41367 JL News 11 [6].indd - J. Lauritzen
41367 JL News 11 [6].indd - J. Lauritzen
41367 JL News 11 [6].indd - J. Lauritzen
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OCEANS OF KNOW-HOW<br />
September 2009<br />
The climate-friendly<br />
lifeblood of the global<br />
economy<br />
Half-year results 2009 · The climate-friendly lifeblood of the global economy ·<br />
A smaller footprint · Seagoing lab helps vessels · Getting better all the time ·<br />
From black water to clean water · Jens Ditlev <strong>Lauritzen</strong> assumes chairmanship<br />
of the <strong>JL</strong>-Foundation · Capesize in a box · Dan Swift headed for Brazil · Making<br />
sense of uncertain markets · Hi-spec duo to J. <strong>Lauritzen</strong> Singapore · Industrial<br />
immersion internships · Make way for women · J. <strong>Lauritzen</strong> celebrates 125 years<br />
in shipping
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Editorial<br />
Half-year results 2009<br />
The climate-friendly lifeblood of the<br />
global economy<br />
A smaller footprint for big ships<br />
Seagoing lab helps vessels run better<br />
and cleaner<br />
Getting better all the time<br />
From black water to clean water<br />
Jens Ditlev <strong>Lauritzen</strong> assumes<br />
chairmanship of the <strong>JL</strong>-Foundation<br />
Capesize in a box<br />
Dan Swift headed for Brazil<br />
Steady as she goes<br />
Making sense of uncertain markets<br />
Hi-spec duo to J. <strong>Lauritzen</strong> Singapore<br />
Fleet Notes<br />
Trainees off to a strong start<br />
Industrial immersion internships at<br />
J. <strong>Lauritzen</strong> Singapore<br />
In memoriam: Niels Fisch-Thomsen<br />
Make way for women<br />
J. <strong>Lauritzen</strong> celebrates 125 years<br />
in shipping
Dear Reader,<br />
The global fi nancial crisis has severely affected shipping markets. Fortunately, <strong>JL</strong> has<br />
been able to adjust activities and strategies, and with the continuously dedicated support<br />
of our customers worldwide, <strong>JL</strong> was able to record a positive fi nancial result for the fi rst<br />
half-year of 2009. The result was limited compared to last year; however, it was acceptable<br />
in view of the fi nancial turmoil and the extremely diffi cult market conditions that<br />
prevail for seaborne trade.<br />
Recent indications of world economic improvements are certainly most encouraging,<br />
but the road to a full world economic recovery is likely to be long and bumpy. Whereas<br />
the global economy may still be in limbo, there is reason to believe that the worst is over.<br />
Emerging economies are performing strongly, but there is still a lot of uncertainty<br />
relating to the economic performance of the industrial world.<br />
In addition to the global economic uncertainty, the shipping industry is facing challenges<br />
in relation to tonnage supply. It is worth mentioning that less than expected<br />
tonnage was delivered both in 2008 and during the fi rst half of this year. However,<br />
regardless of cancellations, slippage and postponement of scheduled deliveries there<br />
is still a considerable risk of oversupply in most segments of the industry.<br />
Ahead of the UN Framework Convention on Climate Change (UNFCCC) in Copenhagen<br />
in December this year, I would like to dispel the myth that the shipping industry<br />
is dragging its feet on global warming. As can be seen from a special section on climate<br />
and environment in this edition of the magazine, shipping is by far the least environmentally<br />
damaging form of transport, but this does not mean that the industry is satisfi ed<br />
with things as they are. The industry and we at <strong>JL</strong> are fi rmly committed to play our part<br />
in reducing CO emissions, and I am pleased to report that a new generation of bulk<br />
2<br />
carriers in <strong>Lauritzen</strong> Bulkers’ fl eet have proven to be up to one-fourth more energy<br />
effi cient than the 10-15 year old vessels they replace. <strong>JL</strong> is also involved in a broad range<br />
of other activities with the aim of improving energy effi ciency and reducing emissions.<br />
In May, I resigned as Chairman of the Danish Shipowners’ Association after four<br />
interesting years in which Danish shipping confi rmed Denmark’s position as one of<br />
the world’s leading shipping nations. I will remain as a board member of the Danish<br />
Shipowners’ Association and of the European Community Shipowners’ Association,<br />
and I look forward to continuously promoting Danish as well as European shipping.<br />
Sincerely,<br />
Torben Janholt<br />
President & CEO<br />
CLEAN SAILING<br />
In April 2009, <strong>JL</strong> proudly celebrated<br />
its 125th anniversary in the midst<br />
of the most serious fi nancial and<br />
economic crisis for decades.<br />
During the fi rst 125 years of our<br />
existence <strong>JL</strong> has experienced many<br />
upturns and downturns, but we<br />
have been riding the waves and<br />
expect to ride this one as well.<br />
Torben Janholt,<br />
President and CEO<br />
Photo by Carsten Lundager<br />
3
4<br />
The result for the fi rst half-year of<br />
2009 was negatively impacted by<br />
the global fi nancial crisis and the<br />
world economic recession. The<br />
bulk carrier markets plummeted<br />
during the fi rst quarter of the<br />
year followed by the collapse of<br />
product tanker markets during<br />
the second quarter of 2009.<br />
Result before depreciation<br />
(EBITDA) amounted to USD 58.2m<br />
compared to USD 212.7m in the<br />
same period of 2008 (cf. table 1)<br />
and result before tax amounted<br />
to USD 5.8m (cf. table 2).<br />
Half-year<br />
result for<br />
2009<br />
It is noteworthy that <strong>Lauritzen</strong><br />
Bulkers, <strong>Lauritzen</strong> Kosan and<br />
<strong>Lauritzen</strong> Tankers all achieved<br />
results before tax that were<br />
better than expected. <strong>Lauritzen</strong><br />
Offshore Services is still in a<br />
build-up phase and results before<br />
tax were negatively affected by<br />
the weak product tanker market<br />
and thus lower than expected.<br />
Net result for the fi rst half-year<br />
was USD 1.5m compared to USD<br />
322.4m in the same period of 2008<br />
and USD 149.5m for the full year<br />
2008. The result was not satisfactory,<br />
but acceptable in view of the<br />
diffi cult market conditions.<br />
Table 1<br />
Main developments<br />
<strong>Lauritzen</strong> Offshore Services, which was<br />
established in late 2008 as an independent<br />
business entity, secured long-term<br />
employment for the converted shuttle<br />
tanker Dan Eagle to Petrobras, Brazil,<br />
from August 2009. Furthermore, two<br />
additional shuttle tanker newbuildings<br />
are under construction, scheduled for<br />
long-term employment with Petrobras<br />
upon delivery in 20<strong>11</strong>.<br />
The conversion of the Dan Swift into<br />
an advanced dynamically positioned<br />
accommodation and support vessel – the<br />
fi rst of its kind - went into the fi nal stage,<br />
with expected delivery at the end of the<br />
third quarter of 2009. The vessel has been<br />
Result before tax USDm<br />
1st half<br />
Full<br />
Year<br />
2009 2008 2008<br />
Actual Actual Actual<br />
Result before tax<br />
<strong>Lauritzen</strong> Bulkers 20.1 305.5 157.0<br />
<strong>Lauritzen</strong> Kosan 5.1 32.1 38.7<br />
<strong>Lauritzen</strong> Tankers 0.4 2.2 2.4<br />
<strong>Lauritzen</strong> Offshore Services (4.7) 0.1 (7.2)<br />
<strong>Lauritzen</strong> Reefers (6.0) 1.0 6.3<br />
<strong>Lauritzen</strong> Fleet Management (0.8) (3.6) (6.1)<br />
Other (8.3) (9.8) (31.8)<br />
Result before tax 5.8 327.6 159.3<br />
Tax and minorities (4.3) (5.1) (9.9)<br />
Net result 1.5 322.4 149.5
given its fi rst employment contract by<br />
StatoilHydro, commencing December<br />
2009, to support development of the<br />
new Peregrino fi eld in the Campos Basin<br />
off Brazil.<br />
<strong>Lauritzen</strong> Bulkers sold fi ve Handysize<br />
bulk carriers and one Panamax bulk<br />
carrier, and four time-chartered vessels<br />
were redelivered as part of the fl eet<br />
renewal and adjustment programme.<br />
Three additional time-chartered bulk<br />
carriers are expected to be redelivered<br />
during the second half of the year.<br />
<strong>Lauritzen</strong> Kosan took delivery (in May<br />
and July) of the two last innovative and<br />
environmentally friendly 8,000 cbm<br />
Key fi gures USDm<br />
Year to date<br />
Full<br />
Year<br />
2009 2008 2008<br />
Revenue 253.0 427.3 685.2<br />
EBITDA 58.2 212.7 158.9<br />
Depreciation (49.3) (19.0) (142.6)<br />
Sale of assets 3.3 103.0 153.8<br />
Operating income 12.1 296.7 170.1<br />
Associates (1.4) 27.1 27.3<br />
Finance net (5.0) 3.7 (38.0)<br />
Result before tax 5.8 327.6 159.3<br />
<strong>JL</strong>’s share of the result 1.5 322.4 149.5<br />
Invested capital (average) 1,304.5 1,214.9 1,155.9<br />
ROIC 1.7% 53.3% 17.1%<br />
ROIC (excl prepayments) 3.5% 101.9% 34.1%<br />
Investments, net <strong>11</strong>9.2 141.3 283.6<br />
Invested capital (period end) 1,383.9 1,343.0 1,225.1<br />
- hereof prepayments 713.7 663.4 668.5<br />
Fleet (full year average) 138 135 135<br />
- hereof pool/partner share 40 42 42<br />
Average no. of employees 754 630 662<br />
Table 2<br />
ethylene gas carriers, completing the series<br />
of seven owned vessels from Sekwang<br />
Heavy Industries, Korea. Further, one<br />
sister vessel has been delivered to the<br />
<strong>Lauritzen</strong> Kosan fl eet by partners, with<br />
two additional vessels to follow, bringing<br />
the series to a total of ten identical vessels.<br />
Invested capital<br />
Invested capital increased by USD 159m<br />
(USD 256m in 2008) to USD 1,384m at<br />
the end of June 2009 (USD 1,343m in<br />
2008), cf. fi gure 1.<br />
Average invested capital was USD<br />
1,305m, of which USD 446m related<br />
to <strong>Lauritzen</strong> Bulkers, USD 439m to<br />
<strong>Lauritzen</strong> Kosan, USD 126m to<br />
<strong>Lauritzen</strong> Tankers, and USD 294m to<br />
<strong>Lauritzen</strong> Offshore Services.<br />
Average invested capital for the year is<br />
expected to be USD 1,471m compared<br />
with USD 1,156m in 2008.<br />
Outlook<br />
Although international seaborne trade<br />
is anticipated to fare better during the<br />
second half of the year, market conditions<br />
are expected to remain subdued due to<br />
the signifi cant number of vessels – in<br />
particular bulk carriers and product<br />
tankers – scheduled for delivery. Net<br />
result for the full year 2009 is expected<br />
to be USD 30 to 35m.<br />
Invested capital (period end) USDm<br />
1400<br />
1200<br />
1000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
LB LK LT LO <strong>JL</strong><br />
2008 2009<br />
5
6<br />
CLEAN SAILING<br />
The climate-friendly lifeblood<br />
of the global economy<br />
While trade liberalization is a major<br />
prerequisite for global trade, it is indeed<br />
international shipping that has made<br />
globalisation possible.<br />
“Around 90 percent of world trade is carried<br />
by ships and for the vast majority of<br />
this trade there is little or no alternative<br />
to maritime transport. This demonstrates<br />
the critical importance of the shipping<br />
industry to world trade, and international<br />
shipping is probably the single most<br />
important vehicle for globalisation,”<br />
according to Jens Søndergaard, senior<br />
vice president, J. <strong>Lauritzen</strong> A/S.<br />
It is to a great extent because of inexpensive<br />
and effi cient maritime transport that<br />
the benefi ts of the international division<br />
of labour is constantly enhanced, and global<br />
economic growth and prosperity are to<br />
a large extent due to ever more maritime<br />
transport. The key benefi t of maritime<br />
transport is the linking of resource-rich<br />
regions (Americas, Australia and Africa)<br />
with resource-poor regions (Asia and Europe)<br />
enabling intercontinental exchange<br />
of raw materials and manufactured goods.<br />
“Economies of scale in ship and port<br />
operations, bigger ships and not least<br />
continuous improvements in technology<br />
and effi ciency have made the costs of<br />
moving goods at sea insignifi cant in relation<br />
to the price of a product paid by the<br />
end-consumer,” says Jens Søndergaard.<br />
CO 2 g/ton/kilometre<br />
Shipping and world trade<br />
Even though the current economic recession<br />
has led to a decline in world trade and<br />
thereby requirements for seaborne transport,<br />
shipping maintains its position as<br />
most important carrier of world trade; and<br />
as the world economy recovers, seaborne<br />
trade is likely to resume growth.<br />
Despite diffi culties in quantifying the<br />
value of world seaborne trade in monetary<br />
terms, the United Nations Conference<br />
on Trade and Development (UNCTAD)<br />
estimates that the contribution from the<br />
operation of merchant ships in terms of<br />
freight revenues is equivalent to about fi ve<br />
percent of world trade, and J. <strong>Lauritzen</strong><br />
estimates that the contribution amounts<br />
to 1.5-2.0 percent of global economic<br />
value added.<br />
Shipping and the environment<br />
Shipping is the least environmentally<br />
damaging form of transport, and the<br />
shipping industry is a relatively small<br />
contributor to the total volume of CO 2<br />
emissions compared to other modes of<br />
transportation in terms of CO 2 emissions<br />
per tonne of cargo transported one<br />
kilometre, cf. fi gure 1.<br />
At the outset, shipping is a very fuel effi -<br />
cient way of moving goods, but signifi cant<br />
improvements in engine effi ciency and<br />
hull design, and the use of ships with<br />
larger carrying capacity are leading to<br />
Figure 1. Comparison of CO 2 emissions by different transport modes<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
540<br />
Boeing<br />
747-700<br />
175<br />
Ford<br />
Mondeo<br />
1,8 P<br />
Heavy<br />
truck<br />
Source: European Shipowners’ Association and International Chamber of Shipping<br />
50<br />
8 3<br />
6,600 TEU<br />
Container<br />
ship<br />
Panamax<br />
Bulk<br />
carrier<br />
Figure 2. Global CO 2 emissions<br />
Source: IMO<br />
Share of global CO 2 emissions<br />
73% 27%<br />
Transport Other<br />
Share of global CO 2 emissions<br />
97% 3%<br />
International shipping<br />
Other<br />
considerable reductions of emissions per<br />
transported unit and thus further improving<br />
fuel effi ciency. As can be seen else-<br />
where in this edition of <strong>Lauritzen</strong> <strong>News</strong><br />
(page 8), new fi gures from <strong>Lauritzen</strong><br />
Bulkers indicate a signifi cant increase in<br />
fuel effi ciency relating to a new generation<br />
of bulk carriers in <strong>Lauritzen</strong> Bulkers’<br />
fl eet of already very young vessels.<br />
Shipping is thus by far the most climateeffi<br />
cient form of commercial transport,<br />
but taking the enormous scale of the<br />
industry into consideration, the shipping<br />
industry is nevertheless a considerable<br />
contributor to the world’s total CO 2<br />
emission in absolute terms.
According to the International Maritime<br />
Organisation (IMO), a specialised agency<br />
of the United Nations, marine bunker<br />
fuel consumption and CO 2 emissions<br />
from the global shipping industry’s 55,000<br />
merchant ships are estimated to amount<br />
to 2.7 percent of global CO 2 emissions;<br />
this is, however, equivalent only to 1/10th<br />
of global emissions from all transport<br />
activities worldwide, estimated to a total<br />
of 27 percent of global CO 2 emissions,<br />
cf. fi gure 2.<br />
“The IMO estimates confi rm that international<br />
shipping remains a very climate<br />
friendly mode of transport. This is<br />
remarkable because most news media<br />
tend to portray the shipping industry as a<br />
very climate unfriendly mode of transport.<br />
From a specifi cally Danish perspective, it<br />
should be noted that CO 2 emissions from<br />
the operations of the Danish shipping<br />
industry might appear considerable when<br />
compared to total CO 2 emissions of a small<br />
country with only 5.5 million inhabitants<br />
and essentially no heavy industry. These<br />
emissions should, however, be seen in the<br />
light of the massive transport work performed<br />
by Danish shipping estimated to<br />
amount about 10% of world seaborne<br />
trade,” says Jens Søndergaard.<br />
Reducing maritime CO 2 emissions<br />
Although the carbon footprint of international<br />
shipping remains modest in<br />
relative terms, the IMO and the shipping<br />
industry are fi rmly committed to playing<br />
its part in reducing emissions of carbon<br />
dioxide and green house gasses.<br />
“Comprehensive international regulation<br />
already controls the industry, and the<br />
IMO recently implemented standards<br />
for lowering limits on certain harmful<br />
emissions of sulphur and nitrous oxides,<br />
which confi rms the IMO’s ratifi cation<br />
and enforcement ability in politically<br />
complex matters,” says Jens Søndergaard.<br />
In December 2009, the post-Kyoto<br />
climate regime will be developed further<br />
in Copenhagen under the banner of the<br />
UN Framework Convention on Climate<br />
Change (UNFCCC). It is very much<br />
hoped that an agreement will be achieved<br />
in Copenhagen stating that measures for<br />
shipping should be directed by the IMO.<br />
“Shipping is a global industry and thus<br />
global standards applicable to all vessels<br />
irrespective of fl ag are paramount for the<br />
industry. What is needed from the international<br />
community is to agree upon<br />
CLEAN SAILING<br />
worldwide measures for the shipping<br />
industry that will provide real reductions<br />
in the consumption of fossil fuels, while<br />
having a minimal impact on global trade,”<br />
says Jens Søndergaard.<br />
Shipowners, shipbuilders and the classifi -<br />
cation societies are all actively examining<br />
numerous ways to reduce CO2 emissions<br />
for new as well as existing vessels (see<br />
the following articles in this edition of<br />
<strong>Lauritzen</strong> <strong>News</strong>), which are primarily<br />
linked to reduction of fuel consumption.<br />
Initiatives also include the IMO suggestion<br />
to introduce an energy-effi ciency index<br />
for new ships and the Danish government<br />
proposal to introduce a contribution from<br />
bunker fuel with the aim of raising funds to<br />
develop new energy effi cient technologies.<br />
In the long-term perspective the shipping<br />
industry is also exploring the use of alternative<br />
fuels. For the foreseeable future,<br />
however, merchant ships will continue to<br />
burn fossil fuels and the most signifi cant<br />
means of reducing CO2 emissions will<br />
most likely be achieved by further fuel<br />
effi ciency improvements across the entire<br />
transport chain.<br />
7
8<br />
CLEAN SAILING<br />
A new spin on<br />
effi ciency<br />
A Japanese company has developed a<br />
small auxiliary propeller called PBCF,<br />
which stands for Propeller Boss Cap<br />
Fins. Mounted on a ship’s standard<br />
propeller, the PBCF redirects water<br />
fl ow to achieve a three to fi ve percent<br />
reduction in fuel consumption at the<br />
same speed – or to boost speed by one<br />
to two percent with the same fuel<br />
consumption. “Bulk carriers have used<br />
standard designs for years,” says Claus<br />
Mygind, “so a device like the PBCF is<br />
a valuable addition. Using advanced<br />
hydrodynamic technology – but<br />
without radical ship redesign – it can<br />
give a signifi cant boost to our fuel<br />
effi ciency. We’re currently having the<br />
PBCF installed on four of our newbuildings<br />
from China, and we’ve also<br />
asked our pool partners to do the same<br />
on two additional vessels. Together<br />
with other seemingly small-scale<br />
changes – such as the hull coating<br />
mentioned in this article – initiatives<br />
like this can make quite a difference<br />
in our operational effi ciency.”<br />
<strong>Lauritzen</strong> Bulkers maintains a constant push<br />
for cleaner, greener, more effi cient operations.<br />
A smaller footprint<br />
for big ships<br />
Bulk carriers are regarded as the low-tech<br />
workhorses of the shipping industry, yet<br />
through consistent policy and a variety<br />
of new initiatives <strong>Lauritzen</strong> Bulkers is<br />
shaping a fl eet that is one of the bulker<br />
segment’s most environmentally<br />
progressive. “Contrary to the common<br />
perception of the shipping industry,<br />
numerous initiatives are being taken by<br />
ship-owners with the aim of reducing the<br />
environmental impact of our operations.<br />
It is defi nitely our policy to look for<br />
environmentally sound solutions,” says<br />
Claus Mygind, vice president and head of<br />
operations for <strong>Lauritzen</strong> Bulkers. “Bulk<br />
shipping is solidly based on price, and<br />
initiatives that lower our cost of transport<br />
and benefi t the company and the<br />
environment.” He points out that in the<br />
past year <strong>Lauritzen</strong> Bulkers has sold six<br />
ships built in the 1990s in order to focus<br />
the fl eet on newer, more effi cient vessels.<br />
The oldest owned ship in the <strong>Lauritzen</strong><br />
Bulkers fl eet today, the Tilda Bulker was<br />
built 2003. This is certainly a forwardlooking<br />
policy in a business where the<br />
typical vessel lifetime is 25-30 years.<br />
The benefi t is clear, as a comparison of<br />
ship performance between those that<br />
were sold and newer vessels with 2003<br />
and 2007 build dates shows that the<br />
newer vessels burn considerably less fuel<br />
per ton of cargo transported – between<br />
16 percent and 26 percent less depending<br />
on oil quality, trading patterns and other<br />
variables. “As it stands now, we’re basing<br />
these numbers on rough calculations<br />
of fuel consumed,” says Poul Martin<br />
Kondrup, marine technical manager for<br />
<strong>Lauritzen</strong> Bulkers. “This gives us a clear<br />
indication of positive results, but the new
Lab-On-A-Ship project being tested<br />
on two of our vessels will give us much<br />
more precise measurements of engine<br />
performance and environmental impact<br />
(see accompanying article, p. 10). We’re<br />
the only bulker fl eet currently testing this<br />
kind of capability.”<br />
You might say that <strong>Lauritzen</strong> Bulkers<br />
has a head start in the race to minimise<br />
fuel consumption and environmental<br />
impact, as the size and fl exibility of its<br />
fl eet ensures fewer ballast days for its<br />
vessels. “Basically, we move more cargo<br />
with less fuel - and consequently with less<br />
Co 2 emission - than many bulk shippers<br />
because our fl eet allows us to run an effi -<br />
cient operation,” says Bernardino Lladoc,<br />
superintendent. “We almost always have<br />
a ship close to the port where it’s needed,<br />
so we virtually never make long voyages<br />
carrying ballast instead of cargo.”<br />
Additionally, <strong>Lauritzen</strong> Bulkers is engaged<br />
in a range of initiatives aimed at making<br />
the daily operation of its vessels as effi cient<br />
and environmentally friendly as possible.<br />
They include the following:<br />
Advanced hull coating<br />
It is common to use antifouling coatings<br />
on the bottoms of ships’ hulls. Unlike<br />
many other owners, <strong>Lauritzen</strong> Bulkers<br />
uses new environmentally friendly coatings<br />
on the sides of the hull – up to the normal<br />
draft line – as well. This produces better<br />
speed performance and lower fuel consumption<br />
and, therefore, less pollution.<br />
It also increases coating costs by around<br />
30 percent, but this is more than compensated<br />
for by increased fuel effi ciency.<br />
Low-dust grabs<br />
Poul Martin Kondrup helped design<br />
improved grabs a few years ago in<br />
response to new standards to limit dust<br />
pollution in Norwegian ports. He<br />
modifi ed the physical design of the<br />
scoops on grabs to keep dust inside,<br />
which provides a much better working<br />
environment for ships’ crews and<br />
terminal workers, not to mention a<br />
generally improved port environment.<br />
The concept has been so successful<br />
that other shipowners have requested<br />
this “<strong>Lauritzen</strong> design” when ordering<br />
from grabs manufacturers.<br />
Improved hold cleaning<br />
There is more to pollution than CO 2 .<br />
Cargo hold cleaning is an area that in the<br />
past has posed an environmental threat,<br />
as many ships holds were cleaned with<br />
acids, which were bad for the crew and<br />
were washed back out into the sea.<br />
<strong>Lauritzen</strong> Bulkers now uses environmentally<br />
friendly biodegradable cleaning<br />
materials supplied by a Canadian company.<br />
These are more expensive, but – in theory<br />
at least – safe enough to drink, so they<br />
contribute to a much better environment<br />
onboard ships and in surrounding oceans.<br />
Additionally, <strong>Lauritzen</strong> Bulkers is about<br />
to begin testing a newly designed container<br />
system, which already holds a CLASS<br />
certifi cation, that can clean wash water<br />
used in cargo holds. Essentially, it can<br />
separate cargo residue – coal, cement or<br />
clinker, for example – from water. The<br />
fi ltered water is clean enough to be pumped<br />
into harbours and the remaining<br />
cargo solids can be sold or disposed of<br />
onshore. This system will initially be<br />
used in the Rotterdam/Amsterdam area<br />
where <strong>Lauritzen</strong> Bulkers discharges<br />
many of its vessels. “The Baltic area has<br />
particularly strict discharge regulations,”<br />
says Poul Martin Kondrup. “Ordinarily,<br />
vessels have to discharge cargo, leave<br />
port, wash down and entirely exit the<br />
Baltic before fl ushing wash water into the<br />
sea. With this container, the fi ltered wash<br />
water is clean enough to put into the<br />
harbour. This is a signifi cant benefi t to<br />
the environment and to shipowners, as it<br />
immediately frees up to 250 tons of cargo<br />
capacity that might otherwise have been<br />
wasted in transporting cleaning water.”<br />
Innovative lube systems<br />
All newbuildings ordered by <strong>Lauritzen</strong><br />
Bulkers have advanced engine lubrication<br />
systems that help reduce pollution by<br />
decreasing the amount of lubricants used.<br />
On older engines lubrication systems are<br />
manually adjusted by engineers. The new<br />
“alpha” system features a precise electronically<br />
controlled automatic feed, which<br />
lubricates engine parts just as effectively<br />
while using up to 40 percent less lubricant.<br />
Effi ciency is further enhanced by modern<br />
cylinder design.<br />
Achieving early compliance<br />
“We have always had a policy of adapting<br />
early to new environmental initiatives,<br />
often long before regulations offi cially<br />
come into effect,” says Bernardino Lladoc.<br />
“Two past examples are our rapid compliance<br />
and early certifi cation in the areas of<br />
air pollution and antifouling paint.<br />
CLEAN SAILING<br />
Others areas we’re working on include<br />
new ballast water treatment regulations<br />
that don’t come into effect until 2014 -<br />
we’re complying now. We’re also<br />
voluntarily working toward gaining<br />
International Maritime Organisation<br />
(IMO) Green Passport certifi cation for all<br />
vessels in our fl eet.” The Green Passport<br />
is a document that accompanies a ship<br />
throughout its working life. It contains<br />
an inventory of all materials potentially<br />
hazardous to human health or the<br />
environment used by a ship during its<br />
lifetime, from construction to recycling.<br />
Working with the weather<br />
For the past two years the entire<br />
<strong>Lauritzen</strong> Bulkers fl eet has used the<br />
services of Weathernews Inc. (WNI) to<br />
help plot voyages more effi ciently. Daily<br />
weather reports from WNI give sailing<br />
recommendations for optimal weather<br />
routing. This helps masters navigate to<br />
avoid storms and results in signifi cant<br />
fuel savings. WNI’s computerised<br />
programme also helps document vessel<br />
performance and fuel consumption.<br />
Nordic Bulker and<br />
Laura Bulker receive<br />
Green Flag award<br />
The US Port of Long Beach, California,<br />
has a 20-year record of environmental<br />
protection programmes. As part<br />
of its Green Port Policy, the port urges<br />
vessels to travel at or below 12 knots<br />
within 20 miles (32 kilometres) of the<br />
coast. Ships traveling at slower speeds<br />
reduce emissions. Those that comply<br />
earn a Green Flag Environmental<br />
Achievement Award. Two <strong>Lauritzen</strong><br />
Bulkers vessels, the Nordic Bulker and<br />
the Laura Bulker, achieved 100 percent<br />
compliance in 2008. They are now<br />
proudly fl ying the Green Flag and are<br />
also eligible for a 15 percent reduction<br />
in dockage fees.<br />
Photo by Ulla Munch-Petersen<br />
9
10<br />
CLEAN SAILING<br />
Lab On A Ship tested for “proof of<br />
concept” on two <strong>Lauritzen</strong> Bulkers vessels.<br />
Seagoing lab helps vessels<br />
run better and cleaner<br />
It is about the size of a standard refrigerator,<br />
although it has also been likened to<br />
an ice-cream machine. It is designed to<br />
sit unobtrusively onboard ships, automatically<br />
analysing fuel and lubricants,<br />
transmitting data and generating reports.<br />
And it is on the verge of making a big<br />
difference in bunkering, engine maintenance<br />
and engine performance. Two of<br />
these systems – called Lab On A Ship<br />
(LOAS) – are being tested now on<br />
<strong>Lauritzen</strong> Bulkers vessels, the Sofi e Bulker<br />
and the Amine Bulker. “I think it’s fair<br />
to say these systems are a signifi cant<br />
breakthrough. They’ll help make vessels<br />
more reliable and effi cient for owners and<br />
customers and also help ensure compliance<br />
with environmental standards,” says<br />
Poul Martin Kondrup, marine technical<br />
manager for <strong>Lauritzen</strong> Bulkers. “LOAS<br />
can measure and analyse as accurately as<br />
any land-based lab, and it operates<br />
automatically, with virtually no interference<br />
from the crew.” The system is<br />
programmed to perform tasks – such as<br />
adding an appointment into Outlook ®<br />
– on a regular schedule with a 45-minute<br />
cycle time. It provides information to the<br />
vessel control room, but also communicates<br />
effi ciently with an onshore server<br />
and automatically generates customised<br />
reports and e-mails them to recipients<br />
such as technical or fl eet managers.<br />
LOAS promises to dramatically streamline<br />
the bunkering process. Standard<br />
procedure today for ships taking on fuel<br />
includes a delay of three or four days –<br />
sometimes longer – until results from an<br />
onshore lab can confi rm the composition<br />
and quality of the oil. LOAS is capable<br />
of analysing the fuel during bunkering<br />
and providing results within 30 minutes.<br />
Which means vessels will have the<br />
immediate option of not taking on fuel<br />
that does not meet quality standards,<br />
thus avoiding loss of time and money<br />
and perhaps being stuck with a load of<br />
oil that can neither be used nor readily<br />
disposed of.<br />
Tracking engine performance<br />
LOAS also tests the main engine oil just<br />
before it goes into combustion chamber<br />
and constantly measures and analyses<br />
engine lubrication oil. “This gives us the<br />
ability to repeatedly track and observe<br />
specifi c trends in engine performance,”<br />
says Poul Martin Kondrup. “Essentially,<br />
the LOAS system brings modern process<br />
management to ship propulsion systems.<br />
This has big implications for engine<br />
performance and maintenance since it
has the potential to eliminate guesswork.”<br />
Instead of roughly estimating maintenance<br />
intervals based on past experience,<br />
LOAS allows specifi c tracking of trends<br />
that provide better indications of time<br />
for maintenance. Over time, for example,<br />
the system will show changes such as<br />
increased water content in the lubrication<br />
oil, which could indicate coolant system<br />
leakage. Ultimately the system could lead<br />
to substantial cost savings and help cut<br />
pollution by reducing excessive burning<br />
of oil mixed in with fuel. The main benefi<br />
t is the ability to improve scheduling<br />
for engine maintenance and overhauling,<br />
which affects everything from engine<br />
performance and effi ciency to spare parts<br />
stocking. Such information tracked over<br />
time might also allow ship owners to<br />
work with engine manufacturers to refi ne<br />
and maximise engine operation.<br />
Additionally, LOAS can be used to<br />
manually measure and analyse hydraulic<br />
oil – for example, from hydraulics<br />
systems on hatches and cranes – to allow<br />
early detection of potential mechanical<br />
problems. During 2009 the system will<br />
also be extended to include automatic<br />
measurement of cat fi nes (small metal<br />
particles) in heavy fuel. A second analysis<br />
unit, a gas analyzer that has the capability<br />
to measure NO X , SO X , CO, CO 2 and<br />
O 2 , will also be added to the vessels.<br />
“Then we’ll have a complete system to<br />
measure oil in and gas out, which will<br />
give a very good picture of how effi ciently<br />
the engine is burning oil,” says Poul Martin<br />
Kondrup. “The system also provides<br />
absolute proof that you’re in compliance<br />
with the required sulphur content of<br />
fuel. Once the exhaust gas measurement<br />
component has been tested and approved,<br />
we’ll also be able to provide proof of<br />
emissions compliance. LOAS has passed<br />
an accredited ASTM correlation test<br />
and has a pending approval from Lloyd’s<br />
Register EMEA for oil analysis. In fact,<br />
Lloyd’s Register EMEA has been an<br />
important project partner in analysing<br />
data and in the education of the engineers<br />
and superintendents who work with the<br />
LOAS system and interpret data. The<br />
professional cooperation between vendor,<br />
classifi cation society and owner has been<br />
essential for the outcome of the project.”<br />
Worldwide market potential<br />
LOAS was developed by NanoNord A/S<br />
– an Aalborg, Denmark-based company<br />
founded by entrepreneur Ole Jensen –<br />
and is largely funded by Vesterhavet A/S,<br />
the holding company for J. <strong>Lauritzen</strong>.<br />
“Vesterhavet originally invested in<br />
NanoNord’s nano-technology work,<br />
but about three years ago Ole Jensen<br />
and I decided to look for a shippingrelated<br />
project that would generate<br />
more immediate revenue,” says Bent<br />
Østergaard, president of Vesterhavet A/S.<br />
“We hit upon the idea of bunker analysis<br />
and oil analysis. We currently have fi ve<br />
systems on ships – including the two<br />
<strong>Lauritzen</strong> Bulkers vessels – being tested<br />
for proof of concept. So that’s pretty<br />
fast work, although we’re still fi ne-tuning<br />
the equipment. The goal is to have the<br />
fi ve current systems running with all<br />
components, including cat fi nes analysis,<br />
by the end of this year.” Bent Østergaard<br />
further points out that LOAS is a fl exible,<br />
scalable concept. Less expensive, more<br />
targeted systems that, for example, measure<br />
only cat fi nes or sulphur could easily<br />
be produced.<br />
“We see a large potential market in<br />
Denmark and worldwide,” says Ultan<br />
O’Raghallaigh, NanoNord’s director of<br />
business development and sales. “The<br />
test trials underway by our fi rst four<br />
customers, including <strong>Lauritzen</strong> Bulkers<br />
CLEAN SAILING<br />
have the potential to lead to fl eet installations<br />
on more than 100 vessels over the<br />
next three years. Worldwide, in roughly<br />
the same time frame we see a pool of<br />
approximately 7,000 newbuildings that<br />
are in the size range to be customers for<br />
LOAS. We’ve already introduced the<br />
system to 45 leading shipping companies<br />
in Asia, North America, the Middle<br />
East and Europe. These companies were<br />
encouraged by the initial Lloyd’s approval.<br />
They all expressed intense interest and<br />
are awaiting the proof-of-concept results<br />
from our fi ve current installations.”<br />
“This gives us the ability to constantly track<br />
and observe specifi c trends in engine performance.<br />
Essentially, the LOAS system brings<br />
modern process management to ship propulsion<br />
systems. This has big implications for engine<br />
performance and maintenance since it has the<br />
potential to eliminate guesswork.”<br />
Poul Martin Kondrup<br />
Marine Technical Manager, <strong>Lauritzen</strong> Bulkers<br />
Ole Jensen, Director, NanoNord A/S,<br />
(on left) and Poul Martin Kondrup,<br />
<strong>Lauritzen</strong> Bulkers’ technical manager,<br />
with the LOAS system.<br />
<strong>11</strong>
12<br />
CLEAN SAILING<br />
Photo by Hans Søndergaard<br />
Getting better all the time<br />
Software developed by Danish Technical University senior researcher<br />
and adjunct professor Hans Otto Holmegaard Kristensen – and funded<br />
in part by the <strong>JL</strong>-Foundation (<strong>JL</strong>-Fondet) – opens the door to more<br />
effi cient ship design.<br />
The software is complex – it’s been under<br />
development, off and on, for nearly a<br />
decade – but some very simple numbers<br />
get to the heart of the story. “Each ton of<br />
fuel burned by a ship at sea creates about<br />
three tons of CO 2 , and each ton of fuel<br />
saved reduces emissions by the same<br />
amount,” says Hans Otto Holmegaard<br />
Kristensen. So it is not surprising that<br />
ship energy use has been increasingly<br />
scrutinised. The need became clear for<br />
analytical tools to calculate ship energy<br />
consumption and exhaust emissions.<br />
Enter Professor Holmegaard Kristensen’s<br />
software, which is designed to do just<br />
that for bulk carriers, tankers, Ro-Ro<br />
cargo ships, container vessels and<br />
passenger vessels. The project is now at<br />
an intermediate stage, with a beta version<br />
of the software already available for container<br />
vessels and Ro-Ro cargo ships.<br />
Reducing emissions<br />
The system is designed so that when<br />
cargo capacity is entered for a given type<br />
of vessel, the software uses an extensive<br />
range of statistical data to calculate a set<br />
of representative main data for the<br />
particular ship. The programme has to<br />
be written specifi cally for different cargo<br />
and vessel types, because cargo has a<br />
huge infl uence on ship design. Containers,<br />
for example, often must be delivered<br />
relatively quickly, and container ships<br />
therefore need slender hull forms for<br />
higher speeds, compared with slower, less<br />
streamlined bulk carriers. Ro-Ro ships<br />
and passenger vessels are even higher up<br />
the hierarchy in terms of speed and<br />
narrow, streamlined hulls. Different hull<br />
shapes and different speeds all demand<br />
different mathematical models. By<br />
examining and calculating a wide variety<br />
of variables, the software allows fi ne-tuning<br />
of vessels at the design stage to see<br />
how even small adjustments to ship design<br />
can affect propulsion power requirements<br />
and total energy consumption.<br />
“Regardless of ship type, the goal is the<br />
same,” says Hans Otto Holmegaard
Kristensen. “That is to redesign ships of<br />
the future to be more fuel effi cient and to<br />
reduce emissions. As an example, imagine<br />
a container ship 250 metres long. If we<br />
increase the length by just 5% we would<br />
also increase effi ciency by approximately<br />
5% because the hull will be more streamlined.<br />
When speed is unchanged, a longer<br />
hull produces less water resistance. Of<br />
course, many other variables also have<br />
to be considered. And remember that a<br />
lengthened hull is more expensive, so in<br />
the days of low fuel prices hull length was<br />
kept down. But today and in the future<br />
because of generally higher prices and<br />
environmental regulations, the emissions<br />
reduction can more than compensate for<br />
increased build costs.”<br />
Meeting standards<br />
It will also be possible to use the software<br />
to determine the impact on the so-called<br />
Energy Effi ciency Design Index (EEDI)<br />
which the IMO – with strong Danish<br />
input headed up by the Danish Maritime<br />
Authority – is working to have implemented<br />
for new vessels to make them<br />
more energy effi cient. Additionally,<br />
emission data can be entered into the<br />
programme for the intended propulsion<br />
machinery and associated exhaust gas<br />
cleaning technology such as scrubbing<br />
technology for reduction of SO X emissions.<br />
The software will also use data<br />
gained from the Green Ship of the<br />
Future project to calculate the volume<br />
of exhaust emissions - CO 2 , NO X , SO X<br />
and particulates.<br />
According to Professor Holmegaard<br />
Kristensen, the programme will probably<br />
be released at the end of this year, and<br />
could be put to use immediately to help<br />
shipowners meet IMO requirements. And<br />
to help shipowners and ship consultants<br />
work with shipyards to prove the benefi ts<br />
of new approaches to ship design for the<br />
fl eets of the future.<br />
“Regardless of ship type, the goal is the same.<br />
That is to redesign ships of the future to be<br />
more fuel effi cient and to reduce emissions.”<br />
Hans Otto Holmegaard Kristensen<br />
Senior Researcher, Danish Technical University<br />
The genesis of<br />
a good idea<br />
CLEAN SAILING<br />
Hans Otto Holmegaard Kristensen’s<br />
professional background seems tailormade<br />
for a developer of cutting-edge<br />
maritime software. Educated as a naval<br />
architect, he has worked as a consultant<br />
for numerous Danish shipping companies,<br />
including <strong>JL</strong>. Additionally, he has<br />
been employed at the model tank centre<br />
in Lyngby, Denmark (now FORCE<br />
Technology) researching ship propulsion<br />
and by the Danish Navy, where he<br />
contributed to the design of the so-called<br />
fl exible support ship Absalon. “This<br />
software combines my experience in both<br />
ship design and ship propulsion into one<br />
exercise,” he says. “The genesis of the<br />
actual programme occurred ten years ago<br />
when I worked for the Danish Shipowners’<br />
Association. Peter Bjerregaard, the<br />
Association’s director, asked me to try to<br />
calculate the effi ciency of different ship<br />
types. It was long before anyone else was<br />
doing this, so Peter was well ahead of<br />
the curve to be thinking in these terms.<br />
On one level or another, I’ve been<br />
occupied with the idea ever since. Taking<br />
a full-time position as a researcher at<br />
DTU a year ago has given me more time<br />
to focus on it and bring it to completion.”<br />
Photo by Hans Søndergaard<br />
13
14<br />
CLEAN SAILING<br />
From black water<br />
to clean water<br />
<strong>Lauritzen</strong> Kosan<br />
newbuildings fi tted<br />
with next-generation<br />
biological sewage<br />
treatment plants.<br />
Readers of <strong>Lauritzen</strong> <strong>News</strong> will be<br />
familiar with the series of 10 advanced<br />
ethylene carriers contracted by <strong>Lauritzen</strong><br />
Kosan at Sekwang Heavy Industries in<br />
South Korea. Seven have been delivered<br />
to <strong>Lauritzen</strong> Kosan, one has gone to <strong>Lauritzen</strong><br />
Kosan’s partner Allocean and the<br />
fi nal two will go to LGR Navigazione.<br />
All ten vessels are commercially managed<br />
by <strong>Lauritzen</strong> Kosan. These vessels incorporate<br />
many environmental innovations,<br />
and are the fi rst gas carriers designed to<br />
comply with the International Maritime<br />
Organisation’s (IMO) Green Passport<br />
concept and the CLEANSHIP class<br />
notation for pollution prevention. All the<br />
ships are also equipped with new IMOapproved<br />
biological sewage treatment systems<br />
that provide early compliance with<br />
new IMO guidelines – effective January<br />
2010 – on black water treatment.<br />
“These bioreactor systems are enclosed<br />
units that use bacteria to clean waste<br />
water,” says Nicolas Grantzan, <strong>Lauritzen</strong><br />
Kosan superintendent. “Black water from<br />
toilets and grey water from sinks and<br />
showers are piped into the units, which<br />
process the water and pump clean water<br />
into a holding tank, which discharges<br />
automatically when it’s full.” In fact, the<br />
entire process is automatic and requires<br />
virtually no crew involvement. The bio-<br />
reactor units can handle waste water from<br />
up to 30 people; typical <strong>Lauritzen</strong> Kosan<br />
crew size is about 15.<br />
Well-tested solution<br />
Rolf Andersen, compliance manager for<br />
<strong>Lauritzen</strong> Kosan, explains that the units<br />
put <strong>Lauritzen</strong> Kosan well in the forefront<br />
of maritime sewage treatment. “Under<br />
current regulations it’s still permissible<br />
to ‘commute’ waste water by separating<br />
solids and treating the water with<br />
chemicals, then discharging it three miles<br />
from shore – or to carry raw sewage in a<br />
holding tank and pump it out 12 miles<br />
from shore. The water created by our bioreactors<br />
is considered by the IMO clean<br />
enough to be discharged at any distance<br />
from shore. The systems also help us<br />
meet our ISO 14000 goals.”<br />
This sewage treatment system is well tested,<br />
as more than 250 have been installed<br />
onboard ships. According to the manufacturer,<br />
Gertsen & Olufsen, the system<br />
exceeds any known or expected future<br />
environmental demands in any waters.<br />
“It is our ambition to provide all our<br />
new-buildings with systems like these<br />
in the future,” says Peter Justesen, vicepresident<br />
and head of Fleet Management<br />
for <strong>Lauritzen</strong> Kosan. “They are very<br />
environmentally friendly, as no solids<br />
are released and no chemicals are used<br />
in treatment. For comparison, you could<br />
say that the clean water produced by the<br />
eight ships we’ve already equipped with<br />
bioreactors is the environmental equivalent<br />
of providing a sewage treatment plant<br />
for a small village.”<br />
“For comparison, you could say that the clean<br />
water produced by the eight ships we’ve<br />
already equipped with bioreactors is the<br />
environmental equivalent of providing a<br />
sewage treatment plant for a small village.”<br />
Peter Justesen<br />
Vice President and Head of Fleet Management, <strong>Lauritzen</strong> Kosan
Jens Ditlev <strong>Lauritzen</strong><br />
assumes chairmanship<br />
of the <strong>JL</strong>-Foundation<br />
After a career of more than 30 years at<br />
all levels of J. <strong>Lauritzen</strong> and the past <strong>11</strong><br />
as president of <strong>Lauritzen</strong> Bulkers, Jens<br />
Ditlev <strong>Lauritzen</strong> has stepped up to take<br />
over as chairman of the <strong>JL</strong>-Foundation<br />
(<strong>JL</strong>–Fondet). Asked for a view of what<br />
the move holds for him, he says that<br />
“of course it’s a big change and a big challenge.<br />
Especially considering the fact that<br />
I’ll be the fi rst <strong>Lauritzen</strong> family member<br />
at the head of the Foundation since<br />
1978, when shipowner Knud <strong>Lauritzen</strong><br />
passed away. On a personal level, I’ll be<br />
very aware of the feeling that past family<br />
members – right back to the founder –<br />
are looking over my shoulder, so to speak,<br />
and maybe asking, ‘what are you up to<br />
now’. From a business point of view this<br />
position will demand much more of a<br />
strategic ‘helicopter view’ – I’ll be thinking<br />
from the perspective of the entire<br />
<strong>Lauritzen</strong> Group now, not just of one<br />
company within the Group. Since 1978,<br />
the position of chairman has been held<br />
by people from outside the top <strong>Lauritzen</strong><br />
management ranks, who haven’t had the<br />
background to be as actively involved as<br />
I anticipate I will be. Since <strong>JL</strong> has been<br />
my only business focus for more than<br />
three decades, there’s not much in the<br />
company that I don’t have a feel for.<br />
I hope it will be an advantage for the<br />
Group that I have this background.<br />
An active role<br />
“The Foundation is not only 100 percent<br />
owner of <strong>JL</strong> and the majority shareholder<br />
in DFDS, but is also a partner on a venture<br />
investment basis in ten other smaller<br />
companies that range from software to<br />
building materials businesses. Direct<br />
oversight of these ventures is the responsibility<br />
of Bent Østergaard, who is president<br />
of Vesterhavet (<strong>JL</strong>’s holding company).<br />
I’m here to discuss ideas and facilitate<br />
activities. It’s very early days for me, but<br />
I can say we’ll be looking for new opportunities.<br />
The Foundation’s charter states<br />
that we should work for the betterment of<br />
Danish entrepreneurs, and I want to play<br />
an active role in doing so. I would say the<br />
same for the charitable side of the Foundation’s<br />
activities, where Inge Grønvold is<br />
manager. I will be actively involved there,<br />
too, visiting and speaking with the charities<br />
we support. Overall – given a little<br />
time – my ambition is to streamline and<br />
increase the profi le of the entire <strong>JL</strong>-Foundation.<br />
I’ll look forward to reporting on<br />
that progress in future issues of <strong>Lauritzen</strong><br />
<strong>News</strong>.”<br />
15
16<br />
CAPESIZE<br />
IN A BOX<br />
Photo taken from the upper deck looking forward.<br />
Erection of the cargo hold bulkhead.<br />
A “mega-block” consists of multiple blocks assembled on ground<br />
level in the yard. A 1,600-ton crane will lower this mega-block<br />
into the dry dock for erection and welding.<br />
The main engine is lowered into place.
Erection of the 400-ton accommodation house.<br />
Engine casing ready to be positioned behind the completed<br />
accommodation house.<br />
As the photos here show, some of the world’s largest vessels<br />
are constructed, Lego-style, from pre-manufactured<br />
modules, or blocks. According to Curt Corneliussen,<br />
technical manager of bulk projects, this has been common<br />
procedure for decades. Hyundai Heavy Industries in South<br />
Korea – where this <strong>Lauritzen</strong> Bulkers Capesize, the Caecilie<br />
Bulker, is being built – is one of the world’s most sophisticated<br />
shipyards, with the ability to manufacture much bigger<br />
blocks than many other yards. Each section lowered into<br />
place is fully coated and nearly completed with all pipes,<br />
cables, pumps, machinery, etc. and ready to be connected to<br />
adjoining blocks. The entire process goes very quickly. Work<br />
on steel cutting and block production began in September<br />
last year. The keel laying, or placement of the fi rst block in<br />
dry dock, was accomplished in February. The ship was<br />
launched out of dry dock at the end of May and out on sea<br />
trial at the end of June.<br />
Work in progress.<br />
Proud site manager Jan Sjulstok on the starboard bridge wing of<br />
Hull No. 2122, soon to be the Caecilie Bulker.<br />
17
18<br />
The new <strong>Lauritzen</strong> Offshore Services<br />
accommodation and support vessel will<br />
assist StatoilHydro with development<br />
of the Peregrino oil fi eld.<br />
Dan Swift<br />
headed for Brazil<br />
“In particular, the vessel’s two fl exible<br />
gangways give it an unmatched capability<br />
to connect safely to the platforms in DP mode<br />
in varying wind and current conditions.”<br />
Michael Kristensen<br />
Vice President, <strong>Lauritzen</strong> Offshore Services, Singapore
Work is nearing completion on the<br />
conversion of the Dan Swift to serve as<br />
a dynamically positioned (DP) Accommodation<br />
and Support vessel for the<br />
crews and equipment needed to work on<br />
fi xed or fl oating offshore structures.* In<br />
December 2009 the vessel is scheduled<br />
to begin a seven-month contract,<br />
including options for up to four onemonth<br />
extensions, to assist StatoilHydro,<br />
the well-known Norway-based oil and<br />
gas company, in the Peregrino oil fi eld in<br />
Brazil’s Campos Basin. The Dan Swift<br />
will provide accommodation and service<br />
facilities for hook-up and commissioning<br />
of two well-head platforms (WHPs).<br />
Maersk is to provide the project’s FPSO<br />
(fl oating production, storage and offl oading)<br />
vessel.<br />
Spot-on for the job<br />
During the project, StatoilHydro will<br />
have about 230 workers, engineers and<br />
supervisors onboard to work on the wellheads<br />
and prepare for oil production. Additionally,<br />
J. <strong>Lauritzen</strong> will supply a crew<br />
of about 60, ranging from offi cers for DP<br />
navigation and IT specialists to caterers –<br />
even a fi tness instructor – to meet all the<br />
needs of StatoilHydro. Three helicopter<br />
fl ights daily will ferry personnel back<br />
and forth from the mainland to the Dan<br />
Swift, a journey of about 100 kilometres.<br />
“The Dan Swift was considered spot-on<br />
for this contract for many reasons,” says<br />
Michael Kristensen, vice president of<br />
<strong>Lauritzen</strong> Offshore Services in Singapore,<br />
“not least of which is its ability to move<br />
between the two WHPs, which are about<br />
ten kilometres apart. In particular, the<br />
vessel’s two fl exible gangways give it an<br />
unmatched capability to connect safely to<br />
the platforms in DP mode in varying<br />
wind and current conditions. ‘Safely’ is<br />
the key word here. As part of the total<br />
conversion – you might almost say<br />
‘newbuilding’ – process, we were able to<br />
do model testing of the Dan Swift at the<br />
Marin Institute in Holland. The tests<br />
were based on prevailing weather statistics<br />
for the Campos Basin, so we have great<br />
confi dence in the vessel’s ability to<br />
perform safely as the fi rst of its kind<br />
in the world. The safety issue is also<br />
tremendously important to StatoilHydro,<br />
which is known for setting extremely<br />
high HSE (Health, Safety and Environment)<br />
standards – even more so as the<br />
Dan Swift will also serve as an evacuation<br />
and rescue vessel for the workers in case<br />
the WHPs need to be evacuated.”<br />
Head-start in the market<br />
The Dan Swift won the contract with<br />
StatoilHydro in close competition<br />
against other experienced players in<br />
the market. In addition to advanced<br />
technical solutions and HSE compliance,<br />
J. <strong>Lauritzen</strong>’s experience in Brazil was also<br />
an important factor. “We have also signed<br />
a service contract covering shore support<br />
and local logistics to ensure timely<br />
execution of the project,” says Michael<br />
Kristensen. “Compliance with Brazilian<br />
law and requirements can be challenging<br />
in this business, but we’ve operated for<br />
many years in Brazil and could assure<br />
StatoilHydro of our ability to deal<br />
successfully with local stakeholders<br />
and authorities. We’re particularly happy<br />
to have been chosen for this contract,<br />
as StatoilHydro is both globalised and<br />
highly regarded in the industry – working<br />
with them gives us a head-start on future<br />
success in the accommodation and<br />
support market.”<br />
*For more information about the Dan<br />
Swift, please see <strong>Lauritzen</strong> <strong>News</strong> #9 or<br />
visit www.lauritzenoffshoreservices.com.<br />
Zero room for error<br />
Health, Safety and Environmental<br />
concerns – known as HSE – are front<br />
and centre for the oil and gas industry.<br />
Companies go to great lengths to<br />
eliminate adverse effects on the<br />
environment and to promote the health<br />
and safety of all individuals involved.<br />
StatoilHydro has earned a reputation as<br />
an industry leader within HSE. The<br />
company website sets forth the goal of<br />
operating “with zero harm to people,<br />
society and the environment in<br />
accordance with the principles for<br />
sustainable development. Our policies<br />
and requirements apply to all operations<br />
we control and to all staff and<br />
contractors involved in those operations.<br />
We expect our partners and<br />
suppliers to have standards consistent<br />
with ours.” <strong>Lauritzen</strong> Offshore Services<br />
has developed a mindset and described<br />
procedures and policies to meet the<br />
most stringent requirements of the<br />
industry. This was a top priority for<br />
StatoilHydro in considering <strong>Lauritzen</strong><br />
Offshore Services as a business partner.<br />
Because StatoilHydro places such<br />
strong emphasis on working with<br />
outside partners that can match its<br />
own high HSE standards, <strong>Lauritzen</strong><br />
Offshore Services is particularly<br />
pleased to have been chosen to play a<br />
key supporting role in StatoilHydro’s<br />
project to develop the Peregrino oil fi eld.<br />
19
20<br />
Steady as she goes<br />
When Jens<br />
Ditlev<br />
<strong>Lauritzen</strong><br />
became<br />
the new chairman of the <strong>JL</strong>-Foundation<br />
(<strong>JL</strong>-Fondet) after more than ten years at<br />
the helm of <strong>Lauritzen</strong> Bulkers, the ideal<br />
replacement was ready to take over as<br />
president. Ejner Bonderup began with<br />
J. <strong>Lauritzen</strong> in the late 1980s and, except<br />
for a one-year traineeship with <strong>Lauritzen</strong><br />
Reefers, his entire career has been centred<br />
around the dry bulk side of the business.<br />
He points out, however, that three post-<br />
ings abroad also gave him a wide exposure<br />
to <strong>JL</strong>’s other business areas. He was in<br />
Tokyo in the early 1990s, then transferred<br />
directly to Melbourne to start up the <strong>JL</strong><br />
offi ce there and, after a couple of years<br />
back in Copenhagen, went to New York,<br />
where he eventually became general manager.<br />
“I dealt with bulk operations in all<br />
of these positions abroad,” he says, “but I<br />
also had direct involvement in the entire<br />
range of <strong>JL</strong>’s business activities, especially<br />
in opening the Melbourne offi ce and<br />
heading the operation in New York.”<br />
He dates his really serious concentration<br />
on the bulker business from 1999, when<br />
he returned to Copenhagen as head of<br />
Handysize activities, the largest segment<br />
Ejner Bonderup, new president<br />
of <strong>Lauritzen</strong> Bulkers, sees continuity<br />
in long-term strategy.<br />
“I think it’s important to point out<br />
that I and many others in senior<br />
positions began as trainees with<br />
<strong>JL</strong>. My promotion to president of<br />
<strong>Lauritzen</strong> Bulkers should send a<br />
strong signal to young people in the<br />
company. <strong>JL</strong> has a solid tradition of<br />
promoting people from within and<br />
giving employees the opportunity<br />
within <strong>Lauritzen</strong> Bulkers. “I was fortunate<br />
to have worked very closely with<br />
Jens Ditlev <strong>Lauritzen</strong> for nearly his entire<br />
tenure as head of the business unit, and I<br />
served as senior vice president for the past<br />
three years,” he says. “So while the transition<br />
to president of <strong>Lauritzen</strong> Bulkers is<br />
certainly a challenge for me, I feel that I’m<br />
up to speed with all the details of the business<br />
and have a full picture of our history<br />
over the past decade.”<br />
Well positioned for the future<br />
Asked about future direction for <strong>Lauritzen</strong><br />
Bulkers, particularly in light of the current<br />
economic crisis, Ejner Bonderup<br />
points out that strategy formulated back<br />
in 2002 largely anticipated current conditions.<br />
“We analysed the market at that<br />
time and created a strategy that we’re<br />
still implementing today. Basically, we<br />
predicted seven years ago that we were<br />
in for a few good years, which we could<br />
take advantage of with the right balance<br />
between cargo and ships. So we decided<br />
to take on ships. But even then we foresaw<br />
tighter future markets and composed<br />
the fl eet so it could be adjusted downwards<br />
when times became more diffi cult.”<br />
As a result <strong>Lauritzen</strong> Bulkers began to<br />
readjust its fl eet by selling off older vessels<br />
and redelivering time-chartered ships even<br />
before the full impact of the downturn<br />
was felt (see Fleet Notes, page 23). The<br />
ships being sold are primarily older,<br />
smaller vessels that cannot be optimised<br />
for cargo as well or operated as effi ciently<br />
as bigger vessels. “Looking ahead, the demand<br />
side of dry bulk shipping is actually<br />
pretty healthy, showing a steady increase,”<br />
he says. “The challenge for everyone in<br />
the industry is a huge order book and the<br />
uncertainty caused by many ship owners<br />
trying to delay or cancel orders because<br />
of fi nancing diffi culties. This can have<br />
a big impact on what the market looks<br />
like in the long term, but it’s a moving<br />
target and hard to precisely predict how<br />
the supply side will turn out. However,<br />
it might give us business opportunities<br />
that we are ready to take. We continue to<br />
implement our long-term growth strategy<br />
– including optimising our present fl eet<br />
and newbuilding programme – and have<br />
successfully done so slightly more rapidly<br />
because of the fi nancial crisis. It’s part of<br />
a planned adjustment. By lowering the<br />
average cost of the fl eet, focusing on a<br />
modern and attractive fl eet composition<br />
and working with reliable partners, this<br />
strategy puts us in good condition to<br />
weather the current downturn.”<br />
to work their way up through the<br />
system. There are many educational<br />
and career opportunities here, and<br />
also the chance for interesting life<br />
experiences, as my postings in<br />
Tokyo, Melbourne and New York<br />
certainly show.”<br />
Ejner Bonderup<br />
President, <strong>Lauritzen</strong> Bulkers
Making sense of<br />
uncertain markets<br />
It takes steady nerves, a head for details and<br />
a taste for calculated risk to be a successful<br />
product tanker chartering manager<br />
Imagine that you have suddenly (as in a<br />
dream) been assigned to work as a Laurtizen<br />
Tankers chartering manager, just as<br />
the world economy is suffering through<br />
one of the most serious downturns ever.<br />
What would you have to know, just to get<br />
by? The short answer is: a tremendous,<br />
mind-boggling variety of information,<br />
which, just to make things interesting,<br />
changes constantly. Fortuantely, <strong>Lauritzen</strong><br />
Tankers has an expert on the job<br />
– an authority on the subject who appears<br />
to fi nd it not only challenging, but positively<br />
stimulating. Lars Blanco-Hansen<br />
is a product tanker chartering manager<br />
whose main task – together with fellow<br />
chartering manager Jesper Mortensen and<br />
trainee Jonas Andersen – is to charter fi ve<br />
ships for cargoes in the spot market. In<br />
addition to the spot chartering, he also<br />
handles time chartering of ships that are<br />
put out on period contracts.<br />
Constant change<br />
A general description of the job sounds<br />
straightforward enough. “We carry only<br />
refi ned products,” he says, “and we monitor<br />
short- and long-term trends, different<br />
factors that can have an infl uence on the<br />
supply-and-demand balance.” The major<br />
factors to be considered and balanced<br />
against each other range from how many<br />
new ships may be coming from shipyards<br />
in the near and long terms; trends in oil<br />
product consumption, primarily but not<br />
solely in the United States; and most<br />
important, sourcing of products. Typical<br />
sourcing for <strong>Lauritzen</strong> Tankers comprises<br />
carrying gasoline from Europe to the<br />
United States and sometimes to West<br />
Africa and taking diesel and jet fuel from<br />
the United States to Europe.<br />
“This is the market we’re primarily<br />
engaged in,” says Lars Blanco-Hansen,<br />
“but there’s a lot of seasonal change in<br />
the course of a year. So we monitor all<br />
kinds of factors that might infl uence<br />
demand. How cold or warm the winter<br />
is going to be will infl uence the demand<br />
for heating oil in the US North Atlantic<br />
states, for example. During a mild winter<br />
more US-produced diesel product will be<br />
available for shipment to Europe. People<br />
typically drive more during the summer<br />
in the United States, so we monitor trends<br />
in the economy. This year, lots of people<br />
lost their jobs due to the economic crisis.<br />
Our thinking is that they probably won’t<br />
be able to afford to travel abroad and may<br />
drive even more within the country. Then<br />
around September or October, we start<br />
monitoring the hurricane season. A rough<br />
season can be both good and bad for us.<br />
Bad storms can cause electricity and pipeline<br />
problems that decrease US refi nery<br />
production. The result is an increased<br />
demand for gasoline imports but a reduction<br />
of diesel available for shipment back<br />
to Europe.” In other words, placing <strong>Lauritzen</strong><br />
Tankers vessels in the spot market<br />
is a continual balancing act.<br />
Judgement calls<br />
Which is not to say that there is not<br />
a host of uncertainties to juggle and<br />
judgement calls to make. “We buy our<br />
own ships or charter them long term so<br />
our business is sensitive to cargo fl ow –<br />
we always want to make optimal use of<br />
our fl eet,” he says. “At the end of last year,<br />
for example, we believed that the fi rst<br />
quarter of 2009 would be weak, so we<br />
allocated more tonnage to the West Africa<br />
trade because the demurrage we collect<br />
for waiting one to three months to enter<br />
West African harbours can, in a down<br />
market, amount to more than freight<br />
income. It was a good call that helped<br />
carry us successfully through the fi rst<br />
quarter.” There are other long- and<br />
short-term imponderables as well. Because<br />
US refi ners, for instance, can no longer<br />
compete internationally and are being<br />
squeezed on margins, it is likely that<br />
there will be a greater US demand for<br />
gas imports – but exactly when and how<br />
much is not certain. European refi ners<br />
are in somewhat better shape than those<br />
in the United States, but not much.<br />
New refi neries are coming online in<br />
India, China, Korea and the Middle East,<br />
which means that the future could hold<br />
longer voyages. If this is true, should<br />
<strong>Lauritzen</strong> Tankers reconsider its focus<br />
on MR-size ships? Not to mention the<br />
question of whether at some point in<br />
the future different routes to transport<br />
bio fuels – from Indonesia or Brazil, for<br />
example – may have to be considered.<br />
And the fact that even if earnings remain<br />
steady, the price of bunker oil is making<br />
it more expensive to run the fl eet.<br />
For a tankers chartering manager,<br />
uncertainty is a given. It can even be a<br />
good thing. The question, of course, is<br />
how much of it one can tolerate. Lars<br />
Blanco-Hansen was evidently born for it.<br />
“That’s the fun part,” he says. “We add<br />
up all the information, make the best possible<br />
forecast and try stay one step ahead.<br />
When we’re successful – and we usually<br />
are – it’s very satisfying. When we’re not,<br />
we’ve learned something new to use next<br />
time around.”<br />
“We add up all the information, make the best<br />
possible forecast and try stay one step ahead.”<br />
Lars Blanco-Hansen<br />
Chartering Manager, <strong>Lauritzen</strong> Tankers<br />
21
22<br />
Hi-spec duo<br />
to J. <strong>Lauritzen</strong> Singapore<br />
The sixth of June 2009 was most<br />
certainly not just another day at the<br />
offi ce in the short history of J. <strong>Lauritzen</strong><br />
Singapore.<br />
The delivery of two of the most environmentally<br />
sophisticated vessels ever built<br />
was imminent. These were the seventh<br />
and eighth ethylene carriers in a series<br />
of ten initiated by the J. <strong>Lauritzen</strong> Group<br />
from Se Kwang Heavy Industries of<br />
South Korea. More importantly, it was<br />
also the day when two prominent ladies,<br />
Ms. Low Chiew Sim and Ms. Patricia<br />
Poon, had accepted to sponsor the double<br />
namegiving, which in itself was a unique<br />
event.<br />
Ms. Low, spouse of <strong>JL</strong>S Board Member<br />
Professor Neo Boon Siong, was the<br />
sponsor for the fully fi tted Leonora<br />
Kosan. The namegiving ceremony took<br />
Colonel (Ret)<br />
Lee Seng Kong<br />
was formerly<br />
the director of<br />
Marine and senior<br />
director in the<br />
Maritime and<br />
Port Authority of Singapore. Before that<br />
he was in the Singapore Armed Forces/<br />
Republic of Singapore Navy serving in<br />
various capacities that included director<br />
of Public Affairs in the Ministry of<br />
Defence, defence attaché in Washington,<br />
DC, and head of Naval Operations and<br />
fl eet commander in the Republic of<br />
Singapore Navy. He graduated from the<br />
British Royal Naval College and US<br />
Naval War College, and has a Master<br />
of Arts degree from Duke University.<br />
“The excellent teamwork, support and<br />
leadership in <strong>JL</strong>S have contributed to the<br />
development and success of the company. The<br />
future challenges will be to ensure that our<br />
activities are environmentally sustainable<br />
and that we remain proactive.”<br />
place at Onsan, South Korea, where a<br />
crisp morning breeze swept across the<br />
world’s largest shipyard. Coincidentally,<br />
a funnel destined for a <strong>Lauritzen</strong> Bulkers<br />
Capesize bulk carrier passed by on a<br />
barge. The namegiving party had the<br />
opportunity to familiarise themselves<br />
with the crew and the innovative solutions<br />
which brought <strong>Lauritzen</strong> Kosan Lloyd’s<br />
List’s prestigious Ship of the Year Award<br />
in 2008.<br />
Following a refreshing lunch hosted by<br />
Captain No, Chairman of SKHI and<br />
Mr. S.U. Lim, CEO of SKHI, Ms. Poon,<br />
spouse of <strong>JL</strong>S Board Member Colonel<br />
(Ret) Lee Seng Kong was the sponsor for<br />
the nearly completed Victoria Kosan. A<br />
rather brisk afternoon wind challenged<br />
neat hair styles and attire, which, however,<br />
persisted graciously.<br />
Professor Neo<br />
Boon Siong is<br />
director of the Asia<br />
Competitiveness<br />
Institute in the Lee<br />
Kuan Yew School<br />
of Public Policy in<br />
the National University of Singapore, and<br />
a fellow of the Civil Service College and<br />
the Singapore Institute of Directors.<br />
He was formerly dean of the Nanyang<br />
Business School at the Nanyang Technological<br />
University, Singapore. An expert<br />
in strategy, management and organisational<br />
change, he currently serves on<br />
numerous corporate and public boards.<br />
Professor Neo has advised many major<br />
corporations and government agencies,<br />
facilitated strategy workshops, and led<br />
management development programmes<br />
for senior executives and government<br />
offi cials.<br />
“<strong>JL</strong>S’s growth since 2005 has been<br />
phenomenal. The signifi cant achievements<br />
are a result of the vision and commitment of<br />
Subsequently, thanks to <strong>Lauritzen</strong> Kosan<br />
partner LGR Navigazione, the party<br />
enjoyed another spectacular event when<br />
the ninth vessel in the series was launched<br />
by Captain Camino. At very close range<br />
the group witnessed the vessel gathering<br />
speed down the slipway and successfully<br />
entering her natural element.<br />
Excellent year-end results<br />
Since its July 2005 start-up, history<br />
has been hectic but kind to the <strong>JL</strong>S<br />
(J. <strong>Lauritzen</strong> Singapore) Group. This is<br />
illustrated by the fact that the Leonora<br />
Kosan and the Victoria Kosan were the<br />
28th and 29th vessel to join the Group<br />
fl eet, with another nine vessels pending<br />
delivery during 2009-20<strong>11</strong>. As the current<br />
tally of 19 indicates, vessels have also left<br />
the fl eet during these fi rst four years, with<br />
ten vessels sold. Results culminated in<br />
2008 with a profi t of USD 107 million,<br />
the <strong>Lauritzen</strong> leadership. It is a privilege<br />
for me to be involved in the foundation and<br />
growth of <strong>JL</strong>S, and to be able to work with<br />
a group of enthusiastic and highly skilled<br />
professionals.”<br />
“Prof Neo and Col Lee’s<br />
contribution has paved<br />
the way for <strong>JL</strong>S in gaining<br />
a top tier position<br />
in Singapore. Personally<br />
I have benefi tted<br />
immensely from their<br />
sharing of know-ledge<br />
and networks.”<br />
Tom Hansen<br />
Managing Director,<br />
J. <strong>Lauritzen</strong> Singapore
Tom Hansen, managing director of J. <strong>Lauritzen</strong><br />
Singapore, reports on delivery and namegiving<br />
of environmentally sophisticated ethylene carriers.<br />
despite the economic turmoil during the<br />
second half.<br />
This extraordinary development would<br />
not have been possible without the contribution<br />
of <strong>JL</strong>S board members Professor<br />
Neo Boon Siong and Colonel (Ret) Lee<br />
Ms. Low Chiew Sim sponsored the Leonora<br />
Kosan.<br />
Fleet Notes<br />
<strong>Lauritzen</strong> Bulkers<br />
Partly in response to current market<br />
conditions, but largely driven by its<br />
strategy of building a modern, effi cient<br />
fl eet <strong>Lauritzen</strong> Bulkers has – so far this<br />
year – redelivered a total of eight timechartered<br />
ships, with another four to<br />
follow later in 2009. Additionally, a total<br />
of nine ships were sold in the past 18<br />
months, all older, smaller units that were<br />
increasingly costly to operate. The longterm<br />
strategy is to combine fi ne-tuning of<br />
newbuilding programme deliveries with<br />
ongoing adjustment of the fl eet to lower<br />
average costs, operate more effi ciently and<br />
increase competitiveness.<br />
<strong>Lauritzen</strong> Kosan<br />
Namegiving ceremonies were recently<br />
held for the Victoria Kosan and Leonora<br />
Seng Kong. On board since <strong>JL</strong>S shipowning<br />
activities kicked off with AIS<br />
status in September 2005, they have participated<br />
in the expansion into Handysize<br />
bulk carriers, MR product tankers, fully<br />
pressurised gas carriers, shuttle tankers,<br />
offshore support vessels and ethylene<br />
Ms. Patricia Poon sponsored the Victoria Kosan. On her left, Mr. S.U. Kim, president of Se<br />
Kwang Heavy Industries; on her right, Jan Kastrup-Nielsen, president of <strong>Lauritzen</strong> Kosan.<br />
Kosan. These two vessels, which were<br />
delivered in June and August to J. <strong>Lauritzen</strong><br />
Singapore, are the fi nal <strong>Lauritzen</strong>-owned<br />
ships in the series of advanced ethylene<br />
carriers produced by the Sekwang shipyard<br />
in South Korea. Two more ethylene<br />
carriers are being delivered later in the<br />
year from Sekwang to <strong>Lauritzen</strong> Kosan’s<br />
Italian pool partners. Additionally, six<br />
pressurized gas carriers being built in<br />
China will be delivered between the fi rst<br />
quarter of 2010 and the second quarter<br />
of 20<strong>11</strong>. Two of these may go into China<br />
costal trade, while the others are targeted<br />
for international trade.<br />
<strong>Lauritzen</strong> Tankers<br />
One of the series of eight ships on order<br />
from Guangzhou Shipyard International<br />
in China has been sold; of the others, one<br />
carriers. This was executed through<br />
activities acquisitions, purchase of<br />
second-hand vessels, contracting of<br />
newbuildings and bareboat and time<br />
charters either directly or with <strong>JL</strong>S<br />
partners IVS, Tailwind, and Mitsubishi.<br />
will be delivered in 2010 and six will<br />
follow in 20<strong>11</strong>/2012. Two additional<br />
newbuildings – sister ships to <strong>Lauritzen</strong><br />
Tankers’ existing vessels the Freja Dania,<br />
Freja Fionia, Freja Hafnia and Freja<br />
Selandia – are to be delivered early in 2010.<br />
<strong>Lauritzen</strong> Offshore Services<br />
Two purpose-built shuttle tankers from<br />
Cosco Nantong Shipyard in China<br />
are scheduled for delivery in 2010 and<br />
20<strong>11</strong>. These are on long-term charter to<br />
Transpetro, a wholly owned subsidiary<br />
of Petrobras, Brazil’s state-owned oil<br />
company.<br />
23
24<br />
From left: Michael Spelling Clausen, Purchasing Department; Jakob Langballe Pedersen, <strong>Lauritzen</strong> Tankers; René Gaarden Jensen, <strong>Lauritzen</strong><br />
Bulkers; Anders Stæhr Poulsen, <strong>Lauritzen</strong> Bulkers; Maria Mosekjær Rasmussen, <strong>Lauritzen</strong> Tankers; Mia Storgaard Andersen, <strong>Lauritzen</strong> Kosan.<br />
Trainees<br />
off to a strong start<br />
The trainees pictured here all became<br />
full-fl edged employees as their two-year<br />
training period ended in July. Their<br />
continuing enthusiasm for J. <strong>Lauritzen</strong><br />
and the shipping industry just goes to<br />
show that the right people plus the right<br />
programme is a formula for success.<br />
All six strongly agree that there is a<br />
special spirit within the shipping industry<br />
and particularly within J. <strong>Lauritzen</strong>. The<br />
<strong>JL</strong> trainee programme has fostered this<br />
feeling by immersing them immediately<br />
into the responsibilities and the details<br />
that keep J. <strong>Lauritzen</strong> running. And by<br />
exposing them to the international<br />
contact and travel that all of them fi nd<br />
an interesting aspect of the shipping<br />
business.
Industrial immersion<br />
internships at J. <strong>Lauritzen</strong><br />
Singapore<br />
Line Lind Clausen, chartering manager for<br />
<strong>JL</strong>S, reports on the offi ce’s fi rst experience<br />
with maritime studies interns.<br />
KEEP (Knowledge, Experience, Ethics<br />
and Personality) is what Weixiang Su (23)<br />
and Chai Yuan Sheng (22) concluded<br />
they gained and further developed after<br />
their ten-week internship at <strong>JL</strong>S. I came<br />
into contact with the two students while I<br />
was guest lecturing at Nanyang Technological<br />
University last year (see article in<br />
<strong>Lauritzen</strong> <strong>News</strong> #10), and both subsequently<br />
applied to have their internships<br />
at <strong>JL</strong>S. Both students are taking a four-year<br />
bachelor degree in maritime studies,<br />
a programme that focuses on tertiary<br />
education in shipping, business, management<br />
and maritime science and technology.<br />
The degree includes a semester at the<br />
Norwegian School of Management (BI)<br />
and a ten-week Industrial Immersion<br />
Attachment (internship).<br />
The objective of the Industrial Immersion<br />
Attachment is to instill a sense of professionalism<br />
and the right work attitude, as<br />
well as to give students a chance to apply<br />
the knowledge they have gained from<br />
their studies in real-time work situations<br />
in a corporate environment. During the<br />
internship, Chai and Weixiang were both<br />
surprised by the hectic and ever-changing<br />
environment, which requires teamwork<br />
and personal judgment, and can neither be<br />
prepared for nor learned from text books.<br />
Weixiang comments that “the work is full<br />
of challenges and uncertainties”.<br />
Hands-on experience<br />
During their stay at <strong>JL</strong>S, both students<br />
were introduced to areas such as dry<br />
cargo operations and chartering, gas<br />
operations and fi nance and accounting.<br />
They also worked on practical assignments<br />
like proofreading, arranging<br />
charter parties and updating records for<br />
ships owned by <strong>JL</strong>S. The ten-week stay<br />
at <strong>JL</strong>S also included familiarisation visits<br />
to two ships, the Stina Kosan and the<br />
Karine Bulker, which both were in<br />
Singapore for bunkering operations.<br />
Chai went to Norway last year and<br />
completed a semester at BI, whereas<br />
Weixiang is currently doing his studies<br />
“For us it has become even more evident how<br />
valuable it is for the industry to stay in touch<br />
with and have an ongoing dialogue with educational<br />
institutions. This provides an opportunity<br />
to follow and even infl uence the programmes,<br />
and thereby to play a part in setting a direction<br />
for the future workforce.”<br />
at BI. During Weixiang’s stay in Oslo,<br />
he has had the opportunity to take the<br />
DFDS passenger ferry from Oslo to<br />
Copenhagen with fi ve fellow students,<br />
where they had an unforgettable stay.<br />
The students visited <strong>JL</strong> headquarters at<br />
Sankt Annæ Plads, saw the former<br />
training ship Lilla Dan and went on a<br />
<strong>JL</strong>S sponsored trip to Tivoli.<br />
This is the fi rst time <strong>JL</strong>S has had interns<br />
from the university. It has been a mutual<br />
and positive learning curve. It offers a<br />
good opportunity for the interns to combine<br />
the theoretical side of their studies<br />
with the practical tasks of the workplace,<br />
and it gives <strong>JL</strong>S an excellent opportunity<br />
to spot talent and identify possible future<br />
employees. Both Weixiang and Chai<br />
agreed after their stay at <strong>JL</strong>S that it was<br />
an invaluable contribution to developing<br />
their shipping skills. As Chai says, “Everyone<br />
is learning every day in shipping”.<br />
Line Lund Clausen<br />
Chartering Manager, J. <strong>Lauritzen</strong> Singapore Weixiang Su (on left) and Chai Yuan Sheng.<br />
25
26<br />
In memoriam:<br />
Niels Fisch-Thomsen<br />
Niels Fisch-Thomsen, chairman of the board of directors of the<br />
<strong>JL</strong>-Foundation (<strong>JL</strong>-Fondet), passed away on Saturday <strong>11</strong> April 2009<br />
after a long illness. Bent Østergaard, president of Vesterhavet A/S, and<br />
Inge Grønvold, manager of the <strong>JL</strong>-Foundation, look back on his career:<br />
For 12 years, Niels Fisch-Thomsen,<br />
lawyer, headed the <strong>Lauritzen</strong> Group as<br />
chairman of the board of directors of the<br />
<strong>JL</strong>-Foundation. The period was characterized<br />
by changing market conditions and<br />
many important decisions, which led to<br />
signifi cant structural changes and affected<br />
the daily work life of many. This includes<br />
the closing of Danyard, the sale of<br />
DFDS Transport to DSV, the delisting<br />
of J. <strong>Lauritzen</strong> Holding A/S from the<br />
Copenhagen Stock Exchange, and the<br />
sale of Aalborg Industries A/S.<br />
The period was also marked by prosperity<br />
and growth for the <strong>Lauritzen</strong> Group.<br />
During these years J. <strong>Lauritzen</strong> A/S, in<br />
particular, changed its profi le, leading to<br />
excellent results. After more than a decade<br />
as a pioneer and market leader in the reefer<br />
industry, J. <strong>Lauritzen</strong>’s involvement in the<br />
reefer trades was terminated, while the<br />
company expanded its activities considerably<br />
in the bulk, gas, and product<br />
tank markets. Most recently, <strong>Lauritzen</strong><br />
Offshore Services was established as a<br />
new business unit serving the offshore<br />
industry with dynamically positioned<br />
support vessels. During Niels Fisch-<br />
Thomsen’s chairmanship, DFDS A/S<br />
also developed notably, including<br />
considerable growth of the DFDS<br />
Tor Line.<br />
Vision and determination<br />
One of Niels Fisch-Thomsen’s greatest<br />
qualities was his ability to maintain<br />
attention to detail while still managing to<br />
be visionary and effi cient. Furthermore,<br />
he had a unique ability that enabled him<br />
to moderate his professional background<br />
as a lawyer when required and act with<br />
the confi dence and determination of a<br />
skilled businessman.<br />
At the same time he was deeply dedicated<br />
to nonprofi t work, whether it was caring<br />
for society’s weakest in Denmark or on an<br />
international level. This is a signifi cant<br />
part of the <strong>JL</strong>-Foundation’s purpose and<br />
was one of Niels Fisch-Thomsen’s top<br />
priorities. Niels Fisch-Thomsen enjoyed<br />
great respect, not only because of his<br />
ability to ask critical and penetrating<br />
questions, but also because he had the<br />
relaxed and pleasant ability to listen and<br />
show confi dence in those around him.<br />
During his battle with cancer he still<br />
attended to business, and because of this,<br />
especially, he serves as a shining example<br />
for those of us who will now miss his<br />
presence. His tenacity and determination<br />
refl ect an unrelenting drive and vitality<br />
to the very end.<br />
“The love and care shown by parents for<br />
their children is deeply rooted in human<br />
existence and development,” wrote Niels<br />
Fisch-Thomsen in the introduction to<br />
the <strong>JL</strong>-Foundation’s 2008 annual report.<br />
We know that his daughters and grandchildren<br />
were his greatest pride. He now<br />
leaves them behind, together with his<br />
spouse Kirsten. Our deepest sympathy<br />
goes to them.
Make way for women<br />
Measured strictly by the numbers, shipping<br />
may still be a man’s world. But in companies<br />
such as J. <strong>Lauritzen</strong>, where women<br />
occupy executive vice president and senior<br />
vice president positions, old patterns are<br />
clearly changing. According to Malin<br />
Mattson, <strong>JL</strong>’s new head of Insurance &<br />
Claims and Elsebeth Grosmann-Huang<br />
who recently joined Insurance & Claims<br />
as a claims executive, even the old traditions<br />
weren’t necessarily “anti-female”. They<br />
point out that the shipping industry is<br />
built around technical interests and careers,<br />
like naval architecture, that even today<br />
tend to attract more men than women.<br />
So that the higher number of men is not<br />
necessarily a policy- or gender-driven issue.<br />
“The question’s still valid – it is a male-<br />
dominated industry, that’s for sure,” says<br />
Malin Mattson, “but you get used to it,<br />
and it’s not a problem. It all comes down<br />
to what your approach is – whether you’re<br />
open-minded, asking questions and and<br />
willing to entertain new ideas.” An opinion<br />
seconded by Elsebeth Grosmann-Huang:<br />
“If anything, I see being a woman in the<br />
shipping business as an advantage,” she<br />
says. “I’ve had only positive experiences in<br />
shipping. My experience as a lawyer is that<br />
once people recognize that you know what<br />
you’re talking about and have something<br />
to contribute, then it’s not a question of<br />
male or female.”<br />
Advising the business units<br />
Both women are educated as lawyers and<br />
work in Insurance & Claims, which was<br />
incorporated into <strong>JL</strong>’s legal department in<br />
May 2009. The legal department dates<br />
from just 2005; before that <strong>Lauritzen</strong><br />
depended exclusively on outside legal<br />
advice. “The rationale behind merging<br />
the two departments is pretty straightfor-<br />
Shipping is traditionally regarded as a male<br />
business, but there are notable exceptions.<br />
Two of these are working to strengthen <strong>JL</strong>’s<br />
Insurance & Claims department.<br />
Photo by Ulla Munch-Petersen<br />
Malin Mattson (on left) and Elsebeth Grosmann-Huang.<br />
ward,” says Malin Mattson. “In shipping<br />
the two areas are very tightly intertwined.<br />
Claims are often treated as insurance issues.<br />
For example, cargo damage or liability<br />
claims might go to a claims handler and<br />
eventually end up in arbitration or court,<br />
so that <strong>JL</strong>’s legal department was automatically<br />
involved. It also works the other way<br />
around. When the legal department is<br />
involved in the purchase of a vessel, for<br />
instance, insurance has to be put in place<br />
as soon as the purchase is made. So there’s<br />
a constant overlap between the two areas.”<br />
“A great deal of what we do can be seen as<br />
providing a service to the business units,”<br />
says Elsebeth Grosmann-Huang. “If there’s<br />
a contractual problem of some kind, it’s<br />
always our hope that the disagreement<br />
can be resolved and not turn into a legal<br />
dispute – and that we don’t have to approach<br />
outside advice for court proceedings.<br />
First, because that kind of advice is<br />
expensive and second – but equally<br />
important – because we want to build on<br />
our already extensive in-house knowledge<br />
and capability.” According to both<br />
women, an important goal for the new<br />
Insurance & Claims department is to<br />
increase its role as an advisor. “We don’t<br />
want to be in the position of simply<br />
waiting to respond to claims,” says Malin<br />
Mattson. “We see our mission as being<br />
more proactive about providing updated<br />
information to the business units – both<br />
insurance and legal advice that they can<br />
use in their daily work. This could include<br />
advice about negotiations for new charters<br />
or contracts, notifi cation about new<br />
legislation that could affect operations,<br />
updates about areas where extra insurance<br />
coverage is needed – anything that can<br />
help them operate more effectively.”<br />
“We see our mission as being more proactive<br />
about providing updated information to the<br />
business units – both insurance and legal<br />
advice that they can use in their daily work.”<br />
Malin Mattson<br />
Head of Insurance & Claims<br />
27
J. <strong>Lauritzen</strong><br />
celebrates 125 years in shipping<br />
In May 2009, J. <strong>Lauritzen</strong> celebrated the<br />
125-year anniversary of its involvement<br />
in virtually all facets of international<br />
merchant shipping with a reception at the<br />
company’s beautiful premises at Sankt<br />
Annæ Plads. Amongst the guests were<br />
employees, former employees, business<br />
associates and friends of the company, all<br />
of whom made the anniversary a day to<br />
remember. In the evening, employees<br />
and their spouses attended a celebration<br />
dinner and, as a unique addition, no less<br />
than 13 ship sponsors were also present<br />
at the dinner.<br />
Editors<br />
Torben Janholt<br />
Tove Elisabeth Nielsen<br />
Jens Søndergaard<br />
J. <strong>Lauritzen</strong> A/S<br />
Sankt Annæ Plads 28<br />
1250 Copenhagen K<br />
Denmark<br />
Tel: +45 3396 8000<br />
On the occasion of the anniversary<br />
J. <strong>Lauritzen</strong> had asked for contributions<br />
to Stairway Denmark instead of gifts to<br />
the company. Stairway is a programme<br />
for the most marginalized and endangered<br />
street children in the Philippines.<br />
The company received DKK 125,000<br />
in contributions, an amount that the<br />
<strong>JL</strong>-Foundation (<strong>JL</strong>-Fondet) matched,<br />
thus bringing the total contribution<br />
to Stairway to DKK 250,000. Many<br />
thanks for the generous contributions.<br />
Editorial support and design<br />
Cross-Border Communications<br />
Copenhagen<br />
<strong>Lauritzen</strong> <strong>News</strong> is a semi-annual<br />
publication. Reproduction<br />
permitted only after agreement<br />
with the editors.<br />
J. <strong>Lauritzen</strong> A/S operates globally and is engaged in diversifi ed ocean transport through <strong>Lauritzen</strong> Bulkers (dry bulk cargoes), <strong>Lauritzen</strong> Kosan<br />
(petrochemical and liquefi ed petroleum gases) and <strong>Lauritzen</strong> Tankers (refi ned oil products). J. <strong>Lauritzen</strong> also serves the offshore oil exploration and<br />
production industry with specialised tonnage through <strong>Lauritzen</strong> Offshore Services.<br />
<strong>JL</strong> employs a staff of approximately 750 persons and together with partners/associates controls a combined fl eet of about 220 vessels including vessels<br />
on order consisting of bulk carriers, gas carriers, product tankers and dynamically positioned offshore support vessels.<br />
For more details on <strong>JL</strong>’s business activities and fl eets, see www.j-l.com<br />
Ship sponsors, left to right:<br />
Front row – Karin Halmøe, Isabel Pons<br />
de Molina; Second row – Lena Have,<br />
Marianne <strong>Lauritzen</strong>, Tutte Østergaard;<br />
Third row – Marianne Warsberg, Tove<br />
Nielsen, Therese Stenderup, Lizzie Janholt,<br />
Ellen Mortensen; Fourth row – Anne<br />
Bruun Larsen, Hanne Truelsen, Josefi n<br />
Lindeblom Bonderup.