SSG No 20 - Shipgaz

PORTS
AND MARITIME
LOGISTICS
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October 28, 2007 20

Finnlines’ aim is to be the leading company in
its field. For a company operating in the service
sector, competent and enthusiastic employees
are a key resource.
A good, well-planned human resource
policy serves to guarantee the enthusiasm and
expertise of our personnel.
A CAREER OPPORTUNITY
WITH ROOM FOR MY
PERSONALITY
Employee satisfaction are one of the main values
of Finnlines. We are constantly aiming
to achieve this by being a reliable and motivating
employer treating employees with
fairness and equality, encouraging every
employee to continuously develop his or her
own competence and expertise.
THE WAY TO GO IN SHIPPING
The competence of our personnel is ensured
through continuous training. One of the challenges
for the future is to attract new, talented
persons as Yourself.
For further information on vacancies
please contact our human resource offi cer at
Finnlines Ship Management.
FINNLINES PLC, PORKKALANKATU 20 A, FI-00180 HELSINKI, FINLAND,
TELEPHONE: +358 (0)10 343 50, FAX: +358 (0)10 343 4242, EMAIL: SEAPERSONNELFIN@FINNLINES.FI
FINNLINES SHIP MANAGEMENT AB, BOX 158, SE - 201 21 MALMÖ, SWEDEN,
TELEPHONE: +46 (0)40-17 68 40, FAX: +46 (0)40-17 68 41 / 17 68 51, EMAIL: SEAPERSONNELSWE@FINNLINES.FI
WWW.FINNLINES.FI

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SCANDINAVIAN SHIPPING GAZETTE, OCOTBER 26, 2007
60
IN THIS ISSUE
18
12 Intercultural communication
improves safety
14 The Danica White captain
tells his story
18 The Color Magic: A cruise vessel
on a ferry route
22 Aframax market steeped
in over-supply
REGULARS
4 News Review
9 SES Onboard
11 Editorial
72 Fleet News
74 Technical News
76 Finance & Insurance
75 IT & Communications
79 Market Reports
FRONT PAGE PICTURE
12
14
86 The precursors of the modern bulk
carrier
SPECIAL FEATURE
Ports and Maritime Logistics
25 In this issue we focus on ports and the equipment they use as
important hubs in domestic and international trade. The ports are
vital and stable elements in the economic relationship between
Northern European countries.
34
Much-wanted container crane on site in Port
of Helsingborg. The crane weighs 765 tons,
has a reach of 37 metres and a lifting capacity
of 65 tons. Two fully loaded containers can
be lifted at once. Another crane of the same
kind is on order, with estimated delivery in
April 2008. This initiative is one stage in the
establishment of Helsingborg as a container
specialist.

neWs reVieW
pOrt OperatOrS beCOme auSSieS
UPM has sold its Finnish port operators
Oy Rauma Stevedoring Ltd and
Botnia Shipping Ltd to the Australian
specialist infrastructure company Babcock
Babcock & Brown Infrastructurelle
(BBI) for EUR 90 million.
Oy Rauma Stevedoring Ltd is a
major port operator in Rauma, where
UPM has a large paper mill. Botnia
Shipping Ltd is based in Pietarsaari.
UPM has signed a long-term logistics
service contract with BBI. BBI now
controls five European port companies
with operating concessions in eleven
ports throughout Europe.
Århus Værft in Denmark.
Still HOpe fOr ÅrHuS Værft
There is a good chance that shipbuilding
at Århus Værft will continue
later on when things have cleared up.
According to several press reports, it
is the landowner at Århus, Olav de
Linde, who wants to find new investors
to continue the production of superyachts
on the premises owned by Olav
de Linde’s development company.
He thinks that there is a market for
the production of yachts in the luxury
class. The Amande, which triggered the
bankruptcy earlier this month, is a classic
motor yacht with a steel hull delivered
from Poland.
Apart from building luxury yacht,
Århus Værft also carried out repairs on
both navy vessels and commercial vessels
at its facility in Århus.
G. erikSOn part Owner Of VeSSel
Oy Langh Ship Ab has sold its drycargo
vessel Christina to the new
Mariehamn-based company Rederi Ab
Tingö, which is partly owned by Rederiaktiebolaget
Gustaf Erikson. The vessel
will switch to the Gibraltar flag and
will be renamed Tingö.
bent mikkelsen
Switch to distillates
cut CO2 emissions
SSG-GöTeborG. Intertanko argues for such
a switch to distillate fuels (MDO) not only
because it would reduce particulate matter,
SOx and NOx, as is widely accepted, but it
would also reduce total CO2 emissions.
Using MDO would reduce fuel consumption,
make onboard fuel processing
redundant, reduce to a minimum the
onboard energy consumption for waste
treatment and significant CO2 production
due SOx deposits in the ocean would be
greatly reduced.
These positive effects are greater then
the negative effects of either higher energy
consumption in de-sulphurisation at the
refineries or manufacturing and operation
of scrubbers onboard ships.
“A switch to MDO from HFO would
therefore at worst be CO2 neutral and,
dependent upon assumptions, would in
principle result in measurable net CO2
Peter Wessel sold to MSC
SSG-TønSberG. Color Line’s passenger/
car ferry Peter Wessel, built 1981 at Landskrona,
is sold to Italian operator Mediterranean
Shipping Company (MSC) for delivery
15 April to 9 May for EUR 25 million.
The Peter Wessel, 29,704 gt, will make
way for the SuperSpeed II on the route
from Larvik to Hirtshals. The vessel has
been servicing this route since 1984. Superspeed
II, currently building at Aker Yards
in Finland, is due to commence sailings in
Mega Yacht 84 meter
Looking for Cheif Engineer, 2:nd Engineer.
Certificate STCW III/3, III/2, III/1
color line
reduction benefits.”, Intertanko writes in a
recent report.
In addition the tanker operators organisation
says new refineries under construction
and upgrading of existing ones will
provide the extra capacities needed to meet
the demand for MDO. An argument supported
by a statement from Middle East
Money & Ships saying that USD 120 billion
are currently being invested in new
refineries around the Gulf.
As a warning to those who argues for the
continuation of burning residuals onboard
ships Intertanko says that because new
refineries are set not to produce any residues,
and even old refineries, as some in
the USA, burn most of their residues in
their own boilers:
“It is therefore a matter of time until the
oil industry will have insufficient residual
fuel to supply the world commercial fleet.”
the ferry Peter Wessel.
May next year, one month late. The first
fast ferry, Superspeed I, will service the
route from Kristiansand to Hirtshals
pOSitiVe tO mOre enVirOnmental meaSureS More of Norwegian owners’ tax bills
could be converted into environmental measures. The Norwegian Ship owners’ Association
(NSA) would welcome this switch to dampen the detrimental effects of the NOK
14 billion back-tax bill. The total tax bill is around NOK 21 billion, based on book values,
of which one third are allowed for environmental investments. At an official meeting
recently NSA addressed its view to the parliament’s finance committee, concerning
the environmental measures.
More Information
Email: info@technicalyachtsolutions.com
Webbsite: www.technicalyachtsolutions.com
scAnDinAViAn sHiPPinG GAZette • october 26, 2007

ent mikkelsen
lars christensen which will change name to servus 2 and become a Danish pilot cutter.
the first private pilot service
now established in denmark
SSG-rinGkøbinG. The first private Danish
pilot service has been established in
Fredericia. Eight former pilots from the
Fjord & Bælt pilotage district have formed
their own company Danish Pilot Service
A/S and are now offering pilot services to
and from several Danish ports.
The private initiative is, however, not
allowed to offer transit pilotage through
Danish waters. The company has an office
in Fredericia and purchased boats. At the
moment, Danish Pilot Service has three
boats and a charter arrangement with the
new supply boat Beltservice in Kalundborg.
Business has so far been very good,
according to the company, which has taken
over most of the customers in the port of
Fredericia from the state-owned pilot service.
Danish Pilot Service A/S will soon also
be working out of Skagen. The company
has purchased a former Norwegian SAR
vessel from Norsk selskab for skipbrudnes
redning, the Norwegian Society for Sea
Rescue.
After minor upgrading and re-flagging
to the Danish flag, the former Lars Christensen,
built in 1972, will be re-named
Servus 2 and stationed in Skagen both as
a pilot boat and as the Skagen office for
Danish Pilot Service. The Lars Christensen
has arrived in Fredericia after having been
laid up for in Vardø.
Chief Engineer faces up to 15 years in prison
SSG-GöTeborG. The former chief engineer
of the roro-vessel Tanabata faces up
to 15 years in prison and USD 750,000 in
fines after being convicted on three counts.
One count was conspiracy and two counts
of making false statements.
The chief had installed a, so called, magic
pipe through which oily-water could be
discharged over board without treatment
in the oily-water separator. Sentencing has
scAnDinAViAn sHiPPinG GAZette • october 26, 2007
been set on 10 January 2008.
The Tanabata was at the time operated
by Pacific Gulf Marine (PGM). The company,
which has previously pleaded guilty
to discharges of oily-water from four of its
vessels, was sentenced to pay USD 1 million
in criminal fine and USD 500,000 in
community service payments and to serve
three years probation under the terms of
an Environmental Compliance Program.
neWs reVieW
aker YardS wOrkS witH SrC Aker
Yards Lifecycle Services and the Estonian
SRC Group OÜ will start offering
voyage repair services to shipping
companies operating traffic to and
from Finland. The services also include
cruise vessels visiting the Baltic Sea
during the summer season. The voyage
repair service will be offered and managed
by Aker Yards Lifecycle Services
with managers and workers from SRC
Group OÜ.
tranSfenniCa inCreaSeS CallS
At the end of October, Transfennica
will add a third call per week at
St. Petersburg. So far, the ro-ro vessel
Pauline Russ has maintained the
Lübeck–St. Petersburg service twice a
week. The additional calls will be with
Godby Shipping’s ro-ro vessel Midas,
which has been chartered from UPM
on a re-let until the end of the year.
“The reason why we are expanding
this service with another sailing is the
increased market demand and we are
very pleased with developments,” says
Transfennica’s managing director, Dirk
P. Witteveen, to SSG.
According to Mr. Witteveen, the
emphasis is still on northbound cargo,
even if the southbound cargo volumes
are also increasing.
“There is still an imbalance in the
service to St. Petersburg,” he informs.
GOOd fiGureS in SwediSH pOrtS
The ports in Sweden handled 93.2 million
tons of cargo during the first six
months this year, up 4.9 million tons
compared to the corresponding period
last year, according to offical statistics
from SIKA/SCB. 13 million passengers
travelled to or from Sweden by ferry,
about the same number as during the
first six months of 2006.
larGe Order bOOk at berGS Berg
Propulsion will deliver 180 CP-propellers
this year. The total value of the
company’s order book is SEK 2.3 billion.
Berg Propulsion has scheduled
deliveries until 2010. The favourable
market has prompted the company to
invest SEK 110 million in their Swedish
activities, and about the same amount
will be invested in Berg Propulsion’s
production plant in Singapore, which
is under construction.

VikinG line
neWs reVieW
new pOrt leGiSlatiOn in ruSSia
The Russian Parliament has voted in
favour of new port legislation, which,
according to SeaNews.ru, defines the
borders between ownership of land and
property in the ports and the operation
of ports and terminals.
Land in ports may be privately, state
or municipally owned but foreign private
persons and legal entities may
not own land in ports. The new port
legislation also regulates lease levels
for land in ports as well as leases and
investment terms for state-owned infrastructure
in ports.
tHree CHarGed in wärtSilä CaSe
After three and a half years of investigation,
the Swedish National Economic
Crimes Bureau has decided to
file charges in a district court against
Wärtsilä Sweden’s managing director
and two of the company’s employees.
They are charged with serious false
certification, a crime that can lead to
up to two years in prison. The case concerns
around SEK 22 million (EUR 2.4
million) in commissions paid to companies
in the UK. All three charged are
pleading not guilty.
isabella is upgraded.
VikinG line upGradinG itS fleet
The car and passenger ferry Isabella is
the second Viking Line vessel in which
the public spaces have been extensively
refitted. The Isabella returned in service
at the end of September after a docking
at Turku Repair Yard. The upgrading
included rebuilding the taxfree shop
and the à la carte restaurant.
Over the next 12 months, Viking
Line will invest a further EUR 20 million
in upgrading public spaces, restaurants,
shops and cabins on board its
ships. The Mariella underwent such a
refit last year and now it is turn of the
Amorella and Gabriella.
HAnnu lAAkso/seA-foto
the ferry Vironia is to be sold.
ro-ro service closed down
between Sillamäe and kotka
SSG-Tallinn. The ferry Vironia sailed on
its last voyage between Sillamäe in Estonia
and Kotka in Finland on 19 October.
The service will be closed down after
negotiations with Russia to be allowed to
pass east of Hogland have failed. The move
would have reduced the voyage time by
two hours to four hours.
Saaremaa Shipping Company’s managing
director Tõnis Rihvk says to SSG
that the negotiations stranded already this
spring and that any hopes of new negiotiations
vanished when Russia announced
SSG-kolobrzeG. The Ukrainian industrial
group Donbas will purchase newly
issued shares in Gdansk Shipyard for PLN
400 million and thus take over control of
the shipyard from the Polish state. Donbas
already controls 5 per cent of the share
capital in the shipyard and this will now
increase to 80 per cent. The Polish competition
authority will have to formally
approve the agreement, dated 16 October,
before it can come into force and this process
could take several months.
Two years ago, Donbas acquired the
Polish steelworks Czestochowa, which is
that they will build a radar station on Hogland.
The vessel Vironia will be sold.
Due to Vironia’s capacity, the service
has been more of a ro-ro than a passenger
service. Kari Juvas at Finnish Stella Lines
says to SSG that his company is planning
to start a service between Kotka, a port in
Northern Estonia, and Vyborg next year,
but the new situation might speed up the
planning work for an earlier traffic start.
“Today, we have a different view, we are
evaluating the situation to see how we will
act” says Kari Juvas.
Donbas to take over Gdansk Shipyard
one of the largest suppliers of steel to the
shipbuilding industry. Gdansk Shipyard
will now increase its production by building
other steel structures in addition to
ships, e.g. windpower stations.
Donbas’ Polish MD has already promised
to repay all state subsidies granted to
the shipyard in order to avoid implementing
the reductions in capacity demanded
by the EU.
This year, the shipyard will launch seven
ships and the same number next year and
MD Andrzej Jaworski has promised that
the yard will make a profit in 2007.
6 scAnDinAViAn sHiPPinG GAZette • october 26, 2007

An efficient, reliable and low cost port
in the southern part of the Oslo fjord
www.larvik.havn.no

neWs reVieW
naVY unable tO man new friGateS
The Norwegian Navy may be unable to
train enough sailors to man its new frigates.
Two vessels of a series of five have
so far been delivered, Fridtjof Nansen
and Roald Amundsen. All the frigates
are scheduled to be operational from
year 2010. The Office of the Auditor
General (Riksrevisjonen) said bad planning
and budget mismanagement in
the Navy could threaten vessel efficiency.
In a report the Auditor General talk
of insufficient economic control in the
armed forces and a lack of coherence
between available personnel and tasks
that needed to be executed.
twO enGineerS SaCked The Chief
Engineer and the 1st Engineer on A.
P. Møller-Mærsk’s Estelle Mærsk have
been sacked. They have been involved
in criminal business selling several hundred
tons of bunkers at the Chinese
port of Yantian in a deal with criminal
elements.
car/passenger ferry fantaasia.
kYStlink CHarterS fantaaSia
Ferry company Kystlink has chartered
Tallink car/passenger ferry Fantaasia
for 3 months, with an option on a further
3 months, to replace the Pride of
Telemark, which is undergoing repairs
at Cityvarvet in Göteborg. The Fantaasia
will be docked in Göteborg for the
necessary paintwork to commence sailing
between Langesund, Strømstad and
Hirtshals in the first or second week
of November. Meanwhile, the steel
repairs on the Pride of Telemark have
now been completed and the vessel has
been set to leave the dry-dock. Additional
repairs of cables are also necessary
and the vessel will not be ready to
resume scheduled sailings for another
three months.
freDrik DAViDsson
tAllink
the ferry superstar was named at the italian shipyard fincantieri.
Superstar is launched
SSG-Tallinn. AS Tallink Group’s new fast
ferry was launched and named October
5 at the Italian shipyard Fincantieri. The
ferry was named Superstar after the famous
Estonian tennis player Kaia Kanepi.
The Superstar has a capacity of 2 080
passengers and 1 930 lane metres on its car
deck. Its service speed is 27.5 knots. The
ferry is part of the concept Tallink Shuttle,
and will sail on the Tallin-Helsingfors
route. The crossing will take less than two
hours all the year round.
The ferries Star and Superstar will
replace Tallink’s former fast ferries, which
were unable to sail in the Gulf of Finland
during the winter.
SHare purCHaSe SCHeme fOr HerninG SHippinG Herning Shipping A/S has
launched a share purchase scheme for the employees for the first time. After 1 January,
2008, it will be possible for a number of employees to buy shares in the company. The
scheme will be offered to all sailing officers (the top four positions) as well as all working
ashore in Denmark, France and Singapore or in shipyard site teams.
Svitzer swaps tugs in Baltic operation
SSG-rinGkøbinG. Svitzer A/S is about
to change tugs in their barge train running
from the Baltic area to shipyards in Stralsund
and Odense.
The Svitzer Munin, flying the Saint Vincent
flag, will shortly be sold back to Sweden
and reregistered to the Swedish flag.
The tug will also get its old name Dynan
back. Instead, Svitzer has sold the Per to
Svitzer Limited and reregistered the tug,
which will be sailed by the Lithuanian
crew, to the Saint Vincent flag.
The reason for the swap is that Svitzer
Munin cannot sail to the port of Loksa as
its draft is too deep. Svitzer has also chartered
a sixth tug for its barge train operation.
It is the Finnish tug Turva, with an
Estonian crew, which sails between Loksa
and Klaipeda with steel components for
shipbuilding. The six tugs operating in the
Baltic are the Bauge, Bure, Stevns Master,
Stevns Icebird, Per and Turva.
More news on page 77 >
scAnDinAViAn sHiPPinG GAZette • october 26, 2007

Safety
Environment
Security
Editor: Cecilia Österman | Phone +46 31 62 95 88 | E-mail: cecilia@shipgaz.com | www.sesonboard.com
Renewed search
after perished fisherman
An underwater search for the missing
54-year old fisherman from the
33-foot fishing vessel Skarbak was resumed
towards the end of October, after Skarbak’s
collision with the 16,000 DWT chemical
tanker Doris. The Utkilen tanker cut
the fishing vessel in half, as the Doris was
unable to stop in time. At a public hearing
after the accident it became apparent
that the Doris had no lookout and did
not use the radar, but that visibility was
good. Sound recordings of the radio traffic
between the two vessels show that there
seems to have been some difference in
opinion as to who should give way:
Skarbak: “Are you going to slow down,
you who are approaching us?”
Doris: “Are you 20 foot, or are you 19? I
think you should calm down a little bit.”
Just minutes after this conversation the
Doris slammed into the Skarbak and cut
the fishing vessel in half. During the hearing
the chemical tanker captain Trygve
Southampton begins container scanning
Southampton Container Terminals is
first out in the US program for scanning
all containers destined for the US, the
Secure Freight Initiative (SFI), according to
US Customs and Border Protection. Since
October 12, all containers destined for
US ports are scanned with non-intrusive
equipment for the presence of radioactive
material. Port Qasim in Pakistan – which
like Southampton Container Terminals is
owned by DP World – and Puerto Cortez
in Honduras have also introduced container
scanning.
SCAnDinAviAn SHiPPinG GAZeTTe • oCToBeR 26, 2007
UTkilen
The Utkilen-owned Doris.
Bekken said that even though the Doris
should have given way to the Skarbak to
avoid the fatal collision, taking avoiding
action would almost certainly have caused
a collision. He accused the Skarbak of reckless
action when the fishing vessel speeded
up in the hope of getting across before
the Doris passed. Although he admitted
that the Skarbak had the right of way, he
believe that the rule did not apply for the
reason given, namely, that avoiding action
would have led to a collision.
At the largest port in the Nordic region,
the Port of Göteborg, container scanning is
not yet an issue.
”As far as I know, this will come into
force in 2012 but we have not really begun
discussing it yet”, says Tom Westman, head
of Containerterminalen in the Port of
Göteborg, although he is well aware that
the port will ultimately have to introduce
container scanning:
”We handle a lot of exports to the US and
if scanning becomes necessary, we will have
to have it too”, says Tom Westman to SSG.
SES Onboard
The SES Onboard section
focuses on Safety, Environment
and Security issues of interest
for ship operating professionals
at sea and in shore-based
organizations.
One in three seamen sent home
suffers from mental illness
One in three repatriated seamen that
require a medical escort, suffers from
mental illness, writes the London P&I Club
in its Stopploss Bulletin. It could be anxiety,
depression or psycotic disorders that in
extreme cases could be a danger to others
onboard or constitue a suicide risk.
The P&I Club advises all personnel
onboard to consult WHO’s International
Medical Guide for Ships and to seek advice
by radio before administering the right
medication, which the ships medical locker
should contain.
Piracy attacks increase again
– Nigeria and Somalia worst hit
According to
IMB (International
Maritime
Bureau), robbery and
piracy attacks against
vessels increased 14
per cent in the first
nine months of 2007 compared with the
same period last year. The figures show that
198 attacks have been reported worldwide
so far this year. Somalia and Nigeria are
the most afflicted countries with 26 attacks
each. IMB warns that this trend may indicate
that the decline in attacks since 2004
has now bottomed out.
Tove SvenSSon
Loss PRevention
tooLbox
in co-operation with
More news, sources and links
www.sesonboard.com

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Tax package born
by horse-trading
From time to time politicians
do the wrong thing for the
wrong reason. Sometimes
politics gets in the way of
reason and results tend to be
unpredictable and often unintended. The
new Norwegian tax package for shipping
is a case in mind. It’s not at all surprising,
bearing in mind that the current government
is the most left wing ever in the
country’s history.
The minister of finance, Kristin Halvorsen,
who is also the chairperson of
the Socialist Left Party (Sosialistisk Venstreparti),
is completely bent on cracking
down on high earners, in this case the
shipowners. Officially she says she needed
the money to balance the budget, but
it sounds hollow.
Based on official figures, shipowning
companies have to pay NOK 14 billion
in deferred taxes calculated at book value.
This is a two thirds of the total amount
of NOK 21 billion as one third can be
invested in a government environmental
fund. The carrot is that when owners
begin to pay their back-tax they will have
the privilege to join a Norwegian tonnage
tax system in line with that in the European
Union. Those owning companies
in the tax system choosing to leave the
country will have to settle their tax bill in
full before they leave and based on market
value rather than book value.
The back-tax payment and the introduction
of a new tonnage tax system are all
part of a new maritime strategy from
the leftist government. The government
wants lower NOx and CO2 emissions
from Norwegian ships, but at the same
time it deprives the owners of the funds
to invest in new, environmentally friendly
vessels. An example shows that NOK
14 billion would buy 200 new gas-driven
offshore vessels, which would reduce
NOx emissions by 90 per cent and CO2
by 20 per cent. This is only one of many
inconsistencies in the new strategy.
When the current government took
office its program was and still is embedded
in the so-called Soria Moria declaration.
In this declaration shipping and
maritime industry at large is a priority.
Government agencies
do not inspire innovation.
Rather, they prevent it,
at least in Norway.
But alas, matters change and the threeparty
government are now questioning
the very basis for some of the strategies.
For this is a government of the left and
it relishes the fact that they control 65
per cent of the Oslo Stock Exchange by
value.
The government has no coherent industrial
policy for the maritime sector and
frighteningly scant knowledge of the
dynamics of this sector. They do not,
apparently, see the connection between
strong shipowning companies and the
future of the maritime industry. We have
noted this before; the shipowning companies
are the maritime industry’s home
market, where new products are developed
and tested. Without this home market, the
maritime industry will suffer.
As expected the maritime industry
– including the shipowners – is far from
enthusiastic about the new maritime strategy,
although everyone applauds the new
tonnage tax regime. Otherwise there are
only words like innovation, environmentally
friendly shipping, funding through
numerous government agencies etc. We
have been here before and with this government
we will be here for some considerable
time.
Government agencies do not inspire
innovation. Rather, they prevent it, at
least in Norway. The Norwegian maritime
industry has been a success story for a
good many years and the shipowning
companies are an integral part of what is
widely known as the maritime cluster. But
since the advent of oil and gas in Norway
the maritime cluster seems to have faded
in importance. Most national politicians
do not fully understand the marine sector
and especially not shipping.
Never have so many talked such nonsense.
But the Labour Party has understood
that Norwegian shipping must have
operating conditions on par with their
international competitors. However, the
only way to get an EU style tonnage tax
system accepted by the Socialist Left Party
was to make shipowners settle deferred
taxes in what must, surely, be the biggest
political horse-trading in Norwegian history.
The government will never admit to
horse-trading, but there is always a price
to pay for the Labour Party if it is to carry
it’s two, smaller government partners
along.
Norwegian shipowners have long since
waved goodbye to stable and predictable
governments.
p e t t e r a r e n t z
Editor, Norway
Phone: +47 33 40 12 00, E-mail: petter@shipgaz.com
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 11

Intercultural
communication
improves safety
Seafarers have a long tradition of
working in a global environment.
It is estimated that 80 per cent of
the world‘s merchant ships have a
multilingual and multiethnic crew
composition that interacts on an
international scene with other parts
of the shipping community. Onboard
as well as onshore, they meet with
pilots, agents and surveyors, to
mention but a few.
Several studies have examined
the problems and potential solutions
when facing an intercultural
environment at work, but
on a ship an additional dimension
is added. Not only do the seafarers
have to ensure good communication during
working hours. The ship is also a learning
environment and a social environment,
where people eat and live together, often
for long periods on end. For this reason
communication is also an important tool
in establishing social harmony onboard.
Erik Hemming is a senior lecturer at the
Åland Polytechnic and has educated seafarers
in languages and culture for more than
15 years. The Åland Polytechnic is in itself
a cross-cultural institution with its mixed
influences from Finland, Sweden and the
island of Åland itself.
– Intercultural communication is what
makes the teamwork function on a ship,
says Erik Hemming. It gives you a positive
social environment, fewer problems and
most certainly fewer accidents.
Our culture can be called our mental
programming. It is the personality of the
group and “the way we do things here”.
We constantly try to decode our sur-
12 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

TOVE SVENSSON
roundings from our own assumptions
and points of references from religion,
history, climate and so on. The decoded
message is then transferred to our way of
being with regard to working methods,
conflict solving, gender roles, games and
food.
– A culture clash is often the result of a
misinterpreted decoding of the signal. And
unfortunately, we often decode the signals
as being negative, or perhaps neutral. Only
rarely do we decode them in a positive way,
says Erik Hemming.
The difference in socio-material conditions
for the crew, for instance working
hours, cabin standard and other hygiene
factors can sometimes act as a barrier to
good communication.
To avoid the sense of “us and them”
onboard, Erik Hemming says it is important
to do things together and communicate
beyond the work-related order giving.
In his opinion, this should come from
higher ranks and down, since it is not as
A.P. MøllER-MæRSk
easy for the lower rank AB to knock on
the chief mate’s cabin door and propose a
mutual cup of coffee, as it would be the
other way around.
– By spending time together you learn
to decode each other’s signals in a correct
way. It is a matter of give and take. Anyway,
it must be boring to spend a long time
together on a ship and not communicate,
says Erik Hemming.
A door opener
Another good example is learning at least
a few phrases in the other language or languages
spoken onboard. Just a few words
can be a door opener and a source of many
laughs.
Poor communication between crew
members from the same culture and
speaking the same language can be a safety
threat through misunderstandings and
mistakes. It is only natural that the odds
on miscommunication are increased when
crew members are further hampered by
cultural differences and speak English as
a second language. According to a paper
written by Robyn Pyne at the University
of Plymouth and Thomas Koester at Force
Technology in Denmark, failures in effective
crew communication have played a
central role in a number of maritime accidents.
On the Sally Maersk a Polish repairman
died from pneumonia when he was unable
to communicate with the officer who was
trying to treat him. His shipmates thought
he was suffering from back pain after an
earlier injury.
Extreme example
The bulk carrier Bright Field, which ran
into a shopping complex in New Orleans
in 1996, leaving 66 people injured,
illustrates an extreme situation with a
crew and a pilot from different cultures:
American and Chinese. The word “no”
is a very impolite word to the Chinese,
A crewmember of the Sally Maersk died
tragically due to problems of communication
onboard.
especially to an authority such as a pilot.
Since the pilot was not able to understand
the communication in Chinese between
the engine room and the bridge, he was
left unaware of the engine problems and
could take no preventive action to mitigate
the accident.
It is no doubt difficult for seafarers that
communicate in their native languages
and perhaps simplified
English in their day-today
communication to
suddenly muster a good
command of a standard
marine vocabulary
according to the
STCW convention,
when an emergency
situation occurs. Erik Hemming.
What you can do is decide,
if you want to be limiting
or non-limiting in your
communication, listening
or non-listening.
Pyne and Koester believe improved crew
communication through training and education
can reduce the risk of accidents as
long as it is based on fundamental knowledge
of the dynamics of crew interaction
and communication.
Leadership onboard necessitates crosscultural
competency to revoke cultural
differences in order to get the best out of
a multicultural team. Less than ten per
cent of our communication is verbal, the
rest is non-verbal like in the quality of our
voice, gestures, facial expressions and body
language. It is the non-verbal communication
that reflects a person’s thoughts and
wishes.
– We are mentally unaware of a large
part of our communication and control
may be two per cent. The rest is done without
us thinking of it, says Erik Hemming
and continues:
– But what you can do is decide, if you
want to be limiting or non-limiting in
your communication, listening or nonlistening.
You have the choice to open up
professional communication.
cecilia österman
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 13

The captain of the Danica White tells the story:
A very special voyage
Captain Niels Peter Nielsen was
captain of the Danica White
during the 82-day capture off
the coast of the more or less
lawless country Somalia in
East Africa. SSG paid a visit to Captain
Nielsen’s home in Denmark to hear his
own words on the very special voyage.
“The Danica White was held mainly by
gentlemen soldiers off the coast of Somalia.
Shortly after coming onboard they
behaved nicely apart from some nasty
hints of execution. They had their own
cook, their own provisions and when we
ran out of cigarettes, they even provided us
with cigarettes from the stocks ashore”, the
captain says.
The voyage started at Sharjah, U.A.E,
with a cargo of drilling equipment bound
for Mombasa in Kenya. The Danica White
was hi-jacked by a group of 15 persons on
the open sea some 210 nautical miles off
Somalia. Captain Nielsen was on the bridge
that Friday morning, when there was suddenly
a loud bang and later some voices
talking fast. Within seconds a number of
heavily armed and very young soldiers were
in the wheelhouse demanding all valuables
from the crew. They immediately altered
course in order to reach the Somalia coast.
”They were rather friendly when they
realised that we did not make any resistance”,
says Niels Nielsen. ”There was one
English speaking person in the group, who
was between 20 and 30 years old”. ”The
youngest solider claimed to be 16 years
old, but he looked more like 13.”
First 24 hours
The first 24 hours the Danica White,
now with a crew of 15 plus the original
five, steamed toward the shore without
any interference. Late Saturday afternoon
the American destroyer USS Carter Hall
turned up on the horizon and began to call
the ship.
”I was instructed not to make any contact
with the American warship”, explains
Niels Nielsen. ”They have nothing to do
with us in our waters”, said the leader
of the hi-jacking group. The American
destroyer sailed around the Danica White
from 15:00 to about 21:00. During this
time they constantly tried to contact the
ship on the VHF, and ”alerted” the Danica
White by firing warning shots over the bow
and over the stern.
”The hi-jackers became really afraid that
they would be attacked and took their
positions in the bridge-wings with the rest
of the Danica White crew as shields, in
case …”
The youngest solider
claimed to be 16 years
old, but he looked
more like 13.
Niels Nielsen was worried even from his
position in the wheelhouse. Luckily the US
warship decided not to launch a boarding
team. Instead they fired on the three boats
used by the hi-jackers, at that moment
being towed by the Danica White.
Desperation
”The efficient US guns managed to hit
all three boats (one large and two smaller
ones), and one of the ABs was ordered to
cut the towing line. This changed the whole
situation”, says Niels Nielsen. ”The hi-jackers’
plan was that they would leave the ship
at about 20 nautical miles from the shore
with their loot, nothing more, according to
their original plans and confirmed by their
conversation during the days onboard.”
The loss of three boats made the hi-jack-
bent mikkelsen
ers rather desperate as the boats were hired
from somebody else, and now they had to
cover the losses. So instead of leaving the
Danica White they were forced to take the
ship and claim a ransom to gain money to
pay for the boats.
The voyage for the hi-jackers seemed to
be rather well-planned, as they arrived with
their own cook and their own provisions.
”The only inconvenience was that the
Somali cook worked all day and only left
the Danish cook some two-three hours per
day for his cooking for the crew”. The two
ABs on the Danica White soon became
friendly with the Somalians and started
eating their food. Niels Nielsen describes
the Somalians as pigs in the sense that they
never cleaned anything and after eating
their supper on the aft deck it looked like
a rice field.
At anchor
On Monday, the third day of the hi-jacking,
the Danica White was anchored 1.7
nautical miles off the coast of Somalia,
some 26 nautical miles south of Kobyo,
and just outside a private port.
”The ship was equipped to be anchored
with 110 tons of bunkers onboard as well
as sufficient provision taken onboard at
Sharjah, including 20,000 cigarettes”, says
Niels Nielsen. The same day a note of ransom
was mailed to H. Folmer & Co, the
managing owner of the Danica White, for
a sum of USD 1.5 million. Then they started
waiting for an answer.
”The mate, the cook and the two ABs
remained in their own cabins onboard,
while I was more or less forced to bunk on
the bridge”, says Niels Nielsen. ”My bedroom
was not used, but my saloon accommodated
five-six Somalians eating, smoking
and chewing khat, which was brought
onboard in large quantities after arrival on
the coast”.
The hi-jackers or soldiers from the
Somalia Marines were onboard in a nineday
turn.
During the 82 day stay at anchor, the
South West Monsoon started to pass the
area. This forced captain Niels Nielsen to
14 sCAnDinAViAn sHiPPinG GAZette • OCtObeR 26, 2007
bent mikkelsen

sCAnDinAViAn sHiPPinG GAZette • OCtObeR 26, 2007 15

keep the main engine running in order
to ease the pressure on the anchor chain.
Also the two auxiliary engines were running
during the stay. There was high consumption
of fresh water, as the Somalian
soldiers were very keen on taking showers.
Three times the ship ran out of fresh water,
but again the hi-jackers showed gentlemen
style. On one occasion two tons of fresh
water was delivered in 20 litre containers
from the facilities ashore and sailed out in
a small dingy. Later one of three trawlers
lying (Somalia Marine’s fl eet) with a fresh
water generator supplied nine tons of fresh
water.
During the fi rst month the temperature
outside was ”only” 21–22° C, in August it
was up to 25° C and with a lot of wind and
Indian Ocean swell.
Negotiations
From day one at anchor there was contact
from the hi-jackers with the offi ce in
Copenhagen, where the Police had placed
a negotiator to handle the talking with captain
Niels Nielsen as middleman and interpreter
between the offi ce in Copenhagen
and the hi-jackers. The negotiations took a
long time, as shipowner Jørgen Folmer was
not willing to pay the full amount right
away. Slowly and day-by-day the offer was
raised a little to a fi nal sum in the neighbourhood
of USD 750,000. The hi-jackers
needed at least USD 570,000 to cover their
losses.
The fi nal offer was given on a Friday in
August and accepted the following Monday,
but it took nearly another ten days
before the ship was released and the last
soldiers left the vessel.
Just before this happened, the soldiers
took the last loot from the Danica White.
The two TVs in the mess rooms, one of the
ABs’ and the captain’s private computers
and two portable air condition units were
stolen as well as computers from the offshore
mud lock stowed in a container on
deck. The rest of the cargo, drilling pipes
and oil-based mud in big bags, was never
touched by the soldiers.
Free at last
”We had the best possible service during
the fl ight back to Denmark from Djibouti
and also during dinner at the best
hotel in Djibouti. We looked forward to
SPOS®
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onboard weather routing
over 1000 subscribers
similar treatment in the future after leaving
our ship … Ten seats on a private jet,
a three course dinner, and wine was something
highly appreciated after the days at
anchor”, says Niels Nielsen.
”We were met at sea by the French warship
Brisson and called up by a Danish liaison
offi cers as well as a civil servant from
the Ministry of Foreign Affairs. We were in
fact asked to leave the Danica White, which
was sailed by a French crew and the Danish
offi cer in order to give investigators an
opportunity to take technical evidence for
a future trail”, explains Niels Nielsen. ”We
did not bother and were happy to enjoy
the French hospitality onboard the Brisson”,
the captain adds.
”I must compliment the Government
coverage to the families. H. Folmer & Co
went to the police with all addresses to
the next of kin and they, along with the
Ministry of Foreign Affairs, took good
care of the families. Meeting every week in
Odense and daily telephone updates and
all travel expenses paid, that is really good
service for citizens”, Niels Nielsen says
with a smile.
bent mikkelsen
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16 sCAnDinAViAn sHiPPinG GAZette • OCtObeR 26, 2007

turku distribution centre

The Color Magic:
A cruise vessel
on a ferry route
In mid-September Color Line’s
successful cruise ferry Color Fantasy
got an equal partner on the Oslo-Kiel
service. The Color Magic is almost
identical with her elder sister, but the
design includes some modifications
and improvements.
The naming ceremony of Color
Line’s latest newbuilding the
Color Magic took place in
Kiel on September 15. It was
a spectacular event with the
famous German actress Veronica Ferres
as the godmother. Tens of thousands of
people attended the “Mega-Party” on the
quay; the party included a concert with
the Norwegian pop group A-ha. According
to Color Line, this NOK 15 million party
was the largest single Norwegian marketing
effort in Germany in 2007.
After the maiden voyage with invited
guests the Color Magic entered regular
service on September 18 on the Oslo–Kiel
route.
The Color Fantasy entered service on
the Oslo–Kiel route in December 2004.
Described as a cruise vessel with a car deck,
she set a new standard on the route and
was extremely well received on the market.
As she became even more successful
than first expected Color Line decided to
declare its option to build a sister vessel.
The owner still has an option for a third
vessel of this type.
The NOK 15 million
naming party was
the largest single
Norwegian marketing
effort in Germany in 2007.
Ordered on May 27, 2005, the hull of
the vessel was built in Turku and launched
on December 15 2006. After the launching
the hull was towed to Rauma for completion.
The Color Magic was delivered by
Aker Yards Rauma shipyard on September
6, 2007.
The Oscar Wilde
On the Oslo–Kiel route the Color Magic
replaced the Kronprins Harald, another
Finnish-built ship, delivered in 1987. The
Kronprins Harald, which also was purposebuilt
for this route, was sold to Irish Ferries
in January 2007, but continued on charter
to Color Line until the end of the summer.
The COLOr MagIC
Type: Cruise vessel/passenger & car ferry
Builder: Aker Yards, Rauma, Finland
Owner: Color Line AS, Oslo, Norway
Yard No: 1355
Delivered: 6 September, 2007
IMO No: 9349863
Classification: Det Norske Veritas +1A1 Car
Ferry A, ICE-1B (1A, except propeller blades
1B), RP, E0, MCDK, pwdk, NAUT-OC, F-M,
COMF-V(1) Pass & Crew, CLEAN, TMON
L.o.a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223.7 m
L.p.p. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202.7 m
Beam, mld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0 m
Beam, max . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.4 m
Depth, deck 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.7 m
Depth, deck 7 . . . . . . . . . . . . . . . . . . . . . . . . . . 21.9 m
Draught, design . . . . . . . . . . . . . . . . . . . . . . . . .6.8 m
GT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,100
DWT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,860 t
Passengers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,700
Passenger cabins . . . . . . . . . . . . . . . . . . . . . . . .1,016
Crew cabins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .298
Trailer capacity, lane m . . . . . . . . . . . . . . . . .1,265
Cars, lane m . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,190
Machinery:
Main engines . . . . . . . . . . . . . . .4 Wärtsilä 8L46B
kW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 x 7,800 kW
at rpm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .500
Service speed, knots . . . . . . . . . . . . . . . . . . . . . . . 22
She was delivered to her new owner on
September 5 and will enter service between
Ireland and France in late 2007, renamed
the Oscar Wilde.
18 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

Although they are near sisters, the Color
Magic is not identical with the Color Fantasy.
Based upon the experience from the
operations with the Color Fantasy, there
are many new features on the Color Magic.
One of the most important is that there
are 89 more cabins on the Color Magic, of
which 20 are suites. The additional cabins
are mainly located on deck 5, which on the
Color Fantasy was designed as an exhibition
space and additional car deck. On the
Color Magic the aft part of deck 5 is used
for crew areas.
The demand for luxurious cabins turned
out to be greater than originally expected
when the Color Fantasy was put into
service. The Color Magic has a total
of 1,016 passenger cabins with 2,975
beds. As many as 54 of the cabins are
suites. The cabin modules are manufactured
by Aker Yards Cabins.
Spectacular promenade
The size of the spa has
been doubled on the
Color Magic compared
to the Color Fantasy.
Also the Observation
Lounge and the Show
Lounge as well as the
capacity of the conference
areas are considerably
larger on the younger
sister.
A main feature
onboard the vessel is
the 160-metre long,
three-deck-high Magic
Promenade. Lined with
small bars, shops etc.,
the promenade connects
the panorama
lifts and the stairs at
each end of the ship.
The embarkation of
the passengers takes
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 19

place directly
to the promenade.
One of the main restaurants on
the vessel is the Grand Buffet, seating more
than 750 dinner guests. This buffet style
restaurant is located in the forward part of
deck 6. Another large restaurant on board
is the Oceanic à la Carte Restaurant aft on
deck 6 with a three-deck-high panorama
window facing aft.
The Magic Show Lounge in the forward
part of the vessel spans through decks 6
and 7. The terraced lounge is designed for
both day and night activities, including full
production shows and dancing.
Trailers and cars
Despite its cruise ship appearance,
the Color Magic has
also a car deck with 1,265 lane
metres for trucks and trailers.
The trailer lanes are 3.1 metres
wide. For private cars there are
also 1,190 lane metres on hoistable
car decks. On deck 2 below
the main car deck there is also a
lower hold, which is partially
used for the logistics of the ship
when taking onboard stores etc.
All ro-ro-equipment has been supplied by
MacGregor.
Propulsion is provided by four Wärtsilä
8L46 medium speed engines with an
output of 7,800 kW each at 500 rpm. The
four Wärtsilä 6L26 auxiliary engines are
connected to generators from ABB. The
output of the auxiliary engines is 2,040 kW
each at 1,000 rpm. The service speed of the
vessel is 22 knots.
The Color Magic has three bow thrusters
of 2,200 kW each and two stern thrusters
of 1,000 kW each. Electrical power for
the thrusters is generated by two 4,800 kW
shaft generators during manoeuvring. The
two CP propellers and the thrusters are
supplied by Rolls Royce Kamewa.
The integrated navigation system is
delivered by Sperry Marine.
pär-henrik sjöström
20 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

Aframax market
steeped in over-supply
If and when VLCC tonnage begins
liftings from Primorsk, a new era
will dawn on the eastern half of the
North European tanker market and it
will affect the trading pattern in the
whole area. Meanwhile, no doubt, aframax
tonnage will continue to dominate the
North European market for crude liftings.
Nevertheless, these are worrying developments
for hard-pressed aframax owners,
operating in an extremely volatile market.
In the past 18 months the cross North Sea
rate has ranged from a top of WS 320 to a
low of WS 80. Since the top in December
last year, the development has been one of
diminishing returns. With lower exports
from Norway and the United Kingdom all
eyes are on Russia and the increase in shipments
through the Baltic and through the
Barents Sea.
Main push in the Baltic
While plans for increased oil and product
shipments in the north are rather vague
and some years into the future, the prospects
for more activity from oil terminals
like Primorsk, the smaller Ust-Luga and the
Lukoil oil and product terminal Vysotsk
are fairly good. Generally the Russian central
government has proposed to redirect
oil volumes, that presently moves through
Belarus to Baltic ports. Implementation
means laying a 1,000 kilometres pipeline to
circumvent Belarus and connecting on to
Russia’s Baltic Pipeline System (BPS) with
a 74 million tons annual capacity. Plans are
now afoot to double the throughput of the
BPS to around 150 million tons per year.
To accommodate the increased capacity, oil
terminals have to be expanded. Exports are
currently well over 100 million tons annually
at the Russian and Estonian terminals.
According to Leningrad Oblast deputy
governor Grigory Dvas the central government
is considering two options; BPS
capacity could be increased to 120 million
or 150 million tons per annum. In either
case, the export capacity of the terminals
OECD EurOpE DEManD By prODuCt
Lundqvist
Rederierna’s
aframax
tanker the
Thornbury
on the river
Elbe.
needs to be expanded. Primorsk can only
handle tankers with a maximum capacity
of 120,000 tons. In fact it can only load
107,000 tons because of draft restrictions.
The plan now is to deepen the channel at
Primorsk to accommodate tankers with at
least 200,000 tons capacity.
A variety of crude and petroleum products
are exported through a great many terminals.
Russian crude is shipped through
Primorsk, Vysotsk, Tallinn, Butinge and
(million barrels per day) 2006 2007 Mar ‘07 apr ‘07 May ‘07
LPG & Ethane 0.96 0.93 0.99 0.94 0.95
Naphtha 1.11 1.12 1.22 1.05 1.06
Motor Gasoline 2.57 2.53 2.53 2.61 2.59
Jet & Kerosene 1.28 1.30 1.20 1.23 1.28
Gas/Diesel Oil 6.24 6.19 6.27 5.67 5.71
Residual Fuel Oil 1.85 1.78 1.72 1.71 1.70
Other Products 1.55 1.52 1.27 1.40 1.49
Total Products 15.56 15.37 15.20 14.61 14.78
EurOpE & Fsu Oil DEManD 2006–2008
Oil prODuCtiOn russia, uK anD nOrway
PäR-HEnRik SjöSTRöm
Source: IEA Oil Market Report
(million barrels per day) 2006 2007 2008 3 Qt ‘07 4 Qt ‘07
Europe 16.3 16.1 16.5 16.4 16.6
FSU 4.0 3.9 4.0 3.9 4.5
Source: IEA Oil Market Report
(million barrels per day) 2006 2007 2008 May ‘07 Jun ‘07 Jul ‘07
Russia 9.69 9.92 10.10 9.86 9.91 9.93
United Kingdom 1.66 1.64 1.50 1.73 1.60 1.53
Norway 2.78 2.51 2.37 2.46 2.17 2.48
Source: IEA Oil Market Report
22 SCAnDinAViAn SHiPPinG GAZETTE • OCTOBER 26, 2007

Ventspils, while products are shipped
through Vysotsk, St Petersburg, Tallinn,
Riga, Ventspils, Klaipeda and Kaliningrad.
The eight European Union countries and
Russia, all bordering in the Baltic Sea, are
concerned by the potential environmental
impact by spills and by the sheer volume
of traffic. That is why they are working
together within HELCOM co-operation
for protecting the Baltic Sea.
aframax volatility
The bulk of Northern European crude
exports are carried in aframax size vessels.
Exports to the US and Canada are also
shipped in VLCCs and suezmax tankers.
However, the most important type of crude
tanker in North Europe is the aframax,
which, as we noted earlier, has experienced
an extremely volatile market, particularly
in the past twelve months.
At present there is too much aframax
tonnage around at approximately 74.0
million DWT, hence the freight volatility,
which has caused owners some grief of
late. With the volatile market at least in the
past 18 months, it is important to see the
North European market as part of a whole
Atlantic market, including the Caribbean,
the Mediterranean and the Black Sea. The
inter-play between the markets is interesting,
and we can see a certain “slush-effect”,
as tonnage interchanges between the areas.
time to weed out tonnage
The transport bank DVB says in its latest
market outlook for aframaxes that there are
plenty of single hull vessels, which are up
to their fifth special survey. Owners might
choose to scrap at more than USD 500
per light weight ton, or even find alternative
employment as conversion to FPSOs.
The bank also believes that high oil prices
might provide more employment as more
marginal fields come into production. DVB
highlights healthy, long-term prospects for
aframaxes by forecasting a demand growth
of between six and seven per cent because
of increasing trade to North America and
Europe. All in all, the bank expects demand
to be 26 per cent higher by 2010 compared
with 2006.
net fleet growth
DVB estimates that the aframax fleet will
have a net growth of nine per cent next
year and eleven per cent in 2009, and
admits that this is likely to weigh down the
market, before the conditions improves
North European clean tanker rates 2006–2007
Worldscale � Clean MR, 37,000 tons, UKCont–TA
� Clean, Baltic–UKCont, 30,000 tons
� Clean, Baltic–TA, 65,000 tons
400
350
300
250
200
150
100
Qt 1 ‘06
2 ‘06
when single-hull vessels are phased out
from 2010. The orderbook of more than
ten million DWT in 2009 will be particularly
difficult to accommodate, and in
2010 there are nearly seven million DWT
on order. The bank also talks of the 150 or
so coated aframaxes currently in the market
and another 90 on order.
the magical ws 100
3 ‘06
4 ‘06
As we noted earlier owners work in an
extremely volatile market. The worrying bit
is when the market remains below WS 100
1 ‘07
2 ‘07
North European dirty tanker rates 2006–2007
Worldscale
350
300
250
200
150
100
50
Qt 1 ‘06
2 ‘06
3 ‘06
4 ‘06
1 ‘07
3 ‘07
4 ‘07
Source: Scandinavian Shipping Gazette
� Suexmax,135,000 tons, North Sea–TA
� Aframax, 100,000 tons, Primorsk–UKCont
� Aframax, 80,000 tons, NS–UKCont
� Aframax, 100,000 tonnes, Murmansk–UKCont
2 ‘07
3 ‘07
4 ‘07
Source: Scandinavian Shipping Gazette
in North Europe for any length of time.
Except for the last two weeks of September
the market has been lodged below the
magical line since the beginning of August.
There was another less profitable period
in March this year and at the beginning
of December last year. However, since the
turn of the year, the cross North Sea market
only reached WS 200 in one week in
late January and once in late March. Since
then the market has shown a falling trend
(see graph).
petter arentz
SCAnDinAViAn SHiPPinG GAZETTE • OCTOBER 26, 2007 23

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Ports
and MaritiMe
Logistics Editor: Petter Arentz
Vuosaari: Efficient harbour for unitised cargo 26
Project Norvikudden: Ports of Stockholm do it by themselves 30
Århus: The new public terminal 34
An automated container port: Immense operational complexities 38
Wind of change blowing over Danish ports 42
Estonian ports show flexibility 44
Increasing cargo volumes in Finnish ports 48
Germany: more records ahead as main projects seek green lights 52
Passenger terminals being built in Latvia 56
Transit on the rise in Lithuania 58
Norway: Too many ports – too little cargo 60
Poland: Boom in economy and in container turnover 62
Russia: Big plans in Big Port of St Petersburg 66
Sweden: major shake-up at the horizon 69
PäR-HENRIk SjöSTRöm
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 25

PorTs & MAriTiMe loGisTiCs
Vuosaari: Efficient
harbour for unitised cargo
The Vuosaari Harbour is to be completed in the end of 2008.
Purpose-built for the handling of
unitised goods such as trailers and
containers, the new Vuosaari harbour
of Helsinki will be fully operational at
the end of 2008.
The Vuosaari project is the largest
investment ever in the port sector
in Finland. Today the cost of
the framework with fairway and
hinterland connections totals
nearly EUR 700 million.
The new harbour is situated east of the
city centre of Helsinki. The construction
of the Vuosaari Harbour is proceeding on
schedule, and the port activities in the
West Harbour and North Harbour will be
moved to Vuosaari at the end of November
2008.
A large part of the harbour business
park will also be completed by the end of
2008. The new road connection from the
harbour to the ring road III was opened
to traffic already on 9 October 2007. Also
the fairway to the port is ready. The railway
connection will be completed in time for
the opening of the harbour.
Three operators
The Vuosaari Harbour is planned and built
to handle unitised cargo, e.g. trailers, trucks
and containers. There will be three port
operators, Finnsteve Oyj, Steveco Oy and
Multi-Link Terminals Oy, all running their
own terminals. They make the investments
in cargo handling equipment, buildings
and systems. All of them are involved in
container traffic and all but Multi-Link Terminals
also in ro-ro traffic.
The port operators make huge investments
in terminal buildings and equipment.
For example Finnsteve, the largest
Vuosaari Harbour
Harbour area: 150 ha
Container quays: 2 x 750 metres
15 ro-ro berths
Total quay length: 3.5 km
operator in the port, invests EUR 100 million.
This includes four new container gantry
cranes and mobile cranes. Multilink Terminals
moves three container cranes from
Western Harbour to Vuosaari. Steveco will
operate one new ship-to-shore gantry crane
and mobile container cranes. All operators
have also made investments in different
kinds of superstructure.
Cargo and information
“The Port of Helsinki provides the basic
infrastructure, including quays, storage areas,
roads, networks and lighting”, explains
managing director Heikki Nissinen of the
Port of Helsinki.
Compared to the present situation
with the cargo handling scattered to two
ports, the Vuosaari harbour will be a great
improvement.
“Everything will be at the one and same
place, which brings numerous advantages.
As there are many different operators in
the port, the internal arrangements are of
26 sCAnDinAViAn sHiPPinG GAZeTTe • oCToBer 26, 2007
PorT of Helsinki

great importance to ensure smooth traffi c
fl ows to and from the terminals.”
And it is not only a question of cargo.
The fl ow of information between the interested
parties in the port is considerable.
“The systems must guarantee smooth
and fast fl ow of information between the
Customs, the port operators and the main
gate. Automatic identifi cation systems are
of course nothing new, but on this scale
their implementation is a great challenge”.
ideal location
The site at Vuosaari had been allocated
for port operations a long time before the
building actually started in early 2003. Mr
Nissinen thinks that the location is perfect
when taking into consideration the directions
of the cargo.
“Situated at the end of the ring road III
the location is optimized to the fi rst stops
for cargo discharged in the port and also
for cargo entering the port from land.
From the present harbours in the city the
traffi c is fed directly to the street network
and certain problems in connection with
this will no longer exist in Vuosaari.”
A motorway-type road with two lanes in
both directions leads to the main gate of
the Vuosaari Harbour. When leaving the
port, the trucks are directly on the orbital
road with its junctions to the main highways.
Also the railway connection is in a
class of its own. On the marshalling yard
outside the port area the wagons are combined
into trains, which are sent straight to
their destinations. The railroad track from
the port is connected to the main railroad
network at Kerava.
We expect that the share
of goods carried on railway
will reach some 20 per cent
in quite a short time.
Today most of the cargo is carried to and
from the port of Helsinki by road vehicles.
Mr Nissinen thinks that the excellent connections
to the new port will change this,
at least partially.
“Vuosaari Harbour offers much better
possibilities to increase the share of railway
www.mainport-hamburg.de
PorT of Helsinki
PorTs & MAriTiMe loGisTiCs
Heikki nissinen, managing director of Port
of Helsinki.
sCAnDinAViAn sHiPPinG GAZeTTe • oCToBer 26, 2007 27

PorTs & MAriTiMe loGisTiCs
transports. Time may show how this will
turn out, but we expect that the share of
goods carried on railway will reach some
20 per cent in quite a short time.”
Growth potential
Inside the port area the logistic areas are
optimised for the actual types of cargo to
be handled in the port. Both ro-ro and container
handling require large areas for the
storage of units. The infrastructure allows
an estimated annual ro-ro handling capacity
of between 700,000 and 800,000 trucks
and trailers, compared to the estimate of
470,000 units this year in the old facilities.
The layout of the three container terminals
allows the container handling capacity
to increase hand in hand with the traffic
growth by acquiring more cranes and handling
equipment as well as by enlarging the
storage areas.
“The port area will be fully built out
already from the beginning, but the equipment
of the port operators will be dimensioned
to the actual traffic”, explains Mr
Nissinen.
The harbour is designed for an annual
container turnover of some 1.3 million
TEUs. It is estimated that the port of Helsinki
will handle some 440,000 TEUs in
2007. Only about three per cent of the containers
handled in Helsinki are related to
transit traffic.
“Transit containers require more space as
the average storage time for a transit container
in the port area is about a week. A
container with goods for Finland stays no
more than three or four days in the port,”
informs Mr Nissinen.
In the Vuosaari Harbour there will also
be facilities for importing cars. From 25,000
to 30,000 cars are imported in the port of
Helsinki annually, and they are exclusively
intended for the Finnish market.
Port development
Risk Assessment
PorT of Helsinki
“We see a growth potential in this business.
In Finland about 140,000 new cars
are registered each year. Of these 40 per
cent are sold in the Helsinki area.”
Flexibility
In the Vuosaari-project the fact that the
world is likely to change quite a lot during
the long time the port will be operational
is of course also taken into consideration.
The quays are therefore designed for both
container and ro-ro traffic.
“In this way we will be prepared for
future changes in the structure of the cargo
volumes. It is most certain that changes
will occur in the shares between rubber
tyre units and containers during the decades.”
The fairway depth of 11 m allows calls
of container vessels with a capacity up to
2,500 TEUs. Regarding ro-ro vessels Mr
Nissinen says that the depth will be quite
sufficient also in the future but it is by no
way ruled out that the feeder container vessels
of the future will be even bigger in the
Baltic Sea. The berths primarily intended
for container handling are therefore constructed
with a larger water depth than the
fairway.
“If there will be a need to offer traffic
with larger vessels in the future, only the
fairway has to be deepened.”
Mr Nissinen stresses that even if it is
important to keep the port modern for
decades with the help of careful planning
of the infrastructure, it is the port operators
that make the port efficient.
“The most important issues when talking
about a modern port are the cargo
handling equipment and the information
systems,” he says.
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28 sCAnDinAViAn sHiPPinG GAZeTTe • oCToBer 26, 2007

F I N D O U T H O W T H E L A R G E S T P O R T I N S C A N D I N A V I A C A N S U P P O R T Y O U R B U S I N E S S . W W W. P O R T G O T . S E
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PORTS & MARITIME LOGISTICS
Project Norvikudden:
Ports of Stockholm
do it by themselves
The first call at the new container
and ro-ro port Norvikudden
in Nynäshamn (south of Stockholm)
is scheduled for 2011.
The owner, Ports of Stockholm,
projects a capacity of ten million tons of
goods annually. The financing is arranged
without government subsidies.
“There is a huge pressure on the Baltic
Sea, trade volumes increase all the time
and this is the second largest economic
growth area in the world. Norvikudden
must be implemented and we are not
dependent on government subsidies”, says
Björn Neckman, head of Public Affairs at
Ports of Stockholm.
The process of increasing port capacity
in the Stockholm region has been long.
But finally, earlier this year, the board of
Ports of Stockholm’s took the decision to
build a new container and ro-ro port in
Norvikudden, Nynäshamn, to best meet
future needs. Close to 95 per cent of Sweden’s
international trade goes by water.
“Norvikudden will play an important
role in the competitiveness of the region’s
trade and industry, and also in the supply
of goods. The population is estimated to
grow by 270,000 until 2019 in the county
of Stockholm. And in the Mälardalen
region a huge population growth is expected
until 2030. It is obvious that we have to
strengthen the infrastructure”, says Björn
Neckman.
“Stockholm has limited options to
handle increased container traffic, and
30 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

there is not enough land for port extensions.
Norvikudden has both a strategic
location and a lot of land to build on.”
No support from the government
Around SEK 1.7 billion is required to
enable the infrastructure. The financing is
ready, Ports of Stockholm and their owner
the City of Stockholm, will raise the money.
Interest from the government has been
cool; no subsidies will be earmarked for
the huge project.
In the newly presented inquiry on future
strategic ports in Sweden, where the government
will put in money for infrastructure
development, Norvikudden was not
one of the chosen targets.
Earlier the government had decided
not to support Ports of Stockholm’s
application for EU funds within the
HuRRA/PORTS Of STOCkHOLM
project Motorways of the Sea. The fund
level is up to 20 per cent of investment
costs.
“These decisions are not dramatic for us,
but it is remarkable that the government
does not encourage projects with such a
clear focus on economic growth and environmental
considerations. Ports of Stockholm
still continues the work of submitting
an application for EU funds together
with the ports in Hamburg, Rostock, Åbo,
Nådendal and Kristianstad. The large profit
is the effective sea traffic system we are
building up. And in Brussels economic
growth and environment issues are placed
high on the agenda, so the project should
have a good chance to attract attention.”
60 hectares of land
Ports of Stockholm have invested SEK
100–140 million annually for some time
in their different activities. Among the
projects is the building of new quays in
Nynäshamn. The huge plan for Norvikudden
will be a further evolvement of the
existing port in Nynäshamn.
Ports of Stockholm have 60 hectares of
land at their disposal in Norvikudden and
will build up two large port areas with nine
quays of totally 1,800 metres. The water
depth is 16 metres; the capacity fits Baltic
Sea-max.
The calculated capacity for handling
goods volumes is 300,000 TEUs annually
in the container area, plus 200,000 TEUs
in transhipment options to other ports.
The container activities will move completely
from Ports of Stockholm’s base in
Frihamnen, Stockholm to Norvikudden as
a result of this project. Concerning ro-ro,
the calculated capacity is 300,000 vehicles.
The construction start is scheduled for
2009 with a building period stretching over
ten years. If everything runs according to
plan, including ready permits, the first call
(container) can take place already in 2011.
Ports of Stockholm will operate stevedoring
and terminal at the ro-ro division;
the scheme at the container division is different.
“As for ro-ro, we manage the infrastructure,
but we will close a deal to run the
terminal with an international terminal
operator, who will be responsible for the
commercial part, including matters such as
cranes et cetera. We could of course handle
the terminal ourselves, but this solution is
a way of recognizing the market interest
and the port’s attraction. Furthermore, an
PORTS & MARITIME LOGISTICS
international operator can offer sustainable
employment at the terminal for a long
time.”
Adjacent to Norvikudden are 100 hectares
of land, owned by the construction
and property development company NCC.
This area will accommodate companies and
also offer terminal space for logistics.
The inland distribution system is favourable
with regard to roads. The Swedish
Road Administration is now extending
road 73 to Nynäshamn to a four-lane
motorway. Moreover Nynäshamn is linked
to road 259, Södertörnsleden, which is
connected to the European highways E4
and E20. In the future Södertörnsleden
will also be connected to the planned road
system Bypass Stockholm (Förbifart Stockholm),
which will ease the traffic congestion
around Stockholm.
Norvikudden
has both a strategic
location and a lot of land
to build on.
Concerning rail traffic, the national railway
“Nynäsbanan” between Stockholm
and Nynäshamn is to be upgraded and later
on capable of carrying goods traffic during
day and night. Ports of Stockholm are also
investigating a train based transport system
to increase transport options further.
“We are working on a new railway distribution
system in Mälardalen, where we are
open for a joint venture to enable implementation.
Our intention is to drive on a
route around Mälardalen once a day, combined
with a train shuttle which runs three
times a day between Norvikudden, Årsta
and the projected combi-terminal Kombi
Norr in Stockholm. We would like to transport
around 80,000 containers from Norvikudden
by rail annually.”
Criticism from other ports
The project of Norvikudden has been criticised
by other ports situated on the Swedish
East coast. The managing director of
Port of Norrköping, Bengt-Erik Bengtsson,
summarized the criticism in a comment
in the Scandinavian Shipping Gazette last
year:
“The project is based on unreasonable
calculations and volume estimates that do
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 31

PORTS & MARITIME LOGISTICS
Björn Neckman, head of Public Affairs at Ports of Stockholm.
not exist. When the container volumes
increase in ports in the Baltic and Gulf of
Finland, the transoceanic container traffic
will call at these ports directly – not Norvikudden.”
Björn Neckman is tired of such arguments:
“The business profile must be considered
all the time, you cannot operate
future development by slandering others.
We have no opinions concerning other
ports’ aims and visions. We focus on our
conditions to create solutions that are
attractive and competitive to our custom-
Marine Insurance
Specialists
Alandia-Bolagen, PB 121, AX-22101 Mariehamn, Åland Tel. +358 18 29 000, marine@alandia.com
VICTOR BROTT/PORTS Of STOCkHOLM
You cannot operate
future development
by slandering others.
ers; the region’s trade and industry and
inhabitants.”
Norvikudden has been introduced as
an environmentally friendly commitment.
Despite this both The Green Party and The
Swedish Society for Nature Conservation
have addressed sharp criticism – for example,
they fear increased lorry transports.
“You must listen to this kind of criticism,
but when Norvikudden and the railway system
are complete, the consequence will be
300,000 fewer lorries on the roads annually.
Then you can imagine the amount of exhaust
fumes and pollution we take off the roads.”
Ports of Stockholm are waiting for the
definitive environmental permission for
Norvikudden before the construction can
start. At the earliest at the beginning of
next year negotiations with the Swedish
Environmental Court will open.
pierre adolfsson
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32 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

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PORTS & MARITIME LOGISTICS
Århus:
The new
public
terminal
The new Cargo Service container terminal in Århus has 1.3 km of quay served by fi ve SSG’s
(Ship-to-Shore Gantries).
Imagine this scenario: You have 37
years of experience running a major
container terminal and access to the
latest modern technology and are
about to design a completely new
terminal within the same harbour. It has
to be the perfect match, somebody will
say.
“I would say it was the perfect match”,
says T. Bonne Larsen, CEO of Cargo Service,
terminal operator in the Port of Århus,
who was the happy man that participated
in the opening of the brand new container
terminal in Århus at the beginning of September.
“It has been a very interesting task and
our organisation has worked hard for two
and a half years to make the new terminal
second to none”, says T. B. Larsen.
“We have put all efforts into making it a
terminal with the future built in, as we had
this rare opportunity to do it all over again.
I will not use words like the best in Europe,
but I think that we have come far in our
efforts to be one of the best in our size”,
says T. B. Larsen.
The new terminal is part of the master
plan for Århus Port, which saw the need
years ago for a new terminal with much
more space and easier access than the old
terminal (which will be used for housing,
including the tallest building on Danish soil
BEnT MIkkELSEn
THE TERMINAL
• 750,000 sqm, of which the public terminal
is 331,000 sqm
• Avarage dwell time on loaded container: 4.5
days
• Average dwell time on empty containers:
10.9 days
• Storage capacity of empties public terminal:
2,920 slots capable of 6,000 TEUs in stock
• Storage capacity on fulls on public terminal:
2,620 slots capable of 3,000 TEUs
• Length of quay (shared with Maersk exclusive
terminal) 1,300 metres with a depth of 14
metres.
• Container cranes at Århus terminal (shared
with Maersk terminal):
2 super-postpanmax
3 post-panamax
1 panamax
• Århus terminal turnaround in TEUs:
2006: 939,000
2007: expected to be over 1,000,000
• 1,500 container ships call at Århus terminals
per year.
• Århus terminal is placed as number 89 world
wide, according to Container Management,
after Miami and Marseilles.
being built later on). The need for space and
access was combined with some new land
reclaimed in the Bay of Århus, where the
Maersk Terminal Århus was fi rst in 2001.
New ways
The new terminal is fi tted with a number
of electronic devices enabling easier arrival
of lorries with containers (as well as empty
lorries). Furthermore, using GPS technology
is used for information about the
whereabouts of each container in the yard.
That same technology will also be used for
directing the straddle carrier working in the
container yard. This is not yet implemented,
but soon a certain pick-up of a container
will be assigned to the carrier closest
to the storage point of the container, thus
dramatically reducing the many miles that
the machines drive without cargo.
Personal identifi cation of lorry drivers is
used to make the terminal even safer and
securer after the latest rules.
The way in
Safety and logistics are combined in the
electronic systems. When a lorry approaches
the terminal it passes an arch with card
readers and a camera that takes up to a
thousand photos per second of vehicles
passing. The information on the identifi cation
card of the driver is read and if things
34 SCAnDInAVIAn SHIPPInG GAZETTE • OCTOBER 26, 2007

BEnT MIkkELSEn
match (driver, car registration number, ID
number on the container), the driver will
be directed by electronic signs to the grid
for off-loading a loaded container. If things
do not match, he will be sent to the manual
check-in area. If he is empty he will be
directed to the area for loading empties.
“The whole system is based on the sharing
of information”, explains T. B. Larsen.
“Everybody uses computers nowadays and
instead of keeping the information to oneself
it is shared throughout the chain of
containerisation. From the time an empty
container is booked for a cargo, it will be
in the system”.
The customer checks it in at the factory,
the hauler has the transportation in his system
and even the lorry’s system. The shipping
company has it booked and followed
as well and the terminal operator knows
that a certain container is due at the terminal
some time during the day.
“All this information shared makes it
smoother to run a terminal like this”, says
T. B. Larsen.
Safety
The new terminal is also fitted with a
number of personal safety features. After
being guided by a person with a portable
computer checking registrations on
the lorries, as well as the container ID
number, the lorries go back into the grid
area. Before the straddle carrier comes to
off-load the container, the driver has to
leave his lorry and go to a specially built
house called a kiosk. Before green light is
given to the driver of the straddle carrier,
BEnT MIkkELSEn
“It has been a fantastic opportunity to make a new terminal with 37 years of experience”,
says T. Bonne Larsen, CEO of Cargo Service.
We have put all efforts into
making it a terminal with
the future built in, as we
had this rare opportunity
to do it all over again.
the lorry driver must be inside the kiosk
and hold his ID card in front of him ready
to make sure he is away from the off-loading
area.
“Some of the drivers coming to the ter-
Århus container terminal has purchased 19 straddle carriers of diesel-electric type.
PORTS & MARITIME LOGISTICS
minal find it irritating to leave the lorry,
but we have tried to take every possible
safety measure into account in setting up
this new terminal”, says T. B. Larsen.
“By making sure the lorry driver is in a
special kiosk we give the drivers of straddle
carriers a better environment, as they need
not pay any attention to make sure that no
one is hurt on the ground, as there simply
is no one there. And if an accident occurs,
it will only be hardware damage and that is
one of the main concerns”, he adds.
Straddle
The new terminal is also called a green
terminal, referring to the fact that the 19
new straddle carriers are environmentally
friendly. The Kalmar-built units are dieselelectric
driven with only one engine sitting
on top of the units, providing electrical
power to the four electric motors on the
wheels.
The straddle carrier of the Kalmar E-type
is fitted with a lot of computers, which in a
few years from now could make them run
automatically without a driver.
“It should be possible within a few years
to make them run from a ground office
with a GPS tracking system on both the
containers and the straddle carrier”, says T.
B. Larsen.
The Cargo Service changed from using
reach-stackers in the old terminal to
straddle carriers in the new one, in order to
make the turnaround faster and smoother.
There are pros and cons with each system:
“We can stack more containers in each
SCAnDInAVIAn SHIPPInG GAZETTE • OCTOBER 26, 2007 35

PORTS & MARITIME LOGISTICS
Lorry driver Sten is safe in the kiosk while the straddle carrier takes the loaded container
from his lorry.
slot in the yard with reach stackers, but it
is quicker with a straddle carrier”, explains
T. B. Larsen.
Cargo Service is using both in the new
terminal. Straddle carriers are used on the
quayside and in the storage yard, while
reach stackers are used for handling empty
containers.
Other features
As there presently is enough space inside
the gate in the new Århus terminal, a
BEnT MIkkELSEn
number of new features have been built.
An area with PTI (Pre-Trip Inspection) service
of containers, service of reefer containers
and cleaning of containers with highpressure
water in line built in all over with
easy access, as an alternative to carrying a
machine around.
Also a repair shop for damaged containers
has been established inside the gate,
giving a small advantage as there is no gatefee
to be paid in connection with a repair
job. Inside the gate Cargo Services has
warehouses for stuffing and un-stuffing of
containers as well.
Today Århus holds its position as the
largest container terminal in Denmark.
Århus has had facilities for container traffic
since 1970, when the old public terminal
was opened and fitted the following year
with the first gantry crane called Ship-to-
Shore-Gantry (SSG). The old public terminal
had a capacity of 7,000 TEUs, but was
pressed to store up to 10,000 TEUs before
moving all operations to the new facilities
capable of storing up to 12,000 TEUs.
Three older cranes in the old terminal are
expected to be sold off.
bent mikkelsen
36 SCAnDInAVIAn SHIPPInG GAZETTE • OCTOBER 26, 2007

A big small container specialist.
We have made up our mind. We can be a big and a small port, both at the same time.
The Port of Helsingborg is big enough to be a high-ranked player on the market,
but also small enough to make every customer feel special. We can be a little more
personal, more prepared, more concerned about our customers’ wellbeing.
So, is the Port of Helsingborg a big or a small port?
Answer: It is both big and small!
Welcome in!
Helsingborgs Hamn AB, Box 821, SE-251 08 Helsingborg, Sweden Phone +46 42 10 63 00 www.port.helsingborg.se
Hilanders

POrts & maritime lOGistiCs
An automated container port:
Immense operational
complexities
kalmar industries
38 sCandinaVian sHiPPinG GaZette • OCtOBer 26, 2007

Twenty years ago, it was widely assumed that the fully automated container port was
only a matter of a few years away. Hutchinson Port’s Thamesport in the UK and European
Container Terminal (ECT) in Rotterdam were in the 1990s the main pioneers of automation.
Ten years on, the case for automating terminal stacking seems to have been made.
Equipment makers are fighting fiercely over a small but growing order book. However, the
jury is still out on horizontal automation using Automatic Guided Vehicles (AGVs), because
they still have not attained the productivity levels of manual handling. SSG investigates.
The economic case for automation
looks clear. Labour
accounts for more than half the
operational costs of a terminal.
The theory is that machines
defray that cost and quickly repay their
higher initial capital investment. More
importantly they work harder, longer and
more predictably and in addition, they do
not go on strike. With the rising handling
demands of 10,000 TEU vessels and larger,
automation must surely offer greater speed
and consistency. Unfortunately it is not,
however, yet quite like that.
In two flavours
Port automation comes in two flavours.
One embraces terminal stacking and the
other – the so-called “horizontal” – covers
the ship-to-shore movement via multiple
gantry cranes and Automatic Guided Vehicles
(AGVs). Yet despite almost a decade of
experience, there is still less than a dozen
ports using any automation and of those,
the majority has focused on automating
terminal stacking. Only three, ECT and
Euromax in Rotterdam and Hamburg’s
Container Terminal Altenwerder (CTA),
have chosen to go with AGV technology
(in the last – both hardware and software
being supplied by Gottwald).
Kalmar sees growing market
The market for terminal stacking automation
is in the view of Jari Pirhonen of
Kalmar Industries, opening up with at least
ten more ports worldwide likely to take the
automation option within the next five
years. The rush at present is for would-be
suppliers to establish their automation credentials.
“It is now a game of trying to get some
working references because most suppliers
see that the market is growing in the near
future”, says Pirhonen.
“Most are interested in getting in one
way or another”.
kalmar industries
Kalmar is supplying both ECT and
CTB in Hamburg with automated stacking
cranes and has recently established a separate
automation business unit, where in the
past automation was handled as part of its
equipment line. Pirhonen says the standalone
entity is necessary because automation
is a mix of the equipment, the automation
technology and the software.
“This is different from selling conventional
manual equipment”.
Not an extensive record
The automation industry does not yet have
a long record to point to. The pioneers,
Thamesport with automated stacking,
(later supplemented with the world’s first
twin lift rail-mounted gantry cranes) and
ECT, which also adopted AGVs, have been
joined by CTA and CTB in Hamburg,
Euromax in Rotterdam, automated stack-
POrts & maritime lOGistiCs
ing at PSA Singapore’s newest terminal,
Pasir Panjang and at Hutchinson’s CT 4 in
Hong Kong. There is also yard automation
at Pusan New Port, South Korea, Virginia
International Terminals, the Antwerp Gateway
and in Japan.
Steep learning curve
When design work on ECT began in the
mid-1980s, existing terminal operations
software was rudimentary and certainly
incapable of controlling an automated
process. So ECT largely designed and built
the software itself. According to one consultant:
“It has been a steep learning curve. ECT
has if you like paid the price for starting
from the get-go. The rest of the industry is
now cashing in on this experience. It was
inevitable that mistakes were made – that’s
how you learn. When ECT came to build
sCandinaVian sHiPPinG GaZette • OCtOBer 26, 2007 39

POrts & maritime lOGistiCs
to Delta terminal some lessons were incorporated.
With Hutchinson’s involvement
in Euromax, you could say they have a real
chance to reap the full benefits, because
the technology has already changed so
much since ECT was first envisaged. What
hasn’t changed perhaps with Euromax is
the excessive optimism among operators,
that these highly complicated IT-based
projects will actually be completed on time
or even within budget”.
Getting faster
According to Remmelt Thijs, project manager
with the logistics and simulation consultancy
TBA, the technological advances
have been considerable on both the terminal
and horizontal sides.
“Originally ECT had a single crane per
stack where other systems now have three
or four, which of course allows for much
higher performance”.
Thijs also points out that the AGV component
has also changed considerably:
“ECT’s AGVs deliver with much slower
speeds than we now aim for, some three or
four metres per second as opposed to the
present six metres per second. Machines
have also become faster in acceleration and
more flexible in terms of the curves that
can be taken”.
Recent advances, says Thijs, lie in the
improved control systems running the fleet
of AGVs. To control its terminal stacking
ECT has migrated from its home-built soft-
ware to a terminal operational programme
from Navis, who are doing the same installations
at Euromax. The AGV software
however remains home grown. Euromax
and Hamburg’s CTA’s designs both benefit
from the experience of ECT not least in
the better holding areas beneath the backreach
of the ship-to-shore cranes and the
implementation of more than a single set
route from the terminal to the vessel side.
Anecdotes abound
Anecdotes abound of the early days of
AGV operations in Rotterdam, most
famously of how the vehicles would come
to an emergency stop when seagulls landed
on their sensitive yellow bumpers. This in
turn caused a blockage which snarled up
AGV traffic behind it. Indeed the constraint
has always been on the power of the
software to handle the likes of safe interval
management between vehicles and the ability
to automatically isolate an area when a
breakdown or other obstruction blocks one
of the buried sensor routes. ECT planners
also learnt that they needed more space in
which to hold AGVs and that their initial
queue design was inadequate. In addition
they introduced remote control to restart
or move stalled equipment.
Cannot compete yet
“Unfortunately I think it is a fact that today
none of these automated terminals can yet
match the performance or productivity on
kalmar industries
the vessel side of the comparable manual
terminals, even in high labour cost areas
like Western Europe and North America
vessel productivity is the key when terminals
are attracting shipping lines and automated
terminals have not done so well in
that respect”, says Jari Pirhonen.
Complex demands
The reason in his view is the sheer complexity
of demands made upon an automated
operating system with the considerable
number of exceptions that the computer
must handle.
“In a busy terminal you have multiple
cranes on one vessel and a lot of equipment
serving those cranes. The manual
operation still proves to be more efficient
because the driver is a bit smarter than the
computer when it comes to working in a
confined area with multiple cranes”, says
Jari Pirhonen.
Pirhonen does not however doubt that
horizontal automation will become both
as productive if not more productive than
manual labour and also therefore more
cost-effective. It is this assumption which
caused Kalmar this summer to buy Dutch
terminal software provider ACT whose
products include AGV navigation systems.
Hybrid solution
At present says Pirhonen, the hybrid solution
with automatic stacking and the manual
feed is more efficient because it is less
complex. Unlike horizontal movements
there is a far higher level of predictability
using rail-mounted gantry cranes. Kalmar
is now delivering the first of 87 automatic
stacking frames to Hamburg’s Container
Terminal Burchardkai (CTB) as as part of
a ten year programme to convert from
straddle carriers. The project will give the
terminal operators HHLA the ability to
stack one over five. To keep disruption
to port operations to a minimum CTB’s
stacking yard will continue to be operated
with straddle carriers until each is replaced
by an automated crane. The new installations
will however continue to be served
by manually-operated straddle carriers. The
impact of automated stacking on storage
density compared with the two or three box
heights of manually operated cranes can
be dramatic. TBA’s Thijs points out that
terminals should not be designed for 100
per cent utilisation. Empty space is always
needed for discharged cargoes before loading
can begin. Depending on the system
40 sCandinaVian sHiPPinG GaZette • OCtOBer 26, 2007

used, a manual straddle carrier would be
working at 70 per cent at a maximum stack
height of three boxes. Multiplying usage by
stack height gives a notional stack height of
2.1 boxes. An automated straddle carrier
works at 80 per cent utilisation and with at
least five high stacks, thus giving a notional
stack height of four boxes.
“So you are doubling the stack height
with automation and achieving much higher
stack utilisation” he says.
Untried technology and concepts
“A back of an envelope calculation”, says
a European consultant, “would seem to
make it obvious that the investment in
yard automation is going to pay off, not
just in terms of efficiency, but also in
terms of sometimes dramatically increased
capacity at a time when most ports are
casting around desperately for space in
which to expand. But terminal operators
are conservative. There are not that many
managements like Hutchinson Ports at
ECT prepared to go out on a limb with
pretty-well untried technology and concepts”.
The appearance of sophisticated terminal
operations simulation software has been
both a marketing tool for the equipment
suppliers and for the terminal operators.
Hutchinson has developed its own. TBA’s
simulation software, said one automated
equipment maker, seems to crop up everywhere
and was very clever.
Thijs explains:
“We can set our programme to test the
complete operating system including the
traffic management in a simulated environment.
We can thus even establish if the
specified computer is fast enough to do
the job. You can check functionality. Do
the AGVs bring all the correct containers
to the correct locations? Does the system
make sure that you don’t send two AGVs
for one box? It also allows you to test if
the system will achieve a certain productivity.
We create as realistically as possible
the flow of vessels and containers through
a terminal. For instance a vessel may have
called at three or four ports on a trip from
Singapore to Rotterdam. We create a very
realistic cargo flow over the terminal and
then we see how the terminal operating
system deals with it.”
Thijs does however admit that TBA’s
simulation software did not allow for AGV
breakdowns, because it was focused more
on how the terminal operating system
functioned.
While powerful simulation software
can demonstrate what can be achieved
with specified operational procedures,
sourcing the equipment to at least match
those specification is a different challenge.
Kalmar’s Pirhonen says that until now,
automation breaks down into three discrete
areas: the actual movement equipment
produced by firms such as his own;
the automation technology from companies
like ABB or GEC and the software
from programmers that include Navis,
Cosmos and Jade.
Demanding automation project
Such a range of different suppliers might
seem to suit terminal operators that for
instance specified certain electric motors
for its quay gantries but Pirhonen warns:
“From the customer’s perspective an
automation project is much more demanding
because you have to specify in great
detail. In a manual operation, you can
always rely on the operator to make decisions
if there are exceptions or things that
are out of the ordinary. You have the driver
who can use his own brain to solve the
problem, however when you have an automated
operation the software has to do all
this. Therefore the requirements for the
ADVOKATFIRMAN
MORSSING & NYCANDER
Est. 1880
MARITIME LAW • LOGISTICS & MULTIMODAL • MARINE INSURANCE
ADMIRALTY & CASUALTY • PURCHASE & SALE • SHIP FINANCING
kalmar industries
software are quite massive compared with
traditional terminal operations”.
Pirhonen believes that because of these
complexities, operators are going to reject
a pick and mix approach in favour of a single
supplier, as has happened for Kalmar at
Hamburg’s CTB.
“We are actually supplying our own
automation and software systems along
with our cranes.”
Hamburg went for this, he believes
because it wanted clear responsibility as
and when something went wrong and then
a rapid restoration of functionality.
It seems likely that in time the software
component of terminal automation will
become a commercial product that can
be scaled to any port. From the start, this
will certainly embrace automated stacking
operations. However until the productivity
case is clearly established and the immense
operational complexities more firmly modelled,
it will probably not include horizontal
management controls.
nigel ash
Box 3299, 103 66, STOCKHOLM, Sweden, Tel: +46 8 58705100 (24-hour service), E-mail: info@mna.se, Fax: +46 8 58705120
www.morssingnycander.se
POrts & maritime lOGistiCs
sCandinaVian sHiPPinG GaZette • OCtOBer 26, 2007 41

PORTS & MARiTiMe lOGiSTiCS
Wind of change
blowing over Danish ports
Mols-linien’s trailer ferry the Maren Mols taking another load of trailers in Kalundborg.
Nearly everybody in the Danish
port environment is holding their
breath at the moment, awaiting the
report from Strukturkommisionen, a government
advisory board, giving its opinion
about the Danish port structure in the
coming 10–15 years. The report is expected
to give a new view on the port structure in
Denmark, leaving the philosophy that the
country should be served by only six major
ports (Copenhagen, Kalundborg, Århus,
Fredericia, Aabenraa and Esbjerg) and the
rest could be sold as resort areas or used for
pleasure craft.
DENMARK
This has changed and now about 18 ports
in Denmark have been much more proactive
in “selling” their harbours and services
to local industry as well as politicians.
In fact the harbour people have taken over
from the developers, which only a few
years ago attacked the harbour owners with
plans for luxury estates with a sea view.
A number of ports were actually converted
to housing areas and by this, the
politicians learned that there was no future
in housing. It does not generate any jobs
in the city, and instead of generating earnings
from the port it creates expenses, as
most of the residents are elderly people,
who will need care and attention within
few years.
Nakskov
An example of the opposite way of thinking
is Nakskov, which has not been the
target for developers. The city and its port
had a serious setback in the middle of
the 1980s when the shipyard was closed
down. Later on the port was used for the
armada of Scandlines ferries laid up for
sale after the closing of the Great Belt
crossing. In later years the shipyard facilities
have been taken over by Vestas, the
wind-turbine manufacturer, which established
a wing factory. The wings are up to
45 metres in length and need to be sailed
out on ships.
The other large production in the city
is refi nery of sugar, which also needs sea
transportation for export overseas. Both
customers in Nakskov havn need more
water depth in the fjord connecting Nakskov
with the Great Belt. A report shows that
an investment of a couple of millions will
generate up to DKK one billion in added
value to the Nakskov area as well as maintaining
some 1,700 jobs in local industry.
This kind report has opened the eyes of
the local politicians, who seem to go for
a future with more jobs and added value
42 SCAnDinAViAn SHiPPinG GAZeTTe • OCTOBeR 26, 2007
BenT MiKKelSen

in the community. The example from Nakskov
can be used in most of the Danish
ports like Horsens, Vejle, Randers, Kolding,
Aalborg and others.
Kalundborg
Port of Kalundborg on the western coast
of Sjælland has launched a master plan for
the coming decades with great plans for
investment to generate more traffic to the
port.
The most significant investment in the
master plan is a new ferry terminal to
serve Mols-Linien. Mols-Linien has its
trailer service between Århus and Kalundborg,
and has seen a huge rise in figures,
especially in non-accompanied trailers.
The old terminal lies partly in the city
area, but a new terminal on the south
side of the Kalundborg fjord will keep the
trailer and lorry traffic out of the town
centre.
As of today some 360,000 units are
sailed by Mols-Linien, of which 70 per cent
are non-accompanied trailers. In fact Mols-
Linien has seen an addition of 15 per cent
since 2006.
Another huge commodity for Kalundborg
is export of grain from the whole isle
of Sjælland. Most of the turnover of 3.9
million tons is grain export. So a new terminal
also on the south side of the fjord is
part of the plan, which also has a cruise/
passenger terminal in the old centre harbour.
Kalundborg has the advantage of a
suitable water depth in the fjord and up to
twelve metres along the quays and up to 14
metres in the future terminals within the
port.
Kalundborg havn is owned by the
municipality of Kalundborg, though the
port is really three ports: the public har-
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BenT MiKKelSen
Kalundborg havn has a growing call of cruise vessels like the Thomson Spirit.
bour, the private harbour – owned by Statoil
and used for import and export for the
oil refinery – and finally the Asnæs port, a
private port owned by the power station
Asnæsværket.
Kalundborg wants to be the regional
port for the whole of Sjælland as it has
much easier access than København on
the other side of Sjælland.
Also Kalundborg and its mayor, Tommy
Dinesen, a former AB from DSB ferries,
have ambitions for Kalundborg also to be
a deepwater port for Skåne and a port in
Øresund as well.
bent mikkelsen
BenT MiKKelSen
PORTS & MARiTiMe lOGiSTiCS
nakskov havn with their own icebreaker and
with wind turbine blades on the quay.
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SCAnDinAViAn SHiPPinG GAZeTTe • OCTOBeR 26, 2007 43

PORTs & MARiTiME lOGisTiCs
Three liners, the Kalana, the Dirhami and the Atair J, at the quay of Muuga CT.
Estonian ports
show flexibility
The pressure coming from outside
Estonia has forced the ports to be
flexible. The loss of the flow of some
article may force a single terminal to its
knees, but a certain loss of cargo turnover
has forced terminals and ports alike to
reorganise their operations.
ESTONIA
The downward trend of the cargo turnover
of Estonian ports coincides with the
massive propaganda attack of Russia against
Estonia. The transit of Russian energy carriers
has been affected the most. Transit of
oil products has decreased noticeably, transit
of coal is virtually non­existent and car­
riage of fertilisers and metals has decreased.
However, handling trucks and containers
continues to increase.
Carriage difficulties and presumably also
political pressure has forced Russian businessmen,
who have invested in Estonia, to
adjust their investment plans.
Some terminals have been sold and
some have had to suspend their operations,
the ports reduce the pace of construction
of new structures and are looking for new
trade flows.
The advantage of Estonian ports has
been a good railway connection with ports
that have a suitable depth for large vessels.
The changed situation has forced Russian
businessmen to find other export routes
– cargo arriving from Russia by sea is a new
phenomenon.
Political railway
Last winter, the Estonian state bought
Estonian Railways back from private owners,
but after privatisation two new railway
operators had emerged. Now Estonian
Railways receives half of the trains from
the Russian border, compared to the prior
situation, and half of the trains are those of
other operators. The decline in the cargo
turnover has been somewhat compensated
by carriage of Estonian origin, which has
shifted from roads to railways. These can,
in turn, be attributed to long queues of
trucks on the Estonian­Russian border.
44 sCAnDinAviAn sHiPPinG GAZETTE • OCTOBER 26, 2007
MADli viTisMAnn

Transit
1,000 t � 2005 � 2006 � 2007
4,000
3,500
3,000
2,500
2,000
1,500
Jan
Mar
May
Jul
Sep
Source:
Source: Port of Tallinn Source: Port of Tallinn
Figures from the last three years from Port of Tallinn. in all three graphs, in May 2007, the turnover curve loses
its usual zig-zag-shape and instead points straight down.
Text
Instead of the average 30.5 trains, 16.1
trains crossed the border in August. In September
the transit volume was 42 per cent
lower than a year ago. Thereby the cargo of
both Russian operators, i.e. Severstaltrans’s
subsidiaries Spacecom and Westgate Transport,
reaches Estonia without problems and
the volume thereof continues to grow. The
carriage schedules where the carrier is Estonian
Railways are not approved by Russia.
The European Parliament drew attention
to the problem that Russia discriminates
against Baltic ports with different railway
tariffs.
Port of Sillamäe is expanding
Nov
The Port of Sillamäe, which was opened
two years ago, is already constructing
Stage II, a breakwater and new berths.
Tankchem’s chemical terminal has worked
only half a year and cannot take advantage
of its modern capabilities, because Russian
fertiliser producer Eurochem had planned
for the delivery of methanol and liquid fertilisers
by railway.
The terminal has been inactive since
May regardless of the fact that the owner
has cargo and a terminal – they simply cannot
bring their cargo across the border to
Estonia. In the summer the Sillamäe Oil
Terminal, which was built at the expense of
the port owners, was sold to the owner of
Alexela Terminal, who imports oil products
Liquid cargo
1,000 t � 2005 � 2006 � 2007
3,000
2,500
2,000
1,500
1,000
Jan
Mar
y2007
y2006
y2005
May
Jul
Sep
Nov
by sea and exports it in large batches after
processing.
Last autumn, over 3,000 cars were
quickly unloaded from car carrier Grande
Italia, but their transportation on trailers
over the border proved to be time­consuming.
Therefore half of the cars was taken to
Kotka by a ro­ro vessel and sent to Russia
from there. The cargo turnover of the Port
of Sillamäe in the first nine months of this
year was 1.4 million tons.
Terminals reform the lines
Severstaltrans, which had bought AS E.O.S.
(Estonian Oil Service) in Muuga, merged its
terminal with the latter and wanted to buy
up Pakterminal and Eurodek. The owners
of Pakterminal rejected the offer and continue
on their own. Eurodek has new owners,
but now Severstaltrans is looking for a
buyer for E.O.S. Dekoil, Eurodek’s subsidiary
in Kopli, has been bought by the owners
of the Port Vene­Balti. Lonessa, which
had planned an oil terminal in Muuga,
gave up its plans.
In the first nine months of this year the
quantity of liquid cargo loaded to ships has
decreased by a million tons year on year.
The decline can be seen as of June – the
five million tons in the summer months
is 20 per cent less than last summer. The
quantity of fertilisers was 43 per cent lower
in summer year on year.
MADli viTisMAnn
Coal
1,000 t � 2005 � 2006 � 2007
800
700
600
500
400
300
200
100
PORTs & MARiTiME lOGisTiCs
0
Jan
Mar
y2007
y2006
y2005
May
Jul
Sep
Nov
Source: Port of Tallinn
The singapore flagged Eagle Columbus
entering Muuga harbour assisted by PKl
tugs.
In the first four months of the year, 2.7
million tons of coal was loaded to ships,
i.e. 31 per cent more than last year. 444,000
tons was loaded in summer, which is
extremely little in comparison with 2.1 million
tons loaded last summer. The terminal
cannot even dream of the 7.5 million tons
loaded last year. Against this background
it seems a political decision that the coal
owners of the same region are building a
terminal in Ventspils. KS Stivideerimise
OÜ, which had loaded coal in Paljassaare
harbour, initiated bankruptcy proceedings,
because its main business partner terminated
the contract in connection with suspension
of transit operations in Russia.
The Port of Miiduranna has also noticed
a decline in classical transit. Earlier, the
sCAnDinAviAn sHiPPinG GAZETTE • OCTOBER 26, 2007 45

PORTs & MARiTiME lOGisTiCs
Tankchem’s terminal for liquid fertilisers in sillamäe was inaugurated in December 2006.
port had loaded ten tankers a month, but
now merely two or three. Crude petrol is
imported from Russia by ships instead of
the railway, and thereafter it is blended and
loaded to a ship again.
Transit geography needs changes
The transit impediments, which struck
Estonian ports relatively unexpectedly,
coincide with the massive propaganda
attack by Russia against Estonia at the end
of April, involving Russian youth organisations
and even some Russian companies
having a shareholding in Estonian port terminals.
At the same time, in the meeting
of the Russian Government Marine Collegium
on May 2, it was ordered that Russian
cargo be exported via Russian ports.
The change came quickly and Estonia
was not ready for it, but Russia itself was
not ready either. Russia wanted to direct
the former goods in transit to its own
ports, but in reality large quantities went
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to Latvia, Lithuania, Finland and Ukraine.
Due to rising construction prices in Estonia
the Port of Tallinn has divided Stage II
of Muuga harbour into several stages and
made construction of a new container terminal
the first priority. This will make it
possible to service Asian containers.
In the Paldiski South harbour the Port
of Tallinn will commence construction of
two new berths for dry bulk and general
cargo, in order to separate cargo handling
from passengers and ro­ro cargo. It is possible
that the former dividends policy of
the state, which transferred a large portion
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of the profits of the Port of Tallinn to the
state budget, will need to be revised. The
EU Cohesion Fund also assists in construction
of Muuga harbour.
From road to sea
Bekker, Pärnu and Kunda, the former
export ports, are influenced by a different
distance from the Russian border. The cargo
turnover in Pärnu has decreased year on
year, that of the Bekker Port has remained
the same, but Kunda is witnessing a new
phenomenon. Impediments on the Russian
land border have resulted wood being
shipped to the Port of Kunda. It can be
joked that Russia has forced its businessmen
to fulfil the EU goal of shifting cargo
from roads to sea.
The cargo turnover of the Port of Kunda
in the first nine months of this year has
increased 42.2 per cent, thereby imports
have grown nearly 1.5 times. Imported
roundwood is accompanied by coal, while
the quantity of liquid cargo has decreased.
The concept of Kunda as a port servicing
the local industry is fully justified in the
present conditions. If cargo cannot be carried
by land, another way has to be found.
Cars in Estonian ports
Over 50,000 new automobiles, brought by
ro­ro line vessels as well as car carriers, are
unloaded in the Paldiski South Harbour
this year. The growth of cars and consumer
goods in the ports on the border of the EU
and Russia must be welcomed. According
to Viktor Palmet, the Director of the Estonian
Ports Association, transit and processing
of consumer goods would bring more
money for the ports.
“The buyer and seller decide on the
route. Russia wishes to load its bulk cargo
in its own ports, but consumer goods are
not Russian goods”, explains mr Palmet.
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46 sCAnDinAviAn sHiPPinG GAZETTE • OCTOBER 26, 2007

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POrTS & mAriTimE LOGiSTiCS
Sawn wood being loaded on the ro-ro vessel Estraden in the port of Turku.
increasing cargo volumes
in Finnish ports
An all-time-high was recorded
in the international cargo traffic
in Finnish ports last year. The positive
development has also continued
during 2007.
Last year the international cargo shipments
to and from the Finnish ports
totalled almost 100 million tons of
cargo, according to statistics from the Finnish
Maritime Administration. Of that volume
6.6 million tons were related to transit
shipments, mainly to and from Russia.
Finland
The volume of the seaborne import of
Finland was larger than the export and it
totalled 54.5 million tons. These figures
include 2.7 million tons of cargo bound
further for Russia. The export reached 44.6
million tons of cargo, of which Russian
cargo counted for 3.9 million tons.
The growth in the cargo traffic between
Finland and other countries has continued
in 2007. From January to the end of
August, the loaded and discharged cargo in
the Finnish ports increased by six per cent
compared to the corresponding period in
2006. If nothing exceptional occurs during
the last months of the year, the 100 million
tons’ limit will be reached in 2007 for the
first time ever.
Mostly short sea shipping
Most of the seaborne foreign trade of Finland
is carried on vessels in short sea traffic
on the Baltic Sea and North Sea. In 2006,
63 per cent of the imported cargo was loaded
in ports by the Baltic Sea and 30 per
cent in other European ports. Only seven
per cent of the total Finnish seaborne
import was carried directly from ports on
other continents. Regarding export, the
share of overseas destinations was somewhat
larger. European ports counted for
39 per cent of the destinations and rest of
Europe for 51 per cent.
Forest products play a significant part
in the export of Finland. The largest single
category of goods is paper and board,
counting for 26 per cent of the total export.
When sawn timber and pulp is included,
more than 40 per cent of the exported cargo
is forest related.
On the import side energy and raw
materials are important. Mineral oils domi-
48 SCAnDinAViAn SHiPPinG GAZETTE • OCTOBEr 26, 2007
Pär-HEnrik SjöSTröm

If nothing exceptional
occurs, the 100 million
tons’ limit will be
reached in 2007,
for the first time ever.
nate with 25 per cent of the volume. Coal
and coke count for 14 per cent, resulting in
energy related cargoes counting for close to
40 per cent of the import.
Booming car shipments
The transit shipments via Finnish ports
are concentrated to very few ports. Almost
all of the transit shipments are cargo to or
from Russia. The main types of outgoing
cargoes are ore and chemicals. It is noteworthy
that the ore transit shipments through
the port of Kokkola (Karleby) increased by
1 million tons in 2006.
Regarding the incoming transit, containerised
general cargo and new cars dominate.
Container traffic is of utmost importance
especially for Kotka and Hamina in
the easternmost part of Finland.
Due to its leading role within import
of cars, Hanko (Hangö) is also an important
transit port in Finland. This year close
to 500,000 new cars will be imported, of
which some 350,000 are transit cars, bound
mainly for Russia but also for the other
states within the borders of the former
Soviet Union.
Despite a booming container traffic
in the port of Kotka, the most amazing
growth is recorded in the import of new
cars. It is expected that more than 300,000
cars will be unloaded from car carriers in
Kotka in 2007. Most of them are transit
cars to Russia.
The third large port for car import in
Finland is Turku (Åbo). It is estimated that
the car import will be close to 100,000 in
2007, half of which consists of transit cars.
Domestic shipments
In 2006, six million tons of cargo were
carried on vessels in the Finnish coastal
traffic. Oil products counted for 4 million
tons, and they were mainly distributed
from Neste Oil’s refineries in Porvoo
(Borgå) and Naantali (Nådendal). The rest
consisted mainly of domestic bulk shipments
of sand, cement, chemicals, pulpwood
and coal. General cargo counted for
turnover in Finnish ports 2006
PORTS & MARITIME LOGISTICS
port import export total
Hamina/Fredrikshamn 1,804,350 2,890,457 4,694,807
Kotka 3,595,326 5,667,970 9,263,296
Loviisa/Lovisa 404,752 701,747 1,106,499
Tolkkinen/Tolkis 68,253 37,802 106,055
Kilpilahti/Sköldvik 10,674,736 5,406,341 16,081,077
Helsinki/Helsingfors 5,629,769 5,733,527 11,363,296
Kantvik 583,748 114,264 698,012
Inkoo/Ingå 1,376,511 472,222 1,848,733
Pohjankuru/Skuru 153,180 – 153,180
Lappohja/Lappvik 609 278,011 278,620
Koverhar 1,123,989 215,740 1,339,729
Hanko/Hangö 1,898,804 2,222,778 4,121,582
Turku/Åbo 1,959,800 1,629,916 3,589,716
Taalintehdas/Dalsbruk 461 295,170 295,631
Förby 183,113 1,000 184,113
Kemiö/Kimito 44,287 87,346 131,633
Parainen/Pargas 536,628 126,068 662,696
Naantali/Nådendal 4,232,538 1,500,543 5,733,081
Maarianhamina/Mariehamn 58,076 17,955 76,031
Eckerö 17,856 15,658 33,514
Färjsund 2,174 18,028 20,202
Uusikaupunki/Nystad 493,667 875,224 1,368,891
Rauma/Raumo 1,964,635 4,610,725 6,575,360
Eurajoki/Euraåminne 109,168 40,297 149,465
Pori/Björneborg 3,739,035 1,389,780 5,128,815
Kristiinankaupunki/Kristinestad 533,928 16,698 550,626
Kaskinen/Kaskö 944,129 975,472 1,919,601
Vaasa/Vasa 882,364 157,578 1,039,942
Pietarsaari/Jakobstad 976,405 503,990 1,480,395
Kokkola/Karleby 1,431,095 3,388,347 4,819,442
Rahja 46,857 241,039 287,896
Raahe/Brahestad 4,325,411 856,430 5,181,841
Oulu/Uleåborg 1,308,264 1,182,161 2,490,425
Kemi 1,084,785 1,256,223 2,341,008
Tornio/Torneå 1,082,423 763,639 1,846,062
Others 46,056 84,537 130,593
Coastal ports, total 53,317,182 43,774,683 97,091,865
Lappeenranta/Villmanstrand 272,427 138,390 410,817
Joutseno 242,414 – 242,414
Imatra 307,803 151,576 459,379
Savonlinna/Nyslott 45,426 – 45,426
Varkaus 150,843 88,575 239,418
Kuopio 21,787 39,539 61,326
Kitee – 71,055 71,055
Joensuu 45,518 305,404 350,922
Muut – Övriga 141,407 37,666 179,073
Lake Saimaa, total 1,227,625 832,205 2,059,830
All ports 54,544,807 44,606,888 99,151,695
Source: Finnish Maritime Administration
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 49

POrTS & mAriTimE LOGiSTiCS
The container vessel Aura arriving at the port of Helsinki.
152,000 tons of cargo, almost completely
shipped between mainland Finland and
Åland.
steady passenger traffic
The volumes in the passenger traffic have
not seen any dramatic changes during the
ongoing decade. Despite some small changes
from year to year, the traffic between Finland
and Sweden has been between nine and ten
million during the last ten years. Last year
the volume was 9.6 million passengers.
The passenger volumes in the ferry traffic
to Estonia have been about six million during
the last eight years. In 2006 the number
of passengers totalled 5.9 million.
In all, 16.3 million passengers travelled to
and from Finland by ferry in international
traffic. Domestic traffic totalled 4 million
passengers, of which 2.4 million in the Hel-
Pär-HEnrik SjöSTröm
sinki region. The 15 minute crossing between
Helsinki and the fortress of Suomenlinna
(Sveaborg) is one of the busiest domestic
services. Other significant traffic areas are
the Åland and Turku archipelagos. These figures
also include 0.5 million passengers on
the domestic leg on the large ferries sailing
between Finland and Sweden via Åland.
Concentration
In 2006 the foreign cargo traffic was shipped
through 50 ports in Finland. However, 74
per cent of the traffic was concentrated to
the ten largest ports. The shipments to and
from ports in the Lake Saimaa district via
the Saimaa Canal totalled 2.1 million tons.
The largest port in Finland was Sköldvik,
owned by Neste Oil and situated by the
company’s refinery in Porvoo (Borgå). The
main cargo flow consisted of crude oil in
and oil products out. The outgoing product
shipments also included coastal traffic
to Finnish ports, which is not included in
the international statistics.
Helsinki (Helsingfors) was Finland’s second
largest port by volume and the largest
municipal port.
pär-henrik sjöström
V E R I STAR

PORTS & MARITIME LOGISTICS
More records ahead
as main projects
seek green lights
The planned key to future German mega ship business – the JadeWeser deepwater port.
Threats to the timetables of two
major port projects this autumn are
disturbing generally good progress in
Germany’s main ports, as many head
again for new records.
GERMANY
Last-minute developments could, however,
help defuse the threats which
affect both the construction of the
planned JadeWeser deepwater port (JWP)
in Wilhelmshaven – the key to future German
mega ship business – and also the timing
of Elbe deepening in Hamburg – which
offi cials say is urgent if big ships are to
reach new and expanded terminals.
German ports handled 157 million tons
in the fi rst half of this year, 4.9 per cent
more than in the same period of 2006 and
last year’s overall 303 million ton fi gure
now looks like being well surpassed. Container
handling in the fi rst half of this year
rose more than 13 per cent in terms of
TEUs.
Overall prospects for future growth and
development are excellent. A new Planco
study tips handling of 759 million tons by
2025 with Hamburg possibly leading even
Rotterdam in containers. The fi gures lend
weight to German warnings of port congestion
and calls for improved hinterland links.
The Berlin Government has now earmarked
EUR 5.1 billion to back port and
other regional efforts to improve hinterland
transport up to 2010 as handling
surges. EUR 2.2 billion is going on roads
and also on rail while waterways are getting
EUR 700 million.
Courts settled construction dispute
The threat to timely construction of the
one billion Euro-deepwater JadeWeser Port
(JWP) lessened somewhat as SSG went to
press, when the courts settled a row over
who should build it.
A consortium headed by Hochtief in
Essen was originally awarded the EUR 480
million building job. The beaten consortium,
Bunte in Papenburg, complained of
irregularities. After a legal row lasting all
summer, the courts have now ruled the
complaints were justifi ed and awarded the
job to Bunte.
When work will start, however, is still
unclear. “As soon as possible, we hope”,
said Lower Saxony Economics Minister
Walter Hirche, whose state is ploughing
EUR 510 million into the project. However,
further objections to the project could
still delay construction for months.
The JWP is the key to Germany’s ability
to be independent of Rotterdam in future.
Without it, Germany will become a feeder
location as mega ships go to Rotterdam.
52 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

Delay in building the JWP and failure to
complete by 2010, could mean the loss
of important RTW shipping business. It
would also be a blow to nearby Bremen/
Bremerhaven, which is near saturation. For
that reason, the Weser is investing EUR 90
million in the JWP.
You would think, as the JWP struggles to
be born, that given the doubledigit
container growth in Germany
and the need for facilities
to rival Rotterdam, any proposal
for another German deepwater
hub would be applauded. Not
so, apparently.
Cuxhaven – boxship hub
The Elbe Estuary port of Cuxhaven,
which lost to Wilhelmshaven
in 2001 in the battle to
host the first deepwater port,
came in for a political drubbing
recently when its chief Heinrich
Ahlers suggested it too now wanted to create
a mega boxship hub, second only to
the JWP.
The proposal drew fire from both Cuxport
part owner HHLA, which said it had
no plans to develop Cuxhaven as a deepwater
port, and from Lower Saxony premier
Christian Wulff. He said “We will not
support anything which could adversely
affect the Wilhelmshaven deepwater port”.
Ahlers had said Cuxport wanted to grow
and planned big medium-term investment
to turn it into Germany’s second deepwater
port for mega ships. He said it was needed
and that Wilhelmshaven would not cope
on its own.
Much of the planned development, like
a fourth 240 m berth and an 85,000 sqm
extension, have been around for a long
time and will go ahead in any case, because
Cuxhaven needs them. It all sounds very
sensible. All that appears to rankle, at a delicate
time, is any suggestion Cuxport might
siphon off business from the future JWP.
Elbe deepening could be delayed
The second major threat, that to Elbe deepening
in Germany’s biggest port, Hamburg,
is also time-related.
Deepening is now urgently needed to
cope with ever bigger ships. However Port
and Economics Senator Gunnar Uldall
has warned it could be delayed until 2009
because of five thousand objections to the
EUR 330 million project. Because of that,
it would be “very difficult” to stick to the
Hamburg mayor
Ole von Beust says
despite objections,
Elbe deepening will
start next year.
timetable under which dredging will begin
in 2008, he said.
The late good news however came from
a more optimistic Hamburg Mayor Ole
von Beust. He said deepening could still
start next year but that the planning process
will take longer.
The idea is to deepen the Elbe’s main
channel to handle bigger container
ships drawing up to 14.5
m, or about a metre more than
before. About 38 million cbm
of sand and sediment will be
dredged between Hamburg and
Cuxhaven.
Deepening will go ahead
Both Uldall and von Beust say
the deepening will go ahead.
There is no alternative, Uldall
says, predicting that without it,
thousands of jobs will be lost
and Hamburg will be bypassed
in future by the ships of major owners.
This, as Hamburg heads for another
record year in which 10 million TEUs and
overall handling of 140 million tons are on
the cards after 69.5 million tons and 4.8
million TEUs were handled in the first half
of 2007. EUR 2.9 billion is now earmarked
for new and expanded terminals to cope
with a predicted 18 million TEUs and 220
million tons expected overall by 2015.
Part of this money will come from the
sale, now expected in November, of 30 per
PORTS & MARITIME LOGISTICS
cent of the shares in main operator HHLA.
Analysts say as much as a thousand million
Euro could be raised.
The hope was for more at the start of the
year. However the Hamburg Senate, earlier
this year had to back down from a plan to
sell up to 49.9 per cent of HHLA to private
investors after union protests and stoppages.
LHG sale thwarted
In Lübeck, Germany’s biggest Baltic sea
port, authorities had the same idea as
Hamburg with a plan to sell up to 90 per
cent of main operator LHG to “strategic
partners” to help raise a reported EUR 110
million for expansion to 2015. The port is
headed for a record 32–33 million tons this
year. By 2015 handling is expected to rise
to 35–40 million tons.
Under similar union and strike pressure
as Hamburg, Lübeck was forced to agree to
sell only 25.1 per cent of LHG and there
has been little further word on progress
in that sale since then. Local economist
Wilhelm Wessel said the labour dispute
and compromise had “reduced Lübeck’s
development chances”. He said the minority
share now on offer was “nowhere near
as attractive to an investor as the originally
discussed majority participation”.
The Hamburg and Lübeck share sales
both still have to run their courses and the
consequences in terms of capital for port
development remain uncertain. They will
only become clear when the new partners
Bremerhaven goes for another record year but raises worries about hinterlands in need of
development.
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 53

PORTS & MARITIME LOGISTICS
Rostock: passengers rule but could boxes now come?
of HHLA and the LHG are known, along
with their financial involvement.
Another record at Bremen
The port complex of Bremen/Bremerhaven
is “on track for another record year”, said
new Ports and Economics Senator Ralf
Nagel, after what was officially termed a
“sensational” 2006.
The Weser saw throughput rise 20 per
cent last year and 8 per cent in the first half
of 2007 to 34 million tons. Boxes were up
11 per cent to 2.3 million TEUs, putting 5
million TEUs within reach.
Nagel said current CT 4 expansion of
Bremerhaven’s Wilhelm Kaisen Container
Terminal was just in time to cope with
growth. The last of four new berths there
is due into service in the first half of next
year and reports now say the entire terminal
will be in full operation by next Autumn.
The expansion is the final stage of container
development. The port can expand no
further and will be looking to its new “big
brother”, the deepwater JWP in nearby Wilhelmshaven,
to cope with future increases as
Bremerhaven settles into a feeder hub role.
The Weser ports have meanwhile
unveiled a campaign to improve inner-port
development and hinterland links, joining
Hamburg in its concern over those issues.
Ralf Nagel said political priority must be
given to improving roads, railways and
waterways, which he said were not ready
for the cargo the future would bring.
Vehicle handling sharply ahead
Vehicle handling is another sector to show
double-digit growth on the Weser in the
first half of 2007, with nearly a million
vehicles handled, or 12 per cent more. That
lends credence to predictions it will pass
the two million mark this year and regain
the European lead currently held by Zeebrugge.
Already operational new facilities
in the Osthafen and other improvements
costing EUR 233 million will increase the
Weser’s chances.
Germany’s second biggest car hub,
Emden, also expects 2007 to be another
record year for vehicles. It hopes to pass
the one million mark this year and also the
6.15 million ton overall handling figure of
2006.
In Germany’s biggest easternmost seaport,
Rostock, port chief Ulrich Bauermeister
indicated there is profit to be made
from the hinterland problems Bremerhaven
and Hamburg are facing in the west.
He said that, because of port congestion,
some North-South container traffic might
Brake
expansion
is par for
German
course.
find its way back to Rostock. If it did, the
port was quite capable of handling it, he
said.
Containers have played little part in the
fast development of the former GDR port
since 1990, when lines moved to Hamburg
and Bremerhaven. Several unsuccessful
efforts have been made since then to reestablish
container shipping in Rostock.
Bauermeister warns against too great hopes
now, saying that Rostock was not about to
develop into a container port.
He did say however that in sectors in
which Rostock had done well since 1990,
business would continue to boom.
He predicted that by 2015 truck/trailer
traffic would nearly double, passenger
totals would rise 20 per cent and bulk cargo
would increase by about 30 per cent.
Rostock increases growth
Cargo handling rose eight per cent in Rostock
in the first half of 2007 to 13.1 million
tons after 26.8 million tons overall in 2006.
Bauermeister said Rostock had “successfully
overcome the difficult structural transformation
of the 1990s and is consistently
increasing its growth”.
Typical of the expansion in German
ports to cope with rising traffic demands
is Brake on the Lower Weser, where construction
has begun on a EUR 37.5 million
project. A new 270 m quayside, costing
EUR 14.5 million, is being built to 2009
with road and rail facilities behind two
berths. The facility can be expanded later
by 180 m to 450 m. Brake handled 2.3 million
tons in the first half of this year after
5.5 million tons in the whole of 2006. Officials
said its existing facilities have reached
saturation point.
tom todd
54 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

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PORTs & maRiTimE lOGisTiCs
The building of the Baltic Juice Terminal in Ventspils was finished in 2006. The terminal is constructed for unloading
and storage of juice concentrate.
Passenger terminals
being built in Latvia
Last year, Latvian ports loaded 59.5
million tons of goods. At the same
time as the cargo turnover rose in
Ventspils and Riga, Liepaja lost half a million
tons due to the loss of ro-ro cargo.
Latvia
On September 19, when it rained cats and
dogs, passengers arriving in Riga could walk
towards the terminal through a beautiful
new glass corridor. The skyway was finally
ready for use, “only” four and a half years
after opening the Riga–Stockholm passenger
route. And even though the skyway was
attached to the berth in the spring it took
another four and a half months after the
start of the peak of the tourism season of
2007 before the permit to use the skyway
was signed and ready. Nearly half a million
passengers on daily departing ferries could
be an argument for the Riga City Government
to build a walkway from the Old
Town to the port and install signs pointing
to the port. Hopefully, the Riga Passenger
Terminal will continue investments so that
passengers will come to a decent passenger
terminal, provided with all the required
services.
Under roof in Ventspils
The number of passengers in Ventspils is five
times lower than in Riga. However, the construction
of a passenger terminal is in progress
and a glass corridor for boarding ships was in
use already at the end of the summer.
Coal will soon enjoy dry conditions as
well. The Baltic Coal Terminal, which will
have a capacity of five million tons, has
been designed to receive ships with a deadweight
of 120,000 and to load coal under a
roof. At present, the Ventspils Commercial
Port loads coal from wagons to ships outdoors.
Last year, four million tons of coal
was loaded in Ventspils and this year the
figure will presumably be higher.
Last year, Latvian ports loaded 22.5
million tons of oil and oil products, i.e.
38 per cent of the cargo turnover of all
Latvian ports. Since crude oil is not transported
through a pipeline anymore and
oil products were transported to Latvia by
a pipeline only in the amount of 6.7 million
tons, the logistics chain in Ventspils
has been reoriented to reloading oil and oil
products sent by railway and ships.
Last year, the Vitol Group purchased
56 sCandinaVian sHiPPinG GaZETTE • OCTOBER 26, 2007
madli ViTismann

Ventspils Nafta Terminals. Even before
that about a quarter of oil and oil products
were imported by sea. In cooperation with
Belarus, the Vitol Group sees the opportunity
to reverse the direction of operation of
the Ventspils–Novopolotsk oil pipeline in
order to transport the crude oil unloaded
from ships to Belarus. Heavy fuel oil will
be available besides crude oil, diesel fuel
and petrol.
Finally, containers have reached the
Noord Natie Ventspils Terminals. Last
year, the level of 14,200 TEU was reached
in cooperation with Samskip’s shipping
line and in the first nine months of this
year a level of 13,000 TEU has been
reached. The quantity of ro-ro cargo rose
by 2.5 times with the help of Scandlines
shipping lines.
Aivar Lembergs, the Mayor of Ventspils
and the Chairman of the Supervisory Board
of the Freeport of Ventspils, has been placed
under house arrest. He has been charged
with bribery and abuse of power, and the
investigation of the matter is in process.
The mayor and other persons arrested in
connection with the criminal matter were
connected with several port operators.
The operators of the Freeport of Riga
handle more and more containers. A container
train has been running to Moscow
since August, carrying Chinese goods in
transit. The owners of Russian corporation
National Container Company are planning
to construct a container terminal with
a capacity of up to two million TEU, in
addition to the terminals which are currently
handling less than 200,000 TEU per
year.
Coal has a big share
The share of coal in the cargo turnover
of the Port of Riga is 43 per cent and the
quantity of coal has not decreased noticeably.
Last year, over ten million tons of it
was loaded, but in the first nine months
of this year the quantity of dry bulk was
7.6 per cent lower than in the same period
last year. The quantity of ro-ro cargo has
increased owing to shipping lines.
The Freeport of Riga got rid of the Baltic
Kristina, which had been laid up for 18
months. The ferry was sold to Germany
and the Freeport Authority could sum up
the losses.
In Liepaja the ro-ro cargo, lost due to
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PORTS & MARITIME LOGISTICS
Scandlines leaving, was replaced by container
business. Kurshiu Linija decided to
choose Liepaja for the shipping line coming
from Western Europe twice a week and
it remained so even after Containerships
purchased this Lithuanian operator.
In the beginning of October, Containerships
launched a container train from
Liepaja to Moscow, while containers continue
to be sent to St Petersburg by sea.
It is too early to expect any results,
because it may happen that the idea, which
seems expedient when looking at the map,
may in reality get tangled. If all goes well,
Containerships will have the train run
twice a week next year.
Terrabalt re-qualified as a container operator
and since there is room for a container
terminal in the Port of Liepaja, it may
reach a capacity of up to 120,000 TEU in
the future. The present level of 5,708 TEU
is just the start.
The cargo turnover of the Port of Liepaja
has remained around four million tons in
recent years, but cheaper goods are being
gradually replaced by more expensive
ones.
madli vitismann
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SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 57

PORTs & maRiTimE lOGisTiCs
The container terminal of the Klaipeda Terminal Group.
transit on the rise
in Lithuania
The cargo turnover of Klaipeda State
Seaport is rising, because the port
handles primarily Lithuanian goods.
The latter accounted for 15.8 million tons
out of the 23.6 million tons handled last
year. The port will be able to cope with an
annual turnover growth of eight per cent
over the next ten years. This means that
the port’s capacity could rise up to 45 million
tons, but that would be the maximum
that the port can handle.
Lithuania
According to Sigitas Dobilinskas, the Director
of Klaipeda State Seaport, the port is
dominated by Lithuanian capital unlike,
for instance, the Port of Tallinn, which is
dominated by Russian capital. Therefore
the director cannot say if the quantity of
Russian goods is increasing in Klaipeda
because or regardless of it.
In the years of preparation of the K2
Project (Klaipeda and Kaliningrad) the
quantity of Russian goods doubled in Klaipeda,
but still remained low: over three
years it rose from 843,000 tons to 1.4 million
tons. The political coat that was put
on the K2 Project rather interferes with
than helps to implement this positive idea.
Klaipeda and Kaliningrad are both far from
Moscow and other places and Belarus with
its tariffs is also in the way. Mr Dobilinskas
does not consider the project to be very
promising mainly because of this political
interpretation.
Mineral fertilisers (29 per cent), ro-ro
cargo (29 per cent) and oil products (17 per
cent) rose last year. The growth rate of various
classes of goods accelerated further this
year. The cargo turnover rose 16.4 per cent
in the first nine months of the year, while
the quantity of fertilisers handled rose 48
per cent, that of containers rose 44 per cent
and that of liquid fertilisers rose 42 per
cent year on year.
Viking runs, Mercury does not
In cooperation with port operators and
Lithuanian Railways the port has launched
container trains in order to optimise the
logistics chain. Viking runs three times a
week to Odessa in 55 hours. However, the
Mercury route from Kaliningrad to Minsk
and Moscow over Klaipeda is rather virtual
– the railway, trains and tariffs are there,
but containers are not carried.
58 sCandinavian sHiPPinG GaZETTE • OCTOBER 26, 2007
madli viTismann

According to Edvinas Kateiva, the Market
Research Analyst at Klaipeda State
Seaport, the strong growth of containers
turnover has resulted in the launch of
the second container terminal, Klaipedos
Smelte. It is likely that this year Klaipeda
will handle 300,000 TEU.
Exchange of goods with Western Europe
accounts for 75 per cent of the goods passing
through Klaipeda State Seaport. The
share of transit may rise to 10 million tons
of the cargo turnover of 28 million forecast
for this year. According to the forecast fertilisers,
oil products and food from Belarus
will amount to 5.5 million tons and the
share of Russian goods will rise to 3 million
tons.
Oil import in Butinge
In the first nine months of this year the
Butinge terminal handled 3.8 million tons
of crude oil, which is a decrease of 16 per
cent year on year. Last autumn a third of
the turnover of the Butinge terminal was
comprised of imports, but this year all the
turnover was comprised of imports.
After the sale of the Mazheikiu Nafta to
the Polish PKN Orlen there is not much
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Representatives in Finland
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hope that the Druzhba oil pipeline will start
bringing crude oil to Mazheikiai. Therefore
PKN Orlen has searched for other opportunities
and expressed interest in buying
Klaipedos Nafta. However, the government
considers the state’s oil terminal to be of strategic
importance and does not want to sell,
because it allows for obtaining oil products
even if other transport routes are blocked.
The political coat that
was put on the K2 Project
rather interferes with than
helps to implement
this positive idea.
Literally, the end of the pipeline has been
turned the opposite way in Butinge: the
terminal, which was built for loading ships,
has done nothing but unloading ships this
year. Crude oil imported from South and
Central America by sea is transported to
Mazheikiai by pipeline and from there
oil products are transported to Klaipedos
GET THE SOURCE – GET THE BIG PICTURE
PORTs & maRiTimE lOGisTiCs
Nafta. It is natural that in order to keep
the scheme in operation PKN Orlen wants
to build a pipeline from the oil refinery of
Mazheikiu Nafta to the terminal of Klaipedos
Nafta.
The second oil terminal, Kroviniu Terminalas,
loads oil products brought from Kaliningrad
in smaller ships to larger ones and by
the end of the year approximately two million
tons of oil products will be handled.
The EU helps to build the port
The present passenger terminal of Klaipeda
is located behind the city, where the
port ends. However, a quarter of a million
passengers a year is a serious argument, so
the building of a new passenger and ro-ro
terminal by 2009 is planned, in a location
that is far more suitable for passengers.
For the first time the EU supports construction
of a port in Lithuania – investments
amounting to nearly EUR 87 million
have been planned for six years. Both
Klaipeda State Seaport and Port of Sventoji,
which is located north of Palanga, will
get about a half of the amount for port
construction purposes.
madli vitismann
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PORTs & MaRITIME lOGIsTICs
Too many ports
– too little cargo
Oslo port, Kneppeskjær.
OslO Havn
Around 300 local Norwegian communities
borders on coastal waters
and about 80 per cent of the
population of 4.5 million lives less than
ten kilometres from the sea, making the
country ideal for sea transport. Despite
these favourable geographical conditions
for domestic sea transport, it is gradually
losing out to road transport, from a 70 per
cent share in 1960 to 45 per cent today.
Norway
However, in the export/import market all
of 95 per cent is going by sea, excluding
sea transport on the Norwegian Continental
Shelf (NCS). Cargo turnover in Norwegian
ports in the first quarter of 2007 show
a downturn of 1.9 per cent to 44.6 million
tons, according to statistics collated by Statistics
Norway. 14.7 tons was transported
between Norwegian ports, while 29.9 million
tons was export/import business.
Domestic sea transport
is gradually losing out
to road transport.
However, more and more is transported
in containers. During the quarter another
2,683 TEUs were added to 152,259 TEUs
compared to the first quarter of 2006.
Reduced total cargo turnover
According to Statistics Norway total cargo
turnover was reduced by 4.6 million tons
(2.3 per cent) to 183 million tons from
2005 to 2006 at the big and medium
municipal ports and the big private ports,
while the smaller ports handled 15.6 million
tons, 3.6 million tons less than a year
ago. Bergen remains the biggest port by
volume, mainly thanks to the oil terminal
and refinery at Mongstad. The refinery
alone has a turnover of ten million tons
per year, of which most is distributed by
sea. When it comes to crude oil and products
export Mongstad is second in Europe,
60 sCanDInavIan sHIPPInG GaZETTE • OCTOBER 26, 2007

norway’s only iron ore port, narvik, handles
around 16 million tons per year.
after Rotterdam. Norway’s only iron ore
port, Narvik, handles around 16 million
tons per year, most of it exports from the
Swedish mines at Kiruna. Third on the
list, Karmsund, handles around 14 million
tons, a lot of it Hydro’s aluminum products
from their works at Karmøy. Number
five on the list, Tønsberg, needs an explanatory
note, as the port area includes Esso’s
Slagen Refinery.
Container capacity increases
Norwegian ports handled 152,250 TEUs,
carrying 1.05 million tons during the first
quarter of 2007, up from 149,567 TEUs,
carrying 1.02 million tons in the first quarter
of 2006. Most of the Norwegian container
capacity is concentrated around the
Oslo Fjord with Oslo as the country’s leading
container port with 31 per cent of the
traffic. Other important container ports
in the Oslo Fjord area are Moss, Larvik,
Kristiansand, Grenland and Borg, all with
between 11,000 and 15,000 TEUs during
the first quarter of the year.
The offshore bases
Bases servicing the offshore industry are not
commercial ports in the traditional sense.
Nevertheless these bases, dotted along the
Norwegian coast from Stavanger to Hammerfest,
provide the umbilical cord by
which the platforms and rig offshore are
connected to shore based facilities. According
to official Norwegian statistics there are
12 companies operating supply bases in Norway,
some operating more than one base.
Around 600 people work in these operating
companies, which has a yearly turnover of
just under NOK one billion. The ten most
important offshore supply bases in Norway
are Coast Center Base, Vestbase, Fjord Base,
Risavika/Tananger, Sola Havn, Dusavik,
Stordbase, Mongstadbase, Helgelandsbase
and Polarbase. We once defined an offshore
base as a catalyst of all the different players
that provide the services the oil companies
NORWAY’S lARGEST PORTS, TURNOVER
(1,000 t) 2003 2004 2005 2006 1st Qt 2007
Bergen 76,405 75,635 73,874 67,864 16,284
Narvik 14,145 15,568 15,967 16,074 3,940
Karmsund 13,505 13,360 14,093 14,085 3,790
Grenland 9,773 9,656 9,805 10,155 2,769
Tønsberg 10,520 10,520 9,886 11,491 2,708
Oslo 6,021 6,141 5,978 6,410 1,614
Molde & Romsdal 157 136 203 6,148 1,585
Kristiansund & Nordmøre 1,806 4,546 5,004 5,910 1,237
Mo i Rana 2,983 3,648 3,488 3,428 921
Drammen 2,211 2,823 3,159 2,940 910
Borg 3,538 3,476 3,015 2,951 645
Source: Statistics Norway
require – services which include base organisation,
installation service, supply vessel
operation, helicopter service and a multitude
of suppliers providing everything from
food to steel piping.
Sucked into politics
Most Norwegian ports are municipal and
as such sucked into local politics. The Port
and Seaways Act of 1984 states clearly that
ports are to retain financial autonomy and
be self-financing. As such the ports ought
to be independent. They are not, mainly
because they work under the under the
keen eye of of the Ministry of Fisheries and
Coastal Affairs. This structure has often prevented
reform. However, changes in modern
logistics, environmental demands and a
more progressive transport policy has led to
a revision of the present Port and Seaways
Act of 1984. The presumption is that a proposal
will be put before the Norwegian parliament
(Stortinget) before the end of this
year. The present act needs modernising to
include more recent policy measures.
National Transport Plan
In 2003 a National Transport Plan (NTP)
for the period 2006 to 2015 was adopted
to integrate all modes of transport into one
national plan. One central objective is to
enforce intermodality in the transport sector
and to shift more cargo from land to
sea. So far the measures embedded in the
NTP have not been carried out successfully.
Rather, domestic sea transport continues
to lose out, particularly to road transport.
With the high seaways fees sea transport is
for all intent and purposes subsidising road
transport. The NTP does not address this
problem and, until it does, the balance will
not be redressed. A revised NTP for the
period 2010 to 2019 is unlikely to grapple
PORTs & MaRITIME lOGIsTICs
NORWAY’S TEN lARGEST
CONTAINER PORTS
(TEU turnover) 1st Qt 2007
Oslo 46,903
Moss 14,605
Larvik 11,540
Kristiansand 11,390
Grenland 11,317
Ålesund 9,455
Bodø 8,659
Borg 7,299
Bergen 6,208
Stavanger 5,289
Source: Statistics Norway
with the politically thorny balance between
the sea and land modes of transport. All
they have done so far is to reclassify ports
into national ports and other ports. The
national ports are supposed to be intermodal,
the other ports are either less efficient
or do otherwise not qualify according to
the European Union. The notion is that
Norwegian ports by and large are too small
to be a fully integrated link in intermodality,
i.e. the transport chain with two or
more modes of transport involved.
Too many ports
When King Eystein ordered a breakwater
built at Agdenes in the thirteenth century
he started what can only be termed a prolific
port building program. We noted earlier
that around 300 communities are bordering
the sea. They all have their own port,
in some cases fishing ports and they are
open for business. The abundance of port
facilities, but too little cargo to go around,
is an inherent of all Norwegian ports. But
too reduce the number of ports is politically
very difficult, if not impossible.
petter arentz
sCanDInavIan sHIPPInG GaZETTE • OCTOBER 26, 2007 61

PORTS & MARITIME LOGISTICS
Boom in economy
and in container turnover
Picture taken from the lighthouse in the port of Kolobrzeg.
The growth of the economy (6,7 per
cent) that Poland experienced during
the fi rst half of 2007 was considerably
higher than expected. Some people
maintain that it was driven by the construction
sector.
POLAND
This can however not be the only reason.
There has also been a rise in cargo turnover
and changes in the cargo structure of the
Polish ports.
There must be some other motors of
economic growth apart from the construction
sector. The container revolution taking
place in Polish ports right now is an
obvious evidence for that.
The number of containers handled in
Polish ports increases by 15–16 per cent
each year (world average is 9.2–11 per
cent). A report released by Actia Forum
in the fi rst half of 2007 shows that Polish
ports are experiencing the fastest development
of all Baltic ports.
Container handling grew fastest in
Szczecin-Swinoujscie (+16.4 per cent) and
Gdynia (+15.2 per cent). According to the
analysts, container handling will increase
by 244 per cent during the next ten years.
In the same period, capacity is to be tripled,
from 938,000 TEU (20 feet containers)
to 2,978,000 TEU. Only Russian ports
will face a faster development. In the years
2004–2008, total investments will reach
approximately PLN 500 million (EUR 135
million). Russian investments are to be
four times higher.
Growing capacity
Altogether Polish ports handled 582,000
TEU in 2006. Only in Gdynia, which has
the largest container turnover, 461,200 TEU
were handled. Thanks to the investments
during the next fi ve years, the capacity of
Polish ports will become considerably high-
er. Polish ports will be able to handle eight
million containers a year. Within the fi rst
fi ve years after the investments have been
completed the ports will be able to handle
four times more containers than now.
Ports are trying to invest as much as possible
since the analysts predict that commercial
trade with East European nations
will expand. Today the capacity in Polish
ports is approximately 1.7 million containers
a year, which is a lot more than the current
demand. Within the following years
the capacity is to be four times bigger.
The container turnover in Gdynia grew
by 15 per cent in 2006 and the increase is
accelerating this year. At three terminals
in Gdynia – Baltic Container Terminal
(BCT), Gdynia Container Terminal and
Baltic General Cargo Terminal – 288,200
TEU have been handled in the fi rst half of
2007, a 37 per cent growth in comparison
with the fi rst half of 2006.
Regular investments in all terminals in
62 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007
LESZEK SZyMANSKI

CONTAINER HANDLING IN pOLIsH pORTs, mARCH 2007
Terminal Berths length/ TEu capacity storage Handling rate
ship berthing p.a. capacity (containers/
number hour)
Baltic Container
Terminal, Gdynia
800 m/4 750,000 18,000 25
Baltic General Cargo
Terminal, Gdynia
420 m/1 25,000 800 25
Gdynia Container
Terminal, Gdynia
450 m/2 150,000 3,660 25
Gdansk Container
Terminal, Gdansk
370 m/2 100,000 3,500 35
Deepwater Container
Terminal, Gdansk
650 m 500,000 35,000
Drobnica-Port,
Szczecin
375 m/2 50,000 2,000 23
VGN Polska,
Swinoujscie
330 m/2 50,000 1,500 25
Total 3,395 m 1,625,000 64,460
Source: Namiary na Morze i Handel March 2007; Special Suplement: Containers p 25
CARGO sTRuCTuRE 2006 (mAIN pORTs)
(1,000 t)
Cargo groups Gdansk Gdynia szczecin-
swinoujscie
Timber 42.3 41.3
General Cargo 1,966.8 8,819.8 7,546.2
Other bulk cargoes 2,922.6 2,138.0 2,663.0
Fuels 12,923.6 666.8 725.9
Ore 23.5 – 1,349.1
Coal & coke 4,131.0 1,022.0 5,080.6
Grain 439.6 1,510.1 1,812.3
Total 2006 22,407.1 14,199.0 19,218.4
Source: Actia Forum: Polskie porty morskie w 2006, Dr Maciej Matczak & Bogdan Ołdakowski
Comments to statistical tables:
The statistics show that stagnation in the total cargo turnover was caused mainly by
structural changes. There has been a significant fall in handling of dry bulk cargoes,
especially coal, coke and ore. The drop was dramatic in the ports of Szczecin and
Swinoujscie. The turnover decrease in Gdansk was compensated to a certain extent
by the rise in oil products handling. Gdynia, where focus is mainly on general cargo
handling, gained most after the change in the cargo transshipment structure. The
increase of cargo handled in this port was larger than the combined decrease in
Szczecin, Swinoujscie and Gdansk.
PORTS & MARITIME LOGISTICS
CONTAINER HANDLING EquIpmENT
Baltic Container 6 STS gantries thereof
Terminal, Gdynia 2 of 40 t, 1 unit of 55 t,
3 units of 60 t,
4 railmounted gantries
Freuhauf 35/40 t;
18 RTG cranes 30,
5/35/40 t;
2 straddle carriers;
1 mobile crane;
27 yard tractors;
20 diesel and electric forklifts;
34 RTs
Baltic General Cargo 1 gantry crane Famak 40/45 t;
Terminal, Gdynia 1 reach stacker Kalmar 45 t;
1 Valmet carrier20’ 32 t;
1 Valmet carrier20’ 25 t
Gdynia Container 2 STS gantries Paceco –40 t;
Terminal, Gdynia 1 mobile crane Gottwald
–100/35 t;
4 RTG cranes 40 t;
2 reach stackers Liebherr 45 t
Gdansk Container 2 Kone gantry cranes
Terminal, Gdansk rail mounted 32/40 t;
2 shore cranes Famak 40 t;
1 straddle carrier 40 t;
1 mobile crane Liebherr –100 t;
Deepwater Container 3 post-panamax Liebherr
Terminal, Gdansk 50/60 t STS cranes;
5 RTG Liebherr 40 t cranes;
1 reach stacker SMW Kone 45 t;
1 ECH SMV Kone
Drobnica-Port, 1 Gottwald 50 t
Szczecin mobile crane;
3 reach stackers 2 x 45 and 40 t
VGN Polska, 1 panamax STS gantry
Swinoujscie crane Kocks 45 t;
1 back up crane 45 t;
2 RTG Reggiane 36 t;
2 reach stackers 46 and 35 t;
3 RT, 1 sideloader
Source: Namiary na Morze i Handel March 2007;
Special Supplement: Containers p 25
CARGO TuRNOvER IN pOLIsH mAIN pORTs 1990–2006, 1,000 T
1990 2000 2001 2002 2003 2004 2005 2006 2006:2005
Gdynia 9,967 8,599 8,458 9,365 9,748 10,740 12,230 14,199 +16.1 %
Szczecin-Swinoujscie 14,593 18,876 18,161 17,367 15,646 15,570 1 20,019 2 19,218 -4.0 %
Gdansk 18,613 16,596 17,884 17,372 21,292 23,310 23,341 22,407 -4.0 %
Total 43,173 44,071 44,503 44,104 46,686 49,620 55,590 55,824 +0.4 %
1) Szczecin-Swinoujscie Seaport Authority area only
2) All port areas Source: Actia Forum: Polskie porty morskie w 2006, Dr Maciej Matczak & Bogdan Ołdakowski
CONTAINERs IN pOLIsH pORTs, TEu
2000 2001 2002 2003 2004 2005 2006 2006:2005
Gdynia 188,272 217,024 252,247 308,619 377,236 400,165 461,170 +15.2 %
Szczecin-Swinoujscie 21,865 19,960 19,367 21,628 27,680 36,453 42,424 +16.4 %
Gdansk 18,037 24,435 20,136 22,537 43,739 70,014 78,364 +11.9 %
Total 228,174 261,419 291,750 352,784 448,655 506,632 581,958 +14.9 %
Source: Actia Forum: Polskie porty morskie w 2006, Dr Maciej Matczak & Bogdan Ołdakowski
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 63

PORTS & MARITIME LOGISTICS
The entrance of the port in Kolobrzeg has been broadened.
the port of Gdynia, which this year celebrates
its 85th anniversary, will increase
capacity in Gdynia alone to an estimated
one million TEU a year.
Also in Swinoujscie container turnover
grows at a faster pace. VGN Terminal is
called by container ships twice a week. The
terminal has signed a contract with Icelandic
Samskip that operates a service between
Swinoujscie and Hull in England (45-feet
containers) and poses a real threat to roadhauled
trailer transports.
Szczecin is also experiencing growth. So
far containers have been handled mainly at
the Czeskie quay but a new container terminal
is being built on Ostrow Grabowski.
The terminal is to be completed by the
beginning of 2008. Capacity is planned to
reach 80,0000 TEU and further expansion
will be possible.
Become the leading container hub
The ambition of the Port of Gdansk is
to become the leading hub for container
transshipments in the Baltic Sea region.
In the Inner Port, situated at the Martwa
Wisla, there is a smaller and well managed
terminal, the Gdanski Terminal Kontenerowy
(GTC). Handling is now restricted by
lack of storage facilities, making it impossible
to handle many containers at the same
time. This may change when planned road
investments have been completed. GTC
has received a new efficient gantry crane
(40 t), which will definitely increase efficiency
in the terminal.
The huge terminal site of Deep Water
Terminal Gdansk, in Port Polnocny (Northern
Harbour), is completed, and the largest
container ships in Baltic Sea trades will
be able to call the terminal. A test call has
been made by the 822-TEU Gotland of
Football supporters seem
to be far more convincing
to Warsaw than the
basic need of acceptable
infrastructure for economic
development.
Team Lines, discharging 53 Hapaq-Loyd
containers, and the terminal will by fully
operational at the end of October 2007.
Capacity will be 500,000 TEU annually.
Marek Czerkowski of Deep Water Terminal
Gdansk predicts that the terminal will
handle at least 20,000 TEU during the rest
of this year.
Since the end of September 2007, DCT
Gdansk operates three ship-to-shore (STS)
post-panamax gantry cranes and five RTGs.
The next stage of DCT is to increase capacity
at the deepwater terminal to at least one
million TEUs a year.
In the close neighbourhood of DCT, a
210-hectare logistics centre is developed.
So far, only Team Lines and CMA CGM
have openly expressed interest in the terminal.
However, it is more than sure that
the experienced team of English managers
including Collin Chanter and Robin
Macleod does not reveal all its plans.
There is yet another question to deal
with, and that is to connect the terminal
and the entire port with the new A1 motorway.
This is vital, but today there are some
delays at the so-called Trasa Sucharskiego.
The container terminals in Gdynia have
the same problem. The increased container
turnover means that development of the
LESZEK SZyMANSKI
road infrastructure is absolutely necessary.
According to a report from the Supreme
Chamber of Control, the ports of Gdansk
and Gdynia lose USD 250 million a year
because of the lack of the A1 motorway
connection. Forwarders from southern
Poland, Slovakia and The Czech Republic
prefer the longer but much better German
motorways and the ports of Hamburg,
Bremerhaven or Rotterdam before the narrow
and dangerous National Road No1,
which is the only way to get from Gdansk
to southern Poland.
motorway ready by 2010
In 2005 work on the long awaited A1 was
finally started. The first phase is a 90-kilometre
road from Gdansk to Grudziadz.
The next phase, Grudziadz–Torun, is to be
started in the spring next year. The Polish
government has promised that the entire
motorway will be ready by the end of 2010.
Thanks to funds provided by EU in
2006, construction of a connection with
the port of Gdynia has begun. The 3.5 kilometre
long road, which Gdynia has awaited
for nearly 30 years, will connect the already
existing ring way with Estakada Kwiatkowskiego,
a two-lane road that leads to the port,
shipyard and the navy base.
The total investment is PLN 240 million
(EUR 64 million). PLN 180 million (EUR
48 million) comes from EU funds, and the
rest is covered by city of Gdynia. If everything
goes according to plan, the road will
be completed before 2008.
In Gdansk, Trasa Sucharskiego road will
connect the port with A1. The project
includes construction of an 800 metres
long road tunnel under the port channel,
the first such tunnel in Poland. The cost
for the project, including the tunnel, splitlevel
crossings and an eight kilometres long
road, is estimated to PLN 1,2 billion (EUR
322 million), two thirds of the sum to be
financed by EU and the city of Gdansk.
Some say that the main reason behind
the projects, finally giving the ports good
road and railway connections with their
hinterland, is the European Football Cup
that will be held in Poland and Ukraine in
2012. Football supporters demanding new
roads seem to be far more convincing to
Warsaw than the basic need of acceptable
infrastructure for economic development.
After all, the poor road and railway infrastructure
is a result of the fact that this field
has been neglected for many years.
leszek szymanski
64 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

Publishing day: November 23, 2007
Deadline for space: November 12, 2007
Maritime Denmark
the November issue from
Scandinavian Shipping Gazette
Read about:
Recruitment in Denmark
Danish yard to build bulkcarriers
The Danish Maritime Cluster in Göteborg
The Danish Seamans Church in Algeciras (Spain)
J. Lauritzen
MAN/B&W
And much more
Tedd Juhlin +46-31 62 95 84
Odd-Einar Reseland +47-47 33 29 96
Stig-Johan Lundström +358-45 13 24 499 www.shipgaz.com
Photo: Bent Mikkelsen

POrTS & MAriTiMe lOGiSTiCS
Big plans
in Big Port
of St Petersburg
The bulk terminal in Ust-luga. Ust-luga doubled handling throughput, reaching 4.4 million tons
in January–August 2007.
The stevedores operating in the Big
port of St Petersburg handled 39.43
million tons during the fi rst eight
months of 2007. This is a 12.7 per cent plus
year on year. Containerised cargoes were
up by 13.5 per cent to 11 million tons,
refrigerated cargoes up by 13.8 per cent to
2.6 million tons, mineral fertilizers up by
40.7 per cent to 4.3 million tons.
RUSSIA
Oil and products volume amounted to 9.6
million tons (+13 per cent), piece goods
to 366,400 tons (+23.2 per cent), coal and
coke to 1.7 million tons (+95.3 per cent),
grains to 443,200 tons (+77.2 per cent),
ore to 510,000 tons (+15.1 per cent). Ferrous
metals handling decreased by 10.2
per cent to 2.99 million tons, non-ferrous
metals – by 7.5 per cent to 985,900 tons,
and metal scrap – by 17.3 per cent to 1.7
million tons.
Container traffi c via St Petersburg made
1.1 million TEUs, which is 23.5 per cent
more than in January–August 2006. It is
worth noting that the fi rst million TEUs
of St Petersburg was handled in December
2005.
A new trend in St Petersburg is developing
car terminals to handle the growing
import. Traditionally, the lion’s share of
Russia’s new car import enters the country
via the border to Finland, and Finnish
ports take all the cream off this big pot of
milk. So far Russian ports have little to
offer to car importers.
In St Petersburg there are currently two
facilities operating: Onega Terminal and
Sea Fishery Port, both started the car business
quite recently. Onega served its fi rst
ship at the end of 2006, Sea Fishery Port in
June this year. By the end of 2007 Onega
is to expand the terminal capacity up to
120,000–150,000 units per annum. Both
the terminals handle Nissan cars, but do
not view each other as competitors:
“There are enough cars for everyone due
to the defi cit of facilities”, says Vladimir
Avigdor, MD of the Fishery Port.
Both terminals plan to expand into container
business.
Sea Port of St Petersburg, JSC, has also
voiced plans to develop a car terminal to
handle some 80,000 cars annually. The
estimated project cost is USD 5 million.
The new facility will occupy the territory
of the existing Timber Stevedoring Co,
which will be renamed Third Stevedoring
Co (the Sea Port holding already incorporates
First, Second and Fourth Stevedoring
companies).
Another new project at St Petersburg is
a dry cargo port in Lomonosov, a vicinity
of St Petersburg. At the end of September
Baltimor Concern held a presentation to
demonstrate the three berths already in
operation. Currently the company handles
timber on the berths rented from the Ministry
of Defense. By 2020 Baltimor expects
to increase the capacity up to 40 million
tons of containerized, refrigerated and gen-
66 SCAndinAViAn SHiPPinG GAZeTTe • OCTOBer 26, 2007
AlexAnder KAlinin

eral cargo and cars. The company is also
considering developing a passenger terminal
as an option.
Meanwhile the passenger terminal Morskoy
Facade (“Sea Façade”), already under
construction in St Petersburg, is to serve its
first ship in 2008. However, regular largescale
passenger traffic via the terminal is
expected no earlier than by 2010. The
project worth some RUB 29 billion (EUR
820 million) envisages seven berths capable
of serving seven ships at a time.
Leningrad Oblast Ports
The ports of Leningrad Oblast (the administrative
territory in North-West Russia surrounding
the city of St Petersburg) increased
their throughput during January–August
2007 by 19.3 per cent year on year to 64.9
million tons. The lion’s share of this volume
was handled by Primorsk – 49.3 million tons
during the eight months, which is a 14.8 per
cent plus year on year. In August Transneft
(the owner and operator of the Baltic Pipeline
System, the final point of which is the
Primorsk oil terminal) received permission
to go ahead with the BPS-2 project aimed
at redirecting export designated crude, cur-
rently transported via the territory of Belarus
to the new Unecha–Primorsk pipeline,
and, consequently, to Primorsk.
Vyssotsk increased handling volumes by
22.2 per cent year on year to 10.6 million
tons. Ust-Luga doubled handling throughput
reaching 4.4 million tons in January–
August 2007. Vyborg was the only port in
Leningrad Oblast that faced a decrease in
handling (down by 13 per cent to 648,700
tons). The explanation is the change of the
owners – this year Oslo Marine acquired
the port from Rosa Holding. The new owners
intend to change the port specialization
and develop container and ro-ro operations
there.
86.8 per cent of the entire Leningrad
Oblast ports’ cargo throughput is oil and
products. The figure for the first eight
months of 2007 makes 57.1 million tons
exceeding the similar period’s result of
2006 by 16.6 per cent. Coal and coke were
up by 47.7 per cent to 6.9 million tons,
chemicals by 21.6 per cent (to 213,400
tons), cast iron by 31.3 per cent (to 77,700
tons), timber and logs by 1.7 per cent (to
430,900 tons), and fertilizers by 9.2 per
cent (to 7,100 tons).
Vyborg in January–August 2007
decreased in only the handling of two types
of cargo, cast iron (-77.2 per cent to 13,500
tons) and timber and logs (-53 per cent to
124,600 tons). However, this was enough
for the port to drop volumes even though
other cargo types were up. Liquid cargoes
increased by 34 per cent (to 103,200
tons), coal and coke by 20.4 per cent (to
103,200 tons), chemicals by 21.6 per cent
(to 213,400 tons), fertilizers by 9.2 per cent
(to 7,100 tons).
After Rosa Holding sold Vyborg it
remained the owner of the dry cargo terminal
at Vyssotsk. This asset handling
mainly coal will not be sold, assures Igor
Dubrovsky, head of the holding company.
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AlexAnder KAlinin
POrTS & MAriTiMe lOGiSTiCS
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POrTS & MAriTiMe lOGiSTiCS
The Skirner unloading in the Petrolesport container terminal in St Petersburg.
During the first eight months of 2007 the
consolidated results of Vyssotsk (including
Rosa’s coal terminal and LUKoil’s oil product
terminal) increased by 22.2 per cent to
10.6 million tons. 7.8 million tons of this
volume is oil products, which grew by 29.6
per cent. Coal and coke were up by 5.4 per
cent to 2.8 million tons.
Ust-Luga is continually growing,
although not so rapidly as it used to. Thus,
if at the start of the year the port demonstrated
manifold growth year on year, by
the end of summer 2007 significant growth
was evident only in coal handling (which
made slightly less than 4 million tons).
It looks like Ust-Luga grew not only on
Russian coal earlier exported via the Baltic
countries’ ports (thus, Tallinn during the
first eight months of the year lost 25.8 per
cent of coal throughput), but also at the
expense of Murmansk, which was down by
7.6 per cent.
Timber and logs throughput at Ust-
Luga increased by 93.5 per cent to 306,300
tons. This year the port started handling
cast iron, with the eight months’ result
amounting to 64,200 tons. Other cargoes
amounted to 36,200 tons growing by 97.8
per cent year on year. In June this year a
new universal terminal was launched at
Ust-Luga. This is the third terminal to have
become operable in the port.
In April this year National Container
Company started building a container terminal
at Ust-Luga – at last, one might say,
as the project was announced as long back
as in 2002. The launch of the first stage of
the facility was initially scheduled for 2006.
Later, in 2005, the then company management
promised to put Stage 1 into operation
in 2007.
The delay can be accounted for by the
lack of investment. Now that Industrial
Investors Group – led by former RF Energy
Minister Sergey Generalov – entered the
business, the terminal development seems
to have taken off.
NCC President Alyona Ashurkova says
the two 440 meters long berths are to be
completed by December this year, and
at the beginning of 2009 the company
hopes to serve the first ship. The terminal
is designed for handling 3 million TEUs
annually (with a possibility to be expanded
to 6 million TEUs).
NCC shareholders intend to invest
USD 800 million by 2020 into the project.
Investment from the state budget is expected
to make at least USD 110 million.
Another project that has recently
become associated with Ust-Luga is Sovcomflot’s
oil product terminal. Although
the shipping company has not given any
official comment on the project yet, the
local authorities as well as the management
of Ust-Luga Co JCS, which is the developer
of the port, confirm the information.
According to Tatiana Pauk, a spokeswoman
for Ust-Luga Co, the two companies
reached an agreement on the terminal
construction during the economic forum
in Sochi in September and did not sign it
AlexAnder KAlinin
on paper only due to some “technical reasons”.
The terminal capacity is planned to
make about 10 million tons of fuel oil and
high-octane petrol annually.
Meanwhile, the launch of the multifunctional
terminal Yug-2, initially scheduled
for August this year, is put off till
November. The new terminal is aimed for
receiving and storing new cars.
Kaliningrad
During the eight months of 2007 the stevedores
operating in Kaliningrad proper and
in the two adjacent water basins – in Baltiysk
and Svetly – handled jointly 10.3 million
tons of cargo, which is a 2.9 per cent
minus against the same period of 2006.
Export traffic amounted to 9 million
tons, with coal and coke increasing to
652,900 tons (+46.3 per cent), timber and
logs to 54,000 tons (+0.4 per cent), chemical
fertilizers to 387,500 tons (+0.5 per
cent), ferrous metals to 1.3 million tons
(+11.6 per cent) and containerized cargo to
202,700 tons (+71.8 per cent).
Export designated ferroalloys were down
by 10.7 per cent to 167,100 tons, scrap metal
by 24.9 per cent to 88,500 tons, grains by
67.5 per cent to 14,700 tons, ro-ro cargoes
by 87.2 per cent to 3,100 tons and oil products
by 12.2 per cent to 6 million tons.
Import traffic during January–August
2007 amounted to 1.2 million tons, increasing
by 22.1 per cent year on year. This
included 257,800 tons of grains (+18 per
cent), 575,300 tons of containerized cargo
(+59.5 per cent), 193,600 tons of construction
materials (+25 per cent), 37,100 tons
of refrigerated cargo (-52.3 per cent), 37,200
tons of fish (-66 per cent) and 16,100 tons
of ro-ro cargo (-11.5 per cent).
Cabotage amounted to 82,300 tons,
which is almost twice as much as in January–August
2006.
seanews information & consulting
www.seanews.ru
The oil terminal in Vysotsk.
68 SCAndinAViAn SHiPPinG GAZeTTe • OCTOBer 26, 2007
AlexAnder KAlinin

LEif HanSSon
Major shake-up
at the horizon
The Emma Mærsk calls at the Skandia terminal in the largest port of Scandinavia, Göteborg.
The centre-right government in Sweden
has initiated what could become
a major shake-up of the ports and
maritime infrastructure sector. A recently
published report has identified ten of
Sweden’s over 50 public ports as being of
strategic importance for the nation. The
selection was based on the following criteria:
cargo turnover, existing infrastructure,
environment promotion, safety and security,
development potential and cooperation
with other port operators.
Sweden
Based on this, the following ports were
selected: Göteborg with its partners in
West Sweden Seaports Uddevalla and
Varberg, Helsingborg, Malmö, Trelleborg,
Karlshamn together with Karlskrona, Norrköping,
Kapellskär, Gävle, Sundsvall and
Luleå that has formed an alliance with
Piteå and Skellefteå called North Sweden
Seaports.
These ports handles more than half of
the total cargo turnover in Swedish ports
and they are to be given priority in the
state planning process for development of
land based infrastructure for cargo transportation.
According to the report, the Swedish
Maritime Administration should be
responsible for all fairway development and
maintenance also in these ports. The ports
should also be given an improved pilot
service with a reduction of the maximum
waiting time from five hours to three.
In return, the selected ports should agree
to be public, accessible 24 hours, seven
days a week, participate in regional agreements
on sea and land based infrastructure
and actively develop measures to reduce
environmental impact.
Larger investments ahead
An annual survey carried out by the Swedish
Maritime Administration shows that
planned direct investments in ports and in
road and railway infrastructure connections
will be close to SEK 12.5 billion (EUR 1.4
billion) in the period 2007–2011. This is 25
per cent higher than in the 2005 survey.
Another investigation of improved pilot
services has been given a wider scope. It will
also investigate the current organisation of
the Swedish Maritime Administration and
PoRTS & MaRiTiME LoGiSTiCS
all its functions. This could lead to privatisation
of parts of the administration’s current
tasks. The investigation will also look
into the financing of the administration.
Today, fairway dues paid by the vessels calling
ports in Sweden finance this.
The state should do
what it is best at
and do it effectively.
“The state should do what it is best at and
do it effectively, and there are activities carried
out by the Swedish Maritime Administration
today, that could be handled by
other actors”, says state secretary at the
Ministry of Enterprise, Energy and Communications
Leif Zetterberg to SSG.
The Swedish society is highly dependent
on maritime transport. A total of 104,313
vessel calls were registered last year in
Swedish ports, corresponding to twelve
calls each hour the year around. The trend
with a decrease in the number of calls but
by larger vessels continues. The absolute
SCanDinaVian SHiPPinG GaZETTE • oCToBER 26, 2007 69

PoRTS & MaRiTiME LoGiSTiCS
Sweden’S top ten portS 2006
(1,000 t)
port Cargo turnover
Göteborg 39,912
Brofjorden 18,591
Trelleborg 11,381
Malmö 9,003
Karlshamn 7,650
Helsingborg 7,563
Lulea 7,486
Oxelösund 6,481
Stockholm 5,067
Gävle 4,255
Container handLing 2006
(TEU)
Source: SIKA
port region Loaded empty
Göteborg 645,633 166,421
Malmö–Helsingborg 142,328 32,891
Hudiksvall–Gävle 44,547 30,296
Cargo handLed 2006
(1,000 t)
Source: SIKA
Commodity/Unit discharged Loaded
Liquid bulk 41,073 24,063
Dry Bulk 17,148 15,424
In Containers 4,412 6,201
In ro-ro units 22,204 24,145
Other 9,732 16,084
Total 94,569 85,918
internationaL
paSSenger traffiC 2006
(1,000 t)
Source: SIKA
Country from to
Denmark 6,908 6,859
Finland 4,783 4,776
UK 39 43
Germany 1,152 1,191
Norway 882 463
Other 1,149 1,123
Total 14,913 14,455
Total 2005 14,906 14,765
Source: SIKA
majority of the calls are by ferries. About
30 million people each year choose ferries
to travel to or from Sweden. That is
almost twice the number of passengers on
international flights. In 2006, almost half
(46 per cent) of the passengers travelled
between Sweden and Denmark. Around
eleven million passengers travelled on the
ferries between Helsingborg and Helsingör.
The domestic service between the Swedish
mainland and the island of Gotland had
1.5 million passengers.
Apart from ferries, smaller dry cargo vessels
are the most frequent callers in Swedish
ports with almost 15 per cent of the
calls.
Calls by container carriers and larger roro
vessels are on the increase, while calls
by smaller ro-ro vessels have almost been
halved in the period 1998-2006.
Last year, Swedish ports handled a total
of 180.5 million tons of cargo. 157.8 million
tons, or 87 per cent, were goods in
international trade. Total cargo volumes
have increased by 16.7 per cent since 2002.
Loaded cargo has increased by 21.4 per
cent and discharged by 12.4 per cent.
82 per cent of the international trade
cargo loaded in Swedish ports was destined
to ports in other EU member states.
More than half of the cargo volume was
liquid bulk. Sweden imported 19.3 million
tons of crude oil and 13.3 million tons of
petroleum products. The export of petroleum
products was actually larger with 17.4
million tons shipped abroad, indicating the
large refinery capacity in Sweden.
The growth trend continued during the
first half of 2007. The ports handled 93.8
million tons of cargo, up by almost five
million tons compared to the same period
last year. 13 million passengers travelled to
or from Sweden by ferry, about the same
amount as in the first half of 2006.
Some highlights
from some significant ports
The Port of Göteborg, Sweden’s and Scandinavias
largest, reports sales for SEK 1.5
billion (EUR 164 million) and a pre-tax
profit of SEK 157 million (EUR 17.1 million)
for 2006. The port company has
however been hit by a severe blow recently
because of frequent traffic interruptions,
not least after a lengthy labour conflict.
The Port of Göteborg has invested heavily,
in money and prestige, to become the hub
for Stora Enso. The forest giant has however
decided to move significant cargo volumes
away from Göteborg
“The effect for us has been that the service
has not been fulfilled, including late
loadings and sometimes half filled vessels”,
says Stig Wiklund, head of development
for Stora Enso Logistics, to SSG.
Other large operators like DFDS Tor
Line and Maersk Line have also voiced
their concern and intense negotiations are
currently carried out between port manage-
Cargo handling
development 2002–2006
1,000 tons
100
90
80
70
60
2002
ment and the unions to remedy the situation.
Cargo handling in the port of Helsingborg
increased by 42 per cent during the
first seven months of 2007 compared to
the same period last year, primarily due
to Samskips decision to make Helsingborg
the hub for its Baltic services.
Copenhagen Malmö Port (CMP) had
another prosperous year in 2006 with both
profit and turnover higher than in 2005. In
2006, the net turnover reached SEK 649
million (EUR 71 million) (SEK 602 million
in 2005). The profit before taxes landed
on SEK 93 million (EUR 10.1 million)
(SEK 79.7 million in 2005). CMP handled
16.6 million tons of cargo, up by 1.4 million
tons compared to the year before, and
with 440,000 handled new cars, CMP has
placed itself on the top 20 list of European
car handling ports.
Best example
2003
2004
2005
2006
Source: SIKA
CMP has in an international study by the
Erasmus University in Rotterdam been
identified as the best example of how a
merger between ports should be carried
out. The company expects a significant
increase by about 50 per cent to 2010.
The Port of Trelleborg continues to gain
traffic on Poland and the Swedish train
operator Green Cargo and Polish PKP has
announced that they wish to move train
services from Ystad to Trelleborg. The port
is planning for a significant expansion and
70 SCanDinaVian SHiPPinG GaZETTE • oCToBER 26, 2007

so is the Port of Ystad despite the loss of
ferry services to Trelleborg.
Karlshamn is the fastest growing port in
Sweden. A new railway shuttle connecting
Karlshamn with Göteborg is expected to
boost traffic. The port has formed a strategic
partnership with Karlskrona, where the
ferry service to Poland continues to grow.
September was the first single month with
more than 9,000 freight units carried by
Stena Line’s ferries on the route.
Sole owner
The first phase in the expansion of the
Pampus terminal in Norrköping has been
concluded and the municipality has
become sole owner of the port operating
company in a SEK 243 million (EUR 26.2
million) deal.
The port of Oxelösund is not one of the
ten strategic ports but its cargo volumes
continue to increase. On a twelve month
basis the port had handled 7.6 million tons
by the end of August.
Stockholm has decided to go on with
the Norvik terminal project (see separate
article). Cruise continues to be of significant
importance for Stockholm. In all,
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RoLf P niLSSon
255 cruise ships with 281,000 passengers
called at Ports of Stockholm during the
2007 cruise season. These figures are only
slightly lower than the those of the record
year 2006. The number of turnaround vessels
continues to grow.
Gävle is the third largest container port
specialist
PoRTS & MaRiTiME LoGiSTiCS
Port of Umeå is not one of the ten ports selected as strategically important, but it is a lively
port with good road and rail connections.
in Sweden and the largest on the East coast.
Gävle Containerterminal AB was formed
last year and during its first six months in
operation, container handling in the port
increased by 36 per cent. The terminal has
an annual capacity of about 140,000 TEU.
rolf p nilsson
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SCanDinaVian SHiPPinG GaZETTE • oCToBER 26, 2007 71

Jens Grabbe
fleet news
Editor: Pär-Henrik Sjöström ~ Phone: +358 2 242 62 50 ~ E-mail: par-henrik@shipgaz.com
New T-class
for Maersk Line
The Maersk Tanjong is the first in a new
series of container carriers from Daewoo to
the A. P. Møller-Mærsk Group. The T-class
is a standard type from the Korean Shipbuilder
Daewoo Shipbuilding and Marine
Engineering and has been delivered from
their facilities at Okpo as hull no. 4117.
The ship is a 332 metres long and 43
metres beam container carrier with an official
capacity of 8,043 TEUs of which 750
containers can be reefers. All at a deadweight
of 107,500 DWT. These measures
correspond with the A-class vessels from
Odense Steel Shipyard.
Express service
The first of the T-class vessels has been
deployed on the AE10-service (Asia–
Europe) running from Shanghai via Ningbo,
Xiamen, Yantian and Hong Kong to
Suez, Algeciras, Felixstowe, Zeebrügge
and Dunkerque. The service is an express
service handling the rising export of goods
from China to European consumers.
The super-containerships in the E-class
run another express export service from
China called AE7, where the huge vessels
are often fully loaded on departure
from China. It is not unusual that an Eclass
vessel arrives at Algeciras (first port
of discharge) with a total cargo of 160,000
tons and discharges some 120,000 tons for
distribution to Africa, South America and
North America.
The new T-class vessels are powered by
Wärtsilä 12RT-flex96C engines developing
some 68,640 kW at a service speed of
around 25 knots.
bent mikkelsen
The Maersk Tanjong heading for Hamburg
on her maiden voyage.
The Fennia was built in 1966 and was later renamed the Casino express.
Sad end for the Fennia
The old passenger/car ferry Casino Express,
now renamed C Express, hit the headlines
after the Finnish Environment Institute
SYKE issued a transport ban due to suspicions
about scrapping plans. By mid-October
the vessel was still laid up in the port of
Vasa as the new owner Attar Construction
Ltd was waiting for the transport ban to be
reversed.
This is a sad end for an exceptionally
long career in the Baltic Sea. Built in 1966
as Fennia by Öresundsvarvet AB in Landskrona,
Sweden, she was back then the largest
and most innovative ferry in the rapidly
expanding traffic between Finland and
Sweden. Her owner Oy Siljarederiet Ab
introduced her on the route between Turku
(Åbo), Åland and the new ferry port Värtan
of Stockholm. Her size was regarded sensational
and both her cargo and passenger
capacity were considerably larger than on
the other ferries trading across the Sea of
Åland.
Laid up
Even though new and larger ferries were
introduced in an accelerating pace, the Fennia
continued in Silja Line’s traffic throughout
the 1970’s and she was finally laid up
at Turku in autumn 1982. After some short
charters she entered service with Jakob
Lines in 1984 and moved northwards to the
Gulf of Bothnia. With some exceptions the
ferry spent the rest of her active time there.
Two years later she was transferred to the
Rederi Ab Sally-owned Vasabåtarna, and
her original appearance was dramatically
changed during an extensive refit in Turku.
After Silja’s takeover of the Sally-company
she was back in Silja’s fleet.
The Fennia was a pioneer also in the ferry
traffic between Scandinavia and the Baltic
states. In 1992 she was on charter to a
ferry service between Norrköping and Riga.
In 1993 the Fennia returned to the Quark
(Kvarken). Summer 1999 was the very last
season in this area in Silja Line’s colours,
as the company laid down its routes across
the Quark after the abolishment of the taxfree
trade.
In 2001 the new company RG Line
bought the vessel and she re-entered service
between Vasa and Umeå, now renamed the
Casino Express. In 2005 she was replaced
by the ro-pax ferry RG I and after completing
the summer season in 2005 she has
been laid up at Vasa.
pär-henrik sjöström
72 sCanDInaVIan sHIPPInG GaZeTTe • OCTOber 26, 2007

enT MIkkelsen
Two veteran coasters
left Nordic waters
Two veteran coasters have left North European waters after
more than 40 years of service and are headed for a new life in
South American waters. The oldest ship that has sailed south
is the Rigina, which has been flying the Saint Vincent flag for a
number of years, being owned by a Swedish captain.
The Rigina has been under the command of Captain Gudmundsson
of Gävle and a female mate from Belarus and has
been trading strictly between Poland and Denmark. Gudmundsson
has owned the coaster since 1976, when it was
flying the Swedish flag. Now the 1957-built coaster is sailing
under the Samoan flag, but still named the Rigina as in Captain
Gudmundsson’s Compania Maritima Rigon S.A of Kingstown.
The ship is of Dutch origin and has been targeted as a
museum coaster several times during the last couple of years in
The Netherlands, but without any luck.
During the last five years the Rigina has been under constant
surveillance by Port State Control officers in Poland, Denmark
and Germany with a number of detentions and differences on
the record.
The Ebba Victor
The other veteran is the half shelter decker Ebba Victor from
Härnösand Kommun. She was sold to a Dutch citizen on his
way to West Africa for a new life when the ship got engine
trouble off Brest in France. At the time of writing the vessel is
still lying at Brest repairing her main engine.
The coaster, built in 1964 at Frederikshavn Værft & Tørdok,
has been a training and school ship since 1979. Delivered in
October 1964 as the Ebba Victor (named after shipowner Niels
Victor’s mother) it was the second of a newly designed coaster
capable of 610 DWT at a gross tonnage of 299 brt. Wonsild &
Søn did the commercial management. She was sold in 1973
and became the Svendborgsund until a sale to Sweden in 1977,
becoming the Nettelil. 1979 she got her original name back at
Härnösand. The Ebba Victor was the last of 16 Danish built
sister ships in North European waters.
bent mikkelsen
rigina has left european waters for africa after being too familar
with the Port state Control.
AS GOOD ON
LAND AS IN
THE WATER
Frog is Sweden’s leading marine construction
and diving company. We are a genuine amphibious
outfit, equally at home on land as in and
under the water. Our assignments cover everything
from diving work and ship maintenance to
highly advanced marine service and construction
tasks, including consultancy work in construction
technology and ecology. Although our sphere of
operations stretches across the globe, our focal
market is Scandinavia. Our head office is located
in Gothenburg. www.frog.se
Frog employs 70 people in Sweden, and are growing fast.
For round-the-clock emergency service, phone +46 (0)31 23 19 30.
scp reklambyrå

technical news
Editor: Robert Hermansson ~ Phone: +46 40 15 61 44 ~ E-mail: robert@shipgaz.com
New temperature control valve
Amot has recently introduced the improved
version of the G temperature control valve.
The updated G valve gives optimal matching
to the installation piping and is well
suited for both mixing and diverting applications.
It is mainly used for fluid temperature
control in large diesel and gas engines
for purposes such as oil temperature control,
jacket water cooling, charge air temperature
control etc. The valve has a very low
weight and offers rapid and accurate regulations
of temperatures up to 100° C with
flow rates of maximum 3,000 cbm/hr.
Among the accessories is the new
8071/2D PID controller, that incorporates
temperature dead band, remote alarms and
logic outputs to drive 25A solid state relays
and the advanced 8060 temperature sensor.
For more information please contact:
Paula Halpin, Tel. +44 (0)1737 222 552
E-mail: info@amot.com
www.amot.com
Solvent-free coating
for potable water
Water must be clean, safe to drink and
without surprising taste or smell. Hempel’s
new Hempadur 3556 coating is free of
solvents and benzyl alcohol, thus has no
chemical taste or odour. It provides excellent
corrosion resistance and cathodic protection
and needs minimal maintenance
for up to 25 years. Most of the solvent-free
epoxy coatings on the market require special
paint application equipment or heating.
Hempadur 3556 is formulated for
easy application and there is no need for
heating or thinning even when the paint is
applied at temperatures as low as 10°C.
Hempadur 3556 is a two-component
polyamine adduct cured epoxy coating. It is
approved by Great Britain’s Water Research
Centre, WRAS, according to BS 6920 for
potable water up to 23°C, by Norway’s
Folkehelseinstituttet for use in offshore
potable water tanks and is currently undergoing
US testing to meet NSF standard 61.
For more information please contact:
Michael Aamodt, tel. +45 4527 3673
Mob. +45 2427 0931
E-mail: mia@dk.hempel.com
www.hempel.com
Upgraded engines
from Wärtsilä
Wärtsilä has introduced a new D-version of
the RT-flex50 low speed engine. Compared
to the B-version the new engine has higher
power rating and lower fuel consumption.
The maximum power output has been
raised by 5.1 per cent, from 1,660 to 1,745
kW/cylinder. The running speed is still 124
rpm. Engines with five to eight cylinders
will cover a power range of 6,100–13,960
kW at 99–124 rpm.
Lower fuel consumption
The brake specific fuel consumptions,
BSFC, have been reduced by 2 g/kWh. At
full load this is equivalent to a reduction
from 171 to 169 g/kWh. The lower fuel
consumption is made possible thanks to
high efficiency turbochargers.
The RT-flex50 incorporates the latest
electronically controlled common-rail
technology for fuel injection and valve
actuation. The new technology gives a
great flexibility in engine setting and
benefits such as lower fuel consumptions,
lower minimum running speeds, smokeless
operation at all running speeds and also
better control of exhaust emissions.
Annex VI compliant
As in the older version the bore is 500
mm and the piston stroke 2050. The mean
effective pressure is 21 bar in the new
engine compared to 20 in the older one.
As with all new marine engines, the RTflex50
is fully compliant with the NOx
emission regulation of Annex VI of the
Marpol 1973/78 convention.
For more information please contact:
Lars Andersson, tel. +41 52 26 222 30
E-mail: lars.andersson@wartsila.com
www.wartsila.com
Key pArAmeters of rt-fLex50 mArIne dIeseL engInes
engine version B d
Cylinder bore 500 500 mm
Piston stroke 2,050 2,050 mm
Stroke/bore ratio 4.1 4.1
Power, R1 MCR 1,660 1,745 kW/cylinder
2,260 2,375 bhp/cylinder
Speed range, R1 124 124 rev/min
Mean effective pressure at R1 20.0 21.0 bar
Mean piston speed at R1 8.5 8.5 m/s
Numbers of cylinders 5 to 8 5–8
Power range 5,800–13,280 6,100–13,960 kW
7,900–18,080 8,300–19,000 bhp
BSFC at full-load R1 rating 171 169 g/kWh
126 124 g/bhph
74 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

it & communications
Editor: Petter Arentz ~ Phone +47 33 40 12 00 ~ E-mail: petter@shipgaz.com
Clever AIS transceiver
from Simrad
The new Simrad AI50 is a very
clever, safety and navigation
system for yachts and motorboats.
As the first and the
only Class B AIS transceiver
with fully integrated colour
LCD designed and priced
for the boating market.
Traditionally, the use of
AIS for recreational boats is
reserved to receiving data from
commercial vessels, which are
required to install expensive
and complicated Class A AIS.
The Simrad AI50 receives this information
and also transmits data, enabling all AIS
vessels in the area to know exactly where
you are at all times. The Simrad AI50 displays
and transmits a wealth of information,
including boat name and MMSI, type
of boat, Closest Point of Approach and
time to CPA, course, speed, heading and
rate of turn. A daylight viewable colour
screen and straightforward interface with
built in coastline maps makes for simple
operation. Range rings enable the setting
of alarms to warn of impending danger.
Connected to the NMEA 2000 based
SimNet marine network, the Simrad AI50
becomes an integral part of any boat’s nav-
igation and communication capabilities.
For easy DSC message composition simply
connect a SimNet equipped DSC radio to
the AI50. Just move your cursor over the
target you wish to contact, press DSC and
the AI50 will initiate a Routine DSC call
using the MMSI of the selected boat.
Social aspect
Kongsberg wins MoD contract
Kongsberg Defense & Aerospace (KDA) has
signed a NOK 30 million contract with the
Norwegian Ministry of Defense for Underwater
Surveillance and Protection. KDA
will carry out a three-year project with
Kongsberg Maritime (KM) and Norwegian
Defense Research Establishment (FFI).
The first version of the integrated surveillance
and protection system has already
been installed at Haakonsvern, Norway’s
main naval base. Necessary adaptations,
improvements and extensions will be
implemented in the integrated system during
the project period.
The background for the project is the
Though vastly improved safety & security
are the primary reasons to own an AI50,
the system also caters for the fun and social
aspects of boating. A ’Buddy Tracking’ setting
enables you to enter the MMSI numbers
of friends and regular contacts, and be
alerted when they come into range.
general need for protection of Norwegian
installations.
Developed modular and flexible systems
solutions are based on Norwegian
technologies and can be used at fixed
installations, like Haakonsvern, or as
mobile systems.
Core technology has been developed
by KDA through the work related to the
underwater systems now in operation
onboard the new ”Fridtjof Nansen” class
frigates in Norway. The work will strengthen
Norway’s position in a growing market
within the harbour and coastal surveillance
and protection.
Gas detector contract
Håland Instrumentering confirmed an
order in excess of NOK 2,5 million for IR
gas detectors with Simtronics .The equipment
is earmarked for the Skarv Idun and
Petrojarl FPSO projects. Deliveries will take
place during Q4 2007 and through 2008.
The order confirms Simtronics’ position as
a leading supplier of gas detection equipment
used in harsh conditions
Dry bulk chat tool
AXSMarine, provider of online databases,
reference guides and tools enabling shipping
industry professionals to transform
raw data into useful, searchable information,
has announced the launch of AXS-
Messenger, which is an instant messaging
”chat” feature specially designed to meet
the business requirements of dry bulk
shipping industry professionals. Owners,
operators, charterers and brokers can cut
out unnecessary chatter in other messaging
systems, and focus instead on finding
and fixing vessels. AXSMessenger users are
linked to all other AXSDry subscribers.
With AXSMessenger, a broker could for
example use the feature to post a message
to an owner or another broker about rate
ideas his customer has for a certain vessel.
When the owner/broker in question carries
out a search on that vessel.
IMO rejects ECDIS
The IMO safety of navigation sub-committee
has rejected a mandatory carriage
requirement for ECDIS (electronic chart
display information systems) against the
good advise of experts. The proposal for
mandatory carriage was put forward by
Norway, Denmark, Sweden and Finland
arguing that electronic navigational charts
now are good enough.
EU approve acquisition
The European Commission (EC) has
approved French private equity firm Apax
Partners’ USD 400 million acquisition of
Telenor Satellite Services. In Apex portfolio
are names like Vizade (former France Telecom,
Mobile Satellite Communications).
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 75

finANCE & INSURANCE
Editor: Petter Arentz ~ Phone +47 33 40 12 00 ~ E-mail: petter@shipgaz.com
New vessel funding scheme
China is devising a scheme whereby shipbuilders
are allowed to mortgage ships
being built when raising finance. The
scheme would primarily apply to local
private shipbuilders, which has long been
under-funded. The private shipyards stand
for 47 per cent of the country’s shipbuilding
output. To allow the use of unfinished
vessels as collateral will cut financing cost
by round one per cent. Many of the private
shipyards build for export.
No EU intervention in P&I pact
The major P&I reinsurance contract for
ship owners seems to be saved from EU
intervention yet again, according to an
EU report. The International Group of
P&I Clubs, which has 13 members, has for
many years defended their system in Brussels.
In the latest enquiry found that the
system could be exempted from strict competition
rules, but not beyond Mars 2010.
The group provides a compensation system
of nearly USD 6 billion to cover huge
casualties, which one single club could not
manage on its own.
Stress and depression at sea
London P&I Cub views with concern the
large numbers of seafarers being repatriated,
suffering from a rage of psychological
difficulties and in its latest issue of Stop-
Loss Bulletin talks of the need for recognition
and understanding of the problem.
The international Human Element Forum
Alert says in a recent report that fatigue
is a more complex condition than many
believed and can affect the health and
effectiveness of all aboard ship. London
P&I Club says that afflicted crew members
could be a danger to others onboard, or
might even be a suicide risk.
Higher premium increases
Owners could risk premium increases as
much as 15–20 per cent on their P&I cover
at renewals in February 2008.
P&I clubs say that claims have soared
and there is a need to preserve a healthy
solvency rate in the clubs.
Owners
pay more
for funding
The cost of money has risen sharply and
owners must now be prepared to pay
between 15 and 30 basis points more, as
banks struggle to find participants in syndicated
shipping loans.
Hans Petter Aas, the head of shipping
offshore and logistics for DnB Nor, told
Lloyd’s List that the syndication market for
shipping loans has almost ground to a halt
and may not be fully functioning until the
beginning of next year. Aas continued:
“There are a few deals but not to the
extent that we are used to”.
Glen Maguire, chief economist with
Société Générale Asia Pacific, who says
that ship owners have to pay more for ship
financing requirements as liquidity dries
up, shares Aas’s sentiment.
KG funds struggling
In another development Deutsche Bank
director Felix Ulbricht admits that KG
(limited partnership) funds are struggling to
produce sufficiently high dividend. Private
investors want after-tax return of between
six and eight per cent. Such returns are
becoming difficult to achieve, especially
Lloyd’s has record profits
Lloyd’s reached profits of USD 3.6 billion
in the first half of 2007 against USD 2.7
billion in the same period last year, in a
market where underwriting conditions are
weakening. The combined ratio, where
anything below 100 per cent is profit, came
to 82.9 per cent.
Lloyd’s have had comparatively little
exposure to storms and floods in the UK or
indeed to Windstorm Kyrill, which caused
some EUR 5 billion worth of insured damage
in North Europe. But there is bound
to be damage during the US hurricane and
Asian typhoon seasons. According to Lord
Levene, Lloyd’s chairman, “the absence
of severe catastrophic activity in the past
Tanker fleet development
2005–2007 (in mill. DWT)
Tanker fleet >10,000 DWT
375
350
325
300
End 2005
End 2006
End June 2007
for investments in container vessels where
the growth in charter rates.
And the problems could get stickier with
the new super-postpanamax vessel. One of
these vessels costs USD 160 million. With
112 vessels on order, the banks and finance
houses need to find USD 17.9 billion with
an equity share of around 25 per cent.
In the wake of this development the KG
model with a greater degree of flexibility.
Ulbricht told a Hamburg ship finance seminar
that the KG funds needed institutional
as well as foreign investors, who today have
limited access to the funds.
18 months merely reinforces the need for
a continued focus on underwriting discipline,
as the benign environment puts
downward pressure on rates.
Allianz SE, Europe’s biggest insurer,
predicts that annual insured losses from
catastrophes as floods and hurricanes may
increase to USD 41 billion a year in 2010–
2019 against USD 30 billion per year in
the period 2000–2006 and less than USD
5 billion before 1989. Total losses, including
uninsured, may well be in the region
of USD 400 billion. Hurricane Katrina in
2004 caused more than USD 41 billion
worth of damage. Total losses were USD
170 billion.
76 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

Marinvest adds
tankers to quartet
SSG-GöteborG. In spring, 2004, Swedish tanker operator
Marinvest ordered four 75,000 DWT product tankers from
Brodosplit Shipyard in Croatia. Two vessels, the Maribel and
Marilee, have been delivered and number three, the Mari
Ugland, has been launched and named and delivery is expected
in Q1 next year. Two sister vessels have been added to the
series. These have not been ordered by Marinvest but they will
be taken over by the Göteborg-based company when delivered
in Q3 and Q4, 2008, respectively.
Knutsen’s LNG carriers fixed
SSG-tønSberG. The third and last LNG carrier ordered by
Knutsen OAS in Haugesund, Norway, at Daewoo has been
fixed to Spanish energy companies Repsol and Gas Natural
for 20 years to ship gas from Peru. The three vessels, each with
a capacity of 173 000 cubic metres, are scheduled for delivery
in 2010. In December, Knutsen will take delivery of another
LNG carrier from the Sestao yard in Bilbao. The vessel has
already been named Sestao Knutsen.
Knutsen OAS now has a fleet – including 9 orders – of more
than 40 vessels, of which 19 are crude oil tankers and 9 LNG
carriers. The remaining vessels are product/chemical tankers
Navirail plans new container line
SSG-tallinn. The earlier members of the board of Estonian
Railways, Edward Burkhardt and Riivo Sinijärv, and the Finnish
businessman Lasse Sandgren are the founders of the new
railway operator Navirail.
According to the newspaper Eesti Ekspress, the first stage in
the company’s business plan is to launch a container shipping
service between Helsinki and Muuga on 1 February.
The vessel to be deployed will be registered to the Finnish
flag and will be able to carry both containers and trailers. The
next stage in the plan is to establish a rail-based container line
between Muuga and Budapest, or another suitable key point
in Central Europe. The third step in the plan is to buy a ro/ro
vessel that can also carry containers.
Lars Carlsson new working chairman at SEAaT
SSG-GöteborG. The former MD of Concordia
Maritime, Lars Carlsson, has taken
over as working chairman of SEAaT (Shipping
Emissions Abatement and Trading).
SEAaT was formed in 2002 by BP, Shell,
Carnival, Teekay, P&O, Stena and the ship-
Lars Carlsson.
owners’ associations in Sweden and Norway.
The group’s aim is to encourage the development of solutions
for emissions reduction and emission trading.
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NEWS REVIEW
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SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 77

NEWS REVIEW
Cruising to Stockholm is popular.
Good cruise year in stockhoLM
In all, 255 cruise ships with 281 000
passengers called at Ports of Stockholm
during the 2007 cruise season. These
figures are only slightly lower compared
with the record year of 2006.
”The number of calls and passengers
has stabled in recent years, and the
levels are high. The cruise business is
doing well right now. We are the fourth
largest cruise destination in the Baltic
Sea,” says Josefin Haraldsson, project
manager at Stockholm Visitors Board,
in a comment to SSG.
new eMMa Mærsk estiMates
A. P. Møller-Mærsk’s E-class container
vessel seems even bigger than the
14,500 TEUs claimed by several sources
until now. AXS-Alphaliner, an international
container research company,
has done a new counting based on a
detailed drawing of the type.
Their conclusion on the capacity
landed on: 15,200 TEUs with a capacity
of 7,004 TEUs under the hatches and
8,208 TEUs on deck. This capacity is
still a theoretical number of boxes, but
the ships have the possibility to take
that many containers. The new figure
raises the World record by some 700
TEUs.
The E-class now consists of six vessels
(Emma, Estelle, Eleonora, Evelyn,
Ebba and Elly). Another two units is
under construction at Odense Steel
Shipyard.
Piracy attacks Goes uP aGain
According to the International Maritime
Bureau, robbery and piracy attacks
against vessels went up 14 per cent in
the first nine months of 2007, compared
to the same period last year. The
figures show that 198 attacks have been
reported worldwide so far this year.
CHRISTIAN LAGEREkE /PORTS Of STOCkHOLm
J. Lauritzen orders
seven more ships
SSG-rinGkøbinG. J. Lauritzen A/S has
been in the Far East to order more tonnage.
At the South Korean shipbuilder
Hyundai Heavy Industries, Lauritzen Bulker
has exercised an option for a further two
cape-size units in the new 180,000 DWT
segment for delivery in 2011.
After this pair, the renewal programme
consists of 35 ships of which 18 will be
owned. At the South Korean shipyard
STX, in Ulsan Lauritzen Kosan has purchased
three more of the ten sister ships on
order (The Isabella Kosan-type). After the
SSG-tallinn. On 12 October, the Estonian
Border Guard Aviation Group inaugurated
its new hangar facilities at Tallinn
Airport. At the same time, the newly purchased
helicopter, an Agusta Westland 139,
was presented. This is the first Estonian
purchase of a new helicopter, and the price
tag was EUR 9.5 million.
The helicopter is equipped with all necessary
equipment for Search and Rescue,
SAR, operations. Further training of the
crews will cut the time from alarm to takeoff
to 15 minutes also at night.
From the end of the year, Estonia will
have two helicopters for SAR operations,
purchase, Lauritzen Kosan will own seven
of the 10 units.
The remaining three will still be owned
by partners and sail with commercial management
provided by Lauritzen Kosan.
Finally, Lauritzen Tankers has ordered a
further two product carriers from Guangshou
Shipyard International for delivery in
2011.
The portfolio of MR tankers will then
consist of eight ships. In total, J. Lauritzen
has 56 owned ships on order and another
16, which partners will deliver to the fleet.
Estonia strengthens SAR operations
SSG-åbo. Rettig Group Ltd Bore has signed
an agreement to acquire of the Dutch drycargo
vessels Transitorius and Merwedelta,
built in 2000 and 2001 respectively.
The sister ships have a deadweitght of 4 951
tons and will be handed over to their new
owner in October-November.
They will sail under the Finnish flag
mADLI VITISmANN
Augusta Westland 139.
In September, next year, the Border Guard
will take delivery of a new Augusta Westland
139 helicopter to replace the slower
MI-8.
Møkster forMs underwater new exPertise Simon Møkster Shipping has joined
forces with underwater specialist Riise Underwater Engineering for new construction
projects around two diving vessels on order at the Westcon yard in Norway for delivery
in 2009. The price of the two vessels is NOK 700 million. The vessels are equipped with
large ROVs (remotely operated vehicle) designed and built by Kystdesign in Haugesund.
Bore acquiers two dry-cargo vessels
under their new names Fingard and Svegard.
The new vessels will be employed in
Bore’s business area Contracts of Affreightment
(CoA).
“This is a renewal of the fleet, which
means that we are going to sell some older
units”, says Exec. VP CoA Jhonny Husell
at Bore’s office in Mariehamn to SSG.
78 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

Newbuilding contracts in the Nordic market
MARKET REPORTS
Month Owner Nat Size Type Shipyard Delivery Value Remarks
July SeaDrill No drillship Samsung 6.10 USD 598 m
Aug Olympic Prawns No 73.8 m trawler Solstrand 3.10 NOK 270 m ST-118
Carras Hellas Group Grc 180,000 bulk Odense 09 USD 95 m
Carras Hellas Group Grc 180,000 bulk Odense 09
Carras Hellas Group Grc 180,000 bulk Odense 10
Carras Hellas Group Grc 180,000 bulk Odense 10
undiscl 94 m supply Aker Yards 4q10 NOK 850 m AH 12
undiscl 94 m supply Aker Yards 2q11 NOK 850 m AH 12
Iran Ir tender Båtservice 08 NOK 50 m 100 pax
Central Danube Region Aus 32 m catam Båtservice 09 NOK 25m 102 pax
Sept Boa Offshore No 95 m supply undiscl 10 VS491, 500 t winch
Boa Offshore No 95 m supply undiscl 11 VS491, 500 t winch
Boa Offshore No 95 m supply undiscl 11 VS491, 500 t winch
Boa Offshore No 95 m supply undiscl 11 VS491, 500 t winch
Boa Offshore No 95m supply undiscl 10 VS495 MPSV
Boa Offshore No 95m supply undiscl 11 VS495 MPSV
Boa Offshore No 95m supply undiscl 11 VS495 MPSV
Boa Offshore No 95m supply undiscl 11 VS495 MPSV
D/S Norden Den 50,500 tanker Guangzhou 11 USD 50 m
Ezra Holdings Sing 92m supply Karmsund 8.10 NOK 620 m VS490 ahts
Ezra Holdings Sing 92m supply Karmsund 12.10 NOK 620 m VS490 ahts
J Lauritzen Den 33,400 bulk Kanasashi HI 10 open-hatch
J Lauritzen Den 33,400 bulk Kanasashi HI 11 open-hatch
Arne Blystad No 25,000 tanker Samho 10 USD 42 m
Arne Blystad No 25,000 tanker Samho 10 USD 42 m
Arne Blystad No 25,000 tanker Samho 10 USD 42m
Arne Blystad No 25,000 tanker Samho 10 USD 42 m
Arne Blystad No 25,000 tanker Samho 10 USD 42 m
Arne Blystad No 25,000 tanker Samho 10 USD 42 m
Arne Blystad No 25,000 tanker Samho 11 USD 42 m
Arne Blystad No 25,000 tanker Samho 11 USD 42 m
Saaremaa Sh Est ferry Fiskerstrand BLRT 09 NOK 350 m 150 cars, 600 pax
Saaremaa Sh Est ferry Fiskerstrand BLRT 11 NOK 350 m 150 cars, 600 pax
Mosvold Supply No 91m supply Batamec 12.10 VS491, ahts
Mosvold Supply No 91m supply Batamec 7.11 VS491, ahts
Eitzen Chemical No 13,000 tanker Jinse SB 08 USD 24 m
Eitzen Chemical No 13,000 tanker Jinse SB 08 USD 24 m
Knutsen OAS No 160,000 tanker Daewoo 10 USD 116 m
Herning Shipping Den 8,000 tanker Nantong Mingde 09 USD 20m
Herning Shipping Den 8,000 tanker Nantong Mingde 09 USD 20m
Esvagt Den 930* rescue ASL Shipyard 09
Esvagt Den 930* rescue ASL Shipyard 09
Oct Trans Viking Sw/No supply Ast Zamacona 10 VS4622 ahts
Trans Viking Sw/No supply Ast Zamacona 10 VS4622 ahts
Carras Hellas Group Grc 180,000 bulk Odense 1.10 USD 110 m
Carras Hellas Group Grc 180,000 bulk Odense 2.10 USD 110 m
J Lauritzen Den 180,000 bulk Hyundai 11 USD 90 m
J Lauritzen Den 180,000 bulk Hyundai 11 USD 90 m
J Lauritzen Den 50,500 tanker Guangzhou 11 USD 50 m
J Lauritzen Den 50,500 tanker Guangzhou 11 USD 50 m
Oceanteam No 137 m offshore Metalships 11 NOK 465 m
Havila No 4,000 supply Fjellstrand 10.09 NOK 260 m
* = gross tons c = capacity in cubic metres
Read the latest news and search for facts and statistics on
www.shipgaz.com
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 79

MARKET REPORTS
Secondhand transactions in the Nordic market
Month Name DWT Built Type From Price Buyer Remarks/New name
July Lea 1,430 1970 dry cargo Red AB Lea, Kårö Comores
Rodsher 2,942 1977 bulk Riga Shipping, Riga Bergen Shipping, Bergen
Kegums 4,225 1989 dry cargo Riga Shipping, Riga Bergen Shipping, Bergen
Fjord Pearl 6,524 1979 bulk Stoneship Invest, Fredrikstad Jarle Printlow, Bergen
Tinto 1,550 1977 dry cargo Kent Nordgren, Örnsköldsvik Vargön Sh, Vänersborg
Aug Castle Peak 28,540 1997 bulk Pacific Basin, Hong Kong USD 62 m KS Danship 64, Cph
Lake Joy 28,250 1996 bulk Pacific Basin, Hong Kong en bloc KS Danship 64, Cph
Raven Spirit 5,000* 2007 seismic SeaBird Exploration, Oslo USD 17 m undisclosed
Bandar 81,659 1982 transloader T Klaveness, Oslo USD 120 m KS Arne Blystad, Oslo
Bakra 70,456 1993 transloader T Klaveness, Oslo en bloc KS Arne Blystad, Oslo
Balsfjord 70,120 1996 transloader T Klaveness, Oslo bb ETA KS Arne Blystad, Oslo
Beffen 19,700 2007 tanker Bryggen Tankers, Bergen USD 50 m Stealth Maritime, Greece
Atlantic Ambassador 33,425 1998 tanker Palmali Sh, Istanbul USD 89 m Global Skipsholding, Oslo
Indian Ambassador 28,840 1998 tanker Palmali Sh, Istanbul en bloc Global Skipsholding, Oslo
Pacific Ambassador 28,840 1998 tanker Palmali Sh, Istanbul bb back Global Skipsholding, Oslo
Chem Glover 32,000 1998 tanker S H Marine, Korea USD 25 m Global Skipsholding, Oslo
Tiger Bridge 30,400 1990 container CS&P, Copenhagen USD 24 m Euroseas, Greece
Berge Spirit 76,000c 1980 LPG BW Gas, Oslo USD 15 m Benelux, Greece
Weston 34,000 1982 bulk Sahil Intl, Dubai USD 12.75 m TKB Shipping, Cph
Franklin 43,700 1995 bulk Internaut, Bremen USD 45 m Britannia Bulk, Cph
Baffin 43,700 1995 bulk Internaut, Bremen USD 45 m Britannia Bulk, Cph
Ragnhild Knutsen 128,000 1987 sh tanker Knutsen OAS, Haugesund USD 40 m Transpetro, Brazil
Fehn Sun 4,148 1993 dry cargo Fehn Bereederung, Leer Misje Bulk, Bergen
Emily 2,735 1990 dry cargo W Eicke Bereederung, Heide Kopervik Sh, Kopervik
Balmung 2,800 1991 dry cargo Reederi Draxl, Hamburg C Rousing, Liseleje
Marc-Andre 3,200 1993 dry cargo Wieczorek Reederij,Ned Grip Skipsinvest, Krs N
Nordic Chantal 4,400 1994 dry cargo Grey Star BV, Netherlands Bergen Shipping, Bergen
Clipper Sun 22,000c 1978 LPG Solvang, Stavanger USD 7.5 m Benelux Sh, Greece
Symphony 3,300 1975 bulk Österströms Rederi, South Maritime, Assens
Dan Provider 1,200 1989 dry cargo Red Venus, Fredericia Latvia
Iwona 1,070 1971 dry cargo Jørgen Pripp, Svendborg Chile
Sept Trein Mærsk 21,229 1990 container A P Møller Maersk, Cph 3 yrs back Eastwind Maritime, NY
Tobias Mærsk 21,229 1990 container A P Møller Maersk, Cph « Eastwind Maritime, NY
Thorkild Mærsk 21,229 1990 container A P Møller Maersk, Cph « Eastwind Maritime, NY
Torben Mærsk 21,229 1990 container A P Møller Maersk, Cph « Eastwind Maritime, NY
Lyngen 5,206* 1982 passenger Hurtigruten Gr, Tromsø USD 8.6 m Lindblad Exloration, US
Longobardo 10,000 1992 tanker Mediterranea di Nav, Italy USD 13 m Triton Sh, Copenhagen
LS Anne 3,500 2004 tanker Crestar Sh, Gibraltar EUR 11.0 m Swetank Invest, Oslo
Lilleborg 2,800 1977 h-lift Nordana, Copenhagen Team Ship, Århus
Nyfjord 820 1965 bulk J Einarsen, Kopervik NOK 6.5 m Falkeid Sh, Stavanger
Thor Kis 4,140 1987 mpp KS Thor Eagle, Svendborg Lighthouse Sh, Flekkefjord
Sichem Maya 17,000 1988 tanker Eitzen Chemical, Oslo Eastwind Maritime, NY
Nord Sound 46,000 2003 tanker D/S Norden, Copenhagen USD 104 m König & Co, Hamburg
Nord Strait 46,000 2004 tanker D/S Norden, Copenhagen en bloc König & Co, Hamburg
Haci Hasan Yardim 41,000 1985 bulk Turkish USD 22 m Custodia Sh, Copenhagen
Bulford Dolphin 1977 semi-sub Fred Olsen & Co, Oslo USD 211 m undisclosed
Serra Theresa 1,500 2000 tanker Unifleet, Ned EUR 5 m Herning Sh, Herning
Karmsund resale 3,500 2008 supply Simon Møkster, Stavanger NOK 193 m Deep Sea Supply, Arendal
Jaya resale 2,500 2008 supply Jaya Offshore, Singapore NOK 205 m Deep Sea Supply, Arendal
Jaya resale 2,500 2009 supply Jaya Offshore, Singapore NOK 205 m Deep Sea Supply, Arendal
Tjore Fremgang 96,000 1992 obo J B Ugland KS, Oslo USD 40 m Trustoil Tankers, Greece
Berana 83,000 1985 tanker Global Skipsholding 1, Oslo USD 19 m Aegean Sh, Greece
Guangzhou resale 38,000 2007 tanker undisclosed Nordic Tankers, Cph
Jinse resale 32,000 2009 bulk Arne Blystad, Oslo USD 41.5 m undisclosed
Sarasota 96,828 1992 tanker Cardiff Marine, Greece USD 45 m BW Offshore, Oslo
Southampton Star 9,700 1999 reefer Orient Marine, Tokyo USD 30 m Star Reefers, London
Solent Star 9,700 2000 reefer Orient Marine, Tokyo USD 30 m Star Reefers, London
Aukra resale 3,200 2008 supply Nordkapital, Hamburg NOK 200 m Olympic Sh, Fosnavåg
Aukra resale 3,2002008 supply Nordkapital, Hamburg NOK 200 m Olympic Sh, Fosnavåg
* = gross tons c = capacity in cubic metres
80 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

Amazonia 28,475 1994 bulk Pacific Basin, Hong Kong USD 30 m KS Danship 68, Cph
Mount Cook 27,940 1996 bulk Pacific Basin, Hong Kong USD 32 m KS Danship 69, Cph
Bow Santos 19,977 2004 tanker Santoku Senpaku, Osaka Odfjell, Bergen
Hoburgen 4,700 1986 roro RAB Gotland, Visby RAB Lillgaard, Marieh
Daehan resale 170,000 2008 bulk Golden Ocean, Oslo USD 137 m DryShips, Greece
Mare Hibernum 12,500 1995 container Schlüssel Reederi, Bremen KS Green Valley, Hals
Transitorius 4,951 2000 dry cargo C Kornet & Zn, Werkendam Bore, Åbo
Merwedelta 4,951 2001 dry cargo C Kornet & Zn, Werkendam Bore, Åbo
Anne Sofie 2,675 1979 dry cargo S Flyvbjerg, Nørresundby EUR 1.3 m Bulgaria
Myrtun 1,750 1985 bulk Håkon Rong, Bergen Molo Sh, Ålesund
Superstar Gemini 19,093* 1992 cruise Star Cruises, Singapore Clipper, Copenhagen
Stena Conquest 47,000 2003 tanker Fulltankers, Italy USD 51.5 m Stena Bulk, Göteborg
Stena Conqueror 47,000 2003 tanker Fulltankers, Italy USD 51.5 m Stena Bulk, Göteborg
Stena Italica 47,000 2004 tanker Fulltankers, Italy USD 51.5 m Stena Bulk, Göteborg
Arianta 12,222 2004 tanker Pritchard-Gordon, London bb back Norwegian KS
Oct Johann 2,650 1993 dry cargo S Bojen, Stade EUR 4.4 m Wilson, Bergen
Neermoor 2,650 1993 dry cargo S Bojen, Stade en bloc Wilson, Bergen
STX resale 9,000 2009 LPG Benelux Intl, Greece J Lauritzen, Cph
STX resale 9,000 2009 LPG Benelux Intl, Greece J Lauritzen, Cph
STX resale 9,000 2009 LPG Benelux Intl, Greece J Lauritzen, Cph
Amasis 35,020 1997 container Islamar Sh, Cyprus USD 42.25 m Thor Dahl, Sandefjord
Eos I 35,020 1996 container Islamar Sh, Cyprus USD 42.25 m Thor Dahl, Sandefjord
Christina 4,452 1991 container Langh Ship, Piikio Red AB Tingö, Mariehamn
Finnforest 15,525* 1978 roro Strömma Turism, Stockholm EUR 7.5 m undisclosed
Front Duchess 284,000 1993 tanker SFI/Frontline, Oslo USD 56 m undisclosed
MARKET REPORTS
Secondhand transactions in the Nordic market
Month Name DWT Built Type From Price Buyer Remarks/New name
* = gross tons c = capacity in cubic metres
”Tor Baltica” delivered to new owners in
September 2007
BRAX SHIPPING
SHIPBROKERS & MARITIME CONSULTANTS
”Carmania Express” delivered to new owners in
October 2007
Tel: +46 31 18 32 00 brokers@braxship.com
Fax +46 31 18 32 60 www.braxship.com

MARKET REPORTS
Rates and fixtures week 42
Shortsea dry bulk market report
Baltic. The Baltic market continues to
soar as grain and steels in particular have
taken a lot of the available tonnage out of
the region over the past weeks. Charterers
have struggled hard to attract offers both
for scrap and grains from the Baltic states
to ARAG and French Bay with EUR 27–
28 obtained this week for 3,000 mt wheat
German Baltic/Irish Sea. Smaller ships are
also seeing brisk activity with movements
of general cargo and projects from Poland
and Denmark to Norway with going rates
in region of EUR 30,000 obtained for
Szczecin to Bergen area.
Activity level: Firm
Scandinavia. Charterers are struggling
harder to cover their orders both along
the coast of Norway and out of Sweden/
Denmark. Scrap cargoes in particular have
proven more or less impossible to fix without
accepting “silly rates”. 5,000 mt of
scrap from SC Sweden to S.Spain is paying
EUR 39–40 p/mt now compared to EUR
26 earlier this autumn while brokers have
been unable to find cover for 3,000 mt of
scrap from SC Norway to ARAG for over
two weeks now.
Activity level: Firm
UK/Continent. The market continues to
soar on the Continent with good output of
agri products, minerals and fertilizers from
ARAG and the UK Ships in all sizes are in
demand, but still there have been several
spot units quoted off ARAG and in French
Bay this week indicating that the market is
somewhat more complex. 4,000 mt wheat
from French Bay to Portugal is paying in
region of EUR 16–17 while going rate for
3,000 mt wheat from ECUK to Irish Sea
remains in region of GBP 13 p/mt. Bun-
earning estimates past 12 months
EUR/day ■ 1,000–1,500 DWT ■ 1,500–2,000 DWT ■ 2,000–3,000 DWT
■ 3,000–4,000 DWT ■ 6,000–7,000 DWT
6,000
5,000
4,000
3,000
2,000
1,000
45
50
kers prices have pushed through the USD
750 p/mt mark delivered in ARAG this
week adding further pressure on rates in
coming weeks.
Activity level: Firm
Mediterranean. Activity in Western Mediterranean
has been patchier this week as
Charterers have been trying to hold back
on rates after a few weeks with significant
gains. Grain orders from S.France in particular
have remained unfixed for days
while fertilizer brokers have struggled to
find owners willing to consider EUR 16–17
p/mt for 3,000 mt parcels from Tunisia to
Span Med. Eastern Med is still seeing very
tight tonnage supply with owners being
very bullish. 5,000 tonners have been
offered USD 35 p/mt for Black Sea to Italy
while Span have been paying close to USD
50 according to brokers.
Activity level: Firm
Fixtures
– 1,000 mt scrap SC Sweden/Bergen fixed
EUYR 23,000 lump sum.
– 1,600 mt aggregates WC Norway/Hamburg
fixed EUR 19.50 p/mt.
– 3,500 mt agri prod 2 port ARAG/Trondheim
fixed EUR 21 p/mt.
– 1,000 mt steel Klaipeda/2 port N.Norway
fixed EUR 55,000 lump sum.
norbroker shipping & trading as,
flekkefjord, norway
82 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007
1
5
10
earningS eStiMateS on t/C
BaSiS per day (Modern, Box)
Size Week 42 Week 41
1,250 DWT EUR 2,000 EUR 1,950
1,750 DWT EUR 2,150 EUR 2,100
2,500 DWT EUR 2,850 EUR 2,800
3,500 DWT EUR 4,100 EUR 3,900
6,500 DWT EUR 5,200 EUR 5,100
15
20
25
30
MarKet SnapShotS
35
Week
40
Week 42 Week 41
Brent USD 83.35 USD 80.02
MGO Rotterdam USD 716.00 USD 682.50
IFO180 Rotterdam USD 451.00 USD 413.50
25,000 shipping professionals read this ad.
What do you want to tell them?
Advertise in The Scandinavian Shipping Gazette!
(www.shipgaz.com for details and prices)

Wet – scrapping old aframax tonnage
November stems saw aframax freight
firm quite a bit into the second half
of October as a temporary shortage of
spot tonnage developed for relatively early
delivery. Good demand forced rates trough
WS 100 to reach WS 120 in both the North
Sea and the Baltic. Even so, freight is lower
than in the second half of September when
it reached this autumn’s peak of WS 150
for the North Sea and WS 130 for 100,000
tonnes out of Primorsk. Fundamentals have
not changed much in the past month characterised
by both too much tonnage and
too meagre demand. Therefore the aframax
has for all intent and purpose remained in
the doldrums since mid-year, despite the
one peak period. Analysts like to call it
freight volatility.
The one positive aspect of this development
is that owners might send single-skin
vessels to the breakers. Scrap prices ought
to tempting at around USD 500 per lightweight
ton. At least it should be more
tempting than continued trading at dismal
freight levels. In our June report we noted,
When front haul rates for capesize tonnage
move close to USD 230,000 per
day, as it did from Continent to the Far
East towards the middle of October, we
can safely say we have a good dry bulk
market. Mind you, the capesize market
has since consolidated and fallen back a
little. One wonders if a peak was reached
by mid-October and that this is a far as the
market will go. Confidence, for what it is
worth at this stage, remains solid. Another
measure of the confidence in the cape market
was that Chinese charterers paid USD
155,000 per day for a 174,000 tonner for 12
months. Even though the Far Eastern market
remained firm, while the Atlantic fell a
little, the transatlantic round voyage still
stood at USD 177,000 per day.
While the capesize tonnage in the Atlantic
consolidated, the Atlantic panamax continued
ever upwards to new heights. Such is
the market that an increase of USD 4,500
per day to close to USD 85,000 per day on
the transatlantic round voyage made a leading
broker say that the pace of the increase
“aframax freight nearly halved”. Freight has
not really recovered since then. Demand
for suezmax tonnage also picked up during
the period covered, but made little or no
impact on the freight level.
MR (Medium Range) freight for transatlantic
business westbound has firmed lately
in panamax freight had slowed down. The
equivalent Far East round voyage was close
to USD 92,000 per day and as much as
USD 95,000 per day was also paid for an
Australian round voyage.
In the handy/handymax market the rate
from the US Gulf to the Continent, which
MARKET REPORTS
and was just going through WS 200 for the
first time since the middle of August. MR
freight has, in fact firmed steadily since the
beginning of October. The last time the rate
went to WS 200 it fell back quit sharply to
WS 155 and remained between WS 155
and WS 170 for a good many weeks.
Wet bulk freight development
Worldscale ■ Suezmax North Sea–TA ■ Aframax NS– UKCont
■ Aframax Primorsk–UKCont ■ Clean MR UKCont–TA ■ Clean Baltic–UKCont
Dry – dry bulk at dizzy heights
400
300
200
100
0
180,000
150,000
120,000
90,000
60,000
30,000
0
Jan ’06
Apr ’06
has been firm for some considerable time,
was coming ever closer to USD 100,000 per
day. Short period fixtures were concluded
at USD 77,000 per day for handymax tonnage,
while the transatlantic round voyage
was closing on USD 72,000 per day.
petter arentz
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007 83
Jul ’06
Oct ’06
Jan ’07
Apr ’07
Jul ’07
Oct ’07
Source: SSG, October 18, 2007
Dry bulk freight development
Atlantic round voyage,USD/day ■ Capesize ■ Panamax ■ Handymax
Jan ’06
Apr ’06
Jul ’06
Oct ’06
Jan ’07
Apr '07
Jul ’07
Oct ’07
Source: Fearnleys/SSG, October 18, 2007

MARKET REPORTS
Offshore market report October
offshore rate development
GBP 1,000 pSV: ■ 600/700 ahtS: ■ 15,000–16,000 ■ 20,000+
140
120
100
80
60
40
20
0
45
50
1
10
Autumn has continued to see a generous
market for offshore supply and
support vessels, in the North Sea and in all
other regions. A strong underlying market
with steady oil exploration and extensive
construction projects is still giving cause
for optimism, although most expect the
great backlog of supply ships under construction
to affect the market sooner or
later. But still orders are forthcoming, and
lofty prices are being paid for resale contracts
and second-hand vessels.
From an unexpectedly weak July, the rate
level for large anchor-handlers remained
at GBP 30,000 well into August, before
5
15
20
25
30
picking up, week by week, to the level of
100,000 by early September. Except for a
brief lapse, the market remained buoyant
throughout September and into October.
No doubt spells of rough weather helped
to keep up the rates, as ships were being
tied down longer than usual.
Also platform vessels have been in brisk
demand, with some of the best rates seen
for years at about GBP 40,000 for larger
units. For weeks we have seen a steady
level around 25,000–30,000, with a sort of
“floor” at 20,000. So far, autumn has compensated
for a disappointing summer.
The number of long-term fixtures and
Some teRm chaRteRS aNd exteNSioNS iN the NoRth Sea:
charterer Vessel type operation
RWE Olympic Provider psv extended 1 yr until Sept 08
Senergy Olympic Promoter psv 2+1 well Stena Spey, beg Sept 07
Peterson Island Endeavour psv 5 years from mid-Sept
Peterson Northern Queen psv ext 1 year firm until Oct 08
Peterson Troms Fjord psv 5 yrs from Jan 08
ConocoPhillips Northern Crusader ahts ext 2 yrs until Nov 2009
Canyon Olympic Triton mpsv support duties, 3 yrs, Oct 07
Maersk Oil UK Northern Clipper psv supply duties, extended to Nov 08
StatoilHydro Havila Foresight psv support duties, 2 yrs, Dec 07
Acergy Normand Mermaid mpsv construction support, ext to Aug 08
Some teRm FixtUReS iN otheR paRtS oF the woRld
also the backlog of outstanding orders
convey a heartening view of the future.
And this view of the world is still sufficient
to keep up the interest in new projects.
New investment
Contracting of new offshore vessels has
slowed considerably from the all-time
peak last year, but there is still plenty of
activity. September and October have
so far seen 23 new contracts at a total of
Text
NOK 9.1 billion (USD 1.65 billion) in
the Scandinavian market; this time including
Danish, Swedish as well as Norwegian
owners.
Of the orders, most noteworthy are ten
large anchor-handlers of the most powerful
type, intended for deepwater work,
each being an investment in the region of
USD 90 million.
Boa Offshore, alias Taubåtkompaniet of
Trondheim, has announced an order for
eight vessels at a total of NOK 3.2 billion
at an as far unspecified yard: Four VS491
anchor-handlers and four VS495 type
multi-functional supply vessels.
The ship design firm Vik-Sandvik, based
at Fitjar on the island of Stord midway
between Bergen and Haugesund, should
be pleased with supplying design for 17 of
the 23 ordered vessels.
Resale deals
The tight market in combination with
long delivery time for new ships have contributed
to a very strong secondhand market.
The following five resale deals have all
left the sellers with a substantial profit on
investment.
Deep Sea Supply of Arendal acquired a
VS485 PSV building at Karmsund Maritime
from Simon Møkster Shipping for
NOK 193 million and also two 12,000
BHP anchor-handlers with Jaya Shipbuilding,
Singapore, for NOK 205 million each.
Deliveries are set for 2008. Also Olympic
Shipping, Fosnavåg, has acquired two
UT755LN platform vessels from Nordkapital
Holding ordered from Aker Yards.
These are the two first of eight orders, originally
booked in April 2006 at NOK 145
million each, now being resold at NOK
200 million.
dag bakka jr
84 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007
35
Week
charterer Vessel type operation
Petronas Carigali Normand Trym ahts 7 months gen duties, Malaysia
Cairn Energy Pacific Brigand ahts 4+4 wells from Sept, India
Galoc Normand Jarl ahts 100–150 days supp Energy Searcher, Philippines
Hess Far Sound ahts supp SS Jack Bates 240 days, Australia
Petrocanada Sea Wolf ahts support duties 7 months, Trinidad
Based on information from R G Hagland Offshore, www.hagland.com
40

BUNKERS AND CRUDE OIL TREND
Week Rotterdam Bunkers Crude Oil
380 cSt, USD/t MDO, USD/t Brent, spot IPE, USD/brl
36 363 569 75.06
37 373 620 77.63
38 384 636 79.20
39 388 634 81.04
40 389 622 78.94
41 401 617 80.00
42 430 657 85.00
Quotations Friday each week. Source: Stockholm Chartering, www.stochart.com
CRUDE TANKER MARKETS
Size Route Week Worldscale Earnings
(USD/day)
VLCC Persian Gulf–UKC C/S 36 42.5 13,900
280,000 37 42.5 12,600
38 45.5 19,900
39 47.5 19,900
40 42.5 13,300
41 42.5 12,400
42 50.0 20,800
Suezmax Cross Med 36 67.5 9,300
130,000 37 72.5 11,900
38 90.0 22,100
39 85.0 18,800
40 85.0 18,700
41 80.0 14,900
42 140.0 50,500
Aframax North Sea–UKC 36 90.0 10,000
80,000 37 85.0 7,000
38 150.0 39,600
39 125.0 26,700
40 90.0 8,900
41 112.5 19,800
42 170.0 47,800
Quotations Friday each week. Source: Stockholm Chartering, www.stochart.com
Maersk fixes the first jack-up rig
for Dubai-work
ssg-ringkøbing. Maersk Contractors
has fixed the first of four new jack-up rigs,
which currently are under construction at
Keppel FELS at Singapore. The first rig has
been fixed for a 3-year drilling programme
to Dubai Petroleum Establishment for work
in the Arabian Gulf. The rig will start work
immediately after delivery from the yard in
the first quarter of 2008. It will take 15 days
to mobilize the rig after transfer from Singapore.
Earlier this year, Maersk Contractor
fixed one of the semi-submersible rigs also
under construction for a job on the Australian
shelf.
Britannia to charge extra 15%
in advance call rate
ssg-tønsberg. Britannia P&I Club’s
announcement that it will charge an extra
15 per cent in advance call rates has confirmed
ship owners’ worst fears that there
are heavy P&I premium increases ahead
from February, 2008. Generally, the market
had expected between 10 and 20 per cent
as claims cost soar. This has been the case
ShARE PRICE INDEx
MARKET REPORTS
Index 19/10 12/10
Broström Logistics* 107.53 107.75
OSE2030GI** 442.08 442.34
*Broström Logistics is a share price index that includes seven
Swedish as well as non-Swedish transportation and logistics
companies, publicly listed on European Stock Exchanges. For
further information, visit www.brostrom.se.
**OSE2030GI includes the shipping companies listed on the
Oslo Stock Exchange.
DRy CARgO MARKETS, LARgE CARRIERS
Size Route Week USD/ton
Single voyages
Capesize Tubarao–Rotterdam 36 34.50
165,000 Iron Ore 37 35.80
38 35.70
39 42.25
40 44.00
41 45.00
42 46.65
Tripcharter Av. Earnings
(USD/day)
Panamax Cont–Far East 36 73,000
70,000 37 73,000
38 71,000
39 78,000
40 79,000
41 84,000
42 88,500
Handymax Transatlantic, round voyage 36 59,000
37 60,500
38 57,500
39 56,500
40 59,000
41 64,900
42 71,500
Source: Fearnleys, www.fearnleys.no
for Britannia and deferred call rates will
increase by 10 to 40 per cent.
Nordtank Shipping to be
Broström Tankers Denmark
ssg-göteborg. Broström changes the
name of its Danish subsidiary Nordtank
Shipping to Broström Tankers Denmark.
Broström acquired the Danish tanker shipbroker
in 2005. The company commercially
operates 17 tankers between 4,000
and 23,000 DWT, owned by a number of
shipowners.
SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 24, 2007 85

The precursors
of the modern bulk carrier
H
aving a deadweight in
excess of 20,000 tons, the
cargo vessels Amerikaland
and Svealand were the largest
cargo vessels afloat when they were
in 1925 handed over to the Swedish ship
owner Ångfartygs Aktiebolaget Tirfing.
The design featured many new innovations,
and in combination with their
enormous size the vessels were in many
respects forerunners, paving the way for
the pure bulk carrier.
On January 23, 1914, just six months
before the outbreak of World War I, the
Swedish ship owner Dan Broström signed
a contract with the US steel manufacturer
Bethlehem Steel Company on building
two 17,000 DWT steamers. They were to be
employed for 20 years on the iron ore trade
from Cruz Grande, Chile, to the company’s
steel works on the US East coast via the
Panama Canal, which was opened in 1914.
But the war interrupted this interesting
project. It was not until September 1922
that a new contract was signed. Now
the size of the two vessels had grown to
20,600 DWT, and they were due for delivery
in 1925.
Due to the “advantageous rate of
exchange for Swedish currency and the low
quotations received from the German shipyards”
the vessels were ordered from Deutsche
Werft AG in Germany rather than
from Sweden. The possibility to build the
vessels at Götaverken had been thoroughly
investigated. In addition to a higher price
this would also have demanded an extension
of the shipyard, as the newbuildings
were twice as large as the vessels built so far.
The Svealand was handed over to the
Tirfing Steamship Company on April 9,
1925, and the sister Amerikaland on June
29. The 171 m long and 22 m wide vessels
were exceptional in many aspects, not
least their size. They were the largest cargo
vessels built so far and among the first to
be equipped with steel hatch covers. The
hatchways were large to enable rapid cargo
handling. Two Burmeister & Wain-type
diesel engines manufactured in Germany
gave them a service speed of 11 knots fully
loaded with a fuel consumption of 19.5
tons a day. They were no doubt also exceptionally
efficient. A voyage from Chile to
Baltimore could be made in 19 days and
the vessels could be discharged in 16 to 18
hours.
For the Amerikaland World War II
HÅKAN SJÖSTRÖM
ended the fulfilment of the 20-year charter.
During a ballast voyage from Sparrows
Point to Cruz Crande she was sunk by
the German u-boat U 106 on February
2, 1942. Five seamen lost their lives after
spending several days in lifeboats on the
cold and stormy sea.
For the Svealand the charter to Bethlehem
Steel continued until the end of
1948. In 1951 she underwent an extensive
refit at Götaverken in Göteborg, including
installation of new main engines.
The Svealand continued sailing for Broströms
until 1968, when the 43-year-old
vessel was sold to a company in Liberia.
The deal was never closed and instead the
German company Eckhardt & Co bought
her in 1969 for scrap. In the same year
she was sold further to a Panama-registered
company and left Hamburg under
her own power renamed Svea. After that
her fate is unknown, even though it was
reported that she would be broken up.
In a fleet list in the Båtologen magazine
Tomas Johannesson writes that it is not
impossible that she continued sailing in
the Chinese waters or was used as a floating
storage for some further years.
pär-henrik sjöström
86 SCANDINAVIAN SHIPPING GAZETTE • OCTOBER 26, 2007

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