№ 2/2011 (40), MARCH/APRIL
€ 15/50 PLN (VAT +5%)
Report
Break bulk
cargo 2010
Focus
Finance and insurance
Make mobility greener
Baltic Transport Journal is an official media partner of:
Journal
ISSN 1733-6732
Baltic Transport
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– a testing ground
for Innovations
The East West TC project has an important task: to be a
testing ground for innovations, new technology, business
models and improved transport management systems which
will facilitate more sustainable transport solutions than those
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Lead partner
Editorial
S
pring usually begins the renewal process and with what the world
and the global economy have come through in the recent time – to mention just the
Japanese earthquake disaster, still fragile financial markets, not resolved banking
and currency crisis in Europe and the rise in oil prices resulting from the Middle East
turmoil – never enough reinforcement to keep the wheel spinning. It’s easy to feel puzzled in
the face of a time this tricky, but as the conversations we had with several top industry players
show, we are not doing inadequately at all. Read the interviews with Ryszard Strzyżewicz from
Port of Gdańsk, Claudia Roller of Port of Hamburg Marketing, ADP’s Ole Haugsted Jørgensen
and Anders Refsgaard from DFDS Group to learn how our industry’s expert managers see the
current Baltic market situation. Environmental issues are always on our mind too, therefore
we asked the latter how might the new IMO regulations for sulphur emissions influence
on the future of shipping in our region. As this matter is quite challenging and absorbing, I strongly recommend you to go to TransBaltic pages and read the final conclusions of the
latest Baltic Ports Organization’s report as well as Bogdan Ołdakowski’s further comments
on this topic. We will tackle it further in the next BTJ edition.
Our special report in this issue „Break bulk and project cargo 2010” lays out how things
really are with general cargo today. Moreover, I strongly recommend you the piece entitled
“Financial crimes in the supply chain – A complex web” by Magdalena Jażdżewska-Gutta,
which you will find in the Focus section, as well as an article “Make mobility greener”
by professor Dr. Dieter Rebitzer, who is reflecting on long-term changes in the social,
economic and technological environment. We’ve got a lot up our sleeves over here for you,
so make yourself comfortable and get informed on how things look within the Baltic today.
In addition, we continuously change to be your destination magazine and as always we are
happy to hear your thoughts on what you’d like to see from us.
Do you feel the spring energy boost already? I hope you do.
Until next time,
Lena Lorenc
Company index
AGA Gas 10; Amphicar 57; APL 14, 15; Arcelor Mittal 17; Äripäev 13; Associated Danish Ports (ADP) 26; Baltkran 10; BCT 8;
Bremerhaven 11, 18, 19; British Midland International 58; Caterpillar 20; CCNI 14, 15; China Shipping 14; Chipolbrok 36, 37;
CMA CGM 14, 15, 26; Conti-Lines 38; Copenhagen Malmö Port 10; COSCON 14, 15; CSAV 14; Cummins 20; DB Schenker 10;
DCT Gdańsk 8, 17; Delacour Dania 50; Demag 57; Deutsche Post 58; DFDS Group 16; DHL 58; Dornier 57; Dynamar 14, 15;
E.ON 27; Energie Baden-Württemberg AG (EnBW) 22; Ernst & Young 12; Estonian Public Broadcasting 13; Euroafrica Shipping
Lines 38; Eurogate 8, 19; Evergreen 14, 15; Feeder-Logistik-Zentrale (FLZ) 19; Finnish Port Association 45; Finnlines Group
9; FinnLink 9; Fortum 10; Fredericia Shipping 26; Gate Gourmet 58; GCT 8, 17; Gearbulk 38; Goodman 17; Green Feeder 26;
Grieg Star Shipping 38; GTK 8; Hamburg Süd 14, 15; HaminaKotka Port 21, 25; Hanjin 14,15; Hapag-Lloyd 14, 15, 18; Harwich
International Port 24; HDS Lines 14, 15; Helcom 43; HHLA 8, 19; Hyundai 14, 15; JadeWeserPort (JWP) 19; Jawaharlal Nehru
Port 41; “K” Line 14, 15; Klaipeda Container Terminal 8; Klaipėdos Smeltė 8; Kombitrafiken 10; Königslinie 56; Logent Gothenburg Car Terminal 10; Lufthansa Cargo 58; Maersk Line 11, 14, 15, 17, 18, 19; MCT 11; Medway Ports 24; MISC 14, 15; Mitsubishi
11, 20; MOL 14, 15; MSC 14, 15, 26; Muuga Harbour 11, 13; Nippon Yusen Kaisha (NYK Line) 14, 15; NordöLink 9; Norfolkline
16; Norra Hamnen 10; North-Western Shipping Company 58; OOCL 14; Österströms International 11; PERN Handling Base
17; PIL 14, 15; Port of Aarhus 11, 18; Port of Aberdeen 24; Port of Amsterdam 24; Port of Antwerp 24, 36; Port of Barcelona 24;
Port of Bremen 24; Port of Bristol 24; Port of Busan 36, 37; Port of Colombo 41; Port of Dubai 41; Port of Felixstowe 24; Port
of Fredericia 26, 27; Port of Frederikshavn 10; Port of Gdansk Cargo Logistics 17; Port of Gdańsk 8, 11, 17, 18, 19, 21; Port of
Gdynia 8, 10, 11, 17, 19, 57; Port of Glasgow 24; Port of Gothenburg 10, 11, 18, 24; Port of Grangemouth 11, 24; Port of Great
Yarmouth 24; Port of Greenock 24; Port of Hamburg 18, 19, 24, 36; Port of Hamburg Marketing (HHM) 18; Port of Helsinki 8,
21, 42, 43; Port of Hongkong 24, 41; Port of Hull 24; Port of Ipswich 24; Port of Johor 24; Port of Kapellskär 9; Port of Karlskrona
58; Port of Kiel 10; Port of Klaipėda 8, 16, 21, 34, 35; Port of Klang 24; Port of Kobe 24; Port of Kotka 35; Port of Le Havre 24;
Port of Liepaja 9; Port of Liverpool 24; Port of London 24; Port of Lübeck 35; Port of Marseille 24; Port of Melbourne 24; Port of
Mombasa 24; Port of Muscat 24; Port of Naantali 9; Port of Nanhai 24; Port of New York and New Jersey 24; Port of Nyborg 26,
27; Port of Nynäshamn 9, 10; Port of Rauma 35; Port of Riga 21, 35; Port of Rostock 8, 35, 44, 45; Port of Rotterdam 11, 18, 19,
24; Port of Sassnitz 23, 45; Port of Seattle 24; Port of Shanghai 11, 36; Port of Singapore 24, 37; Port of Southampton 24; Port
of St. Petersburg 11, 13, 16, 34; Port of Stralsund 45; Port of Tallinn 8, 11, 13, 21, 35; Port of Teesport 24; Port of Thamesport 24;
Port of Tilbury 24; Port of Travemünde 9; Port of Trelleborg 9; Port of Tyne 24; Port of Ust-Luga 8, 16, 17, 21; Port of Valencia
24; Port of Ventspils 9; Port of Wilhelmshaven 19; Port of Wismar 45; Port of Yantai 24; Port of Ystad 9, 58; Port of Zeebrugge
11, 19, 20; Port of Zeeland 24; Porto Marghera 36; Ports of Stockholm 11, 58; Ports of Szczecin-Świnoujście 8; Rederi AB TransAtlantic 11, 38; Rickmers-Linie 38; Rødsand 22,27; Rolls-Royce 20; Rostock Seaport (SHRU) 8, 45; Russian Rail Garant 11; Saga
FC 38; Scandlines Group 9; SEA-Invest Group 17; SEB Bank 12; Siemens Wind Power 27; Skangass 10; Spliethoff 38; Statistics
Estonia 12; Stena Line 10, 16, 58; Stora Enso 34; Sustainability Agents 31; T. S. Lines 14; Team Lines 26; Trans Viking 11; UASC
14; Unifeeder 11, 26; Unity Line 9; Viking Line 10; Viking Supply Ship 11; Volgo-Baltic Logistic 58; Volvo 20; Vopak E.O.S. 11;
Vuosaari Harbour 42; Wan Hai Lines 14; Wärtsilä 20; Westerplatte Ferry Terminal 17; Yang Ming 14; ZIM 14, 15.
President of the Board
bogdan ołdakowski
office@baltictransportjournal.com
Publishing Director
piotr trusiewicz
piotr@baltictransportjournal.com
Managing Editor
lena lorenc
lena@baltictransportjournal.com
Executive Editor
marek błuś
marek@baltictransportjournal.com
Contributing writers
martyna bildziukiewicz, krzysztof czaja,
alex engh, evelina hansson-malm,
magdalena jażdżewska-gutta,
stig kallestad, henrik kleis,
julia kryszewska, małgorzata nosorowska,
antti posti, riitta pöntynen,
dieter rebitzer, karolina reszczyńska,
sebastian siegele, karen sund,
pekka sundberg, bartosz szczepaniec,
ulla tapaninen, dirk visser
English Language Editor
alison nissen
Design and DTP
medon
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Focus
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2/2011 | Baltic Transport Journal | Contents
3
14
29
3 Editorial
6 BTJ calendar of partnership events
8 Market SMS extended
10What’s new
12Economy:
Baltic Tiger nourishing on euro
54 Events:
Transport Logistic Munich
55 Events:
European Maritime Day
56 Collector’s corner
57 Transport miscellany
58 Who’s who
14 World’s top container liner
operators: Trading profiles
16 Many routes will be closed and
new hubs will arise
17 We are a reliable business partner
18 No need to worry about the
future
20 Meeting several targets at once
21Will Russia’s growth boost
Finland’s opportunities?
22Now let the wind blow
24Securing effective information
exchange
26Ready for new challenges
Corporate Social Responsibility
in the TFL sector
29Why is responsible logistics at your
desk?
Regular columns
40
Maritime
Newsletters
TransBaltic
40India and BSR:
Emerging business opportunities
42Future environmental regulations
for shipping in the BSR
42Dialogue is a necessity
| Baltic Transport Journal | 2/2011
Baltic Ports Organization
44 Port of Rostock:
Universal and proud of it
45 5th BPO Lunch Debate: discussing
IMO regulations and MoS Policy
EWTC II
46A green corridors manual:
The purpose and preparation
BTJ Special
Contents
33
47
52
Break bulk & project cargo 2010
33 Second line cargo?
36 Responding to market expectations
38 Inspired by break bulk
Finance & insurance
47 Financial crimes in the supply chain
– A complex web
49 Denmark is prepared for 2012
52A look into the future – Make
mobility greener
Report
Focus
Logistics
In this issue
”Forcing the sulphur emissions limit down to 0.1%
is simply not workable. If nothing is done here many ferry
routes on the Baltic will be closed.”
Anders Refsgaard, Vice President of DFDS Group
Read the interview Many routes will be closed and new hubs will arise, p. 16
and receive 2 posters with BALTIC RORO/FERRY and CONTAINER maps
FOR FREE
* BALTIC RORO/FERRY map is a free supplement to BTJ May-June 3/2011
* BALTIC CONTAINER map is a free supplement to BTJ Sept.-Oct. 5/2011
of 6 upcoming BTJ issues
of 6 upcoming BTJ issues
(+5% VAT, postage costs included)
Go to www.baltictransportjournal.com and click:
2/2011 | Baltic Transport Journal | BTJ calendar of events
BTJ 2/2011 (March-Apr. edition)
Report: Break bulk & project cargo | Focus: Finance and insurance
Issue distributed at:
The 8th International Rail Forum, 10-12 May 2011, ES/Madrid, www.montane.eu.com
th
The 8
2011
The International Rail Forum is renowned for being the only professional congress and exhibition on an international scale, dedicated to Railways and
Urban Transport, which is promoted and organized wholly in Spain. This forum will be attended by 6,000 rail specialists. In addition, the exhibition
will include more than 120 companies covering a 4,000 m2 space. At the congress more than 150 high-level delegates will speak and participate in
round-tables, with the aim of debating major rail policies, present technologies and future trends. It is, therefore, a magnificent opportunity to learn
firsthand from experts about the most significant technical advances and future directions of the sector at an international level.
Transport Logistic 2011, 10-13 May 2011, DE/Munich, www.transportlogistic.de/en
Since 1978 Transport Logistic has established itself as the most important trade fair for logistics, mobility, IT and supply-chain management in
Europe. The 2011 edition, once again co-organized with Air Cargo Europe, will provide an expert overview of new markets, trends and innovations
in the international transport and logistics industry via its many accompanying conferences, seminars, workshops, presentations, etc.
TransBaltic Conference 2011, 11-12 May 2011, SE/Skellefteå, www.transbaltic.eu
The Municipality of Skellefteå will be hosting the TransBaltic conference “A model region for green transport solutions” in May. This lunchto-lunch event will feature an extraordinary dinner reception which cannot be missed. Highlights from the conference will include: The state
and future of transport infrastructure in the Baltic Sea region by the Baltic Transport Outlook, Challenges of green transportation in North
America – lessons for Europe, Prospects for the trade exchange between India and the Baltic Sea region, Views of pan-Baltic organisations on
the optimum transport system, and Solutions by the TransBaltic project to stimulate transport co-modality in the Baltic Sea region.
European Maritime Day, 18-20 May 2011, PL/Gdańsk, http://ec.europa.eu/maritimeaffairs/maritimeday/about/background_en.htm
The European Maritime Day is celebrated annually across Europe on 20 May. It shows the importance of the sea and oceans for everyday
life, both in coastal communities and in landlocked areas across Europe. It also highlights the opportunities and challenges currently facing
maritime regions and sectors. This year European Maritime Day will be for the first time held in the Baltic Sea region – in the Polish city of
Gdansk. The event will take place under the banner ‘Maritime policy: putting people first’..
Nor-Shipping 2011, 24-27 May 2011, NO/Oslo, www.nor-shipping.com
Notwithstanding the downturn in the European shipbuilding/shiprepair market, 2009 Nor-Shipping was the largest in the history of this
event, dating back to 1967. With more than 1,100 exhibitors and 33,000 attendees, the show featured 22 national and four thematic
pavilions in six halls. This redesigned thematic exhibition layout plus selection of technical conferences and workshops turned out to be a
success, so 2011 will follow a similar concept.
7th Annual Forum Transport Infrastructure in Russia, 25-27 May 2011, RU/Moscow, www.russian-transport.com
The 7th Annual Forum Transport Infrastructure in Russia will take place over three information-packed days. It is an unrivalled opportunity for you
to reinforce your contacts in the industry, meet new business partners and share expertise with the most forward-thinking players in transport
infrastructure today. Over 40 top speakers will take to the podium, including top executives from the key players in Russia’s transport infrastructure
sector, prominent government officials and leading financiers and consultants, all of whom will gather to discuss the burning issues shaping the
future of this strategically important sector for Russia.
Commercialising LNG Fuelled Shipping, Workshops: 30 May 2011; Conference: 31 May – 1 June 2011, DE/Hamburg,
http://lng-fuelledshipping.com
LNG has the potential to change the face of the shipping industry as well as make the most of regulations intended to slow the rate
of environmental degradation caused by heavy fuel emissions. The LNG supply chain however is not yet fully developed. By bringing
technical experts with their knowledge of LNG safety, storage and transportation together with ship owners, business developers and LNG
project managers, the event is designed to deliver workable, practical solutions to your bunkering, financing and safety issues.
TOC Europe 2011, 7-9 June 2011, BE/Antwerp, www.tocevents-europe.com
The Terminal Operations Conference & Exhibition traditionally gathers suppliers of container terminal services, handling equipment, systems and
software. Hundreds of executives from the port, terminal and shipping sectors will meet to discuss the evolution of global maritime trade and
how to improve the performance of shipping, port and hinterland services to support trade growth.
SIL Barcelona 2011, 7-10 June 2011, ES/Barcelona, www.silbcn.com
Over the last 13 years, International Logistics and Material Handling Exhibition in Barcelona, has become the reference point for all
logistics sectors, as an effective and profitable tool for doing business and making contacts in a professional and friendly climate that is
difficult to match. The event will be supported by the Mediterranean Logistics and Transport Forum, a number of technical conferences
and dedicated business meetings.
TransBaltica 2011, 8-9 June, LV/Riga, http://www.rmsforum.lv/public/28170.html
The event, hosted by Riga for the 14th time, features an international conference and business meeting both concerning transportation.
Key issues to be discussed are the future of transport and transit services, development prospects of the Baltic transport sector and
further cooperation with European and Asian business partners as well as strategic partnership in the Baltic region. There are five
plenary sessions scheduled to be attended by representatives of Baltic region companies, state institutions, international committees
and academic societies.
BTJ 3/2011 (May-June edition)
Report: Ro-ro & ferry market | Focus: Transport and ecology
Issue distributed at:
European Shortsea Congress 2011, 29-30 June 2011, DE/Hamburg, www.navigateevents.com
Held already twice in Dublin and once in Liverpool, the 4 th European Shortsea Congress will for the first time take place on the continent,
comprising a two-day conference catering to bulk and unitized shortsea supply chains. The event is guaranteed to bring numerous
networking activities.
GreenPort Congress 2011, 14-15 September 2011, DE/Hamburg, www.greenport.com
The 6th GreenPort Congress moves to Hamburg, the European Green Capital 2011, and will feature a 2-day technical conference, gala dinner,
and a study tour of the main ports in the North European range: Hamburg, Bremen, Amsterdam, Rotterdam and Antwerp. The topics will include
collective solutions for clean shipping, global regulations on CO2 emissions, energy efficiency, sustainable development of land and seaward
access, etc. More info at: conferences@greenport.com.
| Baltic Transport Journal | 2/2011
BTJ calendar of events
BTJ 4/2011 (July-Aug. edition)
Report: Baltic maritime ranking 2011 | Focus: Baltic shipyards
Issue distributed at:
BALTEXPO 2011, 6-8 September 2011, PL/Gdańsk, www.baltexpo.com.pl
Along with the Polish shipbuilding restructuring process, the private yards continue their production and new areas of their activities require modern
machinery and investments. Baltexpo will target these topics during its 16th international exhibition and conference. For over 30 years the event has always
attracted thousands of professionals from the entire maritime sector: ship owners/operators, shipyards, ports, equipment manufacturers/suppliers, etc.
BPO Annual Conference 2011, 8-9 September 2011, DE/Rostock, www.bpoports.com
Baltic Ports Organization invites all executives interested in improving the competitiveness of maritime transport in the region, increasing
the efficiency of ports/terminals, developing infrastructure and value added services, as well as extending both ashore and hinterland
connections to its annual conference, this year held at and co-organized by the Port of Rostock.
European Road Transport & Logistics 2011, September 13th-14th, NL/Amsterdam, www.flemingeurope.com
During the conference transport and logistics experts will gather under one roof and will discuss the importance of road freight and prospects
of its development in the changing economy. Debaters will particularly focus on practical approach to cost effectiveness, alternative fuels,
transport management, the development of road infrastructure and integration with other transport modes. Among the speakers are top
managers from logistics, forwarding, spedition and trucking companies..
HanseLog 2011, 22 September 2011 DE/Hamburg, http://www.bvl.de/en/Events/8th-HanseLog/8-HanseLog
HanseLog, held annually by BVL, has developed into one of the most important logistic events in the north of Germany. For the 8th time supply
chain experts will gather in Hamburg to discuss opportunities and problems that their industry faces. This year’s principal themes of the
conference will concern ecological issues – green ports, green facility concepts and energy efficiency, with particular emphasis on projects in
the North and Baltic Sea regions of Germany.
Seatrade Europe 2011, 27-29 September 2011, DE/Hamburg, www.seatrade-europe.com
Seatrade Europe brings together key decision makers in the industry for a high-level conference, a major exhibition, travel agent training and an exceptional
social programme. This event attracts senior purchasers, technical and hotel directors, itinerary planners and other major players from the world’s cruise
and rivercruise market. A rare chance to accomplish months of business in a few days whilst your prime target group is gathered under one roof.
BTJ 5/2011 (Sept.-Oct. edition)
Report: Baltic containerization | Focus: Railway transport
Issue distributed at:
European Transport Conference 2011, 10-12 October, UK/Glasgow, www.aetransport.org
The European Transport Conference is the annual event for transport planning professionals organized by Association for European Transport.
ETC is a forum for transport practitioners to come together and debate on policy issues, research findings and best practice across their sector.
Besides the professional discussion sessions the conference’s structure also gives an opportunity for informal meetings.
TRAKO International Railway Fair, 12-14 October 2011, PL/Gdańsk, www.mtgsa.com.pl/title,lang,2.html
The most important rail meeting in Poland and one of the largest in CE Europe, giving the opportunity to promote agglomeration rail transport,
freight forwarding and logistics, present the latest technology and hold business meetings. The exhibition is organized in partnership with
Polish National Railways (PKP) together with a number of seminars, conferences and presentations.
International Supply Chain Conference 2011, 19-21 October, DE/Berlin,
http://www.bvl.de/en/glc/28th-International-Supply-Chain-Conference
For the 28th time the ISCC will bring together experts from the industry, trade and service sector as well as scientists from over 40 countries.
This year participants will share their knowledge and experiences on supply chain under the keynote: “flexible – secure – sustainable” and
topics will include risk management in supply chains, brands and marketing in logistics, agility-focused strategies and supplier integration
in global markets. The meeting is a perfect occasion to exchange the ideas on up-to-date supply chain resolutions.
Baltic Development Forum Summit 2011, 24-27 October 2011, PL/Gdańsk, www.bdforum.org
For the first time Poland will host the annual BDF Summit. Baltic Development Forum will work closely together with the Polish government
during its EU-presidency (second half of 2011) and the European Commission, in an effort to demonstrate how to combine top-down
political guidance with bottom-up enthusiasm and entrepreneurship.
Europort Rotterdam 2011, 8-11 November 2011, NL/Rotterdam, www.europort.nl
A bi-annual event gathering over 30,000 professionals from all segments of the shipbuilding/shiprepair industry, giving an overview of the
latest technologies in the maritime industry. Construction of vessels, dredging, fishery, inland navigation, mega yachts, naval specials, offshore,
sea shipping, workboats, and much more is waiting for you at the four-day exhibition and its assisting conferences.
BTJ 6/2011 (Nov.-Dec. edition)
Report: Bulk transport | Focus: Road traffic
Issue distributed at:
Rail Revenue and Customer Management 2011, 7-9 November, NL/Amsterdam, www.terrapinn.com/2011/rail-revenue
The conference gathers high speed, non-high speed and metro rail operators from all over Europe. The main theme of the event is
maximizing revenue opportunities from increased customer engagement. During the three days Europe’s leading rail operators will
present case studies, take part in panel discussions, brainstorm sessions and debates. The main topics include increasing revenue by
creating customer-centric rail solutions, using customer analytics and taking advantage of new ticketing platforms. Maximizing ancillary
revenue and the growing rail market share are also key issues to be discussed.
Intermodal Europe 2011, 29 Nov.-1 Dec. 2011, DE/Hamburg, www.intermodal-events.com
After a 3-years break the Intermodal Europe exhibition and conference will again be hosted in Hamburg. The world’s leading event for all
associated with the container and intermodal industries dates back to 1976 (at first named CTC – the Container Technology Conference).
Intermodal Europe is organised by IIR Exhibition, a part of the Informa Group.
2/2011 | Baltic Transport Journal | Market SMS extended
Ports of Szczecin & Świnoujście:
Port of Gdynia: 14.7 mln tonnes
a total of 20.8 mln tonnes handled in 2010 (+26.3% yoy)
handled in 2010 (+11.1% yoy)
Photo: Port of Szczecin & Świnoujście
Last year’s coal handlings
grew to about 7.3 mln
tonnes with a remarkable
+73% output, but the major part of the ports’ operations still belonged to
general cargo. Within its
total 8.5 mln tonnes (+19%
yoy) almost 5.8 mln was
from ro-ro traffic. Dry bulk
equalled 2.2 mln tonnes
(+11% yoy) and the remaining 2.8 mln tonnes
stood for grain, oil, iron ore
and wood products.
Port of Klaipėda: a record 31.3 mln tonnes handled in 2010 (+12.2% yoy)
The output made up 11.8 mln tonnes of dry bulk cargo, 9.8 mln tonnes of liquid cargo (incl.
8.8 mln tonnes of oil products) and 9.7 mln tonnes of general cargo. Ro-ro traffic reached
4.3 mln tonnes (+33% yoy) and containerized cargo improved to 3.5 mln tonnes (+24% yoy).
Containerized units totalled up to approx. 296.5 thou. TEU, with 181.4 thou. units in Klaipeda
Container Terminal and 115 thou. in Klaipėdos Smeltė.
General cargo amounted to 8.2 mln tonnes (+21%
yoy). Container traffic reached 485 thou. TEU (+28%
yoy) with Baltic Container Terminal Gdynia (BCT
Gdynia) handlings on the level of 281 thou. units
(+24% yoy) and Gdynia Container Terminal (GCT)
with 199 thou. TEU (+33% yoy). Coal and coke recorded an 11% decrease down to 1.7 mln tonnes,
and grain’s output fell to 1.7 mln tonnes (-13% yoy).
Oher bulk grew by 19% up to 2.3 mln tonnes.
Rostock Seaport: 23.7 mln
tonnes handled in 2010 (+10% yoy)
Dominant share of Rostock Seaport (Seehafen Rostock Umschlagsgesellschaft) – the
main cargo operator of the Port of Rostock
– was again wheeled cargo with 12.7 mln
tonnes handled (+8% yoy). Dry bulk turnover reached 6 mln tonnes (+11% increase)
and liquid goods grew by 15% up to 4.6 mln
tonnes. General cargo declined to 365 thou.
tonnes (11% fall yoy).
Port of Ust-Luga: 11.8 mln
Port of Gdańsk: an amazing 27.2 mln tonnes handled in 2010 (+44% yoy)
Total cargo turnover grew primarily due to
the improvement in coal throughput and its
8.9 mln tonnes last year. However, the biggest increase was noted in the port’s MTP
YUG-2 Terminal with 65.5 thou. ro-ro units in
2010 (+437% yoy).
Fuels held as much as 14.4 mln tonnes (+52% yoy), but the biggest improvement was seen in
general cargo which made up for 6.1 mln tonnes (+77.3%). Total container handlings rose by
116% up to a record level of 514 thou. TEU, incl. 451.7 thou. handled in DCT Gdańsk terminal
(+178.4%) and 62.3 thou. in Gdańsk Container Terminal (GTK), featuring a -16.7% slowdown.
Ro-ro freight kept stable at 25.4 thou. units (+2.3%). Meanwhile, coal/coke amounted to 3.2
mln tonnes (+17.1%). Other bulk commodities added up to 2.7 mln tonnes (+20%). Grains fell
down to 781 thou. tonnes (-18.7%) and ores to 10.4 thou. tonnes (-35.6%).
tonnes handled in 2010 (+13.6% yoy)
Port of CopenhagenMalmö: a stable 15 mln
tonnes handled in 2010
(0% yoy)
Despite overall stagnation in its
total throughput CopenhagenMalmö noted almost a 60% rise
in new cars segment (161 to 289
thou. units). Besides, the port displayed only 0.02% growth in liquid
bulk up to 6.8 mln tonnes and general cargo rose by 0.02% up to 5.5
mln tonnes. Meanwhile, dry bulk
decreased by 0.06% down to 2.7
mln tonnes last year.
Port of Hamburg:
total 121.2 mln tonnes
handled in 2010 (+9%)
The port noted a 9.9% increase
in general cargo (up to 80.9 mln
tonnes, which also includes a moderate +12.7% growth in containers up to 7.9 mln TEU. Here, three
HHLA terminals were respnsible
for over 5.8 mln TEU (+19% yoy)
and Eurogate Container Terminal
for about 2.1 mln TEU (a slight drop
by -0.9%). Bulk cargo rose to 40.3
mln tonnes (9.5% more than a year
before).
Port of Helsinki:
a total of 10.9 mln tonnes handled in 2010 (+12% yoy)
Unitized goods amounted to 9.8 mln tonnes (+14.2% growth yoy)
and bulk to 1.3 mln tonnes. The port featured balanced traffic with
exports reaching about 4.8 mln tonnes (+13.7%) and the inbound
flow totalling 5 mln tonnes (+14.7% yoy).
| Baltic Transport Journal | 2/2011
Fig. Port of Tallinn’s handlings in 2010
dry bulk
5 49 mln t
ro-ro
3 66 mln t
containers
1 464 mln t
Port of Tallinn:
others
0 366 mln t
liquid cargo
25 62 mln t
a record 36.6 mln tonnes handled in 2010 (+16% yoy)
Liquid cargo made up a 70%
share of the total result with
its 25.6 mln tonnes (+12% yoy,
mainly in petroleum products).
Dry bulk goods output of 5.5
mln tonnes accounted for a 15%
share (+33%, primarily in fertilizers, road metal, grain and scrap
metal). Ro-ro traffic reached
about 3.6 mln tonnes and container turnover – 1.5 mln tonnes
(of which 81% in transit to/from
Russia). Also, the number of
7.9 mln passengers (+9% yoy)
marked the highest point in the
port’s history.
Market SMS extended
Finnlines Group:
Photo: Finnlines
total 629 thou. freight units carried in 2010 (+5.5% yoy)
Total cargo volumes transported on all Finnlines’
services in the Baltic Sea,
the North Sea and the
Bay of Biscay consisted of
629 thou. freight units, 56
thou. cars (not including
passenger cars) and 2 mln
tonnes of freight not possible to measure in units.
The company’s FinnLink
service between Naantali
(Finland) and Kapellskär
(Sweden) accounted for
almost 128 thou. freight
units (+14.6% yoy). NordöLink services between
Malmö (Sweden) and
Travemünde (Germany)
carried about 216 thou.
units.
Unity Line: 220 thou. trucks & trailers carried in 2010 (+21% yoy)
Scandlines Group:
a total of 800 thou. trucks
& trailers carried in 2010
(+10.3% yoy)
A considerable growth of +59.7%
was reported on the company’s
three Latvian routes, between Ventspils and Travemünde/Nynäshamn,
as well as Liepaja and Travemünde,
but their total traffic of approx. 54
thou. freight units is still on a relatively low level. Scandlines Group
also experienced a 10.3% growth in
truck transport between Denmark
and Germany, and a rise of 25.4%
between Denmark and Sweden.
Freight volumes on two ro-ro vessels operating between Germany
and Finland grew by 8%.
The Świnoujście-Ystad route transported about 122.5 thou. ro-ro units (+10% yoy), including 49.5 thou. units carried on Polonia, 22.6 thou. on
Kopernik, 16 thou. on Jan Śniadecki and 34.5 thou. on Skania. The Świnoujście-Trelleborg line marked overall carryings of 96 thou. freight units
Transfennica_landscape_3mmBleed.pdf
PM
(+27%20090130_Advertisement
yoy), incl. 34.6
thou. on Gryf,1/30/2009
33.3 3:55:49
thou.
on Galileusz and 28 thou. on the Wolin vessel.
Advertisement
2/2011 | Baltic Transport Journal | What’s new?
The first LNG terminal in operation on the Baltic Sea
Coral Methane at the terminal in March; the first LNG ship ever entering the Baltic Sea, Photo: AGA
The new LNG terminal, a result of the cooperation between Nynas,
Fortum and AGA Gas which started in 2006, is located on the island
of Brunnsviksholmen outside Nynäshamn (50 km south of Stockholm) in Sweden. In 2009 AGA became the sole owner of the terminal and is now able to supply the marine market with LNG. The LNG
tank has a capacity of 20,000 m3 or approx. 9,000 tonnes of the fuel.
The terminal will be supplied by the Skangass LNG plant outside
Stavanger in Norway and additionally from LNG terminals in Central Europe. The terminal has already received three LNG carriers and
LNG truck loading is in operation distributing Liquefied Natural Gas
to Fortum and to other industrial clients. The first delivery to the Nynas refinery will take place in May 2011 when the refinery moves to
natural gas. The shift to LNG will contribute to significant reductions
in CO2 emissions in the Stockholm area. The first company operating in the Baltic Sea to announce LNG investments is Viking Line,
operating between Stockholm and Turku, Finland.
Copenhagen Malmö Port is transferring its operations to Norra Hamnen (Northern Harbour) in mid-May, when Finnlines and Kombitrafiken will move to the new harbour in
Malmö. A total of approx. SEK 900 mln (EUR 100 mln) has been invested in the new facilities,
increasing Malmö’s handling capacity five-fold. The construction works at Norra Hamnen
have been underway for about two years.
Swedish logistics company Logent took over
operations at the Port of Gothenburg car terminal under a 10-year concession agreement.
The facility is now called Logent Gothenburg
Car Terminal AB. The plan associated with
the new operator is to increase import flows
and improve rail links. Logent operates ports,
combi-terminals and storage facilities throughout Sweden and Norway as well as handling
stevedoring at the port in Stockholm.
Port of Frederikshavn has initiated extension of its port area. The plan includes expanding of the port entry from the present
width of 93 m to 135 m and an increase in
water depth from the present 8 m to 12+ m.
It will also provide facilities and permit service overhauls and reconditioning of larger
vessels and offshore platforms. The investment is part of a growth strategy plan with
the objective to increase freight traffic and
turnover up to 50% by 2016.
Kaliningrad-based Baltkran port equipment manufacturer
will deliver a double girder container crane for an intermodal terminal in Chelyabinsk (RU), a transloading point within
the TransContainer network near the border with Kazakhstan.
The new crane equipped with a telescopic slewing spreader
will handle about 50 thou. TEU per year. Capacity under the
spreader is 41 tonnes; the lifting height is 2+1. The frequency
inverter drive control assures smooth and safe movements
as well as economic use of electric energy due to the optimal under-load operation. This will lead to reducing handling
costs per container. A portal of the crane is divided into modules that can be transported by conventional rail platforms
and trucks. Optimal weight of the crane structure will allow
not to use expensive assembly equipment during erection
and to reduce the period of erection. The crane is equipped
with a mechanism for silent operation within city limits.
Port of Gdynia’s channel reconstruction was
recently finalized. The investment has deepened the channel in its full length up to 13.5
m and improved navigational conditions in
the port. The two enlarged turn basins and
a widened internal entrance provide better
safety during manoeuvres of the vessels. The
total cost amounted to PLN 95.3 mln (about
EUR 25 mln), of which slightly over 50% was
granted by the EU’s Cohesion Fund within the
framework of the Operational Programme Infrastructure and Environment.
10 | Baltic Transport Journal | 2/2011
DB Schenker has trialled a new rail freight route
from Chongqing, China to Duisburg, Germany,
through the south of Mongolia, Kazakhstan,
Russia, Belarus and Poland. Previous test trains
have followed the 2,000 km longer Trans-Siberian Railway route (via north of Mongolia). The
new test travel on the 10,300 km journey took
16 days, about half the time which would have
been necessary if taking the sea route. According to DB Schenker regular services between
China and Germany could begin this year upon
sufficient demand.
Photo: Baltkran
Another container crane by Baltkran to be delivered in Q3 2011
Stena Line has introduced another of its largest ro-pax ferries, Stena Scandinavica, to the
Gothenburg-Kiel service which is now operated by two sister ships, each 240 m in length
and a 4,200 lane-metre capacity. Stena Line
concentrated all of its Sweden-Germany traffic
in the Port of Kiel in 2010, which helped the
route mark a considerable 22% growth yoy.
To prepare for new ships, EUR 30.8 mln was
invested at the Schwedenkai Terminal in Kiel,
expanding port operational areas and constructing a modern terminal building.
What’s new?
Photo: Wallenius Wilhelmsen
Wallenius Wilhelmsen group
has launched the world’s largest
ro-ro vessel of 265 m length on
the company’s 150th anniversary. MV Tønsberg, constructed at
Mitsubishi Heavy Industries
in Nagasaki, Japan, offers cargo
space of 138,000 m3 on 6 fixed
and 3 hoistable decks. The Mark
V class has been announced the
most sophisticated ro-ro unit
ever built.
EUR 200 mln to be invested in Muuga (Port of Tallinn)
The Supervisory Board of the Port of Tallinn has given approval to
a range of development projects in its Muuga Harbour according
to which the operators will invest a total of EUR 200 mln into the
development of 3 projects: a new container and LPG terminals, and
development of the existing liquid bulk facility. The new container
terminal, planned to be launched in Q1 2013, will be operated by
Russian Rail Garant and engaged mostly in Russian imports/exports. It will be located next to the existing MCT. The LPG terminal
is particularly aimed towards transit of liquefied gas from Russia and
TransAtlantic has split into two separate
entities: an offshore/icebreaking part under
the name of Trans Viking and its industrial
shipping business continuing as Rederi AB
TransAtlantic. Meanwhile, TransAtlantic
will acquire Österströms International,
a Swedish shipping company focusing on
bulk operations in the Baltic. However, this
transaction is still subject to approval by the
competition authorities. As a consequence
of these changes, TransAtlantic’s CEO Stefan
Eliasson has resigned from his position. The
board has temporarily appointed Rolf Skaarberg from Viking Supply Ship to lead the
company’s shipping operations. He will then
handover his duties to Percy Österström (the
owner and CEO of Österströms) after the
spin-off has been completed.
Polish ports are again allowed to use a preferential 0% rate of Value Added Tax (VAT)
on loading/unloading, handling, counting, weighing and quality control operations. These services have been subject to a
22%, and recently 23%, rate since 2008,
which negatively affected Poland’s competitiveness and led some shipping companies to use other EU ports with better VAT
conditions.
St. Peterline has launched a regular ferry
line between St. Petersburg, Stockholm
and Tallinn. At first, twice a week, every
Monday and Thursday, Princess Anastasia
passenger cruise ferry will sail from St. Petersburg and arrive in Stockholm every Tuesday and Friday, and in Tallinn every Sunday.
Kazakhstan to Latvia, Lithuania, Poland, Finland, Sweden, Denmark,
Germany, Belgium, the Netherlands and France. The operator is still
to be revealed. The initial annual capacity will be 300 thou. tonnes
and the target is 800 thou. tonnes. The liquid bulk terminal developed together with AS Vopak E.O.S. will be expanded with an additional tank depot of 400,000 m 3 capacity for storing and blending
the products, as well as additional mooring facilities for VLCC tanker
loading and unloading. The investment is believed to allow handling
of up to an additional 5 mln tonnes of liquid products annually.
Maersk’s AE10 service upgrade
Maersk Line has upgraded its direct ocean AE10 service to the Baltic (Gdansk, Aarhus,
Gothenburg) with the company’s biggest units of E-Series – vessels of over 13-15 thou. TEU
capacity. The line also added two continental ports – Rotterdam and Bremerhaven – on its
westbound way to the Baltic Sea and cancelled its stop at Zeebrugge.
Gothenburg
Aarhus
Gdansk
Bremerhaven
Rotterdam
Suez Canal
Kwangyang
Shanghai
Ningbo
Yantian
Tanjung pelepas
Asia-Europe (AE10) – Westbound
Unifeeder
expanded its services between the UK ports and the Baltic Sea area, with the
launch
of
a
new
link between Rotterdam, Immingham, South Shields and Grangemouth
and
the Polish ports of Gdańsk and Gdynia.
Unifeeder
UK
services
2/2011 | Baltic Transport Journal | 11
Direct link between UK east coast and Poland
Economy
Estonia after its currency change
Baltic Tiger nourishing on euro
At the turn of 2011, hours before Estonia was about to introduce the euro, there were as many concerns as hopes attached to the changeover of the European currency. Now it is the right time to try to sum up the process so far, assess
which forecasts will come true, which failed to be correct and define Estonia’s future path within the euro zone.
B
efore 1 January 2011 attitudes towards adopting the euro, on all of
the mentioned levels, were optimistic on one hand and sceptical
on the other. Introduction of the
euro zone currency was said to improve the
Estonian economy, stabilize and reinforce
post-crisis recovery, strengthen the country’s
development and increase the country’s credibility, laying the foundation for growth of foreign investment activity. Investors’ confidence
towards Estonia’s changeover to the euro on
New Year’s Day 2011 was somewhat dimmed
by the perspective of limited economic sovereignty and stronger dependence on the rather
unstable euro zone economy. Recent bailouts
of Greece, Ireland and Portugal – and fears of
defaults in Spain and Italy – have left many Estonians wondering if ditching the kroon during the current euro crisis was a good idea. In
the words of economist Andres Arrak of the
Manior Business School in Tallinn, Estonia
was “invited to a wedding, but when we arrived
it was a funeral.” Yet the main threat posed by
the euro introduction was mostly voiced in
the context of inflation as Estonians feared
an increase in prices would be hidden in the
recalculation of price tags from the kroon to
the euro, giving companies another excuse to
12 | Baltic Transport Journal | 2/2011
raise prices. These fears were also powered by
the already rather high inflation rates which,
although were thought to stabilize in the near
term as raw material price growth slowed, the
central bank said last month, were boosted by
global price increases. Now, four months after
Estonia’s switch to the euro it is a good time
to evaluate how the process was implemented
and how it has influenced the country on a
macroeconomic, macroeconomic, and individual level, i.e. that of a private consumer.
Macroeconomic scale
Economic results achieved by Estonia in recent months after introducing the euro are, despite dire expectations, promising. The Swedish
SEB Bank’s experts say that Estonia seems to be
managing the change without facing any serious
problems related to exchange rate uncertainties
(i.e. problems concerning an inadequate kroon
to euro conversion ratio). Judging by the country’s main economic indexes used by the EU to
evaluate macroeconomic performance parameters, such as government balances, budget deficit and overall debt dynamics, Estonia is to enter a path of steady growth. However, it is worth
mentioning that entering the euro zone is not a
certain solution and a springboard to development. Estonia still may face overheating (as in
the case of Spain and Ireland, whose exchange
rates on changing to the euro were too low) or
it may experience sluggish growth (like Portugal with too high an exchange rate). The current figures published by Statistics Estonia are
of a positive sort and show that annual inflation
reached 5.2% in March, being the highest in the
17-member euro zone. Consumer prices were
0.8% compared with February, mainly due to
an 11.6% jump in food and beverages prices
and a 14.2% hike in fuel prices.
Ernst & Young, in turn, produced an even
more favourable and upbeat forecast which
states that Estonia could become the euro
zone’s leader in economic growth over the next
five years. Ivar Kiigemägi, an audit partner at
Ernst & Young Baltic, said in a recent interview
for local media, that while the general economic backdrop in Europe is rather deep, the Estonian economy has come out as the one which
will grow most rapidly in the next five years.
Although the level of unemployment in Estonia is currently one of the highest in the EU, the
situation should improve markedly over the
next five years, reaching the EU average, said
Ivar Kiigemägi. He noted that the main driver
for the growth in Estonia, as well as in other EU
countries, would likely be increased exports.
Surely strong export is the factor that has
contributed most to Estonia’s growth, putting
the country ahead of its peers from emerging
markets and even several developed countries. Increasingly strong commercial bonds
with its main trading partners such as Sweden and the other Nordic states, combined
with boosted manufacturing, has led the
export recovery and brought industrial production back to its pre-crisis level. Put all this
together with Estonia adopting the euro, and
the differences between three once equal Baltic states will be impossible to ignore. If the
development of processing industries and
obtaining subcontracts from Scandinavian
companies continues, it can easily help pull
the country further out of the crisis and deal
with its pressing problem of unemployment
by creating jobs. If, in addition, Estonia continuous on its current path, it may no longer
be called the Baltic Tiger, but instead it might
join its other neighbouring countries – the
Economy
Nordics and become, perhaps not a tiger at
first, but at least a Nordic kitten.
Microeconomic scale
But what effect has the changeover had
on local SMEs, international investors and
global corporations? Domestic entrepreneurs
have surely benefited from all the aforementioned positive effects euro adoption has had
on the Estonian economy. From a microeconomic perspective international business
relations could have been impacted the most
by the change. Research shows, however, that
transition from the kroon to the euro was
definitely a good step forward.
German companies, being the most prominent euro zone actors on the Estonian market,
have mostly experienced positive effects from
the euro adoption. According to Estonian Public Broadcasting, the annual business survey
carried out by the German-Baltic Chamber of
Commerce has shown that more than 60% of
German companies in Estonia have felt positive
effects from the changeover on their business,
while only 6 percent have had negative experiences. “Another important effect cited is the
increased confidence among foreign business
partners in doing business with companies in
Estonia, improving the investment climate even
further by eliminating uncertainty, increasing
trust and enhancing Estonia’s reputation as
an attractive business location,” said Thomas
Schöllkopf, President of the German-Baltic
Chamber of Commerce. Neither was Estonian
cooperation with non-euro countries hindered
as most Estonian businesses were settling accounts with foreign partners and affiliated
companies in the euro currency and the euro
introduction on January 1 did not affect their
business activities. Changeover costs were the
most often mentioned negative aspect of the
transition. Financial expenditures related to the
currency switch were considered disadvantageous by nearly half of the respondents. While
some companies expect increasing price competition and higher production costs resulting
from euro zone accession, only a few predict
higher labour costs. Even fewer companies are
wary of market share losses due to the entry of
new market participants.
Consumer scale
In day to day life, the changeover also went
rather smoothly. A survey carried out by the
Gallup Organization aimed at measuring reactions of individual citizens of Estonia to the
new currency has shown that people were well
informed, prepared for recalculations, keen on
the new banknotes and coins and also looking
forward to the change. Of course there was a
group of euro opponents who were convinced
that the euro would inevitably lead to economic
collapse and who compared the transition to
embarking the Titanic. Yet, as Aivar Õepa, editor of the www.news2biz.com portal*, noted in
his economic commentary, “one cannot also
undermine people’s experiences in changing
the currencies. The Estonians have seen eight
monetary reforms within the last hundred
years, one reform in every twelve years on average – thus, it was about time to change the
currency, as the kroon stood firm for almost 18
years.” And, indeed the euro adoption for Estonia seems a natural stepping stone on the path
the country chose in 1991. This is a fact confirmed by the general election that took place in
March, during which Estonia’s prime minister,
Andrus Ansip, was re-elected and his party received the majority of votes.
Undoubtedly, new members of the
EU should listen carefully to all feedback
from Estonia’s changeover as it certainly
may be treated as a great help and a lesson
for countries that are next in line to adopt
the euro; primarily Poland, Lithuania,
Latvia and others.
“Inflation is much more dependent upon
developments in the world market: food and
fuel prices, the economic cycle and not so
much the currency which is in use,” he said.
Julia Kryszewska
* news2biz is an Estonian portal for professionals doing
business in Eastern Europe and China. Äripäev/Bonnier
Group publishes bi-weekly business reports about Poland,
Lithuania, Latvia, Estonia, China, and Ukraine.
Joining the eurozone and fulfilling the criteria to enter the
zone is a clear message to all of our partners that Estonia has a
stable and strong economic environment. Estonia’s own currency, the kroon, was fixed to the euro from the time the European
common currency was introduced, so the new currency did not
change the monetary principles. But the euro confuted the speculations about devaluation of the Estonian currency and made the
country more attractive to foreign investors. Sweden and Finland
have been the two biggest investors in Estonia, and I believe that
the euro encourages investors from both of the countries to further increase their presence in Estonia. Through investing in production facilities in Estonia, the
trade volumes between these Scandinavian countries and Estonia will increase even more. I am
sure that the euro does not negatively affect trade or other economic relations with Sweden.
Erik Ringmaa
Chief Commercial Officer, Port of Tallinn
Joining the eurozone and OECD has considerably increased
the attractiveness of Estonia as a destination for foreign direct
investments (FDI). When combining these new factors with our
already existing unique tax system (0% revenue tax on reinvested
profits), a stable and safe business environment with no corruption, strong fiscal policy, plus excellent infrastructure and logistics capabilities, Estonia seems an ideal place for business. We are
already monitoring and expecting even more significant movement of Scandinavian corporations into Estonia. This concerns
all Nordic countries, not just Finland, which is probably gaining
the most from the common currency. Another effect of the euro is the increasing interest of
companies in Russia, Ukraine, Belarus and Kazakhstan. One of the Russian investors from St.
Petersburg commented on his feelings about Estonia’s development as if he is seeing another
Switzerland only 200 km from home. Also, for Latvia, Estonia is considered an important trade
corridor due to our tax advantages and opportunities offered by the free zones. Currently, we
have four free zones: Muuga, Sillamäe, Valga and Paldiski. Estonia’s future is very dependent
on the attractiveness of our investment climate and business environment. Therefore, the
euro is another brick in the wall of prosperity. Estonia’s economy is led by the services industry,
among which logistics services hold a massive 40% share and lead in export sales. Attracting
Nordic manufacturing enterprises to Estonia, besides new job creation, allows the flow of raw
material, components and finished goods. Some industries also tend to bring along with them
their vendors directly or use the services of 3PL. Therefore, strategic FDIs like manufacturing
plants, with as high value added per capita as possible, are very interesting and important to
Estonia. This is also the reason why the state is working on matters concerning its investment
climate’s attractiveness and business environment so intensively.
Illimar Paul
Development Manager, Estonian Logistics Cluster
2/2011 | Baltic Transport Journal | 13
Maritime
World’s top container liner operators
Trading profiles
D
ynamar in the 9th edition of its annual Top 25 Container Liner Operators publication, covering the period
August 2009-December 2010, looks with deep insight
into the world’s largest container shipping companies
and their state of affairs during and directly after the
most severe downturn in the history of containerisation.
Obviously, the worst period in container shipping within the past
55 years has not left them unscathed. Their survival would not have
been possible without the readiness of their financiers and other stakeholders to save them from the brink of collapse. Some of them, including CMA CGM, CSAV, Hapag-Lloyd and ZIM have gone through profound financial restructuring. The 25 carriers reporting financial results
saw their 2009 combined revenue fall by 30% year-on-year, leading to a
total loss (for all 25) of USD 16.2 bln.
This comes down to an (operating) loss per container of no less than
USD 190 per each TEU which these lines had the “privilege” to carry for
their shippers, worldwide. Variation between the lines was substantial:
between a negative 1 US dollar for Wan Hai of Taiwan and a mind boggling negative USD 419 per TEU for Malaysian MISC Berhad.
Pandora’s box was not empty
The year 2010 saw recovery to an extent that none of those Top
25 had ever expected. 2010 may actually conclude with profits opposite in magnitude to the steep losses of only one year ago (albeit
not all). Already in the first half of the year (the period for which
financials of most carriers are available), their combined profit was
almost equal to that of the full year 2008.
The 2010 profits come from a combination of: strong freight
rate increases over the period January/August (as from around September onwards they started declining again); worldwide full TEU
carryings growing by around 11%; recurring and continuing cost
savings, including those on ships taken out of lay-up and on further
intensifying slow steaming.
But wait a minute: the Top 25, including their 28 sister companies
and subsidiaries, increased their operating capacity (ignoring ships
in lay-up) by 13% on average in the 12 months since 1 January 2010.
Photo: Hapag-Lloyd
By mid-2009 it was generally thought that the liner
industry was sailing into a prolonged period of ashen
high waves, unavoidably leading to major casualties.
With their proverbial flexibility, all Top 25 carriers and
their 28 subsidiaries actually did endure with some already acting as though things are looking up.
Table 1. Top 25 Container Liner Operators 2010 (by total fleet capacity)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Company
Maersk Line
MSC
CMA CGM
Evergreen
Hapag-Lloyd
APL
CSAV
COSCON
Hanjin
China Shipping
MOL
NYK Line
Hamburg Süd
OOCL
“K” Line
Yang Ming
ZIM
Hyundai
PIL
UASC
Wan Hai
T.S. Lines
HDS Lines
MISC Berhad
CCNI
TEU (in thou.)
2,143
1,818
1,204
604
598
587
578
544
474
453
403
386
372
354
328
322
310
288
248
216
179
84
74
67
59
TEU growth %
4.8
22.2
16.7
4.6
29.3
6.8
69
20.1
7.7
0
17.9
-5.2
19.9
9.1
-4.0
2.9
1.5
4.7
30.4
9.9
43.4
68.5
-22.9
-45.2
61.9
Eleven of them did so by double-digit percentages: between 17% (CMA
CGM) and as much as 69% (CSAV). This growth was due to the delivery of newbuildings and chartering additional tonnage.
At the same time, the scrapping of elderly vessels came to an almost
standstill, while the ordering of new ships resumed. In the second half
Table 2. 5-year overview of developing annual capacity and carryings, and Car/Cap Ratio
Top 25 Container Lines
5-year overview
Capacity (TEU)
Carryings (TEU)
Capacity Index
Carryings Index
Car/Cap Ratio
Year ending 31 December
2009
2008
11,254,000
11,027,000
96,182,000
104,513,000
280
274
199
216
71
79
Source: Dynamar Top 25 (2010) Container Liner Operators
14 | Baltic Transport Journal | 2/2011
2007
9,956,000
101,383,000
247
209
85
2006
8,737,000
89,888,000
217
186
86
2005
7,607,000
68,909,000
189
142
75
1999
4,026,000
48,406,000
100
100
100
Maritime
of 2010, 116 units with a total capacity of nearly 706,000 TEU were ordered. Aren’t those shipping lines overstretching themselves? Why do
they take such risks and what are their colleagues doing about it?
The risks associated with the ongoing increase in tonnage have
meanwhile come to the forefront in quite an absurd fashion. By
September, after a 20-month drought, the first newbuilding orders
of substance were placed, while the (continuing) growth of volumes
started to normalise to pre-crisis proportions. Apparently, and in all
simplicity, the market interpreted these normal effects as prompt
capacity expansion and volume slowdown, respectively. Following
this, the unavoidable happened: rates started to fall. Instead of pulling
capacity, carriers sat by and watched it happening. Combined with
the ongoing delivery of very large vessels ordered in 2007/2008, this
resulted in a devastating rate war. Should they not be able to stop
this short notice, many lines would slip into the red again in 2011,
certainly if considering the current fuel cost levels.
Car/Cap Ratio
One of the many analyses in Dynamar’s Top 25 report shows that
the growth of these companies’ carryings has not kept pace with the
increase of their containership capacities at all. This is demonstrated
through the so-called “Car/Cap Ratio”, comparing indexed development of liftings with the same advance in capacity. It should be 100 or
more in an ideal carrier world. In reality, it has deteriorated each year.
With 1999 as the base year (100), in 2005, for example, the overall
Car/Cap Ratio fell to 91 points to decrease even further to 73 points
by 2009 (from 81 in 2008, when trade had still risen by 9%, the industry average for many years). Even if taking all the effects influencing
this ratio into account, the conclusion must be made that carriers are
expanding capacity faster than volumes justify.
Top 25
Currently, the world’s 25 largest liner shipping companies by TEU
capacity, account for:
• 77% of the world box equipment fleet
• 81% of the global full container trade
• 86% of the total container fleet capable of operating in liner services
• 85% of the total orderbook of cellular container capacity of all sizes
• 100% of all Very and Ultra Large Container Ships of over 7,500 and
10,000 TEU, respectively.
Not all of the Top 25 container carriers operate on a worldwide scale. Some of them are still largely dependent on one or a
few specific niches, such as CCNI (South America), Hamburg Süd
(South America, Australasia), HDS Lines (Middle East), MISC
(Asia), and PIL (Indian Ocean).
A smaller number of others operate on minimum five of
the six East-West routes and on four of the five North-South
areas. As such, they can be earmarked as “Actual Global Carriers”. These liners currently count thirteen and comprise, in
alphabetical order: APL, CMA CGM, Coscon, Evergreen Line,
Hanjin, Hapag-Lloyd, Hyundai, “K” Line, Maersk Line, MOL,
MSC, NYK and ZIM. Dirk Visser
“Top 25 (2010) Container Liner Operators – Trading Profiles”
(published at the beginning of 2011) is an annual, special liner shipping
report, issued by Dynamar B.V. – Shipping and Transport Information
and Consultancy of Alkmaar, the Netherlands. To learn more about the
company or the publication, please visit www.dynamar.com.
2/2011 | Baltic Transport Journal | 15
Maritime
Many routes will be closed
and new hubs will arise
Interview with Anders Refsgaard, Vice President of DFDS Group
DFDS finished last year with a total of 3.1 mln
freight units carried on its Baltic Sea routes (+7.2%
yoy). How do you view these results? Has the Baltic
market already recovered?
Photo: Port of Kiel
The volumes are getting better, but we are still about 10%
below freight traffic from 2008. Russia is really booming
now because of high oil prices and Poland has grown into
not only a huge consumption market but also an important
production site in Europe. On the other hand, I think it’s
too early to say the crisis is over. For instance, Denmark’s
goods exchange is still much smaller and its trade structure
has changed. ‘Volume-wise’ Denmark now has more import than export to the Eastern Baltic.
Which DFDS service performed the best in 2010?
Which one has the biggest potential?
We are actually happiest with the Kiel-Klaipėda corridor and its highest
annual growth of about 20%. I also think that there is still more potential
between Germany and Lithuania, however depending on the oil prices
and conditions of driving across Poland. Implementation of the road
toll in Poland from July 2011 should further improve the competitiveness of shipping and thus we are looking for this service improvement,
either by additional tonnage or by expanding capacity on the units we
already have. Before we invest in new ships we need to get rid of some
old tonnage, but we should be able to make some rotations at the end
of this year by acquiring a new vessel or chartering one.
What is the future of ro-ro shipping in our region? People
were expecting significant market consolidation, but this
did not happen…
So far the only real big acquisition in our sector has been DFDS acquiring Norfolkline, and then also our selling of two routes on the Irish Sea
to Stena Line, but further consolidation in both ro-ro and ro-pax markets seems inevitable in the foreseeable future. Due to shipping lines still
suffering from crisis and preparing for new environmental restrictions,
there will be huge pressure on cost-saving measures, like reduced port
stays and less bunker consumption. Today, even after slight increases,
freight rates are still 5-10% below the pre-crisis level, and this of course
has a huge effect on our budget line. Our clients cannot absorb higher
prices, also due to BAF becoming so high today, so cost cutting strategies towards suppliers are a key issue for shipping companies. It goes
to more efficient turnaround of the vessels and technology improvements, like e.g. our sea route-planning software onboard the vessels.
A strong need for process optimization (including navigation, loading
operations, etc.) will also lead to a trend of using your own vessels under your own management rather than time-chartered units. We will
definitely also see changes in the route layouts, as shipping companies
will look for alternative ports. Some hub-ports of today are not necessarily ideal from a shipping point of view with respect to distances.
Therefore, new hubs will arise in the Baltic.
16 | Baltic Transport Journal | 2/2011
Can you name these ports?
We, at DFDS, believe that Ust-Luga will become a major ro-ro gateway to Russia. I do not believe that the already expensive and congested St. Petersburg will improve its position in this sector as ro-ro
cargo requires a lot of space, and space is very limited there. It is then
only a matter of time when someone starts a regular line to Ust-Luga.
DFDS is now testing their ro-ro terminal and so far we have had very
positive experiences. It does not mean that we are going to completely withdraw from St. Petersburg. If the cargo is destined directly to
this area, shippers will just pay higher prices. Otherwise however, in
the long run, it does not make sense to keep services there. Again,
Klaipėda is the easternmost ice-free port on the shortest entry to Russia. I am sorry for Latvia and Estonia, but growing oil prices no longer
make it economically viable to steam that far from Germany, unless
maybe you are already in Russia at the final port of call.
Will new IMO regulations for sulphur emissions further
change the Baltic market?
Of course all shipping lines are in favour of minimizing their effect
on the environment, but forcing the emissions limit down to 0.1% is
simply not workable. If nothing is done here many ferry routes on the
Baltic will be closed. It will be a disaster particularly for long-haul services sailing along the coast, such as today’s most promising corridor
between Germany and the Baltics. This traffic will return to the roads
once shipping freight rates rise. Yet, the question is if Poland’s road
infrastructure can really absorb these extra volumes. We need a longer
transition period to develop proper solutions. LNG appears to be an
alternative but it still requires a lot of safety investigation. Meanwhile,
DFDS is testing scrubbers on two of our vessels. The bunker price, also
depending on sulphur restrictions, will be a crucial factor for the network layout. I think that in the future we will see fewer lines and bigger
ships in the Baltic as they crack less fuel per freight unit.
Piotr Trusiewicz
Maritime
We are a reliable business partner
An interview with Ryszard Strzyżewicz, President of the Port of Gdańsk Authority SA
Three years after his taking over the chair in the Port
of Gdańsk Authority, BTJ asks the company’s president
about the port’s recent successes and future prospects.
Attractive areas in the outer port have become operational and this is
of great significance for further port’s growth. This has also helped us
to sign a contract with SEA-Invest and Arcelor Mittal for developing
a Dry Bulk Terminal with handling capacity of min 15 mln tonnes in
both exports and imports. Our co-operation with DCT Gdańsk and
Maersk has resulted in developing the first Baltic container hub where
the world’s largest ocean vessels are already calling. As for the developments inside the company, the Port of Gdańsk Authority achieved
its best financial performance ever by modifying the organizational
structure and working out proper costs proportions.
Indeed, the port did generate an excellent handling results last
year, but liquid fuels still prevail in the overall cargo structure. Is any stabilization of oil transit from the east possible or
swings in supply are inevitable?
This is still a great unknown. Fuels transit is decided upon by the Russian side. Nevertheless, we are doing our best to stay competitive here in
Gdańsk, hoping at the same time that expansion on other markets will
be to our advantage. Liquids throughput shows a clear growth in both
exports and imports. This tendency, strengthened by developments
like PERN Handling Base (a new fuel terminal linked to the crude oil
pipelines networks) diminishes the importance of the Russian transit.
Last year Gdańsk was rated Poland’s largest container port
and DCT Gdańsk – the country’s largest container terminal.
Concurrently, the volumes handled by Gdańsk Container Terminal (GCT) dropped – is there enough room for two competing terminals in Gdańsk?
Our container terminals have their specific functions and are oriented towards different market segments. Finding the right privatization partner for Port of Gdańsk Cargo Logistics (PGE) – the largest universal operator in Gdańsk and the owner of GCT – may spur
the terminal development.
In September, the Russians are to open a new deepwater container terminal in Ust-Luga. Are you not afraid that this may
eliminate Gdańsk’s transshipment towards Russia?
Transshipment is an effect of DCT’s independent decisions. Not long
ago many experts were questioning the economic sense of container
mother vessels in the Baltic, while this has become a fact today. Forecasting some phenomena is an extremely difficult thing to do, but
for many reasons Russian ports are not the only way to Russia. The
transit can be expected to grow along after improving Gdańsk’s road
accessibility. Moreover, opinions are heard that Ust-Luga will never
offer as good navigation conditions in winter as Gdańsk.
Photo: Grzegorz Mierkiewicz, ZMPG SA
What do you consider as the port’s greatest achievements of the
last three years?
What is going to happen to Westerplatte Ferry Terminal, considering there is no large turning basin there?
Ferries and ro-ro vessels of various sizes sail in the Baltic Sea. There
are also historical determinants for our terminal being underused
today, but the Baltic’s largest ferry and cruise operators today calling Gdynia might also call at the neighbouring Gdańsk in future.
After new road connection to A1 motorway going down to the
south of Poland become operational, Westerplatte terminal can expect a positive change. This is another area in which we count on
PGE’s external investor to show some initiative.
Is the port considering the option to withdraw from quays in
the Inner Port, like the general cargo terminal, and to hand
this area over to the city?
These quays are actually generating a significant part of the port’s
revenues today, so we cannot be expected to initiate a step like this
on our own. It is true that the inner port, with its very old infrastructure, requires major maintenance and modernization, but potential
privatization partners are not that radical in this matter. The final
stage of the privatization process will clarify many doubts here, as it
will be preceded by comprehensive analyses of economic efficiency.
Therefore we are admitting that withdrawing from some parts of
the port in the future could be an option.
What are the greatest challenges for the port in the next three
years?
First of all, finalizing privatization process of PGE and intensification of
operational functions at this operator’s quays. In my opinion, Gdańsk’s
position in Poland will be growing, and by confirming our leadership in
cargo handlings we want to become more visible in Europe and more
attractive to global investors. We are interested in accommodating new
industrial and logistic developments within the port areas located at the
quays’ close hinterland, especially projects that need the port facilities
for technological reasons. Such brands as Maersk, SEA-Invest, Arcelor Mittal or Goodman prove that Gdańsk can be trusted as a business
partner, and will attract more market players.
Piotr Trusiewicz
2/2011 | Baltic Transport Journal | 17
Maritime
No need to worry about the future
Photo: HHM
Photo: Hapag-Lloyd
Interview with Claudia Roller, CEO of Port of Hamburg Marketing (HHM)
HHM is a private association that takes care of the marketing activities of the Port of Hamburg and its neighbouring ports in the region, among others. Last year with the positive trend in the world economy, the
growth course returned to Hamburg, allowing the port to reach stabilization. We talk with Claudia Roller,
director of the executive board of Port of Hamburg Marketing, about the Baltic market.
In the Hamburg city-state’s election in
February the SPD gained a majority in
parliament, defeating the ruling CDU
party. Will this change in any way affect the port’s business?
Port planning and investments in infrastructure are long-term processes. The elected SPD
senate demonstrates strong support and interest to strengthen the port as well as to invest and
develop the Hamburg port and its infrastructure. One major topic for the new senate is to
bring forward the Elbe dredging project. Today
incoming ships using the tidal wave are limited
to 15.10 m draught. The dredging project will
allow one meter more. My impression is that
many port, cargo and shipping-related companies in Hamburg expect positive support coming from the new senate.
For more than a year now ocean-going container ships of Maersk Line
have been calling at Gdańsk and from
there transshipping to Russia and Finland. How do you evaluate the loss of
Hamburg to Gdańsk? And what about
Gothenburg and Aarhus?
The straight impact of direct calls at Gdańsk
on Hamburg is limited as it is Bremerhaven
18 | Baltic Transport Journal | 2/2011
and Rotterdam which Maersk Line uses as
hub ports for transshipment. That means that
for Maersk Hamburg is the final destination
and in this respect it is not competing with any
Baltic seaports. On the other hand, we have
seen a modal shift caused by direct service to
Gdańsk as rail transportation of containers
has been partly replaced by deliveries of containers onboard of AE10 ships. We assume
that suspending an ERS rail service from Rotterdam to Warsaw was an implication of that
fact. Generally, those rail or road connections,
which could be replaced by a feeder ship connection, suffered during the economic downturn. In 2009 there were almost 203,000 TEU
shipped between Hamburg and Polish ports
by sea and in 2010 this number dropped to
178,000 TEU. Nevertheless, that has nothing
to do with Maersk and it was a result of the
more aggressive price policy of our western
competitors on one side and the worldwide
economic slowdown on the other. Today the
development of the feeder and landside container traffic via Hamburg is more than just
very positive and the newest figures from 2011
indicate that Poland may already be back on
the list of the top 10 partners of Port of Hamburg after a temporary drop in the last year.
But not only feeder ship connections are important for the traffic with Poland, as many
containers are being moved by either rail or
truck. On the landside, we estimate that rail
traffic between Hamburg and Poland dropped
to 80,000 TEU in 2009 and remained at that
level in 2010. The transport of containers by
truck declined significantly in 2009 to around
90,000 TEU and rose to over 120,000 TEU in
2010. For 2011 we expect further growth. Last
year Hamburg’s container trade by feeder to
and from ports in Denmark grew by 7% and
increased to 158,000 TEU, and as far as Sweden is concerned, we handled 259,000 TEU.
The latter outcome was only 2% lower than in
2009.
Do you think the amount of container traffic to the Baltic bypassing North Sea hubs
will increase? Do you foresee more ocean
shipping lines prolonging their services to
the Baltic in the nearest future?
Actually, established direct services to the Baltic exist due to the recent situation of shipping
(low bunker and charter costs) during and after the economic crisis. The extension of Maersk’s Far-East service from Gothenburg and
Aarhus to Gdańsk was only a small additional
expenditure. The situation today and for other
carriers is considerably different; that’s why I
do not see much potential for further direct
Maritime
connections. The enlargement of feeder traffic to the Baltic seems more likely, because
feeder ships serve the markets directly and
flexible up to the ice-covered area in the Gulf
of Finland and Bothnia. Port of Hamburg is
well prepared for more transshipment as it is
located near the (to be enlarged) Kiel-Canal
and the recently introduced Feeder-LogistikZentrale (FLZ) routes feeder ships quickly
and efficiently through the port. By the way,
in Northern Europe, Hamburg has the most
dense feeder network to the Baltic.
Ships) in 2011 after 125 calls in 2010. We are
well prepared for that. Anyway, I doubt that
the introduction of 13,000 TEU ships to the
Maersk AE10 service will lead to a performance
increase in Gdańsk. Superstructure restrictions
are still an issue there.
Maersk Line has recently upgraded its
AE10 service with vessels of over 13-15
thou. TEU capacity and added the ports
of Rotterdam and Bremerhaven to the
line on its westbound way to the Baltic,
meanwhile cancelling a stop at Zeebrugge.
Do these changes affect Hamburg?
From an expert’s point of view, the Maersk
calls do not provide any evidence that Gdańsk
is a Baltic container hub. A hub usually offers
comprehensive services. Hamburg for example
serves all Baltic neighbouring countries and offers more than 150 departures per week, unlike
Gdańsk, which only has two independent oneship feeder connections, one to Russia and another to Finland, both operated by Maersk.
Since Maersk is not a major transshipment carrier in Hamburg, impacts of the adjustments
will be limited and primarily the change will
affect the ports referred to. In general, the introduction of larger ships does influence our
port. In Hamburg we host 27 services in the
Far-East – Europe trade lane and we expect up
to 300 calls of container ships with a capacity of
10,000 TEU and larger (Ultra Large Container
Your colleague Hendrik Lorenz said at the
conference in Gdynia in 2007: “…a single
hub would not be established on the Baltic
Sea.” Would you like to comment on this
from today’s perspective?
Could you tell us how the opening of
JadeWeserPort will influence Hamburg?
How is the port preparing for changes on
the market?
We know that JWP will offer three berths at
this new container terminal starting operation
in August 2012. Maersk is its one major partner and we expect that the company will use
JWP mainly as a dedicated terminal for transshipment cargo to and from the BSR. In Hamburg Maersk is calling with liner services – two
container terminals operated by Eurogate and
HHLA Burchardkai (CTB). But the major
volumes and traffic Maersk will centralize at
its own NTB terminal in Bremerhaven. Our
impression is that Maersk is concentrating
transshipment boxes in Bremerhaven, which
at least to some extent might be moved to
JadeWeserPort. It is difficult to make a forecast now but we expect that JWP will not have
a big impact on Hamburg’s market position
as Germany’s leading container port. Another
question is whether enough capacity is left for
other carriers at this terminal in Wilhelmshaven and if others are interested to call at this terminal. Wilhelmshaven is not an industrial or
trading city and has no local cargo volumes,
as for example in Hamburg, where you have
many trading, industrial and logistics companies generating export and import cargo. This
is one reason why we do not expect that some
of these Hamburg-based companies will move
to Wilhelmshaven or that shipping lines will
move to JWP.
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2/2011 | Baltic Transport Journal | 19
Maritime
LNG as vessel fuel and the issues concerning ship emissions
Discussion is good and, having worked within several areas of LNG business, we would like to contribute
to the ongoing LNG debate with a short response to the article Sobering up the future vessel fuel battle
(BTJ 1/2011) by Dr. Per Olaf Brett on the challenging issues of ship emissions.
T
he article has many good ideas,
such as increasing load factors,
shortening port times, speed reductions, and wider bodied ships.
We like to look across the silos to
try to get the full picture: the abovementioned
proposals could be combined with LNG and
result in achieving even greater savings.
frastructure which incorporate synergies by
integrating several types of users add value too;
Volvo has trucks running on LNG and there
could be synergies e.g. in ferry ports for fuelling
both land and sea traffic from the same terminal. Gas grids could get an additional delivery
point, and biogas suppliers could get a back-up
resource and access to new markets.
Is the future now? Tipping point
Dr. Brett’s main concern regarding LNG
lies in the area of expenditures – both of
added installation costs and fuel costs. There
are some practical challenges on the ships
and getting infrastructure in place, but these
are already business opportunities for some.
This is always the case with new technology
– costs are often more easily quantifiable than
income.
Ship engine manufacturers have seen the
potential and several are building gas-fuelled
engines (or they are enabling their land-based
gas engines to be used in ships). Wärtsilä and
Rolls-Royce have been the main pioneers,
but also Cummins, Caterpillar, Mitsubishi
and MAN have come a long way in developing gas-driven marine engines. Increased
competition is good for the market, both in
terms of innovation and cost reduction.
Even though the market for LNG as marine
fuel is still small, it is becoming a competitor to
high quality oil products in Northern Europe.
Wholesale LNG prices are at times lower than
those of oil products and this trend may extend
to fuel providers sourcing the fuel directly from
large scale terminals, such as Gate (The Netherlands), Zeebrugge (Belgium) and Świnoujście
(Poland). Further, scrubbers and other environmentally driven investments are avoided.
Developing attractive business models for in-
Which energy source should one commit to?
Oil is a finite resource already struggling to
meet growing demand (partly due to political
issues, e.g. Iraq, Libya, Iran) and it is controlled by the OPEC cartel. High oil prices are motivating more shipping companies to look for
new solutions. Gas is an abundant resource,
and over the past few years huge additional reserves have become economically accessible in
the form of unconventional gas. The US and
China plan to reduce their oil imports by using these enormous gas supplies for electricity
generation and transportation. This, in itself,
will de-link oil and gas prices.
With the new IMO requirements, demand
for low sulphur oil will rise and be at risk of significantly higher prices – especially after 2015.
For refineries to meet the increasing demand
for low sulphur oil products, investments in
the hundred-billion-dollar range are needed,
affecting the market price. Installing scrubbers
is another option, but this is also expensive.
20 | Baltic Transport Journal | 2/2011
Speeding up LNG
The governments can help by putting
regulations in place in order to avoid long
term uncertainty. Markets will develop
faster with better clarity than today. Also,
seeing national value in reduced emissions
may help finance initial infrastructure.
Photo: BW Gas
Meeting several targets at once
There are not many sellers and those who
sell often prefer long term contracts linked to
oil, very different from the functioning of oil
markets. Buyers renegotiate agreements and
few new contracts linked to oil are entered into.
Compared to bunker oil, the LNG fuel business
is currently slow and secretive, and buyers need
to spend a lot of time and effort on negotiating
inflexible long term contracts with a limited
number of suppliers. Proper risk management
and flexibility is important when contracting
for LNG; future developments are uncertain
and building optionality into the business
model and contracts is essential, but big savings
could become available long term.
Going forward, we think a new breed of
suppliers will enter with improved solutions
bringing liquidity; this will improve competition and speed up the LNG market. There is a
large potential in this market on a global scale
and early steps are already being taken in order
to use LNG-driven ships in the US, Southeast
Asia and even China. In fact, China’s National
Development Reform Commission has decided that by 2020 the use of natural gas shall
quadruple, with emphasis on the transportation sector. If the country decides to expand its
fast growing fleet with LNG-driven ships, we
could see a big difference in technology costs
and even infrastructure solutions.
The shipping industry faces many challenges today, such as fuel costs and increasing environmental expectations, with the
focus not only on spills in the sea, but also
NOx, SOx and particulate emissions into
the air. Liquefied Natural Gas indeed seems
to be the best solution.
Stig Kallestad, Karen Sund, Alex Engh
Sund Energy
Maritime
Finnish transit transport
Will Russia’s growth boost Finland’s opportunities?
A recent study carried out by Shortsea Promotion Centre Finland and University of Turku’s Centre for Maritime Studies (CMS) gives clear guidance on how transit traffic volumes through Finland can be retained or
even strengthened. The conclusions were based on an extensive survey and interviews of Finnish stakeholders. In addition SPC Finland´s workshop gathered experts to discuss transit transport scenarios.
F
Development of transit transport via
Finland
The amount of transit traffic more than
doubled during the period of 1980-2008, being
8.4 mln tonnes in 2008. Due to the recession,
eastbound transit decreased, whereas westbound remained at the same level in 2008 and
2009. In 2010 Finland’s transit traffic recovered
quickly from the downturn and amounted to
7.4 mln tonnes (+18% yoy), of which imports
comprised 2.1 mln tonnes and exports 5.3 mln
tonnes. In regards to imports, container transport of general cargo increased by 32%.
The changes in volumes strongly affect
the whole logistics chain, in eastbound transit
traffic the valuable goods arrive to a Finnish
port usually in containers, from which goods
are reloaded to trailer lorries. The Finnish
industry may thus use empty containers for
their export shipments for quite a reasonable
price. Transit transport is one reason that
Finland has good liner connections.
Main routes to Russia
The study considered the transit transport
routes of Finland, the Baltic States and Russia’s
ports with a maritime leg on the Baltic Sea, as
well as the land route via Germany and Poland.
The Finnish transit route is the main one for
transporting high-value goods from the European Union to Russia. The new HaminaKotka Port is the most important transit port of
Finland. Kokkola, Hanko and Helsinki are also
significant in this context.
The route via the Baltics has mainly
been used in westbound oil transports but
Photo: Port of Kotka
inland has had and will continue
to have a good position in the transit transports to and from Russia.
Many of its ports are located near
major market areas and safety and
efficiency can be guaranteed under all circumstances. Due to specialization and efficient
port operations Finland´s route is competitive
in pricing even in bulk transports from Russia. According to the study, new traffic can be
gained by developing the general conditions
of transit transports and with new means. For
example, the dialogue between administrations and businesses has to be intensified.
some of their ports (e.g. Klaipėda, Riga and
Tallinn) also increasingly handle amounts
of eastbound transit goods. The land route
via Germany and Poland is geographically
the shortest one between the EU and Russia’s core areas but transit times on it may be
prolonged due to the high number of border
crossings and related waiting times as well
as traffic congestions.
Russia’s ports on the Baltic Sea are a natural choice for its foreign trade transports from
the country’s point of view. Currently, the logistics capacity of Russia is not able to satisfy
the continually growing needs of its foreign
trade. Conditions may be slightly different
when the Port of Ust-Luga becomes fully operational. In the inquiries, Russian transport
policy, which concentrates traffic on Russian
ports, is not seen as the end to Finnish transit
traffic. The inquirers paid attention to the fact
that ocean-liners already call in Gdańsk, and
Poland is becoming a hub. These changes will
be affecting the transit routes.
Trans-European Transport Networks
Transit transport is gaining an advantage
with the development of TEN-T. Motorways
of the Baltic Sea, Nordic Triangle and Rail
Baltica are TEN-T priority projects within
the BSR, also linking transit transport of the
Baltic states with Finland. The EU is currently reviewing its policy on TEN-T as a part of
the Europe 2020 Strategy. According to the
proposal, the renewed network will consist
of two layers – a core and a comprehensive
network. The first one will include the main
corridors and nodes within the EU internal
market. The plans also note linking of EU
corridors with third countries, its neighbouring states and other parts of the world.
Riitta Pöntynen, Pekka Sundberg, Antti Posti
Centre for Maritime Studies
University of Turku’s CMS is one of the
main research institutes in the field of transit
transport. CMS investigates this matter both
in a theoretical and practical perspective in
order to produce valuable information about
transit traffic for both the needs of business
and society. Shortsea Promotion Centre Finland operates as part of University of Turku’s
CMS. The study report is available in Finnish
on SPC Finland’s website at: www.shortsea.fi.
2/2011 | Baltic Transport Journal | 21
Commercial offshore wind farms on the Germany’s Baltic waters
Now let the wind blow
The Baltic Sea’s breath is expected to power many
wind farms in the coming years. Germany, as well as
Denmark, Sweden and Finland, is successfully investing in offshore wind parks in the sea. The increasing
relevance of this industry to Germany’s energy and industrial policy will also make it more significant within
the context of the country’s overall economy.
T
he Baltic has been tilting towards offshore windmills since
1991, when Danish Vindeby Power Station was built. It was
only the beginning – the total amount of offshore wind energy (OWE) capacity in the Baltic waters for September 2010
reached approx. 645 MW. The majority of already existing
Baltic wind parks are owned by Denmark. It’s enough to mention the
Nysted Wind Farm, close to Lolland island. 72 turbines called Rødsand
1 have a total capacity of 166 MW. The farm’s extension, Rødsand 2, has
been providing an additional 207 MW since 2010. Sweden, on the other
hand, is planning a spectacular wind park on two shallow areas named
“Finngrunden”, around 40 km off the country’s east coast, outside the
town of Gävle. The works on a 1.5 GW farm (300 turbines of 5 MW each)
are intended to start in 2014, bringing into being Scandinavia’s biggest
offshore wind park.
Germany’s ‘offshore strategy’
German waters are currently home to 15 WTGs (Wind Turbine Generators) with a capacity of 72 MW. Although the country
has concentrated its offshore wind farms mainly in the North Sea,
its government’s target of approx. 30% renewable energy production
by 2020 (with wind energy being a major contributor), has made it
further invest in the Baltic region. According to KPMG, a global network of firms providing audit, tax and advisory services, today’s offshore wind industry requires systematic government support during
its development phase. Currently, a number of measures designed to
22 | Baltic Transport Journal | 2/2011
Energy substraction of the Baltic 1, Photo: Heiko chone, Gunnar Richter
Maritime
improve basic conditions for offshore wind projects in Germany are
under discussion. The aim is to accelerate the construction of a first
wave of commercial offshore windpower plants (OWPs).
In 2010 the first two commercial offshore projects commenced
construction in German waters. Baltic 1 with 21 turbines (each of 2.3
MW rated capacity) in the Baltic Sea, as well as BARD Offshore 1 with
80 turbines (5 MW rated capacity each) in the North Sea. Baltic 1 Offshore Wind Farm is implemented by the third-largest energy company in Germany – Energie Baden-Württemberg (EnBW). Located
around 16 km north of the Fischland-Darß-Zingst peninsula and
covering 7 km2, Baltic 1 will produce 48.3 MW of environmentallyfriendly energy. The substation and all 21 Siemens SWT-2.3-93 turbines are already in place, and energy production is to begin shortly.
EnBW, an energy company engaged in the generation, transmission and distribution of electricity and natural gas, has already
awarded another contract for pre-piling and installation works to
construct a six times bigger offshore wind farm than the one mentioned before – EnBW Baltic 2 (previously Kriegers Flak).
Baltic 2
Germany’s second commercial offshore wind farm in the Baltic
Sea will be located 32 km north of the country’s largest island – Rügen. An area of approximately 27 km2 will see the installation of 80
Siemens SWT 3.6-120 wind turbines (3.6 MW each, a rotor diameter
of 120 m), creating a farm with a total capacity of 288 MW. It will be
more than the biggest operating offshore wind farm in the Baltic Sea
– Rødsand 2 (207 MW). The EUR 382 mln contract has been awarded
to the joint venture of Nordsee-GeoSea-Hochtief (all part of DEME
Group), following a European tender bidding procedure, which included design and technical proposals as well as a financial bid.
With the use of special platforms for wind farm construction, which
will help to anchor the 670-tonne foundations to the floor of the sea at
depths of up to 44 m, the contractor will place 80 turbines partly on monopiles and partly on jackets, depending on the quality of the sea bottom
Photo: DEME
Maritime
and the water depths. Delivery and installation of the network connection
cable will be provided by Norddeutsche Seekabelwerke – NSW (General
Cable Group). Altogether 120 km of 150 kV high-voltage submarine cable and 16 km of underground cable for onshore installation will be deployed. Baltic 2 Offshore Wind Farm will generate 1,200 giga watt-hours
of green power annually, providing electricity for approximately 340,000
households, and will help to keep the planet clean by reducing CO2 emissions by up to 900,000 tonnes. The offshore works will start in 2012 and
the power plant is scheduled to come on line in 2013.
Hubs for wind parks
Development of the German OWP industry is going to influence
the country’s ports’ expansion as well. EnBW has chosen the deepwater
port of Sassnitz Mukran on the island of Rügen as a support and components assembly base for Baltic 2 because it offers a heavy load area
and a sufficient water depth for the transport vessels and a short distance to the wind power project. The 60,000 m2 so-called “Offshore
wind power base Mukran” will be established in the southern part
of the port in order to enable putting turbines together and loading
them onto installation vessels in 2012. In addition, EnBW will rent
offices in the port, which will become the location of the construction
management coordinating the work at sea.
In the immediate vicinity of the base, on which the components are
assembled, Nordsee-GeoSea-Hochtief plans to establish another set of
up to 80,000 m2 area for a logistics base for the foundation work for Baltic
2. As Stefan Thiele, Chairman of EnBW Renewable Energy stated, “our
project paves the way for the island of Rügen to become one of the leading locations for the installation of offshore wind turbines in the BSR.”
Preparations for the construction of the offshore wind power
base started in the spring of 2010. “We are creating an infrastructure,
for EnBW Baltic 2 and future offshore projects which uses our site’s
advantages – from the water depth and the location to the availability of additional industrial space – and which gives us an important
position in the market”, said Harm Sievers, CEO of Fährhafen Sassnitz. The parties rely on the support of the regional construction industry and regional craft with this so-called South Port Expansion.
The two wind farms of EnBW are just the beginning for the use of
renewable energies near the coast of Rügen. The Sassnitz Mukran
example shows that OWP investments are a useful tool in strengthening the economy on the German Baltic coast and may become
a significant impulse for other Baltic ports’ expansion projects.
Krzysztof Czaja, Lena Lorenc
2/2011 | Baltic Transport Journal | 23
Maritime
Port community systems – the Finnish case
Securing effective information exchange
The management of port-related supply chains is challenging due to the
complexity of operations and heterogeneous actors in the ports. The aspect
of ports’ efficiency has become even more important than before due to the
growth in world trade and freight traffic.
T
he significance of information sharing is emphasised in the ports where multiple transport modes, shipments and actors are present. The information exchange between different port-related actors is often cumbersome, and it still involves a lot of manual work
and paper. Even though major ports and port-related actors usually have advanced information systems in daily use, these systems are seldom interoperable with each other,
thereby preventing economies of scale to be reached. Smaller ports and companies might not be
equipped with electronic data transmission at all.
Table 1. Examples of PCS around the world
PCS
ADEMAR
BHT
DAKOSY
Destin8
Easyport
EDI
eModal
FIRST
GASYNET
Harbour View
Indian Port Community System
KleinPort
Nanhai Port Community System
PACE
PLUS
Port Klang Community System
Portbase
PortBIS
PortIC
Port-MIS
PORTNET
PortXcs
PROTIS
Seagha
SPIN
Tradelink
TradeNet
TradeXchange
Valenciaportpcs.net
Port(s) where the system is in use
Le Havre
Bremen
Hamburg
Felixstowe, Harwich, Ipswich, Immingham, Hull, Teesport, Tyne,
Grangemouth, Aberdeen, Glasgow, Liverpool, Bristol, Thamesport, the
Medway Ports, Tilbury, Greenock, Great Yarmouth and approximately
70 inside customs places
Yantai
Kobe
Many ports and logistics terminals in the US
New York and New Jersey
National system in Madagascar
e.g. Melbourne, Tanzania and several Belgian ports
National system in India
Several ports in America, Australia and Europe
Nanhai
London
Gothenburg, Johor, Mombasa and Muscat
Klang
Amsterdam and Rotterdam
National system in Australia
Barcelona
National system in Korea
Seattle and Singapore
Zeeland
Marseille
Antwerp
Southampton
Hong Kong
National system in several countries (e.g. Ivory Coast, Mauritius and
Singapore)
Singapore
Valencia
In order to improve information exchange of port-related supply chains, many ports
around the world (see Table 1) have developed port community systems (PCS) to serve
comprehensively information exchange within the port community. The existing PCS are
designed specifically for large container ports. The question remains, is it possible to apply
these systems in smaller ports as well? This article, based on a study carried out in Finland
in 2010 by the University of Turku’s Centre for Maritime Studies, describes what kind of
PCS would be suitable for the Finnish port operating environment.
24 | Baltic Transport Journal | 2/2011
A port community system in general
A PCS system can be defined as a holistic
information hub that seamlessly integrates a
heterogeneous collective of port-related actors electronically into a global transportation network in order to enable the efficient
exchange of relevant logistics information and
hence to ensure the smooth flow of shipments
from cargo origin to destination. When using
a port community system, there is no need for
bilateral communication and multiple communication methods between different parties
because every port-related actor sends its information to the central system, which can be
accessed by other parties to get the information needed. PCS systems offer the users a Single Window based solution for information
exchange, which makes it possible to lodge
standardised information and documents
with a single entry point so that individual data
elements only need to be submitted once. The
potential benefits of PCS systems are manifold:
decreased clerical and paperwork, improved
information quality and integrity, enhanced
efficiency and customer satisfaction, reduced
costs and delivery times, etc. For example, it
has been reported that with the national PortMIS system used in Korea it has been possible
to reach logistics cost savings of USD 100 mln
mainly due to reducing personnel and paper
work and harmonization and automation of
the port-related systems.
The present situation
The information systems and services used
in Finnish ports can be considered quite advanced and comprehensive. Examples are the
nationwide vessel traffic information system
PortNet for company-authority information
exchange, the mandatory ship reporting system GOFREP, the traffic information system
IBNet for icebreaking purposes, the enterprise
resource planning system Port Data System
for port authorities and Visy Gate – an automated access and area control system used in
several Finnish ports. In addition, port-related
actors (e.g. port authorities, port operators,
shipping companies, and forwarding companies) use different kinds of commercial information systems that are usually tailored to
meet the needs of each company. Despite the
above, information sharing in a typical Finnish port-related supply chain has several bottlenecks that cause delays in shipments and
result in wasting resources. The main reasons
behind these bottlenecks are extensive use of
Maritime
traditional bilateral communication methods (e.g. paper documents, telephone, fax and email),
a large number and diversity of documents/messages (the same data must be entered many
times into several places) and incompatibility of information systems of different port-related actors. The practices and requirements also vary between different actors, ports and states,
which cause problems in information exchange. Further, the information systems and services
used in Finnish ports are quite scattered from a user’s point of view. They are also more or less
orientated to serve the needs of the authorities in the maritime environment while less attention
is paid to land-side transportations and the business needs of companies.
Promoting information exchange
PCS around the world appear to be concentrating on container ports with an annual handling
volume of 1 mln TEU or more. Compared to these numbers, the Finnish ports are relatively small.
In 2009, the total container volume of foreign traffic in Finnish seaports was approximately 1.1 mln
TEU, in 2010 the figure increased to 1.24 mln TEU. Besides container ports, PCS can certainly be
applied in those handling other kinds of freight (e.g. dry and liquid bulk, ro-ro traffic). However,
even if the smallest Finnish ports and port-related actors are to be included as part of a port community system, then the establishment of a national PCS might be the most suitable solution.
Authorities and the largest companies operating in Finnish ports have already established practices for data exchange. A port community system can be used to solve the information flow problems that have not yet been resolved in other ways, e.g. electrification of
the data exchange between the small companies and other port actors.
The user groups of the Finnish PCS are to be port authorities and companies operating
in the ports as producers of the information, and their customers, as the receivers. The PCS
should also have interfaces with other maritime and port-related information systems, for
example PortNet. Its core would consist of the exchange of event and exception information
(especially focused towards land-based transport customers) as well as instructions concerning the ports and other similar port-related information, and the support services required
by the use of the system. The transmission of data would be based on the message traffic (e.g.
EDI and XML messages) between different information systems, and manual solutions would
only be utilised when a message-based alternative is not available.
In order to make funding of the Finnish PCS possible, its costs should be kept as small
as possible, and, therefore, the open source code solutions would be worth considering
when purchasing the software for the system. Incorporation of the PCS’ functions
into the existing service centre would be the
most reasonable solution since it involves
less economic risk and needs less own staff
compared to a separate service centre.
The promotion of the Finnish port
community system would need a broadbased development community to which
ports and port-related companies would
commit themselves and which would make
decisions on what services to be implemented, find the necessary financing for
the investments, act as a commissioner of
development projects, and take responsibility for the operating costs of the technical environment further on.
Implementation of the Finnish PCS is
planned to be phased in by using a modular implementation approach in which each
module has clear objectives and concrete
benefits for all parties involved. During
2011, a mini-scale port community system
is going to be built in the new HaminaKotka port and the ideas developed during this
project can be tested. If the system proves a
useful tool, it could be extended in the form
of a national port community system.
Ulla Tapaninen, professor
Antti Posti, researcher
Centre for Maritime Studies, University of Turku, Finland
2/2011 | Baltic Transport Journal | 25
Maritime
Ready for new challenges
Photo: ADP
Photo: ADP
Interview with Ole Haugsted Jørgensen, Sales & Marketing Manager, ADP
The company Associated Danish Ports owns and manages Fredericia, Nyborg and Middelfart – some of the leading ports in Denmark. The year 2010, which brought promising trends to the market, was busy and challenging
for ADP’s ports. About the company’s results from last year we talk with Ole Haugsted Jørgensen.
2010 brought an impressive outcome for ADP, with a total
freight turnover at the three ports of 13.7 mln tonnes. What
brought about this improvement?
Last year Associated Danish Ports celebrated its 10-year anniversary
and throughout this period we have witnessed growth and expansion
in many of our most important business segments. I believe that the
underlying key to ADP’s success is the strategic geographic location
of our ports, but its true value materializes only in combination with
innovative business partners, investments, infrastructure, equipment
– and not least the mindset of our organization. And, this right mix
of commodities and activities in our ports has been a focal issue for us
since the establishment of ADP in 2000. The previous year our efforts
indeed materialized; our container traffic grew by 50%, our ro-ro traffic
– by 30%, export of grain reached an all-time high and two offshore
wind farms were shipped out. Continuous growth also requires some
hardware and in 2010 we were busy constructing two new quays and
planning the integration of new hinterland. Throughout the first decade of our company’s existence we witnessed significant fluctuations
within specific commodities, economic slowdowns and a consolidation
process in many industries – factors which have impacted our business. We trust that the coming decade will also present both challenges
and opportunities and we are currently preparing ADP’s ports for the
future through our long-term planning and investment programme.
We will continue to listen to the market and strive to be the preferred
business partner for the shipping industry.
As you said, the container throughput increased by 50% last
year and reached its best result ever of over 50,000 TEU. Which
line contributed the most to these figures?
We believe that several factors contributed to this success: transport
buyers seeking a competitive and environmentally friendly alternative,
26 | Baltic Transport Journal | 2/2011
shipping lines seeing a potential for new business and not least the forward-looking local shipping company Fredericia Shipping, which has
been an instrument in the positive development of container traffic.
Our port in Fredericia is currently being served by five regular shipping lines. Unifeeder offers two weekly calls and CMA-CGM and MSC
each offers weekly calls. In 2011 these lines were supplemented by
Team Lines with one weekly call and recently Green Feeder with one
weekly call as well. Together with the entrance of each new line we have
witnessed increasing volumes and we believe that there is a substantial
basis for additional growth. The currently constructed new quay will
form an integrated part of our new container facility.
Grain handlings doubled in 2010, as over 500,000 tonnes of grain
was exported via Fredericia, setting a new record for this type of
freight. Dry bulk is a business area where ADP has made major
investments in port facilities. Can you reveal more on this?
It is correct that ADP is actively involved in more segments within dry bulk, such as agribulk, biofuel and construction materials.
Focusing on agribulk we consider our port in Fredericia to be a
‘flow port’, meaning that large quantities can be handled efficiently
within a short time frame. For example, when we discharge a Panamax with 50,000 tonnes of feedstuff from South America, approx.
80% of the volume leaves the port directly on truck. This means a
better supply-chain for the customer with less handling and less
warehousing. The flow concept can naturally be combined with
storage at the port – both ADP and the shipping companies have
substantial cargo space dedicated to agribulk. The export of grain
in 2010 illustrates the ‘flow port’ concept. The harvest was severely
influenced by the heavy rain, and grain was literally received directly from the fields in a massive flow. Through a concerted team
effort the grain was received, stored and subsequently shipped
to the world market within a very short time. Another seasonal
Maritime
commodity is road salt and like most of Europe, Denmark experienced a rough winter season 2010/2011, with snow and icy
roads. The demand for road salt increased dramatically and we
saw it being imported from more distant origins. One example
was the discharge of a shipment of road salt imported directly
from Australia on MV Iron Man. The vessel arrived on January
23rd and left the port on January 27th having discharged 70,000
tonnes. Our ‘flow port’ concept is backed by a fleet of 10 cranes,
15 m of water depth, direct access to motorway E20 east/west and
E45 north/south and rail tracks on all quays. This concept is also
directly linked to the geographical location – at the entrance to
the Baltic Sea, in the middle of Denmark.
How about offshore wind turbines and other project cargo traffic?
Last year was in fact a very interesting one with respect to project
cargo. We signed an agreement with E.On Wind Sweden for the
use of our port in Nyborg as a preassembly site for the Rødsand II
offshore windfarm. Subsequently, EnBW took over the site for the
Baltic 1 offshore windfarm. A total of 111 wind-turbines for the
two projects were supplied by Siemens Wind Power. Currently,
there are several new offshore windfarm projects in the pipeline
for the Baltic Sea, involving German, Swedish and Danish windfarms. Given Nyborg’s track record with four successful offshore
windfarm projects so far, we will continue to market the port as
the most efficient preassembly site for the western Baltic Sea. The
decision to construct a fixed link between Denmark and Germany
across the Fehmarn Belt was recently taken and since Nyborg was
specifically designed as a construction site for the western part of
the Great Belt Bridge, it is only natural to suggest our port as the
construction site for the Fehmarn Belt connection. We are at this
stage in early talks with the Femern consortium.
At the beginning you mentioned the investments, could you give
our readers more details on the expansion projects of ADP?
At the Port of Fredericia we are currently building a new quay – 19 – with
a length of 260 m and a water depth of 15 m; also, we are simultaneously
extending Quay 18 by 50 m to better accommodate the larger ro-ro vessels calling at the port. This expansion project forms an integrated part of
our long-term master plan for Fredericia until 2040. The project involves
a new hinterland of 15,000 m2 as well. The new quay and the hinterland
will be designated to our unitised traffic. ADP is investing approx. EUR
16 mln and the new area will be ready for use in late summer of 2011.
Another part of the master plan for Fredericia, is an expansion project
worth approx. EUR 9 mln; it involves the acquisition of 50,000 m2 of hinterland. We have already started the integration of the area which will
involve new infrastructure for road and rail as well as its preparation for
new customers and activities. Once completed it will be integrated into
the central port area, offering 15 m of water depth, a large fleet of portal and mobile cranes, direct access to the motorway and quayside rail
tracks. This project is expected to be completed by November 2011. And
last but not least, as far as Nyborg is concerned, we are currently extending our 11 m deepwater quay by 165 m, to cater to new activities and
specific projects, e.g. offshore wind projects in the Baltic Sea. This investment also involves the creation of new hinterland of 18,000 m2 which will
be specifically designed to accommodate heavy loads in connection with
project shipments. ADP is investing approx. EUR 4 mln into this project,
and it is expected to be completed by the end of 2011.
Lena Lorenc
2/2011 | Baltic Transport Journal | 27
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Special
Photo: JAMA
Corporate Social Responsibility in the transport-forwarding-logistics sector (TFL)
Why is Responsible Logistics at your desk?
Since the early 1990s consumers have been increasingly concerned about purchasing products that conform
to ethical production criteria. Brand and retailers have come under pressure from consumer right initiatives
and campaigning groups, in collaboration with the media. At the beginning of this process B2C companies
were targeted, especially such with a high brand reputation, which are distributing products from labour
intensive industries (e.g. garment, shoes, toys, etc.). Over the years more sectors, such as IT hardware and
the automotive sector, have become challenged by sustainability requirements.
H
ow did B2C (business-to-consumers) companies react to
these new challenges, especially
when it came to ensuring ethical principles in their supply
chains? Classical consumer-related marketing tools were applied to: satisfy consumers’
expectations and delegate the challenges and
the risks down the supply chain. The main
tool for this is the Code-of-Conduct (CoC)
system. A CoC claims that social standards
are duly met by the company and its business partners along the supply chain. With
the CoC the otherwise invisible product criteria are now communicated to consumers.
To live up to these promises, it becomes obligatory for the suppliers of the B2C companies to be in compliance with the social
standards defined in the CoC. This includes
not only the first tier level but is gradually
extended to the second, the third tier, and so
on. In recent years, the focus is increasingly
set on the horizontal supply chain too, and
here the logistics sector is pulled in.
What are Social Standards?
Social Standards are based on international regulations and on national legislations. Both are closely linked. The main
body in the field is the International Labor
Organization (ILO), a UN and tripartite
organization established in 1919. Employees, employers, and governments are represented in the ILO and agree on conventions,
currently 188 in total. These conventions are
supposed to be ratified by national governments and incorporated into national labour laws. This process has been applied for
almost 100 years, resulting in more or less
similar labour laws around the world.
There are eight conventions referring
to child labour, forced labour, equal opportunity and remuneration, Freedom of
Association and the Right to Collective Bargaining. These conventions are the so-called
2/2011 | Baltic Transport Journal | 29
BTJ Special
auditors enter a production site with a
checklist, develop a corrective action plan at
the end of the day, leave the production site
and come back 0.5-1 years later to see: nothing or only a few things have improved. The
impact on the production level is limited.
The authors of the survey “Does Monitoring Improve Labor Standards? Lessons from
Nike” concluded that there is no correlation
between social auditing and the small improvements observed (Locke, R.; Qin, F. &
Brause, A., Massachusetts Institute of Technology, Boston, 2006). All official reports of
the abovementioned initiatives indicate a
similarly weak impact.
Base your analysis on your professional
experience
You don’t need to be a scientist to understand that social auditing cannot be the solution. Imagine one of your business partners
you source products or services from, let’s
say a workshop for maintaining containers in
Qingdao. You might have observed that workers over there are working 80-90 hours a week.
Do you think that a corrective action plan will
make them work only 40 hours a week plus 36
overtime hours monthly as a maximum, the
working time stipulated by Chinese Labour
Law? Instead of getting paralyzed by social
standards, we should focus on improvements,
Photo: Wikimedia Commons
How is the implementation monitored?
The main tool to monitor the implementation of social standards in a company’s supply chain is social auditing. There
are different systems, company internal
auditing or monitoring programmes, sector
wide programmes, like the BSCI (Business
Social Compliance Initiative) for European
retail trade, or the EICC (Electronic Industry Citizenship Coalition) for the IT sector,
there are verification systems like the one of
the FLA (Fair Labor Association), or certification systems like the SA8000 for a broad
range of industries, and approx. 1,000 other
CoC systems nowadays. But, at the end, they
are all based on social auditing, meaning
Photo: JAMA
core labour rights and regarded as human
rights at the workplace. Each UN member
state has to guarantee these rights to its
citizen, no matter if these conventions are
ratified by the government or not. Besides,
there are a number of other declarations
and conventions, e.g. the Universal Declaration of Human Rights, the UN Convention
on the Rights of the Child, and the UN Convention on the Elimination of All Forms of
Discrimination Against Women. All initiatives you have heard of while working in the
field, for instance the UN Global Compact,
refer to these social standards.
30 | Baltic Transport Journal | 2/2011
BTJ Special
in this example, to reduce the working hours
to 70 or 75 a week as a first step? And working time is just one topic. How many suppliers
do you have to cover? Will your organization
be able to count all the dirty toilets in the production sites of your suppliers and will you be
able to make them count the dirty toilets of
their sub-suppliers and sub-contractors (don’t
laugh at this example, unhygienic conditions is
one of the main problems of workers around
the globe – one of the biggest money burners
in any industry). Anyway, counting is just the
first step, the toilets need to be cleaned and remain clean. Obviously, the topic is much more
complex than pictured in any social auditing
system description or guidance document.
Social Standards Implementation Strategies
Strategies
Documentation
Scope
• Meet the stakeholder
expectations
Strategies on how to bridge stakeholder expectations and reality
If your organization is committed to
change there are a variety of effective measures
How to translate the Integrative and Distributive Strategies into a practical guideline:
• Create ownership: don’t improve because you want to meet social standards,
but because you want the best for your
product, your company, and your supply chain. Social standards are just one
of several elements you need to stimulate improvements.
• Extend your stakeholder analysis: do
a stakeholder analysis, but don’t forget to balance stakeholder demands
and the actual leeway you have. Explicitly identify the contradictions
Distributive
• Develop companyadjusted solutions
internally
• Jointly develop
supply chain-adjusted
solutions
Philosophy
• Meets a classical
& hierarchal
management
approach
• Organisational
dialogue & learning
• Based on common
interests in the
organisation and the
benefits
• Inter-organisational
learning
• Based on common
interests in the supply
chain and their
benefits
Methods
• Delegation of laws and • Participation of
requirements to the
management and
operational level
employees (internal
management teams)
• Documentation of
implementation
• Experience sharing
with supply chain
partners and
stakeholders
(inter-organisational
knowledge networks)
Tools
• Certification,
verification, sanctions
Impact
• Qualified – limited to
• Environmental, social,
zero in the social area
economic impact
• Social, environmental,
and economic aspects
are disconnected
Photo: Nynas
you can take to move beyond social auditing
and beyond the one dimensional CoC model. One can differentiate between three strategies. Obviously, the main approach used is
the Documentation Strategy, although this
one is ineffective. The other strategies can go
hand-in-hand.
Integrative
between stakeholder demands and
the framework you are working in.
• Move beyond customer-oriented thinking: don’t ignore contradictions between
demands and leeway, and don’t delegate
them into your supply chain or your
operations; instead start dialogues with
stakeholders and suppliers on these contradictions and show proof that your organization is working on issues.
• Concentrate on issues: don’t paralyze your organization by getting fixed
• Top-Down Bottom-Up • Supply chain dialogue
• Environmental, social,
economic impact
on the implementation of the social
standards along your complete supply
chain; instead follow an issue-oriented approach. If you learn that there is
something wrong in your supply chain,
improve this particular situation, document and distribute the learning of this
case in your organization and your supply chain. If there are too many issues in
your supply chain, prioritize. It is wise
to set up a budget for this process.
• Get everyone involved: don’t delegate
the topic to a parallel structure; instead
get your supply chain experts involved
and make them handle the issues. Of
course they need clear directives and
resources to handle the additional tasks
(Top-Down Bottom-Up).
• Be above average: measure the impact of your activities and be prepared
to present the actual improvement at
the operation level to the public. You
don’t need social auditing for this.
Work with best practice cases and the
authentic perceptions of workers and
managers of the operation level and
other key players of your supply chain.
These tools are much more powerful.
Sebastian Siegele
Sebastian Siegele is the founder and owner of Sustainability
Agents, a consultancy headquartered in Berlin (www.sus-a.com). Since
1999 he has specialised in the promotion of labour and social standards along global supply chains. Sebastian has supported some of the
biggest European industry companies to integrate sustainability requirements into their sourcing processes, moreover, he has worked on
the implementation of social standards in several hundred production
facilities and is skilled in communicating the issues of labour and social
standards to all levels of an organisation.
2/2011 | Baltic Transport Journal | 31
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Break bulk & project cargo 2010
The place of break bulk in freight classification
Second line cargo?
What has happened to traditional general cargo in the era of container shipping and when decks of so
many vessels are crowded with trucks? One can say that even though this kind of freight gradually disappears from the media and public awareness, it is without doubt still present at the quays.
P
allets, wire coils, paper reels, etc., are not as photogenic
as mountainous stacks of containers and often remain
hidden in warehouses. Ships which carry them are not as
huge and spectacular as oil tankers or containerships and
very rarely break records. Moreover, ports from the headlines, like ferry harbours, seldom serve non-unitized goods. However,
our rough calculation shows that cargoes in parcels and pieces which
are not packed in standard containers or in road vehicles still account
for at least 9.3% of the total turnover of Baltic ports. It means that
such a laborious class of cargo generates much more than 10% of income and over 10% of workload in port activities.
Difficult estimations
The calculation is sketchy not only because of the vague information listed in the remarks under Table 1 (see next page),
but mostly because of the lack of precise classification noticeable in all sources. It seems that the practitioners and theoreticians only agree upon the subject of one boundary – between
dry and liquid cargo, while the other main dividing line, the
one between dry bulk and general cargo, remains undefined.
For example, round timber is classified sometimes as bulk,
sometimes as general cargo, but most port managers consider
logs among cargo in pieces, probably because this freight needs
lots of stowage work, difficult to mechanize and automate.
Break bulk
Changes in transport technologies imply the use of new classifications and measures. The term ‘general cargo’ covers without doubt all
processed and non-processed cargoes carried in any form of a solid unit
– in containers, trucks and trailers – they are all true ‘parcels’. Boxes, bags
or packets belong to the class of general cargo as well, as in the case of
such independent units of freight as pieces of machinery, vehicles, etc.
But what about raw material which is carried and served in big bags?
Experience shows that the most official and private statistics divide
general cargo into three categories: containers, ro-ro cargo (including
ferry) and the rest, nowaday, called break bulk. Some actors go even
further, for example Statistics Denmark differentiates between cargoes
carried by ferries and by ro-ro vessels. This is probably the only exception because the country is rich in islands and domestic ferry services.
Until now nobody has split break bulk into two main categories, in fact,
2/2011 | Baltic Transport Journal | 33
Report
Table 1. Turnover in Baltic ports in 2010
Total
[mln t]
Sweden*
Russia**
Finland
Denmark*
Germany**
Poland
Latvia
Estonia
Lithuania
181.6
174.0
91.3
78.7
67.0
64.7
59.7
45.8
40.3
General
cargo (GC)
[mln t]
79.7
35.4
36.9
31.9
50.0
22.8
10.6
7.0
9.7
Breakbulk
(BB)
[mln t]
22.6
15.5
14.5
3.9
4.9
4.3
5.7
1.2
1.8
BB:total
BB:GC
12.4%
8.9%
15.9%
5.0%
7.3%
6.6%
9.5%
2.6%
4.5%
28.4%
43.8%
39.3%
12.2%
9.8%
18.9%
53.8%
17.1%
18.5%
* North Sea ports included, ** Ports in the Baltic Sea only
Remarks:
1. Figures for Sweden and Denmark are derived from national statistics as sums of nonadjusted data taken from quarterly reports in 2010; in the case of Denmark only major
ports which handle over 1 million tonnes are covered – this means that the total volume is
diminished by about 8 mln tonnes.
2. Finland – figures reflect only foreign traffic in ports associated with the Finnish Ports Association, so the total volume is diminished by about 10 mln tonnes (2 mln in non-associated
ports plus 8 mln due to the lack of coasting in 2010 data).
3. Latvia, Lithuania and Poland – sources are ports’ statistics. Although in the case of Latvia
and Poland minor ports are not included, thereby not changing the numbers much.
4. Germany and Russia – different sources including field research. In the case of Germany
only major ports (over 1 mln tonnes) are included, which could reduce the total volume
by 2.5 mln.
5. Estonia – total turnover derives from national statistics, other data anticipated based on
incomplete information from ports (operators are obliged by law to reveal only total turnover so some of them keep certain details confidential).
very separate categories for statistical purposes – project cargo (highly
processed units of machinery and/or their modules) and packed and/
34 | Baltic Transport Journal | 2/2011
or unitized materials used for further production (i.e. cellulose, paper,
steel and other metals, bagged fertilizers and dry chemicals).
The division of the two aforementioned categories of break bulk
is profoundly important to people looking for general information
about the economy – on the one side there are ‘factories’, on the other
– goods similar to bulk cargo, to be subjected to further processing.
So, a container gantry crane and steel plates could statistically be listed in the same category of metals. This is, for example, the case for
Port of Klaipėda which has the best published statistics in the BSR (18
listed categories cover 98.5% of total turnover). Even the most excellent statistics in the Baltic however aren’t entirely accurate – recently
the port transited project cargo imported from China to Belarus; but
it is difficult to find how it was calculated, since it falls into both the
“iron and steel ware” section and “other cargo”.
Another problem, vividly reflected in the differences between
Swedish and Finnish statistics, is the calculation of non-standardized units like oversized containers, flats and cassettes. Swedish
ports and institutions count them among containerized cargo while
the Finns include them in break bulk statistics. An example is the
SECU container developed by Stora Enso for paper products used
in transport chains in both the abovementioned countries – it is
oversized, very heavy (up to 93 tonnes) and non-stowable. It can
be carried only by rail and ro-ro vessels. From a stowage point of
view the SECU is similar to any piece of ‘heavy lift’, and like many
of them is served in ro-ro technology.
Highly dispersed cargo
Our research shows that only one port in the Baltic serves break bulk
in large quantities – St. Petersburg, with an annual turnover of 13.5 mln
Report
tonnes in this class (the main commodity is steel – 6.2 mln tonnes). For
two other top break bulk ports – Kotka and Lübeck – statistics show
figures at a level of 3.5 mln tonnes. In both cases the main cargo is paper and, one should remember, it is transported partly in SECU units.
Another port is Riga which handled around 3.1 mln tonnes of this kind
of freight in 2010, of which timber made up 94%.
It could be of interest that the country with the largest break bulk
turnover last year, Sweden, has no single port which handles over 1.5
mln tonnes of such cargo type annually. Break bulk is dispersed among
almost all ports of the country and only five of them served more than
1 mln tonnes last year. Usually small ports with substantial handling of
general cargo work for paper mills and other enterprises of the forest
and metal industries (the picture will be slightly different if we move
units counted among containers to break bulk in statistics). A similar
situation occurs in Finland with the exception of Rauma and previously-mentioned Kotka. Rauma handled 2.3 mln tonnes in 2010.
Another interesting point is the question of changes in quantity
and the share of break bulk in total cargo. Desktop research cannot answer this accurately but some data, mostly from large ports, show that
both factors are diminishing. For example in 2005 break bulk in Tallinn
accounted for as much as 3.4% of total cargo, in 2010 it decreased to
1% (a drop from 1.35 to 0.35 mln tonnes). In the same period the break
bulk share in Rostock fell from 3% to 1.5% (0.7 to 0.37 mln tonnes) and
in Klaipėda from 12% to 6% (2.5 to 1.8 mln tonnes).
Compensated cargo tonne
Besides the statistics with the updated categories, which will better reflect the activity of the ports and their hinterland development,
we need more accurate measures of ports and terminals’ productivity
than can be achieved by the usual measures of weight, volume or
pieces of cargo. I think of a tool modeled on the CGT-system developed by the shipbuilding industry. The compensated gross tonnage
(CGT) concept lies in multiplying figures of basic measure of size of
ships – gross tonnage (GT) – by coefficients which reflect the work
content in each type of ship (it goes without saying that 1 GT of a
cruise ferry needs more work-hours and yard hardware than 1 GT
of a bulk carrier). It gives a more accurate macro-economic evaluation of the shipbuilding workload than is possible on the basis of
simply converting the GT volume of the inner space of ships.
Ports and terminals also need such a statistical tool because
figures in tonnes don’t inform of the labour intensity of loading/
discharging processes, the use of energy and the amount of superstructure used in port services. Probably ‘compensated cargo
tonne’ (CCT) could be calculated by using only one class of coefficients, converting every mix of handled cargo into CCT figures,
resulting in better reflecting the potential and position of a port or
a terminal. The first step doesn’t exclude future improvements in
the CCT-system, which is what happened in shipbuilding.
Such tool could and should be devised by a scientific institution involved in research on port economies on an international
level, i.e. the Centre for Maritime Studies at the University of
Turku or the Swedish Institute of Shipping Analysis. We can
also imagine a competition to find the best system or the coexistence of several systems chosen by ports on a voluntary basis.
This would lead to the adoption of one scheme by at least one
international port organization. Marek Błuś
2/2011 | Baltic Transport Journal | 35
Report
Responding to market expectations
An interview with Radosław Chmieliński, Shipping Director of Chipolbrok Gdynia and
Janusz Kuźmicki, Commercial Manager on the company’s Polish side in Gdynia
In the 60-year history of the Chinese-Polish Joint Stock Shipping Company Chipolbrok, it has been
operating 74 vessels, in vast majority owned. Today Chipolbrok has a fleet of 19 modern multipurpose
heavy crane geared vessels designed for carrying investment cargo, such as project cargo, heavy and
long pieces, wagons, vehicles, machinery and bulk cargoes together with containers.
How would you describe the contemporary market of general cargo and
Chipolbrok’s position within it?
Radosław Chmieliński: In recent years general cargo carriage has gone through enormous
changes. Ships, shipowners, ports, even definitions of the trade – everything varies from what
it used to be. Traditional general cargo is mostly
containerized today and what is left over, called
break bulk cargo, includes a group categorized
as project cargo. This kind of freight is related
mostly to investment projects. Not long ago,
in the early 1990s, Chipolbrok was a universal
conventional carrier of general cargo, but the
progress of containerization enforced specialization and eventually it became impossible to
combine successfully the shipments of break
bulk cargo together with containers. What we
decided to do was to withdraw from containers and to focus on specializing in shipments of
project cargoes and other break bulk commodities. Today Chipolbrok is one of the world’s
leading ocean carriers specializing in carrying
project cargo and other pieces that cannot be
transported in a container due to its size or
weight. We are a shipowner as well, since we
exclusively operate our own vessels. One of the
factors determining our high market position
is our operating strategy – we offer scheduled
liner services on a regular basis, to and from
the same ports. This makes the forwarders’ life
easier in terms of operation and planning, since
in these days of supply globalization, the major
investment projects require timely delivery of
cargo to one destination from various points.
36 | Baltic Transport Journal | 2/2011
Before, the entire project equipment used to
be shipped from one place of loading, while today shipments from various continents loaded
at Antwerp, Busan and Huston can meet in
Shanghai in order to be integrated into one
project. Responding to such market challenges
imposed by globalization, we have expanded
the range of our services. We are not confining ourselves to our traditional Europe-China,
China-Europe routes, but we are also covering
connections forming the ocean bridge linking
three continents: Europe, Asia and America.
Additionally, we often have projects in North
African countries so, in fact, Chipolbrok is
nowadays offering round-the-globe services
in both eastbound and westbound directions.
Chipolbrok mainly owes its status to its knowhow. It is not enough to have the best vessels
possible. Our position is built by people-institutions, who have the knowledge of how to
win cargo, handle it, stow aboard and protect it
from weather. This is where the human factor
cannot be replaced by a computer. Besides, the
group of ports where stevedore qualifications
are sufficient to handle project cargo is shrinking. In Europe today it is Antwerp, Hamburg
and Porto Marghera. Any ports where Chipolbrok vessels are calling, we are sending our
experienced port captains, whose professional
assistance is indispensable.
in approach results from the fact that our European partners are not familiar with the Chinese market and wish to be offered comprehensive logistics support, a complete package
of services. Thus our on-shore and hinterland
operations are much more developed there.
We build on a competitive advantage resulting
from the 60 years of experience in the Chinese
market and none of our European partners
perceives us as a competitor there.
Have you expanded the range of services by such elements as your own onshore structures or forwarding companies for example?
Janusz Kuźmicki: China has experienced a
transformation which was hardly imaginable. In many parts of the world, this country
is still associated with simple merchandise,
such as ready-to-wear clothes. In fact, it is
an entirely different country today. Last year,
China was reported to be the world’s largest
exporter and this was only possible due to its
state-of-the art technology products. Before,
we used to carry huge volumes of project
cargo only from European ports, but this
proportion has become more balanced today
– project cargo is shipped from China worldwide and not only to developing countries
but also to Europe as well as to the USA. To
mention the Baltic Sea, we recently carried a
power plant project from China to Klaipėda
with its final destination in Minsk.
Radosław Chmieliński: We are not offering
forwarding services in Europe, neither are we
undertaking any activities to facilitate delivery
of cargo to ports – we do not want to compete
with the forwarders, as this would eliminate
us from some segments of the market. Such a
neutral position makes us a potential partner
to any shipper. In China on the other hand,
due to our long lasting experience we have set
up our own logistics centre offering delivery
to the point of destination, provided that our
offer is competitive for the client, as China has
its own market in every field. This difference
Exportation from China has changed
significantly, at least from the point
of view of such carriers as Chipolbrok.
China has become an exporter of investment goods. Does this have any effect on your operations?
Report
Photo: Brunsbüttel Ports
average voyage from Europe to the last port
of call in China still takes about 55 days. To
achieve this we focus on thorough operational
planning. Moreover, we have reduced our
ships’ stay-times in ports, by working 24 hours
a day there and paying overtime. The most serious problem making it difficult to stick to the
schedule is Somali piracy. In order to protect
our vessels, crew and cargo onboard all our
ships, numerous preventative measures have
to be taken, including the decision to travel in
military convoys. However, the convoys are
scheduled only every six days, which means a
few hours’ delay can cause huge losses. So we
are doing our utmost in order to prevent such
unfortunate situations.
Did the progress of containerization stop
after all consumer goods were absorbed
by this segment? Is break bulk carriage
also threatened by container operators?
Janusz Kuźmicki: The situation is changing
dynamically in this respect. There are many
determinants to it and not all of them can be
specified. Not long ago, when container rates
were falling like a rock, it paid for operators
to carry all sorts of cargo like this, even steel
coils packed one at a time into a container. On
the other hand, however, the boxes turned out
not to be solid enough and container operators were reluctant to accept loads so heavy,
engaging their deadweight, but yielding no
revenue. Thus, there are two sides to these
changes. ‘Decontainerization’ of some cargo
types enabled us to return to Busan and to call
at the Port of Singapore. Containerization is
entering project cargo too. Freight forwarders
are no longer shipping the whole cargo lot by
multi-purpose vessels, they pack everything
which can be packed into containers and look
for a cheaper carrier – a container operator
as a rule. Sometimes they are doing this because of time constraints. To avoid contractual penalties for delay, the forwarder has no
other choice than to use containers, realizing
there are more cargo shipping opportunities
with container operators. Then again, with the
Internet and improved information flow, it is
possible for forwarders to ship their project
cargo not just under one shipping contract,
but in smaller lots. It happens, therefore, that
we have 100 up to 1,000 freight tonnes – parts
of larger projects aboard and our regular and
frequent service gives us the advantage of being able to get cargo without the need for the
forwarder to go to the freight market. Certainly, we do have to follow the schedule of
calls and offer a good transit time. We happen
to carry loaded containers, when the shipper
wishes the entire batch to go under one bill of
lading. What can be seen onboard, are empty
units we carry from Europe to China and
other Far East destinations for those clients
who do not have enough of their own capacity, while there is no deck cargo on our ships.
It is a small niche resulting from unbalanced
cargo flows between China and Europe. This
category of carriage has recently decreased in
volume, as container operators are suffering
from overcapacity today.
Was the project cargo market affected
by the recent crisis? Did the shipowners have to restructure their services or
adopt the slow steaming strategy?
Radosław Chmieliński: Although the crisis
did affect us, we fortunately did not suffer as
much as container operators. This was due to
the long-term nature of investment projects,
especially in the energy sector, fossil fuel mining, in power plants, where developments are
not subject to any dramatic fluctuations. Not
until 2010 did we take note of a drop in new
project contracts, but symptoms of revivals
are showing up. Paradoxically, the impact of
fuel prices on our market is opposite to what
all other freight markets are experiencing – the
demand for energy keeps growing on a continual basis. Therefore, higher prices of fuel make
it profitable to invest in wind energy, nuclear
power plants or other new energy sources
such as shale gas. Obviously, fuel prices do affect us as a carrier. 10 years ago fuel accounted
for 25% of our operating costs, while it is more
than 50% today, bringing down all voyage calculations very negatively. Thus, the world has
accepted the bunker adjustment factor (BAF)
and so have we – we are glad to see that our
clients fully understand this and participate
in these costs, which can partly compensate
us for the huge increase in that cost position.
Too, we have been compelled to adjust our
vessels’ speed to the fuel-saving level, although
our ships can compete with container vessels,
being able to go at a speed of 20 knots. The
What are the perspectives for Chipolbrok and the whole MPV sector? Judging
by investments, they seem promising.
Radosław Chmieliński: We do have an investment programme underway – we are
completing construction of six heavy lift vessels, 30,000 dwt each with a lifting capacity 640
tonnes. Four of them were already delivered in
years 2009–2010 and the last two will be ready
this year. By finishing this investment project,
which will be added to the four other similar
ships also built in China in 2003-2004, Chipolbrok will be offering to the market 10 ships of
the same type enabling to provide fortnightly
sailings around the globe, i.e. within Europe–the Far East–USA–Europe services. At
present our management is considering and
planning the next fleet expansion – adding to
our operations the next eight new vessels with
approx. 25,000 dwt, less drafted but again with
heavy cranes and possibly with longer holds.
This is what the market imposes – the cost of
on-shore logistics is so high today that it pays
to carry the cargo to the port that is closest to
its destination point and such ports are often
smaller and not that well equipped. Insurance
rates represent another factor prompting us
to upgrade our fleet – cargoes are so valuable
that a vessel’s age is considered by the insurers to be of high relevance. Chipolbrok with its
fleet structure, its number and type, is therefore purely responding to our clients’ expectations, at the same time with the aim to fully
realize our clear shipping strategies without
any speculations with newbuildings. Recent
happenings in this sector have clearly showed
that it may end in a very sad manner. We do
believe that today in such challenging but still
rather uncertain markets, only a very reasonable management and shipping policy will be
the key to success. All in all, we do our best to
retain our unique market position.
Marek Błuś, Lena Lorenc
2/2011 | Baltic Transport Journal | 37
Report
Innovative fleet
Photo: Port of Antwerp
Photo: Port of Kokkola
Photo: Port of Antwerp
Inspired by break bulk
Break bulk constitutes a minority of cargo transported by sea, yet it constitutes work for a more numerous and technologically-varied fleet than the majority of combined cargoes of oil, bulk and containers.
T
he fleet, or rather several fleets
suited for break bulk, consists of
different types of vessels, utilizing
both main cargo handling concepts of the traditional load-on/
load-off, and the younger roll-on/roll-off, or
sometimes a combination of both.
Most flexible
One feature is common for all types of ships
– their flexibility, which is reflected in the terminology used. The most popular modern general cargo vessel is reffered to as ‘multipurpose’
(MPV or MPP, MPC), but owners, operators
and builders usually expand the term, i.e. multipurpose heavy lift, MPV container or MPV
bulk. MPVs are usually equipped with moveable pontoons to enable making temporary
tween decks and/or bulkheads. In fact, they are
all very standardized with box-shaped, usually long holds, optimized for containers, and
hatches as wide as bottoms of holds (smaller
ships often only have one hold). More differences can be found in deck equipment, less in
invisible details of construction – all MPVs are
craned, but heavy lifters have stronger cranes
and more steel added to the hulls, which have to
be strengthened for project cargo. Some ships
are equipped with a dehumidification system.
Such configurations mean that all MPVs, including heavy lifters, can carry all kinds of dry
cargo, while they can also serve as ‘pure’ bulkers and ‘pure’ containerships. Smaller and medium-sized units of such type are very popular
and are the main tool for break bulk operators
such as BBC, Euroafrica, Rickmers and Spliethoff. More traditional general cargo tonnage
with non-detachable tween decks is frequently
called ‘multipurpose’ but we can recognize
them after such added terms as tween decker,
38 | Baltic Transport Journal | 2/2011
or semi-container. Their flexibility is diminished, so they serve routes with balanced demand of break bulk in both directions.
For large shipments…
The second group, much smaller in
number, consists of conbulkers; these are the
largest ships tailored for break bulk, especially
for carriage of unitized forest products. The
short name ‘conbulker’ isn’t accepted by the
shipping community, because of the wide usage of the descriptive name ‘open hatch gantry
craned’ vessel, sometimes in the form of acronyms OHGC or OHBC. The capacity of MPVs
fluctuates between 8,000 and 30,000 dwt;
OHGCs start at 30,000 and reach 50,000 dwt,
although the newest units reach up to 73,000
dwt. Conbulkers, like MPVs, are characterized
by boxed holds, but have an equal length of 40
feet, so the biggest vessels count more than 10
holds. Hatches are bottom-wide and, like in
multipurpose vessels, no deck overhangs over
holds. Gantry cranes are standard equipment;
however, in some ships removable tween decks
are also used. Dehumidification systems are
more common than in MPVs. Again we deal
with a ship which can substitute a ‘pure’ bulker
or a ‘pure’ containership. Only a few companies
operate OHGC tonnage; the biggest are Gearbulk, Grieg Star Shipping and Saga FC.
…and small ones
The last group of ships almost equally
suited for break bulk, bulk and containers are
European coasters. All have a one box shaped
hold (sometimes two holds) without tween
decks and systems for controlling the environment. Any division of such ships generally
depends on their routes, because they differ
in dimensions, including air draft, depending
on limits of ports, rivers, locks and canals
they should pass. Among lo-lo ships for break
bulk cargo only one type has a narrow specialization – these are reefers which have not
changed much since the 1960s. Total tonnage
of their fleet is slowly decreasing because of
competition within reefer containers.
Rolling to stow
In addition, many ro-ro cargo ships within
European short sea shipping are primarily
suited for break bulk. Of course, they can carry
road vehicles as well, but their owners or charterers have ordered them for this special kind
of cargo and normally for a specific route in
mind. Scandinavian export of paper employs
ro-ros tailored to different concepts of cargo
handling and for carrying different cargo units.
For example, vessels of the TransPaper class
are optimized for the transport of huge SECU
containers, the Obbola class for cassettes and
the Misana class for sto-ro technology, which
doesn’t demand cargo units. All three classes
have wide stern ramps only. Transatlantic trade
of Baltic forest products utilizes more complex
ships for combined ro-lo handling, meaning
that vessels have both ports for rolling cargo
and hatches for vertical movements. An example is the S-gracht class equipped with five-side
loading lifts and three hatches. More complex is
the TransFighter class with access to the holds
from three directions – by stern ramp, side
doors and hatches.
Conti-Lines’ website states rightly so that
“Break bulk has been the most common form
of cargo for most of the history of shipping.”
And, we can add, that it is still the most innova
tively inspiring. Marek Błuś
Welcome to Bornholm
550 N
150 E
The Port of Rønne welcomes you with open arms!
- We’re here to serve you
T h e P o r T o f r ø n n e i s v i Ta l T o T h e B o r n h o l m c o m m u n i T y:
•Ferrytransporthub
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andservices
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services
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services
RØNNE HAVN A/S
PORT OF RØNNE A/S
Munch Petersens Vej 2
P. O. Box 47 · DK 3700 Rønne
Tel.:
+45 - 56 95 06 78
Fax:
+45 - 56 95 06 31
A.o.:
+45 - 51 36 37 47
E-mail: roennehavn@roennehavn.dk
Web site: www. roennehavn.dk
TransBaltic
Towards an integrated transport
system in the Baltic Sea region
Project part-financed
Project part-financedby the European Union
by the European Union
(European Regional Development Fund)
(European Regional Development Fund)
India – BSR
Emerging business opportunities
Photo: TransBaltic Project Manager Wiktor Szydarowski next to Jawaharlal Nehru Port Trust Chief Manager
India, along with China, is one of the fastest growing economies in the world today. The European Union is
the country’s largest trading partner, accounting for more than 25% of India’s total exports and 21% of its
total imports as of 2009. A TransBaltic delegation spent five days in India to learn more about the country’s
transport systems and future plans regarding its trade with Europe and the Baltic Sea region in particular.
I
ndia is becoming more intertwined with the world and its negotiations of the Free Trade Agreement (FTA) with the EU are close to successful completion after four years of talks. The agreement now expected to be signed later this year or in early 2012, is bound to affect
future Indian and European trade exchange remarkably. A TransBaltic
delegation consisting of partners from Sweden, Finland and Poland visited
New Delhi and Mumbai to explore the projected trade patterns between
India and Europe, with emphasis on the BSR. The visit was an element of
project activities intended to enhance the gateway function of the Baltic
Sea region in developing intercontinental freight flows. Meeting representatives of research institutes, ministries, business circles and the port industry,
the delegation gained insight into the main challenges to the well functioning trade exchange and the potential impact of increased freight flows
40 | Baltic Transport Journal | 2/2011
on the northern regions of Europe. Moreover, the delegates had an opportunity to identify possible synergies between the two areas that could be
highlighted.
The areas of potential exchange
So far the trade exchange between India and the Baltic Sea region has
been quite modest, yet showing an annual growth rate of 38% since 2000,
to reach the value of USD 28 bln in 2009. Germany takes the lead as India’s
largest trading partner within the BSR in terms of both exports and imports.
Due to its natural resources, Russia plays a significant role as an exporter and
accounts for a large volume of India’s imports from the BSR. Even though
the past years’ statistics can demonstrate an increase in trade exchange,
there is still a long way to go before it approaches its full potential.
Project part-financed
Project part-financedby the European Union
by the European Union
(European Regional Development Fund) Towards an
(European Regional Development Fund)
system in
integrated transport
the Baltic Sea region
Looking beyond the potential trade exchange performance, cooperation between the two regions should also foster knowledge transfers. The
BSR and India are facing many of the same challenges as regards macroregional cooperation and efforts should not be limited to the ongoing integration process. Similarly important is building an active relationship where
both parts learn from each other, finding common strengths and opportunities. The Indian interest is very much focused on developing such sectors
as the environment, sustainability, ITS and, last but not least, security. This is
where exchange of knowledge and building on the European experience
is beneficial. Maritime education logistics training is also an area in demand,
where BSR members are recognized as being in the forefront.
TransBaltic
Inland waterways offer a cheaper alternative to rail, but the infrastructure and
system is much underdeveloped. Moreover, to benefit from this potential,
such natural factors as flooding have to be worked around. Hinterland solutions are expensive and hard to claim for private investments.
Since 1991, India has recorded an annual increase of about 266% in
container port traffic. The Jawaharlal Nehru Port (JNP) in Mumbai is India’s
largest container port handling roughly 6 mln TEU. It is also India’s first pri-
The approaching bilateral FTA is an opportunity and a challenge at the
same time, with high expectations to live up to. Issues to be dealt with include social aspects, such as labour standards and environmental requirements. For example, the green transport concept, so well-established in the
European context, has not been much discussed in India yet. The agreement will determine the future structure of commodity exports to the EU,
although it is impossible to outline its shape at this stage. What India would
like to see is a change in attitude towards Indian exports. Some symptoms
can already be observed, with their exported goods moving up within
the value chain from mainly raw material to finished products and with a
growing share of automotive components. No less important will be the
acknowledgement of the high quality of their services and elimination of
barriers for professionals from India to enter the EU labour market.
Transport infrastructure and system as the main barrier
The forecasted increase in trade exchange volumes will put much
pressure on the Indian capacity for handling the flows. The logistics
chain has been identified as the biggest obstacle hampering development. The existing system generates unjustifiably high costs and is in
great need of improvement. The complex situation, where every state
of the federation has its own tariff system for road transport (the railway
is centrally-owned) is another factor affecting both the pricing policy
and cost efficiency as well. The process of harmonization is currently
underway, but internal connectivity also demands improvement of
the hard components, like road, rail, etc. The government has acknowledged the need for and stepped up public investments in infrastructure, encouraging active participation of the private sector at the same
time. To meet growing demand, PPP is being promoted by the governments as an instrument intended to facilitate development of the
national road network.
Railways support both passenger and freight transport, but in the context
of trade exchange, a dedicated network of railway connections is much needed. As a step in the right direction an industrial railway corridor between Delhi
and Mumbai is currently under development, with the New Delhi – Kolkata
line already in place. Because of the inland barriers and difficulties with crossing landlocked countries, there is no real discussion on developing a land
bridge connection with the BSR. Today 90-95% of India’s exports are transported by seagoing vessels. Therefore, the opportunity for growth is and will
remain in the hands of the ports and shipping industry in the nearest future.
Ports and hinterland situation
13 of India’s seaports are classified as major, 30% of these are owned by
State governments and 70% by the Federal government. The ports’ aspirations to attain the world-class standard are supported by the Government’s
National Maritime Development Programme (NMDP) which allows improvements to be made to port infrastructure within the next 10 years. Considering the ports’ limited capacity and their problems with meeting growing demand, development of hinterland connections appears to be vital. This issue
was identified and highlighted as a matter of importance only five years ago.
Photo: Wikimedia Commons
FTA – an opportunity and a challenge
vately-owned container terminal with well developed hinterland connections. 35% of the cargo leaves the terminal on rail to 40 different destinations every day, mainly to the northern parts of India. The terminal stands for
55% of India’s turnover capacity and the business is predominantly towards
Europe, mainly the Western Mediterranean and Western European ports.
36% of the cargo goes to the Far East. Although still expanding, the JNP
is about to face a lack of capacity. Demand is hard to meet and the port’s
future depends on developing an efficient and well managed transport
system. Management is an issue common to all ports and in this case it is
calling for immense improvements. For example, the ports’ inability to plan
ahead is a major issue. Blocked roads make road transport slow and unreliable and trucks approaching the port terminal have no system for making
the clearing papers reach the gates before the cargo arrives there. Sea carriers on the other hand can do their booking in advance, but that doesn’t
ease the problem, considering the situation on the landside. The average
turnaround time in Indian ports is 3.5 days compared with 10 hours in Hong
Kong. Congestion due to slow evacuation of cargo makes the number of
ships calling at JNP limited and incapable of being used as a transshipment
hub. Colombo and Dubai are the only two destinations used for transshipments but new ones are being looked for. The issue of empty containers
putting constraints on capacity is not a problem, however, since trade with
Europe is quite well balanced, in contrast to China where export prevails.
To improve port management, involvement of private stakeholders is encouraged. India is following the global trend with policy frameworks already
put in place enabling privatization of port facilities and services. 228 PPP
projects will be implemented under the NMDP.
Prospects for cooperation
Meetings held at the Research and Information System for Developing Countries (RIS), the Federation of Indian Chambers of Commerce and
Industry (FICCI), the Indian Ports Association, Nhava Sheva International
Container Terminal Pvt. Ltd, and the Jawaharlal Nehru Port Trust provide
the basis for a conclusion that the contacts established during the visit will
be of further use and should be seen as an opportunity for all the parties
involved. TransBaltic will work as a gateway to relevant organisations on
both sides and foster the India-BSR connection, cooperation and relationship. Once the Free Trade Agreement is signed, the formula for how further cooperation to strengthen these ties can be laid out too.
Evelina Hansson-Malm
2/2011 | Baltic Transport Journal | 41
TransBaltic
Towards an integrated transport
system in the Baltic Sea region
Project part-financed
Project part-financedby the European Union
by the European Union
(European Regional Development Fund)
(European Regional Development Fund)
Future environmental regulations for shipping in the BSR
Consequences for seaports
T
ask 4.1 within TransBaltic’s Work
Package 4: Horizontal measures
deals with the issue of challenges
that the Baltic ports have to overcome and focuses on their development in
the context of hinterland connections. In
March 2011 Baltic Ports Organization issued
a report, prepared on the basis of presentations delivered at TransBaltic’s and BPO’s
second seminar “Baltic Ports and Environment – new regulations and challenges,”
held on 7th December 2010 in Malmö, as
well as the BPO seminar “LNG in the Baltic
and North Sea – Business opportunities or
the cost factor for the ports,” held on 12th
January 2011 in Gothenburg.
The first part of the report identifies the
main environmental priorities of Baltic ports
according to the ESPO/EcoPorts survey. Further parts deal with future environmental
regulations for shipping within the Baltic Sea
Dialogue is a necessity
– received the ESPO Award last year for sustaining the maritime
identity of the city of Helsinki. Port of Helsinki moved a majority of its
port operations into a new area – Vuosaari Harbour. There is also one
more general difference: Baltic ports operate within a more sensitive
environment, since the Baltic Sea is a highly protected area.
Tab. 1. The Top 10 environmental priorities of Baltic and European ports, 2009
No.
European ports (122) 2009
Baltic ports (44) 2009
1
2
3
4
5
6
7
8
9
10
Noise
Air quality
Garbage / Port waste
Dredging: operations
Dredging: disposal
Relationship with local community
Energy consumption
Dust
Port development (water)
Port development (land)
Noise
Dredging: disposal
Air quality
Relationship with local community
Dust
Dredging: operations
Energy consumption
Ship exhaust emission
Climate change
Port development (land)
Source: ESPO initiatives on Sustainable Development – presentation, Gun Rudeberg, 2010
The report touches upon shipping’s negative impact on the Baltic en The report points out 10 environmental priorities for the Baltic
Ports with noise, dredged material disposal and air quality in the
Top 3. Do all Baltic ports have a clear vision on how to deal with
these challenges?
Well, the comparison shows that there is not much of a difference
between ports in the Baltic and in other EU ports when it comes to
environmental priorities. If you look at the details, disposal of dredged
material is higher than in all EU ports since a lot of the Baltic coast is
covered by Nature 2000. Also, Baltic ports place more emphasis on
dealing with local communities. That’s because the “Baltic culture
of doing business” includes a dialog and proper relations with local
society. It is worth mentioning that one of the Baltic ports – Helsinki
42 | Baltic Transport Journal | 2/2011
vironment. What will change in the Baltic transport sector with new
regulations on the way, aimed at reducing emissions from shipping
activities? How are ports preparing for the new regulations?
When it comes to the sulphur content in marine fuel it is primarily
the shipping world, which will be directly affected but of course the
overall cost impact will be spread out to some production industry
(e.g. paper), transport sector (including ports), tourism and finally to
costumers. Within BPO we are concerned about two main issues.
Firstly, we would like to see the whole European Union working
within the same regulation regime. Secondly, there is no doubt that
sailing with passengers and cargo in the Baltic will become more
costly, so road transport will be more competitive. Therefore, there
will be some shift of cargo movement from sea to road. To what
extent – no one knows now. It is still an open question what to do
Project part-financed
Project part-financedby the European Union
by the European Union
(European Regional Development Fund) Towards an
(European Regional Development Fund)
system in
and their influence on ports. The influence of
Baltic maritime traffic on the environment is
connected mainly with: SOx and NOx emissions, wastewater dumped into the sea and
the spread of alien species carried in ship
ballast waters. However, there are several
steps being undertaken to make sea transport more environmentally friendly and to
reduce its disadvantageous influence on the
Baltic Sea’s ecosystem. One of these is the reduction requirements in NOx and SOx emissions for shipping. Annex VI of MARPOL 73/78
makes the Baltic an “SOx emission control
area,” demanding all ships to use fuel with
integrated transport
the Baltic Sea region
a sulphur content not exceeding 0.1% from
2015. This will lead to significant cost increases for transportation by sea and, according to
research reports, reduce the competiveness
of sea transport. Also, Baltic ports would be
in a new situation in comparison with ports
in other regions of Europe. Furthermore, IMO
also specifies future NOx emission limits for
marine engines. Another regulation is connected with a ban on dumping untreated
ship sewage directly into the Baltic Sea. When
this regulation enters into force, passenger
and cruise ships will be obliged to use approved sewage treatment plants capable of
TransBaltic
reducing nutrients or deliver sewage to a port
reception facility. In turn, the International
Convention for the Control and Management
of Ships Ballast Water & Sediments deals with
the third environmental problem within the
Baltic Sea mentioned above.
The new environmental regulations are
a great challenge to both the shipping industry and the ports. We set up an interview
with Bogdan Ołdakowski, task 4.1 leader,
co-writer of the report and BPO’s Secretary
General to talk about the issues that the Baltic ports are facing and their status on environmetal performance and management.
to minimize this “cost effect” for all Baltic Sea transport. There is no
doubt that this new situation is a big challenge – also for the ports.
LNG as an alternative ship fuel and a potential response to the
LNG is one of the alternatives for the shipping industry currently
being broadly discussed. From an environmental point of view,
LNG is a cleaner fuel and according to this discussion there will
be a significant portion of ships using LNG as fuel in the Baltic Sea.
Again this creates challenges for ship designers, LNG traders, bunkering world, etc. Ports, of course, should follow this development
very carefully and should react to market demands. It is clear that
the new fuel type will need a new distribution system within the
region including LNG terminals and bunkering.
Ferries and cruise ships operating in the Baltic Sea carry over 80
mln passengers each year. Dumping of untreated sewage from
passenger ships may become illegal in the Baltic for new ships
from 2013, and from 2018 for all ships; however, this depends
on the availability of adequate port reception facilities. How are
ports preparing for these regulations?
Some of the ports have already been receiving sewage from passenger ships for quite some time while others have been looking
into the issue and have started preparing the necessary investment plans. There are still quite a few uncertainties (meaning of
adequate port reception facilities, no special fee for sewage, how
to distinguish small and bigger ports) but hopefully together with
the Helcom secretariat we will be able to help ports meet the new
requirements. Moreover; BPO is planning a study trip to learn how
the frontrunners (Stockholm, Helsinki) are handling the reception
of sewage. Also, Helcom organizes a series of consultation meetings with ports and other stakeholders.
An issue which has gained importance over the years is a port’s
relationship with its local community and the importance of
Photo: Port of Helsingborg
environmental requirements for the BSR has been widely debated lately, gathering both optimists as well as sceptics. Would
you like to share with our readers your opinion on this issue?
good port-city relations. How beneficial can they be? Can you
give our readers some examples of fruitful relations of this kind?
I’ve already mentioned that Baltic ports pay special attention to the
dialog with local communities. How this communication is organized
varies from port to port. The overall goal of the dialog is to guarantee
smooth development of the port, so it is of utmost importance to explain to local people what the port means for the community, not only
on an economic level but also in its heritage and social dimension. Many
ports experience that new investments need years of consultation and
preparation. Proper dialog with the local community and learning of
people’s expectations, and sometimes anxieties, leads to better understanding and it should smooth out port development plans.
Lena Lorenc
TransBaltic is arranging a number of debates and follow
up analyses dedicated to the transport development challenges of common interest and importance for all parts of
the BSR. On 7-8 June 2011, a task 4.1 seminar will be held
in Elbląg, Poland, in order to enable sharing different point
of views on the development for small and medium sized
Baltic Sea ports.
2/2011 | Baltic Transport Journal | 43
Port of Rostock
Photo: Rostock Port/nordlicht
Universal and proud of it
I
Get to know the German port, where you can handle all kinds of cargo and take a cruise on the Baltic Sea.
n the Middle Ages, the Port of Rostock was
the proud centre of trade between Scandinavia, Western and Eastern Europe. As
the East German economy flourished in
the 1950s and 1960s, the port was constructed entirely from scratch and was ready
for international challenges. The next challenge
came in the mid 1990s, when the new actors
entered the free competition. The scope of Port
of Rostock’s services was broadened and thanks
to this fact, it constitutes a fully universal cargo
and passenger facility today.
What’s on stock
Among Rostock’s undoubted advantages
is its geographical location, allowing to easily reach other Baltic ports. Also worth mentioning is the port’s accessibility both from
land (with direct connections to motorways)
and sea, combined with a developed logistical back-up – commercial and industrial
parks, a shunting station (180 km rails) and
65 km of rails on the whole port area. 11,000
m of quays and 46 berths are ready to handle all cargo types. With the ability to take in
ships up to 100,000 dwt, Port of Rostock is a
German deep-water leader.
Rostock likes to picture itself as a ‘research
port’. The name owes to the development of
44 | Baltic Transport Journal | 2/2011
the satellite navigation system Galileo, currently taking place in the port under leadership of EADS RST Rostock System-Technik
GmbH. The project aims at improving precision and safety of ships navigation by integrating terrestrial transmitting stations. “The
system is already operating under conditions
like the ones foreseen for the final implementation in 2015”, says Helmut Martin, Port of
Rostock. “This is possible due to the installation of many connecting tools on board ships
and at the port territory”, he explains further.
The best results are presently at the field of
ships operations in berthing and unberthing
procedures.
Universal means…
The part of the port handling general,
heavy lift and bulk cargo is the biggest one,
stretching 13 berths. Among the most numerous commodities there are steel products,
nonferrous metals, plaster boards, project cargo, and cement. For scrap and bags a separate
terminal has been destined.
Liquid bulk cargo is handled with
the help of, inter alia, three tank farms of
700,000 m3 total capacity. Six berths as well
as five rails are used for handling oils and
fuels; they are connected via pipelines to
refineries in the German cities of Böhlen,
Leuna and Schwedt, located in the southern
and eastern parts of the country.
For handling of dry bulk as well as general
cargo three berths are foreseen, two of them
able to handle ships of 100,000 dwt. The grain
port has a storage capacity of 360,000 tonnes.
The fertilizer quay, in turn, is equipped with
a ship loader of 600 tonnes/hour capacity.
Over 1 mln tonnes of hard coal is handled
yearly in Port of Rostock. Other dry bulk,
such as ores, building materials, wood chips
and others are carried as well.
Paper and ro-ro is handled by the port
as well; for instance, approx. 350,000 tonnes
of paper rolls from Scandinavia to Germany, France and Austria are imported yearly.
As for logistics facilities, the Port of Rostock
provides in total 105,000 m² open storage as
well as three quay sheds, available for distribution, storage and value added services.
Show me the numbers
As Germany’s largest Baltic cargo port,
Rostock holds the proud name of the biggest
passenger port in the country – on the route
between Scandinavian and the Baltic states
as well as Russia, Finland and Germany,
it is the unquestionable leader. Rostock’s
Ferrylinks
RoRolinks
Conventionallinerservice
Regulartramplinks
in the oil port as well as completion of the eastern road connection to the industrial park in
the area adjacent to the port. One of the main
challenges in the port development will be rearranging the entire ferry terminal, worth approx.
EUR 25 mln. Until the 2012 season approx.
EUR 1.7 mln will be invested in reception facilities for ships’ sewage at the cruise liner berths.
cruise ship port has become very popular
not only among Germans – in BTJ’s ranking
last year it got 9th place among Baltic cruise
ports. Despite a 12% fall, the number of passengers is still at a high level of 2.1 mln.
Port of Rostock has a stable position among
Baltic seaports; in BTJ’s annual rankings it
achieved a stable ninth place in total cargo handled both in 2009 and 2008, with 21.5 and 27.2
mln tonnes respectively. Moreover, it held the
7th position in BTJ’s top ro-ro ports list for 2009
(388.3 thou. ro-ro units handled), which saw a
rather significant fall compared to 2008 (fourth
position, 543.1 thou. units). At the same time,
the Rostock Seaport ranks first among German
Baltic Sea ports in the handling of bulk goods
(10.6 mln tonnes in 2009).
Tab. 1. Total cargo handled in the Rostock
Seaport; 2008-2010, mln of tonnes
TYPE OF CARGO
Liquid
Bulk
General cargo
Ferry cargo
Ro-ro
TOTAL
2008
4.7
5.9
0.6
13.7
2.3
27.2
2009
4.0
5.4
0.4
10.2
1.5
21.5
2010
4.6
6.0
0.4
11.5
1.2
23.7
2011 investments
How to keep good ranks and numbers?
This year over EUR 50 mln will be invested,
mainly in the port’s infrastructure. Pier III is
to be extended north; the embankment was
already built in 2010 (see “Dredging and maritime construction” report in BTJ 6/2010) and
the building works should be completed by
2012. Moreover, new berth will be built on the
eastern side of the pier. “There are other investments ahead”, says Helmut Martin, and names
continuous reconditioning of the service jetty
How bright is the future?
According to a study conducted on
behalf of the German Federal Ministry of
Transport, Building and Urban Development, the total handling of four German
ports (Rostock, Sassnitz/Mukran, Stralsund, Wismar) will more than double by
2025, reaching over 73 mln tonnes (see
more in the article “Size does matter” in
BTJ 6/2010). Naturally, it remains to be
seen whether such a big number will occur. However, it is quite certain that Rostock’s share (52 mln tonnes according
to the study) will be significantly large.
Martyna Bildziukiewicz
BALTIC PORTS CONFERENCE 2011 | 8-9 September 2011, HansseMesse Rostock/DE
8 September: Future challenges for the Baltic transport market
• Transport infrastructure development in the region
• Environmental regulations – how will the shipping line react?
• Ports and offshore wind farms
• Fehmarn Belt Project
• Trade with Russia – Outlook for 2012
Gala Dinner – celebrating 20 years of BPO
9 September:
Special Seminar: Port Governance in Europe – trends and reforms
5th BPO Lunch Debate: discussing IMO regulations and MoS Policy
On 12th April the European Parliament in Brussels saw maritime industry players together with
EP members and European Commission representatives, exchanging views of new IMO sulphur
limit regulations. One of the speakers, Olof Widen, managing director, Finnish Port Association,
introduced the organization’s environmental strategy in the context of IMO sulphur regulations.
A significant part of his presentation was devoted to the regulation’s impact on the Finnish maritime industry and foreign trade. Olof Widen underlined the dramatic increase in shipping costs
and decrease in volumes that the regulation will bring about. Furthermore, he postulated postponing implementation of the 0.1% level of SOx emissions, foreseen by the IMO regulation.
Bogdan Ołdakowski, Secretary General, BPO, focused on Motorways of the Sea and their importance to the Baltic region. Among the barriers for implementing the MoS project on the Baltic
Sea, he named inter alia the complicated and expensive application process and the questionable
image of the policy as such. In order to increase MoS’ presence in the BSR, he suggested more
marketing and promotion of the MoS concept, lesser administrative burdens and the necessity to
ensure more EU funds streaming directly to the Baltic region. The host of the meeting this time was
Olle Schmidt, Member of the European Parliament. “I would like to thank BPO for taking the initiative
to organize a lunch on such an important issue as IMO regulations for maritime transport,” he stated.
“The information exchange was very rewarding and as an MEP in the Committee for Transport and
Tourism, I will continue my work to find a good solution for the future of maritime transport while
taking into account the importance of the environment in the Baltic Sea,” Olle Schmidt concluded.
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
2/2011 | Baltic Transport Journal | 45
EWTC II newsletter
A green corridors manual
The purpose and preparation
the corridor in such a manner, both environmental and commercial
aspects are taken into consideration in a proper way.
One of the main objectives of the EWTC II project is
to develop a manual with recommendations for implementing green freight transport corridors.
T
he green corridor concept was introduced as part of the
revision of the EU Transport white paper in 2006, where
also the term co-modality was introduced, reflecting that
cooperation between transport modes is a successful way
of improving the quality and environmental performance of the freight transport sector.
The work with developing the green corridors manual was
launched at the beginning of this year. As an initial step the purpose
of the manual was described and a definition for green corridors has
been developed. The work was carried out in collaboration between
the project´s operating partners Trafikstyrelsen in Denmark and NetPort.Karlshamn assisted by the consultant Tetraplan.
The manual’s rationale
The green corridor manual is designed to guide and identify the basic
elements that constitute an environmentally friendly transport corridor in
contrast to a traditional one. This identification will assist in improving existing corridors as well as implementing new ones. Therefore, the manual
can be seen as an instrument for facilitating the two above purposes.
The manual will give advice to organisations setting up a green
corridor; issues include: infrastructure, operations, services and marketing of these. At the same time, the manual will give information to
customers who are interested in using green corridors.
One of the crucial elements relates to the understanding of the
corridor, which constitutes a mix of elements, which are of both a
technical and organisational nature. Only the corridors where all
these elements occur will be successful. An example could be that the
first green steps involve an optimization of the truck-based solutions
(better capacity utilization, more energy efficient engines, eco driving, etc.) developing into a solution based on intermodal trains or
ships when the necessary freight volumes are at hand. By developing
46 | Baltic Transport Journal | 2/2011
Draft definition
For the purpose of finding a recognised definition of the green
corridors concept, an email survey and interviews were carried out
with EWTC II partners and external experts as well as representatives from other ecology-efficient corridor projects. Summing up
the results of this investigation is the following draft definition:
Green freight transport corridors promote the development of a
‘greener-oriented’ transport system. They endorse the EU vision towards an integrated and sustainable transport system. Green corridors provide the most environmentally friendly, sustainable, efficient
and safest connections for freight transport in Europe.
Green corridors deliver transport solutions that are more economically,
ecologically & socially viable than other (non-green) corridors. Transports
within the corridors are efficient, and when possible the optimum transport
mode is used. Hence a large proportion of the goods transported within the
corridors are often international or other long distance transport, through
intermodal transports, with use of freight trains, inland waterways, modular road trains, trucks using alternative fuels, trucks with the best Euronorm, or other efficient and more environmentally friendly transport
modes between the transhipment points. At the transhipment points, the
goods will be shifted to local trucks in an efficient manner with regard to
time and costs, to be distributed to the receivers.
Each green corridor is defined by the basis of measurable indicators,
KPIs (Key Performance Indicators), whereby the corridor can be compared with the rest of the transportation sector in Europe and over time,
also compared with other environmentally friendly transport corridors and
itself. A green corridor is only green if the indicators relating to the specific
corridor are better than the European average and that there is continuous
improvement in these markers over time. Indicators should be linked to the
cargo volumes, environment, efficiency, economy, etc. It is also important
that only a limited number of measurable KPIs are chosen for each corridor, in order not to lose out on their comparability.
What will happen next?
As an integrated part of the development, a set of relevant and
generally recognised Key Performance Indicators will be developed
to survey the function and efficiency of the Green Corridor, in order
to facilitate a qualified interaction based on relevant and correct data
on the performance of the corridor, between the political and commercial actors related to a Green Corridor.
The development of functional and relevant performance indicators should include markers for evaluating the different parts
of the corridor itself, both in terms of organisational structure as
well as of operational processes. Such KPIs, together with relevant
steering and incentive programmes, are important elements in facilitating corridor management and governance in the future development of green corridors. The definition of green corridors as
well as which bottlenecks that constitute barriers meeting this definition, creates the basis for selection and implementation of KPIs
and what policy measures are needed to reduce these barriers.
Gunnar Fastén, PhD, NetPort.Karlshamn
Focus
Finance & insurance
Financial crimes in the supply chain
A complex web
After the September 11, 2001 terrorist attacks, supply chain security has become a major concern for international organizations and state governments, focusing on protecting the global supply chain from threats caused
by criminal activity such as terrorism, piracy, thefts or smuggling.
F
inancial flows, in addition to flows of
goods and information, are essential
in any supply chain. It is not questionable that these financial flows
should be protected from external
criminal activity. This is a task for both governments, customs administrations, as well as for
companies involved in international supply
chains. However, it sometimes happens that
a trading company or individuals themselves
become engaged in criminal activity, posing a
threat to public safety and also finance due to a
reduction in government revenue. Among the
financial crimes of this type one should mention trade-based money laundering (TBML),
cash smuggling and carousel fraud.
The Financial Action Task Force (FATF),
an intergovernmental organization for development and promotion of national and international policies to combat money laundering
and terrorist financing, classifies cash smuggling and TBML as money laundering. Cash
smuggling involves physical movement of banknotes by cash couriers or bulk cash smuggling.
In order to prevent such actions it has been
established that a person crossing the border
carrying EUR 10,000 or more in cash is obliged
to report this to customs authorities and document the origin and destination of these funds.
Trade-based money laundering
As defined by FATF, TBML is “the process
of disguising the proceeds of crime and moving value through the use of trade transactions
in an attempt to legitimize their illicit origins.”
This is most often achieved by implementing
some basic techniques, such as: over- and under-invoicing of goods and services, multiple
invoicing of the same goods or services, overand under-shipments of goods and services (in
extreme cases there are no goods shipped) or
by a false description of the shipment (when
there are goods of lower quality than those declared on the invoice). All of these techniques
enable exporters and importers to transfer huge
amounts of money without recording any additional financial transactions.
Over- and under-invoicing of goods and
services is one of the most common techniques
which allows transferring money by setting an
invoice price different from the actual value of
the subject. Besides the fact that such actions
serve to money laundering, they may also
cause a reduction in customs duties and taxes.
If this is the main purpose of such criminal activity, then it should be qualified as a customs
offense, rather than money laundering.
Why is TBML so attractive? Over many
years more and more cargo has been shipped
through state and customs borders which
makes detection of illicit shipments even more
difficult. In addition to this, governments have
no effective method of extracting such transactions. There is also not enough cooperation
between different authorized agencies in one
state and especially across borders. This makes
international trade transactions a very lucrative field for criminal activity.
According to the data revealed in 2009
by the US State Department, international
trade transactions are ground for moving
even billions of dollars in illicit transfers
across borders and there is little chance that
it will be detected and interdicted.
Carousel fraud
TBML usually serves to legitimize the
origin of illicit money, while VAT fraud is
rather used to steal public money which is
then forwarded through illegal channels to
eventually be laundered. VAT fraud is also
known as Missing Trader Intra-Community
(MTIC) fraud or carousel fraud. This system is
based on the special treatment of VAT within
the customs area of the EU, if the goods are
shipped to another member state. VAT is not
charged on intra-EU exports and the exporter
can reclaim the VAT paid. The buyer in another EU state must pay the reverse charged
VAT to his government, but before this is
done, he sells the goods to another company
and then vanishes (it is therefore called Missing Trader fraud). As the company usually
has no assets and the money has already been
transferred to other entities, the government
is not able to recover the payment. A variation
of this system, called carousel crime, assumes
that the goods are resold several times and at
the end they are usually sold back to the country from which they were exported.
The most popular goods traded for the
purpose of VAT fraud are small items of very
high value such as mobile phones or computer
chips, and more recently also some jewellery or
health products. Sometimes the goods do not
2/2011 | Baltic Transport Journal | 47
Focus
even leave the warehouse, as they are resold to
other operators on the basis of subsequent sales
invoices. Speed is crucial in such operations as
the goods must be resold before the buyer is
due to pay the VAT.
This kind of VAT fraud causes a real
loss to government finances. The European
Commission estimates that financial losses
to countries resulting from VAT fraud could
reach between EUR 60-100 bln. Moreover,
fraud also influences the trade statistics of the
countries involved. The missing trader usually
does not fill the Intrastat declaration (but the
exporter does), so there is discrepancy in the
data on goods exchange between countries.
countries. Therefore, international customs
cooperation seems to be the best preventive
measure. First of all, it should involve information sharing which should then be used
for the analysis of trade data in order to detect
anomalies and suspicious transactions. Establishing similar norms and formats of shared
data would help in this analysis.
Another way is establishing more transparency in international shipping. However,
this involves sharing a lot of trade data which
might be seen by some entities as violating
data protection. One of the steps taken in this
direction was the introduction of the 24-hour
rule (Advance Cargo Information) in the EU,
US, China and some other countries. The rule
What can be done
applies mostly to container shipments and
Preventing crimes such as TBML and VAT involves the transfer of accurate data on the
fraud, is a very difficult task, especially as these cargo, the shipper, and the consignee to cusactivities are rarely limited to only one deal. toms authorities of the import country. For
They rather form a complex web of financial better transparency, there are also some protransactions and shipments. The more trans- grammes based on WCO SAFE Framework
actions carried out after one another, the more of Standards, like AEO or C-TPAT, which
difficult it becomes to detect the real origin and involve voluntary information sharing by pardestination of the money and/or shipment.
ties involved in international trade.
One of the main factors contributing to
For better transparency of international
criminal activity in the international move- trade and financial transactions some laws
ment of money and goods is the crossing of have been established. The EU Directive
borders with different law and control systems 2005/60/EC prevents use of a financial syswith
information
sharing between
two tem 20:17
for thePage
purpose
TOClittle
CSC11
ad 184x118_BTJ:Layout
1 24/03/2011
1 of money laundering and
terrorist financing. The directive requires that
some listed entities and persons (financial and
credit institutions, certain legal and natural
persons working in the financial sector, providers of goods) apply customer due diligence
measures in case of cash transfers related to a
business relationship or occasional transactions
amounting to EUR 15,000 or more. They must
also report smaller transactions if there is suspicion of money laundering or terrorist financing.
The banking sector also has another chance to
check the shipments and money transfers if the
payment for the goods is on the basis of a letter
of credit or promissory note. This is, however,
only a small percentage of trade transactions.
Governments and international organizations put a lot of effort into trade facilitation.
However, there is a lot of criminal activity
which abuses this system in order to achieve illegal profits and laundering money. Given the
above information, one should not be surprised
if a government agency or customs authority
takes a closer look at some shipments, shipping documents or financial transfers. This,
of course, generates additional procedures,
time and cost, but it is done in order to protect
public safety and prevent financial losses.
Magdalena Jażdżewska-Gutta
Institute of International Business, University of Gdansk
w
Ne
TOC Container Supply Chain Conference
7–9 June 2011
Antwerp Expo | Belgium
Collaboration within the container supply chain
Learn about Port Centric Logistics
Debate with Supply Chain specialists
Network with leading cargo owners
Discover live results of GIL research
Your 3 day business & networking event
Part of the TOC Europe Conference & Exhibition
VIP rates for Terminal Operators & Shipping Lines…..Plus Shippers go free register your interest at
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Organised by:
From:
48 | Baltic Transport Journal | 2/2011
Port Partner:
Terminal Operator Partners:
Focus
The Danish Parliament has adopted new provisions on shipowers’ insurance obligation
©Det Norske Veritas AS. All rights reserved
Denmark is prepared for 2012
On 22 March 2011, the Danish Parliament unanimously adopted an amendment to the Merchant Shipping Act, Safety at Sea Act and the Seamen’s Act, initiated by the Danish Minister for Economic and
Business Affairs Brian Mikkelsen.
T
he bill establishes a statutory basis
for implementing the EU Directive
on the insurance of shipowners for
maritime claims. The purpose is to
protect the claimant better by requiring that
large ships take out liability insurance. Furthermore, the amendment forms a basis for
Danish ratification of the United Nations’ International Labour Organization’s Convention concerning work in the fishing sector.
The purpose of the Convention is to establish
minimum international standards for working conditions in the fishing sector, such as a
minimum age to work onboard a fishing vessel, hours of rest and occupational health requirements, including accident prevention.
The purpose of EU Directive 2009/20/
EC is to implement a third party liability
system for shipowners. The Directive complements Directive 2005/35/EC on ship
source pollution and on the introduction
of penalties for infringements and applies
to ships of 300 gross tonnage or more.
Insurance
The Directive provides for each Member
State to require that owners of ships flying its
flag have insurance covering such ships and
that shipowners of ships flying a flag other than
its own have insurance in place when such ships
enter a port under the Member State’s jurisdiction. This shall not prevent Member States, if in
conformity with international law, from requiring compliance with that obligation when such
ships are operating in their territorial waters.
The insurance shall cover maritime claims
subject to limitation under the 1996 Convention (1976 Convention on Limitation of Liability for Maritime Claims, adopted by the
International Maritime Organisation (IMO),
and amended by the 1996 Protocol). The
amount of the insurance for each and every
ship per incident shall be equal to the relevant
maximum amount for the limitation of liability as laid down in the 1996 Convention.
Inspections, compliance, expulsion from
ports and denial of access to ports
Each Member State shall ensure that any
inspection of a ship in a port under its jurisdiction in accordance with Directive 2009/16/EC,
includes verification that a certificate referred to
in Article 6 is carried onboard. If the certificate
referred to in Article 6 is not carried onboard,
and without prejudice to Directive 2009/16/EC
providing for detention of ships when safety
issues are at stake, the competent authority
may issue an expulsion order to the ship which
shall be notified to the Commission, the other
Member States and the flag State concerned. As
a result of issuing such expulsion order, every
Member State shall refuse entry of this ship into
any of its ports until the shipowner notifies the
certificate referred to in Article 6.
Insurance certificates & penalties
The existence of the insurance shall be
proved by one or more certificates issued by its
provider and carried onboard the ship. The certificates issued by the insurance provider shall
include the following information:
• name of ship, its IMO number, and port of
registry;
• shipowner’s name and principal place of
business;
• type and duration of the insurance;
• name and principal place of business of the
provider of the insurance and, where appropriate, the place of business where the
insurance is established.
If the language used in the certificates
is neither English, French nor Spanish, the
text shall include a translation into one of
these languages.
Member States shall lay down a system
of penalties for the breach of national provisions adopted pursuant to the Directive
and shall take all the measures necessary to
ensure that those penalties are applied. The
penalties provided for shall be effective, proportionate and dissuasive.
Transposition
Member States shall bring into force
the laws, regulations and administrative
provisions necessary to comply with this
Directive before 1 January 2012. They shall
2/2011 | Baltic Transport Journal | 49
©Det Norske Veritas AS. All rights reserved
Focus
forthwith inform the Commission thereof.
When Member States adopt these measures,
they shall contain a reference to this Directive or shall be accompanied by such a reference on the occasion of their official publication. The methods of making such reference
shall be laid down by Member States.
Member States shall communicate the
text of the main provisions of national law
to the Commission which they adopt in the
field covered by this Directive.
The Danish implementation
As mentioned in the introduction, the
Danish Parliament adopted the EU Directive on insurance for maritime claims with a
new Part 7A of the Danish Merchant Shipping Act, “About insurance for maritime
claims.” In the Act’s new provisions of Sections 153–155 the following appears:
50 | Baltic Transport Journal | 2/2011
Shipowners of ships flying the Danish
flag and of 300 gross tonnage or more shall
have insurance covering maritime claims.
The ship may not ply unless it has a certificate documenting that such insurance
is present. The certificate shall be carried
onboard and shown to authorities upon request. It is comparable with a bank guarantee or other financial security instruments
with equivalent safety conditions.
Accordingly, ships shall carry a certificate
proving that the requested insurance has been
taken out, and that the certificate obligation
can be fulfilled by the ship carrying a regular
“P&I Increase Certificate”. Contrary to the oil
responsibility obligations, including bunker
oil responsibility where a P&I Club statement
is required, this is not the case according to the
new provisions.
Following the Directive, the provision also
applies to vessels of 300 gross tonnage or more
not flying the Danish flag and calling on or
departing from a Danish port or other place
of loading or unloading in Denmark or on the
Danish continental shelf or performing tasks
in Danish territorial waters.
The said insurance also makes it possible to obtain compensation within the
limitations of liability that are found in the
provisions of the Merchant Shipping Act on
liability for damages on passengers. Hence,
for damages on passengers of the ship the
limitation of liability is for example 175,000
SDR multiplied by the number of passengers which the ship according to its certificate is allowed to carry.
The Danish Maritime Authority can determine the rules of the insurance certificate
including the information which the certificate shall contain. If a ship does not have
the necessary certificate the Danish Maritime Authority, or other authorities which
are authorized by the minister for economic
and business affairs to do so, may refuse the
ship admittance to Danish ports.
A ship which has been refused admittance to an EU Member State port due to
lack of a certificate, may not call on a Danish port until it is able to demonstrate a
valid certificate.
This Part of the Merchant Shipping Act
shall not apply to warships, auxiliary warships
or operated ships used for a non-commercial
public service.
EU Member States are obliged to adopt
provisions on insurance for maritime claims
against the shipowners. The new Act in
Denmark is expected to become effective
as at 1 January 2012 so that Denmark will
observe the provisions of the Directive.
Henrik Kleis
Henrik Kleis is an attorney-at-law, an Honorary British Consul and
a partner at DELACOUR DANIA – law company admitted to the
Danish Supreme Court. He specializes in transport shipping and
international commerce. DELACOUR DANIA has offices in Aarhus,
Copenhagen, Nuuk, Tórshavn, Moscow, Kiev and Warsaw and
some 200 employees, of whom approx. 80 are lawyers. For more
information about Henrik as well as his company, please visit
www.delacourdania.dk
Logistics
A look into the future
Make mobility greener
Reflecting on long-term changes in the social, economic and technological environment can help turn new trends
into a competitive advantage. For that reason I want to dedicate this text to some of the various megatrends and
their related challenges that can be expected to affect the Baltic logistics markets over the next decades.
G
lobalization enabled by trade liberalization and by revolutionary
developments in transport and
communication technologies
has changed our perception of
distances and time barriers. The EU’s integration with other regions is likely to continue and
the Baltic region can benefit from this process a
lot. Economic crises and geopolitical instability
are not relevant from a long-term perspective,
as the economic growth of emerging markets
implies further globalization. Transport outside
Europe will increase much more than inside
Europe and consequently, the EU’s external
This tendency will be pushed by improved travelling options and foreign language skills as well
as by amalgamation of the internal market. The
ongoing elimination of administrative and legal
barriers will act as a stimulant factor here. Net
migration to the EU is projected to add about
50 mln people to its population by 2050 and
will play a significant role in mitigating the effect of ageing on the labour market, but it is extremely difficult to forecast in the long run. Migrants, usually young and living in urban areas,
will create cultural and economic links with the
countries of their origin, generating additional
movement of both people and goods.
trade and transport are likely to keep growing.
The increase in world population by roughly
one third by 2050 will have a tremendous impact on global resources. Obviously, more people and more prosperity mean more mobility
and more transport; therefore, green transport
systems consuming fewer resources will be essential. It is forecasted that the number of vehicles in the world will have exceeded 3 bln in
2050 against 700 mln today, creating serious
problems, unless a different concept of mobility
is introduced with lower or zero emissions.
Mobility of the workforce, students, entrepreneurs and retired people is expected to rise.
The proportion of the population living in
urban areas is projected to exceed 80% in 2050.
The urban sprawl is the main challenge for urban transportation and distribution systems.
It causes both congestion and environmental
problems. Urban road transport accounts for
40% of carbon dioxide emissions and 70% of
emissions of other pollutants. Urban areas
are the nodal points in freight and passenger
transport systems. Congestion in agglomerations and in their access routes is responsible
for delays and higher fuel consumption. It has
a negative impact on inter-urban travel and
transport. The availability of land to construct
52 | Baltic Transport Journal | 2/2011
infrastructure for public or alternative means
of transport will remain limited and a great
challenge for urban development.
The median age of the total population is
likely to increase due to the combined effect of
the existing population’s structure, low fertility
and a continuously increasing number of survivors to higher ages. The Baltic region will be
hard hit by the demographic factor. By 2060,
the median age is expected to be more or less 10
years higher than today. According to the latest
Eurostat projections, the old-age dependency
ratio is prospected to increase substantially.
Today there are four persons of working age
(15-64 years old) for every person aged 65 years
or over in the EU, whereas in 2060 the ratio is
expected to be 2:1. Besides the dramatic scarcity
of labour and skills, another factor will emerge.
Although people above a certain age travel less
than when they were younger, older people of
today tend to travel more than their parents
did. Through its allocation effect on public finances, ageing will have a negative impact on
the supply and maintenance of transport infrastructure. An ageing society will place more
emphasis on the quality of transport services,
expecting a high level of security, reliability and
disability facilities. All these aspects may result
in higher transport costs for society.
Another long-term concern to be addressed
today is the price of oil and other fossil fuels,
which is expected to grow over the next decades. Demand will follow the expansion of the
world economy, with production costs jumping by the time low-cost sources are exploited.
It is common sense to move to a low-carbon
economy. Growing concerns about energy security and nuclear power will help to establish
a supply chain of renewable energy. The shift in
relative prices will determine the attractiveness
of investments in alternative energy sources.
Production costs will go down as a result of
technological progress and economies of scale.
Some technologies are already here, whereas
others, like fuel cells or batteries, still need to
be worked on. It should be noted that energy
transition will be far delayed by the process of
building the supporting infrastructure. Furthermore, city design and social aspects should
be addressed. How to transmit energy over long
Logistics
distances is another question to be answered.
As a consequence of such transformation,
transport of fossil fuels, currently making up
around one half of the volume of international
shipping, will be reduced.
A recent report by the European Environment Agency shows that many citizens are exposed to high levels of air and noise pollution.
The EU has already adopted a climate and energy package to lower greenhouse gases. The
logistics sector plays a key role in reducing its
negative impact on the environment. For example, the concentration of particulate matter
(<10 µm), of which transport is claimed to be
the main source, exceeds the limit value in many
air quality zones. Also, pollution from shipping
emissions of nitrogen and sulphur oxide (NOx
and SOx) needs to be addressed. Transport itself
will suffer from the effects of climate change.
Global warming resulting in rising sea levels
will amplify the vulnerability of coastal infrastructure and ports. Droughts and floods will
pose problems for inland waterways, railroad
and road systems. Extreme weather conditions
will occur on a regular basis, affecting the safety
of all modes; therefore, huge adaptation measures will be required. It will be a real challenge
to develop and implement these, but they offer
opportunities for further economic growth and
technological leadership.
The transport sector ensures that freight
gets from A to B. The wealth of nations is largely based on trade. Therefore, trade is essential
to maintain economic wealth. Today, it cannot work without efficient logistics seeking to
move products in the supply chain. For a typical product the chain starts at the raw material
source and extends over the entire production
and distribution system to the point of consumption and the associated reverse logistics.
Activities include freight, storage, inventory
management, handling and all related information processes, coordinated to meet customer
requirements at minimal cost. In the past, these
costs have been defined purely in monetary
terms. In the future, the external cost of logistics
implied by climate change, air pollution, noise,
vibration, or accidents will have to be addressed.
The main challenge is to reduce such externalities and achieve a balance between economic,
environmental and social objectives.
Road transport is clearly the largest energy
consumer eating up almost 85% of total final
energy consumption in the transport sector.
At the same time, road transport is the largest emitter of greenhouse gases ejecting nearly
95% of transport emissions. International aviation and maritime transport as well as electrical
traction for rail transport are excluded for statistical reasons, but there are debates on road
haulage and aviation as the fastest growing polluter, while the emissions of maritime transport are often underestimated and are likely to
be examined more carefully in the future. Generally, not all trucks on the road are loaded. The
share of deadhead runs depends on the kind of
transport and ranges from 15% to 40%. Despite country-specific limitations, there is still
room for improvement here. The main obstacles to sustainable transport are the imbalance
in development of different transport modes,
congestion on routes and cities, and the impact
on the environment as well as bottlenecks in
trans-European networks (TENs). To unblock
major transport routes and ensure sustainable
transport, strong efforts are needed including
major technological projects. Moreover, the
structure and location of manufacturing industries is changing. Advanced supply-chain
management systems require just-in-time
delivery. The aim is to improve synergies by
integrating different transport modes in logistics chains and to reduce the environmental impact per unit of freight. Other policies
are targeted to boost inland waterways, green
power in trucks, or rail and maritime connections for long-distance freight transport to
make mobility greener and more efficient.
Professor Dr. Dieter Rebitzer
2/2011 | Baltic Transport Journal | 53
Events
World’s TFL industry will soon meet in Munich
Starting May 10th, one of Germany’s largest cities, Munich, will be hosting exhibitors from all over the world to
attend the International Exhibition for Logistics, Mobility, IT and Supply Chain Management – Transport Logistic
2011. The agenda covers logistics and freight transport, telematics and in-company transport and material flow.
T
his year’s event is expecting to
see even more exhibitors than
in the record-breaking fair in
2009, even though marked by
the global economic crisis. The
organizers expect more than 1,880 representatives from 59 countries and 48,000
visitors from around 112 countries. This
year Transport Logistic will be as usual attended by the top transportation industry
players, logistics services providers, commercial vehicle and trailer manufacturers
as well as IT solutions providers.
Transport Logistic Munich will be accompanied by a number of supporting events,
discussion forums and two sector conferences. The 5th Air Cargo Europe Conference will
provide an expert overview of new markets,
trends and innovations in air transport. The
topic of security and quality requirements
versus the constant demand to cut costs will
be high on the agenda. Saving fuel costs along
with reducing carbon and sulfur emissions
Advertisement
54 | Baltic Transport Journal | 2/2011
are focal points for all transport sectors and
modes. „Slow steaming” as a method widely
chosen in container shipping will be among
the latest trends to be discussed at mariLOG
– the 6th International Conference for Maritime Logistics.
The EU’s goal to double the volume of
freight traffic on the railways by 2026 has
given particular weight to the rail transport section of the transport logistic fair.
And again, the requirement to reduce carbon emissions is among the main drivers
behind the latest trends of that sector. As
the proportion of freight travelling by rail
and inland waterways for distances of over
350 km should increase to at least 50% by
2050, measures to be taken include efficiency improvements, investments in the
infrastructure and elimination of bordercrossing barriers.
May 13th was selected as the ‘Executives
Day’, to provide a chance for visitors to seek a
dialogue and in-depth personal discussions
with senior executives and technical managers from the attending companies. This
will provide an opportunity to arrange appointments with companies that may be
interested in business partnerships and
collaborations.
A debate between people in charge of
transportation policy and representatives
from the logistics industry is also planned
for the last day of the fair. Everyone agrees
that the infrastructure urgently needs to be
expanded, but which of the available projects
should be set as a priority before the rest?
The debate participants will try to answer
this and many other questions.
The entire fair is organized by Messe
Munchen International, one of the world’s
leading trade-fair companies. The conference will be held in the New Munich Trade
Fair Centre, starting from May the 10th. Be
sure not to miss it. Bartosz Szczepaniec
Małgorzata Nosorowska
Celebration of the sea
This year the European Maritime Day for the first time will be held in the
Baltic Sea region – in the Polish city of Gdańsk. The event will take place
under the motto ‘Maritime policy: putting people first.’
T
he European Maritime Day was
established on the 20th of May,
2008, by the Joint Tripartite
Declaration of the European
Parliament, Council of the European Union and European Commission.
The idea was to highlight the importance
of the seas for EU inhabitants and underline both opportunities and challenges for
maritime regions. The declaration stresses
that 22 of 27 EU members are costal or
island states and that approx. 40% of the
Union’s GPD and population comes from
regions around the sea. Since 2008 the European Maritime Day Conference has been
organized annually, each time in a different
country. It has already taken place in Brussels, Rome and last year in Spanish Gijon.
This time Gdańsk was chosen as the host
city and the event will be a result of cooperation between the European Commission,
the Polish government, the Pomeranian
region and the City of Gdańsk.
The conference will be held on the 19th
and 20th of May, although side events will
continue over the weekend. The European
Maritime Day is a perfect occasion for highlevel politicians and maritime experts to meet
and exchange opinions, although everyone
interested in the subject is invited. The main
conference, during which speakers from all
over Europe will bring up subjects vital to the
Baltic Sea Region and maritime economy in
general, will take place on the 19th of May. The
keynote speeches will be delivered by Maria
Damanaki, European Commissioner for
Maritime Affairs and Fisheries, Siim Kallas,
Vice-president of the European Commission
responsible for Mobility and Transport, and
Janusz Lewandowski, European Commissioner responsible for Financial Programming and Budget. According to the motto:
‘Maritime policy: putting people first,’ part of
the programme will focus on education and
employment, in particular how to make careers within the maritime industry attractive.
The conference schedule also includes seminars that rise environmental issues. It involves discussing the future of the BSR based
on the first years’ experience in implementing
the EU’s strategy for the region. The ecosystem-based approach to managing sea-related
activities and the promotion of economically
sustainable maritime transport in the context
of climate change are just a few of the topics. On the 20th of
May, the conference premises will
be given to maritime stakeholders
who will hold their
own events. Some
fifteen
different
events are foreseen.
As Polish Undersecretary
of
State in the Ministry of Infrastructure
Anna
WypychNamiotko stated,
“I am proud that
the
celebration
of the Maritime
Day will be held
in Gdańsk – the city with a centuriesold tradition, inseparable by the sea. The
Commission’s and Member States’ choice
to make Poland the host of the event is a
great honour, it expresses the recognition
of our country’s involvement in the realization of Integrated Maritime Policy.”
Commissioner Maria Damanaki said that
„Gdańsk is the perfect location to host
the European Maritime Day, which has
established itself as a major annual event
for everyone who takes an interest in
maritime issues”. Mayor of Gdańsk Paweł
Adamowicz added: “the Organization of
European Maritime Day 2011 in Gdansk
is not accidental. This precious initiative
is a perfect chance to exemplify historic
heritage, the present and the future of
Gdansk – a thousand year old city connected with the sea and sea trade. I hope
every participant will not only exchange
opinion during official meetings but also
will have closer look into historic heritage
of Gdansk and the potential within our
city and its people which are for generations closely connected with the sea. You
are warmly welcome to visit Gdansk!”
Apart from the conference, other less
official attractions are also scheduled – concerts, shows, exhibitions and contests will be
organized in different parts of Gdańsk. Inhabitants and tourists can take part in presentations of regional cuisine, a traditional
boat building show, a Greenpeace photo
exposition and much more. The EMD goes
hand-in-hand with the 4th Baltic Sea Tourism Forum and the opening of the national
sailing season in Poland. From the landing
pier all participants will be able to admire numerous yachts that will arrive to Gdańsk specifically for the European Maritime Day.
Karolina Reszczyńska
Photo: Marine Foto
Photo: The City of Gdańsk
Events
2/2011 | Baltic Transport Journal | 55
Collector’s corner
A pretty and efficient marketing tool
C
ontrary to popular belief that
the oversupply of images has
diminished the role of postcards today, postcard publishers notice in sales that their
product is growing. The reasons are many
– it is the cheapest, most portable and
easiest souvenir to take home and store.
The quality of an image is quite high as
a professional photographer usually has
more favourable conditions when taking a photo than the average tourist has;
moreover, his or her vision is much closer
to the ideal conception of a poster seen
in a travel agency. A postcard is also the
cheapest gift and an excellent medium
for marketing oneself. And, if you send a
personal message: “I am here,” “I am an
explorer,” “I am thinking of you everywhere I go…,” you also send ‘direct mail’
promoting both your destination and the
general purpose of travel.
We cannot imagine a tourist destination without postcards and people buying
them. All iconic places are surrounded by
racks full of colourful pieces of cardboard.
But it seems that most railway stations,
ferry terminals, and airports are exceptions from this general rule, although
means of transport are also icons of our
civilization. Vehicles of different modes
of transportation are a hobby for millions,
but postcards depicting trains, ships, and
planes are treated as a niche product for
museum boutiques only.
BTJ’s editorial team has prepared a
poster display for Transport Week 2011 in
Gdańsk, depicting Baltic ferries and ferry
terminals. We want to remind you of the
history of ferry business from its very beginning as well as the significance of postcards as a marketing tool. Postcards selected from Adam Daszewski’s collection*
show the very best as well as middle-ranged
maritime art printed in a mass visual medium. These high quality pictures follow the
rules of modern tourist postcards – they
are striking, aesthetically pleasing, informative, easy to digest visually and, if possible, taken from a vantage point impossible
to reach for the viewer (hence the popularity of aerial views). The best postcards
combine two icons into one composition
– a vessel and a piece of architecture or
nature. For instance, they show the functional unity of a vehicle and a destination
for potential passengers and tourists to
visit. It is interesting that rules of popular
visual art were applied at the beginning of
the Baltic ferry service; our poster with the
first ferries serving Königslinie shows two
great examples of historic postcards: SS
Deutschland and HMS Drottning Victoria,
the latter taken against the background of
the cliffs of Rügen.
All in all, postcards are efficient marketing tools, so follow the old example,
sell your editions not only in your terminal but also in the network of travel agencies and at least in inland gift shops for
foot passengers. It will have a greater effect than an army of hostesses distributing flyers in the streets of a port town.
*Adam Daszewski, a journalist from Silesia, owns 16,000 maritime postcards and thousands of other maritime memorabilia.
Gothenburg
Grenaa
Gdynia
56 | Baltic Transport Journal | 2/2011
Marek Błuś
Transport miscellany
engineering took place in Germany. Similarities to the 90-year older Wal are striking – an
umbrella wing, two engines in line, pulling
and pushing propellers and side floats integrated to the fuselage. The main difference is
the all-composite construction of the Seastar
against the all-aluminum of the Wal.
The phenomenon of collectibles from the
interwar period lied in their focus on work, its
tools and fruits, independently of their beauty.
A Polish maker of chicory coffee F. Bohm &
Co. published a trading card depicting a discharge tippler (the worlds’ largest at that time)
from Port of Gdynia, made by Demag. The machine was able to pick up a railcar containing
20 tonnes of coal every three minutes, move it
over to a ship, dump its cargo to the hold (this
moment is just depicted) and put the car on
the rails. The caption reads: “The Polish sea.
Coal handling”; and the slogan: “Each home
drinks Bohm coffee everyday.”
Illustration: Adam Daszewski’s collection
The more freedom the less safety?
The postcards displayed
and described in the Collector’s corner have presented,
among others, a picture of the
ferry Putbus which crossed
the narrow Strelasund Strait
between the German mainland and Rügen island until
1936. We would like to draw
the reader’s attention to the
people who left the railcar;
some, including the lady in
the white dress, chose a rather dangerous place – unprotected by bulwark. Was this
freedom or a class privilege?
We’ve got quite an intriguing picture in
our archive that depicts a beautiful maritime portal. Please note, the ship seems
unusual – she is a steamer with furled foreand-aft sails. And composition is asymmetrical; on the left we see a fisherman’s
anchor, on the right – a stockless one.
The photo is not signed; we know neither
who the author is nor where he or she has
pushed the shutter… We would be very
obliged if you could help us with any information on this mystery photo.
Illustration: M. Błuś collection
A mystery portal
50 years of Amphicar
Illustration: J. Miciński collection
Photo: Dornier Seaplane Co.
The Dornier’s flying boat Wal (Do-16)
has recently been the most mentioned airplane in our two neighbouring columns. This
unique machine has a modern successor,
named Seastar, developed by the newly established Dornier Seaplane Company. Seastar’s
assembly has just started in Canada but the
Added to chicory
Illustration: myvimu.com
Rebirth of the Wal
This anniversary should not be forgotten
– in 1961 began the production of the car
included in Time magazine’s “50 worst cars
of all time”. Such appraisal is unfair because
Amphicar is the only civilian amphibious
land vehicle which had commercial success
– almost 4,000 cars were sold despite their
high price, most in the United States, and
around 500 are still in use. Masterminded by
two Germans – Hans Tippler (engineering)
and Harald Quandt (financing) – the cars
were assembled in West Berlin until 1968.
The picture shows the finish of its first sea
crossing – from Calais to Dover – made by
two Frenchmen in 1962 (you can find more
at: www.amphicars.com).
2/2011 | Baltic Transport Journal | 57
Who is who
Prepared for the spring energy boost
NICLAS MÅRTENSSON
Honorary consul
of the Republic of Poland
FLORIAN PFAFF
Lufthansa Cargo’s VP,
Area Management Germany
Niclas Mårtensson, Stena Line KarlskronaGdynia route director, has been appointed honorary consul of Poland in Karlskrona and will be representing the country
in the south-eastern part of Sweden. Last
year, in addition to his former duties, he
was put in charge of Port of Karlskrona’s
management. The ceremony on his appointment took place on 22 March 2011.
Florian Pfaff took over the duties of vice
president of Area Management Germany
1st May. His career at Lufthansa started in
1989 and since then he has been making
his way to top-level positions. He has held
a number of posts mainly in Germany but
was also appointed director of sales, USA
West in 2000. Since 2006 he has held the
office of VP Area Management Europe
and Africa.
VICTORIA MOORES
AEA’s general manager,
Communications
ROGER CROOK
Board member for DHL Global
Forwarding
Victoria Moores’ career in the aviation industry began in 1997 with British Midland
International. She holds an Air Transport MSc
from Cranfield University and a business
degree from the University of Derby. Working closely with the Association of European
Airlines’ 36 members and reporting directly
to the secretary general Ulrich SchulteStrathaus, Victoria will be in charge of the
association’s communications strategy.
The supervisory board of Deutsche Post
has chosen Roger Crook to join its board
of management responsible for DHL
Global Forwarding, Freight. Roger, a trueborn Englishman with over 20 years of
experience in the logistics industry, will
be based in both Bonn and Singapore.
Recently, he has been responsible for
DHL Express Asia Pacific, Eastern Europe,
Middle East and Africa.
MORTEN HAURE-PETERSEN
CCO at Scandlines
ALBERT VYGOVSKIY
Managing director of North-Western
Shipping Company
Morten Haure-Petersen comes from
Denmark, where he obtained his MBA
degree from the Scandinavian International Management Institute. He is
highly experienced in catering and trade
and has worked as vice president Europe
at Gate Gourmet. Recently he occupied
the position of CEO in Apetito Catering
Europe. As Chief Customer Officer at
Scandlines he will be responsible for passenger sales, retail and food supply.
Albert Vygovskiy got his maritime engineering education at the Russian State
University named after Kulibin and
Nizhegorodskiy. He is a former head of
Volgo-Baltic Logistic, a company affiliated to North-Western Shipping. Now, at
the age of 42, he is going to continue his
career as managing director of one of the
largest companies in the Russian water
transport system.
JOHAN CASTWALL
New CEO of Ports of Stockholm
PER SJÖGREN
Ystad’s maintenance manager
Johan Castwall is 47 and previously occupied several positions within the City
of Stockholm, such as head of public
relations for the Traffic Office. His main
objective at his new position will be
leading the group through a number of
future investments. Johan will take up
the post on 15th April 2011.
Per Sjögren was chosen by Ystad Port Logistics for a maintenance manager position.
Per Sjögren is a 53-year-old Marine Engineer. Before joining the Ystad team he held
several positions in the shipping industry
either onboard or onshore. His new main
occupation will be the port’s maintenance
on a day-to-day basis as well as in prospective terms.
58 | Baltic Transport Journal | 2/2011
16th INTERNATIONAL
EXHIBITION & CONFERENCE
FOR TRANSPORT
AND LOGISTICS
www.transrussia.ru/eng
TRANSRUSSIA
TransRussia moves to
26 − 29 APRIL 2011
a larger pavilion in 2011
EXPOCENTRE • MOSCOW • RUSSIA
Official Support
•
Ministry of Transport of Russia (incl. railway, road, sea/river and air
transport agencies)
•
Federal Customs Agency of Russia
•
JSC Russian Railways
•
Freight Forwarders' Association of Russia
•
EuroAsian Transport Union
•
The Guild of Freight Forwarders
Enquiries
Julia Wocka-Gowda, Senior Event Manager
T: +44 (0) 20 7596 5188
E: julia.gowda@ite-exhibitions.com
GENERAL
SPONSOR
Lange Wapper performing dredging works in the access channel of Port of Riga, Latvia.
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
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
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Extension of Pier III in the harbour of Rostock, Germany.
Creating land for the future
