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contents12With installations in Alexandroupolis,Aegean is ideally placedin the energy markets of Greeceand Southeast Europe.20Mr. Nikos Peramatzis, Gas StationNetwork Manager, talks about Aegean'sRO-RO tankers.22Work at Fujian Southeast Shipyard and QingdaoHyundai progresses at a fast pace.Spring 2007Aegean News is publishedquarterly by AEGEANCODE: 5169PUBLISHER & MANAGING EDITORRaymond MateraCONTRIBUTING EDITORJ. GeorganaDESIGNSnackPRINTING AND BINDINGKorifi Publications SAOWNERAegean42 Hatzikyriakou Street185 38, Piraeus, GreeceTel: +30 210 458 6000Fax: +30 210 458 6241E-Mail: info@aegeanoil.grInternet: www.aegeanoil.gr,www.ampni.comComments and suggestionsare welcome.Aegean News is free of charge andis available, subject to availability, toany interested person or organization.4 AEGEAN UPDATE7 NEW YEAR’S PARTY8 FLOWS AND CURRENTSTrends and News in the Oil and Energy Fields10 DIMITIRS MELISSANIDISINTERVIEW IN ELNAVI MAGAZINE11 FLOATING SEPARATOR12 ALEXANDROUPOLIS—ENERGY HUB16 BUNKERING AND LUBRICANTSLubricant Oil Spills and the Marine Environment17 BUNKERINGAegean’s Bunkering Station Network18 STATIONS OF THE MONTH• Yiannis Fotiadis —“Someone to Listen”• Fotis Staikos—129 Herakliou Ave. Perissos20 RETAILN. Peramatzis Interview—RO-RO Tankers22 RETAIL2006: Aegean’s Sales Positive Once Again23 SHIPPINGAegean Newbuildings—Progress Report26 EXPLORATIONSonar27 MARITIME TRADITIONGreek Maritime History28 ROOTSWine Pleases a Man’s Heart –Part C29 HISTORY OF THE AUTOMOBILEThe Development of Technology30 TRAVELNafplio31 AEGEAN IMAGEProducts that say “We are Different”SPRING 2007 AEGEAN NEWS 3

AEGEAN UPDATEAegean TiffanyArrives in SingaporeThis is how Bunkerword magazine announced Aegean’s second tanker arrivalin Singapore: "Singapore-based accredited bunker supplier Aegean Bunkering(Singapore) Pte Ltd has brought in its second new double-hulled bunker tankerinto Singapore."Aegean Tiffany, a 2,700 deadweight ton (dwt) double-hulled bunker tanker, arrivedinto the port of Singapore in March 20, 2007.''We are pleased to have deployed another double-hulledbunkering tanker in Singapore, Aegean Tiffany, which followsthe opening of our Singapore service center in June2006,'' Nikolas E. Tavlarios, president of Aegean MarinePetroleum Network, told Bunkerworld in a statement.Aegean's first double-hulled bunker tanker, AegeanBreeze I (3,000 dwt), has already begun operations inSingapore. The company is currently moving aboutMr. Nikolas E. Tavlarios50,000 metric tonnes (mt) of bunkers per month.Aegean has also committed a third new double-hulled tanker of 3,800 dwt intoSingapore, to follow-up on Aegean Tiffany.''As we execute our growth strategy, which includes the delivery of 22 newbuildingsunder contract and options to acquire nine additional vessels over the nextthree years, we will look for opportunities to deploy additional vessels in theSingapore market,'' said Mr. Tavlarios.''We are committed to providing customers in Singapore and the other markets weserve with a fully integrated marine fuel logistics solution, including modern double-hullvessels that meet the highest safety and environmental standards,'' he said.With the addition of Aegean Tiffany, the Singapore bunker market now boastsseven new double-hulled bunker tankers.New AegeanPersonnelThe following employees have joined theAegean work forceKoutoula EvageliaAEGEAN MARINE PETROLEUMKondaxakis PolykarposAEGEAN OILPapafaklis VasiliosAEGEAN BUNKERING SERVICESAvgikos PanayiotisAEGEAN BUNKERING SERVICESXenou MariaAEGEAN BUNKERING SERVICESBogis NikolaosAEGEAN SHIPPINGMaltezos SpyridonAEGEAN BUNKERING SERVICESNew Ship Joinsthe Aegean FleetThe development and modernization ofthe Αegean Bunkering fleet continues.A new, modern, double-hull vessel hasbeen added to the Aegean family inFebruary 2007. It is the tanker Ouranos,67,980 dwt, which, following necessarymodifications, will be dedicated to theAegean fleet at the Fujairah station andwill contribute to the increase of thetransport and reserve capacity of theregion. May the new ship always travelin calm seas.4 AEGEAN NEWS SPRING 2007

New Stationsin Aegean’s RetailNetworkThe Aegean network is growing throughoutthe country. Listed below are the stationsthat have started displaying the AegeanLogo during the past three months.I.B.I.A. (International BunkeringIndustry Association) EventAs in previous years, Aegean participated at the I.B.I.A. (International Bunker Industry Association)Annual Dinner, a yearly event that has been held for the past 13 years and which thisyear took place in London’s Hilton Hotel on February 12.Aegean’s guests had an enjoyable evening in a relaxing atmosphere and the opportunity tomeet with friends and business associates to discuss current developments in the industry.Messrs. Melissanidis and Fokas Visit ChinaIn February 2007 Mr. Dimitris Melissanidis and Mr. Spyros Fokas visited China,whose market offers a variety of opportunities for high return investments.During their trip they had the chance to meet high-ranking government andmarket officials and discuss the possibilities of cooperation in various sectors ofthe oil trading market.103 Pireos Ave. KaminiaFleris Antonis21 Ionias Ave. & Agiou Meletiou, AttikisSquareFleris AntonisPsaron & Markou Botsari, DrapetsonaKolovou Bros., Ο.Ε73 Kiprou Ave., 16451 ArgyroupolisTsouktouridis Greg. Ioannis178 Thivon & Koumoundourou , RendisGiannopoulos Bros., Ο.Ε34 25th March-18543 PiraeusKranias Bros., Ο.Ε.Eliki Egiou, AchaiaSeryanidis P.- Pagalos X. Ο.ΕFilippoi Kavalas-Kavala, KavalaSarisavas PanayiotisEfkarpia, SerresTychalas George5 Kendrikis, Meliki, ImathiaGousianopoulou DespoinaChrysoupolis, KavalaSeretopoulos Lazaros12th Km. N.R. Thessaloniki-Edessa,ThessalonikiSafiana EPE (branch)Megali Doxipara, OrestiadaKamaryiannis AthanasiosLikofi, SoufliBakirtzi LemoniaSPRING 2007 AEGEAN NEWS 5

AEGEAN UPDATEAegean Marine Petroleum Exhibitor at the ConnecticutMaritime Association Shipping Conference 2007 in the USAThe CMA Shipping conference is a PremierInternational Shipping and Trade conferenceand Exposition. This year’s conference washeld March 19-21 at the Westin StamfordHotel in Connecticut and at which AegeanMarine Petroleum had a significant presenceas an Exhibitor. This event provides businessTwo important issues were addressed at thisyears conference: (1) the complexity of themarkets in the 21st Century, examining theincreasing interaction between physical andpaper markets, as well as the rising influenceof financial markets, ship owners, shippers,brokers, and traders who face a changingPresident and CEO of Overseas ShipholdingGroup, INC (OSG) joins the distinguished listof maritime executives who have receivedthe award for their leadership and commitmentto the business. Aegean MarinePetroleum congratulates Mr Morten Arntzenand is proud to be a part of such a successfulevent. Aegean continues to have a strongpresence in the Americas and worldwide asan established and reliable physical supplierof marine fuels.From left: Mrs Georgia Kounalakis and Mrs Samantha Ziotis from Aegean's New York office, and Mr. Nikolas Tavlariosopportunities from around the world. Individualsfrom all areas of the industry cometogether to network and share informationand knowledge on global industry matters.Aegean Marine Petroleum is happy to be apart of Connecticut Maritime Association,which is recognized as the leading commercialshipping association for North America.market for their business, and (2) the muchtalked-aboutPanama Canal expansion, thatwas discussed by the Panama Canal AdministratorMr. Alberto Aleman Zubieta from thePanama Canal Authority (ACP).Every year the Connecticut Maritime Associationawards a recipient with the CommodoreAward. This year Mr. Morten ArntzenNew Singapore Office ExecutiveAegean is pleased to announce that Mr U Soe Paing has joined Aegean as anoperations executive in the Singapore Station. He holds a second mate foreigngoing certificate of competency and he brings with him 15 years of marine andbunkering experience; he sailed for eight years as a officer on a bunker tankerand spent seven years working as an operations executive at a bunkeringcompany in Singapore.Logging OnCustomers and associates of Aegeanmay visit the company’s website(www.aegeanoil.gr) to learn about thecompany’s activities. Bunkering customersmay register online to conductbusiness and maintain contact with thebunkering department at www.ampni.com6 AEGEAN NEWS SPRING 2007

AEGEAN UPDATEAegean Cuts its New Year’s PitaAegean hosted its annual New Year’s Pita cutting event onFebruary 9, at the FOS night club, on Iera Odos in Athens.The night began with a greeting and review of 2006 by theGroup’s President Mr. Dimitris Melissanidis. Mr. Melissanidisthen presented awards to six of the company’s employeesfor their outstanding performance during 2006. The honoredemployees, who received a plaque and 1,000 Euros each, are:Kamenidis Demetrios, Aegean OilMendrinos Stamatis, Αegean ShippingManitsas Apostolos, Aegean Marine PetroleumPsaromichelakis Michalis, HECSekeslidis George, Thessaloniki OfficeSiskos George, Alexandroupolis OfficeThe evening’s celebrations picked up with Aegean’s peopledancing—as is the custom—throughout the club, in thecorridors and on the tables, turning the venue into a hugedancing floor as the leading singers, Kourkoulis and Kelesidou,set the place afire with their performance.Everybody had a wonderful time and kept rocking untilthe early morning hours.The lucky guests who found the coin in the Pitas, and won 500Euros each, were Katerina Glytsou and Demetris Bitzos.Aegean extends best wishes to everyone for another successfulyear. Many thanks are due to Aegean’s Managementfor the unforgettable evening.SPRING 2007 AEGEAN NEWS 7

FLOWS & CURRENTSHELMEPACelebrates 25 Successful YearsThe Greek Association for the Protection of the Marine Environment, HELMEPA, is celebrating 25years since its foundation.Under the slogan “Let’s Save the Seas,” Greek shipowners and mariners founded HELMEPA, aunique collective effort for the prevention of sea pollution from ships, using man and the Greeksense of honor as its founding principles.On Wednesday, June 6, 2007 at the Athens Concert Hall (Megaron Musicis), HELMEPA will presentits programs and activities in the presence of representatives of the State, the European Union,the diplomatic corps, executives from the Greek and international shipping community, and itsmembers. The programs and activities of HELMEPA have been in place for 25 years through thevoluntary efforts of the shipping industry and the voluntary efforts of the student community inGreece and elsewhere.New CarbonEmissionsLimitsThe European Union announcednew carbon emissions limits underthe second phase of its carbontrading schemeThe EU's overall plan calls for itsmember nations to cut greenhousegas emissions by 8% from1990 levels by 2008-2012.That is in line with their Kyotocommitments.But European countries are offthe pace. Hence, the EU's newlyannounced catch-up targets.These are, on average, 7% belowthe levels member nations wereproposing and are also 7% below2005 emission volumes.The new targets cover tenEuropean countries that accountfor 42% of the carbon allowancesallocated for the 2005to 2007 period: Germany,Greece, Ireland, Latvia, Lithuania,Luxembourg, Malta, Slovakia,Sweden and the U.K. The remainingmember countries still haveto reach agreement with the EUon their national targets.Minister Kefaloyiannis ReviewsThree Year Office TermMercantile Marine Minister Manolis Kefaloyiannis recently outlinedhis ministry's work, initiatives, and prospects over the three-yearperiod that he has been in office.Mr. Kefaloyiannis referred to the ministry's new headquarters, sayingthat a decades-old dream has become a reality. The buildingtotals 42,000 square metres, is ultramodern, and its total cost of30 million Euros was covered with a loan from the Deposits and Loans Fund.The Minister also referred to the Greece-Korea Memorandum of Cooperation on the development,management and operation of the Tymbaki port, and said that it constitutes a milestone, since it isan important project that provides great prospects of development for Crete and the Greek economy.Regarding the city of Piraeus, Mr. Kefaloyiannis pointed out that the first goal is its developmentinto an international maritime center.IMO’s Efthymios Mitropoulos Speaks in AthensInternational Maritime Organization (IMO) Secretary-GeneralEfthymios Mitropoulos gave an address in Athens in Februaryon the theme “The IMO’s Work and Mission,” that wasorganized by the Diplomatic Academy at the foreign ministry.Deputy Foreign Minister Yiannis Valinakis also addressed theevent, who referred to Greece’s protagonist role in world shippingand to its contribution to the strengthening of IMO.Greece is in first place in shipping among EU member-states,with 22 percent of total capacity, and Greek-owned shipscontrol 16 percent of world capacity, Mr. Valinakis said.Mr. Mitropoulos spoke about IMO’s primary targets, “which concern the safety ofinternational shipping, to which, in these past few years, particularly after September2001, has also included the aspect of terrorism, illegal activities, and the protectionof the environment.”8 AEGEAN NEWS SPRING 2007

New Dutiesfor Captain Cliff BrandThe Maritime Administrator of Gibraltar Ship Registry,Captain Cliff Brand, has announced that he will be leavingthe Gibraltar Flag. His farewell announcement:“Dear All,Some of you will already know of my move, for othersthis is perhaps an appropriate time to let you know. Onthe 22nd March 2007 I will be taking up the post of ChiefExecutive Officer with the Gibraltar Port Authority. I will also take on the duties ofCaptain of the Port.I have sincerely enjoyed my time at the Gibraltar Maritime Administration andhave seen the organisation go from strength to strength during my two years inpost as Maritime Administrator. The success of the organisation is of course downto its staff, both past and present, and the support it has received from the Governmentof Gibraltar, the UK MCA, and the ship owners/operators, which have theirships, registered under the flag of Gibraltar. Amongst other things, the previoustwo years has seen registered tonnage grow by 20% per annum, achievement ofParis MOU “white list” status, ISO 9001:2000 accreditation, more transparency inthe organisation, coupled with an on-going policy of customer focus.I will obviously miss much about the Gibraltar Maritime Administration, not leastof all its external affairs with other maritime organisations, flag states, and shipowners/operators.”Aegean takes this opportunity to wish Captain Brand the best of luck and successin his new post as Port Authority Chief Executive. We look forward to workingwith him in his new post, and offer our assistance in any way.Piraeus—Center of Maritime ArbitrationMr. Paul Avrameas, President of the Greek Association of Maritime Lawyers, in a recentinterview pointed out that other international centers, especially London, continue tomonopolize Greek shipowners’ cases requiring maritime arbitration, despite the factthat Piraeus has been established as an important center of legal counsel in the fieldof maritime law, and emphasized the benefits that could result from a change in thisscene. “ If Piraeus becomes a center for international maritime arbitration, the benefitfor Greece’s legal sector will result from the increase of cases demanding legal attention,and for Greek shipping from saving time and money. But above all, what is mostimportant is the benefit for the whole country, as it will upgrade its legal culture and itsinfluence internationally.In Search of Gasfor Turkish-Greek-Italian PipelineAn important issue currently under reviewregards the supply of 11.5 billion cubicmeters of gas for the pipeline under constructionthat, from its origin in Turkey,will cross Northern Greece and will terminate—throughan undersea pipeline—inSouthern Italy. By the middle of 2007the first section of the pipeline, connectingGreece with Turkey, is expected to beready, but it has not become clear yet ifit can be fully supplied. The natural gasquantities from Azerbaijan will be relativelysmall and will not be sufficient to makethe pipeline viable when it starts operatingin 2011. An alternative source is withsupplies from the Bluestream pipelinealready crossing Turkey from the Northto the South, currently being suppliedwith natural gas from Russia. However,Brussels directives are very clear: theTurkish-Greek-Italian pipeline must not beconnected with Bluestream, since this willflood Europe with an almost exclusive supplyof Russian gas.SPRING 2007 AEGEAN NEWS 9

INTERVIEWELNAVI Features DimitrisMelissanidis and Aegean’sImpressive CourseAegean’s impressive course was the main topic of the monthly shippingmagazine ELNAVI, which published an interview with Aegean’s founderMr. Dimitris Melissanidis in its February issue.Some excerpts from the interview:Aegean Marine Petroleum Network is listedin the NYSE, the largest stock marketof the world. How did you achieve this?When I announced three years agothat Aegean would enter the NewYork Stock Exchange, I had alreadycreated a plan to make it happen. Isaw that the only way to achieve rapidexpansion was to find funds. The onlystock market that could provide thenecessary funds was Wall Street. Thatwas the vision, the idea. After that wecarefully planned our steps, and inDecember of 2006 Aegean shares werefinally on the Wall Street board.What is your next step?Our participation in the largest stockmarket in the world—in additionto the fact that it provided us withthe funds that we required—createsenormous responsibilities. From nowon we have to ensure we are worthyof the trust that the investors put inus. Our target is, with the completionof almost 40 newbuild tankers, forAegean to have the greatest and mostmodern fleet of bunkering vessels inthe world, to create a global networkof bunker stations at the most importantports of the world with customersin the best and most reliableforeign enterprises.In 2002, with 250 gasoline stations inGreece, you said that the aim of Aegeanin the local market was to create 500gas stations and to have 5% of the marketshare. In 2006 Aegean achieved thetarget of 500 gas stations, controlling7% of the market share and holdingfourth place in gasoline sales in Greece.How did you achieve that and what isyour next target?We entered the market as a new company,with a new corporate identity, withGreek colors, and the following threeprinciples. First, credibility, with whichwe approached gas station owners andpresented a new concept of cooperation.Second is our low price policy andthird is the quality of our fuels.As far as our targets are concerned,during the next five years weexpect to reach 800 to 1,000 gas stationsand a two-digit percentage inthe local market.Recently you announced that Aegean acquiredthe Texaco installations in Skaramaga.What is the meaning of this move?With these installations Aegean has astrategic advantage, since it has moreprivate storage facilities that are connectedwith the refineries and thereare also extensive port facilities thatcan accommodate two tankers. Theseinstallations will help Aegean expandits targets in the local market in Attiki,southern Greece, and the islands, andalso in the bunkering market.It appears the Burgas–Alexandroupolispipeline will soon be under construction.How do you intend to take advantage ofthis development?We set up storage facilities in Alexandroupolisin 1999, because webelieve in the area and because weanticipated these pipeline developments.We have taken a number oftimely steps and we are preparing tohave a presence and an active participationin the developments that areconnected with the operation of theBurgas–Alexandroupolis pipeline.Ideas and visions need support from theright people. You have the idea, but its implementationneeds staff and personnel..It is true that a great share of success isdue to our partners, staff, and executivepersonnel. We view the challengetogether, we believe and share a vision,and we plan carefully and proceedin the implementation of ourstrategic steps.10 AEGEAN NEWS SPRING 2007

FLOATING SEPARATORNew Floating Separatorin OperationThe Hellenic Environmental Center, implementing its plans and carrying out its mission ofprotecting the sea environment with responsibility nationwide, acquired a new FloatingSeparator within its investment program framework.We are talking about thedouble-bottom, doublehulltanker ECOMAS-TER, whose conversion and outfittingwith the most contemporarymechanical and electronic equipmenthas been completed and has alreadybeen licensed by the Ministry of MercantileMarine, following a CommonMinisterial Decision of the Ministriesfor Environment, Physical Planningand Public Works; Culture; and MercantileMarine. The total cost exceeded15 million Euros and its capacity is100.000 m 3 , with a pumping capacityof up to 3,000 m 3 /hour for fuel of anyviscosity and a separating capacity ofup to 2,000 m 3 /hour.With this new Separator, which willbe the biggest Floating Separator inEurope, the Hellenic EnvironmentalCenter, being committed to environmentallysensitive issues, is promotingto an even higher level the efficiencyand quality of its services, not only byanticipating developments but also byanticipating the needs of the shippingenvironment and the strict demandsof contemporary International environmentallegislation.More ships will be served simultaneouslyand, concurrently, tankcleaning services for any type and sizeof tanker will be provided with warmwater and/or steam and, in addition,inert gas will be provided.Furthermore, the high pumping,separating and storing capacity of thefloating Separator becomes a significantadvantage in cases of extensivepollution, since it is well knownthat one of the biggest problems insuch serious cases is the storage andpumping of the oil residues to berecovered.In addition to these operationaladvantages, the floating Separatorcontains a fully equipped oil spillcombating station equipped with: Oil containment booms Skimming systems Oil sorbents and absorbents Oil dispersing and spraying equipmentapproved by W.S.L and Greekauthorities FendersMore ships will be served simultaneously and at the sametime tank cleaning services for any type and size of tankerwill be provided with warm water and/or steam. Inert gaswill be provided too.In general, the Hellenic EnvironmentalCenter, by this new acquisitionand addition to its contemporaryequipment, and in combination withits scientifically trained and responsiblework force, may be seen as a decisivering in the eternal cycle of natureand life, transforming, through therecycling process, the useless into theuseful, the harmful into the beneficial,the pollutant into an energy resource,and waste into a life cycle element.SPRING 2007 AEGEAN NEWS 11

ALEXANDROUPOLISAlexandroupolis—Energy Hub and StrategicAegean PresenceAfter 14 years of deliberations, the agreement for the construction of the oil pipelineBurgas-Alexandroupolis was signed in Athens on March 15, 2007.The PipelineThe signature of the long-delayedBurgas-Alexandroupolis oil pipelineagreement between Greece, Russiaand Bulgaria was hailed as a "historic"moment by the leaders of the threecountries, who attended the officialceremony held in Athens."An issue that remained outstandingfor 14 years has been resolved inthe best way for the benefit of all concerned,"Greek Prime Minister CostasKaramanlis said in statements duringa joint press conference with RussianPresident Vladimir Putin and BulgarianPrime Minister Sergei Stanishevafter the signature of the trilateralagreement.According to President Putin, thepipeline is one of the most importantprojects in Europe and the entireworld, while Prime Minister Stanishevspoke of a "new era in the energysector." All three leaders promisedthat construction would use the latest21st-century technology and fullyrespect the environment, both duringextraction and in transporting the oil."Environmental organizations willbe satisfied and we will meet all theirdemands. We will even change thepipeline's route, if necessary," Mr. Putinsaid, citing his country's extensiveexperience, especially in the region.European Union Energy CommissionerAndris Piebalgs welcomed thesigning of the Burgas-Alexandroupolispipeline agreement, noting thatconstruction of the project will reduce12 AEGEAN NEWS SPRING 2007

With the operation of the pipeline, the role of Greece isupgraded, as the country, through the hub of Alexandroupolis,is placed at the heart of the energy map of Southeast Europe,and its national energy security reinforced.the "increasing pressure" of maritimeoil transport through the Bosporusand the Dardanelles straits."In the oil sector, increasing internationalconcern is being expressedover the threat of maritime accidentsand the ensuing significant environmentaldamage caused by the resultingoil spills. Given the increasingdensity of maritime traffic in theenclosed Black Sea and additionalquantities of oil exported from theregion, it is of utmost importance togive a higher priority to the alternativeof transporting oil by pipelines,"Commissioner Piebalgs said.According to Piebalgs' press officein Brussels, the Burgas-Alexandroupolisoil pipeline is considered by theCommission as a Project of "pan-European Interest" in the INOGATEprogramme, which identifies strategicroutes for hydrocarbons.The Burgas-Alexandroupoli pipelinewill be used to transport Russianand Caspian oil from the BulgarianBlack Sea port of Burgas to the GreekAegean port of Alexandroupolis. Thepipeline will be an alternative route forRussian oil bypassing the Bosporus andthe Dardanelles. Its construction willbegin in 2008, and is estimated to becompleted by the beginning of 2011.The pipeline, with a diameter of 900mm (36 inch), will be 279 kilometerslong, and will transport 15-23 milliontons of oil per year during the first phase,as well as 35 million tons during the secondphase. The pipeline will have threeoil refilling stations, two of which will bein Bulgaria (the first at Neftochim, closeto Burgas) and one at Alexandroupolis.The project will also include reconstructionof Burgas and Alexandroupoliterminals, and will featrue oil tanks witha capacity of 600,000 tons in Burgas, andwith a capacity of 1,200,000 tons in Alexandroupolis.Thepipeline is expectedto cost up to 1 billion Euros.The pipeline will be constructedand owned by the International ProjectCompany, 51% of whose shares will begiven to the Burgas-AlexandroupolisPipeline Consortium, a joint ventureof Russian Transneft, Rosneft andGazprom Neft. The remaining 49%of shares will be distributed betweenBulgargaz and Terminal UniversalBurgas from Bulgaria, and Baplineconsortium, a joint venture of HellenicPetroleum and Thraki from Greece.SPRING 2007 AEGEAN NEWS 13

ALEXANDROUPOLISRevenues for Greece and Bulgariaare estimated at 35 million Euros annuallyfor each country.The Burgas-Alexandroupolis pipelinewill be the first pipeline constructedin Europe in the last 40 years.With the operation of the pipeline,the role of Greece is upgraded, as thecountry, through the hub of Alexandroupolis,is placed at the heart of theenergy map of Southeast Europe, andits national energy security reinforced.AlexandroupolisAlexandroupolis, the capital of Evros,holds a leading position in thegeographical area of East Macedoniaand Thrace, as it constitutes the basicconnecting point between EuropeanCommunity countries and the Mediterraneanand Black Sea countries. Ithas been distinguished as the majorinternal border hub of the EuropeanUnion. The city of Alexandroupolis haswitnessed a surge in financial development.The harbour and the rail stationare important transit trade centers.There are four schools of the DemokritianUniversity of Thrace in operationat Alexandroupolis, the mostsignificant of which is the School ofMedicine, housed in the biggest andmost modern hospital in the Balkans.According to Northern Evros residents,the construction of the Burgas-Alexandroupolis pipeline will havepositive effects in their region, and theyexpress their belief that the prefecturewill develop, as young people will havethe chance to find jobs and stay inthe place where they were born. It isestimated that during the project’s constructionperiod, 2008-2010 and untilits completion, hundreds of jobs will result,while during its operation 250-300new work positions will be created.There are, of course, those whoexpress their reservations regardingpossible environmental consequencesfrom the pipeline, but the majority ofthe inhabitants are convinced the areaneeds such a big project and firmlybelieve that the authorities will keeptheir promises to safeguard the environmentalbalance of the region.Aegean and its Presence in AlexandroupolisAegean started its operations inNorthern Greece in 1999 when itbought Evroil’s installations in Alexandroupolis,and then started totake its first steps in the retail market.It modernized the installations andbegan building an image completelydifferent from the image of its competitorsin the fuel trading sector. Thedifference from the other companieswas soon very distinct.Aegean became a people-centredcompany with respect to the customerand with a high level of professionalism.In its efforts to keep a balance inthe market, Aegean is dedicated tothree basic principles: High quality of services and products Competitive prices Respect to the customer – consumerand to the environmentEnvironmental management is oneof the company’s basic commitmentsand Aegean attained an ISO 9001:2000Quality Management System and anISO 14001:2004 New EnvironmentalManagement System. Furthermore,it has implemented a program in itsinstallations and stations to contributeto the reduction of negative environmentalconsequences. Within thisspecific framework it has installed aThe prefecture of Evros will be developed, as young people will have the chance to findjobs and stay in the place where they were born. It is estimated that during the project’sconstruction period, 2008-2010 and until its full completion, hundreds of jobs will result,while during its operation 250-300 new work positions will be created.14 AEGEAN NEWS SPRING 2007

VRU (Vapour Recovery Unit) in thefacilities of its Alexandroupolis operations.Furthermore, the company hasinstalled two state-of-the-art six andeight inch pipelines for loading andunloading fuels from tankers with the“pig” system, replacing the old ones, inorder to avoid the possibility of an accidentand uses sea water for the avoidanceof oil residues. It has also installedand operates a highly advanced FACETwaste oil separator, where a first stageprocessing-separation of liquid wastefrom the Installation takes place. This,combined with the regular monthlychemical inspection-analysis of liquidwaste from the oil separator, monitorsand protects the natural environmentfrom possible pollution.At its Maistros coast installations,Aegean is operating a chemical lab,with ultra modern fuel quality controlequipment, to ensure the quality oftraded fuels.The Alexandroupolis installationsalso include a) a super moderntank-truck Bottom Loading facilityAegean, in its installations at Maistros, has installed achemical lab with ultra modern fuel quality control equipmentto ensure the quality of traded liquid fuel.connected to automatic programmingand loading software for distributingfuel to Northern Greece gas stations,and b) a loading train wagon facilityto allow fuel transportation to domesticand international destinations.With a deep commitment and greatsense of responsibility to protect theland and marine environment, Aegeancooperates with the Hellenic EnvironmentalCenter (HEC). Aegean hasat HEC’s disposal a reservoir for thestorage of oil waste from ships and oilinstallations in Northern Greece. Thewaste is transferred to HEC’s floatingseparator, where through a recyclingprocedure, the useless is transformedinto useful and the pollutant into anenergy source, with the assistance ofIntergeo, a global industrial environmentalconsulting company, whichperforms continuous tests in the installationarea and examines and monitorsunderground water in the region.Respect to the environment andto the customer, personal relationswith its clients, and its reliability haveplaced Aegean at the top of consumerpreference. This is the main reasonfor Aegean’s fast development in thegreater area of Northern Greece andin Thrace as well, where it maintainsfirst place in liquid fuel trading.It is under these favorable conditionsthat consumers are expected to lead thecompany to even higher levels.And, in light of the agreement forthe construction of the Burgas-Alexandroupolispipeline, Aegean is onceagain ideally positioned, this time atthe epicentre of the energy market ofGreece and Southeast Europe.SPRING 2007 AEGEAN NEWS 15

BUNKERINGImpacts of Lubricant Oil Spillson the Marine EnvironmentLubricant oils are regarded as chemical products and the marine lubricants industry isresponsible for approximately 1.0 to 1.5 % of the total global “chemical” productionby weight. Manufacture and disposal of such a volume of material represents anenvironmental risk and challenge.DIMITRIS BAKINEZOS | LUBRICANTS MANAGERAlarge proportion of marinelubricant production is dispersedinto the environmenteither in the form of spills, leaks oremissions of partially combusted oilderivatives in engine exhausts.Lubricant oil spills have widerangingimpacts on the marine environment,polluting sea waters andharming aquatic life. Lubricant oilspills also have serious impacts on theecosystem.The consequences of an accidentvary according to the season. Hydrocarbonsfrom lubricant oil spillsare absorbed by marine organismsin their food or directly in their bodies.The toxic compounds in lubeoils can accumulate in organismshigher up the marine food chainsand also may sink into sediments onthe seabed.Lubricant oils at sea can harmthe tissues of fish and at the sametime disturb the food chains thatfish depend on. Lube oil is a serioushazard when it accumulates in thefish’s respiratory organs, leading tosuffocation.Spills during the spring season affectthe functioning of entire ecosystemsand natural habitats by disruptingthe breeding process. The dangersA key performance measureof lubricants affecting theenvironment is the lifetimeof the lubricant itself.facing oiled birds include loss ofability to fly, hypothermia, decompositionof red blood shells, respiratoryand digestive organ disorders.Oil contamination can also affectmarine plants. If the vegetation alongthe shoreline is harmed, it can leadto the disappearance of habitats formany species.It may take years to recover fromsuch pollution, so the effects can belong term. The consequences of alubricant oil spill vary. The speed atwhich marine and coastal ecosystemscan recover from such a spill varyfrom a few months to several years,depending on factors such as quantityof pollutant, waves and tides, and currentconditions.Spills of bio-based lubricants arehandled in the same manner as spillsof petroleum based lubricants.A key performance measure oflubricants affecting the environmentis the lifetime of the lubricant itself.If, for example, a lubricant can bemade to last twice as long, only halfas much lubricant will be requiredwith corresponding reductions in theenergy and material requirements forlube oil manufacture. That directlyaffects the environmental impact oflubricant disposal.Continuous developments in lubricanttechnology is already leading toan overall reduction in volume demand,through use of high quality/high stability lubes, resulting in extendeddrain intervals.Spills during the spring season affect the functioning of entire ecosystems and naturalhabitats by disrupting the breeding process.16 AEGEAN NEWS SPRING 2007

BUNKERINGAegean’s BunkeringStation NetworkToday, bunkering is considered one of the cornerstones of the shipping industry, in whichgrowth is exptected in the near future. Aegean has developed into a significant and constantlyexpanding player, with bunkering stations in key destinations of the globe.PiraeusAt the bunkering station in Piraeus,refuelling is carried out by six Aegeanownedships with capacities of between1,000 and 4,000 MT. Ships can alsobe supplied while alongside births, bycompany-owned tank trucks.More than 3,000,000 MT of fuel aredelivered annually to vessels callingat Piraeus, 600,000 of which Aegeandelivers—enjoying an enviable 20%market share. The company suppliedmore than 1,700 vessels in 2006.GibraltarIn 2006, the total supplies in Gibraltarexceeded the 4 million ton mark, andcontinued growth is expected. Thisreflects a growth of over 7% for theperiod 2003 to 2006.Leading the way in this continuedgrowth is Aegean’s operation in Gibraltar.The growth in the annual supplyfigures has consistently been considerablyabove the market growth. Thegrowth of Aegean supplies in Gibraltarfrom 2003 to 2006 has been 85.60%.This above-average growth in themarket is a continuing trend, with thefirst two months in 2007 showing anincrease of 78.08% by Aegean fromthe same period in 2006, while theGibraltar market has grown 8.50%during the same period.Khor-Fakkan/ FujairahAegean began operations in Khor-Fakkanin 2000 and since the beginning of2007 secured the required permit fordelivering bunkers in Fujairah as well.Khor-Fakkan and Fujairah are two ofthe main bunkering ports in the Gulfand Aegean is well-positioned to continueincreasing its volume considerably.According to local authorities, eachyear more than 11 million tons of bunkersare delivered to the vessels thatcall in the area.JamaicaIn March 2005, Aegean launched itsbunkering operations on the CaribbeanIsland of Jamaica. The new location is abeachhead for Aegean in the Americasand a further step in the company’s globalexpansion efforts. The company began itsoperations in the island capital of Kingstonand recently added a second locationon the island at Ocho Rios. Kingston isa bunkers only calls location and OchoRios supplies cruise ships and commercialships calling at the Caribbean port.SingaporeSingapore is the world’s leading bunkeringport. In 2005, the port supplied a recordtotal of 28 million tons of bunkers.Aegean commenced its Asian presencein July 2005 with the opening of itsoffice in the heart of the business districtin Singapore. The office is staffedwith experienced personnel and isready to respond to all fuel requirements,not only in the port of Singaporebut also at any other ports in the Asianand Oceanic regions. Aegean is the firstcompany to be granted a bunkers supplierlicense in the port of Singaporeafter the accreditation scheme was implementedby the Maritime Port Authoritiesof Singapore in 2003.SPRING 2007 AEGEAN NEWS 17

STATIONS OF THE MONTHYiannis Fotiadis 16th Km Thessaloniki-Polygyros"Someone to Listen"The gas station of Yiannis Fotiadis is new. Just two years old. The gas station owner himself,however, has been in the profession for some time.Ihave been in the fuel sector for17 years. I started working in myfather in law’s business, who wastrading heating fuel. In 1997 I decidedto start something of my own and I setup a gas station in Thermi, which isstill in operation today.How did you decide to set up this gasstation?Up to 2004, I only had the other gasstation in Thermi, in the central part ofthe village. When I found this piece ofland here, I decided to build a secondone. The new gas station operated fromthe beginning as an Aegean gas station.How did the cooperation with Aegeancome about?Aegean has for some time now becomea powerful name in our sector. I knewof the way it operated from other colleagues,and from customers who hadhappened to use its services at somepoint. On the other hand, the cooperationI had with the previous fueltrading compnay was full of problems.There are still issues between us, pendingin court. This is the main reasonwhy I decided to make a change. WhenI began the construction of this gas stationI had already made up my mind.How did you contact Aegean?I had known Antonis Hatzis for years.Following my decision to pursuesomething better I asked him to getme in touch with Iakovos Melissanidis.That meeting confirmed myinitial beliefs.I started alone, without any backing, andfor years I felt the lack of support during difficult times.Now I have someone who listens.What was so decisive in that meeting?You know, sometimes it is in the simplestof things that serious issues arejudged positively. Prices had been aserious issue in my previous cooperation.But what was most important tome was something which is by nowcommonplace and has been said overand over again. There was no communication.I started alone in this businesswithout any backing at all. In myprevious cooperation I remained unbearablyalone in whatever problemsI faced. No matter what my complaintwas, there was no one to listen.My first contact with Aegean wasindicative of the different climateprevalent in the company. IakovosMelissanidis came himself to see me,we had a glass of wine and it was allvery clear. It was as if we had knowneach other for 100 years.As it was natural, the old gas stationin Thermi put on the Aegean colors atthe same time as the new one.Two years have gone by from thebeginning of the cooperation, andexperience has confirmed the initialimpressions."I am more than happy with mydecision. My customers are also veryhappy with the quality of fuels and ofcourse with our very competitive prices.We have steady customers but thereare also some passers-by who stop tofill up when they see the Aegean logo.My relationship with the people ofAegean is exactly the way I wanted it.Iakovos has stood by me like afriend. During difficult times I hadthe help I needed, not just moral supportbut financial backing as well.I started alone, without any backing,and for years I felt the lack ofsupport during difficult times. Now Ihave someone who listens."So simple, so incredibly important!18 AEGEAN NEWS SPRING 2007

Fotis Staikos—129 Herakliou Avenue, PerissosAs the train moves towards Kiffisia, on a rather grey day, one’s eyes all of a sudden fall upon ahuge daisy, there, almost next to the train’s tracks. When did it sprout?Mr Fotis Staikos, owner of thenew gas station, next to thetrain tracks, in Perissos says,"on May 13 it will be a year I startedthe operation here, with the Aegeancolors right from the beginning."It was not easy to locate Mr Staikosand have a conversation with him.Always on the road, trying to take careof a million things, he is responsible orseven other gas stations. Four of thestations are located in Athens. The gasstation in Perissos is the most recent. Inaddition to the gas stations, Mr. Staikosowns four tank trucks, three of whichhe has at the disposal of Aegean.How many years have you been in thisprofession Mr. Staikos?Oh, I am many years in this business.Thirty years, out of which 25 havingto do with gas stations.Is this gas station on Heakliou Avenuea completely new business or was it inoperation before?There was a gas station here that operatedwith the logo of another company. Ithas been carrying the Aegean logo sinceI took over approximately a year ago.What about your other gas stations?All my other gas stations have beenwith Aegean for the past two years.Something which I should have donemuch earlier.What do you mean? Did you face problemsin your previous cooperation?His answer is a bit different than expected.Mr. Staikos is a polite man buthis speech is austere and unadorned.What influenced my decision was the fact that Aegean was anew, rapidly developing company. This, in my opinion, couldonly be good."No, I did not have any specificproblems. My decision to cooperatewith Aegean had, to a large extent,to do with my relationship with Mr.Iakovos Melissanidis. We talked andwe decided that I would continue myprofessional activities in this sectorwith Aegean. What also influenced mydecision was the fact that Aegean was anew, rapidly developing company. This,in my opinion, could only be good."“Old brains” is a common sayingwhen commenting on the ideas andviews of older people. “Old brains,huge experience” we shall add. Experienceto recognize the possibilities ofa new, dynamic scheme.Was there an evident change in yourcustomers’ reactions when you adoptedthe Aegean logo?Yes, there was a distinct, positivechange. Consumption increased dramaticallyin all my gas stations.Would you like to comment on your cooperationwith Aegean so far?Consistent with the simplicity characterizinghis speech “What can I tellyou? The best of words.”SPRING 2007 AEGEAN NEWS 19

RETAILRO/RO Tankers—Interview with Nikos Peramatzis, Gas Station Network ManagerΑegean has repeatedly announced theorder of six ships for the supply of fuels tothe islands, and we know that the buildingof these ships is progressing fast. Tell usabout the reasoning behind this move.Greece, and consequently the liquidfuel market, includes a large part of theisland areas, in which gas stations operateto serve local needs. In these areasthe supply of fuel by sea is performedeither by passenger vessels dedicatedto serve these islands, or with oldertype (single hull) of vessel with an antiquatedtechnology. In both cases thereare great difficulties in planning and,as a result, in promptly supplying thegas stations. At the same time thereis danger involved as far as safety andthe protection of the environment areconcerned. Our company, with all thesefactors in mind, decided to invest inthe purchase of six, modern, speciallyconstructed ships to serve the island regions.These ships will have the capacityto transport liquid fuels with safetyas contemporary double hull, doublebottom tankers, and at the same timeto carry four tank trucks which willtransport fuel from the ships to the gasstations and to industrial clients (factories,quarries, small industries).In reality they are floating liquid fuel installations, able tofully serve the needs of the islands and the coastal areas ofthe country, in the most contemporary and safe manner.Give us some details on the ships’ specialfeatures.These ships are RO/RO-Tankers thathave the ability to carry six differentoil products with a total capacity of2,640,000 liters. They are 89.95 metersin length, 14 meters in width, havea maximum draught of 4.50 meters,are able to travel in all weather conditionsand are outfitted with the mostadvanced technology. Each ship willcarry four tank trucks, each with a30,000 liter capacity, and the most advancedloading system for the trucksin the ship (from the ship’s bottom.The tankers are being built in a Europeanshipyard with the supervisionof the Frencj Register Bureau Veritas(BV) and the combination of this ship,RO/RO (car ferry) with an open seatanker, is considered revolutionary inthe liquid fuel transportation sector.In reality they are floating liquidfuel installations, with a capacity tofully serve the needs of the islands andthe coastal areas of the country, in themost contemporary and safe manner.From your description we conclude thatthe expenditure for these ships must bevery high. What led the company to proceedwith such an ambitious investment?Aegean became active in the domesticmarket in 2000, with very high, optimisticgoals, obtaining a trading license,without having a gas station network.It really started from the groundup. However, in the very early stagesof its development, and recognizingthe public’s preference, Aegean madea promise: ‘Aegean: soon everywhere.”And this was a commitment. In a veryshort period of time we developed agas station network throughout themainland. Therefore, the developmentof a network in the islands is part of thefirst stage of our initial goal’s implementation.We have already estab-20 AEGEAN NEWS SPRING 2007

lished a network of approximately 500gas stations from the border of Thracedown to Southern Peloponnese. Oursales through the gas stations networkplace us in the fourth place among allcompanies active in Greece, and this issomething that makes us very proud.We believe, of course, that we stillhave a lot to do, an important step being,during this stage, our expansion tothe islands. It is not by chance we arebuilding six RO/RO-Tankers. We areplanning to dedicate two of them toCrete, two to the Aegean islands, andthe remainder two to the Ionian islands.In this way we firmly believe thatwe will serve these regions and theirneeds in the best way possible, with themost perfect equipment. Given our human-centered policy, which means wesupport our station owner’s daily effortsto the fullest, we will soon establish arepresentative network of gas stations.The combination of this ship, RO/RO (car ferry) with anopen sea tanker, is considered revolutionary in the liquidfuel transportation sector.So, the main reason for this particularinvestment is your initial commitment of"Aegean, soon everywhere"?I would have to say yes, since our initialcommitment expresses perfectly Aegean’sstrategy. On the practical side weare among the very few companies whopersist on investing in this sector, aimingto expand further. I should remind youthat recently Aegean bought the Chevron-Texacoinstallations in Aspropygos,which are considered to be among thebest in Greece in relation to their locationand size. With this strategy it isonly natural that we aim to expand anddevelop in Crete, the Aegean, and theIonian, as we know that the percentagein these areas is greater than the 10% oftotal fuels being distributed in Greece.We should also not forget that thetourism industry is very strong and developingespecially fast in these regionsand therefore there is real interest for usto be present there. A fuel trading companylike Aegean, with such a rapid developmentand gaining the strong preferenceof the consumer, has no otherchoice but have a nationwide presence,so that it can serve its customers’ needs“everywhere.” It is a well-known “secret”that there are difficulties in theseregions regarding their proper fuel supplyand we believe that our initiative,with the means we have at our disposal,will secure solutions and a competitiveadvantage to our future associates.Are you 100% optimistic about the outcomeof this venture?I must admit this undertaking representsa great challenge. But given Aegean’scourse up to now, we are optimisticthat our company will once again implementits ambitious plans, this timein the islands, and make its presencenoticeable. We are convinced that thepublic, who trusted us in the rest of thecountry when our name was hardlyknown, will respond in a similar, if notfriendlier, way to our entrance to Creteand the Aegean and Ionina islands. Weknow well by now that the quality of theproducts and services we provide, combinedwith the competitive prices andthe transparency and reliability in theimplementation of our policy, is thebest environment for cooperation andthe guarantee for even better resultsand higher objectives.SPRING 2007 AEGEAN NEWS 21

RETAIL2006Aegean’s Sales Positive Once AgainKONSTANTINOS POURSANIDIS | RETAIL MARKET MANAGERAccording to data publishedby the Ministry of Development,there was an increaseof 1.6% in total fuel consumption inthe local 2006 fuel market.Aegean once again registered anincrease in its sales much higherthan that of the market, and whichamounted to 16.9%.In Table 1 we present the increase/decrease percentage of Aegean’s salesby product and by product group,compared with the correspondingincrease/decrease percentage of salesof the total domestic market.We note that, except for the L.R.P.,sales whose consumption is declining,Aegean is registering significantincreases and its sales are much higherthan the total market increases.This positive outcome places Aegeanfirmly in sixth place in total fuels, witha 6.9% market share, among the 19 fueltrading companies of this sector andin fourth place in gasoline sales, with a7.2% market share (Table 2).The commitment of the company’s humancapital to further expand the company’sactivities allows us to be very optimisticand set our goals even higher.Percentage Increase/Decrease of Domastic Market Sales Year 2006 VS 2005PRODUCT MARKET TOTAL AEGEANSUPER L.R.P. -20.95%-13.63%UNLEADED PETROL U95 6.63% TOTAL GASOLINΕ 1.72% 22.00% TOTAL GASOLINΕ 16.55%UNLEADED PETROL U100 -8.30% 7.08%DIESEL ENGINE 6.98%29.04%TOTAL FUEL 1.46%DIESEL HEATING -1.98% 11.58%TOTAL FUEL 18.59%TOTAL FUEL 1.56% 16.89%TABLE IREMARKS: All quantities are expressed in metric tons22 AEGEAN NEWS SPRING 2007Gasoline Market Shares Bases on Minitry of Development Results Year 2006COMPANY UNLEADED PERCENTAGE UNLEADED PERCENTAGE SUPER PERCENTAGE TOTAL PERCENTAGE2006 95 % 100 % L.R.P. % GASOLINE %1. SHELL 711 496 21.4 39 250 14.3 56 209 13.1 806 955 20.02. BP 593 044 17.8 107 100 39.1 82 567 19.3 782 711 19.43. EKO 496 619 14.9 41 342 15.1 68 781 16.0 606 742 15.14. AEGEAN 245 428 7.4 15 118 5.5 27 566 6.4 288 112 7.25. AVIN 214 595 6.5 13 302 4.9 31 429 7.3 259 326 6.46. JET OIL 185 664 5.6 11 095 4.1 26 799 6.2 223 558 5.67. REVOIL 162 565 4.9 7 601 2.8 24 987 5.8 195 153 4.88. ELIN 146 880 4.4 10 428 3.8 22 085 5.1 179 393 4.59. ETEKA 141 608 4.3 8 311 3.0 15 881 3.7 165 800 4.110. SILK OIL 103 994 3.1 3 412 1.2 24 063 5.6 131 469 3.311. CYCLON 71 148 2.1 4 828 1.8 8 848 2.1 84 824 2.112. EL PETROL 68 293 2.1 3 820 1.4 8 989 2.1 81 102 2.013. DRACOIL 53 009 1.6 2 020 0.7 8 174 1.9 63 203 1.614. KAOIL 40 777 1.2 2 487 0.9 7 262 1.7 50 526 1.315. KMOIL 27 608 0.8 1 133 0.4 5 422 1.3 34 163 0.816. SUN OIL 27 212 0.8 1 089 0.4 4 868 1.1 33 169 0.817. ARGO 18 169 0.5 958 0.3 2 763 0.6 21 890 0.518. MED OIL 11 283 0.3 339 0.1 1 792 0.4 13 414 0.319. BITOUMINA 3 857 0.1 202 0.1 362 0.1 4 421 0.1TOTAL 3 323 249 100.0 273 835 100.0 428 847 100.0 4 025 931 100.0TABLE IΙREMARKS: All quantities are expressed in metric tons

SHIPPINGNewbuildingsAegean is now a few steps closer to the delivery of MT “MILOS,” the first tanker underconstruction in Fujian Southeast Shipyard in China.The vessel is currently in the last stages of the outfitting phase, and will thenbegin sea trials. Upon successful completion, M/T “Milos” will be officiallydelivered to Aegean Bunkering Services Inc.MT “Milos,” which will fly the Singapore flag, complies with all rules and regulationsfor ocean-going navigation.The Builder, Aegean’s Supervision Team, and the vessel’s Classification Societyare working together at this final stage of construction to ensure implementationof Aegean’s policy in providing quality tonnage and first class services in the bunkeringsector. It is in this sector Aegean is aiming to gain competitive advantage byShipyardsFujian Southeast 15 x 4000 dwtProduct Oil Tankers(+4 Options)Qingdao Hyundai 12 x 6200 dwtProduct Oil Tankers(+4 Options)Severnav 2 x 2400dwtRoRo Tankers(+4 Options)SPRING 2007 AEGEAN NEWS 23

SHIPPINGThis new approachto fuel trade and transport,based on a pioneeringdesign, fulfils Aegean’svision to create newstandards of delivering fuelto petrol stations, henceoffering competitive pricesand better service to thefinal consumer.providing first class services to its clients.The second vessel, MT “Serifos,” and the third vesse,l MT “Kithnos,” are alsoprogressing well.These vessels will then take their turn to complete outfitting. Immediately afterthe launching, the fourth and fifth vessels will be erected on the slipway. There isquite a number of blocks already assembled in the builder’s production line forthe next vessels as the total order of Product Tankers made by Aegean to FujianSouthEast Shipyard is 15.A little further to the north, at Qingdao Hyundai Shipyard, the construction ofthe first 6200dwt Product Tanker has moved to the next stage. The erection of thevessel started at the end of March 2007 and the first blocks of the vessel were laidon the slipway for further assembly. Meanwhile, the inauguration of construction,marked by the steel cutting of the second vessel, was held on the same day. Thebuilder hosted a ceremony celebrating these events, with representatives from Aegeanand from Lloyd’s Register, the Classification Society under which the vesselswill be Classed.There are, in total, sixteen 6200dwt Product Tankers to be built by QingdaoHyundai. Designed by Koreans, the tankers fulfill all the latest requirements andregulations for safe ocean-going navigation. At the same time, they will be sup-24 AEGEAN NEWS SPRING 2007

plied with high technology equipment for the bunkering trade.On the European front of Aegean’s New Building program, the construction ofthe first two Ro-Ro Tankers in Severnav Shipyard is also progressing at a fast pace.There are six Ro-Ro Tankers on order with the Romanian builder; the first twovessels have already been erected on the builder’s slipway. The first vessel will belaunched within the next month and is scheduled for delivery toward the end ofsummer, while the second vessel will follow shortly thereafter.This new approach to fuel trade and transport, based on a pioneering design,fulfils Aegean’s vision to create new standards of delivering fuel to petrol stations,hence offering competitive prices and better service to the final consumer.Persistent to its commitment, Aegean’s total order book consists of 37 vessels.It is worth mentioning that 31 of the vessels on order are dedicated bunkeringtankers, making Aegean the only bunkering operator globally with such an extensiveorder book. This order allows Aegean, providing bunkering services inseveral locations around the globe, to fulfill its long-term strategic target of increasingits market share in the bunkering sector by combining an expansion ofactivities to current bunkering stations, but also to new locations through its tonnagesupplement advantage after the implementation of new regulations forbunkering tankers.Persistent to itscommitment, Aegean’stotal order book consistsof 37 vessels. It is worthmentioning that 31 ofthe vessels on order arededicated bunkeringtankers, making Aegeanthe only bunkering operatorglobally with such anextensive order book.SPRING 2007 AEGEAN NEWS 25

EXPLORATIONSONARSONAR (SOund Navigation And Ranging) is a technique that uses sound propagation underwater (primarily) to navigate, communicate or to detect other vessels. There are two kindsof sonar — active and passive.The study of underwater sound is sometimes known ashydroacoustics.The use of sound, for communicationand object detection,by humans, is first recorded byLeonardo Da Vinci in 1490. A tube insertedinto the water was said to be usedto detect vessels by placing an ear to thetube. In the 19th century an underwaterbell was used as an ancillary to lighthousesto provide warning of hazards.The use of sound to 'echo locate'underwater in the same way as batsuse sound for aerial navigation seemsto have been prompted by the Titanicdisaster of 1912. The world's first patentfor an underwater echo ranging devicewas filed at the British Patent Office byEnglish meteorologist Lewis Richardson,one month after the sinking of theTitanic, and a German physicist AlexanderBehm obtained a patent for an echosounder in 1913. Canadian ReginaldFessenden built an experimental systemin 1914 which could detect an iceberg attwo miles range, though it was unable tosay which direction the berg was in.During World War I, with the needto detect submarines, more research intothe use of sound was undertaken. TheBritish made early use of underwaterThe world's first patent for an underwater echo ranging devicewas filed at the British Patent Office by English meteorologistLewis Richardson—one month after the sinking of the Titanic.hydrophones, while the French physicistPaul Langevin, working with a Russianémigré electrical engineer, ConstantinChilowski, worked on the developmentof active sound devices for detectingsubmarines in 1915 and this work influencedthe future of detection designs.In 1916, under the British Boardof Invention and Research, Canadianphysicist Robert Boyle took on the activesonar project, producing a prototypefor testing in mid-1917. This work,for the Anti-Submarine Division, wasundertaken in utmost secrecy, and usedquartz piezoelectric crystals to producethe world's first practical underwateractive sound detection apparatus.By 1918, both the U.S and Britainhad built active systems, though theBritish were well in advance of the US.By the outbreak of World War II, theRoyal Navy had five sets for differentsurface ship classes, and others for submarines,incorporated into a completeanti-submarine attack system. At thestart of WWII British sonar technologywas transferred to the US. Research onsonar and underwater sound was expandedgreatly, particularly in the US.Many new types of military sonar weredeveloped. These included sonobuoys,dipping/dunking sonar and mine detectionsonar. This work formed the basisfor post war developments related tocountering the nuclear submarine.Work on sonar had also been carriedout in many other counties, notably inGermany. This included countermeasures.At the end of WWII this Germanwork was assimilated by Britain and theUS. Sonars have continued to be developedby many countries, including Russia,for both military and civil uses. Inrecent years the major military developmenthas been the increasing interest inlow freqency active systems.26 AEGEAN NEWS SPRING 2007

MARITIME TRADITIONMaritime History of the Greeks-Prehistoric PeriodThe Greeks basically started shipping in pre-historic times, with the emergence anddominance of the fleet of Crete and to a smaller degree with the establishment of similarfleets of some cities of Continental Greece.Before the Cretans, the Aegeanwas dominated by the Karas, theHelegas and the Phoenicians,who engaged in maritime commerceand piracy. The Greeks, because of thesepowerful fleets and because of attacksby the pirates, withdrew inland to moredefensible positions in the mountains.The Cretans were the first who succeededin building up a considerablenavy and, when they did. conqueredthe Mediterranean. Minos, the Kingof Crete, managed to push the Karasout of the Cyclades and clean-up theAegean from the pirates; the ships ofCrete started to engage in maritimecommerce and with the passage oftime would sail to all the ports of thethen-known Mediterranean.The decline of Crete as a maritimepower came about through violent happenings.There were very destructivefires and violence as a result of the invasionof the Ahaiss. This was around 1450BC, at a time when the Cretan fleet hadweakened or was far from the island.Thus, we come to the second phaseof the development of the pre-historicGreek fleet, after the domination ofthe Cretans, with the emergence ofmariners from the ports of continentalGreece. It is difficult to know the factsof that period with any large degree ofaccuracy because mythology becameintertwined with historical events.The advance against Troy, the biggestmaritime operation of the pre-historicHesiod talks about theseamanship of people, thatpeople learn by necessity,for when their land is notfertile and does not produce,they take to the sea andlearn the hard way.period, gives us an idea of the size of thefleets and consequently the power anddomination of the cities of that period.Mycenae was then the biggest maritimepower and this is why Agamemnonwas the leader of the expedition. Mycenaecontributed 300 ships in a totalof 1,186 vessels that sailed against Troy.The islands contributed 174 ships, 80 ofwhich were from Crete.Hesiod talks about the seamanship ofpeople, that people learn by necessity, forwhen their land is not fertile and does notproduce, they take to the sea and learn thehard way. Hesiod also gives some soundadvice. For a prudent merchant and shipowner,Hesiod says, it is unforgivable toload on his ship all his fortune, because inthe case of an accident, he may be totallydestroyed. He also suggests that largervessels, not small ones, should be used forthe carriage of cargoes.During the 8th century BC, themost suitable periods for sailingwere the spring and the summer. Themariners of the day, before the rainscame, "and before the new wine wasopened," would stop their voyagesand would take their ships out of thewater. The boats would stay on shoreduring all the autumn and the winter.The ships, of course, were not usedjust for cargoes but also for adventurousvoyages to discover new places orfor expeditions of war and conquest.In Homer's time, they were equippedwith 20 oars with a crew of 50, or with50 oars with a crew of 120. Ship construction,according to Homer, wasquite advanced. The boats were paintedon the outside, both for preservationand for decorative purposes, with "miltos,"equivalent to today's red lead orprimer, and they were either coveredwith red or blue paint or tar.SPRING 2007 AEGEAN NEWS 27

ROOTS“Wine Delightsa Man’s Heart”-PART C’The Romans loved wine and became involved in viniculture despite the fact that they did nothave contact with the worship of Dionysos and wine before the 8th century B.C.Famous wines of the time were Falernius of Monte Casino and the wines of the southern Alpsregion. Gradually the Romans improved their vine cultivation and wine making techniques,displacing a declining Greece and becoming dominant in the wine market.In many cases it was theclergy that contributedto the preservation of thewinemaking traditionFollowing the collapse of Rome,the migration of peoples, andthe entrance of nomadic tribesinto Europe and the Mediterranean,viniculture was sparse and in someregions was abandoned for centuries.In many cases it was the clergy thatcontributed to the preservation of thewinemaking tradition in the formerRoman occupied regions, such asFrance, Spain and the Rhine regionin Germany. Even in our day, somefamous French vineyards belong tomonasteries.The role of the clergy was also verysignificant during the Byzantine period.Large cultivatable areas would becomechurch and monastery propertyand monks had the opportunity to setup large and contemporary--for theirtime-- wine production units and toimprove production techniques andwine quality. One of the things thatchanged was the habit of mixing winewith water. Wine was made throughoutthe Byzantine dominion, but themost famous wines were the ones ofthe regions that had been famous inancient Greece.The period of the Turkish occupationdid not restrict Greek vinicultureto any significant degree. At the sametime, in the West, the art of winemakingdeveloped so greatly that it ledto today’s superior products. Fromthe 13th century and on, viniculturewas introduced to the Iberian peninsulaand by the 16th century it wasan activity widely practiced in Spainand France. During that period manytechnical innovations were introduced,such as the use of the glassbottle and corks, and the productionof champagne, the invention of whichis attributed to the French Benedictinemonk Dom Perignon.With the exploration of the greatsea routes by the Spanish and Portugueseexplorers, new horizonsopened. Commerce contributed tothe development of winemaking, andviniculture was introduced to SouthAfrica, Australia, and the New World.Greek viniculture was essentiallydestroyed following the 1821 revolution,but after that period cultivatedareas were not only restored but theyincreased. In most regions, but mainlyin the Peloponnese, vines were plantednot for wine making but for the productionof raisins. Corinthian currentsbecame the main export product andpillar of the national economy of thenewly established state, with upwardexport trends continuing up to the19th century. During the decades thatfollowed viniculture developed, but bythe middle of the 20th century a declineoccurred because of a phylloxeraepidemic that struck Macedonia, butalso because of turbulent historical coincidences.Nevertheless, it was duringthe post revolution period that thefoundations of Greek wine making andof controlled and high quality wineproduction were established.28 AEGEAN NEWS SPRING 2007

HISTORY OF THE AUTOMOBILEThe Development of TechnologyThe first American automobiles with gasoline-powered internal engines were supposedlydesigned in 1877 by George Baldwin Selden of Rochester New York, who applied for a patentfor the automobile in 1879.Selden did not build any cars until1905, when he sued the FordMotor Company for infringingon his patent. His case against Fordwent to the Supreme Court, whichruled that Ford and everyone elsewas free to build automobiles withoutpaying royalties to Selden, sinceautomobile technology had improvedsince Selden’s patent and no one wasbuilding those antiquated designs.Through the period from 1900 tothe mid 1920s the development ofautomotive technology was rapid,partly due to the competition amongthe hundreds of small manufacturersto gain global attention.Important developments duringthis period include electric ignitionand the electric self-starter (by CharlesKettering for the Cadillac Motor Companyin 1910-11), independent suspension,and four-wheel brakes.By the 1930s most of the technologyused in automobiles had beeninvented, although it was very oftenre-invented again at later dates andcredited to someone else. For example,front-wheel drive was re-introducedby Andre Citroen with the launch ofthe Traction Avant in 1934, althoughit had appeared several years earlier inroad cars made by Alvis and Cord, andin racing cars by Miller.After 1930 the number of automobilemanufacturers declined sharplyas the auto industry consolidated andmatured. From 1960 and on the numberof manufacturers remained almostFrom 1900 to the mid 1920s the development ofautomotive technology was rapidconstant and innovation slowed.In most cases ‘new’ automobiletechnology was a refinement on earlierdevelopments, although sometimesthese refinements were so extensivethat their original form was almostunrecognizable. A mini exemption tothis was electronic engine management,which started to be widely usedin the 1960s, when electronic partsbecame cheap enough to allow formass production. These electronicsystems, developed by Bosch, haveenabled automobiles to drastically reduceexhaust emissions, increasing atthe same time efficiency and power.Model VarietySince all cars have been mass producedfrom 1920, to meet demand,marketing plans and manufacturingto meet the large demand have oftendominated the design of automobiles.The idea of different makes of carsproduced by one firm belongs to AlfredP.Sloan, who believed that in thisway buyers could “move up’ as theirfortunes improved.This made it possible for makes toshare parts with one another, so thatthe large volume of production resultedin lower costs for each price range.In the 1950’s decade, for example,Chevrolet shared doors, hoods, roofs,and windows with Pontiac, while theLaSalle of the 1930s sold by Cadillacused the cheaper mechanical partsmade by the Oldsmobile division.SPRING 2007 AEGEAN NEWS 29

TRAVELNafplionThe legendary city of Nafplion captivates visitors with its colors and charm and takes themback in the past in a unique way. Every corner, every back alley, fills the visitor's eyes withimages of modern Greek history.Just 149 kilometers from Athens,Nafplion is an ideal destinationfor a weekend escape from the bigcity and even for a day excursion.The first capital of the newly-foundedGeek state, this superb old place,crowned by imposing castles, offersa warm embrace to everyone duringall seasons.Nafplion played a very significantrole in all phases of Greek history, fromancient times up to today. During theMycenean period, it was a powerful navalstate, with the Akronaplia rock usedas protecting walls, although it later fellinto decline and was abandoned.During the Middle Ages it fell underthe sovereign rule of the Byzantines, theVenetians, and the Francs. Throughoutthe 18th century, Nafplion lived underthe Turkish rule. On November 29,1822, Staikos Staikopoulos emancipatedNafplion from the Turks, seizingall the fortresses, and on Decemer 3 ofthe same year he handed the city overto Theodoros Kolokotronis.PalamidiJust before we enter the city, on the left,rises the famous fortress of Palamidi,fortified by the Venetians in the 17thcentury. The fortification works werestarted by Francesco Morozini andwere completed during the late yearsof the second Venetian occupation(1686-1715). Palamidi has eight bastionsconnected by walls that all communicatebetween them. There weretwo accesses from the town to thefortress, one of which was domed witha vaulted roof and was later replaced bya stairway with 999 steps.Palamidi has occasionally beenused as a prison for long-term convictsTheodoros Kolokotronis wasalso jailed there and visitors can eventoday see the “hole“ in the groundused as his cell.For today’s visitors the steep, curvedrock steps leading to Palamidi are theideal way to reach it, as during the ascenta superb view of the sea is revealedin front of their eyes. For those notbold or fit enough to attempt the climb,there is always the alternative solutionof driving up from the eastern side.BourtziThe small island, the town’s symbol, isonly 450 meters away from Nafplion’spier and for the most part is coveredby the small fortress built by the Venetiansaround 1471.The fortress is a high octagonal towersurrounded by low semi circular towersfor the canons on its eastern and westernsides. During Venetian rule Bourtziwas connected with Akronafplia witha chain, which closed entry to theharbor to undesirable ships. Followingthe emancipation of Naplion, Bourtzibecame quarters for the executioners ofPalamidi’s prisoners convicted to death.Much later, and for a small period oftime, it was used as a hotel.The old town is full of sights bearingwitness to its historical significance.Impressive is the church of Saint Spyridon,built in the beginning of the 18thcentury, in front of which Ioannis Kapodistrias,the first governor of the newstate, was murdered, with the bulletmark still seen today on the right of thechurch’s door. A visit to the church ofSaint George, the town’s patron saint,built in the 16th century with a copyof Da Vinci’s Last Supper in its interior,is also a must see. A work of exquisitearchitecture is the Catholic Church ofthe Transfiguration, which during Venetianrule was used as a mosque andwas later offered to Nafplion’s Catholicinhabitants by King Othon.A walk in the old town, with its tiledstreets, wooden balconies, bougainvilleasbursting from interior yards, ancientfountains, Constitution squarewith the old Turkish bath building (amovie house today), coffee houses, tavernas,and quaint little shops, all underthe imposing shadow of Palamidi (andif you are fortunate with Bourtzi shiningunder the moonlight) will be indeliblystamped in the memory even ofthe most demanding visitor.30 AEGEAN NEWS SPRING 2007

THE AEGEAN IMAGEProducts that say“We‘re different”Aegean is proud of the contemporary image of its petrolstations. Station personnel enhance the “Aegean Look”through clothing and products that reflect acommitment to quality and customer service.SPRING 2007 AEGEAN NEWS 31

Aegean Energy for the FutureAegean is Greece's most dynamic energy, petroleum, and shipping group. The company hasa network of retail gas stations throughout Greece, is active in marine fuels and lubricants,and operates a fleet of tankers and barges internationally and domestically to transportpetroleum and bunkers for its global base of clients.RETAIL MARKETThrough its fast growing network of gas stations Aegean suppliesdrivers in Greece with gasoline and automotive lubricants.Its network is one of the most well-respected inthe country and is known for its modern, well-caredfor stations, courteous service, and competitiveprices. In addition, Aegean directly supplies largeindustrial clients with petroleum products, includingheating oil.BUNKERINGAegean provides one of the most efficient andresponsive bunkering services to clients worldwide.Its ships never stop sailing and its services are available24 hours a day, 365 days a year.Aegean operates bunkering stations in Piraeus, and inGibraltar, Singapore, Jamaica, and the United Arab Emirates. Allits products are ISO 8217 certified. The Company, which is amember of IBIA and is ISO 9001 certified, is well positionedon the FOBAS White List.SHIPPINGAegean's fleet of ships is at the heart of its superiorservice worldwide. Its vessels operate in full compliancewith EU and international standards, areall certified with the code of safe management ISMand SOLAS and are in complete compliance withMARPOL regulations.Aegean continually adds to its fleet of ships, whichincludes large vessels as well as smaller capacity vessels.Its fleet transports oil cargoes worldwide on behalfof major oil companies, commercial clients, and Aegeancustomers.LUBRICANTSThroughout the world, Aegean supplies marine lubricants at the most competitive prices.The resources of our company and our follow-up service are all part of successful relationshipsand that allow Aegean to supply lubricants in 500 ports worldwide.Αegean's websiteswww.aegeanoil.gr | www.ampni.com