Danish Maritime Magazine 06-2011

MARITIMEMAGAZINE

DANISH

6 - 2011

ERHVERVSMAGASINERNE

Niels Smedegaard’s turn around:

Success for DFDS where others are depressed

Shipowners fear wasted investments

Making ballast water treatment cheaper

It works:Continued strong Danish focus on combating piracy

ISSN: 1903-5888

EditorRené Wittendorff [email protected]

AdsMads MelinPhone (+45) 2785 [email protected]

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Printing: PE offset A/SLayout: Michael Storm, DesignuniversImage editing: Nini Wittendorff Next issue: 23rd of February 2012

Copyright

6-2011

4 Ballast water problems:


6 Wartsila ballast water treatment:

Don’t be surprised when the rush comes

8 Litehauz on ballast water systems:

Still no boom in sight

10 Alfa-Laval:

Setting new standards for ballast water treatment

11 Testing new concept:


12 It works:

Continued strong Danish focus on combating piracy

14 Niels Smedegaard’s turn around:


17 Tough motivation: The DFDS way to do it

20 Danish minister for shipping:

New strategy for Danish shipping to create growth

22 Danish ports also have a role to play

22 Exploit the green growth potential in The Blue Denmark

24 Turning the time 20 years back can solve

EEDI problem within shipbuilding

26 Norwegians pioneer new lease of life

for North Sea fi elds

28 Competence Development, Innovations,

and Entrepreneurship in the Danish Maritime Cluster

30 Trade Event 2011

Daily news and free E-mag on:

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MARITIMEMAGAZINE

DANISH

6 - 2011

ERHVERVSMAGASINERNE





It works:Continued strong Danish focus on combating piracy

DFDS

- We are talking about massive investments with quite some

challenges. The convention is from 2004, when the expecta-

tions were that today we would be further ahead with tech-

nological developments and solutions available, making the

prices reasonable, says head of division in Danish Shipown-

ers’ Association, Peter Olsen.

- We must say that when we look at things right now, where

markets are generally under pressure and some companies

do not make much money, we worry if the time is right to go

out and make investments for millions of DKK in something

that you in reality might fi nd a little unsure. Will it work? We

must remember that there are requirements in the Conven-

tion that you should clean the tanks when at the same time

there is a lot of fouling on the hull. The fundamental question

is, whether this is actually an environmentally sound invest-

ment, he says.

Extra regional demands

- Another focus of ours is the question of regional imple-

mentation. The basis for the Convention has been that

one should not mix invasive species from ballast water be-

tween the continents. But when we speak with the mari-

time administrations in Northern Europe it appears that

they believe that the rules should apply to regional ship-

ping as well. We are especially concerned, when this issue

is connected with sulphur demands, because of which the

sailing in the Baltic Sea will require scrubbers or oil with

low sulphur content. We have to deal with both the sul-

phur problem and struggle to manage the massive invest-

ments in clean ballast water, Peter Olsen says and asks:

- Is there a real danger if we don’t purify. The Convention of-

fers the option that one can be excluded entirely from the pro-

cedure if you sail in one and the same area or even that you

can get a time based exemption for up to fi ve years if you have

made prior risk assessment.

Short sea pressure

- It is said that when sailing between two specifi c ports there

is no risk because the water you take up and emit is the same

- there are no target species. For us it is crucial that short sea

shipping will have an exemption. Otherwise it may be an eco-

nomically heavy challenge, Peter Olsen says.

By Finn Bruun

Ballast water problems:

Shipowners fear wasted investmentsThe Danish Shipowners’ Association is not completely convinced of the en-

vironmental wisdom in the IMO’s ballast water convention, and the associa-

tion worries, if the huge investments required are bringing about the right

results. Regional North European implementation is not welcomed by the

Danish shipping companies.

Peter Olsen, head of division in

Danish Shipowners’ Association

warns against huge investments

without the prober environment

results.

Ballast water problems: Shipowners fear wasted investments4 Daily news on www.danishmaritimemagazine.dk

The Pirate season is approaching

Organisers: Posidonia Exhibitions SA, e-mail: [email protected]

www.posidonia-events.com

Posidonia4-8 June 2012, Metropolitan Expo, Athens Greece

The International Shipping Exhibition

A unique blend ofbusiness and social interactions

at the heart of Shipping

Be part of the great Posidonia experienceat a state of the art new venue

Wartsila ballast water treatment: Don’t be surprised when the rush comes

- Progress has most of all been on the fi lter-side, which makes

purpose built solutions to be used in retrofi t current. We have

at Wartsila been a little reluctant in order to get hold on how

they think in the U.S. Coast Guard, which is a rather crucial

point for us. So we have not implemented the full release of

our product line.

- We ran tests in a facility, which has recently been replaced

with another one so as to run all our models in high fl ow, says

Tom Nyman, General Manager, Water Solutions, Wartsila.

- Perhaps we are a little late, but on the other hand we can an

advantage: When we come out with our solution, it will be the

latest update.

- Now we have a test option that interacts with our redesigned

fi lters enabling us to run land-based test on all models. We do

not use scaling but validate at full capacity, he says.

- At the moment the industry is waiting because there is

much confusion on Port State Protocol and US Coast Guard

position and Clean Water Act along with the individual states’

own acts. The USA is working to get a comprehensive solu-

tion. This will help both operators and customers.

Today there is no defi nite ruling, Tom Nyman points out.

DELIVERS TODAY- Carrying out all tests and documentations and consistency

tests takes a long time and it requires a lot of efforts to get all

tests to be consistent.

You not only have to focus on the biological side, it takes a

smooth operation as well. Today, very fi ne fi lters are used,

says Tom Nyman, indicating that Wasila today can deliver cer-

tain number of sizes for ships.

- We have half the line of products we plan to have in the

future - every unit is tested completely for itself with its own

fl ow control. We make parallel units that are 100 percent

compatible.

We operate worldwide and have 60 offi ces in 70 countries

and a widespread service network.

On the question of when demand for the products really will

come, Tom Nyman answers:

- I personally believe that it starts to go up in 2012, although

some probably will wait until 2013-14. But that is almost too

long to wait to order.

- There are many suppliers, but very few who have the equip-

ment ready. A good tip is to be ready by 1st of January 2012

Phot

o: W

arts

ila

Wartsila is a global leader in solutions for the marine

markets and engaged in ballast water treatment system

for the shipping industry.

6 Daily news on www.danishmaritimemagazine.dk

Wartsila ballast water treatment: Don’t be surprised when the rush comes

because ratifi cation is imminent. Many states are about to

sign, including Denmark.

EASY TO UNDERESTIMATE- But I think that some ship owners underestimate how

much time should be calculated. It takes up to 6-8 months

for delivery by suppliers and 2-3 months for installation. So

I think it will all go quickly, and once the boom begins lon-

ger lead time must be expected, says Tom Nyman, who es-

timates that rapid installation hardly is any competition

parameter for companies, because everyone will need it.

- We’ve seen other regulatory situations such as the EU regula-

tion on low NOx fuels in port. The shipping industry believed

that it would take a long time, but it didn’t. Maybe they expect

to have in ballast context a long transitional period and excep-

tions. I think that it gets tough, when the convention demands

take effect, he indicates.

- There are several suppliers with fi lter and UV solutions. Water

treatment has taken place since the beginning of 1900 and all

that has been tested on land must be tested at sea, it creates

new innovation. But at sea there is a wide range of water quali-

ties - ships move from Arctic waters to the tropics. So there must

be an adjustment. This is refl ected in our technology choices.

- We can as a matter of fact deliver today, but the certifi cation

is determined by the endurance tests that we start up in the

new year, says Tom Nyman.

EASY TO INSTALLWartsila and Trojan Marinex cooperates on a compact design,

making it easy to install and suitable for most vessels. The

system treats the ballast water via a two-step process, fi rst

by fi ltering out larger organisms and particles, and then by

UV disinfection. The UV irradiation either kills the remaining

organisms, or renders them incapable of reproduction. Each

unit is capable of treating 500 m³ ballast water per hour, with

the possibility to install several units in parallel for higher

fl ow rates.

By Finn Bruun

WARTSILA BALLAST WATER TREATMENT:

Wartsila plays an important role in the development of

systems for ballast water treatment, and general manager

Tom Nyman, Water Solutions division, warns that shipping

companies might underestimate how long time it actually

takes from order date to complete installation. The rush

can come soon.

RUSH COMESDON’T BE SURPRISED WHEN THE

7Daily news on www.danishmaritimemagazine.dk

Litehauz on ballast water systems: Still no boom in sight

Frank Stuer-Lauridsen of Litehauz, consultants specializing in

ballast water questions, points out that a lot of companies are

in the process of developing systems, but yet only few with a

market ready system and even fewer, who can deliver a sec-

ond generation system. This leaves shipping companies with-

out many options.

- The big problem is the lack of proven second generation sys-

tems that has lived for some years on the market. Everything

is quite new and the Convention is not yet in force.

But when it’s opened, fi xed dates will be binding. We just

need one large tonnage country to open it.

- Here we talk about investments in the range of 50 billion USD.

Companies like Maersk have placed orders in a few systems

but not for the entire fl eet. What you hear is that they’re still

in open process. The orders are primarily to fi nd the suppliers

who are able to deliver what they need - not many other Dan-

ish companies have as far as I know placed more orders.

The market lies fully open. Ship owners often want to be as-

sured not only that the systems work but also that suppliers

can actually live up to their commitments with parts and ser-

vice. This means an even greater challenge for a small devel-

oper of ballast systems to convince the large carriers that they

will be on the market in 5-10 years. It’s a little easier for large

and reputable suppliers.

Danish challenge

Danish companies have a good chance to be a part of the com-

ing development. They already are active. This also applies to

Desmi Ocean and Bawat. Aalborg industries - today owned by

Alfa Laval - has a robust system, which is now in focus.

Frank Stuer-Lauridsen fi nds that even if only a few small sup-

pliers are in the game, it is possible for them to gain the mus-

cles through investors or the Danish Maritime Fund, where

you can get funding for this kind of development.

- There is no doubt that the Danish maritime sector has a

strong position in the development of these systems. We have

a Danish land based test center and it means a lot to have it in

the neighborhood, enabling you to quickly make adjustments

and to build up a competence in order not to waste too much

time and make too many mistakes. The DHI test center in con-

nection with the port of Hundested is up and running after

receiving a grant from the Danish Maritime Fund.

Boom in three to four years

Litehauz as well is busy and probably the one advisor deliver-

ing the highest portion of consulting in this fi eld in the world.

We have 6-7 developers as customers, he says.

- We provide guidance about the Convention and work with

both authorities and shipping companies because the con-

vention leaves room for interpretation. There are exceptions

or exemptions that some companies might exploit, he ex-

plains.

- Regarding systems, we help the developers get their strat-

egy in place and to avoid mistakes and make agreements with

subcontractors and write applications, he adds.

- Ballast water is very important in our profi le. Actually I

thought that we already would be in the middle of a boom

by now, but the market is so attractive for development and

so important for owners that everybody will be sure to take

the right decision. Therefore I expect that the market will not

boom until three or four years from now.

When about 50,000 ships need installation, the market the

market will be huge, and then fall back to only newbuildings,

where we will be down to maybe 1500 or 2000 ships. There

will always be some work to do, he expects.

He counts 3-4 different ways to treat ballast water, two

of which are fundamental - namely to fi lter out the prob-

lem of the unwanted organisms and treat with light.

The second way is to add a kind of disinfection - by chlorinat-

ing or using electrolysis or ozone. But you want to be sure that

you have a system which is robust, he states.

By Finn Bruun

Litehauz on ballast water systems:

Still no boom in sightThe ballast water challenge is approaching and a lot of shipping compa-

nies are preparing themselves. But they want to be sure to choose the right

system. Today the number of systems with much on-board lifetime is small

but for shipowners the investment is huge and it is a marriage for life once

you’ve selected your system.


Litehauz on ballast water systems: Still no boom in sight

Photo: Frank Stuer-Lauridsen

Frank Stuer-Lauridsen, Litehauz sees

great opportunities for Danish maritime

industry as suppliers of ballast water

treatment solutions for shipping.


Alfa-Laval: Setting new standards for ballast water treatment

- We have been working in this fi eld for a long time and

see ourselves - which may well also be documented - as

a commercial leader in the market for ballast water sys-

tems, says CEO of Alfa Laval, Denmark, Casper Andersen.

- We have had a ballast water system since 2006, when we

fi rst launched it. Our system has been chosen by many cus-

tomers, and we are the ones with the most installations on-

board various ship types.

Our company has a global platform of ballast systems for

all ship types, and we have sold approx. 200 system units.

Despite the lack of the convention, we meet interest from

several companies, says Casper Andersen, who, however, is

not expecting any sudden boom in demand.

- Carriers are working with other planning horizons, and

rules come into force at different time for new ships and for

already operating ships.

Setting up a standard

- I think that in case of ratifi cation in 2012, we can expect a peek

between 2016 and 2018, as the forecast looks now, he says,

pointing out that companies work with different models of

when they think it is the right time to put themselves in position.

- We are at the technology side setting up a sort of standard,

and the UV-based system, which we market, is considered

to be a safe, reliable and chemical-free solution being rela-

tively easy to install and integrate. It’s probably the platform

of the market, he thinks.

- Carriers as such have the issue on their agenda. It’s no sur-

prise to anyone that the requirements are coming, but it’s

probably different when you as a customer think that you

will enter.

- Meanwhile, we see an increased demand. Many com-

panies place themselves in position and try to under-

stand what the possibilities are and what kind of tech-

nology standard is under way. So there is increased

activity on the ballast water-side, Casper Andersen says.

- We have established a leadership position through

the technology that we market and develop. We already

have reached a version 2.0, which consumes less energy.

Furthermore, we believe that it is important for companies

that we do not use chemicals. There is a major environmen-

tal focus in the shipping industry, so if you solve one prob-

lem by creating another, you achieve nothing, he says.

Pioneer

- Denmark is a major shipping nation and also a pioneer in

the environmental fi eld and as a third dimension, one thinks

more of water as a competence area, so it is a clear potential

for Danish companies, he says, adding:

- There are many on offer also internationally but our condi-

tions are good, and it is also one reason why Alfa-Laval as a

Swedish / Danish Øresund business can play a signifi cant

role. Opportunities are good, but we have to get the Conven-

tion ratifi ed, says Casper Andersen.

By Finn Bruun

Alfa-Laval:

Setting new standards for ballast water treatmentAlfa Laval is already developing its next generation of ballast water systems

and expects increased activity in this fi eld even though the IMO ballast wa-

ter convention has not yet been ratifi ed. Today Alfa Laval has sold around

200 units for different types of ships.

Casper Andersen, Alfa-Laval


Testing new concept: Making ballast water treatment cheaper

One of the new system designs that has created interest, is

the Bawat solution - so much interest, that the Danish Mari-

time Fund chose to reward the designer Jan Hummer with a

prize of 2011 in Copenhagen in November, presented by the

minister in charge of maritime affairs – Danish minister for

business and growth, Ole Sohn.

Jan Hummer describes the system as being unique and ex-

plains that it is an “in-tank” treatment concept - contrary to

“in-line” systems.

Ballast water is re-circulated over the ballast tank, inert gas-

ses are dosed into a circulation system where “intank” rotary

jet heads secures a fast stripping of oxygen from the ballast

water. The system has 2-5 rotary jet heads installed in each

ballast water tank.

Smaller and cheaper

BAWAT A/S has received support from the Danish Maritime

Fund to conduct a test of this technology being different from

existing systems on the market. The project will be imple-

mented at Alfa Laval and DHI in Denmark and the intention

is that the pilot project will demonstrate “proof of concept”

and provide a basis for patenting the system.

The proposed system is based on known and existing com-

ponents, and Jan Hummer expects that it will be smaller than

known systems.

Easy installation

- And it will be much cheaper than existing systems, if it works,

Jan Hummer explains.

Among the advantages mentioned are: No disruption of nor-

mal procedures and low cost of installation and operation

with low space requirement for retrofi tting combined with cor-

rosion protection, sludge control. The system is scalable.

By Finn Bruun

Testing new concept:

Making ballast water treatment cheaperSo far no easy short cuts to cleaning ships’ ballast water have been devel-

oped. The systems are quite costly and bulky. Only few of them have yet

been long time tested. A new Danish design is on test.

M.Sc. Jan Hummer, Bawat is a specialist in tank cleaning and is recognized for his work to create a simple solution for cleaning

ballast water.


It works: Continued strong Danish focus on combating piracy

- Our efforts are actually effective, Commander Thomas Stig

Rasmussen, from the Danish Navy concluded, when he at a

conference on piracy in Copenhagen commented on the criti-

cism that Danish naval vessels participating in the interna-

tional anti-piracy efforts off the coast of Africa in several cases

have had to release captured pirates.

Recently, the Danish warship “Absalon” released a group of

pirates, who had been captured at sea. They were released

after being disarmed and held in a so called “catch and re-

lease” operation.

The problem is that it is hard to prosecute them without fi rm

evidence that they were actually engaged in criminal activities.

- Normally we take their weapons, their equipment and their

boat, and put them out of the game for 10-20 days. It has an

effect. More pirates are caught and there are fewer successful

hijackings, he said.

The international naval forces in the Gulf of Aden today put so

much pressure on the pirates that the number of successful

pirate attacks this year has been declining.

A matter of minutes

Thomas Stig Rasmussen explained that in assisting the cargo

ships the navy has priority on rapid response by helicopter

and Special Forces in fast boats. It is often a matter of min-

utes, from the moment the alarm sounds from a cargo ship

Continued strong Danish focus on combating piracyThe piracy problem is increasing and at a conference on piracy in late No-

vember in Copenhagen it was stated that the strong Danish response cannot

stand alone. More international muscle is required, and the job is to create

attention to the size of the problem. The Danish ministry of Foreign Affairs

as well as the shipping industry is working full speed in this matter and the

Danish navy is very active off Africa’s Horn.

IT WORKS

The Royal Danish Navy has for some time been engaged in

operations off Africa’s Horn as part of the international anti

piracy efforts. The commitment continues.


under attack to the whole thing is decided. - Either in the form

of a hijacking or the escape or capture of the pirates.

The signifi cance of minutes was illustrated when the shipping

company Clipper’s CEO, Per Gullestrup at the conference played

a dramatic audio recording of communications between the

Clipper vessel CEC Future’s captain and coalition naval force.

“We are under attack,” the captain announced over the radio.

He was instructed to perform evasive maneuvers and speed-

ing up: “We can be there in fi ve minutes”, the naval radio op-

erator urged.

Unfortunately, this was time enough for the pirates to win. In

the audio recording you hear the captain loudly reporting of

shots at the ship with “bazooka” and then: “The pirates are

on board.”

This was in 2008 and caused 72 days in captivity for the

crew before the release was negotiated and ransom money

dropped from the air to the pirates.

Per Gullestrup told about the comprehensive crisis manage-

ment and how the hijacking dramatically changed the com-

pany’s policy within the piracy area. Today Clipper employs a

dedicated “piracy manager” and the company has decided to

use armed guards on all its vessels when passing through the

pirate waters.

- And we comply with the IMO Best Management Practice 4,

Per Gulllestrup said.

Commander Thomas Stig Rasmussen saw no problems in

shipping companies’ use of armed guards in the exposed ar-

eas.

- We do not consider this a competition. We have an effi cient

cooperation with them.

Deputy Director of Danish Shipowners’ Association, Jan Fritz

Hansen, stressed at the conference that the fl eet plays an

indispensable role even if the companies are making use of

armed guards. He expected these guards to be a standard

procedure and announced that the shipowners will soon re-

lease some sort of industry-standard or guide for qualifi ed

use of armed guards onboard.

- This will protect our ships but not solve the problem, he said.

Strong Danish diplomacy

The Danish ministry of Foreign Affairs makes great efforts in all

relevant international forums to get the piracy problem on the

agenda to initiate action, and Katrine Joensen from the minis-

try’s security policy section informed that the new Danish gov-

ernment will continue the strong Danish anti-piracy efforts.

- It has high priority, she said, mentioning that many people

are involved both in the ministry in Copenhagen and in the

UN, EU, NATO and bilaterally with other countries. The minis-

try also has a strong commitment in the legal fi eld in relation

to Somali pirates.

- Denmark can’t solve the problems alone, she said, and

underlined that in the long run the pirate problem must

be solved ashore. Jan Fritz Hansen pointed out that Den-

mark, despite its large merchant fl eet is a small coun-

try. It requires international cooperation to combat pi-

racy, he stated and pointed out that whereas the piracy

issue gets much attention in Denmark, the question is of-

ten completely absent in the debate in most other states.

He is pushing for the EU to play a more active role and an-

nounced a series of measures including activities in connec-

tion with the Danish EU presidency.

- Our biggest challenge is to get some broader shoulders to

bear. Denmark is a great seafaring nation but a small country.

We need to have strong friends in this case, he said.

The conference was organized by the Danish Society for Naval

Architecture and Marine Engineering.

By Finn Bruun

- Our biggest challenge is to get some broader shoulders to bear. Denmark is a great seafaring nation but a small country.

It works: Continued strong Danish focus on combating piracy 13Daily news on www.danishmaritimemagazine.dk

Niels Smedegaard’s turn around: Success for DFDS where others are depressed

- When I started in DFDS in 2007 one of my tasks was to

create a new strategy and try to sharpen the organization

a bit and get us to earn some more money. So it was pret-

ty clear, what I had to do, DFDS’ Niels Smedegaard states.

- After a few months, we announced a strategy, where we

indicated that we wanted to take part in the consolidation

that we expected would take place in our segment: Short

sea shipping from Russia in the north to Spain in the south.

- It was obvious that if we were to be a leading player, we had

to become more effi cient.

Only then you have a fair right to buy other compa-

nies. You must have something to offer that makes things

a little better. Therefore we initiated a strong improve-

ment work in 2007-08 in the form of a “go forward plan”

focusing particularly on the turnaround on one of our

main areas: Passenger activity which had then faced 5-7

years of fl uctuating fi nancial results after the stop of on-

board duty-free sales and emerging new low cost airlines.

- At that time, analysts said: Why don’t you sell it or close it

down?

- But we felt there was more we could do especial-

ly on the cost side, so we started a project where

we as the fi rst thing contacted all the unions saying:

This is the situation. Now we must work together try-

ing to improve it. We will be interviewing all your mem-

bers, and we will make a plan, Niels Smedegaard tells.

- The conclusion came in mid 2008 when we made changes

in management and reduced staff in the passenger section

by 20 percent and closed down one of our routes.

Today we see the results: The passenger section is

now one of the fi elds in the new organization with the

best return on invested capital. Our Copenhagen-Oslo



If there is one thing, in which DFDS’ CEO

Niels Smedegaard excels, it is to bring

change and get hard decisions not only ac-

cepted but actually make them create posi-

tive momentum. His effort is to generate

an overall motivation, which ploughs new

mind furrows and makes money - as well as

a rather unique position to expand activi-

ties despite the crisis. A keyword is to stick

tightly to the strategy - and to communicate.


Niels Smedegaard’s turn around: Success for DFDS where others are depressed

route had one of the ships appointed Denmark’s sec-

ond best workplace by the trade union 3F. It shows that

despite the tough but necessary decisions it is pos-

sible to reverse the situation in terms of motivation.

We now have a fantastic staff which is motivated and we have

great momentum on these routes - in spite of higher oil pric-

es and recession, where for instance hotels and restaurants

have problems. We know how to hold on to our customers

and expand our business: We have Denmark’s largest hotel

with 1600-1800 beds crossing between Copenhagen and

Oslo each day, he says.

- This turn around model was the start for how to handle

things in the company and showed the way to our next proj-

ect, “Lightship,” which focused on the rest of our organiza-

tion, on ships and on land operation. We subsequently have

transferred this to other parts of the organization.

• VESSEL PROTECTION TEAMS

• CREW TRAINING

• SECURITY CONSULTANCY AND

ADVISORS

• VESSEL SECURITY SERVICE

AS SolutionMarielundvej 46 E, stDK-2730 Herlev, Danmark Phone: + 45 35 25 10 10e-mail: [email protected]: www.assolution.com

2007 CEO DFDS Group2004-2006 Executive Vice President, Gate Gourmet Global Sales Solutions 2000-2006 President & CEO, e-gatematrix, Atlanta, USA (a subsidiary of the Gate Gourmet Group) 1995-2000 Executive Vice President & CFO, Gate Gourmet Group, Zurich, Switzerland 1994-1995 Vice President, Head of Strategic Controlling, Swissair Associated Com-panies, Zurich, Switzerland 1993-1994 Finance manager, SAS Service Partner 1990-1993 Manager, Treasury, SAS Service Partner 1988-1990 Economist, SAS Finance 1988 Master of Business Administration, Copenha-gen Business School

Niels Smedegaard was born in 1962. He holds a M.Sc. in Business Admin-istration.


We were ready

- Then the fi nancial crises showed up in the late 2008 and

early 2009. But for us, this also meant the possibility of pur-

suing our consolidation plan.

- So when Norfolk Line went on sale, we were ready - strategi-

cally as well as in effi ciency performance. While everyone else

reefed sails, we went out offensively. In fact, we prefer things

to look a little dark and tough when buying up rather than act-

ing when everybody says “buy now, buy now”.

- In this period of uncertainty we met good support from our

shareholders and after hard and intense negotiations with

the seller, A.P. Møller-Mærsk, we reached a solution where

they got half of the payment in equities and half in cash.

- After that we could incorporate this company amounting to

60-70 percent of our own size. It was a great acquisition. Prob-

ably the biggest in Denmark in 2009, and while we were await-

ing regulatory approval, we started to prepare for integra-

tion. So when the whole deal was closed in July 2010, we were

immediately ready to fi nd the synergies we believed existed.

Because of the long planning, we could launch our script –

containing new organizational structure, new management

and new branding. And we knew, which routes were to be

merged or maybe closed down.

- All this made 2011 an extremely important year for

us. Now we were to show that the synergies actually were

there and that we responded to what we had started up..

The organization has worked hard and concentrated, and

we can now - even before the end of this year – conclude

that our integration is successful. Only the IT systems

scheduled to be fi nished in 2012 remain. All other areas have

fallen into in place - we have solved the problems in Ireland

by selling a couple of routes and closing down two others.

And we have merged terminals in Rotterdam and routes in the

area, Niels Smedegaard informs.

Higher turnover

Altogether, we have trimmed the portfolio of activities in

which we were not the best owner. We have, for example, de-

posed of DFDS Canal Tours.

In this way, many things fell into place and we have just pub-

lished our third quarter results, maintaining our second quar-

ter upgrade expecting a pre-tax profi t of 700 million DKK,

which will be a record for us - despite a subdued market in

the second half of 2011, our turnover will reach nearly 12 bil-

lion DKK this year.

So, from the year 2007 up to now the turnover rose by 60 per

cent and our bottom line by 75 per cent despite the worst fi -

nancial crisis in 50 years. So we obviously are very pleased

with what we have achieved - and it’s very motivating for me

to see a workforce backing the strategy so well - and taking on

extra work as well as going in the same direction. They have

solved the problems with the highest marks.

- They are, themselves, proud of the results which sharpens

the appetite. Recently this has later been refl ected in the fact

that we are still in an expansion and consolidation situation

with the possible purchase of SeaFrance activities on the

Channel - still undecided - and the purchase in October of a

route between Sweden and Estonia, he says.

Looks good

DFDS is today both a shipping company and logistics company

forming two divisions with 7.5 billion DKK in turnover in ship-

ping and 4 to 4.5 billion in turnover in the logistics business.

- We do not experience as big fl uctuations as many other ship-

ping companies and we see ourselves more as a production/

service provider which supports our many customers with the

broadest possible integrated logistics network, says Niels Sme-

degaard mentioning another improvement project in DFDS:

- We were not satisfi ed with the earnings of the logistics com-

pany and set out at the start of 2011 to reverse the trend. And

this year we reached our goal and expect to make a turnaround

of more than 100 million DKK in the logistics business. So we

are quite satisfi ed, he says and points out:

- At the same time we have reduced our debt by 1.2 bil-

lion DKK compared to the same quarter the year before, so we

are extremely well consolidated with an equity ratio of over

50 per cent. We are thus in a good position if the world comes

into fl at growth or a new crisis. Financially we can exploit the

opportunities that may come. Things look quite well for us,

unlike some of our colleagues in the industry who are under

pressure because of the market conditions, he concludes.

- With the acquisition of Norfolk we have proved that our strat-

egy, organizational structure and ability to integrate new busi-

nesses is in place. Now we have “digested” the Norfolk Line

transaction and is both fi nancially and in management ready

for new opportunities if the right opening occurs, he says.

Foresight

Niels Smedegaard will not himself take credit for the foresight

characterizing the strategy from 2007, when he arrived to DFDS.

- I don’t know if it was foresight, but when the fi nancial crisis

came, the possibility of consolidation occurred faster than we

had expected. Shareholders backed up, and therefore we had

an early opportunity to test the strategy - and given that the

synergy that we originally calculated to 135 million DKK per

year, already has come out with 200 million, we have created

a track record with the board, the banks and the sharehold-

ers, creating confi dence in our ability to handle that kind

of opportunities and challenges – and support to continue.

Experience shows that far from all mergers are successful, but

Niels Smedegaard says:

- We›ve been pretty convinced that it was strategically the

right thing to do. We have prepared well and have had to

make tough decisions, but we believe that being consistent

and follow your strategy is the key word to be successful in

our fi eld – off course accompanied by a bit of luck and fair

wind. We have had that. All has been accomplished faster and

better than we had expected. But if you don’t try, you never

succeed, he underlines.

By Finn Bruun

Niels Smedegaard’s turn around: Success for DFDS where others are depressed16 Daily news on www.danishmaritimemagazine.dk

Tough motivation: The DFDS way to do it

Tough motivation:

The DFDS way to do itA basic principle when we integrated Norfolk Line and a great help to all my -

even closest - managers, was that to be successful, we needed the best man

or woman for the job. So my entire management team was evaluated, also

by external consultants, with whom I consulted, and on this basis I selected

the future management team, Niels Smedegaard says.

- Today management consists of old DFDS people and new ones

who have entered the organization via Norfolk Line. This ap-

plies, for example, to Eddie Green, who in Copenhagen heads

one of the divisions. At all management levels of the nine

groups in our divisions we have a mix of DFDS people and Nor-

folk people. This is called “The new DFDS”, Niels Smedegaard

states.

- An important reason for our success is that we›ve sought

out the best man or woman for the job regardless of his-

tory or passport. This has made us far more international in

DFDS and here at the headquarters’ in Copenhagen, the lan-

guage is English. We welcome various nationalities, which

also prepare us for future acquisitions. People can see that

you get a chance in the new company, no matter who you are.

Two important elements in Niels Smedegaard›s manage-

ment style exist both in acquisition context and in general:

- It›s about being open and honest from the start. And to clearly

announce: These are the principles for fi lling the vacancies.

- Naturally that created some uncertainty among the DFDS

employees who felt they had an advantage. But in the end

you get the best team through openness and honesty.

- The style is also infl uenced by my own career, in which pur-

chases and sales of companies sent me six years to Switzer-

land to the Swiss Air Group, where I got the chance and was

one of the fi rst foreigners in the head offi ce - because of what I

stood for. Not because of the passport. The same was true for

my six years in the U.S: What matter was - and still is - who

you are, what you deliver and how you enter into the team.

- This is just the natural way for me to it given my international

career - I›ve probably had more years away than in Denmark.

- A process of change always creates surprises and someone

will be disappointed, but it is eventually the only way to be a

winner in your industry: Take the best for the job regardless

of nationality or gender. My experience is that you get better

decisions through the diversity within the teams. You get new

angles on the solutions.

Tor Ficaria. Effi ciency and speed is the

goal for all DFDS’ operations.



The secret

Niels Smedegaard’s secret as a successful leader is perhaps

that he has no secrets.

- We are not the sexiest industry. It is about hard work

and it is about being as effi cient as possible, learn

from each other, benchmark against competitors and

other industries and constantly improve yourselves.

- When I joined the DFDS we were - without having to be-

little anyone’s efforts - probably too focused on ourselves

and our long history and the feeling that things went alright.

But if you want to drive change and be at the top of the in-

dustry, it requires something extraordinary of everyone.

But at the same time it creates a great motivation and sat-

isfaction when people almost every month or quarter can

see new fi gures indicating that so much has happened with

the company and that they have a stake in the success.

- It’s not just due to me that DFDS has evolved so much

- it’s all the employees and managers who have driven

this development. It is not something one man can do.

I can put things in motion and swing the baton and take

the front position, but my colleagues get it done - this prin-

ciple applies no matter if it’s shipping, logistics, airline in-

dustry or a manufacturing business. That is what it takes to

lead people successfully and make the company successful.

- It is evident, that when you can show people that hard work

and bold decisions bear fruit and produce results, you have the

best leadership example.

- Before the turnaround of our passenger business, the staff

felt that they to some extent were the “whipping boy” of the

company and never were really satisfi ed. But going through

a tough project – which no one other than I could knew well

enough to have faith in would turn out a success - and af-

terwards seeing the results and even be hailed for their ef-

forts, was motivating and triggered other parts of the or-

ganization to want to show that they could do likewise.

Precisely this has been one of the foundations of DFDS’s de-

velopment, which we have repeated in other areas - most re-

cently in our logistics company, in which we after analysis have

started a similar project with close follow-up on the tough prob-

lems – including having to say goodbye to some people. We are

changing processes and increasing effi ciency. This has created

excitement and a success in which the participants can bask

a little. It inspires because it has been obtained by courage and

hard work.

We cultivate this kind of examples and bring them out through-

out the company via news updates. We call it the “DFDS way”,

Niels Smedegaard says.

It never stops

- The philosophy is that change is the only constant. In all its

simplicity: if we all do things just a little bit better every day,

we unleash a great power, which is extremely diffi cult for com-

petitors to copy and which brings us an inch ahead of others.

It really works.

DFDS’ head Quarter in Copenhagen. The daily language is

English and all nationalities are welcomed as employees.



In all corners of the company managers and employees per-

form in the way, bringing the company forward so we can be in

the forefront of our industry, as we have been through the last

two or three years.

- We have developed a complete standard process for how to

organize ourselves when we change projects or create develop-

ment or integrate. There are steering committees, project man-

agers, work streams and weekly and monthly meetings - this

is the backbone of how we do it, measure it and follow up, and

how we continually meet the challenges, so things never drag

on.

- We involve people on the fl oor and in the expert fi elds. They

are the ones with solutions in our workshops and this is where

creativity is unleashed. We enable solutions and allow people to

try, and we listen to them. We do this all over the organization. It

motivates - and get people engaged. And it’s okay to fail. We can’t

make the perfect solution every time. We have to go for what is

80-85 per cent right and then get it in place and follow up later.

- Speed is of the essense - it’s incredibly important both when

you have to make changes and solve challenges. Rather than

having everything done perfectly and revised at four different

levels, and eventually signed by the boss, we push far more

infl uence and power out in the organization and decentralize

decision-making – but with our backbone structure intact, says

Niels Smedegaard, whose experience is that by listening and

involving more people facing the same problem you get more

creative and dynamic decisions that works better and faster.

- We follow up on things. Everything we do can be measured -

preferably in money - no matter what kind of situation we are

dealing with. This has developed a unique tracking and moni-

toring mechanism which keeps people focused. It is not just

talk but something that moves things. We keep people on the

track without killing creativity or creating negatively. People

must see and understand what we are doing.

- We are here to earn money for investment in the company,

enabling us to buy new ships, trailers or new companies - and

develop our company to create satisfaction and job security,

he states.

A lot to ask for

- I know I have asked people to work very hard for a long

time, but in spite of the large workload, there is an under-

standing that it’s more fun for people to help make deci-

sions about their own future instead of passively letting

others decide for you. The inner understanding within the

organization today - and the same with our fi nancial strength

and strategic direction - means that no matter what hap-

pens, we will be well positioned relative to competitors to

meet the future to come, Niels Smedegaard underlines.

- We have made ourselves prepared to exploit opportuni-

ties where others see threats. It has given great confi dence

in us, but it does not necessarily mean that it will be a suc-

cess next time. But anything we can control, we do try to con-

trol and thus we succeed in more cases than otherwise. We

must set clear goals, communicate them to people so they

understand them, involve people, delegate, monitor, con-

trol to some extent to create to a positive spiral, he says.

- For me it is important that employees know where to go and

are motivated to dare to change things, make decisions and

understand that we must continually go on and be more ef-

fective, says Niels Smedegaard, who does not spare himself.

Great plans

- An exciting job like mine requires many hours of work. That

goes with my good salary, so there are no complaints. At

home we are organized in the way that my wife works at

home taking care of the family - our three children and

myself. I probably owe a few at home. But it works, and

when I have time off, the family off course has the priority.

But in my job there has always been projects, crises, acquisi-

tions, and SeaFrance and so on. I keep saying that next year

will be better - but they are starting to ignore this. It won’t ever

change, and we have accepted this. We found a way that suits

us well, says Niels Smedegaard, who given his entrepreneurial

nature does not hide that DFDS has big plans and projects for

2012.

By Finn Bruun


He did not only set the stage for a political agreement on ship-

ping – the industry and other relevant maritime stakeholders

were invited to participate in the creation of the strategy.

The conference took place at Christiansborg, the build-

ing comprising the Danish parliament, and was organized

by the Danish Shipowners’ Association, the trade union

Dansk Metal and Danish Maritime representing mari-

time industries and was supported by the Danish Mari-

time Fund under the title “Growth in the Blue Denmark”.

The general idea of consensus about Danish shipping

was clearly refl ected by representatives from different

political parties, who had speakers at the conference.

Ole Sohn stressed that it is important to get growth:

- In this context, the Blue Denmark plays a crucial role, he said

and welcomed the go-do attitude from the industry practitio-

ners, who were present at the conference.

- While the shipping industry is currently characterized by

the crisis and experiencing somewhat low freight rates and

some excess capacity, Denmark fortunately stands incredibly

strong as a fl ag nation. We have sound shipping companies

and a diverse maritime cluster, which is strong and innova-

tive, and constitutes a unifying force with a global focus, the

Minister stressed, pointing out that competitive force and fo-

cus on innovation and cost is required to create more growth.

Stable framework conditions

- The latest analysis shows that there are still good trends for

the Blue Denmark. Therefore, we are launching the prepara-

Danish minister for shipping:

New strategy for Danish shipping to create growthDanish shipping has long been the subject of a political consensus which

has established stable framework conditions, and at a maritime growth con-

ference in Copenhagen, Minister for business and growth in the new Dan-

ish government, Ole Sohn, announced that a new strategy for growth in the

Danish maritime cluster, “the Blue Denmark” will be initiated.

Danish minister for shipping: New strategy for Danish shipping to create growth

Ole Sohn is the Danish Minister for business and growth and thereby also minister for shipping. He announces a new Danish

Maritime Strategy to create growth.


tion of a new maritime strategy, which focuses on growth

throughout the Blue Denmark both at sea and ashore with

the involvement of all stakeholders, Ole Sohn said identifying

four of the focus areas to be included in the strategy to create

growth and employment opportunity both ashore and at sea.

- Firstly, the Danish shipping industry must remain competi-

tive at the global level. It requires good stable framework

conditions, enabling us to continuously adapt to the global

situation.

- Danish shipping will continue to be characterized by high

quality. In addition, we are to stay the best in safety, health,

environment and climate and continue to work to make Dan-

ish shipping more green on the blue seas, he said, while he

highlighted the need for research and development, where ef-

forts to associate better with business are essential.

- Finally, the strategy should include a commitment

to maintain and develop maritime skills, he said and

stressed the importance of the seafarers’ conditions.

- The Maritime Denmark must stand together, he urged.

Ole Sohn’s support for the idea of consensus was brought

about by his new role as minister. Earlier this year, when he

was still an opposition politician, he told the Danish Maritime

Magazine:

- Shipping is a stronghold and a main growth engine. It is vital

that we maintain focus on further development. I believe it

is crucial for the shipping industry and generally in business

policy to have consensus. Changes should be adopted by a

wide majority, so that as well the Danish business community

as foreign investors can see a stabile common line in the par-

liament, he said then.

Well received

The establishing of a new maritime strategy has been well re-

ceived by both the Danish shipowners as well as the unions.

Chairman of the Danish Shipowners’ Association, CEO Lars

Vang Christensen says:

- We are extremely pleased that the Minister sees shipping

as a Danish stronghold that needs stable international frame-

work conditions to continue to compete globally and thus

make a signifi cant fi nancial contribution to the Danish econo-

my in a time where there is serious pressure on the economy.

The trade union 3F’s transportation group also wants stable

framework conditions. But not for Danish shipping only. The

Group fi nds the strategy plan positive: - Especially because

there is a wish to make a partnership that includes all stake-

holders, the group states.

By Finn Bruun

Danish minister for shipping: New strategy for Danish shipping to create growth

Lars Vang Christensen, CEO of herning shipping and chairman of Danish Shipowners’ Association is pleased that the minister sees

shipping as a Danish stronghold that needs stable fremwork conditions.


Danish ports also have a role to play

Europe has more than 1200 commercial ports, which handle

up to 90 per cent of EU’s external trade, and the ports handle

more than 850,000 port calls every year. These fi gures signal

the importance of the ports to the European economy.

-We see a world changed by the globalization. We expect car-

go to increase, and we expect a shift in demand. Demand for

high quality goods will increase in the emerging markets, and

the industrial production in Europe will change to service and

high added value products. So explains Dimitrios Theologitis,

Head of the unit “Ports & Inland Navigation”, the European

Mobility Network Directorate in the European Commission.

In this scenario much focus will be on the ports as an impor-

tant part of the Trans European Network.

The EU Commission has adopted a proposal to create a new

core network that will remove bottleneck and improve cross

border transport. The new core TEN-T network will be support-

ed by another comprehensive network that will feed into the

core network at regional and national level.

The core network will connect 83 European ports with rail and

road links. Among Danish ports only Copenhagen Malmö Port

and the Port of Aarhus are included in the core network. It

does not mean, however, that the rest are of no use. Dimitrios

Theologitis emphasizes that Europe needs all the ports.

Maritime cluster

-We don’t have favorite children; we need all the ports, be-

cause they have multiple functions at the local level, the na-

tional level, and the international level. Denmark has a large

number of smaller ports, but two ports are included in the

core network, so Denmark is well represented in the European

scheme. With the new port legislation that Denmark has pre-

pared, the ports can play a role at the local level, Dimitrios

Theologitis says adding that as one of the leading maritime

nations, Denmark has an active maritime cluster, which also

is an advantage for the ports.

-The ports are well served in terms of shipping by the mari-

time cluster. Also at the international level they are well po-

sitioned as regards import and export in and out of Danish

ports, he adds.

He admits, however, that it is a matter of discussion in Den-

mark how to prioritize in times with scarce funding.

Comprehensive network

Almost 20 Danish ports are included in the comprehensive

network, which include 340 ports that handle more than 2.4

million tonnes of bulk cargo per year.

-We need all ports in North, South, East, and West. We need

them all to have a solid system. Ports are the key for econom-

ic growth, when the economy grows, transport grows even

more, Dimitrios Theologitis says.

It is expected that the core network will be completed by 2030,

while the comprehensive network will be completed by 2050.

By Tina Altenburg

Danish ports also have a role to playThe EU Commission has adopted a proposal to transform the European

transport systems into a unifi ed transport network (the TEN-T). Although the

core network only encompasses two Danish ports, all Danish ports are im-

portant, says Dimitrios Theologitis, Head of the unit “Ports & Inland Naviga-

tion” in the European Commission.

In the spring of 2011, the European Commission passed ambi-

tious regulations to reduce the climate changing emissions from

the transport sector by 60 % in 2050. In June 2011, the Interna-

tional Maritime Organisation, IMO, passed the so called EEDI in-

dex which is to ensure that new built ships emit less CO2 in the fu-

ture. Both regulatory schemes make perfect sense because there

is a need to strengthen the effort for our climate and because

these regulations – seen from a Danish perspective – provide

good opportunities to create more green work places.

The EEDI index is not as far reaching as we had hoped, as it only

covers new built ships. As ships have long life spans – often up-

wards of 30 years or more – the prospect for the index to have any

signifi cant environmental impact is very long. If we are to actively

work for reducing the effect on the climate and environment,

straining emissions from ships, also in the short term, green so-

lutions for existing ships have to be found.

The existing fl eet is historically large. The average ship age is low.

Therefore, a substantial number of the ships sailing today will be

at sea for many years to come. Not only must these ships observe

the climate and environmental demands of present day, they

must also adhere to new requirements expected to come into

force in the years to come. It is a big challenge. The Blue Denmark

Exploit the green growth potential in The Blue Denmark


Exploit the green growth potential in The Blue Denmark

(the name used by the whole maritime cluster in Denmark) can

and will meet this challenge.

Denmark is one of the leading countries in the development of

green technologies. Danish maritime equipment is known for its

quality and in Denmark both the equipment producers and ship-

yards hold a leading climate and environmental position. The

whole the Blue Denmark works to constantly develop innovative,

green solutions which increase the sustainability of an already

environmentally and climate friendly type of transportation.

It makes good sense to transport goods by ship even over short

distances. Favouring trucks over ships for transport result in three

times as high CO2 emissions. When choosing plane over ship for

transporting one ton of goods, the emission of CO2 is upwards of

36 times higher. Hence, it makes perfect sense to transport goods

by sea in regards to the climate, the environment and the operat-

ing economy.

The Blue Denmark is a vital Danish strength with a considerable

potential for growth. But, if the industry is to take advantage of its

potential, it is essential that the climate goals are backed up polit-

ically with actions providing good, stable operating conditions for

the businesses in order that they may develop continuously bet-

ter climate and environmentally friendly solutions and technolo-

gies. We need for Danish politicians to ensure a good, fertile base

for research and innovation in order to give the businesses the

needed support in the public research environment. They need

availability of a qualifi ed workforce which puts high demands on

the Danish educational system. Also, Danish politicians have to

steadfastly push to ensure fast political decisions in the European

Union and other international organisations. Likewise, they are to

work for equal competitive conditions worldwide.

Lack of offi cial focus on the production industry in Denmark has

unfortunately led to an industry that does not have suffi ciently

competitive operating conditions. This must be changed before

it is too late. The maritime industry is still standing strong in the

international competition and is in the lead in the fi eld of green

solutions. This position of strength must be expanded upon. The

green growth potential in the Blue Denmark must be exploited to

its fullest state.

By Claus Jensen, Chairman of the maritime committee of CO-in-

dustri (The Central Organisation of Industrial Employees in Den-

mark) and Jenny N. Braat, Managing Director, Danish Maritime.


Turning the time 20 years back can solve EEDI problem within shipbuilding

The regulations for the Energy Effi ciency Design Index, which

were adopted by IMO’s Marine Environment Protection Com-

mittee (MEPC 62) on 15th July 2011 as a set of amendments to

MARPOL Annex VI, will apply for new ships built after the 1 Janu-

ary 2013. The EEDI legislation means that the CO2 emissions

have to be reduced by 30 per cent before 2025. The fi rst phase

of the EEDI legislation means a 10 per cent reduction in the pe-

riod 2015-2020, in the second phase from 2020 until 2025 the

emissions will have to be reduced by further 10 per cent, and the

last 10 per cent will have to be reduced in the period after 2025.

The EEDI legislation, which originally was a proposal prepared

by the Danish Maritime Authorities and the Danish Shipowners’

Association, is the fi rst of its kind , and it will probably force the

whole shipbuilding industry to rethink the way new ships are

built.

Slow steaming is often mentioned as a way out of the prob-

lems. Slow steaming does, however, result in new problems,

because a reduction of the service speed is causing new tech-

nical problems such as poor steering and need for a minimum

propulsion power in bad weather, especially for tankers and

bulk carriers with very blunt hull forms.

But slow steaming is not the only solution, explains Hans Otto

Kristensen, Senior Researcher, M.Sc., at the Technical Univer-

sity of Denmark.

-The EEDI has gradually increased during the last 20 years;

ship’s energy effi ciency has developed in the wrong direction

for the last 20 years. The block coeffi cient (displacement vol-

ume divided by length, breadth, and draught) has increased,

while the slenderness ratio (length divided by the cubic root

of the displacement volume) has decreased, he explains. As

a general rule of thumb, the block coeffi cient shall be as low

as possible whereas the length displacement ratio shall be

as high as possible to obtain the lowest propulsion power re-

quirement.

As of the 1 January 2013 the new Energy Effi ciency Design Index will enter

into force. It means that new ships will be forced to reduce the CO2 emis-

sions by 30 per cent, a new requirement that will gradually be introduced in

the period from 2015 until 2025. At least some of the problem can be solved

by turning the time back within shipbuilding.


Photo: Sculpture by Phil Billen



F R E D E R I K S H A V NPhone +45 96 20 47 18

Service and Repair at the Gate to the Baltic

www.maritime-network.dk

The Port of Frederikshavn has a long history of ship-building and maritime service; from dockyards that undertake the repair and maintenance of engines and propellers to electrical, hydraulic and metalwork work-shops and maritime training and education centres.

-The development has gone in the wrong direction because of

the period with economic prosperity. The ship owners have

tried to fi ll more and more cargo into the ships. The risk in pe-

riods with economic prosperity is that you build ships, which

are not good enough from a hydrodynamic, i.e. a propulsion

point of view.

Building ships with a lower block coeffi cient

The solution is according to Hans Otto Kristensen to turn

the development 20 years back and build ships with a low-

er block coefficient.

By prolonging a ship by five per cent the energy efficiency

can be improved by 10 per cent without slowing down the

service speed, he mentions.

-Another solution is to use derated engines, you can typi-

cally also improve the energy efficiency by 10 per cent by

using derated engines, Hans Otto Kristensen says. A derat-

ed engine is an engine running at a lower shaft speed and

a lower mean effective cylinder pressure compared to the

maximum cylinder pressure, such that the oil consumption

is reduced approximately 3 per cent compared to a normal

engine. Another advantage is that a derated engine can

operate continuously at its maximum power (100 per cent

MCR), such that the normal power reserve of typically 10

per cent is not needed when using a derated engine, be-

cause a normal engine typical operate at a continous power

of 85 – 90 per cent MCR.

-So the fi rst 10-20 per cent we already know today without

introducing new technical solutions, he says adding that the

engines and perhaps also the propellers will probably also be-

come more energy effi cient in the years to come.

-In the European research project ULYSSES we are also inves-

tigating different solutions such as using a ducted propeller,

which also can improve the energy effi ciency by 2-5 per cent.

Although a number of technical solutions exist, Hans Otto Kris-

tensen thinks the EEDI legislation will mean that the maritime

industry has to rethink the whole shipbuilding process starting

already at the design stage where the hull proportions are set-

tled and can be optimized for lowest possible EEDI. However, it

is possible to reduce the EEDI without slowing down the service

speed.

DTU (The Technical University of Denmark) and SDU(University

of Southern Denmark) are developing new computerized design

tools which can be used for optimization of the hull proportions

to obtain the lowest EEDI under given design constraints.

This work was originally sponsored by the Lauritzen Foundation

and is now sponsored by Den Danske Maritime Fond in an ex-

tended project which is expected to be fi nalized in 2012.

By Tina Altenburg


It is of course offshore Brazil, Australia and West Africa that of-

fer the sexiest energy stories of the moment. But harnessing the

reserves of these frontier regions will depend on developments

in Norway’s buoyant subsea sector where new technologies are

increasing recovery rates, extending fi eld lives and making viable

previously uneconomic satellite fi nds.

There are signifi cant implications for the offshore support and

service vessel sector in its broadest sense. Subsea technologies

are generating demand for a wide range of complex new vessels:

from ultra-sophisticated seismic vessels that research and map

data on geological formations under the seabed; to high-end

subsea construction vessels, usually with their own remotely

operated vehicles (ROV), which build the necessary underwater

infrastructure.

Then there is the latest generation of multipurpose anchor han-

dling tug supply (AHTS) vessels which can be mobilised and de-

mobilised for a variety of functions, and increasingly complex in-

spection, maintenance and repair (IMR) vessels, also with ROVs,

which provide ongoing support. And there are also, as yet, just a

few so-called light well intervention vessels designed to increase

oil recovery rates at existing fi elds at roughly half the day rates of

a rig deployed for the same purpose.

Norway’s ground-breaking subsea drive is focused on Bergen,

described as the country’s “subsea capital” where its subsea

business cluster – the Norwegian Centre of Expertise, Subsea

(NCE Subsea) – is headquartered. In and around Norway’s sec-

ond city, a host of designers, manufacturers, subsea engineering

fi rms, energy companies and suppliers of sophisticated subsea

equipment are spearheading these initiatives.

According to Trond Olsen, general manager of NCE Subsea, com-

panies cooperate where possible and compete if necessary. But

there are clearly common aims – including raising the typical

global average oil fi eld recovery rate from 25-30% to 40-50%

or more; moving into new and more diffi cult, deeper waters and

cold northern seas where further signifi cant oil and gas deposits

are likely to be found; and, of course, always ensuring maximum

safety standards which, according to experts, are at their most

robust in the North Sea.

These new technologies are already being put to good use. Indus-

try analyst Quest has estimated that as many as 475 new subsea

wells could be brought on stream in the North Sea over the fi ve

years to 2015, split roughly half and half between the Norwe-

gian and UK sectors. Capital investment is also expected to soar:

Oslo’s Rystad Energy, an independent energy consultancy, has

predicted that annual subsea spending on the Norwegian Con-

tinental Shelf could increase from Nkr 25 billion ($4.3 billion) in

2012 to Nkr 40 billion ($6.8 billion) by 2015.

Enhanced oil recovery is the name of the game. And the results

are already clear to see. Norwegian state energy company Statoil

is aiming for subsea recovery rates of 55%, up from a typical 30%

prior to the application of well intervention technologies. Recov-

ery rates at Norway’s Ekofi sk fi eld, for example, where produc-

tion commenced in 1971 and is expected to continue until at least

2050, have increased from an original 17% to an estimated 50%

today. Meanwhile, the Troll fi eld – which contains some 60% of

Norway’s gas reserves but also signifi cant volumes of oil – was

originally expected to peter out in 2015 but is now expected to

continue producing until at least 2030.

Norwegians pioneer new lease of life for North Sea fi elds

Norwegians pioneer new lease of life for North Sea fi eldsA wide range of metering and monitoring devices are supporting enhanced oil recovery technologies

Photo: Roxar/Emerson


Making the most of existing oil fi eld assets is only one of the pri-

orities. Tying in new outlying satellite reserves to existing subsea

infrastructure promises additional yield, even in so-called mature

regions like the North Sea. There are, however, signifi cant chal-

lenges regarding fl ow assurance over longer distances and in

deeper waters, and in monitoring oil fi eld assets, including the

subsea infrastructure, over long periods of time.

A key structure in the subsea framework is the so-called Christ-

mas tree, the primary function of which is to control the fl ow both

in and out of a well. As companies strive to enhance recovery

rates, the complexity of Christmas tree design and construction

is accelerating. In addition to fl ow control, they often provide the

means for chemical injection, well intervention, and gauges to

monitor pressure, temperature, sand and water content, and cor-

rosion and erosion rates. Multiphase meters, meanwhile, moni-

tor fl ow rates so that revenues can be appropriately assigned to

operating consortium members.

As the subsea drive gathers pace, not only in the North Sea but

also in other regions, particularly Brazil, demand for Christmas

trees is soaring. NCE Subsea’s Olsen expects a huge increase

in the number of Christmas Tree installations over the next few

years. In fact, he says, the supply of new trees is likely to be a

major constraint – even if all production were focused solely on

the Brazilian market, there would still be insuffi cient capacity to

meet demand.

Many of the North Sea’s 1,600 such structures, roughly two fi fths

of the world total, are of relatively simple design and require

modifi cation and upgrading to accommodate the latest monitor-

ing and metering devices. In addition to this ongoing upgrade

programme, the number of Christmas tree installations could well

double over the next four to fi ve years.

But the maintenance, modifi cation and continued operation of

existing trees, which are usually well-specifi c, will be essential.

“We can’t dispose of them. We need to re-use them,” comments

Olsen, adding that there is, in any case, a signifi cant cost associ-

ated with their disposal.

His comments are borne out by Arne B. Riple, Vice President of

Subsea Lifecycle Services at Aker Solutions which specialises in

the installation of new trees and the refurbishment and upgrad-

ing of existing units at its workshops in Bergen. Tree upgrades,

Riple explains, consists of “pulling”, dissembling, modifying,

re-engineering and fi tting them with the latest new components.

Some are not that old – even fi ve-year-old trees are sometimes

pulled so that well fl ow can be more accurately metered and op-

timised. Tree upgrades can typically take a year and cost 80% of

the cost of a new tree.

The dramatic build-up in Bergen’s subsea cluster over the last

fi ve years – from about 30 companies to more than 120, and

from a turnover of around $500m to more than $2bn – is a tell-

tale sign of the future path in offshore energy development. The

strides currently being made in Norway are directly applicable in

other regions, but in a maritime perspective, the complex subsea

technologies which will help to meet the planet’s hydrocarbon re-

quirements tomorow will require a growing fl eet of increasingly

sophisticated offshore craft.

By Paul Bartlett

The reason for this isn’t just the efficiency of

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Norwegians pioneer new lease of life for North Sea fi elds

Existing Christmas trees are being "pulled" and upgraded.

Demand for new ones will outstrip supply for years, say experts


DANISH MARITIMECLUSTER

Shipowers

Maritime Industriy &

offshore

Education, UniversitiesKnowlegde Institutions

R&D

Shipping companies / Shipbrokers

Finance, Insurance

Classifi cation

Interest Groups Associations

Network

Publich Sector Goverment

PortsPort related

companies and operators

Competence Development and improved Innovations within the Danish Maritime Cluster

Competence Development, Innovations, and Entrepreneurship

Maritime Development Center of Europe (MDCE) - the Danish Maritime Clus-

ter representative - is now responsible for a new maritime initiative, which

during the next three years together with 9 partners will launch activities en-

hancing future maritime competences and innovations.


The project “Danish Maritime Cluster” intends to increase

the supply of skilled labor among the maritime cluster

firms to retain and attract jobs and businesses. The ambi-

tion is to maintain Denmark’s position as a leading global

maritime industry cluster, despite the increased interna-

tional competition.

The project builds on a new collaboration between compa-

nies, authorities, business organizations, research-, sci-

entific- and educational institutions that jointly develop

and implement activities with the purpose to increase the

level of competencies within the cluster. Activities include

creation of new knowledge, as well as analysis of oppor-

tunities and challenges to enhance the maritime com-

petence. Moreover it concerns the development of new

maritime subjects and masters at the graduate level for

navigators, engineers, ship officers and others; skills for

business, including development of management courses

for professionals and increase the small and medium busi-

nesses’ use of academic labor.

The project is divided into six work packages:

WP1: Project Management, WP2: Communication: WP3:

Analysis, WP4: Development of Competences – at higher

education levels, WP5: Development of Competences –

Business, and WP6: Future Innovation and Growth in the

Maritime Cluster.

Further information about the project please contact proj-

ect manager Merete Vestergaard, phone: +45 3333 7488,

e-mail: [email protected]

Competence Development, Innovations, and Entrepreneurship

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Trade Event 2011

What do you need to become a success in shipping? Basically

all you need is a few ships, contacts and a good deal of en-

trepreneurship and acumen in business matters. On the 24th

of November, 75 Danish students aged 18-25 were given the

chance to test their skills in a game of shipping. The game and

the speeches given at this years’ “Trade Event”, were part of

The Blue Denmark’s effort to recruit shipping, bunker trading,

fi nance and broker trainees for the blue cluster.

The event was hosted by The Blue Denmark’s recruitment cam-

paign Worldcareers, and it was held at the Danish Shipowner’s

Association in Copenhagen. Attending the event was also 17

shipping, bunker, broker and fi nance trainees, representing a

wide array of companies within the cluster. Also attending was

VP of Handymax chartering of DS NORDEN Thomas Jarde, who

gave the guests an insight to the company’s shipping trainee

education.

The event marks the end of this year’s series of industry spe-

cifi c events, which started with the TECH Event in April, aimed

at students wishing to pursue a career as naval architect, SHIP

Event on the 18th November, welcoming young people looking

for a career at sea and fi nally the TRADE Event.

The events serve an important role in the Blue Denmark’s

continuous effort to secure a constant fl ow of competent ap-

plicants to the industry’s many educations, and they will also

be a part of the recruitment campaign in 2012.

Pictures from the events can be found on the campaign’s Face-

book page : facebook.com/worldcareers

Trade Event 2011

DANISH SPECIAL FORCES UNITED CONSULTING

EAGLE SHARK

Telefon: 31 65 60 34 / 40 20 00 46E-mail: [email protected]

www.eagleshark.dk

Eagle Shark udfører maritime sikkerhedsopgaver med

præcision og erfaring fra de danske specialstyrker

Jægerkorpset og Frømandskorpset.

• Individuelle løsninger

• Rådgivning og risikovurdering

• Skibsspecifi k risikovurdering

• Bevæbnede vagter og/eller supervisorer

• Gidselhåndtering

• Løbende opdatering af sikkerhedssituationen i

Adenbugten og Det Indiske Ocean


Dansk pavillon på Asiens største skibsmesse

DFDS.COM

INTEGRATEDNETWORK SOLUTIONS

Danish Maritime Magazine 06-2011

Documents

Transcript of Danish Maritime Magazine 06-2011