
access control system falls short of this task
as it lacks the capabilities to simultaneously manage
security and boost the efficiency of operations. The
power of the PACS is clear. A driver, his truck and
cargo can arrive at the port and receive automated
damage inspection imaging, access to the port,
work order instructions, traffic guidance throughout
the port and terminals, customs clearance, and
receive automated permission to leave the port. The
driver and truck can make a completely automated
multiple terminal visit, and clear customs in one
trip through the port within a single system.
What are the main benefits that a port
or terminal can expect from your PACS
or Gate Operating System (GOS)? Why
should a port or terminal invest?
There are a lot of benefits that are specific to each
customer. In general Visy gate systems are designed
with three things in mind: 1. reduce operating expenses,
2. optimize safety and security, 3. increase
throughput capacity. For example, one of our customers
experienced an 88% decrease in damaged
cargo claims during their first year of having our
system. On the safety and security side, there are
many benefits ranging from safer working conditions
for personnel to preventing cargo and assets
from being stolen. Automating gate procedures
helps to reduce truck turnaround times and also
prevents trucks from idling in long queues, thus,
reducing vehicle emissions at the port along with
improving environmental conditions.
What types of technologies go into one of
these systems?
A PACS can utilize any number of technologies for
data collection and access as well as area control
purposes. The list of technologies can be long but
the goal is to automate as many port procedures as
possible. Our design approach is to use a commercial
database, Visy software, and commercial-offthe-shelf
(COTS) hardware for simple maintenance
and system upkeep. Optical character recognition
(OCR) for automatic container code identification
or license plate recognition (LPR), RFID for vehicles,
yard machines and personnel, traffic guidance,
high resolution damage inspection imaging, interfaces
with multiple external systems such as a terminal
operating system (TOS) or customs agency
system, web software, or even automated length
or dimension measurements. The flexibility of the
PACS allows new technologies to be added and
older technologies to be removed without adversely
affecting port performance. There is no need to
replace each system if there is a change in technology.
The system is designed knowing that changes
in technology needs and business needs are always
looming on the horizon.
Where have you delivered such systems?
Many places in Europe and around the world use
our technology including the Port of Kotka which
is home to Finland’s largest container terminal,
the Port of Helsinki and Vuosaari Harbour, the
Port of Muuga in Estonia, DFDS Nordic Riverside
Terminal in the UK, the Port of Gioia Tauro
in Italy, Deutsche Bahn, Guardia Civil in Spain,
Stora Enso, and Santos Brasil just to name a few.
Each one of our customers has specific needs
unique to his or her operation. There is no such
thing as an off-the-shelf PACS or gate operating
system. Clearly defined goals and proper planning
is the key to success with such systems.
The industry is changing very quickly and it
can be difficult to meet the needs of custom-
Report
ers, match legislation/international regulations,
and still keep investors and shareholders
happy. Along these lines, the investment
in such a system could be perceived as risky.
What if the needs of a port change, either by
growing, shrinking, changing its customer
base, or facing more stringent security regulations,
etc.? What happens to the system?
The system is designed to meet end-user goals and
to be completely scalable and flexible. We know
from experience that the needs of ports and terminals
will change over time. The push for change
comes from consumers, manufacturers, and governmental
bodies. Shipping and logistics services
are constantly striving to be more efficient. Visy is
not committed to any single means of data collection
such as the exclusive use of OCR or RFID. On
the contrary, we perceive these two technologies
to be complementary and we use them together in
many of our systems.
What if a port has multiple, even competing,
terminals? Can they share the same system?
The Visy PACS can manage access and area control
for a port and all operators inside the port.
The Port of Kotka in Finland is a great example.
There we have supplied a complete access and
area control solution for the port and all of the
operators within the port, plus we work with
the Finnish Customs and with the Stora Enso
distribution centre. In sum there are more than
100 lanes and checkpoints operating on a single
Visy network. The system provides access and
area control, ISPS compliance, traffic guidance
and communication with three different terminal
operating systems (TOS).
The technology seems rather complex.
How is the system for the users and what
happens to existing processes?
It’s true that the system can be complex in nature,
but the result is efficient port processes
with better access and area control. Through
automation we can simplify data collection and
eliminate paperwork and careless errors. Again,
the Visy PACS is designed to reduce operating
expenses, optimize safety and security, and
increase throughput capacity. System maintenance
is also relatively easy because all hardware
is commercial-off-the-shelf (COTS), thus, it’s
simple to replace and we have built-in “watchdog”
software that monitors system activity and
automatically detects faults and abnormalities.
The PACS is one of the most important systems
at a port and must be easy to use.
Dariusz Biernacki
3/2008 | Baltic Transport Journal | 35

Report
Academy of Fine Arts in Gdańsk students design naval architecture
Tug boats – the showcase of a
1 st design: a tug-boat by Przemysław Kamiński
This study presents the works of students from
the Naval Architecture Studio in Gdańsk.
The Laboratory, which is a part of the Department of Interior
Architecture and Design, is involved in searching for
new ideas and concepts for ship architecture. The below
designs produced by students show the areas of tug boats’
development never explored before.
Seaport just like a historic centre is an important area in
creating the city’s image. Monuments and narrow streets are typical elements
that attract tourists whereas the port infrastructure, its capacities and technical
parameters, is a testimony of the city’s economic strength. What about
a unique port’s infrastructure that can become a tourist attraction itself and
a marketing tool for the port’s imagebuilding. Let us take the tug boats, the
fundamental part of any port, and see if thay can be used this way.
What makes the tug boats attractive, seems their architecture, or to
be more precise, the emotions aroused by their appearance. Charlotte
Dundas is recognized as the first tug boat in the world – a vessel which
pulled two 70-ton barges for 30 kilometres in March 1803. The voyage
was at a “dizzying” speed of 3 km/h.
The architectural design of modern tug boats was formed as early as at
the end of the 19 th century. What makes them so unique is the metaphysical
emanation of power, the grandness of their movements, the solidity of their
bodies, and the characteristic noise: “tug, tug, tug, tug”…
The appearance of tug boats reflects the distribution of functional zones
and this has not changed much in spite of the technological development and
the variety of types and sizes of them. In spite of their small sizes tug boats
are among the most complicated vessels, both in terms of their technology
36 | Baltic Transport Journal | 3/2008
and functionality. They combine two phenomena that seem contradictory:
power that’s provided with massive engines, and the incomparable precision
of movement obtained with the digital system of navigation and control.
High powers provide tug boats with low velocities combined with the
great towing power; therefore, visually they personify power and not dynamics.
Their hulls feature a rounded and soft shape. Unlike fast vessels,
they are deeply immersed, and their low and free sides lower the gravity
centre visually and emphasize their solidity. The box-like shape of the superstructure
features no aerodynamics. Vertical walls dominate. The whole
architecture of tug boats is supplemented with a small, usually one-man,
wheelhouse with a characteristic form that resembles a diamond. Moreover,
the movements of tug boats are unique. They do not cross water, as larger
vessels do, but rather push their way through with a wave of water in front.
The combination of technical and functional issues in a small space
together with modern technology makes tug boats one of the most interesting
designing problems. Perhaps even more interesting on an architectural
than an engineering level.
Designs prepared by students of the Laboratory have three characteristics.
First, they represent the model designer’s view of ship architecture.
This point of view on port tug boats enables the development of a product
with new elements that enhance its quality. It is connected with a broad
vision of the design which goes beyond the routine functional, technical
and economic contexts. The second feature is the change in the hierarchy
of individual design elements. Functional and architectural solutions are a
priority, not the technical ones. Thirdly, students base their work on existing
and actual design limitations: a hull, its bulkhead partitions, a power
plant and the location of key equipment on the vessel.
2 nd design: a tug with a crane-alike wheelhouse by Michał Górzyński

modern port
The above approach has been the basis for developing designs in tug
boat architecture, which due to its small scale and high level of complexity
is an excellent field for designers in their search for innovative
architectural solutions.
The aim of students, apart from designing a functional arrangement
of the superstructure, is to improve the safety of navigation by enhancing
the working conditions of a wheelman and, first of all, by attributing
these qualities to the traditional architecture of a tug boat that will turn
it into a showcase of the modern port.
***
The first design features an apparently traditional form of a tug boat.
Nevertheless, it encompasses several new and unconventional solutions
for the routine problems in tug boat architecture.
The shape of the superstructure is subordinated when providing
a wheelman with optimum visibility, i.e., the primary factor that
guarantees the safety of navigation. The designer has analysed both
the operation of a crew and a boat and then proposed a number of
innovative solutions.
The body of the wheelhouse does not feature typical cants in the corners.
The number of load-bearing structures has been restricted to the
four main pillars and has shaped the wheelhouse such that its structure
minimizes the generation of a dead field. The most interesting element is
the solution of the chimneys which limit visibility. They have been shaped
so they are within the “shadow” cast by the wheelhouse structure. This solution
has been generated in 3-dimensional models of the tug boat body.
In spite of its saturation with innovative architectural solutions, the design
has maintained the traditional image of tug boat architecture.
***
The second project differs considerably from the above solution. The very
appearance, which does not remind one of a typical tug boat, indicates the
innovative approach. This design comes with the wheelhouse resembling a
crane or an excavator cabin, in which an operator occupies his seat in a small
one-man cabin that provides full visibility of the working site. This design is
an attempt to adapt a solution to the needs of a tug boat. The drop-like shape
3 rd design: a carusel tug boat by Daniel Januszewski
Report
of the wheelhouse provides a wheelman with excellent visibility of the water
surface, the equipment on the deck and upwards, of any larger vessels.
This design also contains the proposal for obstructing the visibility
by chimneys. However, in this case the author has decided to minimize
the bodies of the chimneys. One of the mufflers has been located in the
power plant with the other in the stern section of the superstructure
below the wheelhouse. Exhaust gasses are discharged on one side only,
while the other side remains unobstructed. The new image of a tug boat
is supplemented with a new interior design, the body of the superstructure
and the shape of the bulwark and the guard rail.
***
In both presented models the colour design and deck equipment
have been purposely omitted in order to exhibit the body of the superstructure.
Both designs contain some concepts that require further technical
development.
In 2007 new architectural designs for an innovative carousel
tug boat were developed. This time the task of the students was to
verify the possibility of designing original architecture that would
be characteristic for this type of tug boat. By combining the innovating
tugging technology (developed at Novatug, a Dutch company)
with the original architecture we decided to create an easily
recognisable new class of products.
The technical novelty of carousel tug boats involves placing the
tug winch on a ring, on which it can rotate freely. The ring of a winch
is the main limitation when designing a superstructure which has to
be enclosed inside of it. Moreover, a wheelman or a winch operator
should be able to watch the head of the winch in any position. These
limitations, which are characteristic only for carousel tug boats, require
unusual architectural solutions.
The aim of this carousel tug boat design has been to provide easy
communication for the crew on the open deck. The design features a
novel and unique spatial structure. Under the winch ring there is a
circular corridor and the first cylindrical storey of the superstructure.
A second storey of the superstructure has been placed on the winch
level along with the inputs of air to the power plant and the chimneys.
The wheelhouse occupies the top position.
An important element here is the special colour arrangement for
this body whose aim is to improve the visibility of the boat on water, as
well as to emphasize the characteristic architecture of this design.
***
The presented designs provide new architectural concepts and prove that
pattern designing is not only about the superficial development of forms, but
about the whole products, stepping into their bodies and the internal tissues.
Pattern designing is one of the chief elements of innovation. It is the basis both
for the development of individual sectors and the economy as such, and with
creative cooperation between the engineers and the designers should result
in developing really innovative products, not only better than those of the
competitors, but ones which will lay out the new development roads of tug
boats as the showcase of a port. And since no port can live without tug boats
any way, why let them be just tug boats and not something more?
Paweł Gełesz
The author is an industrial designer, an assistant of Professor
Andrzej Lerch at the Naval Architecture Studio at the Academy
of Fine Arts in Gdańsk.
3/2008 | Baltic Transport Journal | 37

Report
Göteborg Hamn leading the world’s port business to ecology
Cold ironing can reduce air
pollution and noise at the port
Photo: Port of Göteborg
Nowadays we are accustomed to pay attention to reducing air
emissions from power stations, factories and cars.
Authorities of countries from
all over the world have agreed
to reduce their emissions and
sign proper resolutions. Those
actions have a positive effect.
However, another problem
has surfaced – emissions from ships.
Shipping transport is continuously growing,
ships are bigger and they carry more and more
goods, causing emissions to grow significantly. If
nothing is done, ships’ air emissions will exceed
those from land-based sources by 2020. There are
attempts to minimize this impact in many ways,
e.g., in the Baltic Sea area ships are obliged to use
low sulphur fuel (a sulphur content not exceeding
0.1% by mass). This way they emit less sulphur
oxide SOx, which is one of the most dangerous
factors contributing to air pollution. Negative
aspects of shipping are especially important for
38 | Baltic Transport Journal | 3/2008
people living in port cities. The ships still produce
harmful fumes, noise and vibrations when berthed
at the port. It affects the whole environment;
the health of port workers, onboard personnel,
and the inhabitants of port cities. That is why authorities
from many countries have joined forces
to fight this problem.
The idea presented by Stora Enso
One option is to reduce the negative impact
of ships during their stay in the port.
While a ship is berthing its auxiliary engines
are used for lightning, heating, hot water, fans,
engines, etc. These operations consume diesel
or heavy oil and generate exhaust fumes and
noise. The solution is “cold ironing”, also called
“shore-side power”. “Cold ironing” means
supplying vessels with electricity from the
shore during their stay in port enabling their
auxiliary engines to be shut down and not
use fuels to run necessary operations. Today
this solution is found in a few ports around
the world. The world’s leader here is the port
of Göteborg, Sweden, which first introduced
this concept. The idea was proposed by Stora
Enso, a global pulp and paper company, which
wanted to be environmentally friendly. The
idea was met with interest in Göteborg and
special cooperation between the ship-owners
Cobelfret and Wagenborg Shipping and the
electrical equipment supplier ABB was established.
Some funds were obtained from the
Swedish government. The first ro-ro vessel
successfully used the new high-voltage connection
in January 2000. Expectations came
true – this allowed avoiding forestalled harmful
emissions, noise, and vibrations during an
ordinary ship’s operation while in port. It was
the first electrical connection for ro-ro vessels
in the world; even though low–voltage connec-

tions already existed for ferries. The source of
shore-side electricity is also environmentally
friendly – the Port of Göteborg uses renewable
energy sources such as wind power.
It takes 10 minutes
“Cold ironing” gives the best results in
the ports where specific vessels (with appropriate
installation onboard) frequently
arrive and stay for a longer period of time.
General principles for modern high-voltage
systems can be seen in the Figure 1.
The ship is connected by a high-voltage
cable to the shore-side electrical connection
point. The power is distributed to the connection
point from the local high-voltage
sub-station. The high-voltage cable allows
transferring 25 times more power than a
standard 400 V cable of the same dimension.
It takes 10 minutes to connect the ship to the
shore-side installation and to switch off the
auxiliary engines. The exception is during
bunkering operations when the auxiliary engines
are run for safety reasons. High-voltage
power (6-20 kV) is easily available when
a quay is located close to a residential or industrial
area. In the case of Europe almost
all ports have high-voltage electricity available
nearby. And, what is needed onboard a
vessel? An entrance for connecting a cable,
a socket for the cable and the transformer
(preferably located near the main switchboard
in the engine room) which transforms
high-voltage power to the 400 V power used
on the ship. There are some parameters that
must be taken into consideration when discussing
the system’s costs and requirements:
• shore-side frequency (50 Hz in Europe),
• onboard frequency (50 or 60 Hz),
• shore-side supply of high-voltage electricity
(voltage, distance to the nearest supply
point and installation practicalities),
• required power level,
• available space for the onboard transformer
(also, if this space is weather-sheltered
or not) and the weight restrictions of the
vessel,
• onboard cable installation practicalities,
• cost for shore supplied electricity versus
the electricity generated onboard.
The parameters that have the biggest impact
on installation costs for shore-side electricity
are changing the onboard frequency
and supplying the quay with high-voltage
electricity. “Cold ironing” may also be realized
without an onboard transformer. Older vessels,
like M/S Stena Scandinavica (Stena Line),
receive shore-side electricity, transformed onboard
from 11 kV to 400 V and carry only a
connecting, high-voltage cable. The ship uses
shore-side power from 1990, at which time the
Fig. 1. Shore-side, high-voltage power installation.
onboard
transformer
400V
6-20kV
Port of Göteborg started to supply low-voltage
shore-side power to ferries.
Vessels are the main source of SOx
The costs of supplying high-voltage power at
the quay-side may vary greatly as it depends on
the distance to the nearest high-voltage supply
and other local conditions. In spite of this, several
independent studies have shown that costs (total
costs for society) of onboard power generation
are much higher than the total direct costs for the
ship-owners and the ports. The cost of electricity
in Europe is high, but it may be lowered for “cold
ironing” purposes if there is a tax exemption.
Due to the fact that fuel prices with a low sulphur
content are rising, “cold ironing” will still allow
significant savings. Many organizations, like the
Port of Göteborg together with Stena Line, the
European Commission, IMO and ISO, work to
develop harmonized international standards
concerning the voltage level, frequency, electrical
outlets and plugs, capacity for the electrical outlets,
safety functions and cable location onboard
ships and on land. These actions speed up the
implementation of the process.
According to expectations in Göteborg
the carbon dioxide emissions from shipping
would be reduced by 10 percent if all vessels
would have access to the electricity supply in
the ro-ro terminal, assuming the electricity
is environmentally labelled. The reduction
in sulphur oxide and nitric oxide emissions
could be even greater – around 95 percent.
This should also positively affect tourism.
Authorities at the Port of Lübeck, Germany,
went on with a project several years
ago on the implementation of Agenda 21 in
connection
point
6-20kV
6-20V
sub station
Report
20-100kV
European ports by the example of Lübeck-
Travemünde. The parties involved were
Lübeck’s municipal utility and GAUSS mbH
(Environmental Protection and Safety in
Shipping company). The project examined
the effect of emissions from different
sources in the Lübeck-Travemünde area and
analyzed what could be done to reduce emissions.
Research showed that ships and ferries
are the main source of sulphur dioxide and
nitrogen oxide emissions and “cold ironing”
is the most favourable solution.
Honours for the Port of Göteborg
Until now, thirteen ports from all over the
world have implemented the idea of shore-side
electricity. In July they will convene at a conference
in Rotterdam to sign a climate declaration.
The declaration will consist of five parts.
The Port of Göteborg is one of the world’s
leaders when it comes to “cold-ironing” and
has been asked to prepare one of the sub-documents
related to shore-side electricity. “It is
quite an honour that the Port of Göteborg has
been given such a prominent role in this collaboration
and even more so in light of the fact
that we are much smaller than the other ports,”
says CEO Magnus Kårestedt. “We have been
presented with a unique opportunity to assist
the biggest ports of the world in reducing their
environmental impact.” Other ports involved
in this collaboration are: Shanghai, Santos,
Melbourne, Singapore, Tokyo, New York and
New Jersey, Houston, Los Angeles, Hamburg,
Antwerp, Amsterdam, and Dubai.
Barbara Rogalska
3/2008 | Baltic Transport Journal | 39

“Fresh thinking can
lead to fresh air.”
AMP can be fi tted right onto the ship itself, with a single
high-voltage cable, or it can be fi tted inside a container
that’s placed on the ship, for a truly modular power
source that connects to the dock or a fl oating barge.
Cavotec in Action
We’re all concerned about the environmental impact of shipping.
After all, an average vessel call creates as much N2O as 69,000 diesel
truck miles – the equivalent of driving three times around the world.
That’s why Cavotec developed the AMP (Alternative Maritime Power)
solution. It lets vessels switch off while moored. Instead of using
their diesel engines to power air conditioning and controls, they can
plug in for electrical power. For more about our maritime solutions,
please visit www.cavotec.com

Newsletter
MAY/JUNE 2008
The BPO Newsletter is prepared by the Baltic Transport Journal
www.baltictransportjournal.com
BPO Seminar 2008 in Brussels
Transport investments in the Baltic Sea Region
The Annual BPO Seminar, which was held on April 16 th
in Brussels, gathered more than 20 persons including
members of the European Parliament, representatives
of transport trade organisations, ports, etc.
Cities and ports innovating
for an inter-dependent
future
The Ports of Stockholm will host the 11 th international conference
“Cities and Ports innovating for an inter-dependent future.”
The conference, organized by the International Association of Cities
and Ports (IACP), will be held from June 23-27, 2008 at the Norra Latin
Conference Centre in Stockholm and is expected to attract around
500 people. The theme of the conference will be the collaboration
between cities and ports innovating for an inter-dependent future.
During the event participants will have a great opportunity to exchange
experiences, ideas, strategies and, above all else, to innovate
in order to advance the collective goals and objectives of cities, ports,
and the interests of the stakeholders. International world conferences
are held every second year, the last conference took place in
Sydney in 2006.
All details about the conference are available at:
www.citiesandports2008.com
During the meeting, which took the form of a working
lunch, a few speeches were given including the welcome
addresses by Mrs. Anne E. Jensen (Member of
the European Parliament and Member of the Transport
and Tourism Committee of the EP) and Julian
Skelnik (BPO Chairperson) and a separate presentation given by
prof. Andrzej Grzelakowski, Gdynia Maritime Academy, who gave
a summary of the newly published Baltic Maritime Outlook 2007.
Further presentations were given by Mr. Björn Neckman, Head of
Public Affairs, Ports of Stockholm, who presented the strategy of
the Nynäshamn project and Mr. Robin MacLeod, Technical Director,
DCT Gdańsk SA, who gave a presentation on the deep sea
container terminal in Gdańsk completed in October 2007. During
the seminar the tremendous growth in containers handled at Baltic
ports was discussed. In order to follow the growth of the cargo
flow, the container terminals’ capacity has to be enlarged. Prof.
Grzelakowski forecasts a further concentration in container shipping.
The process of concentration is to be fuelled by the development
of the Motorways of the Sea and will benefit bigger and better
located ports in their main logistics supply chains in the Baltic. The
meeting was organized by BPO in cooperation with Mrs. Anne E.
Jensen and enjoyed with great interest. The event will be organized
again in future years.
BPO General Assembly 2008
Climate change, cargo handling, efficient
land utilization, hinterland connections
Date: 11-12 September 2008
Venue: Lübeck, Germany
Please, book the date in your calendar for
this year’s BPO General Assembly which is
organized in cooperation with the Port of
Lübeck. The Conference will be dedicated
to innovations, port efficiency, the environment,
and client changes in the ports.
The entire event will gather around 80-100 top executives from all
the major Baltic ports, speakers representing governments, politics,
academia, the transport sector, media, etc.
For more information about the agenda, hotels,
and other details, please follow the updates on:
www.bpoports.com
3/2008 | Baltic Transport Journal | 41

New faces in BPO
Ryszard Strzyżewicz
Ryszard Strzyżewicz
was named
the new President
of the Board in the
Port of Gdańsk
Authority SA at
the beginning of
April. Sławomir
Wrześniak is the new Vice-President for Financial
Affairs. The Supervisory Board also
re-appointed Julian Skelnik to serve another
term in office as Vice-President for Marketing.
Mr. Skelnik is also the Chairperson of
the Baltic Ports Organization. In order to
make his international activity more effective,
in consultation with Minister of Treasury,
he resigned in late April and became proxy
of the Board responsible for marketing.
Ryszard Strzyżewicz (aged 57), graduated
from the Faculty of Economics and Maritime
Transport at the Gdańsk University. He
recently headed the Department of Economic
Development at the office of the
Pomeranian Province’s Marshall and worked
as the CEO of the Management Group
Pomerania SA.
Janusz Jarosiński
The Supervisory
Board of the Port
of Gdynia Authority
decided
to form a new
Board of Directors.
Following
the interviews
with all candidates,
Janusz Jarosiński, the former Vice-
President for Marketing and Development,
Port of Gdynia, was named their new President
of the Board. Krystyna Szambelańczyk
was nominated as Vice-President for Financial
Affairs and Walery Tankiewicz was
appointed as Vice-President responsible
for managing the company’s property and
infrastructure.
Janusz Jarosiński graduated from the Faculty
of Economics and Maritime Transport at
the Gdańsk University. He started to move
up the career ladder in the Port of Gdynia
in 1977. In 1991, he was elected a member
of the board. At the end of 1999, he was appointed
as President of the Board. He performed
this function for three years. Then,
he was Vice-President of the Board.
42 | Baltic Transport Journal | 3/2008
Two projects in accordance with BPO’s aims
Integration and
The Baltic Ports Organization will be an active participant for two
upcoming projects: TransBaltic and SPICES. The latter stands for
Supporting Port Innovations and Cities Enhancing Sustainability
and is connected to the natural environment and the port-city
relations while TransBaltic corresponds to transport conceptions
and strategies in the area.
It should be stressed that both projects
are in accordance with the Baltic Ports
Organization’s aims. We would like to
be a part of the discussion about future
transport strategy for the Baltic. Futhermore,
we want to include the environmental
issues to BPO’s agenda, says Bogdan
Ołdakowski, BPO Secretary General.
Integrated transport system needed
TransBaltic is planned within the framework
of the transnational Baltic Sea Region Programme
2007-2013. The assumption within the project is
that compatibility of national transport networks
and logistics solutions in the countries surrounding
the Baltic Sea is still too low. This creates a
barrier to economic prosperity and is a challenge
for the sustainable development of the whole Baltic
Sea Region, especially in the context of a fast
growing trade exchange between the European
Union and the Russian Federation, the Far East
Particular aims of SPICES
countries and, in the near perspective also India.
Another challenge is related to the optimisation
of the decision-making processes in the field of
transport which could bring maximum benefits
for regional development.
The TransBaltic project, led by the Region
Skåne in the southernmost part of Sweden, aspires
to prepare and implement concrete transport
development solutions towards an integrated
transport system in the BSR based on an agreed
pan-Baltic vision, strategy and harmonised action
plan. These require an overcoming of national
short-term interests and a launching of a comprehensive
process with active participation of
the relevant actors – public authorities at the local,
regional, national and pan-Baltic level, as well as
actors representing research and education institutions
and business life.
The initiative is partnered by about 10 regions
around the sea. Organizations already involved in
the consolidation and harmonisation concepts are:
CMPR Baltic Sea Commission (BSC), Baltic Sea
• to increase the speed of sustainable development measures implementation
in the ports and cities of the BSR;
• to reduce the environmental negative impact from maritime transports
through innovative technologies;
• to increase the cooperation between the ports and cities;
• to improve the marine environment and the air quality, and to reduce the climate
impact of the ports’ activities and noise in the ports and their surroundings;
• to help strengthen the energy-efficient maritime transports through implementation
of pro-active and integrative measures in the field of sustainability,
meanwhile reducing the climate impact of transports on land;
• to help make unsustainable behaviour unattractive through implementation
of economic incentives:
• to increase the competitiveness of the Baltic Sea Region’s ports through innovative
measures;
• to create positive image of ports among the cities.

ecology on the agenda
States Subregional Cooperation (BSSSC), Baltic
Development Forum (BDF), and Baltic Ports Organization
(BPO). An intensive dialogue will also be
held with state ministries and private stakeholders in
order to adjust the project to the needs and expectations
of transport decision-makers and operators.
Continuation of the New Hansa of
Sustainable Ports and Cities
During the last couple of years container traffic
has increased tremendously in the ports and
it is envisaged to triple by 2020. This puts a lot of
pressure on existing ports expansion, new ports
development, and environment protection. The
issue of mitigation and adaptation to the climate
change has risen on the European agenda as the
key challenge in building a sustainable future. The
changes are already now striking the coastal regions
in the area being not only words but reality.
To support ecologically, socially, and economically
sustainable ports in the BSR, the New Hansa
of Sustainable Ports and Cities project was carried
out during 2003-2005. It was a joint initiative of 18
ports, cities and other partners from all sides of the
Baltic Sea. The purpose of the new project SPICES is
to continue and strengthen the cooperation towards
regional sustainability, aiming to address ecological
challenges through a close, hands-on cooperation
between the ports and cities. The goal is to find concrete
ways, and make practical investments, to address
the challenges facing the ports in a joint cooperation
and implementation manner and to transfer
the experiences to other European regions.
Particular aims of TransBaltic
• to streamline national and regional transport perspectives
based on a common approach towards the integrated
development of the whole region and its prospective gateway
function to serve trade flows on a global scale (e.g.,
USA, Russian Federation, China/India);
• to harmonise actions by the pan-Baltic organisations operating
in the field of transport and regional development in
order to consolidate the position of the Baltic Sea Region
as a global player;
• to support the implementation of EU policies and to contribute
BSR’s stand points to them;
• to prepare larger investment interventions aimed at
resolving the most burning interconnectivity and interoperability
problems in a pan-Baltic perspective;
• to bridge over incompatibilities in national planning
methodologies and plans based on debates with
representatives on a national level and with private
stakeholders;
• to better integrate individual parts of the region in the
transport system of the BSR through joint actions and
jointly developed solutions on the ground, with special
focus on Russia;
• to provide visible synergies between individual and
area-limited transnational transport projects within the
BSR and to serve as an umbrella for them;
• to test and demonstrate public-private partnerships
(national authorities, regional authorities, transport
operators, manufacturers) for speeding up necessary
investments and amendments in legislation and administrative
procedures of the BSR countries.
3/2008 | Baltic Transport Journal | 43

What’s new in the ports?
The Port of Göteborg received yet another
environmental award for its shore-side power
supply initiative (more information on the subject
on page 38). The Clean Seas Award was
presented by Lloyd’s List at a special ceremony
in London. Other nominated companies were
Beluga Shipping, International Salvage Union,
Subsea Industries and Wallenius Wilhelmsen.
The Port of Södertälje is pushing forward
the purchase of a larger harbour mobile crane.
The reason is the rapidly expanding growth of
container customers. In the past year the Port
of Södertälje has increased its container growth
by 50% (one of the highest figures in Sweden)
and its turnover was 58,500 TEU. The increased
pressure, particularly with regard to containers,
paved the way for exchanging one of the
existing cranes to a new larger harbour mobile
crane. The new crane is a Gottwald HMK 6407
and weighs in at 420 tons. It has an 18% greater
acceleration and is 12% faster. The crane has
a much greater outreach than both present
Denmark
1. Aabenraa
2. Århus
3. Copenhagen/Malmö
4. Fredericia
5. Horsens
6. Middelfart
7. Nakskov
8. Nyborg
9. Rønne
Estonia
10. Tallinn
Finland
11. Hamina
12. Hanko
13. Helsinki
14. Kemi
15. Kotka
16. Naantali
17. Oulu
18. Rauma
19. Turku
20. Vaasa
Germany
21. H-E Rostock
22. Lübeck
23. Seehaven Rostock
24. Stralsund
25. Wismar
BALTIC PORTS ORGANIZATION
Secretariat Office – Actia Forum Ltd.
ul. Pułaskiego 8, 81-368 Gdynia, POLAND, ph.: +48 58 627 24 67, fax: +48 58 627 24 27
e-mail: bpo.office@actiaforum.pl, bpo.gs@actiaforum.pl, http://www.bpoports.com
44 | Baltic Transport Journal | 3/2008
4
1
5
6
2
22
8
7
37
23
21
25
cranes and it manages Panamax vessels. The
crane will be ready for use by mid-July.
Delta Shipping Lines strengthens its network
of connections between the Baltic Ports. A new
container service was launched at the Port of
Gdańsk. The 1A ice-class container ship Delta
St. Petersburg (carrying capacity of 917 TEU)
provides regular calls at GTK (Gdańsk Container
Terminal) on a once a week basis as part of the
short sea shipping service on the route Hamburg-Rotterdam-Gdańsk-St.
Petersburg. Delta
Shipping Lines has also increased its service
coverage by adding a weekly call from Aarhus
to St.Petersburg in April.
The first section of the newly built berth P8 in
the shipyard basin in Rostock-Warnemünde
was put into operation on 21 April 2008. The
construction of the EUR 10m project was executed
by the consortium Züblin/Aarsleff,
commissioned by Hafen-Entwicklungsgesellschaft
Rostock in the summer of 2007. A new
sheet-pile wall with a length of 360 m was constructed
approximately three meters in front of
40
38
36
49
3
9
24
32
33
48
46
44
43
42
39
41
45
47
31
20
30
18
19
16
12
34
26
28
29
14
17
15
13
27
10
11
the old wall and anchored on land. In a second
phase of construction, continuing until the end
of 2008, an additional length of 95 m will be
built. The configuration of the berth P8 will be
changed to incorporate a bend in the quay after
a length of 412 m, connecting an additional
53 m of quay length.
Almost 300,000 passengers are expected to
visit Helsinki during the summer cruise season.
During peak times there will be as many as
six ships docking on the same day, and a total
of 275 calls have been reserved so far. There
will be more than 60 ships varying from 3,000plus-passenger
jumbo cruise ships to a 95-passenger
sailing vessel. Twelve ships will make
their first call at Helsinki, and exchange calls will
number 18.
83 river cruise vessel calls are expected in the
Port of Szczecin from May to November this
year. Szczecin has for many years been a regular
river cruise destination thanks to the inland
waterway connection to Western Europe by
the Odra river.
35
Latvia
26. Port of Liepaja
27. Riga
28. Ventspils
Lithuania
29. Klaipėda
Poland
30. Gdańsk
31. Gdynia
32. Świnoujście
33. Szczecin
Russia
34. Kaliningrad
35. St. Petersburg
Sweden
36. Copenhagen/Malmö
37. Göteborg
38. Helsingborg
39. Kalmar
40. Karlshamn
41. Karlskrona
42. Mönsterås
43. Norrköping
44. Oxelösund
45. Stockholm
46. Södertälje
47. Umeå
48. Västerås
49. Ystad

Focus
Ro-ro traffic on the Baltic
The division of the Baltic ferry market continues
b i m o n t h l y - d a i l y c o m p a n i o n
Growth in tonnage higher than
in the number of vessels
The Baltic Sea is the busiest ferry navigation area in the world.
The ferries of the Baltic operators make more voyages than all the
remaining ferries in the world.
They handle 25% of all the lorries
and 36% of all the private cars
shipped by sea.
This is accomplished by a
fleet of 110 vessels, which at the
same time offers cargo lanes and
passenger seats for everybody, and over 40 ships
dedicated for the transport of vehicles only. In
our classification, we have used other criteria
than the official ones, which is to say that we
also consider the units carrying more than 12
passengers as ro-ro vessels since they are exclusively
lorry drivers. The figures do not include
cabotage, which has been particularly developed
in Denmark and Estonia, with the exception of
Mols Linien, Destination Gotland and Rosmorport.
As far as ro-ro vessels are concerned,
we have skipped the shipowners whose vessels
qualify as industrial carriers and are utilized to
handle Swedish and Finnish paper exports.
The Baltic navigation’s peculiar trait is its
diversification on the technological and exploatational
levels, not to be met in other water
zones, and this is why the “ro-pax” column in
the table presented next page may appear oversimplified.
It includes the cruise ferries and the
typical ro-pax units, double-end ferries and
combis as much as the traditional multipurpose
ferries configured – very often by way of
their redevelopment – to suit the needs of individual
lines. We have skipped the ships and
services of a purely passenger character and
hence such operators as ACE Link and Linda-
Line are not included in our index.
Also routes are diversified in a similar way
– from a 20-minute service via Øresund with 126
one-way sailings per day to the line between Helsinki
and Travemünde where a passage lasts more
than 24 hours (27 hours by Star class vessels and
36 hours by the Hansa class to be precise).
Focus
Contrary to container shipping, the growth
in the number of ships in the Baltic ferry industry
has been relatively slow. An increase in
efficiency is most often accomplished through
the replacement of tonnage or its redevelopment.
Container ships do not age in a “moral”
sense while ferries do so relatively quickly. The
service between Helsinki and Tallinn serves as
a good example; two years ago, two multipurpose
ferries, three High-Speed Crafts which
did not carry lorries, and two ro-ros were operated
on this service. All seven vessels were
replaced by one cruise ferry and three so-called
fast shuttle ferries while the replaced HSCs
were sold to a buyer outside the Baltic Sea area
and other vessels redeployed. Also two services
owned by Finnlines underwent similar modernizations
– the new units are definitely larger and
faster. Three brand new ro-paxes with GT totalling
46,000 joined the service on the Helsinki-
Travemünde line, while two similar units began
to operate on the Malmö-Travemünde line.
continued on page 46
3/2008 | Baltic Transport Journal | 45

Focus
Growth in
tonnage higher
than in
the number
of vessels
continued from page 45
The highest increase in the number of vessels
took place on the lines interconnecting Sweden
and Poland; however, the majority of these were
ships that changed owners or charterers within
the Baltic Sea zone. The ferries, most recently
launched in the Unity Line services, are Wolin
– previously known as Sky Wind (purchased from
Tallink) and Kopernik – formerly called Vironia,
which was acquired from the shut-down line between
Kotka and Sillamäe. Also Stena Line’s new
ship – Finnarrow – operated on the Gdynia-Karlskrona
line – has been chartered from Finnlines.
The number of lines has stabilized as well. Last
year, a new connection between Trelleborg and
Świnoujście was launched which, contrary to the
shut-down of the Kotka-Sillamäe line, has all the
prospects for success.
Baltic ferry operators 2008
46 | Baltic Transport Journal | 3/2008
The situation in ferry shipping has not
changed much. From a technical point of view,
the number of “pure” ro-pax vessels has been on
the increase (there are 50 of them now) while the
number of HSCs has definitely decreased (from
14 to 10 in the course of two years). On the redeveloped
vessels, the proportion between the room
for passengers and cargo has changed in favour of
the latter but at the same time, the total number
of passenger seats has increased. For example, two
years ago Finnlines had 500 passenger places on
its four vessels operated under the company’s flag
route from Helsinki to Travemünde and today it
has 1,700 seats on five vessels. Moreover, when
one takes into account the shortening of passage
time, Finnline’s carrying capacity has increased
nearly five times.
A characteristic division of the market has
also been continued. There is a great competition
among operators connecting the cities of Stockholm,
Helsinki and Tallinn, which is particularily
vivid on the Helsinki–Tallinn run where five operators
compete over passengers with cars (and
six companies compete over foot passengers).
Finnlines, Viking Line and Tallink Silja compete
between one another on the shortest sea passage
between Sweden and Finland. On the other
routes run in this area, clients have the choice of
at least two different carriers.
The situation is different in the western part
of the Baltic Sea where only one operator or
various forms of duopolies are to be found on
the busiest routes. For example on the Helsingborg-Helsingør
line, Stena Line has its shares
in both brands – Scandlines and HH-Ferries.
Connections between Sweden and Germany
are an exception since three operators sail to
Germany from Trelleborg and Malmö; two
ports situated not far from one another.
In the field of ro-ro shipping, the new
Transatlantic AB service operated under the
trademark of TransLumi has had the most
interesting innovation as far as trade and
technology are concerned. Three ships operated
between Kemi and Oulu and the ports
of Lübeck and Göteborg are at the same time
utilized as industrial carriers (about 60% of
their capacity) and liners. The TransLumi
ships were optimized for the use in SECUtype
container transport. The launching of
this service caused the Finnlines’ Kemi–
Oulu–Lübeck line to be terminated.
The final withdrawal of the Greek group
Attica (under the trademark of Attica Ro-Ro)
from regular trade on the Baltic Sea has been
an important event, too. The operator’s last enterprise
– the Rostock-Uusikaupunki ro-ro line
– has also been shut down.
It appears that a still missing ro-pax service
between the eastern ports of Poland and Helsinki
is the only gap to be filled on the current map of
ferry connections on the Baltic Sea.
Marek Błuś
Ships total Ro-pax vessels Ro-ro vessels HSC Ro-pax services Ro-ro services Ports served
Finnlines 29 14 15 - 4 5 14
Stena Line 17 12 4 1 8 2 15
Tallink 17 15 2 - 5 1 9
Scandlines 16 11* 5 - 7 3 15
DFDS 12 9 3 - 6 2 11
Transfennica 8 - 8 - - 5 6
Viking Line 7 7 - - 5 - 6
TT Line 6 6 - - 2 - 3
Unity Line 6 1 5 - 1 2 3
Mols Linien 5 2 - 3 3 - 4
Color Line 4 4 - - 2 - 4
Polferries 4 4 - - 3 - 5
Bornholmstrafikken 4 3 - 1 3 - 4
Destination Gotland 3 2 - 1 3 - 4
Transatlantic 3 - 3 - - 1 4
Eckero Line 3 2 1 - 2 - 4
HH Ferries 2 2 - - 1 - 2
Nordic Jet 2 - - 2 1 - 2
Superseacat 2 - - 2 1 - 2
*one vessel is co-owned by Scandlines AG and Stena Line
The table does not include one-ship/one-line operators: SSC Ferries, Baltic Scandinavia Line, RG Line, Rosmorport, Orvelin.

Focus
Con-ro is the best solution
An interview with Jan Darski, director of Transfennica Poland
What are the major trends seen on the Baltic
ro-ro market now?
High operational speed is one of the demands
of the current market and another one is the
increased share of containerised cargo. It may
be of interest to mention that Transfennica,
operating only chartered ships, also charters
some from its parent company Spliethoff,
and these are the most modern and biggest
vessels in the Transfennica fleet. These ships
also have a significant container capacity in
lo-lo mode in addition to their major function
as ro-ro vessels. They are in fact con-ros
with one forward hold devoted to containers
handled in lift- on-lift off technology. These
ships also feature very spacious and high
ro-ro holds making them suitable also for
project cargo and other heavy and over-sized
units. This modern, state-of-the-art tonnage
operates on the route linking Finnish ports
with Antwerp in Belgium with a mid-stop in
Lübeck.
What about trade patterns on the Baltic
Sea? Can you observe any significant
changes?
There are some changes which also affect
Transfennica. In seaborne trade to Finland
export cargoes previously prevailed significantly.
This was mainly related to Finland’s
huge export of forest products. As the related
industry undergoes a major restructuring in
Finland this export downsizes, as does the
share of export of Finland’s trade balance. On
most Baltic and European routes operated by
Transfennica and other ro-ro operators, we
have noticed a growth in chemicals, various
new and used cars, and other wheeled cargoes
(such as construction machinery, etc.)
shipped from Germany or Belgium. Used
cars and machinery are mostly destined for
Russia and the Baltic countries via Finnish
ports, mainly Hanko. There is also a noticeable
traffic of new cars imported from Western
Europe to Russia and the former Russian republics
via Finland. Growth in the eastbound
direction, experienced in the port of Hanko,
is up 10 percent and 30 percent, depending
on the kinds of cargoes.
What does the trade balance looks like on
Transfennica’s “Polish route” which you
are responsible for?
Polish import cargoes dominate on our ships
connecting Poland and Finland, and these
are mainly paper products shipments. The
Photo: Piotr B. Stareńczak
imbalance is very significant. A small utilisation
in the Poland-to-Finland relation might
pose a problem for liner connections, but it
is eased by a mid-route call to Lübeck, where
more cargoes destined for Finland are taken
aboard. This enables us to optimize the liner
connection loop and ensures the overall effectiveness
and profitability, but is a setback
for those shippers who would like to see a
faster connection from Poland to Finland.
Among our advantages we might mention
the vast capabilities in handling and shipping
of heavy and oversized cargoes due to
the modern and flexible tonnage we operate.
We are, indeed, very competitive for such
cargoes. We also have some import cargoes
from the UK in Gdynia. It may take longer
for these cargoes shipped from Tilbury to
Hanko in Finland to get to Gdynia, but it
is still price competitive comparing to a direct
UK-Poland road transport connection.
The volume of these cargoes from the UK to
a Polish port is not very big now, but it is
steadily growing.
And what about Transfennica as a player
on the wider European market?
Transfennica has discovered new market opportunities
not related to Finland and not
even connected to its traditional area of operation
– the Baltic Sea. It is the liner connection
linking Belgium and Northern Spain.
This enables operators and shippers of road
trailers to send them conveniently avoiding
road traffic in France; therefore, this is a typical
“from roads to the sea” concept working
in reality. The French road network is well
developed, but it is heavily utilised and congested
at the same time. It is a different situation
on that route as compared to the Baltic
Sea region, where practically from the beginning
of freight ro-ro shipping, it was quite an
obvious solution due to geographical considerations
(with no road connections possible
in some cases or not economically viable in
others). It takes time to “educate” shippers in
Spain and Belgium that a seaborne alternative
to roads may prove profitable and convenient.
The Zeebrugge-Bilbao liner connection,
opened in October 2007, is currently
served by two ships with three weekly calls in
each port, but is probably poised for expansion
as we see a stable growth on this route.
Strengthening it with another ship is possible
in the near future.
Piotr B. Stareńczak
3/2008 | Baltic Transport Journal | 47

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Maritime
An extra 100,000 TEU for Gdynia and Kotka
The Baltic Container Outlook 2008
Today container transport constitutes
a level of 11.2% of the
global seaborne traffic.
It should be indicated that over one
billion tons of cargo are transported
in boxes. Thereby, a total amount of
143m TEU has been transported by
ships. At the same time, world sea ports
serviced 480m TEU. Singapore, with
a total turnover of 27.9m TEU, remains the
largest container seaport, surpassing Shanghai
(26.2m TEU) and Hong Kong (23.9m TEU).
Because of the rapid growth of Chinese seaports,
a change in the top position is expected
to come next year.
Quite important changes are also visible
on the European market. Last year in Rotterdam
reloading surpassed 10m TEU for the
first time, clearly indicating an increase in
market exchange on the Old Continent. The
rapid growth in maritime container transport
is also noticed on the Baltic Sea. The
total turnover of the seaports reached a level
of 7.5m TEU in 2007 (an annual growth of
16.8%). The most important Baltic container
market remains Russia with St. Petersburg
being the largest container port in the region.
They served a total of 1.7m TEU in
2007. However, exceptional changes during
the past year were observed in the ports of
Gdynia and Kotka. Both noted an increase
of 100,000 TEU in handling turnover, which
led to the result of 614,000 TEU in Gdynia
and 571,000 TEU in Kotka. The top places
were taken by St. Petersburg, Göteborg,
Gdynia, Kotka, Århus and Helsinki.
Along with the increase in handling,
the capacity and the amount of ships in the
global container fleet is increasing as well.
The number of ships used only for container
transport, i.e., full cellular ships has
increased by 11.5% (up to 3,904 units) and
their average capacity has increased by 4%
to reach a level of 2,417 TEU. At the same
time, the Baltic container fleet increased by
an additional 17 ships. Thanks to this, Baltic
container operators together possess a fleet
of 152 ships with a total capacity of 113.7
thousand TEU. The top positions among the
19 container operators are occupied by Unifeeder,
Team Lines and MSC. All container
lines currently working on the Baltic are
feeder vessels. For example, the largest Baltic
carrier Unifeeder connects six hubs on the
North Sea with 16 Baltic ports.
More detailed data and information can
be found in the second edition of the Baltic
Container Outlook prepared by Actia Consulting.
The report has not only data about
the current state of container transport, but
also the most important indicators influencing
the Baltic container market’s development,
such as economic development or
external trade changes. The report also includes
an extra part dedicated to the situation
on the Russian container market.
To order the Baltic Container Outlook
2008, please visit www.actiaconsulting.pl
dr Maciej Matczak
Actia Consulting/Actia Forum Ltd
3/2008 | Baltic Transport Journal | 49

Maritime
Towards a Destination Gdynia project
To those, who are not yet convinced
Although competitors have succeeded in taking their share in recent
years, the Port of Gdynia still remains the indisputable leader
in Poland when it comes to serving cruise ships.
However, the Port of Gdynia
Authority SA is not pleased
with its rate of growth as a
cruise port destination and is
about to carve its ambitions
into efforts towards attracting
even more ships to call at this convenient
and friendly cruise port every season. This
year’s cruise season in Gdynia commenced on
May 1 and will last until September 25, with 91
expected ship calls.
Gdynia is not missing the most important
networking event and forum of the global
cruise industry – the Seatrade Cruise Shipping
Convention in Miami.
Przemysław Marchlewicz, president of the
board in the Port of Gdynia Authority SA, when
asked about the main message on the current
state of the cruise market in Miami, commented,
“First of all it is widely agreed that the sector will
prosper and develop fast if oceans are not about
to dry out… There is however a shift in areas
with the highest growth potential from the cradle
of modern cruising – the Caribbean – to the
Mediterranean and Northern Europe, including
– not least – the Baltic. The fleet heading for the
Baltic destinations grows, so do the ships themselves.
This was visible already last year, when
the world’s fourth largest ship moored at several
50 | Baltic Transport Journal | 3/2008
Baltic ports, not omitting Gdynia. “This year we
also have a gross tonnage of 100,000 plus vessels
among those to be warmly welcomed in the
Baltic and at our port as well”, Marchlewicz declares.
“Judging from what may be seen in shipyards
and on orderbooks for new cruise vessels,
one should share the shipowners’ view on the
market prospects and be optimistic.”
Marketing and investments
The Port of Gdynia Authority thinks of
starting a special project – Destination Gdynia
– involving efforts from various interested parties,
not only the port itself, and utilizing European
Union funds for business promotion of the
region. The main partner would be the city of
Port of Gdynia cruise vessels traffic
Year Ship calls Passengers
2008 91* 100 000*
2007 87 89 000*
2006 89 94 135
* expected or approximate figure
Gdynia. The Port of Gdynia Authority is also
active and is determined to further increase its
role in international cruise ports organizations,
such as Cruise Europe.
“We are convinced and we have to convey
this message to those, who are yet not convinced,”
says Marchlewicz, “that our best interest
is in making efforts towards gaining more on the
cruise market. There are examples of ports on the
Baltic to be followed – ports of seemingly lesser
tourism importance or attractiveness – that have
managed to achieve larger ship calls numbers
and are developing faster as cruise destinations.”
Marketing is not enough, however. Marchlewicz
comments, “If one seriously thinks of
staying on the cruise market, it will not do
without investment. When it comes to really
needed investments, we will start to seriously
think of and devise a plan for a dedicated terminal.
At least a small one, providing a roof for
embarkation and disembarkment procedures
and passengers traffic management, with some
additional services, such as tourist information,
etc. Even though we are a destination,
and not a gateway or turnaround port – we
still have to establish a kind of terminal within
a 10-year perspective.”
Prestige for the port, money for the
region
Cruising is not a huge business for port
authorities. Ports with similar traffic to Gdynia
may earn some EUR 500,000 in port fees in
one season alone. For the port, cruise vessels,
to some extent, bring more benefit in prestige,
image and visibility on the market than in hard
cash. However, the business environment, the
whole region and many businesses involved, really
benefit from cruising. Hence Marchlewicz
suggests that the business environment relying
on income from tourists could participate more
in the costs of promoting Gdynia as a destination
port and in any investment necessary to
maintain a steady inflow of ships and passengers
or to provide a stimulus for growth.
New opportunities may also arise from
establishing a local airport – the idea strongly
promoted by the city of Gdynia governors
with a possibility of materializing within a few
years. A modern cruising terminal at the port
quay plus the nearby airport can make Gdynia
a potential turnaround port for Poland and its
southern neighbouring countries.
Piotr B. Stareńczak

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Hamburg: a port as a tourist attraction
Face to face with giants
A port as a tourist attraction –
they really know how to achieve
this in Hamburg.
“Metropolis on Water” – this slogan is used
to attract tourists, students, and investors from
all over the world to Hamburg. No other city
or region in Germany can boast of such an impressive
growth of visitors. But the goal of the
city is to join the elite top ten European tourist
destinations.
In the past several years Hamburg has invested
much in its tourist infrastructure, thus
creating a basis for the development of this
sector. The most important investments include
the development of the Congress and
Fair Centre, an airport, and the new terminal
for cruisers. In the future an impressive concert
house on the river bank, the “Elbphilharmonie”,
and the new Hafen-City real estate will
emphasize attractiveness, development and the
port atmosphere of Hamburg.
Last year the number of nights spent by
visitors, which is the most reliable indicator of
tourism development, amounted to 7.4m, an
increase of 3.1%. Germans represented 79% of
the total number of tourists in Hamburg last
year with 21% of foreigners. Arising tourism
from Europe, Russia and Arab countries, as
well as low-cost airlines’ expansion are of crucial
importance for these developments.
A bit of history…
However, the “Metropolis on Water” involves,
first of all, water and the port. In this
respect Hamburg is unique among world harbour
cities as the port is virtually in the city
centre. When walking along the Elbe river one
can admire the sailing ships, their manouvres,
docking and the loading operations.
Few people know, however, that in Hamburg
one can experience a fascinating journey
back into the history of the port without ever
leaving the coach.
On 7th March 1885 Hamburg entrepreneurs
and Senators established ‘Hamburg Free
Port and Warehouse Company’ (Hamburger
Freihafen und Lagerhaus-Gesselachaft HFLG).
At that time it was the largest warehouse complex
made of red bricks and founded on oak
piles; today it remains the biggest warehouse
complex in the world and one of the key tourist
attractions in Hamburg. The construction
was driven by the incorporation of the free city
of Hamburg into the customs zone of the Ger-
In 2007 visitors spent 7.4m nights in Hamburg
man Reich in 1888. After that date the port,
not the whole city, constituted the duty-free
zone. Therefore the port, and hence its warehouse
areas, had to be used effectively. The response
to that problem was the construction of
the “Granary Town” (Speicherstadt) in 1885–
1912. In 1935 HFGL merged with the ‘State
Quay Association’, resulting in the foundation
of ‘Hamburg Port and Warehouse Joint Stock
Company’ (Hamburger Hafen- und Lagerhaus
Aktiengesellschaft HHLA), today called ‘Hamburg
Port and Logistics Joint Stock Company’
(Hamburger Hafen und Logistik AG). With
almost four thousand employees, HHLA is the
largest employer in the Hamburg port and the
whole logistics sector of the land.
“Face to face with giants” is a coach trip along
container terminals and across the 800-year history
of the port in Hamburg. It is a trip into the
times when cargos were sacked and transshipped
manually, when ships stayed in port for so long
that every seaman had time to visit the Reeper
Bahn (Hamburg’s red light district).
…and a terminal of the 21 st century
There is a 60 m high view over the entire
port as one crosses the Kohlbrandbrücke
bridge and returns to the present. Special authorised
coaches take tourists to the very centre
of container terminals. The modern port
lets visitors behind its usually closed scenes. At
Maritime
the Burchardkai terminal one may see the gigantic
Van-Carriers, i.e., vehicles which transport,
sort and arrange containers while at Altenwerder
this is carried out by self-propelled,
semi-intelligent vehicles that move around
without human control. In both terminals the
whole picture is topped with huge cranes and
container ships moored at quays, with a capacity
of up to 8,000 containers.
CTA, i.e., the Altenwerder terminal, is one
of the most modern container terminals in the
world. A new concept of automation has been
designed and implemented here, with a large part
of the transshipping equipment and software innovatively
designed particularly for this terminal.
The aim of the changes was to increase the productivity
of container handling, rationalise and
improve the quality of labour, shorten the mooring
time at terminal quays, improve planning and
reduce costs. But the most important idea was to
reduce the necessary area, the number of cranes
and the length of quays compared to traditional
container terminals. All these achievements are
impressive and definitely worth seeing, whether
you are a maritime professional or a tourist looking
for something more.
During the trip you can find answers to
questions that you might ask yourself walking
along the bank of the Elbe. Before, only the
staff knew the port from this side!
Lukasz Soltysiak
3/2008 | Baltic Transport Journal | 53

The Port of Gdańsk in search for non-standard development paths
Why not a power plant?
Photo: Port of Gdańsk Authority SA
The Port of Gdańsk has always been the traditional transport route
for the Polish mining industry
As hundreds of thousands of tons of coal are transshipped in the
port, why not combust it locally? The Port of Gdańsk Authority is
analysing the construction of a power plant.
According to some forecasts,
electricity might be in short
supply in the Gdańsk Pomeranian
region within the
next 10 years. This may slow
down the economic development
and in several years bring a déja vu of
the communist times with dark streets and periodic
blackouts in housing estates. Therefore,
the construction of a new power plant seems a
matter of urgency for the region.
Fear of nuclear energy
One of the proposed solutions is to return
to the idea of a nuclear plant in the region,
54 | Baltic Transport Journal | 3/2008
first time developed at the turn of the 1970s
and whose construction started in the village
of Żarnowiec 80 km north-west of Gdańsk.
After the fall of communism the idea of the
investment was rejected in a referendum. In
Poland there were still vivid memories of the
Soviet power plant catastrophe in Chernobyl,
Ukraine, and the plant in Żarnowiec was to
be constructed with the use of similar technology.
And, even though there are many
power plants in neighbouring countries, such
as Germany, the Czech Republic, Slovakia,
Ukraine and Lithuania, they are still viewed
with a great deal of suspicion in Poland.
Therefore, the recent announcement from the
Polish government of a possible nuclear pow-
er sector development has been received with
concern, especially in Pomerania. Although
the document entitled “Power Policy of Poland
until 2030” does not give a specific site
for a future plant, Żarnowiec has been mentioned
unofficially as a good location.
Opponents of the nuclear power energy
are not convinced even though this time
state-of-the-art and the safest know-how
would be used, previously proven to work in
many EU countries. Even this argument may
be reversed and protested, as almost 100% of
the technology, equipment and raw materials
will have to be imported.
The port is rich in coal
An alternative idea has recently come
up, namely a coal power plant in the Port
of Gdańsk. Why at the Port? Because it is
the traditional transport route for the Polish
mining industry.
Following the initiative of the Port of
Gdańsk Authority, a meeting was held in
March with a team of experts appointed to
prepare an initial analysis of the idea.
According to the first premises the plant
would produce a power of 1000-2000 MW. It
has also been assumed that due to the crosslocal
and cross-regional importance of the
investment, it would require the cooperation
of the port’s authorities with PGE SA (Polish
power networks) and the government bodies
at all levels. However, a technology has not yet
been selected, and the issue has been left for
further consultation.
Nevertheless, the meeting provided a hierarchy
of initial problems:
– organizational, legal and the technical feasibility
of connecting and distributing electricity
throughout the Polish electrical networks;
– determining the parity of acceptable gas and
dust pollution, disposal of water into the
Bay of Gdańsk and other options for managing
solid waste;
– analysis of possible investment financing
with the use of EU support for so-called
pure technologies;
– conditions of transport and storage of carbon
dioxide, obtaining the required support
in anticipation of local opposition.
In fact, as soon as the news of the
planned power plant in the port spread, the

opponents came forward. The risk of devastating
flora and fauna in the warm waters of
the Bay of Gdańsk, which would have to be
used to cool turbines has been raised. Poland
is already a European “leader” in carbon dioxide
emission, which exceeds EU standards
many times.
Very green technology
In order to meet the objections at the
next meeting, the originators of the power
plant invited representatives of the General
Electric Energy company. The concern offers
a unique technology of electricity production
called IGCC (Integrated Gasification
Combined Cycle). This technology, as
picturesquely presented by GE Energy, can
be applied even “at the top of a mountain”.
It does not require cooling turbines with
water, as air can be used instead. Due to a
2/3 lesser demand for coolant than in conventional
power plants, fan cooling may be
applied then supported with sprinkling, thus
eliminating the use of the flow system with
water from the bay. The exclusion of chimney
cooling systems makes the pillars that
remove sulphur compounds the only high
objects in the plant, although they are still
lower than in standard solutions. The area
occupied by the IGCC system is compara-
ble to the size of a conventional power plant.
For a power of 800 MW approximately 20
hectares would be sufficient, while doubling
the power does not imply the same increase
in the area. In this context, as guaranteed
by the Port of Gdańsk Authority, the use of
even 40 hectares for the power plant would
not interfere with the development plans of
the Port of Gdańsk.
The input product for the combustion
process is a synthetic gas, relatively simple
to be purified from the remnants of mercury
and sulphur. Arsenic compounds are
removed in a set of precipitators with activated
coal. Therefore, if the IGCC system is
applied in Gdańsk, either fed by gas or coal,
it would mean an actual ecological revolution
because, according to the representatives
of GE Energy, in this solution there are
no solid waste problems. Coal combusted to
produce gas gives waste in the form of slag.
Its chemical indifference, confirmed with
tests, achieves a level that permits waste to
be used to harden the surface of dirt roads
in the forest.
Feasible in 4-5 years
Other investments may follow the construction
of a power plant. The collapse of
the Polish coal export market during the last
two years stopped the transshippment on the
piers of the Northern Port. After the liquidation
of many Polish mines it has become necessary
to start transshipping imported coal
to/from the Port. However, the port appliances
are not adapted to operate in this direction.
Therefore, it might be worth including
the costs of making the coal piers universal
within the comprehensive study on the profitability
of a new power plant location in the
close vicinity.
Today GE Energy declares its readiness to
fulfil the order for a power plant construction
within 4-5 years. The initial calculations show
that this investment is reasonable. The cost of
“constructing 1 MW” in the IGCC technology
is similar to the cost of constructing such
a capacity in a conventional coal combusting
technology. The GE Energy system has already
proven itself in many power plants all over the
world, with 62 coal gasification systems already
operating with this technology.
40% of global electricity production is based
on coal. Refined methods of environmental
protection, such as the IGCC system, can make
such solutions more popular, as coal fields remain
the largest source of fossil fuel today.
Janusz Kasprowicz
Spokesperson for
the Port of Gdańsk Authority SA
3/2008 | Baltic Transport Journal | 55

Maritime
The dry freight and tanker market
Prepared by Polfracht
Dry Cargo Market Report, March-April 2008
March has continued its rising trend from the end of February well
into the middle of the month when, due to the Easter Holidays, it slowed
down before bouncing back to roughly the same level at which it was at
the beginning. April saw high activity throughout the month resulting
in a big number of fixtures concluded.
CAPE:
The Easter Holidays had a slowing effect on the Capesize market.
Freights were rising steadily for the first part of March with the t/c
average reaching USD 147,000, then over the Easter weekend, they
fell to USD 113,000 and finally bounced back to around USD 135,000
by the end of the month. The biggest fluctuations were seen in the
Atlantic/Far East market where the t/c rate moved from USD 174,000
to USD 190,000, then dropped to about USD 155,000 before finally
rising to USD 185,000.
In April the Capesize rates improved sharply with 4 t/c routes rising
from USD 125,000 to USD 166,000. The Atlantic experienced the strongest
increase, obtaining rates of about USD 185,000 daily for a round voyage.
The Pacific rates also increased strongly with the round voyage climbing
from USD 122,000 to USD 150,000, whilst the backhaul t/c moved from
about USD 85,000 to about USD 105,000 for a modern 170,000 tonner.
Also, the period market experienced a lively activity: an 18-year old
vessel of 160,000 dwt was fixed at USD 150,000 daily for a period of 12
months, a 3-year deal concluded at USD 109,000 daily for a newly built
180,000 tonner, 5-year t/c of a 177,000 newbuilding reported fixed at USD
82,000 with delivery ex yard in May.
PANAMAX:
Both in March and in April the panamax market was much stronger
in the Atlantic than in the Pacific. In the Atlantic it started and ended
the month of March at a level of approx. USD 68,000, then it climbed
to about USD 85,000 at the end of April. The best seen rate for a transatlantic
round voyage was USD 89,000 daily, paid for a large modern
economical panamax. The best paying business was in the Atlantic/Far
East trade, where rates reached an excess of USD 90,000.
The Pacific market started March with levels up around USD 10/
15,000 from the end of February. Backhaul fixtures were done at around
USD 55,000 versus about USD 40,000 in the previous month. This positive
trend reversed at the end of March, when rates dropped again by
about USD 8,000 per day. April started on a better note and rates were
(with a small hiccup in mid-month) climbing up to about USD 67,000
at the end of the month.
The short period market was also active, with 3/4-, 4/6- or 5/7month
deals fetching up to around USD 85,000 in the Atlantic and
about USD 10,000 less in the Pacific.
3-year periods were fixed at about USD 45,000 and a 10-year t/c
obtained USD 26,000 daily.
HANDY:
The handysize market behaved differently depending on the region.
In the Baltic and the Black Sea the rates before Easter stood at about USD
60/63,000, then dropped by an average of USD 1,000 but, two weeks into
April, they steadily rose by USD 10,000.
In the Pacific the first half of March noted much improved rates rang-
56 | Baltic Transport Journal | 3/2008
Average monthly freight indices and rates during
March-April 2008:
a) freight indices (points) II`08 III`08 IV`08
Baltic Dry Index (BDI) 6,830 8,063 8,287
Baltic Capesize Index (BCI) 9,730 11,305 12,065
Baltic Panamax Index (BPI) 6,700 8,149 8,330
Baltic Supramax Index (BSI) 4,400 5,168 4,929
b) freight rates (in USD/mt) II`08 III`08 IV`08
110,000 mts coal,
Hampton Roads – Rotterdam
140,000 mts coal,
Richards Bay – Rotterdam
140,000 mts iron ore,
Narvik – Rotterdam
150,000 mts iron ore,
Tubarao – Rotterdam
27.90 32.04 36.46
30.40 35.90 38.50
11.00 12.43 14.08
29.70 33.43 37.15
Freight market trends in March-April 2008, as indicated by average
daily T/C rates (in USD per day), reported on specific trading
routes:
Cape (170,000 dwt)
II`08 III`08 IV`08
Atlantic round voyages 100,500 119,100 144,100
Continent – Far East 153,100 171,800 195,100
Far East – Continent 71,800 88,000 94,500
Pacific round voyages 112,400 129,800 134,700
Panamax (74,000 dwt)
Atlantic round voyages 62,800 69,500 74,900
Continent – Far East 71,800 79,300 84,200
Far East – Continent 37,300 51,600 49,200
Pacific round voyages 44,600 64,300 60,000
Handymax (45,000 dwt)
Atlantic round voyages 49,100 52,600 60,300
Continent – Far East 58,400 64,100 66,300
Far East – Continent 38,200 48,900 38,800
Pacific round voyages 41,000 53,000 43,900
ing around USD 55,000 for round trips, when in the second half of the
month rates sharply fell to about USD 45,000. In April the freights regained
their level of above USD 50,000.
The USG/Continent route started March at a level of USD 70,000,
then rose to USD 73,000 in mid-month, eased a bit over Easter and start-

ed steadily going up at the beginning of April, finally reaching
USD 93,000 at its end.
Short period trading was slow with rates of about USD
63/64,000 in the Atlantic and USD 54/56,000 in the East. There
was a very limited number of 1 or 2-year deals, one reported at
slightly below USD 60,000.
Tanker Market Report, March-April 2008
Average monthly freight rates (in Worldscale points),
April 2006 and 2007, February-April 2008:
VLCC
IV’06 IV’07 II’08 III’08 IV’08
Middle East Gulf-West 57 54 89 88 90
Middle East Gulf-Japan 63 68 120 118 128
Suezmax
West Africa-US Gulf 121 129 123 164 193
Aframax
North Africa-
-European
Mediterranean
141 157 148 268 269
cross UK-Continent 95 144 123 160 202
VLCC:
In the beginning of March the future did not look too
promising. Within the first two weeks freight rates from MEG
to Western destinations eroded, dropping from WS 85 to 74
and from WS 120 to 90 to Japan. Before Easter, tonnage shortage
brought a breakthrough with the market rising to WS 100
and WS 137.5, respectively.
Rates out of West Africa to the West remained at about a
WS 120 level for the first three weeks, however, the end of the
month brought a sudden rise to WS 150.
In April the MEG market went through a scenario which
was very similar to March. Rates to the West dropped to WS 65
in the second week, however, increasing activity pushed them
up, to about WS 120. At the same time rates paid for double
hull vessels destined to the Far East, after dropping to WS 77.5,
shot up to WS 172.5 by the end of the month. It should be
noted that single hull tonnage did not manage to breach the
WS 122.5 mark.
The West African market remained more steady, fluctuating
between WS 150 and 160, except for a brief drop to WS 135
during the second week.
SUEZMAX:
West African rates started at around WS 150, however,
the second week brought a drop to WS 142.5. The steady flow
of cargos which followed, drained the market of tonnage and
consequently by the end of the month rates reached a WS 195
level.
The Black Sea and Mediterranean Sea situation looked
even more impressive – initially about WS 150/160, followed
by WS 280 by the end of the month.
April proved to be a happy time for the Suezmax tonnage.
points
worldscale
11000
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
350
300
250
200
150
100
50
0
Baltic Dry Index 2006, 2007 and 2008
80,000 tonnes dirty (Aframax)
2006, 2007 and 2008
Maritime
In West Africa, after a brief drop to WS 150 during the second week, the rates
rebound strongly reaching a WS 250 level.
In the Black Sea as well as in the Mediterranean Sea, the market did not stray
below the WS 185 level and ultimately reached a high of WS 280/290.
AFRAMAX:
In March the Aframaxes went through a scenario very similar to what
happened to other tonnages sectors.
In the North Sea (80,000 mt) and Baltic (100,000 mt) the rates increased
from a mere WS 120 to WS 200.
The Black Sea and Mediterranean market literally shot up – from WS
115 to WS 395.
April brought impressive “ups and downs” in all the areas. The North
Sea and Baltic rates remained at WS 170 during the first half of the month
and reached a high of WS 270 in the third week and dropped to about WS
160/170 by the end of the month.
During the first week the Black Sea and Mediterranean Seas experienced
a dramatic drop – to WS 150 only. This situation created increased demand
for cheap tonnage, as a result of the sharp increase in activity, by the middle
of the month the tide had turned and, literally overnight, the rates made an
impressive comeback to about a WS 350 level.
I II III IV V VI VII VIII IX X XI XII
months
weeks
3/2008 | Baltic Transport Journal | 57

Aviation
The low cost service
is the model of the future
An interview with John M. Kohlsaat, General Manager Commercial, Germany, Central Europe,
Baltic and Denmark, easyJet Airline Company Ltd.
There has been an immense boom in lowcost
airlines in Central Europe and in the
Baltic Sea Region in recent years. Are you
still benefiting from it or not?
At the moment, I don’t really see a low cost
airline boom as such in the Baltic Sea Region
in terms of the demand but rather in terms of
the supply. And it’s different. You have a lot of
activity especially from Ryanair, who has a lot
of supply and a lot of capacity in the market.
I still see a huge potential for the future in
the area although the low cost share is pretty
high already here in terms of capacity.
What do low cost airlines need to do in order
to continue developing?
We need low cost airports. What we don’t
need is a high cost airport, let’s say something
like pink elephants, big marble palaces,
or something like this. We don’t need that.
What we need is a functional airport, which
I think in most of the countries we are fly-
58 | Baltic Transport Journal | 3/2008
ing to, we have. The terminals are functional
and therefore the costs are at a good level
for us. For example Riga has huge expansion
plans with the airport and I think that we are
embracing that. We are really thinking that
this is a step in the right direction for Riga
as it’s an upcoming city – the most dynamic
city in the Baltic region. Unfortunately, Ryanair
is already in Riga so this makes it more
difficult for us to get into this market.
In what regions do you predict the largest
growth over the next few years?
There is still a lot of room in Western Europe.
There is still Italy, which is more or less an
open field. Spain and France are still happening.
It’s very difficult in Germany. Low
cost can be very successful in Germany but
it’s rather difficult because of the blocking
strategy of Lufthansa. And then you see Eastern
Europe. There will definitely be further
growth in Eastern Europe. You can see it. For
example, we grew in Poland last year by 35%
and in the Czech Republic we grew by 20%.
That is a lot and this growth will continue.
Do you consider launching new routes
in Eastern Europe such as to Russia or
Ukraine?
The main issue here are the flying rights.
What we need to have is a bilateral agreement
which is difficult in terms of Russia
and Ukraine. Obviously, it depends on the
countries’ relationships on a diplomatic level.
That means that sometimes it is not easy to
get permission checks to fly – in Ukraine it’s
probably more difficult – but in Russia as
well. What we’re thinking about is new directions
to Serbia and Croatia, probably less to
Serbia and more to Croatia.
How can traditional airlines such as
Lufthansa meet the threat from the lowcost
operators?
They are not low cost. They do not have a low
cost base. What they can only do is compete
with frequency and with low price which
means that their profitability will go down
and they are not normally willing to do that.
That makes it very difficult to compete. In
terms of Germany, they are trying to press
us out of the market and to keep us as small
as possible. Lufthansa can really do that. In
terms of other markets, it’s more difficult because
flag carriers like LOT or Malév, which
don’t have the financial background or the
power to do that or, if so, they need to be
subsidized. In an open market they would
never exist or they would never survive.
It’s very difficult to compete with low costs,
when you are not low cost.
What will the future bring for low-cost airlines?
I think that the overall share of low cost carriers
within the next 5-7 years will rise 60%
in short haul travel and some even say that
it will reach 80% within the next 20 years.
It’s hard to say. It’s definitely the model of
the future – a point-to-point service and
the low cost service.
Maciej Konopiński

Hinterland
Private carriers on fight for rail cargo in Poland
State monopoly and its aftermath
After several years of dynamic growth, the cargo shipping market
in Poland has apparently slowed down.
However, the structure of the
market share has changed
significantly and private carriers
are gaining momentum.
In 2006 the railway cargo
shipping market in Poland
grew by 7% compared to 2005. According to
forecasts for the following year, the market
should have grown by 2.5-3%; however, in
2007 shipping operations, i.e., the number of
started cargo trains, grew by only 0.2% , and
the total volume of carried cargo by 1%.
Analysts from the TOR Economic Advisors
Team stress that the cause of the downturn
lies in the decreasing volume of coal transported
by rail from the mines in Upper Silesia in
the south of Poland to the Baltic Sea ports in
Gdańsk, Gdynia and Szczecin-Świnoujście.
“Polish railways depend on coal shipping. If
they do not find other cargos in 2008 the volumes
will fall. This trend may not only hit the state carrier,
PKP Cargo, but also private companies,” says
Marcin Kamola from TOR.
However, according to another analyst
Łukasz Malinowski, “PKP Cargo should be
blamed for its overall poor results as the mar-
60 | Baltic Transport Journal | 3/2008
ket has not grown but private carriers have
taken over the cargo it used to transport in
previous years.” Malinowski assures that in
spite of the general standstill on the market,
a constant and very dynamic growth of
shipping may be observed among private
operators.
Polish tracks users
PKP Cargo is responsible not only for
cargo shipping but it is also the owner of
a definite majority of state locomotives.
There is one more state carrier in Poland,
PKP LHS. It operates only one line with
a gauge of 1,520 mm, i.e., compatible with
the size used in the former USSR countries.
The line, at present used more and more for
container transport, is almost 400 km long
in Poland and ends in Sławków where a huge
dry container terminal is being developed.
According to Matthias Raith, Member
of the Board of CTL Logistics SA, the liberalisation
obstacles are not at all a Polish
matter. „Rail market in Europe is just formally
liberalized, while we are still state
monopolies operating in the democratic environment”,
Raith commented on the recent RailPort
2008 Conference in Warsaw, stressing an example
of the German government’s open support for
Deutsche Bahn’s leading function. Another problem
pointed on the agenda was a matter of still
very low share of the modern goods transported
by rail. Containerised traffic in Poland took only
5,3% of the overall railway shipment volumes in
2007, as it was brought on the conference by Zbigniew
Zarychta, Member of the Board of PKP PLK.
This particularily represents the nowadays meaning
of private carriers to the market, as they are
mostly active in the intermodal sector.
There are 15 major private companies in this
sector in Poland with the top five players holding
almost 40% of the whole market.
Success does not come easily
At the beginning of 2008 the decision of the
Polish Office of Competition and Consumer Protection
became valid. It imposed a penalty of PLN
51m (EUR 14.3m) on PKP Cargo for its monopolistic
practices. The problem started several years
ago when private business started to enter the market
and PKP Cargo executed long-term contracts
which, according to the Office, were made to prevent
the creation of competition. The second proceedings
are pending, these may result in another
fine of PLN 10m (EUR 2.8m). This time PKP Cargo
is being accused of breaking the competition law by
giving privileges to one operator only.
The list of complaints from private carriers is
long. PKP Cargo is said to receive preferential rates
for using tracks administered by its group partner,
also state-owned PKP PLK. It is also suspected of
being prioritized in creating timetables.
Private companies hope that the complete
liberalization of the market introduced by the EU
will lift such barriers and that soon most cargos on
Polish tracks will find their way to wagons.
PKP Cargo under its new management is also announcing
a new business attitude. “We shall be open
to the economic environment, and we shall be more
competitive as far as our products and their quality
are concerned. We shall not be continuing, however,
the devastating price war with our competitors as it
was done before,” says new President Wojciech Balczun.
“I wish to implement changes as soon as possible
in the company’s organization in order to make
the company more market-oriented. If we seriously
contemplate entering the stock exchange some time
in 2010, PKP Cargo must change,” he declares.
Paweł Rydzyński

Swedish and Danish post offices plan merger
Name yet unknown
In a surprising move, the Swedish and Danish post offices have
announced that they are about to merge.
Their respective national governments
and Private Equity House
CVC Capital Partners have
signed a letter of intent between
Posten AB, which is the Swedish
post office, and the Danish
counterpart Post Danmark A/S (the latter is
half owned by CVC Capital Partners). The
deal now awaits approval of the respective national
parliaments.
The resulting new company, whose
name is as yet unknown, will be controlled
equally by CVC and the Danish and Swedish
governments, although Posten will hold 60%
of the non-voting equity. A further 3% will
be held by the companies’ employees. The
new company will be registered in Sweden
and have its headquarters in Stockholm. The
Swedish state will also receive a substantial
one-off ‘dividend’ as part of the deal.
The company will have a combined annual
turnover of SEK 45bn/EUR 4.8bn. All
sides state that they plan to float the new
company within three to five years.
The company organisation also appears
to be consolidating around the management
structure of Posten AB. However, the two
post office brands will remain in their respective
countries. Logistics activities, which
cover package and pallet services, will be consolidated
under one business and the information
services will use the Stralfors name.
The imperative behind the new company
appears to be the combination of the supposed
deregulation of postal services in Europe,
combined with growing competition for express
and pallet-load services in Scandinavia.
Apparently, the two companies feel that individually
they would find it difficult to support
the level of investment needed to compete in
both the postal and logistics markets.
Fritz Schur, chairman of Post Danmark,
observed that “both Posten and Post
Danmark are well managed businesses. By es-
Baltic Affairs
tablishing a merged company that acts in several
markets offering a more competitive
portfolio of services, we create a Nordic player
with the right prerequisites to fulfil each
respective service obligation with the quality
we all expect,” he said. The customers in both
countries will have access to a business partner
with a larger capacity to accommodate
increased requirements on communication
and logistic solutions within, and outside, the
Nordic area, Schur stressed.
Alison Nissen
3/2008 | Baltic Transport Journal | 61

Transport miscellany
Intermodal car
It is not easy to find intermodal vehicles, but not long ago we successfully
found the SAAB 92001 enclosed in a glass box in the SAAB
factory museum in Trollhattan. As the picture shows, the very first car
made by the Swedish aircraft factory is presented together with the propeller.
This addition symbolises the aeronautical background of the car
– only two engineers from the 16 people strong construction team had
driving licenses. It goes without saying that the drag coefficient of the
first SAAB was also aeronautical.
Photo: Marcin Błuś
Sankt Erik
At the end of the mildest ever ice season we are reminded of another
icebreaker which is now a museum: the Swedish Sankt Erik from her last
working days in 1976. Let it be added that the largest fleet of historic icebreakers
in the world rests in the Baltic – except for the Krasin mentioned
in the latest issue and Sankt Erik. One can visit (sometimes even sail on)
the Estonian Suur Tool, the Finnish Tarmo, or the Sampo, German Stettin,
and Wal. The huge museum fleet in the US and Canada (about 300 ships)
includes only three vessels of this class.
Photo: Johan Johnson, SMM
62 | Baltic Transport Journal | 3/2008
Carrier and circus
The depicted landing craft USS LST 393 is now a museum in the
Great Lakes’ port of Muskegon, but during the Second World War she
participated in many amphibious operations and even served as an aircraft
carrier for light planes. A “runway” was made from a steel line
spread between two derricks along the shipside. A Grasshopper (military
nickname for the famous Piper Cub) equipped with a landing hook
over the fuselage snared a loop hanging under the aft derrick. The rest
seems to be simple. Of course, the refuelled airplane could start the
same way. Grasshoppers from such a circus were used to deliver artillery
observers over enemy positions.
Chocolate cover
There are two reasons to have a chocolate bar cover depicting the
warship Vasa – firstly, in 2007 the Vasa Museum was visited by more
than one million people for the first time in its history (exactly 1,067
thousand); secondly, it was a contribution to the question raised by the
Green Book on European maritime policy: how to make shipping more
visible? Simple – display it everywhere. The cover is an example of an, at
least, 18 long series of images of ships issued by Chocolat Frey AG from
Switzerland. Maybe it helped to create the container giant MSC in Geneva?
Please note, however, the mistakes made by the artist and editor
– the real Vasa had three masts, not four, and she was built in 1628. In
fact, she never set many sails and never reached an open sea.
Not very old…
…but seems forgotten – the 10 Deutsche
Mark, which uniquely depicts the navigational
(and even scientific) instruments used by Carl
Friedrich Gauss (1777-1855). In the last issue
we regrettably lost paper money depicting
ships, but the German case is special because,
before the sextant, the 10 Mark note showed
– between 1963 and 1991 – the sailing vessel
Gorch Fock. Oh… – the common currency!
We will never see a German note depicting a
container ship…