btj 35.indd - Baltic Transport Journal

Baltic Transport 1733-6732 

Journal ISSN 

№ 3/2010 (35), MAY/JUNE 

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Motorways of the Sea revision 

Report 

China-EU trade outlook 

Oil transport perspectives

EWTC Newsletter ................................................................................................... 5 

Green light for East-West transport 

BTJ calendar of partnership events ............................................................................................ 6 

What’s new .........� 8 

Just one question .......................................................................................................................... 12 

Transporting oil – a growing opportunity ........................................................................... 14 

Perspectives for the Baltic region 

Reporting, learning, being flexible ......................................................................................... 17 

Safety in BSR 

To implement or not to implement ........................................................................................ 18 

Ship source marine pollution law in BSR 

Report: China-EU trade outlook ........................................................................ 21 

The future of bilateral relations 

How to do business with China 

TransBaltic Newsletter ....................................................................................... 26 

Baltic Ports Organization Newsletter ............................................................... 30 

Two openings, three dimensions ............................................................................................ 32 

DNV starts up 3D virtual training center 

Focus: Shortsea Shipping on the Baltic ............................................................ 33 

More than hype? 

Two options for Finland .............................................................................................................. 36 

Debate on new IMO regulations continues 

System planning: a new view ................................................................................................... 38 

IT solutions in ports 

How to speed up freight traffic between Russia and Finland ....................................... 40 

New study by VTT 

Recovery in Russia approaching? ............................................................................................ 42 

Oversized goods and inland water transport 

Learn logistics .� 44 

Educational undertakings of K+N 

Transport miscellany .................................................................................................................... 45 

Who’s who ........� 46 

Contents 

3/2010 | Baltic Transport Journal | 3

Editorial 

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Baltic Transport 

Journal 

President of the Board 

BOGDAN OŁDAKOWSKI 

office@baltictransportjournal.com 

Publishing Director 

PIOTR TRUSIEWICZ 

piotr@baltictransportjournal.com 

Editorial Team 

MARTYNA BILDZIUKIEWICZ 

martyna@baltictransportjournal.com 

ALISON NISSEN 

alison@baltictransportjournal.com 



Contributing writers and 

update correspondents: 

KRZYSZTOF SZYMICHOWSKI, PROSHANTO MUKHERJEE, 

ABHINAYAN BASU BAL, KATARZYNA KUREK, YAN WEI, 

WILLY DE DECKER, MAREK BŁUŚ, JOHN LUND, 

ANTTI PERMALA, MARISA LUTTER, PIOTR STAREŃCZAK, 

ULLA TAPANINEN, JUHA KALLI, TAPIO KARVONEN, 

AGNIESZKA PAWŁOWSKA 

English Language Editors 

ALISON NISSEN 

Design and DTP 

MEDON 

Art Director&Graphic Designer 

DANUTA SAWICKA 

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4 | Baltic Transport Journal | 3/2010 

Dear Readers, 

All those who were advertising Expo 2010 in Shanghai as the biggest in history 

– taking into account nearly all possible aspects – were right. The biggest exhibition area in 

one of the biggest (demographically as well as in terms of economic potential) countries makes 

a huge impression. Under such circumstances, it would be impossible not to mention China in this issue 

of BTJ, especially when we think of the country’s ties with the Baltic Sea region and the interest the Asian 

power evokes in our area. For all those who are interested in doing business in China I recommend the 

article by Yan Wei, full of practical hints what (not) to do while working with the Chinese. Also, don’t 

miss the analysis prepared by Cosco R&D, which gives us a full picture of China-EU trade relations. 

We also take you to another part of the globe – to Russia, whose economic recovery, as Marisa Lutter 

claims, may already be underway thanks to the developing branch of oversized goods transportation 

as well as inland waterway transport. As we are in Russia, we also take a thorough look at the oil 

business there and investments involved – I cordially recommend the expert article written by Krzysztof 

Szymichowski. 

The Baltic TLF industry is still in a hot discussion over new IMO regulations, regarding sulphur 

content in marine fuels. We’ve been writing about this issue since January and don’t omit the difficult 

topic now. Ulla Tapaninen, with her colleagues from the Centre for Maritime Studies in Turku, gives 

us an in-depth analysis of the consequences Finland needs to take into account when implementing the 

regulations. Speaking of the latter – it’s worth seeing how many rules and regulations the Baltic Sea 

needs to obey, especially when it comes to marine pollution; you can see a detailed list with experts’ 

comments in the article by Proshanto K. Mukherjee and Abhinayan Basu Bal. 

As always, we are open to your comments, views and ideas. The more we discuss various issues 

around BSR, the better for our region. 

Martyna Bildziukiewicz 

Editor 

Company index 

Ackermans & van Haaren 45; Aeroflot Russian Airlines 13; Ahlers Group 34; airBaltic 12, 13; Airbus 13, 44; AKG Logistics 

42, 43; Alpcot Agro 10; Alpcot Capital Management 10; Alstom 45; AnsaldoBreda 11; Älvsborg Ro/Ro Terminal 20; 

Åland Posten 45; Baltic Oil Terminals 10; Baltic Ports Organization (BPO) 30; Banverket 20; Birka Line 45; Blue1 12; 

Citroën 11; Civil Aviation Administration (Denmark) 13; Confederation of Finnish Industries 36; Copenhagen Airports 

13; COSCO R&D 23; Credit Suisse 13; Damco 10; Danish Ports 46; DASH7 Alliance 10; DB Schenker 10; DEME Group 45; 

Det Norske Veritas Poland 32; DFDS 28; DFDS Lisco 26, 28; DNV Academy 32; DSB 11; European Bank of Research and 

Development (EBRD) 12; European Commission 26, 27, 28, 29, 30, 33, 34; European Shortsea Network 33; Fast Lines 

34; Femern Bælt A/S 46; FESCO Transportation Group 10; Finnair Oy 12, 13; Finnish Customs 39, 40; Finnish Ministry 

of Transport and Communications 37, 40; Finnish Oil and Gas Federation 36; Finnish Transport Agency 31; Finnsteve 

39; Flensburg University of Applied Sciences 46; Forkor Shipyard 45; Frankfurt Airport 13; Germanwings 12; Gothenburg 

Car Terminal 20; Gothenburg Municipality 20; Green Cargo 11; Group H. Essers 34; Grupa LOTOS 16; Gunvor 

8; Hansgrohe 9; HELCOM 17, 18; Helsinki Airport 13; International Air Transport Association (IATA) 17; International 

Civil Aviation Organization (ICAO) 13, 17; International Energy Agency 15; International Maritime Organization (IMO) 

18, 19, 36, 37; International Monetary Fund (IMF) 23; Italscania 46; Katoen Natie 34; Kaunas International Airport 13; 

Kemi Bulk Terminal 31; KGHM Metraco 8; Kuehne Foundation 44; Kuehne + Nagel 10, 44; Kühne Logistics University 

44; Latvian Airlines 12; Latvian Railways (LDz) 11; Lever GmbH 46; LicTech 41; Lufthansa 13; Lufthansa Systems AG 46; 

Lufthansa Systems Infratec GmbH 46; Lufthansa Systems Network GmbH 46; Lufthansa Technik 44; Maersk 8, 10; Magemar 

Poland 45; MegaFon 13; Marine Environment Protection Committee (MEPC) 36; Mitsubishi 11; Mitsui & Co. 10; 

Multi-Link Terminals 39; Mussalo Harbour 41; Naftoport 14; National Aeronautics and Space Administration (NASA) 17; 

Noord Natie 34; Nordic Ferry Services 9; OOO Revival Express 10; Organization of the Petroleum Exporting Countries 

(OPEC) 14, 15; ORLEN Lietuva 14; Peugeot 11; PKN ORLEN 16; Polish Airways LOT 12; Port of Baltiysk 10; Port of Butinge 

14; Port of Esbjerg 5; Port of Fredericia 5; Port of Gdynia 45; Port of Gothenburg 20, 31; Port of Helsinki 39, 41; Port of 

Il’yitchovsk 5; Port of Kaliningrad 5; Port of Karlshamn 5, 28, 29; Port of Karlskrona 5, 26; Port of Kemi 30; Port of Kiel 8; 

Port of Klaipėda 5, 8, 15, 26, 28, 29; Port of Lübeck 31; Port of Odessa 5, 16; Port of Primorsk 14, 15; Port of Riga 8; Port 

of Sassnitz 26; Port of Tallinn 8, 15, 30; Port of Trelleborg 26; Port of Ust-Luga 8, 14; Port of Ventspils 8, 14, 15; Pulkovo 

Airport 12; RAF 17; Railport Scandinavia 20; Rhenus Group 10; Riga International Airport 12; Russian Customs 10, 41; 

RzD Russian Railways 11; Scandinavian Tank Storage 20; Scandlines Group 8, 26; Scania 46; Scania Schweiz AG 46; Sea- 

Invest 34; Sheremetyevo International Airport 13; Shortsea Promotion Centre Flanders 33, 34; Siemens AG 46, Silja Line 

45; Skandia Container Terminal 20; Skytrax 13; Statens Järnvägar 45; Stena Line 9, 26; Steveco 39; Sund & Bælt Holding 

A/S 46; Szczecin Seaport 8, 45; Tabaknatie 34; Tallinn Airport 12; Tor Harbour 20; TransBaltic 5, 26, 28, 30; TransLumi Line 

31; Transneft 14; Trinity House 45; United Nations (UN) 37; Visy Oy 39; Vnesheconombank 12; VTT Technical Research 

Centre of Finland 40; Vuosaari Harbour 39, 41; Wallenius Wilhelmsen Logistics 8; Wizz Air 13; World Bank 14..

East West Transport Corridor II 

EWTC newsletter 

Green light for East-West transport 

As the first EWTC project turned out to be a success, a new edition 

was started in September 2009. The follow-up initiative of EWTC II 

aims at highlighting the development of a Green Corridor Concept 

as a best practise case in the European TEN-T context. 

Being an integrated part of the 

Northern Transport Axis and 

running from Vilnius in Lithuania 

via South-East Sweden to 

Esbjerg in Denmark, the East- 

West Transport Corridor serves 

cross-border and transit transport across the 

region, taking cargo further to Russia, the Far 

East and to the Black Sea areas. The EWTC 

can become an important player in the market 

for Russian freight export and imports via the 

II and IX Pan-European Corridors linked to 

the Ports of Kaliningrad and Klaipėda. It also 

hopes that development of the Trans-Siberian 

Railway line shall allow it in the long run to 

become an alternative to sea transport of all 

goods from the Far East to Europe. While the 

sea route from China to Europe is approximately 

20,000 km, the Trans-Siberian line to 

the southern Baltic Sea is only about 11,000 km. 

When compared to shipping, the train route is 

shorter and faster, and offers more flexibility in 

timing and volume as regards the transported 

goods. With increased capacity in the transport 

routes between Lithuania and Sweden, 

Klaipėda and Blekinge (Karlshamn/Karlskrona) 

can be developed into important gateways 

for trade between Scandinavia and the Black 

Sea, and beyond. The goods can be carried on 

further to Ukraine, Belarus and the Caucasus, 

via the Il’yitchovsk and Odessa ports. The railcars 

with containers can even be delivered to 

Georgia, Armenia and Turkey. Hence, a part of 

the project is dedicated to developing the ports, 

including the most western Port of Esbjerg and 

Fredericia (both in Denmark), Swedish Helsingborg, 

Karlshamn and Karlskrona, Lithuanian 

Klaipėda and Russian Kaliningrad. 

Creating a common vision 

The first edition of the project was held in 

years 2006-2007 as a cooperative venture between 

42 partners and aimed to strengthen 

transport development by infrastructure improvements, 

new business solutions, logistics 

and co-operation between researchers. Partners 

in the EWTC project, with Region Blekinge being 

the lead one, included local, regional and 

national authorities, universities, harbours and 

private stakeholders from Denmark, Lithuania, 

Russia and Sweden. Co-financed by the project 

partners as well as the Baltic Sea Region Programme 

2007-2013, EWTC was the first step 

on the way toward a more sustainable transport 

system in the region. Aside from a new strategy 

and a concrete Action Plan for further improvements 

of the corridor, the project resulted 

in the partners starting a common vision for 

the year 2030, where EWTC stands out as an 

efficient and green corridor on the map of the 

Trans-European Network, meeting market demands 

for growing freight to/from Scandinavia 

and Lithuania with close co-operation between 

interlinked hubs and more environmentallyfriendly 

transport solutions. 

Keeping up the momentum 

With EWTC II, the co-operation was renewed 

in March 2009, when the partnership 

applied for EU grants of EUR 7.5 mln from the 

Interreg IV Baltic Sea region programme, with 

Region Blekinge again taking the role as lead 

partner. This time, it has been joined by around 

70 partners from Sweden, Denmark, Lithuania, 

Germany, Russia, Belarus, Italy and China, including 

several partners from the private sector, 

and is supported by both the Swedish and 

Lithuanian governments. The project serves as 

a testing ground not only for the green corridor 

concept, but also for innovations, new technology, 

business models and improved management 

systems that may advance the present 

sustainable transport solutions. Linking Minsk, 

Vilnius, Klaipėda/Kaliningrad with Denmark 

via southern Sweden and with Germany via 

Sassnitz, the project will facilitate development 

of hubs as growth centres. For better results in 

developing the green corridor criteria, EWTC 

II will cooperate with the ongoing TransBaltic 

and SCANDRIA projects. 

Stimulating sustainable growth 

The main goal of the EWTC II is to secure 

sustainability for transport solutions within 

the corridor by means of creating a network 

of stakeholders and making use of the already 

existing Corridor Organisation and Structure. 

EWTC II is supposed to act as a reference 

manual concerning green corridors that will 

propose more eco-friendly alternatives and explain 

basic steps required to develop a green 

corridor concept in line with the EU transport 

policies. The manual will also describe options 

for the certification of green transport systems. 

As a way to reduce costs and environmental 

impact, the project will also suggest 

an innovative IT-based information broker 

system, in correspondence with the EU’s ambitions 

for e-freight. New business concepts 

for railway transport, improved infrastructure 

and transport service in ports and terminals 

are among the expected outcomes as well. � 

For more information on this project, 

please visit www.ewtc2.eu. 

Agnieszka Pawłowska 


BTJ calendar of partnership events 2010 

BTJ 3/2010 (May-June edition) 

Issue distributed at: 

12 th Baltic Development Forum 

Summit 2010 

1-2 June 2010, LT/Vilnius 

www.bdforum.org 

European Supply Chain 

and Logistics Summit 2010 

7-9 June 2010, CZ/Prague 

www.scleurope.com 

Posidonia 2010 Expo 

7-11 June 2010, GR/Athens 

www.posidonia-events.com 

TOC Europe 2010 Expo & Conf. 

8-10 June 2010, ES/Valencia 

www.tocevents-europe.com 

SoNorA V Consortium Meeting 

16-17 June 2010, Erfurt/DE 

www.sonoraproject.eu 

Trans-Port & Energy Seminar 2010 

17 June 2010, PL/Gdańsk 

www.actiaconferences.com 

SuperGreen Workshop 

28 June 2010, FI/Helsinki 

www.supergreenproject.eu 

Weighing Containers 

29 June 2010, UK/ London 

www.dunelmpr.co.uk 

European Shortsea Congress 

29-30 June 2010, IE/Dublin 

www.shortseacongress.com 

BTJ 4/2010 (July-Aug edition) 


Annual Baltic Ports 

Conference 2010 

9-10 September, EE/Tallinn 

www.bpoports.com 

Coastlink’s Annual Conference 

2010 

14-15 September 2010, BE/Antwerp 

www.coastlink.co.uk 

InnoTrans 2010 

21-24 September, DE/Berlin 

www.innotrans.com 

Airports Conference 2010 

29-30 September 2010, PL/Warsaw 



Special Report on: Chinese cargo flows 

Focus on: Short sea shipping on the Baltic 

The 12 th Baltic Development Forum Summit 2010 will be held in Vilnius under the title European 

Challenges – Regional Solutions, An Agenda for Jobs, Investments and Sustainable Growth. The 

Summit is held in association with the government of Lithuania and the Baltic Sea States Summit. 

Many high level speakers are expected. Decision-makers representing business, politics, academia 

and media in the Baltic Sea Region are invited to attend. 

The European Supply Chain and Logistics Summit (SCL Europe 2010) will reveal how you can adapt 

your supply chain to meet the requirements of the economic rebound and drive renewed growth. 

Topics include: transforming your supply chain infrastructure to maximise customer service and drive 

down costs, minimising volatility with a demand-driven supply chain, and driving social values to 

deliver business value. 

Posidonia International Exhibition first took place in 1969 and has been organized every two years 

ever since. Last year’s Posidonia had over 1,700 exhibiting companies and was attended by more 

than 17,000 visitors from 86 countries. A must-see event for everyone involved in any branch of 

activity related to shipping. 

This year’s conference, held in Valencia under the theme “New Decade, New World”, will focus on 

understanding the pattern of recovery, the new economic, financial and regulatory climate, and 

how these and other significant factors will impact the business of container shipping, ports and 

terminals in the post-crisis world. 

Partners of the SoNorA project led by Veneto Region (IT) meet again for the 5 th time to present their 

latest progress and achievements and to discuss the next steps of the parntership aiming to help 

regions develop South-North accessibility between the Adriatic and Baltic Seas. 

During the period of economic slowdown, which we are all experiencing these days, the Gdańsk 

seminar aims at determining viable forecasts for future energy resources supply, predicted levels of 

demand as well as the potential infrastructural needs within the scope of transport, port infrastructure, 

storage and handling. 

SuperGreen aims to assist the Commission with defining the ‘Green Corridor’ concept and promotes the 

development of European freight logistics in an environmentally friendly manner. The workshop covers Key 

Performance Indicators, eFreight, selection of the most favourable set of corridors and a discussion among 

representatives of key stakeholders. 

The conference will address the subject of misdeclared container weights. Most people in the maritime 

industry believe that container weights should be verified before loading on board a vessel but there 

seems to be no enthusiasm for setting up procedures for weighing containers in ports and terminals. The 

conference will also look at the risks involved in carrying containers whose weights are at best imprecise 

and at worst simply unknown. 

The 3 rd European Shortsea Congress will be held in Dublin Castle. It is the most important gathering for the 

Shortsea sector in 2010 and comprises a two-day conference catering for bulk and unitised interests, a preconference 

reception, a gala dinner at Trinity College and a tour of the port. Conference sessions include the 

identification of future opportunities for various bulk and unitised sectors, insights from a number of highprofile 

shortsea customers, adding value to shortsea-sea supply chains, help and hindrance from Brussels 

and a range of other hot shortsea topics. 

Special Report on: Baltic maritime ranking 

Focus on: Aviation market 

The Annual Baltic Ports Conference is the most important event for its members and delegates from 

all parts of the industry, offering a platform for networking and face-to-face communication. In 2010 

the duties of a co-organizer and the conference host are to be taken over by the Port of Tallinn. 

Attention will be directed towards Benelux ports and the various shortsea and feeder activities 

that serve them. Serious issues for ports and shortsea operators alike, rail and barge operators and 

inland terminal operators will be discussed. Other topics to be discussed include the changing route 

patterns taking place in northern Europe, including the growth of Rotterdam as a hub for the Baltic, 

a trend which has impacted the northern German ports of Hamburg and Bremerhaven. 

The event has become established as an international industry showplace focusing on railway 

technology, and a platform for buyers and sellers of modern passenger and cargo freight solutions. 

A full range of rail vehicles is presented on the Messe Berlin tracks located outside the exhibition 

halls. The conference also features displays on Railway Infrastructure, Interiors, Public Transport and 

Tunnel Construction as well as an associated InnoTrans Convention including a special Dialogue 

Forum. 

This is the 6 th edition of this well-known international aviation conference for various air transport 

businesses in the CEE market. Delegates from various European countries will deal with the challenges 

of passenger/cargo traffic in the region’s airports. The most important representatives of the aviation 

market are involved in organizing the conference. The high level of the conference and its nice 

atmosphere offer a unique opportunity to share experiences, discuss and exchange opinions as well 

as get to know each other.

BTJ 5/2010 (Sept-Oct edition) 


Port Finance International 

London 

19-20 October 2010, UK/London 

www.portfinanceinternational.com 

TLS Congress 2010 

17-18 November 2010, PL/Warsaw 

www.tls-congress.com 

Baltic Ro-Ro & Ferry 

Conference 2010 

tba, tba 


BTJ 6/2010 (Nov-Dec edition) 


Intermodal Europe 2010 

Expo & Conf. 

30 Nov-2 Dec 2010, NL/Amsterdam 

www.intermodal-events.com 

AirFreight 2010 

1-2 December, PL/Warsaw 


Dates and places of the events are subject to be changed by the organizing parties. 

BTJ calendar of partnership events 2010 

Special Report on: Breakbulk, project & heavylifts 

Focus on: Baltic Shipyards 

The second annual edition of Port Finance International London will once again bring together 

leading experts and senior executives involved in the development and financing of the world’s 

ports, who will be provided with an opportunity to discuss the many challenges and opportunities 

of this dynamic market. This year the regional emphasis will be on port activities in the Middle East 

and Brazil as well as looking at their role in the ever-changing global market. 

The TLS Congress for Central and Eastern Europe, this time held in Warsaw, is once again inviting you 

to network with Europe’s leading companies as well as to discuss the latest strategies, initiatives and 

developments with regard to transportation, logistics and supply chain in the EU. 

The 5 th edition of the event concentrating on ro-ro, ro-pax and con-ro traffic on the Baltic Sea, giving 

a thorough insight into shipping, port and hinterland matters as well as current trends in vessels 

technology and the sector’s role in the regional logistics network. 

Special Report on: Modern logistics 

Focus on: CEE Railways 

After a one-year break, Intermodal, the world’s leading container event, will be back in 2010 at a 

familiar venue, the Amsterdam RAI. Showcasing all elements of the container and intermodal 

industries, the conference represents a nice opportunity to network and source new technologies 

and services for the improvement of your business operations. 

A conference wholly dedicated to the problems of today’s air cargo development and its future 

prospects and threats, with special focus on the Polish and Central European markets. The event’s 

agenda will include a discussion on cargo airports in the region, cargo safety and protection, the 

current state of air forwarding markets as well as a debate and analysis of specific policy measures. 


What’s new? 

Maritime 

In the Szczecin Seaport, a sulphuric acid 

terminal is going to be built. In April a 

conditional lease contract was signed between 

the Seaports Authority and KGHM 

METRACO. The contract provides for a 

lease of 10,000 m 2 at Katowicki Peninsula 

in the port to establish a sulphuric acid 

storage and handling facility. Plans include 

building 3 tanks linked through pipelines 

with the shore and a vessel loading post. 

As requested by the investor, the Seaports 

Authority will modernise the berthing facility 

along the Katowickie Berth, extend 

the railway track to the site border, provide 

utilities and build a transformer station. 

The investment cost to be borne by the 

Seaports Authority is about EUR 1.8 mln. 

The Port of Kiel is back on track with a total 

of 1.27 mln tons of cargo handled in the 

first three months of this year – an increase 

of 13% over the same period of 2009. Kiel 

was also able to more than double its container 

handling. In the first quarter 5,040 

containers were dealt with, compared to 

2,342 in the corresponding period of last 

year. Bulk cargo handling also showed 

positive development in the first quarter. 

Increases in building materials imports, oil 

products and coal contributed in particular 

to an 18.13% increase over the same period 

of 2009. 

Scandlines Group further extends its ropax 

services to the Baltic states. As of April 

the company offers its customers an additional 

service from Travemünde to Liepāja. 

Scandlines will also continue between 

Travemünde and Ventspils thereby offering 

a high frequency product from the 

German port while providing greater coverage 

and alternatives in the Baltic. 

Oil trader Gunvor has postponed the 

launch of Russia’s largest oil product outlet 

in the Baltic Port of Ust-Luga from May 

to autumn. Construction of all the main 

terminal facilities, except for the border 

checkpoint and electrical substation, have 

been completed. 

The Port of Klaipėda outperformed the 

ports of Riga and Ventspils again – cargo 

handling results at Klaipėda port for the 

first quarter of this year were higher than 

those of Riga and Tallinn in terms of the 

share in total turnover of all ports. In the 

first quarter of 2010, the growth in cargo 

turnover at Klaipėda amounted to 15.9%. 


The clean queen of the seas 

Photo: WWL 

It is the ship of the future – powered by the 

sun, wind and waves. The futuristic vessel has no 

conventional engines, uses no fossil fuels and releases 

no harmful emissions into the atmosphere 

or pollution into the sea. The E/S Orcelle, a concept 

ro-ro cargo ship designed by the Scandinavian 

shipping company, Wallenius Wilhelmsen 

Logistics (WWL), represents a new vision of 

the future of ocean transport by harnessing the 

power of the sun, wind and water and no emissions 

into the environment. The ship’s design 

incorporates a cargo deck area equivalent to 14 

football fields. It has the capacity to carry up to 

Maersk’s efforts are paying off 

Photo: Maersk 

Revenue for the period increased by 

20%, primarily as a result of higher oil prices 

and increasing freight rates and volumes in 

container activities. The result for the period 

was a profit of USD 639 mln, compared 

to a loss of USD 373 mln in the same period 

of 2009. During the first three months 

of 2010, the container shipping market was 

positively affected by higher volumes and 

better rates compared to the same period of 

2009. The growth in activity was partly related 

to general restocking in the USA and 

Europe. Considerable rate increases and reasonable 

volume coverage were achieved in 

10,000 cars in emission-free conditions across 

the world’s oceans. Three giant rigid sails covered 

in solar panels and 12 dolphin-like fins on the 

ship’s pentamaran hull will help drive it along at a 

cruising speed of 15 knots. 

According to Melanie Moore, WWL Global 

Head of Environment, “E/S Orcelle represents 

one of our visions of an environmental 

sustainable future for logistics. We are working 

hard to minimise our environmental footprint 

by working closely with our customers to reduce 

their carbon risk in the supply chain while 

creating real economic and brand value.” � 

connection with the contract negotiations 

on the Transpacific routes. The Group also 

achieved higher coverage of fluctuations 

in fuel prices by means of surcharges. Global 

cargo volumes for 2010 are expected to 

rise by minimum 5%, driven mainly by the 

strong development in demand in the first 

quarter. A 6-9% addition of tonnage is expected 

for the global container fleet. Volumes 

on the head haul routes between Asia 

and Europe increased by 16% in the first 

three months of 2010 compared to the same 

period of 2009, while volumes on the lowerpaying 

back haul routes increased by 15%. �

Stena Line launches the world’s largest 

superferries 

Photo: Stena Line 

The two largest superferries in the world 

will sail the North Sea between Harwich and 

Hook of Holland this year, following their 

launch by Stena Line this spring and autumn. 

Stena Line’s largest ever investment of 

over EUR 434.2 mln has been spent on building 

the two new vessels, with the Stena Hollandica 

launched in May 2010 and the Stena 

Britannica following in autumn 2010. They 

are the largest ferries of 

their type in the world in 

terms of combined passenger 

and freight capacity. 

Each will be capable 

of transporting 230 cars 

and 300 freight vehicles. 

The 538 cabins, finished 

in a light and fresh style, 

will be equipped with 

Dux beds and will have 

a modern en suite bathroom 

with Hansgrohe 

fittings. Eco-friendly 

features on the new superferries 

include catalytic converters, an 

improved hull design, highly efficient engines 

and better combustion rates, all helping 

to reduce environmental impact. The 

ferries have facilities to recycle glass, cardboard 

and food waste onboard, while solar 

film on all windows will exclude up to 82% 

of the sun’s radiant heat, reducing the energy 

used by the onboard cooling system. � 

Maritime 

What’s new? 

Nordic Ferry Services, Danish shipping 

company, is to be known as FÆR- 

GEN (“the ferry”) from 1 October 2010. 

The shipping company is also introducing 

a new design. By 2012 all the ships 

serving inner-Danish ferry connections 

are to have a new livery and a new logo. 

With the Danish name FÆRGEN, Nordic 

Ferry Services is also signalling a change 

of strategy. In the future the company 

will concentrate solely on operating its 

inner-Danish routes. 

Agreement has now been reached between 

the Norwegian and the Russian 

negotiating delegations on the bilateral 

maritime delimitation in the Barents 

Sea and the Arctic Ocean. The issue of 

maritime delimitation between Norway 

and the Russian Federation has been the 

object of extensive negotiations over the 

last 40 years. The recommended solution 

involves a maritime delimitation line 

that divides the overall disputed area of 

about 175,000 km 2 in two parts of approximately 

the same size. 


What’s new? 

Logistics 

DB Schenker has significantly increased 

the storage and handling capacity at its 

Lvovsky site, south of Moscow. The new logistics 

project, which the boost is connected 

with, comprises approximately 25,000 m 2 of 

warehousing capacity for contract logistics 

services and a cross-docking terminal with 

an area of 6,000 m 2 have now been extended 

with the addition of a new facility. 

In the logistics centre, which covers an area 

of around 5,400 m 2 , a packaging facility for 

parquet boards has been installed. 

Kuehne + Nagel has established a new 

office in northwestern Russia, in order to 

participate in important development 

projects of the oil and gas industry. The 

new office in Murmansk, at the Kola Gulf of 

the Barents Sea, will be important for the 

coming launch of the Shtokman gas condensate 

field exploration project, as well as 

serve the oil and gas-related industries in 

general. The location is well connected to 

all Russian regions and to Norway and Finland 

via St. Petersburg and Moscow. 

Baltic Oil Terminals has announced that 

it has entered into a non-binding memorandum 

of understanding with Alpcot 

Agro AB and its investment adviser Alpcot 

Capital Management to expand its 

operations at the Port of Baltiysk in Kaliningrad. 

Under the memorandum, Alpcot 

Capital will be responsible for securing 

the necessary financing to build the 

terminal, which will be located adjacent 

to Baltic’s existing Rosbunker terminal. 

Alpcot Capital will also seek additional 

partners to develop the terminal. Baltic 

will provide its operational expertise, advice 

and support on all logistical aspects 

of the terminal’s development and will 

assume its day to day operation. 

FESCO Transportation Group and Mitsui 

& Co. have announced signing an 

agreement to form a strategic business alliance, 

envisaging the establishment of a 

joint company focused on providing a full 

range of warehousing and distribution 

services in the domain of imports and distribution 

of Japanese products manufactured 

in Russia. The newly created company 

will be based in Moscow and engages 

in the complete spectrum of warehousing 

and logistics services to support the supply 

chain of leading Japanese manufacturers 

across the Russian territory. 


Rhenus to construct bonded warehouse in 

the Smolensk region 

Photo: Rhenus Group 

Rhenus AG & Co. KG has signed a 

declaration of intent to complete the “Establishment 

of a Bonded Warehouse for 

Temporary Storage” investment project together 

with the governor of the Smolensk 

region on behalf of OOO Revival Express, 

a Russian subsidiary of the Rhenus Group. 

The idea of moving the customs offices to 

the border regions is designed to simplify 

customs clearance to the maximum degree. 

At the same time, overland transportation 

routes will be changed in order to relieve 

the major cities of traffic. Revival Express 

was one of the first logistics companies to 

follow suit and establish new branches to reflect 

the realignment of the Russian customs 

policy, which took place in the summer of 

2009. The company is now organizing regular 

customs clearance procedures near the 

borders. A start has also been made on test 

procedures in Smolensk, whereby customers 

can make remote declarations on the 

Damco joins Dash7 Alliance 

The DASH7 Alliance, a coalition of organizations 

promoting a standard for wireless 

sensor networks, has announced that Damco, 

the combined brand of A.P. Møller-Maersk 

logistics activities, has joined the Alliance. As 

a member of the DASH7 Alliance, the company 

will work with more than 40 companies 

around the world to advance development of 

the ISO 18000-7 (DASH7) standard. DASH7 

is a wireless sensor networking technology 

that evolved from radio-frequency identification 

and sensing technologies used in the 

defense industry. Because of its long range, 

ten-year battery life and its ability to penetrate 

water, concrete and other materials 

that can block other Radio Frequency (RF) 

signals, DASH7 is used extensively today by 

Internet without being physically present. 

Rhenus has already secured the land for its 

first bonded warehouse by means of a preliminary 

agreement. Construction work is 

due to start in the second half of this year 

after getting approval by the Federal Customs 

Service of the Russian Federation. 

The first stage involves building of a bonded 

warehouse for temporary storage. After 

this, there are plans to expand the logistics 

complex to an area measuring 30,000 m 2 , 

25,000 m 2 of which will be used as a transfer 

warehouse. Rhenus is planning to handle 

all the normal commercial goods at its 

own facilities during the first half of 2011 

and will later provide intermediate storage 

for all types of items except hazardous 

goods. The bonded warehouse will match 

European standards and will, for instance, 

have its own access control system and 

video monitoring. The centre will also provide 

all kinds of customs services and space 

for groupage freight to be transshipped. � 

Photo: Rhenus Group 

the military for tracking ocean cargo shipments. 

To meet the needs of the commercial 

shipping and supply chain industries, the 

DASH7 Alliance recently formed the Container 

Sensing and Security Initiative (CSSI), 

to define the next generation of cargo container 

tracking and monitoring devices. The 

DASH7 Alliance was formed in 2009, the 

Alliance now has more than 40 participants. 

Manufacturers, systems integrators, developers, 

regulators, academia, and end-users 

all work together to promote the use of 

DASH7 technology in a wide array of industries 

and applications. Damco is a provider 

of freight forwarding 

and supply chain management 

services. �

DSB tests fixed coupled IC4 train sets 

Photo: DSB 

Danish national railway carrier, DSB, has 

carried out trial runs between Vojens and Tinglev 

with two fixed coupled IC4 train sets and 

expects that they will be approved for service 

with customers during Q3. At the end of 2009, 

AnsaldoBreda and DSB entered into a supple- 

ment agreement regarding upgrading of the 

train computer which will make it possible 

to couple up to five IC4 train sets. DSB now 

has 17 IC4 trains in Denmark, 14 individually 

built train sets in the preliminary version 

called NT++, which are used in its daily service, 

and three type approved train sets in the 

final version called MPTO. DSB has seen a significant 

fall in the number of technical faults 

in the present serial produced type approved 

train sets. The latest serial produced train 

set, which AnsaldoBreda sent from Italy, had 

183 faults compared with up to 1,800 faults 

in the first individually built. The three type 

approved IC4 trains are mainly used for trial 

runs needed for obtaining approval to operate 

with passengers in coupled train sets. Ansaldo- 

Breda is to deliver a total of 83 IC4 and 23 IC2 

train sets to DSB before the end of Q3, 2012. � 

Intermodal shuttles between Germany and 

Sweden 

Photo: Green Cargo 

Green Cargo has started its own intermodal 

shuttles in Europe, which gives freight carriers 

and hauliers new opportunities to save time, 

money and the environment. The new shuttles 

with trailers and containers run six nights a week 

on the routes Hannover – Malmö and Krefeld 

– Malmö. More and more carriers want to trans- 

port trailers and containers for long distances by 

train. Preconditions for the trains to be a viable 

option are short lead-times, high punctuality and 

appropriate wagons. Train companies must also 

have access to good terminals where the trailers 

and containers can be lifted on and off trains. 

To ensure quality and punctuality, the shuttles 

are run as direct trains without any locomotive 

changes. Before Green Cargo only ran an intermodal 

shuttle on the route Olofström-Malmö- 

Gent. The increase of two new shuttles is part of 

Green Cargo’s strategy for the future where the establishing 

of so-called Green Corridors are in line 

with both Sweden’s and the EU’s ambitions for the 

transport sector. The intermodal shuttles are filled 

with truck trailers, swap bodies and containers. 

The efficiency and environmental performance 

of trains along with the flexibility of trucks is 

the reason behind intermodal traffic growth. � 

Overland 

What’s new? 

Latvijas dzelzceļš (Latvian Railways) have 

launched a feasibility study on the electrification 

of Latvian railway lines. Within the 

study’s framework it is planned to assess 

economic justification of Latvian railway 

system’s electrification – costs and potential 

economic benefits. It will also be determined 

on which lines this process should be 

implemented and what technical solutions 

should be included – either to develop the 

existing 3.3 kV DC system or to convert systems 

according to the most progressive 25 

kV AC, which is widely used in Europe. 

Russian Railways (RzD) has invested approx. 

RUB 60 bln in development during the first 

four months of 2010. Of this amount, RzD has 

spent RUB 9.2 bln on purchasing and upgrading 

locomotives and RUB 3.2 bln on purchasing 

and upgrading motorised railcar rolling 

stock. Also being implemented rapidly are 

various projects, including the final phase of 

the railway infrastructure needed for the highspeed 

Sapsan trains between Moscow and 

Nizhny Novgorod; renovation of the bridges 

over the Obvodny Kanal (Bypass Canal), which 

is part of a joint project with St. Petersburg. 

The alliance of carmakers Peugeot, Citroën 

and Mitsubishi have officially launched 

production at its Kaluga region facility, 

which has an annual capacity of 125,000 

cars. The Peugeot 308s assembled there fit 

all the requirements for buyers to use the 

RUB 50,000 available from the government 

under its car recycling program. The plant 

will make mid-sized cars under the Peugeot, 

Citroën, and Mitsubishi brands, which 

will be sold on the Russian market. Total investment 

in the Peugeot Citroën-Mitsubishi 

project is about EUR 470 mln. The alliance 

plans to produce 25,000 vehicles this year. 


What’s new? 

Aviation 

airBaltic will independently attract financial 

resources to build a new terminal 

for handling its own as well as transit 

passengers. Implementation of the plan 

will not require funding from RIGA International 

Airport, state budget allocations 

or government guarantees. According 

to the plan, the new passenger 

terminal with appropriate infrastructure 

and a capacity of 5.2 mln passengers is to 

be built by 2013. Investments required 

for the construction of the terminal are 

estimated at approximately EUR 92 mln. 

The EBRD has committed to lend EUR 

100 mln to finance the building of a 

new terminal at St. Petersburg’s Pulkovo 

Airport as part of a EUR 716 mln 

long-term debt package being put together 

by five international financial 

institutions and Russia’s Bank for Development 

and Foreign Economic Affairs 

Vnesheconombank (VEB) to fund 

this landmark Public-Private-Partnership 

project. Pulkovo’s existing facilities 

have reached their capacity limit and 

do not allow for further traffic growth. 

Once completed, the project aims to 

double traffic numbers at Pulkovo. The 

new terminal serving both domestic 

and international passengers is due to 

be finished in 2013. 

Passenger turnover at Riga Airport 

continues to grow. In the 1st quarter of 

2010 there were 914.4 thous. passenger 

arrivals and departures from the airport, 

an increase of 21% if compared to the 

1st quarter of last year. In the 1st quarter 

of 2010, 609.3 thous. passengers using 

Latvian Airlines saw an increase of 

28.3% when compared to the 1 st quarter 

of 2009. The largest 1st quarter passenger 

turnover at the airport was with German 

airports – 122.5 thous. passengers, 

followed by Great Britain with 116.8 

thous. passengers. 

After a two-year break Polish Airways 

LOT have resumed flight service from 

Warsaw to Tallinn. The trip, lasting 

about one hour and forty-five minutes, 

will be served by Embraer 145 and 170 

aircraft. The connection to Tallinn is 

one of many new routes which will extend 

the LOT network over the coming 

months. They will also include connections 

to Bratislava and Kaliningrad. 


Just one question 

Chaos in European airports 

What if another volcano erupts? 

With the recent flight disruptions, caused by ashes from the Eyjafjallajökull volcano 

in Iceland, we have asked industry leaders, what can be done in the future to 

minimise passenger inconvenience and airline costs when dealing with potential 

natural disasters such as occurred in April. 

Erik Sakkov 

Member of the Management Board 

Tallinn Airport 

Decisions of the authorities must be based on actual facts, on a scientific 

and measureable basis, not on emotions or fears. To minimise 

passenger inconvenience, airlines and airports must have a clear 

strategy and action plan to handle force majeure situations in the 

future. Volcanoes will not accept our bills, perhaps it makes sense to 

create a special fund to cover the costs related to similar disruptions. 

Maria Mroue 

Communications Director 

Finnair Oyj Corporate Communications 

A common ground would help everyone to put every effort into solving 

the situation. Insurance companies, for example, state that they do not 

cover anything in these situations. We at Finnair have all our resources 

helping our customers, as it should be. Yet there are demands that airlines 

should cover various expenses in addition to refunding tickets. 

Andreas Engel 

Manager International Public Relations 

Germanwings 

First of all better coordination between airlines, national governments, 

air traffic services and EU authorities. That also means faster decisions to 

minimise passenger inconvenience and airline costs. Hopefully not only 

the airline industry has learned from underestimating the potential of 

such events. We need to look forward, everyone within the EU, in order to 

model and price the risks as well as we can to deal with mother nature. 

Tom Christides 

VP Communications and Public Affairs 

Blue1 

We’ll have to accept the fact that traffic disruptions on a very large scale, 

like in April, always will cause passenger inconvenience to some extent. 

Our experience is that on-time and accurate passenger communication, 

through all kinds of channels, e.g. mass media, the web, Facebook and 

text messaging, is a major factor in relieving passenger inconvenience. 

Of course, the passengers involved need to be taken care of, but clear 

rules have to apply in a situation like this, it cannot differ from country to 

country or airline to airline. And it must not cover only aviation, but the 

entire transport sector.

Arijandas Sliupas 

General Manager 

Kaunas International Airport 

Clear guidelines should be set stating that in such situations the 

airlines can offer two options to their passengers – changing the 

flight dates under the same conditions whenever a seat is available 

on the same or an alternative route towards the final destination 

operated by the airline or costs of the purchased ticket refunded to 

the passenger without any obligations to the airlines to offer the 

passenger compensation for food or hotel. 

Michael Løve 

Chief Operating Officer 

Copenhagen Airports A/S 

We need a common EU approach to the regulation imposed on airlines 

and airports during natural disasters. The difference between 

the approach in each country during the current crisis creates insecurity 

among passengers and makes it nearly impossible for airlines 

and airports to plan operations. This causes chaos and adds cost to 

an already pressured industry. 

Thorbjørn Ancker 

Director of Communications 

Civil Aviation Administration – Denmark 

Coordinated actions should be made to ensure that regulations regarding 

passengers’ rights are applied in a consistent way and that efforts 

are being made to ensure that, if one mode of transport cannot 

deliver, other transport modes can quickly substitute in the interest 

of passengers. Aviation is by nature an international means of transportation 

and thus the questions of passenger inconvenience and 

airline costs when dealing with potential natural disasters must be 

addressed by the global aviation community, such as the European 

Union and the International Civil Aviation Organization. 

Janis Vanags 

Vice President Corporate Communications 

airBaltic 

The situation could have been better managed, if there would be a single 

mechanism controlling European airspace. It again calls for introduction 

of the Single European Sky that would replace the national patchwork of 

airspace, and allow for swift and consistent decisions and allow airlines 

to take stranded passengers back home much earlier. One more issue 

concerns consumer protection authorities, always in the front line when 

it comes to criticizing airlines for not living up to EU regulations in connection 

with flight irregularities. It is high time for these people to take a 

closer look at all the cheaters among the airlines, airlines that simply do 

not take care of their stranded passengers, instead of having their attention 

steadily focused on airlines that do their job. In that sense we clearly 

see that some customer watchdogs sometimes apply double standards, 

and this should be remedied immediately so that next time thousands of 

passengers are not left behind and forced to sleep on airport benches. 

Aviation 

What’s new? 

JSC Aeroflot Russian Airlines, Russia’s biggest 

air carrier, and the first all-Russian mobile 

operator JSC MegaFon have agreed to install 

MegaFon’s base stations on Aeroflot’s aircraft. 

For the first time in Russia, Aeroflot and Mega- 

Fon will offer passengers the opportunity to 

use mobile phones and the Internet in flight. 

Air passengers have chosen Finnair as the 

Best Airline in Northern Europe in the 2010 

independent Skytrax survey. About 18 

mln passengers from some 100 different 

countries contributed to the Skytrax research, 

which was carried out between July 

2009 and April 2010. Skytrax is a recognised 

research survey company that evaluates 

commercial airlines and their services. 

JSC Sheremetyevo International Airport 

has successfully recruited the consortium of 

Credit Suisse-Troika Dialog as its investment 

consultant to complete work relating 

to consolidation of the airport’s property. Realization 

of this project will expedite the process 

of transforming Sheremetyevo International 

Airport into a major international hub. 

Wizz Air has become the largest airline in 

Poland. Wizz Air will continue to grow at a 

20% rate in 2010, however, the outlook has 

been reduced by 400 thous. to a more cautious 

target of 4.3 mln passengers in Poland 

this year. In 2009 the airline carried 7.8 mln 

passengers, 30% more than in 2008. 

The delivery of Lufthansa’s first Airbus A380 

marks the dawn of a new era in flying for the 

airline’s passengers. Lufthansa has configured 

its Airbus A380 with 526 seats. Numerous airports 

worldwide are currently upgrading their 

facilities in preparation for the A380’s arrival. 

At Frankfurt Airport, where the Lufthansa 

A380 fleet will be based, facilities are already in 

place for passengers to board and disembark 

from the aircraft on two levels. 

Phase 1 of Helsinki Airport’s redevelopment 

was completed in May. Spacious and bright 

new passenger areas in Terminal 2 have increased 

check-in and baggage handling capacity. 

Renovations began in August, 2009, 

with the objective of connecting the existing 

baggage conveyor systems to the state-ofthe-art 

baggage handling centre in the new 

extension. Thanks to the extra space and 

modern technology, Helsinki Airport can now 

process 13.5 mln bags in one year, which is 

43% more than the current facilities allowed. 


Maritime 

Perspectives for the Baltic region 

Transporting oil – a growing opportunity 

Photo: Stena Bulk 

In the last ten years, Russia’s economic growth 

has mainly resulted from the increased export 

of energy fuels. Since the end of its economic 

crisis in 1998, there has been an increase in production 

and export due to higher prices of oil, 

privatisation of oil companies and investments. 

Nowadays, the Russian economy is still dependent 

upon the export of oil and gas. 

According to World Bank data, export of oil and gas 

amounts to more than 70% of the overall export revenues 

in Russia. In March 2010, Russian companies produced 

42.81 mln tonnes of oil, which is an all-time record of 

10.12 barrels per day and makes Russia the world leader 

in oil extraction. The previous record was set in December, 

the new one is 0.4% higher. Russia is now the only country in the 

world that extracts more than 10 mln barrels per day: at the end of 2009, 

its oil production level exceeded the one from the previous world leader 

in oil production – Saudi Arabia. 

In 2009, oil production in Russia went up 1% and amounted to 494.2 

mln tonnes. It is the highest number since the collapse of the Soviet Union, 

being mainly the result of OPEC’s decision to decrease extraction in 

order to stop the drop in prices. Despite OPEC’s request for similar action, 

Russia adopted a totally different approach. The Russian extraction 

was increased in order to make up for the drop in prices and increase 

revenues, by selling cheaper oil in the Urals. 

The record production results also from exploiting new reserves. 

Nevertheless, the growth in production will probably not continue for 

much longer, since the extraction in old, highly exploited reserves is decreasing 

and requires investments. This applies particularly to the fields 

in western Siberia, supplying Western and Central Europe. 


Oil supporting investments 

In recent years, there has been a strong, unabashed impact of the 

Kremlin to develop the energy fuels sector. Oil prices, increasing since 

2002, have fostered the implementation of expensive projects on transmission 

and export. It is most clearly evident in the development of sea 

transshipment terminals and transmission pipelines. 

The Port of Primorsk, currently transshipping 75 mln tonnes of oil 

per annum, is constantly developing, and may soon increase its transshipment 

to 120 mln tonnes. The terminal has 4 transshipment piers 

and can handle ships with a capacity of 150,000 tonnes. 

An oil terminal in Ust-Luga and an oil pipeline, designed to deliver crude 

oil from the Druzhba system to the new Russian port, are currently under 

construction. Ust-Luga is to start transshipping in 2012 and its capacity in the 

first stage will be 30 mln tonnes per annum with the view to increasing it to 38 

mln tonnes per annum. It will handle ships with a capacity of 100,000 tonnes. 

An oil depot will also be built near the marine transshipment terminal. Completing 

this investment will give Russians a sea alternative to the existing pipeline 

transport in supplying Poland and Germany. 

Most of the oil exported from the reserves in western Siberia is transported 

through the system of pipelines belonging in Russia to Transneft. In 

previous years, oil was exported mainly through the Druzhba pipeline, the 

Black Sea and the Baltic Sea, with the use of ports in Latvia and Lithuania, and 

through Naftoport in Gdańsk linked to the Druzhba system of pipelines. 

The importance of railways 

Railways play an important part in the balance of trade. They supply ports 

and refineries not connected to the pipeline system as well as those without 

pipeline supply, like Ventspils in Latvia and Butinge in Lithuania. Lithuanian 

Butinge is used as an import oil terminal by the ORLEN Lietuva refinery in 

Mažeikių, Lithuania. Cutting off the supply through the pipeline resulted in 

ORLEN Lietuva receiving oil both by sea through its terminal in Butinge and

y rail. Ports with good standing are Estonian Tallinn, with the transit of Russian 

oil and oil products delivered by rail, and Lithuanian Klaipėda, where 

over 30% of transshipment is of petroleum origin. 

The ESPO pipeline, providing Russia with direct access to the Far 

Eastern market, is another crucial Russian infrastructure investment. It 

has been designed to diversify export of Russian oil and allow Russia to 

enter Asian and Pacific markets, where oil demand is constantly growing. 

ESPO allows Russia to choose the direction of export, providing independence 

and economic safety for the country, whose income depends on 

profits from oil and gas export. Russia is an active player in the European 

oil market, but used to have little to say in the Asia-Pacific region. ESPO 

should solve this problem. In the future, internationally distributed Russian 

oil is most likely going to be related mainly to ESPO. 

Connected with ESPO by railway, the oil terminal in Kozmino, Nakhodka 

located by the Pacific Ocean, is designed to annually handle 

around 500 tanker ships with a capacity from 80,000 to 150,000 tonnes 

each. It also has a branch going to China. Its construction began in May 

2009 and is to be finished this year. 

The growing acceptance of ESPO, which is now transporting nearly 

600,000 barrels per day, is a clear sign that the Russian strategy to increase 

its share in sales to Asian importers at the expense of Middle East 

suppliers, is a success. 

The Baltic’s role 

The Baltic Sea is one of the smallest seas in the world. It is difficult 

to navigate and its waters are filtered very slowly through the Danish 

Straits. Still, traffic in the Baltic Sea is one of the busiest in the world. 

Around 500-700 mln tonnes of various cargo is being transported 

through the sea each year. At every time of day and night, there are 

around 2,000 ships in our sea. The Danish Straits are, of course, the busiest. 

There are around 40 fuel terminals in the Baltic area. 

Crucial for today’s Russian oil transport, the Baltic ports transshipped 

around ¼ of the overall Russian oil export and a great deal of 

oil products to international markets. 

The amount of cargo is to double by 2017. In recent years, fuel transport 

tends to dominate in the general balance. Since 1995, oil transportation has 

doubled. In 2000 alone, around 80 mln tonnes of oil was transported, and 

by 2015 the number should increase to 150 mln tonnes. The main reason 

for such growth is the construction of new fuel terminals in Russia. 

During the first two months of 2010, Russian Primorsk transshipped 

as much cargo as last year, whereas Latvian Ventspils and Lithuanian 

Klaipėda recorded substantial slides. 

Changes in directions of oil transport according to Russia’s needs are to be 

expected, since Russia announced to take full control over oil export, together 

with oil transported by rail. This may painfully affect railway-supplied terminals, 

but cargo will still be reaching the seaways through Russian terminals. 

The relatively good situation of the Baltic ports may change due to 

Russia’s aspiration to direct its oil and oil products export to Russian 

ports only. Russia is implementing its strategy to become independent 

from the transit countries. 

The search for new markets and buyers is the second essential component 

of the new strategy. 

What will the future bring? 

In Europe, consumption of fuel in passenger cars is clearly decreasing, 

especially when the number of cars remains rather constant, which is 

mainly the result of increased education and ecological awareness of European 

citizens. The European demand for fuel will quite possibly never 

go back to its levels from previous years and the overproduction of European 

refineries will need to find buyers in remote locations. This means 

Maritime 

that the traffic of oil and oil products will not decrease in the Baltic area. 

A larger stream of oil is most likely be directed towards China and 

India, with their booming automobile markets and drastically growing 

fuel requirement. 

It may even increase traffic in the Baltic region if local refineries 

keep their oil production at the current level. All predictable factors 

point to the fact that the Baltic Sea will not cease to be a bustling seaway 

of oil and oil products transport. 

According to the International Energy Agency, this year’s oil demand will 

be the highest in history, amounting to 86.6 mln barrels per day. The increased 

demand will be met by oil generated outside OPEC, mainly in Russia. 

Numbers speak for themselves 

Over 110 mln tonnes of liquid bulk cargo was transshipped in the 

Baltic ports in 2007. The number is to reach 137 mln tonnes in 2015 and 

increase even more to 165 mln tonnes in 2030. As was previously mentioned, 

one of the main assumptions of the Russian transport strategy is 

to increase the share of its ports from 75% to 95%, to which end Russia 

is building new ports and upgrading its existing ones. Russia supports 

the strategy with its tariff policy and subsidizing transport by own ports, 

which encourages Russian exporters. 

The share of transport costs in total production costs in Russia is 

relatively high and equals up to 20% of the end value, which is three 

times as much as in countries with developed markets. The underdeveloped 

transport system is one of the reasons for such high costs. It is no 

wonder that Russia tries to make up for the backlogs and is developing 

its port and transmission infrastructure. If it is profitable, why not take 

over the transshipment and transmission of oil? 

The pipeline infrastructure would ensure a long-term co-dependency 

of suppliers and buyers, provide continuing economic cooperation, as well 

as almost irreversibly change the geopolitical system of the region. The development 

of marine oil transshipment terminals connected with the pipeline 

system would in turn enable flexible cooperation in the oil market and 

Picture 1. The Baltic countries and main oil ports – source: EIA. 


Maritime 

provide freedom of contracts. Such freedom, however, does not come without 

a price. The cost of pipeline transport is still lower than sea transport. 

Time will show if the trend continues. 

Making use of sea transport and expanding port infrastructure provides 

flexibility in acquiring oil and diversifying both buyers and suppliers. 

The market is being changed by infrastructure, which is an opportunity for 

the Baltic ports and oil terminals. When planning for development, issues 

of sustainable development should be taken into consideration, particularly 

the ecological danger connected with increasing traffic in the Baltic Sea. It 

concerns shipping, transshipping, the fleet condition, safety regulations, as 

well as organising emergency action services for ships and providing shelter 

for ships posing a direct threat to the Baltic Sea environment. 

CEE’s reaction 

The development of Russian oil transport by sea will drastically 

change the market situation for CEE countries. The market will have to 

become more flexible, partly due to the decreasing difference in prices 

of Russian and, for example, Brent oil. The importance of premium on 

oil imports from Russia, having repeatedly decreased in recent years, will 

further diminish. This new situation does not guarantee “saving” on the 

costly pipeline and storage infrastructure – quite the contrary. What is 

essential here is the advanced transmission infrastructure, switching from 

the “corridor” to “network” type. The more connections between the corridors, 

the more possibilities of changing the direction of shipping oil to 

end users from any port and any supplier. 

It is absolutely necessary to increase storage capacity of both oil 

and oil products in order to stock, as well as to enable the operator 

of the network system to distribute cargo to all buyers from various 

�� 

locations in the entire logistics system. 


Sea transport development naturally diversifies both suppliers 

and the supply directions. Trying to increase its independence from 

transit countries, Russia directed its cargo to its own ports and so 

achieved a much better market position. Thus, the price discrepancy 

of various oil types is diminishing. By constructing pipelines which 

bypass the transit countries and lead to Russian ports, Russia is developing 

its infrastructure and increasing export revenues. 

It is possible to keep supplying the existing buyers in CEE countries 

through pipelines, but on a smaller scale and with coexistent sea transport 

supply. However, the buyers would need to be more flexible in their oil transshipment 

terminals, transmission pipelines and storage tanks management. 

Marine transshipment terminals will thus function as transit terminals for 

Russia, as well as import terminals for the domestic market. Oil terminals 

in Estonia, Latvia, Lithuania and Poland have the advantage of not freezing 

in cold weather and so enable Russian companies to meet their obligations 

towards buyers all over the world even in case of a severe winter. 

Development of new ways of oil export from Russian reserves opens new 

opportunities for the Polish oil terminal in Gdańsk, as well. Not only does it 

guarantee oil supply for Polish refineries but also provides a connection with 

neighbouring countries through a pipeline system. It is directly connected to 

the Grupa Lotos refinery in Gdańsk and PKN ORLEN in Płock. The pipelines 

go as far as to eastern Germany, to refineries in Schwedt, Leuna, and 

Belarus, to the oil refinery in Mazyr. For many years, it has been intended 

to connect Poland with the Black Sea port of Odessa, all the way through 

Ukraine. Numerous factors prevent the project from coming to fruition, 

with the lack of ascertaining oil supply from the Caspian Sea being the main 

one. Therefore, Gdańsk has a lot of potential, which depends on developing 

an appropriate storage system and pipeline transmission possibilities. � 

Krzysztof Szymichowski

Safety in BSR 

Maritime 

Reporting, learning, being flexible 

Photo: NOAA 

How safe is the Baltic Sea? The 

most simple answer is: more 

or less safer than other seas. 

However, we often forget that the 

Baltic is free of icebergs, tropical 

typhoons, tsunamis, magnetic 

anomalies, tides… And it has lots 

of sheltered waters, well marked 

routes and good ports. 

Other regions are often more 

foggy, more windy and generally 

less friendly from a mariner’s 

point of view. In fact, 

most people mention only one 

safety aspect of shipping in the 

Baltic Sea – its growing traffic and impact on the 

environment. Those opinions should be mitigated 

because the same or worse situations occur in 

some parts of the North Sea, in the Persian Gulf, 

Malacca Strait and Inner Sea of Japan. 

It should therefore be underlined that safety 

in the Baltic is dependent on the same processes, 

rules and breakdowns as in other seas. But it 

seems we are privileged because the dangers of 

the closed bay of the world ocean are more related 

to humans, so more predictable and better 

controlled except… for the humans themselves. 

GPS is not enough 

The latest technological improvements together 

with the development of appropriate infrastructure 

should lead to a sharp decline in the 

number of accidents – especially technology-related 

occurrences. For example, GPS navigation 

devices should eliminate groundings. These incidents 

used to happen often because a bridge team 

didn’t know the real position of a ship. Nowadays 

the problem is not in the lack of navigational information 

– it is in the lack of proper staff who can 

interpret and use it. If you only have two officers 

on watch aboard (one is a master!) your ship, you 

never have a full bridge team; further, you have 

a 50% probability that one of the OOWs sleeps 

while on night duty. You also have a 75% probability 

that one of them is doing paperwork on the 

bridge during daylight. And you have nobody to 

substitute an officer if he is ill or intoxicated. 

We know that humans are weak and fallible, 

especially if fatigued. We know biological needs 

and limitations of the ‘liveware’ but we don’t use 

our knowledge, making – for example – appropriate 

regulations or interpreting them strictly focusing 

on safety. So, a simple grounding is made not 

by one weak human – it is caused by a chain of 

uncontrolled decisions starting at the highest, in 

the case of shipping usually at the regulatory level. 

Stepping down, nobody undertakes corrective action, 

in this example by adding one more OOW. 

Such behaviour becomes routine which is called 

a ‘normalization of deviance’. In shipping it should 

rather be called a ‘formalization of deviance’. 

Safety culture 

Modern doctrine of industrial and transport 

safety looks at accidents in a very broad manner 

– every aspect of the socio-technological context 

has to be examined, because an important causative 

condition could be hidden in a niche very 

far in space and time from the event. Therefore, 

every accident is examined as an ‘organizational 

accident’. Open mind investigations into such accidents 

like the disasters of NASA’s Challenger and 

Columbia, RAF’s Nimrod aircraft, or into hazar- 

dous occurrences in the atomic industry show that 

the most important preventive measure is the socalled 

‘safety culture’. By definition it is a complex 

set of values, beliefs and habits which place safety 

higher than other values or goods. 

According to professor James Reason, a 

guru of safety in the aviation industry, the main 

element of safety culture is a ‘reporting culture’, 

which means an organizational climate where 

people readily report problems and errors, even 

their own. It is impossible without a ‘just culture’ 

– an atmosphere of trust where people are 

encouraged and rewarded for providing safetyrelated 

information; and it is clear what is fair 

and acceptable behaviour. 

The next step is a ‘learning culture’ – the 

willingness and competence to draw the right 

conclusions from safety ‘news’. Of course, it is 

not enough to have ‘pure’ knowledge, one has 

to do something with it. Therefore, the last cornerstone 

of safety culture is a ‘flexible culture’ 

– the ability to adapt to new circumstances and 

demands changed by safety reforms. In other 

words, safety culture is about the idea of freedom 

of information and transparency in the 

interest of safety. Freedom means lack of fear 

on one side, and presence of resources on the 

other – the last means systems for collecting and 

formal turnover of safety information making a 

‘self-regulating’ effect. 

Safety culture is – or should be – part of a 

national or organizational culture of societies or 

groups that deal with complex, vulnerable technological 

systems. It is part of the formal safety doctrine 

of ICAO, IATA, NASA, many government 

agencies and military services around the world. 

The leaders 

The question about safety in shipping could 

also be asked in another way – do we follow the 

leaders? The answer is both yes and no. Yes, because 

the International Safety Management Code 

demands safety culture and a self regulating system. 

No, because it should be done only at the 

operator’s level and they often fail to fulfil their 

requirements. Evidently, some elements are lacking, 

especially on national and regional levels. 

Instead of asking how safe the Baltic is, we 

should ask – how fragile is safety in the Baltic? 

Obviously, we don’t know because we don’t have 

enough safety-related information. We don’t 

know how many near-misses, hazardous occurrences 

and operational errors have happened, or 

how many deviances have been normalized. We 

don’t know much about the quality of the company-run 

Safety Management Systems required 

by the ISM Code (some of them stop the flow 

of safety information!). Regional safety statistics 

published by HELCOM are incomplete and 

sometimes misleading, because national incidents 

databases are diverse, incompatible and in 

some countries information… is ‘top secret’. 

The first cornerstone of safety culture 

– the reporting culture – simply doesn’t exist 

in BSR and needs to be created. An obvious 

demand to harmonize national databases 

has already been made by researchers, but has 

been ignored by politicians and maritime administrations. 

Maybe HELCOM and national 

non-governmental organizations should start 

with voluntary reporting systems, open to everybody, 

including passengers and amateur sailors? 

Results could be unexpectedly wrong… � 

Marek Błuś 


Maritime 

Ship source marine pollution law in BSR 

To implement or not to implement? 

Photo: Port of Primorsk 

In general, the states of BSR diligently sign and implement all conventions regarding marine 

pollution. However, there is one convention still awaiting realization. 

While marine pollution 

can be categorized as 

a ship and non-ship 

source, we are only 

concerned with ship 

source pollution impacting 

the marine environment directly or 

indirectly through the atmosphere. Furthermore, 

ship source marine pollution may be 

a voluntary activity or it can be caused accidentally 

as in the case of oil spills. Where 

a ship source pollutant enters the sea from a 

voluntary act, it may occur through the deliberate 

dumping of pollutants referred to 

as ‘wastes’ in relevant convention language, 

and also ‘discharges’ incidental to the normal 

operations of a ship. 

The international regime through 

which the deliberate dumping of wastes 

is regulated is the London Convention 

of 1972 modified by its Protocol of 1996. 

While this convention was adopted under 

the auspices of the Government of the 

United Kingdom, which was originally the 

depository, this function is now executed 

by the International Maritime Organization 

(IMO). Almost all international convention 

instruments governing ship-source 


marine pollution are IMO Conventions. 

While these conventions are all global in 

scope, there is also the Helsinki Convention 

administered by the Helsinki Commission 

(HELCOM), which is of particular 

importance to the Baltic Sea region. 

International and regional conventions 

The twelve IMO Conventions which deal 

with ship-source marine pollution are introduced 

in Table 1. Their status, as of 28 February 

2010, in the nine BSR states is depicted 

in Table 2. 

The two non-IMO international conventions 

which contain provisions dealing 

with ship-source marine pollution are: 

• United Nations Convention on the Law 

of the Sea (UNCLOS), 1982 

• Basel Convention on the Control of 

Transboundary Movements of Hazardous 

Wastes and Their Disposal (Basel), 

1989 

Both these convention instruments have 

been ratified by the nine BSR states and the EU. 

There is one regional convention which 

is applicable to the Baltic Sea only, deal- 

ing with ship-source marine pollution. The 

Convention on the Protection of the Marine 

Environment of the Baltic Sea Area, 

1992 (Helsinki Convention) covers the Baltic 

Sea and the entrances to the Baltic Sea 

bounded by the parallel of latitude of the 

Skaw in Skagerrak at 57° 44.43’N, including 

the internal waters. 

National legislation 

Eight of the nine BSR states are members 

of the EU and therefore the regulation 

of shipping in these eight states is governed 

primarily by EU legislation. Article 84(2) 

of the EC Treaty of Rome 1957 as amended 

by Article 16(5) of the Single European 

Act of 1986 formed the fundamental basis 

for regulating shipping in the EU. Following 

recent institutional changes in the EU, 

starting from 1 December 2009, the wording 

of Article 80 which was previously 

84(2) of the EC Treaty and is now Article 

100 of the Treaty on the Functioning of the 

European Union (TFEU) has been changed. 

Previously it was: The Council may, acting 

by a qualified majority, decide whether, 

to what extent and by what procedure

appropriate provisions may be laid down for 

sea and air transport. The procedural provisions 

of Article 71 shall apply. 

Now the wording is: The European Parliament 

and the Council, acting in accordance 

with their ordinary legislative procedure, 

may lay down appropriate provisions 

for sea and air transport. They shall act after 

consulting the Economic and Social Committee 

and the Committee of the Regions. 

However, these changes largely concern 

procedural rules and not matters of substance. 

Thus, EU regulations can operate in 

these eight states without any legislative action 

being taken at the national level. 

Maritime 

Table 1. IMO Conventions dealing with ship-source marine pollution. 

• International Convention Relating to Intervention on the High Seas in Cases of Oil Pollution Casualties (Intervention), 1969 

• Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter (Dumping), 1972; Protocol of 1996 

• International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto (MARPOL 

73/78) 

• International Convention on Salvage (Salvage), 1989 

• International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances 

by Sea (HNS), 1996 

• International Convention on Oil Pollution Preparedness, Response and Co-operation (OPRC), 1990; HNS Protocol (OPRC-HNS Protocol), 2000 

• International Convention on Civil Liability for Oil Pollution Damage (CLC), 1992 

• International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (FUND), 1992; Supplementary 

Fund Protocol, 2003 

• International Convention on the Control of Harmful Anti-fouling Systems on Ships (AFS), 2001 

• International Convention on Civil Liability for Bunker Oil Pollution Damage (Bunkers), 2001 

• International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM), 2004 

• The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (SRC), 2009 

Table 2: Status of IMO Conventions in states of the Baltic region 

MARPOL 73/78 (Annex I/II) 

MARPOL 73/78 (Annex III) 

MARPOL 73/78 (Annex IV) 

MARPOL 73/78 (Annex V) 

MARPOL Protocol 97 (Annex VI) 

HNS coming 

The states in the Baltic region have 

ratified and implemented almost all the 

international conventions dealing with prevention, 

liability and compensation of ship source 

oil pollution. The Bunkers Convention has been 

ratified by all states in this region except Sweden. 

However, no state in this region has ratified the 

HNS Convention except Lithuania and Russia. 

As of April 2010, 14 states had ratified the HNS 

Convention but the other requirements to enable 

entry into force of the convention have not 

been met. A Protocol to the HNS Convention 

was adopted by consensus on 30 April 2010 at 

London Convention 72 

London Convention Protocol 96 

INTERVENTION Convention 69 

INTERVENTION Protocol 73 

CLC Convention 69 

CLC Protocol 76 

CLC Protocol 92 

FUND Convention 71 

FUND Protocol 76 


a Diplomatic Conference convened by IMO to 

facilitate ratification and rapid entry into force 

of the HNS Convention. 

The gap in international liability regimes with 

respect to liability and compensation for the carriage 

of hazardous and noxious substances will be 

filled with the entry into force of the HNS Protocol. 

It is submitted that the ratification and implementation 

of this Convention by states in the 

Baltic Sea region will be a welcomed addition to 

the existing liability and compensatory regimes 

with respect to ship source marine pollution. � 

Denmark x x x x x x x x x d x x d x x x x x x x x 

Estonia x x x x x x x d x x x x x x x x x 

Finland x x x x x x x x d x x d x x x x x x 

Germany x x x x x x x x x d x x d x x x x x x x x 

Latvia x x x x x x x x x x x x x x x 

Lithuania x x x x x x x x x x x x x 

Poland x x x x x x x x d x x d x x x x x x x x 

Russian Federation x x x x x x x d x x d x x x x x x 


SALVAGE Convention 89 

OPRC Convention 90 

Prof. Proshanto K. Mukherjee 

Abhinayan Basu Bal 

Sweden x x x x x x x x x d x x d x x x x x x x x 

Note: In the above table ‘x’ means accession, ratification, etc., and ‘d’ means denunciation. 

HNS Convention 96 

OPRC/HNS 2000 

BUNKERS CONVENTION 01 

AFS 2001 

BALLAST WATER 2004 

HONG KONG SRC 2009 


Maritime 

Structural changes and investments in Swedish ports 

Gothenburg has multi-hub aspirations 

The main Scandinavian gateway is at the stage of implementing adequate statutory changes for a 

full transformation into a landlord role, and is letting private operators in. 

The Port of Gothenburg handles about one-quarter of 

Swedish foreign trade, and is considered a transit point for 

many goods coming to/from the Baltic Sea and the Russian 

market. In 2008, the port’s statistics showed 43 mln 

tonnes of cargo, with 863,000 containerized and 625,000 

ro-ro units. The passenger flow was calculated at 1.9 mln 

people. Last year brought a sizable decline in the port market across the 

whole Baltic, but Gothenburg remained fairly untouched by the crisis. 

Despite the real setback in automotive handlings of -42% and a significant 

loss in ro-ro freight (-19% down to 504,000 units a year later), the 

total cargo volume decreased by only -8.8%, and containers dropped by 

-5% (to 818,000 TEU). 

Despite the market slowdown, the current SEK 1.7 bln (USD 217 

mln) investment programme which began in 2009 is being continued 

according to schedule. The port authority has undertaken dredging of 

the entry channels and enhancement of both container and ro-ro equipment 

which, once completed in 2010, are expected to double the port 

volumes within the next eight years. 

Three birds to catch 

The restructuring programme has been accepted by the current 

owner of all of the port’s facilities – Gothenburg Municipality – and full 

transformation into the landlord port (land and infrastructure owner) 

has been confirmed to take place this year. The process involves establishment 

of three independent companies dedicated for containers, roro 

and vehicles, which are to be run by external terminal operators with 

up to 25-year concession deals. With the 1st of February, 2010, the newly 

formed units – Skandia Container Terminal AB, Älvsborg Ro/Ro Terminal 

AB and Gothenburg Car Terminal AB – have started their activities 

at the existing berths and terminals and are ready to be overtaken by 

external operators. Sven Hulterström, the port’s chairman in the board 

of directors, says that the proposed division shall help the port gain access 

to external expertise, while at the same time the authority can focus 

on its strategy to develop a freight hub for the whole of Scandinavia. 

Although there have been some reservations from the unions and a few 

politicians, the port authority has already managed to press ahead the 

restructuring plan aspiring for the shipping network expansion. 

Railport Scandinavia 

In the meantime, a supplementary strategy continues with the idea of 

establishing Railport Scandinavia. Railway shift at the Port of Gothenburg 

reached 366,000 TEU in 2009 and noticed a 7% increase from the previous 

year. Within a decade, the rail shuttle system has improved from a single 

connection back in 2000 up to 26 destinations today, and the number 

of rail operators has moved from one to eight. More than 50% of the containers 

handled by the port are transported to or from the port by rail. The 

project is based on cooperation between the port authority, private rail 

operators and hauliers, as well as the Banverket public rail authority (rail 

infrastructure holder). Apart from its market-driven arguments, environmental 

concern is playing a significant role in this project, too. 


Hubbing with crude oil 

However, Gothenburg’s hub aspirations go much further than just 

for general cargo. The port has invested in developing a crude oil transshipment 

base at Tor Harbour by building a special underground cavern 

for oil storage, which has already seen its first small tankers discharging 

at the facility. The oil will then be reloaded onto ocean vessels destined 

for Asia, USA and other destinations. 

To facilitate storage, the port works together with the Scandinavian 

Tank Storage AB company on developing the necessary equipment, 

with follow-up construction of a gas recycling facility expected to be 

completed at the end of this year. The cost of these joint investments is 

on the level of SEK 200 mln (USD 27 mln). 

The investments can increase today’s Tor Harbour capacity 

of 9-10 mln tonnes per year by even up to 60%. This opportunity 

is seen as an important competitive advantage for Gothenburg 

as there are only a few ports in the region that can offer 

deep-water reloading services onto larger tonnage vessels. � 

Katarzyna Kurek 

Erasmus University Rotterdam

Photo: Port Hamburg Authority 

Baltic Transport 

b ibm i mo no tnh tlhy l-yd -ad ial y i l y c oc mo mp ap na ino ino n 

Journal 


The future of bilateral relations .................................................................................. 22 

How to do business with China .................................................................................. 24

Report 

The future of bilateral relations 


Photo: COSCO 

What’s in China for the Europeans and what’s in Europe for the Chinese? Even under severe market 

circumstances in 2009, the EU has exceeded Japan to be the third largest foreign investment origin 

in China, while China has overtaken Russia to be the third largest export market of the EU. 

There is no doubt that year 2009 was a very important and 

special year for the world economy, which declined 0.8% 

in GDP. It was the first annual decline in the past six decades. 

The world trade volume, usually with a high correlation 

to the world economy, declined even 12.3%, which 

has become the largest recession since the 1980s. 

The EU is currently China’s biggest trading partner, the biggest 

export and the second import market, while China is the second 

largest trading partner and the biggest import market for the EU. 

Let’s look into this in more detail. 

Closer to each other 

According to statistics from the EU side, bilateral trade between China 

and the EU has declined 9.2% in 2009 to EUR 296.3 bln, taking 12.9% 


of total foreign trade of the EU. Total export of the EU declined 16%, 

but export to China actually grew 4% to EUR 81.6 bln, lifting China’s 

share in the EU’s total export to 6.8%, about 0.8% higher compared to 

year 2008. In year 2009, total import of the EU declined 23%, but import 

from China didn’t decline so heavily and achieved 13%, so actually 

China’s share went up to 17.9%, about 2.1% higher than in 2008. 

Statistics from the Chinese side show that bilateral trade has reached 

USD 364.1 bln, taking about 16.5% of China’s total foreign trade volume. 

Export to the EU has reached USD 236.3 bln, taking 19.7% of China’s 

total export trade, while import from the EU has reached USD 127.8 

bln, taking 12.7% of China’s total import, which is only 0.3% less compared 

to Japan’s share. 

Although in year 2009 trade between the EU and China shrank 

in total volume, the trade relationship between both sides actually 

became even closer when we consider the role each side has played in

the counterpart’s trade and economy. What’s more, we also can see positive 

signals in improving the trade balance. The volume that China has 

imported from the EU declined 3.6%, which is rather low compared to 

the decline of 19.4% in the opposite direction. 

Growth potential implications 

Because 2009 is the very beginning of the post crisis era, it is too 

early to make any definite, long-term conclusions. Nevertheless, judging 

from what happened in year 2009, we can see that there lay great potential 

in the trade growth between China and the EU. If we take into account 

the latest development in the world economy, Chinese economy 

and China-EU trade in the first quarter of 2010, we can be more confident 

about this. There are several reasons for this. 

First reason 

The global economic environment has seen constant improvement, 

which will provide a solid base for promoting economic cooperation 

and expanding bilateral trade between China and the EU. 

In order to save the economy from deep recession, many countries (including 

both developed countries and developing countries) have adopted 

policies to stimulate economic growth and rescue their financial sector. Under 

these efforts the world economy has been walking away from the shadow 

of recession and the financial sector is also showing stabilizing trends. 

In the first quarter of 2010, the developed countries have seen 

a steady recovery. The unemployment rate in the US and Japan has 

stopped rising. The GDP of the US has grown 3.2% and consumer expenditure 

has grown by 3.6%, which is the largest growth since the first 

quarter of year 2007. The Purchasing Managers Index and the Consumer 

Confidence Index in the US, the EU and Japan have reached record 

highs since the crisis. 

The emerging economy has showed even stronger recovery. The 

GDPs of China, Singapore, South Korea and India have grown by 11.9%, 

13.1%, 7.5% and 5%, respectively. In the report entitled “Asian Development 

Outlook 2010” by the Asian Development Bank, it is said that the 

economic growth of Asia will reach 7.5% in 2010. 

Inspired by the good results from the first quarter, many institutions 

have raised their forecasts for the world economy. IMF has revised 

its forecasts twice due to unexpected strong growth. In its latest 

report, it has predicted that the global economy will reach a growth 

of 4.2% this year and a higher growth of 4.3% next year. The world 

cargo trade volume will reach a growth of 7% this year. The economy 

of the eurozone will grow 1% this year and accelerate to 1.5% next 

year, while China will reach a growth of 10% and 9.9%, respectively, in 

the coming two years. The economic recovery in both China and the 

EU will definitely promote bilateral trade. 

Second reason 

The strong recovery in the Chinese economy as well as complementarities 

between China and the EU will inject long-term vitality in the 

development of bilateral trade. 

In the first quarter of 2010, the GDP of China reached CNY 8,000 

bln (EUR 931 bln), with a growth of 11.9% compared to the same period 

of last year. The export volume has recovered to the level before the 

crisis and the import volume has already exceeded the level before the 

crisis. The partnership between China and developed economies such as 

the EU, the US and Japan has been strengthened and export to the above 

economies has grown 31%, 19.7% and 17.7%, respectively. 

Recently the Chinese Ministry of Commence released a report entitled 

“The Strategy of Developing Chinese Foreign Trade in the Post 

Report 

Crisis Era.” According to the report, Chinese foreign trade including 

both goods and services will double its current volume to USD 5,300 bln 

by year 2020, while foreign trade for goods only will reach USD 4,300 

bln. The goods export will reach USD 2,400 bln, taking a 20.1% share 

in world total export, ranking first in the world. The goods import will 

reach USD 1,900 bln, taking an 8.2% share in world total import, ranking 

second in the world. This report has shown an exciting blue print 

for China’s foreign trade development. The China-EU trade relationship 

will also benefit from this strategy. 

Third reason 

Economic cooperation between China and the EU has a promising 

future, with China-EU trade already catching up. For China, the 

EU is the largest trading partner, the largest technology introduction 

source area as well as major foreign investment origin. In the trade 

category, China-EU trade has already improved much since the beginning 

of year 2010. According to Chinese Customs, in the first quarter 

of 2010, the total trade volume between China and the EU reached 

USD 101.5 bln, with a growth of 35.1% compared to the same period 

of last year, taking up 16.4% of China’s total foreign trade. Export to 

the EU reached USD 65.4 bln, taking 20.7% of China’s total export, 

while import from the EU reached USD 36.1 bln, taking a 12% share 

of China’s total import. Compared to the same period of last year, import 

from the EU has grown 43%, while export to the EU has grown 

31%. Again import growth was much faster than export, which means 

continued improvement in the balance of trade. 

Regarding investments, concerning accumulated investment 

value, the EU has been the fourth largest foreign investment origin. 

By year 2009, investment from the EU accumulated to USD 67.7 

bln, only two billion US dollars less than the third origin country 

Japan. Annual investment from the EU reached USD 5.9 bln in year 

2009, making the EU the third largest origin. In China, the EU origin 

companies are major players among the foreign-funded enterprises, 

contributing much to the country’s economy. On the other hand, 

China’s foreign investment to the EU started late. Although the total 

amount seems relatively small, China has become increasingly active 

in recent years. By the end of 2009, investments from China to the 

EU accumulated to USD 3.67 bln, while in 2009 alone the investment 

grew 80.8% to USD 470 mln. 

As far as technological cooperation is concerned, in 2009 China 

and EU countries signed 2,772 contracts for technological introduction 

projects of a total value of USD 6.43 bln, taking a 30% share in China’s 

total technological introduction in terms of contract value. The technological 

introductions mainly concentrated on train transport, electronic 

equipment and new energy. China has put much emphasis on developing 

a green economy, low-carbon economy as well as circular economy 

– and in these areas the EU enjoys the leading position. All in all, there 

is a lot of room for technological cooperation. 

Looking into the future, in the post crisis era, due to the constant 

improvement of the global economy, strong recovery of the Chinese 

economy, comprehensive complementarities between the two economies 

and great room for technological cooperation, trade development 

between China and the EU has a promising future. For the time being, 

some EU countries are facing difficult times, but we strongly believe 

that it won’t bring fundamental changes to the prospects of trading relationship 

between China and the EU in the long-term. We see there are 

more opportunities lying ahead than challenges. Hopefully, economic 

cooperation between China and the EU will bear more fruitful results 

in the future and both sides will benefit from win-win cooperation. � 

COSCO R&D 


Report 

Cultural differences 

How to do business with China 

Who should sit in the middle of the table during 

negotiations and when should one keep a 

poker face? We’re introducing some tools and 

strategies which should be borne in mind when 

conducting business in China. 

China’s ethical system involves respect for superiors, sincerity 

and courtesy. Therefore, it is important to show 

respect to the person who has a superior position. Age, 

generally, gives a person more respect and a higher status 

than someone who is younger. Using a person’s first 

name after initial introduction is considered rude. 

It is also important to remember that Chinese names appear in a 

different order than Western names. Each person has, in this order, a 

family or generational name and a first name. For business purposes, 

it is traditionally acceptable to call a Chinese person by his or her surname, 

together with a title, such as “Director Wang” or “Chairman 

Zhao”. Even staff members are usually addressed as “Lao Wang” (“Lao” 

literally means “old”, and shows respect to this person) or “Xiao Zhao” 

(“Xiao” literally means “young, junior”, but it is still a proper and polite 

form). Obviously, people are also addressed by adding “mister” or 

“miss” in front of their surnames, which is a universal form of addressing 

someone, as it sounds quite formal. 

Shaking hands 

In China, meetings start by shaking hands and a slight nod of the 

head. Be sure not to be overly vigorous when shaking hands as the Chinese 

will interpret this as aggressive. Chinese usually shake hands very 

lightly instead of taking the hand firmly and forcefully pumping it. Don’t 

be surprised if a handshake lasts a few seconds longer than expected. It 

may last up to 10 seconds! While shaking hands, Chinese will greet each 

other by asking questions, such as “How’s business going?”, “How have 

you been lately?”, or “Is everything going smoothly?” Traditional greetings 

do not include hugs and kisses on cheeks. These signs of affection 

are only used in intimate relationships, but are becoming a new and 

fashionable way for young people to greet each other. 

Maintaining one’s face 

The most important for Chinese people is the notion of “maintaining 

one’s face”. This concept is roughly translated into “respect”, 

“honour”, or “good reputation”. One must learn the subtleties of the 

concept and understand the possible impact they have when doing 

business in China. In Chinese business culture, a person’s reputation 

and social status have great meaning for them. Causing embarrassment 

or losing one’s composure can be obstacles for business negotiations, 

even if somebody does it unintentionally. Thus, it is wise 

to be very careful not to cause someone to “lose face” by insulting, 

criticizing or embarrassing him or her in front of others, or making 

improper jokes about the person if you do not have a very close relationship 

with them. Unlike Westerners, Chinese people can become 

easily embarrassed by various things, for example, by addressing 

someone using a less superior title or position. 


Decision-makers 

China is a highly hierarchical society. Hierarchy functions in various 

aspects of life as well as in business culture. For instance, the Chinese will 

assume that the first person to enter the room is the head of a delegation. 

The person from an organization leading the meeting may not be the decision-maker. 

Some executives prefer only to sign the agreement or the 

contract and let their subordinates work out the details and represent the 

whole company during the first few meetings. When all the members of the 

delegation sit at a table, the main negotiators always sit in the middle, the 

translator or secondary in the seat beside them, as is shown in Picture 1. 

The importance of GuanXi 

GuanXi (“relationship”) is an important element in achieving 

successful business in China. Because Chinese people may rely on 

their subjective feelings and personal experience when making a decision 

or judgment, good relationships can bring a positive effect. 

They prefer to establish a strong relationship before closing a deal. 

Top management must learn to create a close relationship with their 

local counterparts. This not only helps them to understand the Chinese 

domestic market, but also creates avenues for help in times of 

trouble or in need of assistance. Building strong relationships with 

business partners can aid in mitigating strategic and operational 

risks. Governmental procedures for foreign investors in China are 

extremely complicated, thus if one is unfamiliar with the procedures, 

one will delay one’s business opportunities. Hence, it is vital to build 

good relationships with government officials, because the Chinese 

government plays an important role in influencing market movement 

and administering foreign investments. A strong relationship 

can help to reduce red tape and achieve local authorisation. 

It is also important to be patient and never show anger or frustration. 

Practise your best “poker face” before negotiating with the Chinese. 

Decisions will often take a long time either because there is a lack 

of urgency, because simultaneous negotiations are taking place with 

competitors or because the decision-makers are not confident enough. 

Giving business gifts 

Business gifts are important and express friendship and symbolise 

hopes for success. But expensive gifts can cause personal embarrassment 

and political or social awkwardness. When giving business gifts, both 

hands give and both hands receive, in order to show respect. It is proper 

to bring a gift for a business meeting or a social event – but don’t be 

surprised when the Chinese decline the gift several times before finally 

accepting it, in order not to show greediness. Remember to wrap the gift 

avoiding using white or black colours, as these colours are considered 

colours for funerals and mourning. To be safe, wrapped gifts should be 

in gold or red colours. Chinese will not open the gift in front of their 

guests but will express their gratitude once the gift has been accepted. 

Numbers 

Just like people all over the world, people in China traditionally 

associate luck with various things and numbers. If you remember

this, you will gain an understanding of Chinese manners and customs 

and will not embarrass yourself or your Chinese friends. 

Number eight, for instance, is considered one of the “luckiest” 

numbers in China; it is viewed as such an auspicious number that 

even being assigned a telephone number with several eights is considered 

very lucky. Try to avoid number 4, as it is phonetically associated 

with “death” in Chinese, just like Westerners don’t like the 

number 13. � 

Yan Wei 

Gdańsk University Lecturer of Chinese 

Picture 1. During negotiations with Chinese people. 

Visit us at the TOC Europe 2010, June 8-10, Booth D14, Valencia, Spain. 

1131 SW Klickitat Way Seattle, WA 98134 tel [1]206.382.4470 email sales@tideworks.com web www.tideworks.com 

It’s time to expect more. 

Report 

Do’s: 

• Be aware of all favours done for you and prepare to respond 

in kind 

• Establish a trusting personal relationship with business 

partners 

• Make sure one side of the business card has been translated 

into Chinese and try to print the Chinese characters using 

gold ink as this is an auspicious colour 

• Your body posture should always be formal and attentive as 

this shows you have self-control and are worthy of respect 

• Schedule meetings in advance and forward some literature 

about your company in advance so the Chinese can become 

familiar with it before your meeting 

• Be punctual. Ensure you are early as late arrivals are seen as 

an insult 

Don’ts: 

• Avoid unintentional criticism of others 

• Do not make jokes or poke fun at someone, even if it is in 

good fun 

• Do not mistake a leader or decision-maker for someone 

who is not 

• When giving business gifts, never give cash 

• Do not schedule business meetings during national 

holidays, especially during the Chinese New Year 

The days of making an important 

decision with a game of Ro Sham Bo 

may be long gone, but at Tideworks, 

we make your terminal operating 

system decision feel just that simple. 

Whether you’re handling containers, 

rolling stock, boxes of fresh fruit, or 

everything in between, with our 

operations-driven software systems 

and around-the-clock support 

service, we give you the solution 

you need to manage your terminal 

with ease... at a fraction of the cost. 

Call us at [1] 206.382.4470 

to discover how your systems 

decisions can be this easy. 


European Commission’s perspective on Motorways of the Sea 


Towards an integrated transport system in the Baltic Sea Region 

Reviewing the White Paper 

Photo: JLogan 

Even though the Baltic Sea lies within the scope of EU’s highest priority, six attempts to form 

the Motorways of the Sea here have been declined. Today, just before the revision of the White 

Paper and ahead of the biggest MoS budget in history, TransBaltic puts the MoS issue on the 

agenda, giving you some hints how the EC sees the MoS today and in future. 

So far, there are only three 

Motorways of the Sea operating 

on the Baltic, all linking 

Sweden with the continent. 

The two existing inner-Baltic 

MoS, Karlskrona-Gdynia 

and Trelleborg-Sassnitz, are located on the 

North-South axis, with the first one being 

operated by Stena Line and the latter by 

Scandlines. The only West-East route between 

Karlshamn and Klaipėda is operated 

by DFDS Lisco. 

Until now, intermodality has been the key 

principle of the MoS concept, with involvement 

of two ports from two countries, a maritime 

operator and hinterland transport companies 

adding to the project’s value. The EU 

even likes to see broader consortia of partners, 

with terminal operators, logistics companies 

and ship brokers expected to take part 

in the project. A strong focus is usually given 

to investments in infrastructure, in order to 

overcome or prevent bottlenecks. 

Picture of today 

As Marc Vanderhaegen, the principal administrator 

of the EC’s Motorways of the Seas 

Programme puts it, the main goal of the MoS 

is to reduce road congestion and improve accessibility 

of the regions, involving correct 

zoom on the TEN-T priority network. The 

perfect candidate to receive funding should 

be a viable business in itself, focused predominantly 

on freight traffic and delivering 

regular, frequent and high-quality services 

that allow a concentration of freight flows 

into door-to-door logistics chains. There is a 

need for commitment that the services will be 

maintained after the project period. 

Generally speaking, the EC is open to 

support all project users in their infrastructure 

investments and purchase of the necessary 

equipment. From the ports/terminals 

perspective, these can be high water protection 

devices (like dikes, breakwaters or locks); 

lights, buoys and beacons; ramps and jetties; 

as well as operational facilities for loading 

units, for drivers, offshore electricity, waste 

handling, and terminal handling equipment. 

However, the EC is eager to go further and 

co-fund both land and sea access to the port, 

including links to the TEN-T or national land 

transport networks in the hinterland, as well 

as waterways/canals which shorten the sea 

routes. The applicants should not forget about 

the hinterland part of the project. A simple 

port to port link is certainly not enough to 

receive final approval. 

An important factor for the evaluators is 

the efficiency of MoS services based on modal 

shift calculations until 2025 along with the reduction 

of the external costs to society. Applicants 

have to go through the tedious process 

of calculating costs 15 years ahead and it 

needs to be done well in a coherent manner. 

Luckily, the calculation can be done using the 

existing Marco Polo calculator. Meanwhile, 

integration of IT systems or application of a 

single window concept becomes increasingly


important. It is welcome when the project 

aims at implementing electronic logistics 

management systems, improves safety and 

security, and/or simplifies administration 

and customs procedures. Shipping can also 

receive co-funding for vessels and vessel 

equipment. 

The total TEN-T budget dedicated to 

Motorways of the Sea has significantly been 

rising each year, from EUR 20 mln for 2008, 

up to 85 mln for 2010, and as much as 100 

mln for 2011. However, this is not going to 

last forever, and the amounts designated for 

years 2012-13 are just EUR 50 mln and 25 

mln. The TEN-T MoS co-financing in 2010 

allows 20% funding for infrastructure works 

and facilities (implementation projects), 30% 

for crossborder sections, 50% for pilot actions 

and studies, and finally 30% for the start-up 

aid. Combining rates within the same project 

is possible, but you cannot cumulate the received 

support with other EU co-financing 

instruments for the same actions. 

Revisions and changes 

Paweł Stelmaszczyk, head of logistics, comodality, 

inland waterways, MoS & Marco Polo 

unit at the European Commission Directorate 

General for Energy and Transport, comments 

that the Motorways of the Sea remain at the 

top of the EC agenda, being an integral part of 

the future integrated European transport system, 

and thus also lies at the heart of the White 

Paper. This means that as the WP is now being 

reviewed and its new version is most likely to 

be adopted by the end of the year, the Commission 

is also going through major issues 

relevant to MoS. This also includes the future 

of the Marco Polo programme, which – as Stelmaszczyk 

admits – has not been an astounding 

success. It is only last year that MP attracted 

enough fundable projects, so that all funds 

were allocated, and, for the first time ever, there 

was a reserve list. This year, however, the EC 

is expecting the same situation. The Commission 

is now analyzing the success factors and 

wonders if it is due to successful marketing, 

increasing awareness, or rather changes that 

were introduced last year (lowered thresholds 

and doubled funding) which made the application 

process easier, that caused raised interest 

on the market. For sure there might still be too 

little knowledge about the application process 

and the general mood of too strict bureaucracy. 

The Commission also holds the position 

that there is a need to refocus the funding priorities 

for MoS, and puts forward several important 

questions that currently assist revision 

of the TEN-T, Marco Polo and MoS policies. 

The question is whether the modal shift should 

remain the key objective and if the MoS should 

follow/link the core TEN-T network. Then, if 

we should continue the bottom-up approach 

and if the top-down path is only really a definition, 

or maybe we should look at top-down 

plus bottom-up at the same time. 

There is another challenge of how to 

overcome funding fragmentation, and the 

question of whether we should stick to one 

application for each MoS project, or one single 

fund for all the actions – infrastructure, 

equipment, studies, services, pilot actions, 

etc. The EC, in its future White Paper, is likely 

to propose establishment and management 

of the so-called European Transport Infrastructure 

Plan and now investigates how it 

will relate to the cohesion funds and regional 

development policies. The so-called “new 

EU Member States” (like Poland, Lithuania, 

Latvia and Estonia) which are beneficiaries 

of cohesion and regional development funding, 

are afraid that this future transport fund 

will take away money from the cohesion and 

regional development policies. 

Another thing is if we really need a special 

regime for state aid (there have been 

more and more complaints about this), and if 

we can benefit more from EIB involvement. 

Therefore, the EC is now going through more 

innovative financing mechanisms talking to 

commercial banks in different countries, in 

order to find a way to provide direct funding 

or co-funding through the EIB for MoS. 

Hopefully, these concerns will make MoS 

more market-driven, and application criteria 

clearer. “It’s very unique that all three 

MoS Policy Review 

– next steps: 

• TEN-T, Marco Polo, MoS policy 

evaluation and impact assessment: 

ongoing 

• Saragossa Conference (8-9 June 2010) 

• MoS Conference (September 2010) 

• Marco Polo Stakeholder Conference 

(tba) 

• New Transport Policy White Paper 

(end of 2010) 

• Commission proposal on TEN-T 

Guidelines (Spring 2011) 

• Commission document on Motorways 

of the Sea (tba) 

• Commission proposal on Marco Polo 

(mid-2011) 

policies are being revised at the same time. 

It gives us a chance to synchronise these 

policies and funding instruments,” comments 

Stelmaszczyk, meanwhile encouraging 

business representatives to come up 

with innovative ideas. Also, to make things 

5/2009 | Baltic Transport Journal | 3 

easier and to save potential applicants from 

falling into the hands of some consultants 

that “specialise” in getting EU funds, the 

EC has brought together two agencies and 

created the MoS One Stop Help Desk, available 

at www. mos-helpdesk.eu. � 

Piotr Trusiewicz 




How the Karlshamn-Klaipėda Motorway of the Sea was formed 

Better to be well prepared 

Photo: Port of Klaipėda 

Following a case study of the Karlshamn-Klaipėda connection, TransBaltic investigates what is 

crucial to establish a successful MoS master plan. 

In spring 2008, the Ports of Karlshamn 

and Klaipėda jointly submitted 

an application for MoS, set to 

enhance capacity of unitised goods 

in the corridor. The project got the 

European Commission’s approval 

in 2009 and will last until the end of 2013, 

with its major goal to raise the intermodal 

share of cargo transported in this corridor 

to 56% in 2015, and ultimately 71% in 2025 

(last year the result amounted to just 18%). 

Currently, the line is served by two vessels 

and offers six departures weekly. Even 

though DFDS is not among the project’s 

implementing bodies, the company has also 

contributed to capacity growth implementing 

the new M/v Lisco Optima vessel to the 

route last year. 

The total cost of the project is EUR 26 

mln, out of which 20% is financed by the 

European Union. It involves numerous port 

infrastructure and rail investments – mostly 

on the Swedish side. Apparently however, 

the significant imparity in funds allocation 

(EUR 24 mln going to Sweden and only two 

million to Lithuania) has not been a problematic 

issue for the Commission. 

Karlshamn taking the lead 

For many years forest products, petroleum 

and bulk cargo was the basis for the 

Port of Karlshamn’s operations. The port 

opened its first ro-pax connection (the one 

by DFDS Lisco) in 2001 and its utilization 

steadily grew by 15-20% each year until it 

reached the level of 50,000 freight units in 

2008 (plus private cars and passengers). Today, 

the volumes are down because of market 

conditions, but Karlshamn is proud to 

feature regular links to Lithuania, Germany 

and Russia, anyway. 

Karlshamn applied to the MoS project on 

the basis of its development plan from 1997 

with spatial expansion and reconstruction 

works not only planned within the port itself, 

but also in the surrounding area as 

well as located further on in the hinterland. 

Apart from the new entrance to the ro-ro 

terminal and new handling equipment (a 

new crane with higher container capacity, 

upgrading existing ramps, purchasing a new 

reachstacker, etc.), the application included 

increasing the efficiency and capacity for 

trains together with the renovation and 

electrification of the port rail track. This 

should allow block trains to connect the 

port directly with the Nordic Triangle by 

Blekinge coastal railway incorporated and 

standardised with the national rail system. 

As Anders Wiberg, Manager of Strategic Development 

in the Port of Karlshamn reveals, 

integration with hinterland investments was 

important because there had been practically 

no transit traffic in south-eastern Sweden 

before; therefore, the expected freight 

increase could have a significant effect on 

roads. But – as the Port of Karlshamn is located 

outside of the city, the traffic increase 

should not influence the living standard in 

the area. It is again one of the crucial things 

in the project. Today, the rail shunting yard 

is still located within the municipality, so the 

port authorities intend to build a completely 

new facility together with a combined terminal 

and logistics centre in place of the old 

stone quarry located close to the port area. 

All this should double Karlshamn’s container 

handling capacity to 40,000 units per 

year and allow the terminal to manage heavy 

cargo and high shaft weight. Its location will 

also improve the goods flow inside the port


area and the goods access to the quay. The 

new combi-terminal will have a surface area 

of 30,000 m² and will be built in connection 

to the shunting yard. The intermodal facility 

will be accessible by road and rail and also 

connected to the ferry terminal. Meanwhile 

the project includes a new railway connection, 

the “missing link” between Karlshamn 

and Olofström – Sydostlänken. By 2020, 

Sydostlänken should transport 75,000 units, 

according to a feasibility study made on behalf 

of Blekinge Region. 

Authorities in the Port of Klaipėda applied 

for building a new hydraulic ramp and 

buying a dredging pump, but the latter appeared 

as not eligible in the EC’s final decision. 

Meanwhile, there are no funded activities 

for the line operator involved. 

Success factors 

According to the EC’s external experts’ 

evaluation, the Klaipėda-Karlshamn MoS 

project is well integrated in the overall 

TEN-T network and is aimed at improving 

competitiveness of sea transportation contra 

roads, meanwhile trying to build an intermodal 

connection with rail. All these lead 

to an increase in traffic volumes, which is 

expected to bring strong social and environmental 

benefits to the regional economy, 

releasing economic values significantly 

larger than the investments costs. The new 

link improves cohesion and accessibility 

between the two regions and further equalize 

the east-west gap of BSR. What is more, 

realization of the project has not been perceived 

as very complex. “Before applying to 

the MoS project we were previously involved 

Photo: DFDS LISCO 

in numerous other regional initiatives, like 

the Baltic Gateway or East West Transport 

Corridor,” explains Wiberg. “We made 

various feasibility studies, but most of all 

we have learned to know each other well 

with our partners on the Eastern side of the 

Baltic, because it really helps to have good 

friends in such activities,” he says. 

Drawbacks and doubts 

Arturas Drungilas, Marketing and Administration 

Director at Klaipėda State 

Seaport Authority finds the reason for such 

a minor Lithuanian role in the project in 

other, more favourable financing possibilities 

available to the new EU Member States 

(south-eastern part of the Baltic). For example, 

the Port of Klaipėda is now starting 

to build a new ro/pax terminal with two 

general cargo warehouses (4,000 m 2 and 

7,000 m 2 ) which should be ready by 2012, 

and even though it would nicely suit the 

MoS concept, its construction is financed 

from EU cohesion funds. 

Another problem stems from the long 

application process to the final decision that 

distracts companies from seeking funds in 

the first place. Indeed, it took Karlshamn- 

Klaipėda almost one year to receive the funding 

decision from the Commission. Also, the 

shortsea network on the Baltic is so dense 

that it is hardly possible to add any new connection 

without distracting the competition. 

BTJ’s ro-ro/ferry market review from 

October last year (see BTJ 5/2009) showed 

124 vessels sailing in the Baltic Sea by 17 operators. 

Just from Klaipėda alone, there are 

6 ro-ro lines that altogether call at 25 ports 

in 18 countries. “You can find a similar network 

from all major Baltic ro-ro ports and it 

is hard to find a shipping line partner fitting 

the project,” he continues. His general feeling 

about the MoS procedures is that they 

apply too many constraints on the project 

partners and give insufficient support, not 

only concerning the relatively small percentage 

of investment payback. “We would most 

likely not have this MoS if it was not thanks 

to the Swedish efforts,” he admits, being 

rather reluctant about his company potentially 

signing another MoS project under the 

currently applying conditions. 

Karlshamn’s Strategic Development Manager 

also has his doubts in the administration 

procedures that require a lot of resources, and 

are not at all, or at least poorly funded in the 

project. For example, “once you receive a positive 

decision, you need to prepare a Strategic 

Action Plan and describe everything once 

again, in even more detail,” he stresses. Then 

every year the beneficiaries are asked to report 

what was completed (or not) according 

to the time schedule, what costs they have incurred, 

what communications activities have 

been undertaken, etc. 

5/2009 | Baltic Transport Journal | 3 

“You must know exactly what you want 

to do, and you should be well prepared, as 

there are many assessment questions in the 

application process, and the project simply 

needs to be mature,” both Wiberg and 

Drungilas agree. Also, all activities need to 

be in line with the EU’s environmental strategy 

so environmental impact assessments 

are a particularly important thing to do before 

you apply. � 

Piotr Trusiewicz 


BPO consults 

on MoS concept 

BPO & TransBaltic joint seminar in Sopot (PL), 

11 th May 2010 

Photo: BPO 

In November 2009, the European Commission announced the call for 

proposals concerning Motorways of the Sea and secured EUR 310 

mln for such projects. In the previous call, there were 3 Baltic projects 

(out of 9 delivered at the national level) accepted by the EC for financing. 

These projects included: Baltic-Link MoS (Gdynia-Karlskrona, 

High Quality Rail and Intermodal Nordic Corridor Königslinie Trelleborg- 

Sassnitz, and the Klaipėda-Karlshamn link). 

The MoS policy in the Baltic has not been successful enough in past 

years. A few barriers were mentioned during the seminar, including too 

bureaucratic procedures, unclear criteria (e.g. proof of modal shift). Representatives 

from the successful projects underlined two main success factors, 

namely a strong partnership and very well prepared documentation. 

“There is a clear unbalanced picture of MoS projects between the Baltic 

region and other regions in Europe. BPO wishes to make sure that the 

money spent on Baltic ports is evenly spread throughout the EU. We need 

to know where the problem is and we are glad that the EC is highly interested 

in our consultation work,” said Bogdan Ołdakowski, Secretary General 

of BPO. 

BPO will soon present a report on barriers and challenges of the MoS 

policy, which will be presented to the European Commission. It well fits 

with the revision of the EC TEN-T and MoS policy, which should be finalised 

by Autumn 2010. 

The seminar was organised by BPO within the TransBaltic project. 

TransBaltic, as one of few transnational projects so far, has been granted 

a strategic status by the authorities of the Baltic Sea Region Programme 

2007-2013. In this way the decision-makers have acknowledged the role of 

TransBaltic in fostering sustainable development of the region, the project’s 

wide geographical coverage, deep focus on implementation and strong political 

backup at the national level. TransBaltic is led by Region Skåne and 

lasts from 1 June 2009 to 31 December 2012. You can read more about this 

project in TransBaltic’s newsletter in this issue of BTJ. 

Presentations from the seminar can be found on the BPO website: 

www.bpoports.com. � 


Baltic Ports Conference 

Baltic-Asian Transit & Port sector 

in change 

and BPO General Assembly 2010 

9-10 th September 2010 

Tallink Spa & Conference Hotel, Tallinn, Estonia 

BPO and Port of Tallinn are pleased to invite 

representatives of seaports, terminals, shipping 

lines and research institutions to join the Baltic 

Ports Conference on 9-10 th September in Tallinn 

this year. The main theme of the meeting will 

be Baltic-Asian transit and its development 

potential. The current economic situation of 

ports, as well as how they will face changes and 

challenges after the economic crisis, will be 

covered. Please do not miss this opportunity to 

join the interesting debate and book the date 

in your calendars now. 

Photo: www.visitestonia.com

Port of Kemi 

Mines will keep us developing 

Interview with Port Director Reijo Viitala and Project Manager Hannu Tikkala, Port of Kemi 

Photo: ˝Port of Kemi 

� How does the Port of Kemi take advantage 

of its location? 

Port of Kemi is the northernmost universal port 

in the European Union. It accepts all cargo, regardless 

of ownerships, origin or type. The location 

is an advantage for cargo owners, because 

the cheapest transport mode – sea transport – is 

maximally available via the port. 

Also significant is the port’s connection to the 

mining industry in Lapland. It has made significant 

exploration investments within the 

last years, which have given positive results. 

Several mines were launched and more are 

coming. Mining activity comprises not only 

exporting, but also importing of various equipment, 

chemicals, etc., for mines. Port of Kemi 

serves all these mines since our location is the 

nearest to mines in the High North – that is in 

the most northern areas of Norway, Sweden, 

Finland and north-western Russia. Speaking 

of Russia, we’re in a pole position considering 

cargo transportation to Murmansk region; we 

can serve transit deliveries from Continental 

Europe to Murmansk within 5 days. 

� What is the specialization of the port? In 

which directions does it want to develop? 

At the moment Port of Kemi is specialized in 

export and import of forest industry products 

from and to northern Finland as well as Sweden 

and Norway. 

The main destinations of our cargo are the 

Ports of Lübeck and Gothenburg, both 

achieving 3 ship calls per week, regular and 

scheduled lines. TransLumi Line vessels are 

loaded with exceptionally large SECU containers. 

However, the multifunctional vessels 

can transport standard containers, project 

cargo, etc., to inter alia Swedish Gällivare and 

Kittilä goldmine in Lapland. 

All in all, the Port of Kemi targets on diversification 

by building infrastructure for the 

mining industry of the High North. Bulk cargo 

transportation is expanding and will magnify 

the port’s cargo volumes in tonnes. 

� Port of Kemi is the 13 th Finnish port in 

terms of throughput/capacity. Is the port 

doing anything to acquire a higher position? 

In summer 2009, we launched the work of an 

Environmental Impact Assessment (EIA) and 

general spatial planning until the year 2025. 

According to the plan, new land areas of the 

port will be exploited and the cargo volume 

will rise from its existing 2.5 mln tonnes per 

year to at least up to 7 mln tonnes by 2015. 

The main customer for the new bulk harbour 

will be the mining company Northland Resources 

that has iron ore deposits in the Pajala- 

Kolari area in Lapland. Their so-called Kaunisvaara 

project will yield up and transport via 

Port of Kemi annually around 5 tonnes of iron 

concentrate. 

The port is also ready to welcome products 

from other mines in Lapland. Kevitsa and 

Sokli mines are expected to become customers 

of Port of Kemi. 

� How will the project of Pajala-Kolari iron 

concentrate affect the Port of Kemi? 

Kemi Bulk Terminal company will be responsible 

for terminal operations of iron ore 

handling in the port. The company will build 

terminal and warehousing buildings as well 

as conveyors and loading systems. Investment 

costs are around EUR 90 mln. 

At the first stage, Port of Kemi will build one 

new berth, dredge the pool basin (1.5 mln m 3 ) 

and build necessary road and railway connections 

in the port area. Costs are estimated to be 

EUR 40 mln. Furthermore, Finnish Transport 

Agency will be responsible for deepening the 

sea fairway from its authorised existing 10 m 

depth to 12 m. 

� Are there other logistics undertakings taking 

place in the port area? 

At the moment we have sufficient industrial 

sites next to the port area. This so-called 

Sarana industrial area will soon be primarily 

booked by large scale industry and by SMEs 

of logistics, maintenance and other services 

that follow close to their main clients. For 

instance, Kemi Bulk Terminal company has 

reserved a site for 500 m warehouse and one 

kilometre conveyor line. 

Moreover, an undertaking worth EUR 1 bln is 

under study – a bioenergy plant, which would 

require road transportation of 2 mln tonnes of 

raw material and pipeline investments to deliver 

the final products. The 10 km long pipelines 

could increase the cargo volume in Port 

of Kemi by more than 0.5 mln tonnes/year. 

Terminal investments in the port area would 

also be substantial. 

Finland’s largest windmill park of 35 MW is 

located at the sea area of the port. Therefore, 

realization of extension proposals would mean 

more project cargo and additional activity in 

the Port of Kemi. � 

Photo: ˝Port of Kemi 

Martyna Bildziukiewicz 

BALTIC PORTS ORGANIZATION • Secretariat Office – Actia Forum Ltd. 

ul. Pułaskiego 8, 81-368 Gdynia, POLAND, ph.: +48 58 627 24 67, fax: +48 58 627 24 27 

e-mail: bpo.office@actiaforum.pl, bpo.sg@actiaforum.pl, http://www.bpoports.com 


Maritime 

DNV starts up 3D virtual training center 

Two openings, three dimensions 

Photo: DNV 

After two and a half years of software development, DNV Poland 

has launched the industry’s first interactive 3D survey simulator, 

specifically designed to improve and accelerate training of DNV 

surveyors. This revolutionary training solution will also contribute to 

practical training offered externally. 

A celebration 

that gathered a 

sizeable portion of Poland’s 

maritime industry’s top managerial 

staff and ship technology 

specialists on May 

7 th , 2010 in the new premises 

of Det Norske Veritas Poland, related to real 

building and virtual ships helping to improve 

safety of the real ones. 

First of all a virtual ribbon was cut by Enok 

Nygaard, the Norwegian Ambassador in Poland, 

to celebrate the grand opening of the first DNV 

Virtual Reality Training Center – a unique place 

that has no equivalent in the market. 

The main purpose of creating the Virtual 

Reality Training Center was to work out a concept 

of a simulator prototype for educating 

marine technical inspectors using three-dimensional 

models and visualization in stereoscopy 

technology (3D impression). The project was 

supported by the EU Innovation Fund as technology 

of the future. The establishment of the 

Virtual Reality Training Center was largely possible 

owing to the availability of young, skilled 

and highly educated engineers, especially naval 

architects and IT specialists in Poland. 

The Survey Simulator (SuSi) is a solution 

for everyday use for professionals who need to 

know everything about the vessel before they 

come on board. Inspections and technical assessments 

require a long and thorough training 


process in order to prepare new inspectors for 

the variety of conditions they could possibly 

work in. Such a learning process may last years. 

Practical onboard training is dependent on access 

to vessels of a certain type or particular 

moments of the vessel’s life phase. Additionally, 

experienced tutors are not always available. It is 

assumed that the time needed to prepare new 

surveyors, superintendents and inspectors for 

unaided work can be shortened from an average 

of five years to even one. This is a revolution. 

Attractive and unique – insists DNV. 

DNV Academy is a modern training center 

of 400 m 2 , located in Gdynia, in Poland’s first 

Photo: DNV 

“Green Building” outside of Warsaw, built to 

comply with voluntary standards recommended 

by the European Union’s GreenBuilding 

Programme. 

Apart from training maritime professionals, 

DNV Academy offers conference 

room rental. As a 3D rooms’ provider, DNV 

Academy Gdynia is the only competitor to 

local cinemas. DNV Academy provides first 

class training premises equipped with highly 

professional appliances destined for trainings 

in stereoscopy. 

The building in which virtual reality ship 

models are worked out and used as training 

ranges for surveyors and other specialists is 

100% real, but it is so modern and “smart” that 

it almost seems unreal. 

Built to comply with voluntary standards 

recommended by the European Union’s Green- 

Building Programme, DNV Poland’s expansive 

new offices in Gdynia officially opened on the 

same day – along with its DNV Academy. The 

building is about 4,500 m 2 and has facilities to 

manage training programmes. 

Henrik Bach, Area Manager for Sweden 

and Poland says that the decision to invest in 

the green technologies that make the building 

energy efficient was driven by a number of issues. 

“As an organisation devoted to managing 

environmental risk, we have to demonstrate our 

commitment to reducing the environmental 

impact of our own operations,” he says. “In addition 

to helping us cut costs over the long-term, 

this building sends a strong message about our 

institutional commitment to this issue to both 

existing and potential customers.” � 

PioSta, rel

Focus 

Photo: Keith Foley 

Shortsea Shipping on the Baltic 

More than hype? 

In the mid-1990s the European Commission launched the term “shortsea shipping” (SSS), being the 

transport of cargo and passengers, using the coastal waters throughout Europe, including the Mediterranean 

Sea (North Africa), the Black Sea and the Baltic Sea. This meant a much wider geographical 

spectrum than the previous “coastal navigation”. 

Also, the limitation of 

“small” vessels was abandoned. 

In certain countries 

sea-river vessels deliver 

cargo directly to the customer’s 

premises on rivers 

and canals. The European Commission’s aim is 

that shortsea shipping contributes to solving the 

congestion problem on European roads. 

Promoting Shortsea Shipping 

After setting up contact points in the administration 

(Focal Points), the Commission 

was stimulating the establishment of shortsea 

promotion centres. The first one was set up in 

the Netherlands (1997), followed by Flanders/ 

Belgium one year later. The promotion centres 

are the natural contact office for market 

players. In 2000, the European Shortsea Network 

was launched, an informal network of 21 

shortsea promotion centres spread across Europe. 

This network connects 21 local networks 

and offers a lot of expertise to the market. 

During the promotion of shortsea shipping 

the focus is on giving adequate information to 

target groups: shippers, forwarders, logistics 

companies, roadhauliers, etc. As the promotion 

centres are neutral and non-commercial 

entities, they use mainly “best practices” to 

approach the market players and use the extensive 

network to answer the raised questions. 

The Baltic region is one of the main target 

areas for SSS: the Baltic Sea and the number of 

well equipped ports allow to set up frequent, 

reliable shortsea liner services. For certain 

countries like Estonia, Lithuania and Latvia 

a solution has to be found for an imbalance 

between the import and export cargo flow: a 

triangle service can offer possibilities. Different 

types of ships are available for a variety of 

cargo goods with the greatest focus on ro-ro 

vessels. Local winter circumstances are met by 

continued on page 34 


Focus 

Photo: Stena Line 

ice-classed vessels, guaranteeing the shippers 

that their cargo is in good hands. 

Belgian maritime companies have been 

investing for some years already in the Baltic 

region: Ahlers Group (St. Petersburg), Group 

H. Essers (near Copenhagen), Katoen Natie 

(Trollhättan/Sweden), Tabaknatie (Gdynia), 

Noord Natie (Ventspils), Fast Lines (Szczecin), 

Sea-Invest (Gdańsk), and more. 

SSS in the crisis 

In recent years, a lot of shipowners have 

strengthened their services in and into the 

Baltic Sea by increasing capacity and frequency. 

The economic crisis that started in 

the last months of 2008 hit shortsea shipping 

activities due to decreasing cargo volumes. 

Although all countries were faced with smaller 

cargo flows, especially the traffic between 

Flanders and Finland as well as Flanders and 

Russia dropped dramatically. 

In the first quarter 2010 there have been 

some signs of slight recovery in the Baltic region 

as far as cargo flows are concerned, also 

from the Russian market. This leads to some 

reshuffling within shortsea services, even with 

some extra capacity or sailing. Analysing the 

shortsea statistics of the last three years, Poland 

has survived the crisis quite well. 

34 | Baltic Transport Journal | 3/2010 3/2009 

Motorways of the Sea 

Trucking prices have always been low 

for transport by truck in the Baltic region, 

especially the three Baltic states and Poland, 

and western Europe. After the entry of these 

countries into the EU, prices went up a bit. 

But it was still difficult to set up shortsea 

services between this area and western Europe 

due to the prices and the imbalance of 

cargo flows. For ro-ro services, the owners 

faced difficulties in obtaining (long-term) 

commitments from trucking companies. 

The crisis has decreased the prices again, 

however, it has caused a growth in local 

markets, EU regulations on drive/rest, German 

Maut, shortage of drivers… all in all, it 

might open up some opportunities for new 

shortsea services. It is extremely important 

to look for synergy with road transport to 

set up Motorways of the Sea. 

The European Commission has set up 

co-financing programs for the establishment 

of these Motorways of the Sea: existing 

or new maritime services which are 

part of a door-to-door logistics chain and 

which are bundling cargo flows into viable, 

regular, frequent and high quality shortsea 

connections. A Baltic Motorways of the Sea 

Taskforce is working on projects out of the 

market to submit to the EC-Motorways of 

the Sea subsidy program. 

Still a lot to do 

Shortsea shipping has certainly played a 

sustainable role in intermodal transport chains 

between the Baltic region and western Europe. 

The environmental image will be further developed 

in the forthcoming years, supported 

by already ongoing projects like shore supply 

of power in certain ports. This transport mode 

has proved to be more than hype: without SSS, 

the road would be fully congested. But there is 

still a huge potential to work on, just to name 

the more than 23 mln small and medium-sized 

enterprises in the EU. One of the tasks of the 

promotion centres is to focus on the SMEs 

with adequate information and convince them 

with best practices to include SSS as a sustainable 

part of their transport and supply chain. � 

Willy De Decker 

Shortsea Promotion Centre Flanders 

For more information, please visit: 

www.shortsea.be 

“De Lloyd” – Antwerp, Baltic Special, 

April 23 th 2010, www.shortsea.info

www.supergreenproject.eu 

Supporting EU’s Freight Transport Logistics Action Plan 

on Green Corridors Issues 

SuperGreen Project Workshop 

Helsinki, Finland, June 28, 2010 

The project entitled “Supporting EU’s Freight Transport Logistics 

Action Plan on Green Corridors Issues”, abbreviated name 

“SuperGreen,” is a Coordination and Support Action, co-funded by 

the European Commission in the context of the 7th Framework 

Programme. The project involves 22 partners from 13 European 

countries. 

SuperGreen aims to assist the Commission with defining the 

‘Green Corridor’ concept and promotes the development of 

European freight logistics in an environmentally friendly manner. 

The objectives of the SuperGreen project concern supporting the 

development of sustainable transport networks by fulfilling 

requirements covering environmental, technical, economic, social 

and spatial planning aspects. 

Within the context of the project, and starting from an initial list of 

some 60 corridors, a pre-selection of 15 European corridors has 

been made by the consortium, based partly on the current TEN-T 

and is also relevant in terms of the market and logistics needs of 

the project’s industrial partners. The pre-selection of corridors has 

been made according to the criteria such as transport volumes, 

average length of transport chains (share of long distance 

transports), existing transport infrastructure, types of transported 

goods, multimodality, effects on environment, human habitat and 

land use planning, geographical preconditions (cases covering 

different preconditions), used transport and information 

technology, supply chain management strategies and procedures 

of main transport clients and other relevant criteria defined more 

exactly in the beginning of this task. The analysis of the corridors is 

based on existing data, and previous research and development 

projects. Adequate care has been given so that the selected 

corridors achieve an adequate geographical and modal balance. 

Modal-wise, the mix of pre-selected corridors includes: 

• Land-based corridors 

• Corridors (short sea-road-rail-intermodal) that are 

alternatives to road 

• Corridors (deep sea- road- rail-intermodal) with non- 

European trade partners 

Geography-wise, corridors to be pre-selected cover (indicatively): 

• Corridors in the Iberian and/or Italian peninsula 

• Corridors in Scandinavia 

• Inter-Mediterranean corridors 

• Corridors linking Scandinavia with the Baltic countries, 

Poland and Germany 

• Corridors in the Hamburg- Le Havre range 

• Corridors between UK and continent 

• Corridors between the Balkans and Central Europe 

• Corridors between EU and Russia 

• Deep sea corridors (Far East and North America to 

Europe) 

• Inland navigation corridors 

We are delighted to invite you to Helsinki on 28th June 2010 to 

take part in the workshop and contribute to the benchmarking of 

European Green Corridors. 

TARGET AUDIENCE 

Logistics service providers, shippers, carriers in all surface modes, 

intermodal transport companies, policy makers, researchers and 

analysts, environmental organizations, other stakeholders 

interested in green logistics. 

REGISTRATION: Advance registration is necessary. To see the full 

workshop programme and register, please visit this link: 

www.sito.fi/en/supergreen

Maritime 

Debate on new IMO regulations continues 

Two options for Finland 

Photo: Port of Kokkola 

Maritime traffic has always been considered as an environmentally 

friendly mode of transport. However, its negative 

effects on the environment can be considerable. Will the effects 

be lessened after the IMO sulphur regulation is implemented? 

Let’s take a look at the Finnish case. 

Ships make noise and harmful gases, 

waste and wastewater are dumped 

into the sea, the engines run on fossil 

fuels, ballast waters may bring 

unwanted alien species to vulnerable 

seas, toxic materials, e.g. heavy 

metals and asbestos have been used in building 

vessels, poisoning the environment and endangering 

the health of workers when vessels are 

scrapped. In case of ship accidents large sea and 

shore areas can be destroyed even for decades. 

However, compared with other modes of 

transport, due to its environmentally friendly image, 

the shipping industry has managed to stay 

quite a long time out the focus of “green movements” 

and tightening environmental regulations, 

while industry and car manufacturers have 

changed their strategies during the last decades. 

The quality of heavy fuel used in vessels gives a revealing 

example of environmental issues in maritime 

transport. In the 1970s the vessels burned 

practically the same fuel as other big machines 

and vehicles everywhere. While environmental 

rules were getting tighter on land, crude oil was 

purified and the cleaner part was used on land 

and the rest at sea. Today, the price of ship fuel is 

even lower than fuel for land transport, it is practically 

considered as waste. In other words, shipping 

has been taking care of the problem waste of 

oil distilleries without thinking of its costs. Now 

it is time to pay these costs. 


Time to pay 

Cheap fuel and consequently cheap sea 

transport has been one of the main promoters 

of globalization. Since 1995, worldwide container 

transport has increased by 150%, bringing 

mainly cheap consumer goods from Asia to consumers 

in Europe and America. Presently we are 

in a situation where instead of shipping in many 

respects it is more environmentally friendly to 

travel by other means of transport, in particular 

by rail, but even on road. 

Consequently, various expensive requirements 

are being implemented to make sea transport 

more environmentally friendly. In 2008, 

the Marine Environment Protection Committee 

(MEPC) of the International Maritime Organisation 

(IMO) unanimously adopted the revised 

Annex VI to MARPOL 73/78 (International 

Convention for the Prevention of Pollution from 

Ships), which places restrictions on nitrogen and 

sulphur oxides emissions from ship traffic. Lowering 

the sulphur content in fuels will also be a 

way to reduce emissions of particulate matter 

from shipping. The new Annex enters into force 

on 1 July 2010. The sulphur content of fuel will 

fall in the special areas (SECA = Sulphur Emission 

Control Area), which are the Baltic Sea, the 

North Sea and the English Channel, from 1.5% 

to 1% from 1 July 2010, and to 0.1% from 1 January 

2015. Globally, the highest permitted sulphur 

content of fuel will fall, as of 1 January 2012, from 

4.5% to 3.5%, and to 0.5% from 1 January 2020. 

The use of sulphur scrubbers will still be allowed, 

so that the fuel grades currently in use on vessels 

fitted with them can also be used (for more information, 

check BTJ 1/2010). 

For a long time now, large car and passenger 

ferries on the Baltic Sea have been using heavy fuel 

oil with a sulphur content of no more than 0.5%. 

However, there is not enough of it as things are 

now – and the situation may not change in the future 

either – to meet the needs of all marine traffic 

in the Baltic, North Sea and English Channel. A 

report by the IMO states that approximately 0.5% 

of the fuel currently used by global maritime traffic 

is heavy fuel oil with a sulphur content of less than 

0.5%. According to the report, the use of heavy fuel 

oil grades will mainly need to be abandoned when 

the sulphur content limit for fuel is less than 1%, 

necessitating a switch to light fuel grades. Accordingly, 

it is also difficult to estimate the price that 

heavy fuel oil with a maximum sulphur content of 

0.5% might have in the future. 

Is gas the only resource? 

A switch to fuel with a maximum sulphur 

content of 0.1% will in practice mean that vessels 

will have to use gas oil (MGO) as fuel, which is a 

lot more expensive than heavy fuel oils, owing to 

the way it is manufactured. It has proven difficult 

to estimate the availability of low sulphur fuels. 

Estimates received suggest that the problems will 

not be owing to the demands on SECA areas, at 

least not yet, but to the fact that when light fuels 

start to be used worldwide, the oil industry will 

have to increase its refining capacity considerably 

to meet the rise in demand for light fuel grades. 

One should always exercise caution when predicting 

future prices for fuels, as there are so many 

variables involved. Besides, price trends are not so 

much based on facts as all the various expectations 

and beliefs concerning the future. The uncertainty 

and massive fluctuations in fuel prices we have 

witnessed have led us to use fuel prices that are not 

based on any precise value but a probable range 

of variation on the basis of estimates by member 

companies of the Finnish Oil and Gas Federation. 

Rising costs 

Expert views received from shipping companies 

and the Confederation of Finnish Industries 

associations suggest that rising fuel costs will,

in time, be incorporated in their entirety in sea 

freight costs. As a result, sea freight charges will increase 

considerably when the stringent regulations 

on maximum sulphur content take effect. Rising 

freight costs will particularly affect sectors that depend 

very much on exports and/or imports. 

Options for Finland 

The total fuel consumption for ships bound 

for Finland has been estimated on the basis of 

two scenarios for consumption in 2007, where 

maximum consumption is 2.6 mln tonnes (scenario 

1) and minimum consumption is 1.8 mln 

tonnes (scenario 2). The estimate is that if vessels 

bound for Finland were to switch from heavy to 

light fuel – in this case gas oil with a maximum 

sulphur content of 0.1% – the following additional 

costs would be incurred, given the differential 

in prices for fuel grades: 

1) at EUR 111 per tonne, the maximum 

would be EUR 273 mln and the minimum 

– EUR 190 mln, 

2) at EUR 480 per tonne, the maximum 

would be EUR 1.182 bln and the minimum 

– EUR 823 mln. 

The calculations do not take into account the 

savings in fuel costs through the possible use of 

sulphur scrubbers, adapted to deal with the conditions 

in the Baltic Sea. 

While Finland is so dependent on sea transport 

(75% of import and 89% of export is transported 

by sea), these kinds of environmental 

costs do not only affect transport of the Finnish 

industry but also the location of industrial facilities. 

It will be questionable whether heavy industrial 

goods (e.g. paper products, machinery) are 

economically feasible to be produced in the area 

of Baltic Sea at all. 

More challenges ahead 

Low sulphur fuel is only one of the environmental 

challenges the shipping industry is 

facing in upcoming years. There will be more 

and more regulations on wastewater, solid 

waste handling, noise pollution, nitrogen oxide 

emissions, ballast water treatment, ship 

recycling, etc. One of the most urgent questions 

is how the shipping industry will try to 

reduce its share of greenhouse gas emissions. 

There are still many options and open questions, 

but while writing this, IMO is busy making 

a proposal to the UN, regarding the actions 

and measures that the shipping industry will 

take. In any case, these actions will have a 

Maritime 

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Cargo 

Systems 

fundamental effect on maritime economics, 

global shipping and international industry. 

However, shipping is a mode of transport that 

can be utilised far from congested housing areas 

with low need of energy when compared with the 

amount of cargo transported. This brings obvious 

opportunities to engine manufactures, ship 

designers, shipyards, port machine manufactures 

and even supply chain managers and ICT systems. 

To fulfil the tightening environmental regulations 

in shipping, high technological expertise 

and logistics knowledge is required. The speed 

and fluency of transport, as well as any technological 

developments in vessel design are to be 

fitted into the requirements of the supply chain. 

This expertise can be turned into a competitive 

advantage of Baltic Sea shipping. The path will be 

long and expensive, but it is worth taking. � 

This article is based on a study by Kalli, J., Karvonen 

T. & Makkonen, T. 2009: Sulphur content in 

ships bunker fuel in 2015. A study on the impacts of 

the new IMO regulations and transportation costs. 

Publications of the Finnish Ministry of Transport 

and Communications 31/2009. Helsinki. 

Ulla Tapaninen, Juha Kalli, Tapio Karvonen 

Centre for Maritime Studies, University of Turku 

A future you can meet with confi dence 


Maritime 

IT solutions in ports 

System planning: a new view 

Photo: Visy 

Many IT systems are regarded in terms of a “solution” to a specific problem but in fact without 

looking at how a particular system affects the operations of a port, the term “solution” is 

premature at best. 

The Port Access Control Systems (PACS), Terminal Operating 

Systems (TOS), Vehicle Booking Systems (VBS), and 

Gate Operating Systems (GOS) are just four of the main IT 

investments made by ports and terminals. Before we can really 

discuss any system or solution, it is important to define 

the basic terms. The Webster dictionary defines “system” as 

a group of interacting, interrelated, or interdependent elements forming a 

complex whole. As a recent article on Forbes.com accurately points out, the 

term “solution” has come to mean everything from the traditional way to 

solve a mathematical proof to a suite of efficiency-enhancing software – and 

it is perhaps the epitome of lingual laziness (Steiner, C. “The Most Painfully 

Annoying Business Jargon” www.forbes.com 16 December, 2009). 

By these definitions it is inaccurate for a technology provider to boastfully 

promote their offering as a “system” or “solution” when in fact it is 

the customer’s perspective from which all technology should be viewed. 

If we view systems from the perspective of port/terminal operations then 

we must accept that the IT infrastructure is one large system and the TOS, 

PACS, GOS, VBS are interacting entities forming a complex or integrated 

whole. Installing technology that stamps out a problem in one area of the 

port but exacerbates a problem in another is far from a solution. Therefore 

when planning to invest in one type of “system,” ports and terminals must 

consider how that investment will affect other assets. Without a doubt the 

investment of any port/terminal technology or equipment will highlight 

at least one of four key objectives: 1) Reduce operating expenses (e.g. a 


GOS can help reduce damage claims), 2) Optimize safety and security 

(e.g. a PACS helps with ISPS compliance), 3) Increase throughput capacity 

(e.g. a PACS and GOS can drastically reduce the time per transaction), 

4) Give effect to regulations and trends (e.g. PACS, GOS and VBS can 

all help reduce traffic congestion). So how should we manage the design, 

procurement and implementation of IT? 

The 7 Ps 

Although there are many versions of the 7 Ps, they all contain the same 

clear message: Proper Prior Planning Prevents Pitifully Poor Performance. 

Planning is the key to successful system design, procurement and implementation. 

A port is a cohesive business unit and the implementation of 

technology in one area, such as the yard, is going to have a ripple effect on 

operations in other areas, such as the gate. Originally, the TOS was designed 

to manage yard operations and the GOS was designed to manage data collection 

and access control at the perimeter. As the TOS and GOS became 

more ambitious and the ripple effect took its toll, the TOS was pulled towards 

gate operation and the GOS was pulled into the yard. The result is 

that the modern TOS and GOS overlap in functionality; however, neither 

system is in a position to take over the complete functions of the other. For 

example, the modern PACS goes beyond just the gate area of a single terminal 

and can automate traffic flow throughout the entire port. The PACS will 

accommodate bookings, allow (or deny) appointments, use display boards

and driver kiosks to send trucks and cargo to the right locations, support 

multiple TOSs and GOSs, support Customs Agency clearance, provide access 

control for personnel, and streamline all traffic movements between 

different areas of the port. Although there is a long list of technologies and 

features that can compose a PACS, the focus should be on benefits and how 

the PACS fits-in and enhances the overall system and processes that make 

the port. Given that an IT-based system such as a TOS or PACS should have 

a +10-year life, there is a clear need for planning and forethought. 

As any port IT planner knows, the task before him or her is large. 

Between the port authority, terminal operators, customs agency, community, 

environmental groups, and others, the list of parties with conflicting 

interests can seem endless. Often, the consultants, equipment manufacturers, 

and technology providers also hold different opinions all of which 

seem equally valid. So who is right when it comes to IT planning? As the 

saying goes, “the customer is king.” The most effective way to sort out 

these overlapping or conflicting interests is to have the parties sit down 

together with the customer(s) and decide how to advance. The customer 

has the right to select a TOS from one provider and a GOS from another. 

Regardless of what some might argue, any system provider is happy to 

work with another as long as they have both won a project. There might 

be some kicking, screaming and even a temper tantrum as each party puts 

its personal agendas aside, but once the engineers start talking shop the 

focus will shift towards making a great system for the customer. 

One size doesn’t fit all 

There is no such thing as a single system that solves all problems and 

it is common that systems will have overlapping or complementary functions. 

Therefore, all parties must work together, define processes, and 

assign responsibilities. In general terms, the TOS is good at yard management 

and the GOS is good at data collection and basic access control 

functions. It is natural for the R&D departments of technology companies, 

likely spurred by customer demand, to expand their suites and develop 

the functionalities that other systems may have traditionally held. Furthermore 

there could be concurrent IT development as providers identify 

that terminal operators will require certain features or future management 

capabilities. All technology providers are aware of the functionality 

overlaps and some have experience with complex systems planning that 

meets the needs of all parties in a port environment. 

Port IT planning in practice 

The Port of Helsinki, Vuosaari Harbour provides a good example of 

a gate provider able to manage the conflicting needs of several parties. In 

2003 Visy began supporting the planning process of the Greenfield project 

which was scheduled to go live in 2008. Within the port there would be 

5 main organizations (the Port Authority, Finnish Customs, Finnsteve, 

Steveco, and Multi-Link Terminals), all interested in managing large traffic 

volumes and strict port-wide access and area control. The gate would 

need to integrate with each organization’s internal systems (such as a TOS 

and a GOS), as well as unique processes and procedures. Furthermore the 

terminals would be in competition with each other so the common gate 

would have to protect sensitive business data. 

In November 2008, the new Port of Helsinki opened on time 

and on budget. Visy provided a Port Access Control System for 

the Port Authority, a border traffic control system for Finnish 

Customs, and 3 GOSs, one for each terminal. The VBS and portwide 

gate system allow a truck to book an appointment, enter the 

port’s main gate, fulfil appointments at the respective terminals, 

clear Finnish Customs and exit the port all in a single trip. Transactions 

can be completed at the level of automation authorized by 

the Port Authority, Customs Agency and terminals and can even 

Maritime 

vary daily depending on updated security concerns or regulatory 

issues. The Port of Helsinki Vuosaari Harbour PACS was the first of 

its kind in Europe and is the benchmark for other ports. 

Flexibility 

Visy PACS allows technologies, traffic lanes, or interfaces to be added 

or subtracted as required. Because all system software is commercially 

available and made in-house by Visy, and all hardware is commercial 

off-the-shelf (COTS) with no proprietary components, it is very easy 

to change the functionality of the system. For example, after the border 

traffic control system went live, Finnish Customs Agency invested in 

optical character recognition (OCR) for container code identification to 

identify cargo units entering on rail through an X-ray portal. 

The commercial availability of software and hardware is vital for 

good system design. Consider how the industry has changed over 

the last 10 years in terms of security, volumes and practice. Now 

forecast how the industry will evolve in the next 10 years and consider 

long-term service, support and maintenance of any technology 

investment. There is simply no reason to be locked into a strict 

system design that will create considerable costs for small system 

changes. Applying the 7 Ps to design, procurement and implementation 

will ensure that the right solutions are found, the correct system 

is in place, and long-term business goals will be attained. � 

John Lund 

Visy Oy 

John.Lund@visy.fi 


Logistics 

New study by VTT 

How to speed up freight traffic 

Photo: Port of Kotka 

“Improvement of freight traffic requires the development of 

logistics information processes and an increased degree of 

automation,” say VTT representatives. This is why the RFID (Radio 

Frequency Identification) remote identifier systems were created 

and are perceived as an efficient means to enhance the logistics 

processes between Finland and Russia. 

According to experts, the invention 

would benefit the 

entire supply chain, customers, 

and also the work 

of authorities at the border 

between the two countries. 

Development will require cooperation and 

agreement on the use of various different 

standards and applications. 

In June 2009, the Finnish Ministry of 

Transport and Communications launched a 

project called “Development of monitoring 

systems of intermodal transport” (INTMOD 

2009), which was intended to enhance logistics 

operations and the flow of transport information 

between Finland and Russia. The 

project developed practices of the electronic 

transport data transfer between the Finnish 

and Russian companies and other organizations. 

It also developed electronic identification 

systems in freight transport. The overall 

aim of this project was designed to facilitate 


cross-border transport and to enhance transport 

operators in the use of resources. 

Finnish Customs will require, according 

to the EU customs regulations, advance notification 

of all shipments starting 01/01/2011. 

This concerns all export and import between 

Finland and Russia. The project has developed 

methods that facilitate companies’ access 

to the new notification procedures. 

e-Freight 

Russian companies want to develop 

electronic data transfer. The problem is that 

in Russia there is no agreed general and 

uniform manner to present electronic data 

contents of documents and methods of data 

transfer. In order to introduce more efficient 

electronic data transmission practices 

in Russia, the project drew up an approach 

for Finnish-Russian cooperation, whose 

task it is to develop methods for electronic 

data transfer between Russian and Finnish 

companies and organisations. 

The project developed for Russian brokers 

both software and ways of communication of 

information needed in customs clearance. 

Moreover, in order to develop electronic 

data transfer and to create electronic links 

with Russian cooperation partners, the 

project drafted activity diagrams and lists 

of information which can be used in electronic 

transmission of essential documents 

while organising transport. 

The VTT Technical Research Centre of 

Finland’s pilot project surveyed and studied 

various possibilities and alternatives for the 

exploitation of electronic systems and messages 

between a Finnish timber company and 

a Russian logistics operator. The aim of the 

study was to develop the shifting of transport 

information to an electronic basis. Also 

under investigation was an automatic railway 

wagon identification system for transport 

between Russia and Finland. The study 

described the electronic messages relating to 

one transportation order and its confirmation. 

In the survey work, it was observed that 

the exchange of messages relating to freight 

transport still entails the manual input and 

receipt of information, and that communication 

relating to logistics often takes place by 

email, phone or fax. 

Finnish companies have the capability 

of a paperless supply chain, although some 

minor changes are required in the existing 

software for the Russian market. The logistics 

operator in Russia has to introduce a solution 

which makes it possible to receive and 

send electronic messages and documents. 

Drivers for RFID identification 

The project also studied automatic 

identification systems of transport units in 

transport between Russia and Finland. In 

logistics, the benefits obtained from the automation 

of processes relating to data collection, 

transmission and recording are significant. 

Electronically produced, reliable 

information can be used for many different 

purposes in logistics management. The introduction 

of RFID technology facilitates 

the steering of freight flows and traffic. The 

information obtained by this technology is 

real-time, and processes can be followed

on an information network and on various to produce up-to-date wagon identification 

mobile devices. The degree of utilisation of information, which can be used in various 

the available stock and infrastructure can operational systems. 

be more effectively monitored. The trans- In transport chains through terminals 

parency of the information obtained by the in Finland and/or in Russia, a pallet specific 

technology increases reliability. Advantages RFID identifier could be utilised in loading 

also lie in the reliability of delivery and in- and unloading phases of cross-docking and 

ventory control. 

similar activities. Transport unit identifiers 

In Finland, RFID technology is in use at facilitate fleet management in determining 

the harbour gates of Mussalo (Kotka) and the location of the units. In addition, the use 

Vuosaari (Helsinki). One application based on of RFID technology in truck transport could 

RFID technology in use is the electronic seal. accelerate customs operations. 

This is a unit integrated into a normal mechan- In Russia, the interest for electronic 

ical seal, which reveals any breaking of a seal or remote identification is high. The project 

penetration of the transport unit by communi- reports that in Russia there is demand for 

cating electronically with a reader device. information on RFID technology and its 

benefits in logistics operations. The project 

Automated identification 

also studied the possibilities of transferring 

data into a customs office about trucks 

Automatic detection of the railway leaving a port, obtained from port systems. 

wagon in transport between Finland and Finnish and Russian customs offices could 

Russia serves rail transport organizations, obtain prior information and could prepare 

operators, TOC europe10 and visitor the authorities. ad 184x118 The BTJ:Layout aim is 1 14/05/2010 for possible 12:04 congestion. Page 1 

Exhibition 

free to 

attend 

The Shipping, Ports & Terminals Exhibition for Europe 

8–10 June 2010 

Feria Valencia, Valencia, Spain 

TOC Europe in Valencia: Your Opportunity 

Meet over 120 international exhibitors 

Network with the world's leading container port experts 

Attend free technical briefings, workshops & seminars 

Discover the latest cutting edge port technology & solutions 

Register today: www.tocevents-europe.com/toc 

Organised By: Supporters: Sponsors: Strategic Partner: 

The future of RFID 

Terminal Operator Partners: 

Logistics 

between Russia and Finland 

The electronic data transfer between various 

logistics actors requires agreement on 

common standards. Major global companies 

in Russia, Finland and elsewhere in Europe 

already have working automation systems in 

place. Thus, it is not the case of a technical 

problem; rather, the problem lies in how to get 

these systems to talk to one another. Cooperation 

needs to be improved. 

Automation requires a common understanding 

between the different parties regarding 

standards, the information technology 

platform, and the ability to read identifiers 

which accord with different standards. The development 

of remote identification of railway 

wagons between Finland and Russia requires 

an RFID forum with Russian players. � 

Antti Permala 

LicTech 

Technical Research Centre of Finland 


Logistics 

Oversized goods & inland water transport 

Recovery in Russia approaching? 

Photo: AKG Logistics 

Any non-regular consignment brings non-regular challenges with it, especially on such a challenging 

market as Russia. Oversized transportation has a big impact on economic growth – a lower grade of 

bureaucracy and better communication systems would make the country much more competitive in 

industries such as industrial projects, energy, transport as well as construction. 

According to Arkadius Grabietz, 

Managing Director of 

AKG Logistics, “Russia’s logistics 

industry is – like China’s 

– one of the world’s most 

attractive trading markets. 

To efficiently answer the needs of our customers, 

the use of intermodal and combined 

transport concepts is the key to success. 

If not the road, then… 

The Russian railway network, being the 

world’s second largest with a length of 87,000 

km, is a serious alternative to land transportation 

on the 540,000 km road network. To 

this, add the 2,500 airports which also connect 

very remote areas. 70,000 km of waterways 

connect the White and Black Sea, the 

Baltic Sea and other parts of western Russia. 

The whole waterway network is even bigger. 

In the far reaches of Siberia alone, more than 

20,000 km of waterways constitute a developed 

infrastructure. 

AKG Logistics operates the transportation 

of oversized goods on the route to Russia 

and back, making best use of sophisticated 

methods. “Low-frame platforms are one of 

the safest methods to reliably ship bulky cargo 

and make quick loading and unloading possible,” 

comments Mr. Grabietz. All phases of 


transportation need to be carried out with 

hindsight and in the given time slots, including 

customs clearance, all legally required 

documents describing the consignments’ size, 

weight and other specifications. In Russia, the 

transportation of oversized cargo is very complex 

due to several changes in customs legislation. 

Another essential factor is planning of 

the route, e.g. taking into account the individual 

conditions of roads, railway crossings and 

bridges. In this big country, also the weather 

and climatic conditions are of large importance 

for the design of a solid transportation 

concept for oversized goods. 

Legislative challenges 

Transportation of oversized machinery, 

equipment and other bulky goods by road is 

usually performed on low-loaders cars. These 

allow for very safe transportation, as needed 

for valuable cargo. However, shipping oversized 

cargo by rail is often more preferable because 

of several imperfections in the legislative system 

on the field of road transportation. For the 

customer, a continuous monitoring and information 

service about the status and the current 

whereabouts of all transports is offered, incorporating 

satellite navigation and mobile communications 

systems. In case of an unforeseen 

situation, alternative routes are considered. 

Therefore, due to the Russian legislative 

system, rail transportation of oversized 

cargo offers several advantages. However, 

only road transportation allows direct delivery 

to “the door” of the client. Almost 

everywhere there is ongoing modernization 

of production facilities and large scale construction 

sites for social and industrial purposes. 

Oil and gas production as well as the 

manufacture of steel products continue to 

increase world-wide. All these production 

facilities require appropriate equipment, 

construction and engineering designs. Any 

increases in output capacity sooner or later 

also dictate increasing the size of these 

structures and then, in turn, necessitate 

bulky goods shipments. 

Inland waterways 

Let’s not forget about the other modes of 

transport with great potential. Russia has the 

longest inland waterway network in the world, 

consisting of 125 inland ports and 102,000 km of 

navigable waterways optimally linked to the road 

and rail network. Channels such as Belmovsko- 

Baltijski, Volga-Don and Moscow-Volga allow 

transporting freight from Europe without transshipment. 

“For one of our clients, we carried out 

a project by barge on the route from Dzerzhinsk 

to Dudinka. This allowed us to ship oversized

petroleum equipment with a length of up to 25 

meters,” explains Mr. Grabietz. 

The Russian river and deep water system 

named the Unified Deep Water System, abbreviated 

UDWS, is 6,500 km long and consists 

of the main rivers Volga, Neva, Svir, Don and 

Dnieper, which are connected through channels 

such as the White Sea-Baltic canal, the 

Volga-Baltic canal, and the Volga-Don canal. Vessels 

of up to a 3.6 m draft and 5,000 dwt can pass 

through UDWS. It also connects the Baltic Sea 

near St. Petersburg, the northern Barents Sea and 

the Arctic Ocean to the Black Sea and Caspian Sea. 

Inland water transport is subject to strong seasonal 

uncertainty, allowing reliable operations only from 

late April to early November. In winter, the rivers 

and lakes are frozen and all traffic comes to a halt. 

In the Asian part of Russia, Siberia, the rivers are 

restricted much earlier. Many of the UDWS locks 

require strong maintenance as a result of the strong 

ice. As Mr. Grabietz says, “…it must be made easier 

for shipping companies to use landings, so that the 

boats can be prepared for the cold season.” 

During the record year 1998 approximately 

600 mln tonnes were transported, but in 2009 

the traffic volume reached just under 100 mln 

tonnes. 20090130_Advertisement At the earliest Transfennica_landscape_3mmBleed.pdf in 2012, the 1/30/2009 operation 

3:55:49 PM 

of foreign vessels on Russia’s inland waterways 

will be permitted – doing away with current 

economic barriers. The Russian captains, equipment 

and navigation systems should already be 

up to European standards. For years, the inland 

water transport (IWT) has lost orders to other 

competitive transportation methods such as 

rail and truck. In the meantime, the share of 

IWT in the Russian handling of goods is down 

to just three percent – and the trend is: falling. 

Mr. Grabietz points out, “Russian river craft and 

equipment are currently not up-to-date and 

many lifts and cranes are now 25-30 years old. 

Strategic investments in these items would be 

great, as more and more cargo and container 

ships would then be able to use the waterway.” 

Hidden potential 

The traditionally strong rail and increasingly 

growing truck shipments unite more 

than 80 percent of the urban market in Russia. 

The concentration of logistics service providers 

in intermodal transportation through 

combined transports such as truck and rail 

and inland waterways offers great potential 

because of the inevitable cost savings. 

Logistics 

Arkadius Grabietz 

Managing Director of AKG Logistics 

Despite many obstacles, some areas in Russia 

can still only be accessed via waterways. Starting 

in 2011, the Russian Transport Ministry plans 

to shut down the Moscow Northern Port and 

to build a new multimodal port, located 60 km 

north of Moscow, Dmitrov, between St. Petersburg 

and Moscow at the Moscow-Volga canal 

and near the rail track – a RUB 12 bln investment. 

To produce new capacious vessels, a large 

shipbuilding company with docks will be established 

beside the new multimodal port. � 

Marisa Lutter 


Logistics 

Educational undertakings of K+N 

Learn logistics 

Where can one acquire decent knowledge from the logistics 

field? One of the options is the new Kühne Logistics University 

(KLU), which launches its enterprising syllabus in Hamburg’s new 

docklands quarter of HafenCity which is home to an ensemble of 

globally operating companies, modern apartments, a cruise-liner 

terminal and the future Elbe Philharmonic Orchestra. 

KLU’s two week international 

Summer School for executives 

and senior managerial 

staff will be held in August 

and a two-year Master’s Degree 

in “Global Logistics” 

will begin for holders of Bachelor degrees in 

September. Both courses have a wholly international 

and interdisciplinary orientation 

and are aimed at students and senior managers 

from all over the world. 

Although KLU was only founded in January, 

its team, which is mainly recruited from 

its preceding institution “Kühne School of 

Logistics and Management”, possesses many 

years of experience in high-calibre teaching 

of Logistic Managers – also from the Baltic 

countries. The responsibility for the university 

lies with the Kuehne Foundation’s 

chairman of the administrative board Klaus- 

Michael Kühne, the majority shareholder 

of the logistics corporation Kühne + Nagel. 


KLU is very ambitious; within a few years the 

school wants to cover the entire spectrum of 

university training and further education using 

its planned degree and continuing education 

courses – from bachelor degree courses 

to structured doctoral programmes and 

from one-day forums to two-year Executive 

MBA programmes as continuing education 

courses. With its 21 professorial chairs, the 

university will cover all the major research 

fields in the areas of logistics, freight carriers 

and business management. Wolfgang 

Peiner, the University’s founding president 

stated that, “this consolidation of teaching 

and research expertise in logistics and business 

management is to number among the 

internationally very best in the future.” 

Hamburger specialties 

Hamburg, Germany’s second largest 

city with a population of 1.7 mln, is one 

of the most important logistics metropolises 

in northern Europe. As the twin city 

of St. Petersburg, Chicago, Shanghai, Marseille 

and Prague, it has the second largest 

container port, the largest rail network 

junction as well as one of Europe’s most 

modern airports. Hamburg is the most important 

location for shipping underwriting 

and transport law: The International 

Tribunal for the Law of the Sea and the International 

Arbitration Tribunal for Logistics 

are located here. The city with about 

100 consulates has, particularly since the 

fall of the Berlin Wall and due to its growing 

trade with China, profited a great deal 

from its disposition towards foreign trade 

and the international transportation of 

goods. The internationally operating aerospace 

companies Airbus and Lufthansa 

Technik are also located in Hamburg. 

An idea for the holidays 

The two-week international Summer 

School from 23rd August to 3rd September 

2010 offers executives and senior management 

an exceptional interdisciplinary mix 

of theory and practice in preparation for 

further career moves. An integrated appreciation 

of logistics management and supply 

chain processes are conveyed to the participants 

in seven modules and they acquire 

management techniques, for instance, in the 

intercultural aspects of conducting negotiations. 

Instruction is in English. 

How to become a Master 

The two-year degree course is aimed at 

holders of Bachelor degrees in the subject areas 

of Economics and Engineering Sciences 

who want to prepare themselves for a career 

in logistics. The course of study is divided into 

six trimesters, has the final degree “Master of 

Science” and, apart from the topic modules on 

Logistics, Business and Management, training 

in leadership skills, it also comprises two 

months of practical training as well as residential 

study at a partner university in China, 

India or the USA. A master’s dissertation over 

three months completes the final degree. Applications 

for the new course of study must be 

received by 15th July 2010. � 

Further information: www.the-klu.org

Successful Bembridge 

The British maritime heritage set sail 

to the Baltic Sea. After the former Trinity 

House tender Patricia, which joined Stockholm’s 

waterfront as a restaurant, the second 

veteran of the British pilot service started 

as an office for Magemar Poland. The picture 

shows the pilot vessel Bembridge leaving 

Forkor shipyard for her final destination 

– the Egyptian quay in the Port of Szczecin. 

Inscriptions ‘PILOTS’ and ‘No. 1’ on the side 

appear again after a 35-year break! The owners 

with help from retired Trinity House pilots 

and British ship lovers are restoring the 

beauty from the outside and within. 

Photo: Załoga Bembridge 

Families first 

At the beginning of BTJ we often mentioned 

the short-lived phenomenon of ‘Flying 

Clippers’ – huge flying boats which crossed 

oceans with passengers sleeping in bunks and 

eating in real messrooms… These airplanes 

had a clear safety record in terms of personal 

injury, although some women and men met 

both the perils of flight and of the sea. The 

most known case is the forced landing of the 

Boeing 314 Bermuda Sky Queen in the stormy 

mid-Atlantic in 1947. All passengers and crew 

(69 people) were rescued by the US Coast 

Guard vessel Bibb. The evacuation of survivors 

took two days! Charles Martin, captain of the 

Bermuda Sky, gave priority to entire families 

(not just women). The picture shows a rowing 

boat from the Bibb returning after a failed rescue 

attempt, leaving 26 “singles” stranded on 

the downed liner. 

Photo: USCG 

Modern double-decker 

In 2005, doubledecker 

trains returned 

to Sweden after a 15year 

break to solve 

capacity problems in 

the Stockholm region. 

We see an Alstom 

electric multiple unit 

class X40 crossing 

the bridge in Eskilstuna. 

The three-car 

train seats 288 passengers 

and runs at 

a maximum speed of 

200 km/h. The X40 

is equipped with air 

conditioning and a passenger information 

system; all seats have headphones, electricity 

and Internet available. Its doors are on the 

Photo: Statens Järnvägar 

Belgian ‘Warsaw’ built Gdynia 

Traditionally, in 

the pre-JumboJet era, 

names of capitals were 

reserved for passenger 

ships. Poland was no 

exception. From 1928, 

the Polish steamship 

Warszawa served the 

prestigious line London 

– Gdynia. But in 

Gdynia she was always 

met by her unusual 

name in French – the 

Belgian bucket dredger 

Varsovie (in the picture). 

Its owner, Ackermans 

& van Haaren 

were involved in the construction of the port 

in Gdynia as a main contractor. Today the 

Ackermans & van Haaren’s dredging branch 

Photo: Dredging International 

Collector’s note 

In 2009 Åland Posten started a series of 

stamps with Åland and Finland-owned ferries 

as motifs. The 2010 issue presents two 

pioneering vessels – Prinsessan and Skandia, 

painted by Håkan Sjöström. Prinsessan was 

the first ever ship of Birka Line (purchased 

in 1971) and Skandia (built in 1961) was 

Silja Line’s first brand new ship and first 

purpose-built car-passenger ferry. Silja sold 

its pioneer in 1974 and Birka in 1978. Both 

ships have tonnage in the range of 4,000 

GRT – 10 times less than today’s ferries in 

the northern Baltic. 

Transport miscellany 

level of the lower platforms. Since 2008, Statens 

Järnvägar’s fleet amounts to 27 three-car 

and 16 two-car sets. 

– DEME Group – is more conventional in its 

naming policy. Modern units are named after 

oceans, seas and rivers. 

Photo: Åland Posten 


Who’s who 

Stefan Hansen appointed new CEO of Lufthansa Systems AG 


Lufthansa Systems AG’s Supervisory Board has appointed Stefan Hansen as CEO and Chairman of the 

Executive Board for a period of three years. He will succeed Wolfgang F. W. Gohde, who is leaving at 

his own request. Stefan Hansen (45) studied electrical engineering at Flensburg University of Applied 

Sciences. He began his career in 1990 as a project engineer for process automation at Siemens AG in 

Hamburg before working two years as the manager of Technical Systems & Operations at the Unilever 

subsidiary Lever GmbH. He joined Lufthansa Systems in 1999. He was head of the Desktop and Network 

Services department before taking over as managing director of the subsidiary Lufthansa Systems 

Infratec GmbH in 2001 and then of Lufthansa Systems Network GmbH in 2004. 

Danish Ports reconfirms Uffe Steiner Jensen as its chairman 

At its general assembly, Danish Ports – the trade association of the Danish commercial ports – reelected 

Mr. Uffe Steiner Jensen as its chairman. Mr. Steiner Jensen is also a member of the Board 

of Associated Danish Ports A/S, the port company managing the ports of Fredericia and Nyborg in 

Denmark. ADP constitutes the port company with the highest turnover in volumes in Denmark. Mr. 

Steiner Jensen is the former mayor of the City of Fredericia. 

Management change at Femern Bælt A/S 

The challenge of designing and planning the fixed link between Denmark and Germany has now reached 

a level where the CEO of Femern Bælt A/S Peter Lundhus has decided to focus exclusively on his position 

as Technical Director. As a consequence, he will be replaced as CEO by Leo Larsen who is also CEO of 

Femern Bælt A/S’ parent company Sund & Bælt Holding A/S. Leo Larsen has been Managing Director of 

Sund & Bælt Holding A/S since 2004. Previously he held the position of Permanent Secretary of State 

in the Ministry of the Environment from 1999-2004. Furthermore Leo Larsen has been Chairman of the 

Board of Directors of Copenhagen Energy since 2008. He holds an MSc. in Hydrology and Geography. 

Change in the Executive Board of Scania 

Christian Levin has been appointed Head of Sales and Services Management and will join Scania’s 

Executive Board. He takes up his new position as from 1 September 2010 and succeeds Urban Erdtman, 

who will retire at the end of 2010. Christian Levin, aged 43, is currently Managing Director of Italscania 

S.p.A. He joined Scania in 1994 and has held various managerial positions. Prior to his current position, 

Christian Levin was Managing Director of Scania Schweiz AG between 2005 and 2006. 

Alison Nissen

Posidonia 2010 

7-11 June 2010 

Hellenikon Exhibition Centre, Athens, Greece 

Your opportunity 

The biggest gathering in the shipping calendar 

with the owners of the world's largest fleet. 

Welcome to the home of shipping 

The International Shipping Exhibition 

Organisers: Posidonia Exhibitions SA, e-mail: posidonia@posidonia-events.com 

Tel. +30 210 428 3608, Fax +30 210 428 3610 

www.posidonia-events.com

DEME nv 

Haven 1025 - Scheldedijk 30 

B-2070 Zwijndrecht, Belgium 

T +32 3 250 52 11 

F +32 3 250 56 50 

info@deme.be 

www.deme.be 

Creating land for the future 

TSHD Lange Wapper performing land reclamation works at Port of Muuga, Estonia. 

Partners in sustainable development 

DEME has been a top player in every segment of worldwide dredging, 

hydraulic fill and marine engineering for decades. 

We have participated in the construction, deepening and or widening 

of important waterways and navigation channels in every corner of the 

world for over 150 years. 

TSHD Reynaert - dredging and reclamation works for beach 

nourishment at Grauerort and at Wedel, Elbe, Germany.

btj 35.indd - Baltic Transport Journal

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