1. business and industrial
2. energy
3. coal

№ 2/2014 (58), MARCH/APRIL
€ 25/99 PLN (incl. 5% VAT)
Journal
The future of fuels
European ports
Preventing
the engines
from sputtering
Baltic Transport Journal
is an official media partner of:
Baltic ro-ro & ferry market
Forced
evolution?
ISSN 1733-6732
Baltic Transport
bimonthly-daily companion
The Port of Opportunity
Port of HaminaKotka Ltd is a modern Finnish seaport serving international trade and
industry. Its location near the border between EU and Russia offers optimal location for
businesses. Scheduled routes to the Baltic Sea region and Europe open the whole world.
Comprehensive services with extensive experience make it a best choice for you.
PORT OF HAMINAKOTKA LTD
Merituulentie 424, FI-48310 Kotka, Finland, +358 20 790 8800, office@haminakotka., www.haminakotka.
Editorial
Dear Readers,
Baltic Transport Journal
President of the Board
BOGDAN OŁDAKOWSKI
[email protected]
Lena Lorenc
Company index 3i Group 26; ABB 10; AGA 23; Alexela Logistics 42; Amazon 44; ArcelorMittal 11; Autolink 27; Baltic Container Terminal Gdynia 12; Bergen Fosen Group 23, 24, 28; Black Sea
Ferry 26; Boeing 44; Cargosped 12; Cargotec 11; CMA CGM 10; Color Line 23, 26, 29; Copenhagen Malmö Port (CMP) 8, 11, 27, 34; CTL Logistics 9; CTL Logistics GmbH 9; DB
Schenker Logistics 10; DB Schenker Rail 25; Deepwater Container Terminal Gdańsk 12; Deutsche Binnenreederei 54; DFDS Group 6, 26; DFDS Seaways 23, 25, 26, 29; DNV
GL 48, 49; DUSS Terminal 25; Eimskip 52; Erontrans 12; ERS Railways 26; EUROGATE Group 9; European Cargo Logistics 25; Europoort 26; Finnlines 8, 24, 26; Fjord Line 5, 12,
23, 28, 29; Gdynia Container Terminal 8, 12; General Electric 44; Goodman 54; Google 44; Green Cargo 12, 24; Hapag-Lloyd 13; Hector Rail 25; Hupac Intermodal 9; JadeWeserPort 9; Kalmar 11; Karlshamn Express 25; Karlshamn Express Baltic SIA 26; Kastrup Airport 8; Katoen Natie 43; Kattegatruten 23, 26; Kiva Systems 44; Klaipėdos nafta
51; Kombiverkehr 9, 25; Liebherr 18; Limarko Group 12; Lithuanian Railways 9; Lockheed Martin 44; Logent 12, 24; MacGregor 18; Maersk Line 10; MAN 28; MarTech LNG
51; Mediterranean Shipping Company (MSC) 10; Mols-Linien 24; Naftoport 10; Norwegian Marine Technology Research Institute (MARINTEK) 50; Odra Rhein Lloyd 54; OT
Logistics 54; Oulu Airport 46; P&I Club 18; P+S Werften 26; PERN 10; PKP Cargo 11, 12; Polferries 24; Polsteam 24; Port Aarhus 13, 26; Port Bergen 12, 29; Port Bremerhaven
13, 26; Port Duisburg 25, 27; Port Elbląg 8, 33; Port Frederikshavn 11, 24, 28; Port Gävle 12; Port Gdańsk 10, 12, 20, 24; Port Gdańsk Cargo Logistics (PGE) 10; Port Gdynia 8, 12,
20, 21, 24, 26, 34, 35; Port Gothenburg 10, 12, 24, 25; Port Hamburg 12, 13; Port Härnösand 26; Port Helsingborg 13, 24, 25; Port Helsinki 8, 20, 23, 24, 27, 30; Port Hirtshals
12, 25, 27, 28, 29; Port Hull 12; Port Kapellskär 24, 26; Port Karlshamn 13; Port Karlskrona 12, 20, 24, 26; Port Kiel 24, 25, 26, 29; Port Klaipėda 8, 12, 25, 26; Port Langesund
12, 29; Port Långnäs 24; Port Liepāja 26; Port Lübeck/Travemünde 12, 25; Port Luleå 12; Port Mariehamn 31; Port Norrköping 12, 13; Port Örnsköldsvik 12; Port Oslo 12, 24,
25, 29; Port Oulu 46; Port Oxelösund 26; Port Paldiski 26, 42; Port Piteå 10, 12; Port Pori 10; Port Rostock 24, 25, 26; Port Rotterdam 26, 54; Port Sillamäe 42; Port Skellefteå 12;
Port Södertälje 10; Port St. Petersburg 8, 10, 31; Port Stavanger 12, 29; Port Sundsvall 12; Port Szczecin-Świnoujście 8, 12, 24, 54; Port Tallinn 20, 23, 27, 30, 34, 35, 42; Port
Turku 10, 23, 34, 35; Port Umeå 12, 24; PortVaasa 24, 26; PortVentspils 11; PortVisby 11; PortWilhelmshaven 9; Port Åhus 12, 13; Ports of Stockholm 11, 12, 13, 23, 24, 26, 31;
Preem 10; Quelle 54; Rail Service Centre Rotterdam 26; Rentrans Cargo 54; Rolls-Royce 28, 44; Royal Arctic Line 52; Russian Railways 10; Samskip Van Dieren 25; SCA Logistics
26; Scandlines 25, 26; SIAVentsplac 11; SOL Continent Line 24; Stena Line 11, 12, 23, 24, 26, 27, 29; STX Finland Rauma Shipyard 26; SWECO 11; Sweco Eurofutures 31;Tallink
Grupp 23; Team Lines 13; Tebodin Poland 26; Tempelhof Airport 53; Toyota 27; TransAtlantic 12, 26; Transfracht 54; Transport & Environment 41; Transport Intelligence 45; TT
Club 19; TT-Line 23, 24; United European Car Carriers (UECC) 12, 23, 24; United Parcel Service (UPS) 44, 45; Unity Line 24; UPB 10; UPM Seaways 23, 26; Viking Line 23, 54;
Virtual Partners 45; Vlantana Logistics Company 12; Wagenborg 26; Wärtsilä 24, 26, 34; Wasaline 24; Zakłady Chemiczne Police 54; ZAO Schenker 10.
Publishing Director
PIOTR TRUSIEWICZ
[email protected]
Editor-in-Chief
LENA LORENC
[email protected]
Executive Editor
MAREK BŁUŚ
[email protected]
Features Editor
PRZEMYSŁAW MYSZKA
[email protected]
English Language Editor
ALISON NISSEN
Assistant Editor
Magdalena Dams
Contributing writers
bartosz dąbrowski, jos dings, vassilen iotzov,
stefan jankowski, marcin kalinowski, priit koff,
wendy laursen, ken lyon, sebastian łupak,
john manners-bell, justyna rataj,
marta reszko, peregrine storrs-fox,
andrius sutnikas, theresa weiss
Art Director/DTP
DANUTA SAWICKA
Publisher
Baltic Press sp. z o.o.
Address: 8 Pułaskiego Street
81-368 Gdynia, Poland
[email protected]
tel. +48 58 627 23 94
tel. +48 58 627 23 95
fax +48 58 621 69 66
www.baltictransportjournal.com
www.baltictransportmaps.com
Marketing & Sales
(advertising, tradefairs, conferences)
PIOTR TRUSIEWICZ
[email protected]
ANNA DĄBROWSKA
[email protected]
PRZEMYSŁAW OPŁOCKI
[email protected]
Circulation: 2,500
If you wish to share your feedback
or have information for us,
do not hesitate to contact us at:
[email protected]
Cover:
Photo: SOL Continent Line
Baltic Transport
bimonthly-daily companion
№ 2/2014 (58), MARCH/APRIL
€ 25/99 PLN (INCL. 5% VAT)
Journal
ISSN 1733-6732
O
ne of the driving forces behind creating the European Union, along with the need to
construct an economic partnership, was the desire of the various and differing peoples
to transcend their ancient divisions in order to create a common ground, while at the
same time remaining proud of their cultural or national identities. Recognizing the role
of ports in the European economy and discussing their place within the Trans-European Network
for transport, Dimitrios Theologitis of the European Commission have described the idea behind
the TEN, as an embodiment of the rudimentary features the EU wishes itself to be based upon:
equality – of treatment, of chances, of opportunities, safety, security, environmental protection,
transparency. These are indeed solid foundations to planning and realizing developments – whether
in the transport area or any other branch of the economy. The declarations (or regulations, or theory)
do not always meet reality or rarely do. Notwithstanding, hoping for the best and expecting the worst,
we will observe whether the Commission’s third attempt to regulate European ports will ensure the
provision of effective, secure, environmentally and socially sustainable port operations (you can find
more about the EU legislations on port market access and transparency in the piece “Preventing the
engines from sputtering” on pgs. 37-38). Investments within ports, leading to increased efficiency,
can help lower transport expenses, enabling goods to get to the markets in a more time- and costeffective manner. And yet, in their planning stage, social benefits need to be emphasized and secured,
while the negative impacts, such as pollution or congestion, kept in mind at the same time. Port issues
prevail prominently on the pages of this edition, just to point out two interesting pieces: Sebastian
Łupak’s feuilleton “The weakest link?” (pg. 14) and an interview with Janusz Jarosiński of the Port of
Gdynia, entitled “There’s no progress without people” (pgs. 20-21). We will be following the European
port sector’s developments even more closely now, as our Publishing House has decided to prepare a
new medium devoted to this sector. Stay tuned for more information.
Getting back to the Baltic playground, the hottest legal development here is the expected and
feared entry into force of the EU Sulphur Directive. This matter is vastly present in this edition
of the BTJ as well, whether on the pages of Energy & LNG sections, Maritime or in the Report,
summarizing the current and last year’s state of the Baltic ro-ro & ferry affairs. The article opening
the latter section could have been just as well named “Betting in full swing” or “It’s the final
countdown” – such as this year’s Baltic Ro-ro & Ferry Yearbook, as no one knows how the market
is really going to change after the highly anticipated caesura of 2015. The only thing anyone seem
to be agreeing on is that the transport costs will rise. Nevertheless, the industry’s SECA-propelled
actions are not all we wish to tell you about our ro-ro & ferry sector, far from that. Supplemented
to the BTJ you will find the Yearbook, full – as always – of statistics, networks, maps, giving a clear
overview of the current & future trends impacting this business.
Additionally, I’d like to devote your attention to a piece about the things that went well for
sustainable transport in Europe last year, written by Jos Dings of Transport & Environment
(“Silver linings”, pgs. 40-41). There is much more worth reading, but perhaps this one’s good for a
closure, as – above all – it’s always worth looking at the bright side.
The future of fuels
European ports
Preventing
the engines
from sputtering
Baltic ro-ro & ferry market
Forced
evolution?
Baltic Transport Journal
is an official media partner of:
Subscriptions
Go to www.baltictransportjournal.com and click:
SUBSCRIPTION or contact us at
[email protected]
2/2014 | Baltic Transport Journal | 3
Contents
3
15
18
3 Editorial
6 BTJ Calendar of events
8 Market SMS Extended
10 What’s new?
12 BTJ Maps News
14 On the roads:
The weakest link?
52 Collector’s corner
53 Transport miscellany
54 Who’s who
15Pathways to gain the best value
– Scenarios for the future of
transport activities
18 Staying safe all the time
– Guidelines to proper use of ships’
gear
20 There’s no progress without people
– Interview with Janusz Jarosiński,
President of the Managing Board of
the Port of Gdynia
Regular columns
32
Newsletters
VILA
32 Balancing the needs, leverages
& deficiencies – Outcome of the
socio-economic ratios analysis
33 Opening the Lagoon to Europe
– Interview with Professor
Krzysztof Luks of the Maritime
Institute in Gdańsk
Baltic Ports Organization
34 Questions, uncertainties and
hard work – Utilization of sewage
from passenger ships and waste
from scrubbers in the BSR
4 | Baltic Transport Journal | 2/2014
Economy
48
Energy
48 The future of fuels – Diversification
of shipping fuels
Maritime
LNG
50 The paradigm shift – LNG – the
new bunker fuel for the Baltic Sea
shipping industry?
Contents
23
37
40
Baltic ro-ro & ferry market
23 Forced evolution? – Baltic ro-ro &
ferry affairs 2013-2014
28 LNG cruising – Interview with
Ingvald Fardal, CEO of Fjord Line
30 A deeper bond – Helsinki and Tallinn
are getting closer to each other
thanks to the Twin-Port Project
31 (Re)visiting Stockholm – Pleasure
trips and ferry culture in the Baltic
European port policy
37 Preventing the engines from
sputtering
40Silver linings – 10 things that
went well for sustainable
transport last year
42The defining factor – The Estonian
logistics sector: innovation shaped
through cooperation
44Auto-revolution? – The impact of
robotics & automation on logistics
46The Northern star – Oulu, the
evolving Finnish logistics hub
Report
Focus
Logistics
In this issue ”In 2013 we saw the idea of Europe’s silly and dangerous box-shaped trucks started to fall.”
Jos Dings
Read more in the article: Silver linings. 10 things that went well for sustainable transport last year, pgs. 40-41
2/2014 | Baltic Transport Journal | 5
BTJ Calendar of events
BTJ 2/2014 (March-Apr. edition)
Report: Baltic ro-ro & ferry market | Focus: EU port policy
Issue distributed at:
Scandinavian Rail Development 2014, 29 April 2014, NO/Oslo, www.scandinavianraildevelopment.com
Scandinavian Rail Development brings together key rail industry stakeholders from across Sweden, Denmark, Norway and Finland,
to share valuable insights into the ongoing development of the region’s rail networks. The conference will offer the possibility to
discover new investment and development opportunities as well as enter into a dialogue with transport authorities.
TransBaltica 2014, 8-10 May 2014, LT/Vilnius, www.litexpo.lt/en
In 2014 TransBaltica will celebrate the 10th edition of its international exhibition of transport, logistics and ITS. In addition, the 1st congress on
intelligent transport systems will take place. TransBaltica 2014 will focus on complex transport networks, logistics & transportation services and
infrastructure as well as will be enriched by real-time demonstrations organised on a newly-built test track.
Breakbulk Europe 2014, 15-16 May 2014, SE/Gothenburg, www.espo-conference.com
The Breakbulk Europe Exhibition will offer the opportunity to network with over 200 exhibitors and sponsors, including ocean carriers, freight forwarders, ports/terminals, logistics providers, heavy air, export packers, equipment companies and many more. Various
workshops and executive presentations will add variety to the exhibition.
ESPO Conference, 12-15 May 2014, BE/Antwerp, www.breakbulk.com
This year’s conference theme is “level playing field”. The conference aims at giving some more substance to this concept (“is it a must or a reality?”) by looking at how ports compete on different levels, and which factors support as well as breach fair competition. The conference also
wants to assess how port competitiveness can be challenged by different elements on which they have no leverage and to investigate what
role harbours can play in keeping industry in Europe.
5th Annual European Bunker Fuel, 22-23 May 2014, NL/Rotterdam, www.platts.com/europeanbunker
The conference will once again convene the region’s leading ship operators & owners, brokers, fuel suppliers, refiners and other
marine fuel organizations to assess the changing landscape of the European bunker sector and discuss solutions for challenges now
facing them. This year’s conference will attract over 100 key industry professionals from across the whole bunker spectrum.
Maritime Days in Odessa 2014, 29-31 May 2014, UA/Odessa, www.maritimedays.odessa.ua
Maritime Days in Odessa is an annual forum that addresses major challenges faced by the shipping industry and is designed to forge solutions,
deliver insights, and propose general guidance to enable participants to generate tangible benefit supporting strategies for the upcoming
year. The 2nd day conference will comprise three sessions – project cargo for the former USSR market as well as sea carriage & cargo handlings
from the perspective of both cargo- and ship-owners.
Turku Baltic Sea Days, 1-5 June 2014, FI/Turku, www.turku.fi
All decision-makers, political and business leaders as well as experts and citizens are welcome to participate in the Turku Baltic Sea Days, which
will host the 10th Summit of the Prime Ministers of the Council of the Baltic Sea States, the 16th Baltic Development Forum Summit, the 5th Annual Forum of the EU Strategy for the BSR, the 12th Baltic Sea NGO Forum along with and many other interesting events.
Posidonia 2014, 2-6 June 2014, GR/Athens, www.posidonia-events.com
Once again the Greek shipowners will welcome the international shipping community to Posidonia for five days of business, debate
and social gatherings. The 2013 programme of conferences, workshops and seminars will be further developed during the 2014
edition. Posidonia 2014 will again host the TradeWinds Shipowners Forum. All this topped with a solid business case for exhibiting.
SIL 2014, 3-5 June 2014, ES/Barcelona, www.silbcn.com/en
Over the years SIL Barcelona has established itself as an international point of reference where all logistics sectors are represented, acting as a bridge for
business between Europe and Latin America, Africa and the Mediterranean (also Europe…). The 16th International Logistics and Material Handling Exhibition goes hand-in-hand with the 12th Mediterranean Logistics & Transport Forum as well as with the 3rd Latin American Logistics & Transport Summit.
7th Shortsea Euro, 10-11 June 2014, BE/Antwerp, www.navigateevents.com/events.html
Shortsea Euro regularly attracts around 150 delegates representing the interests of carriers, logistics, ports, terminals together with a range of service
providers, and discussing a variety of the industry’s offers, incl. containers, feeders, ro-ro, lo-lo, dry & liquid bulk as well as project cargo. Shortsea Euro will
comprise two days of networking along with presentations, discussions and debates.
A Practical Guide to ECA Compliance in 2015, 17-18 June 2014, UK/London, www.lloydsmaritimeacademy.com
The two-day conference will provide an opportunity to gain clarification on inspection criteria and penalties for non-compliance with the new
Sulphur Directive. Business evaluation of each compliance option, availability and pricing of low-sulphur fuels and LNG, port scrubber residue
reception facilities, alternative fuels – these are just a few of the conference’s highlights. Additionally, DFDS, the German Shipowners’ Association, ICIS, the Baltic Ports Organization and the European Commission will give their insights.
RORO 2014, 24-26 June 2014, UK/London, www.roroex.com
RORO 2014 will bring the entire roll-on/roll-off industry together for three days of buying, meeting and essential networking opportunities.
The exhibition part will be supplemented by a free-to-attend conference, where such top issues as SECA, ballast water management as well as
regional & global outlooks will be tackled. RORO 2014 will be co-located together with TOC Europe and the Port Centric Logistics exhibitions.
BTJ 3/2014 (May-June edition)
Report: Baltic container market | Focus: European road freight
Issue distributed at:
International Port Security, 4-5 June 2014, UK/London, www.smi-online.co.uk
The 5th annual conference will address the latest developments in port security enforcement focusing on the rise in organised crime within ports, compliance with the ISPS code and new systems including the ‘Port Security Management System’. International Port Security will give also insights into challenges faced in ports and arising from theft of cargo, illegal immigration, drug smuggling and corruption of high level port staff.
Technological Innovation in Ports & Terminals Training, 5-6 June 2014, IT/Livorno, http://transport.flemingeurope.com/
technological-innovation-ports-terminals-training
The Training will focus on the question how to benefit from information and communication technologies, tackling such hot industry topics like intelligent transport systems R&D and standardisation activities within a European scope and beyond, future Internet experimentation at seaports, port community systems and ICT solutions featuring ITS. The event will also deal with European-level strategies for port & terminal development.
2nd International Maritime Congress, 12-14 June 2014, PL/Szczecin, www.maritimecongress.com
For the second time Szczecin will host maritime experts, politicians as well as business and media representatives discussing the actual
state and prospects of both the Polish and European maritime economy. The Congress will be divided into four thematic blocks packed
with discussion panels, workshops and lectures on the education, research and development opportunities regarding maritime economy;
taking advantage of sea resources as well as ecology and safety at sea.
TOC Container Supply Chain: Europe Conference, 24-26 June 2014, UK/London, www.tocevents-europe.com/csc-conference
TOC 2014 container transport and trade forum will provide shippers and their logistics partners with exclusive access to the insight
and analysis that drives international trade, transportation and logistics. Freight rates, contracts & volumes; Panama vs. Suez, market
focus on Russia; the future of Asia-Europe trade are just a few key topics for 2014.
6 | Baltic Transport Journal | 2/2014
BTJ Calendar of events
BTJ 4/2014 (July-Aug. edition)
10-YEAR BTJ ANNIVERSARY EDITION
Issue distributed at:
The BPO Annual Conference 2014, 4-5 September 2014, DK/Rønne, www.bpoports.com
Baltic Ports Organization invites all executives interested in improving the competitiveness of maritime transport in the region,
increasing the efficiency of ports/terminals, developing infrastructure and value added services, as well as extending both ashore
and hinterland connections to its annual conference, this year held in Rønne.
Danish Maritime Days, 6-10 October 2014, DK/Copenhagen, www.danishmaritimedays.com
The event will bring together a broad spectrum of leaders from across the maritime industry to find new solutions to the most important
challenges facing the industry today and in the future, incl. new technologies, Arctic shipping, international trade & development,
piracy, recruitment, education, offshore shipping. The event will also host the inaugural Danish Maritime Forum (8-9 October), focused
on future profitability & sustainable development.
GreenPort Congress 2014, 15-17 October 2014, ES/Barcelona, www.greenport.com/congress
The ability of ports & terminals to ‘go green’ by reducing their carbon footprint and by being more sensitive to environmental affairs is vital to future success. The GreenPort Congress will provide decision makers with a meeting place to both learn about and discuss the latest in sustainable environmental
practices and in next-gen. eco-technologies. The 2nd GreenPort Cruise Conference will be held on October 14th, one day prior to the GreenPort Congress.
BTJ 5/2014 (Sept.-Oct. edition)
Report: Baltic bulk market | Focus: European rail freight
Issue distributed at:
Transfairlog, 4-6 November 2014, DE/Hamburg, www.transfairlog.com
After the success of the 2012 edition of the event at the Trade Fair Centre Hamburg, decision-makers from the North Sea and Baltic
Sea regions, as well as Central Europe, will once again debate on international freight transport and logistics systems and participate
in showcasing products, services and solutions for day-to-day logistic operations.
Trans Poland, 5-7 November 2014, PL/Warsaw, www.trans-poland.pl/main
The 2nd edition of the Trans Poland trade fair will be devoted to showcasing the latest achievements in transport and infrastructure technologies,
helping companies from the sea, road, air, intermodal, freight forwarding and storing sectors to booster their performance. The international exhibition & conference will also present up-to-date transport & logistics equipment as well as ICT, monitoring and navigational solutions.
5th Gas Fuelled Ships Conference, 25-27 November 2014, NO/Stavanger, www.motorship.com/gfsconference
The longest running small-scale Liquefied Natural Gas conference will again provide a platform for all stakeholders who want to
explore the implications, challenges and benefits of LNG as a maritime fuel. The conference will combine a two day informative and
knowledge-based conference with technical visits giving access to real life operations of LNG vessels and supply plants.
TRANSLOG Connect Congress 2014, 25-26 November 2014, HU/Budapest, www.translogconnect.eu
TRANSLOG has established itself as the leading market cross-industrial logistics and supply chain management event in the CEE and
CIS markets. The event brings together over 500 senior European decision-makers, delivering insights into key transport & logistics,
IT, production, warehouse management and production topics. Its TEG Meeting Scheduler will also give participants the opportunity
to pre-schedule one-to-one meetings.
Group Discount
Rate Available
www.platts.com/europeanbunker
May 22 -23, 2014 | The Manhattan Hotel | Rotterdam, The Netherlands
5TH ANNUAL
EUROPEAN BUNKER FUEL
ENSURING GROWTH IN A CHANGING REGULATORY ENVIRONMENT
HEADLINE INDUSTRY THOUGHT-LEADERS:
Chairman
Trevor Harrison
Maritime Arbitrator and Mediator and Board Member
International Bunker Industry Association
Speakers
KEY LEARNING & DEBATE TOPICS:
Grant Hunter
Chief Officer Legal and Contractual Affairs
BIMCO
Sponsored by:
Supporting Association:
3 Hear from the IBIA, ESPO, BIMCO, Intertanko and the
European Commission as they give their perspective on
the challenges and opportunities faced
Nicholas Browne
Global Director
3 Discover how the bunker fuel industry is adjusting to keep
GAC
up with evolving fuel regulations
Per Funch-Nielsen
General Manager, Physical Distribution
OW Bunker
3 Receive a detailed update on key market developments
Supported by:
including advances in alternative fuels and on-board
abatement
Dr. Leo Drollas
Director and Chief Economist
The Centre for Global Energy Studies
3 Understand fuel quality trends and their implications to
the value chain
2/2014 | Baltic Transport Journal | 7
BOOK NOW
www.platts.com/europeanbunker
[email protected]
+44 (0)20 7176 6300
+44 (0)20 7176 8512
The Port of Helsinki:
76,183 cargo units handled
in I-II 2014 (+2.1% yoy)
Container traffic in the Port of Helsinki went down
by 9.1% year-on-year to 61,673 TEU. During the
first two months of 2014, the total freight turnover
amounted to 1.67 mln tn (+0.7%), of which general (unitised) cargo totalled 1.53 mln tn (+0.9%),
while dry bulk – 135 thou. tn (+/-0%). Passenger
traffic during the period in question amounted
to 1.32 mln passengers (-1.1%), including 2,000
travellers visiting Helsinki on-board international
cruise ships (5,000 cruise passengers in I-II 2013).
Rail freight traffic in Poland:
17.74 mln tn carried in I 2014
(+3.5% yoy)
Photo: PKP Cargo
Rail cargo transport performance in January 2014
totalled 3.69 bln tn-km, an increase by 10.2% yearon-year. Also rail
passenger traffic
rose in Poland in
Jan. 2014 – by 2.6%
yoy to 22.9 mln
travellers, though
transport performance dropped
by 0.2% to 1.29 bln
pax-km.
Copenhagen Malmö Port: 14.4
mln tn handled in 2013 (+2.1% yoy)
According to the Port Authority, the increase
was mainly due to dry bulk handlings and to
Finnlines’ growth within the ro-ro sector. Liquids
have increased in terms of local supply in both
Malmö and Copenhagen, aviation fuel deliveries to Kastrup Airport being the most significant
propeller of growth here. Several business areas
have increased their volumes too, among others the stone, gravel and scrap metal industries.
For more short messages on the market please visit:
www.baltictransportjournal.com
The Port of Klaipėda:
70,750 TEU handled in I-II 2014
(+12.5% yoy)
The total turnover at the Lithuanian Port of
Klaipėda dropped down by 12% year-on-year to
5.4 mln tn during the first two months of 2014.
Ro-ro freight traffic marked a slight decrease
too – by 3% to 37,484 cargo units in Jan.-Feb.
Passenger traffic rose by 2.1% to 34,686 people
travelling during the period in question.
The Port of Klaipėda’s volumes
I-II 2014 Yoy
Overall cargo handlings [thou. tn]
Dry bulk
2,421.9 -2.2%
General cargo
1,822.7 +10.1%
Liquids
1,152.8 -42.3%
Total
5,397.4 -12.0%
Detailed dry bulk handlings [thou. tn]
Natural & chemical fertilizers 1,257.1 +5.2%
Agricultural products
445.2
-35.1%
Crude & manufactured
328.5
+4.1%
minerals and building materials
Ore
218.7
+216.2%
Sugar
85.6
-36.3%
Metal scrap
63.25
+185.1%
Peat
23.4
-34.5%
Other dry bulk
0.0
-100%
Detailed general cargo handlings [thou. tn]
Containerised freight
871.9
+32.9%
Ro-ro cargo
688.3
-7.5%
Natural & chemical fertilizers 114.6
+36.2%
Forest products
60.8
-22.2%
Reefer cargo
44.8
-1.0%
Iron & steel products
30.7
-25.6%
Other general cargo
7.3
+9.3%
Peat
4.25
*
Detailed liquids handlings [thou. tn]
Petroleum products
875.4
-46.0%
Natural & chemical fertilizers 203.0
-32.7%
Other liquid cargo
61.55
+42.7%
Molasses
12.9
-62.3%
* No peat handlings in I-II 2013
GCT Gdynia: 57,231 TEU handled in I-II 2014 (+24.9% yoy)
Moreover, during the first two months of 2014, the entire container traffic in the Port of
Gdynia amounted to 127,596 TEU (+25.5% year-on-year).
The Port of St. Petersburg:
2.5 mln TEU handled in 2013 (-0.3% yoy)
In 2013, 2,514,440 TEU was handled at the top Baltic container port, which lacked 10,240 TEU to
tie its 2012 record. However, in terms of tonnage, containerised cargo rose by 0.6% year-on-year
to 23.18 mln tn. Boxed goods were followed by oil products (13.97 mln tn, a decrease by 0.1%),
metals (5.60 mln tn, -12.9%), reefer freight (2.20 mln tn, +5%), scrap metal (1.41 mln tn, -5.2%), and
last but not least – ro-ro cargo (1.34 mln tn) which marked the highest growth (+75.5%).
8 | Baltic Transport Journal | 2/2014
Rail freight traffic in
Germany: 373.7 mln tn carried
in 2013 (+2.1% yoy)
According to the Federal Statistical Office of Germany, 85 mln tn of cargo was carried with the use
of kombi trains (+9.1% year-on-year) in 2013; when
converted from tonnes to 20-foot boxes, the kombi trains in Germany carried as much as 6.5 mln
TEU (+4.8%) last year. In 2013 rail performance in
Germany totalled 112.6 bln tn-km (+2.3%). The average distance of a freight train was 301 km, while
that of a kombi train – 499 km. In 2013, domestic
rail transportation in Germany amounted to 247.5
mln tn, imports to 62.9 mln tn, exports to 45.5 mln
tn, whereas transit traffic totalled 17.8 mln tn.
The Port Szczecin-Świnoujście: 22.75 mln tn
handled in 2013 (+7% yoy)
Photo: Port Szczecin-Świnoujście
Market SMS extended
In 2013, the Polish seaports in Szczecin and
Świnoujście marked their highest freight turnover since 1980.
The Port Szczecin-Świnoujście’s volumes
General cargo
incl. ro-ro traffic*
Coal
Other dry bulk
Ore
Grains
Crude oil & oil
products
Total
Container traffic
Boxes
2013
9.39 mln tn
6.62 mln tn
4.53 mln tn
2.89 mln tn
2.65 mln tn
1.65 mln tn
1.62 mln tn
Yoy
-0.4%
+2.7%
+6.4%
-28.5%
+268.3%
+18.2%
+15.5%
22.75 mln tn +7.0%
62.3 thou TEU +19.4%
* Including trucks’ tare
The Port of Elbląg: 285.5 thou. tn
handled in 2013 (+69% yoy)
In 2013, the main import commodities handled
in the Polish Port of Elbląg were coal (55.8 thou.
tn) and grains (1.0 thou. tn), whereas construction materials and sugar dominated in exports
(altogether 228.7 thou. tn). Arkadiusz Zgliński,
Managing Director of Elbląg port, anticipates that
the port will handle up to 400 thou. tn this year.
Market SMS extended
Kombiverkehr:
Vilnius
Shuttle:
937,671 truckloads via rail
in 2013 (+1.1% yoy)
Photo: Kombiverkehr
The Frankfurt-based company transported
295,395 truckloads via rail across its network
in Germany (+1.4% year-on-year) in 2013. In
addition, Kombiverkehr shifted onto rails
642,276 truckloads internationally (+1%).
“Following a decline caused mainly by economic conditions, we are back on course
for growth and hope to continue on this
track this year,” Robert Breuhahn, Managing
Director of Kombiverkehr, commented.
10,697 TEU
carried in 2013
(+168.4% yoy)
In the last week of
February 2014, the
‘Vilnius Shuttle’ container service of Lithuanian Railways set a
new single trip record
– 145 TEU.
JadeWeserPort: 76,265 TEU
Hupac Intermodal:
EUROGATE’s 2.7 mln TEU capacity terminal located in the Port of Wilhelmshaven started its
operations in September 2012 (26,045 TEU till
end of year). However, due to problems caused
by underutilization, it will take a longer time for
JadeWeserPort to position itself on the container market, EUROGATE said in a press release. In
the meantime, the EUROGATE Group altogether handled 14.2 mln TEU last year (+7.3% yoy).
In 2013, transalpine carriages amounted to 436,158 road consignments by rail (+2.1% yearon-year), while non-transalpine totalled 220,719 (+0.7%).
handled in 2013 (+192.8% yoy)
656,877 road consignments by rail in 2013 (+1.7% yoy)
CTL Logistics: 15.8 mln tn carried in 2013 (+5% yoy)
The company’s transport performance last year totalled 3.5 bln tn-km, and was higher
year-on-year by 6.7%. Additionally, CTL Logistics’ subsidiary offering rail transport services
in Germany – CTL Logistics GmbH – carried altogether 2.8 mln tn and made 969 mln tn-km.
Kiruna
From 31 March 2014
THREE LINKS
- make a difference
Haparanda
Luleå
Piteå
Skellefteå
Umeå
Örnsköldsvik
Sundsvall
Borlänge
NORWAY
• One route to buy
• One route to book
• One route to be invoiced
Green Cargo, Logent and Stena Line
combine trains, terminal handling and
ships into an optimised logistics solution, enabling us to give you a competitive and environmental-friendly offer.
Gävle
Oslo
Stockholm
Hallsberg
SWEDEN
Göteborg
Karlskrona
Gdynia
POLAND
For further information
please contact us at
www.greencargo.com
www.logent.se
www.stenalinefreight.com
2/2014 | Baltic Transport Journal | 9
For more news please visit:
www.baltictransportjournal.com
What’s new?
P3 Network gets the green light in the USA Preem to upgrade its Gothenburg refinery
The US’ Federal Maritime Commission (FMC) has authorized (four The company will invest about EUR 33.6 mln to redevelop its energy
votes “yes”, one dissenting) Maersk Line, MSC and CMA CGM to share
vessels and engage in related cooperative operating activities in the
trades between the US and Asia, Northern Europe, and the Mediterranean. However, the FMC noted that there may be circumstances that
could permit the P3 parties at some point in the future to unreasonably
reduce services or increase rates that could raise concerns. To address
any potential affairs, the FMC directed staff to issue alternative reporting
requirements to the P3 agreement parties to assist the Commission in
its ongoing, close monitoring of the agreement.
facility in Gothenburg. The project is aimed at doubling the production of
diesel with renewable content (to 800,000 tn). The expansion is scheduled
for completion in Autumn 2015. Since 2010, Preem has been producing
diesel based on tall oil, a residual product from the forestry industry. The
tall oil is shipped from the Port of Piteå to Gothenburg, where it is processed together with fossil-based diesel at the Preem refinery, giving
an end-product with a one-third renewable content (‘Evolution Diesel’).
Apart from tall oil, other vegetable or animal-derived input materials can
be used in the production process, including rapeseed oil.
LNG import terminal in Pori
Construction works kicked-off at PERN’s oil terminal
Photo: PERN
The new terminal for liquids will be set up in two stages. The first will cover six crude oil
tanks, each with a capacity of 62.5 thou. m3, together with necessary infrastructure (a pipeline
network, a pump station, access roads,
buildings, a firefighting system, etc.). Turnkey works are scheduled to be finished by
the end of 2015. The subsequent stage will
cover additional tanks (a total of 325 thou.
m3) for storing oil products, chemicals,
JET-A and fuel bio-components. A railway
to the terminal and tank truck station will
be established too. The new facility will
be connected with Naftoport, the Port of
Gdańsk’s transhipment base for liquids. The
whole project is set for completion in 2018.
Changes within Gdańsk port
10 | Baltic Transport Journal | 2/2014
Carrying project cargo over
4,000 km in Russia
 ZAO Schenker, DB Schenker Logistics’ Russian
subsidiary, has transported four ABB transformers over 4,000 km from St. Petersburg port to
Novosibirsk Hydroelectric Power Station in less
than 20 days. The cargo (with a total weight of
280 tn), had to be partially knocked down into
heavy-weight pieces in order to be transported.
The services included customs clearance at the
port under a single customs commodity code as
well as transportation of the heavy-weight items
to Novosibirsk by railroad (in partnership with
Russian Railways), their transhipment onto trailers and finally their delivery to the power station.
The Port of Södertälje & UPB cooperation
The
Photo: UPB
The port received approx. EUR 4.1 mln from the
Centre for EU Transport Projects for upgrading the
intermodal facility on the Szczecińskie Quay in the
inner port, where the Gdańsk Container Terminal is
located. The whole development project is worth
approx. EUR 10.5 mln and is aimed at increasing
the intermodal terminal’s yearly capacity up to even
100,000 TEU. Additionally, the Port of Gdańsk Authority has decided (again) to sell its multipurpose stevedoring company, Port of Gdańsk Cargo Logistics,
which encompasses 90 ha in the port. The firm offers
handling and storage services of goods delivered by
sea, road and rail. In 2013, Port of Gdańsk Cargo Logistics handled 4.05 mln tn of freight (+7.8% year-onyear), however, a previous attempt to sell the company (2012) ended without success.
Photo: Preem
Gasum intends to set up its first Liquefied Natural Gas import terminal in the Tahkoluoto Harbour within the Port of Pori. The terminal’s
capacity will amount to 30,000 m3. The LNG distribution & logistics
chain will be based on truck transports, targeted chiefly to fit the
needs of the industry; however, Gasum also wants to serve maritime
and road traffic. The company expects to begin construction of the
terminal this year, and complete the facility in the fall of 2016. Earlier
on Gasum planned to build an import terminal in the Port of Turku
(Pansio Harbour). An appeal regarding the terminal has been made to
the Turku Administrative court, delaying the project.
Latvian company UPB, manufacturing pre-cast concrete products for the
Swedish market, has
chosen Södertälje port
as its logistics hub. The
decision is a result of
large
construction
sites emerging in the
Stockholm area. The
construction materials are stored on the
premises of the port
for further transport by
trucks.
What’s new?
PKP Cargo to carry 120 m long rails
Photo: PKP Cargo
ArcelorMittal, the world’s largest steel producer, has entrusted PKP Cargo with the carriage of 120 m long rails. The first test runs were
executed at the beginning of February 2013,
when 53 rails were carried from ArcelorMittal’s
steel works in Dąbrowa Górnicza (southern Poland). During the test the 120 m long rails were
stacked one above the other. However, since
March, PKP Cargo has been carrying three layers of rails per train. The project is worth approx. EUR 33.5 mln.
New timber terminal in the Port
of Ventspils The new facility has a 300 m long berth, while the
total bulk area covers five hectares. In addition, approx. 2,000 m of new and modernized railways have
been placed (the terminal offers a direct train-ship
loading option). Total construction costs amounted
to EUR 13.4 mln, of which 8.1 mln was partly financed
by the EU Cohesion Fund, and 5.3 mln was invested
by the Freeport of Ventspils Authority. The company
SIA Ventsplac is the lessee of the new facility.
Stena Line & Frederikshavn port agreement
Both parties have signed an agreement aimed at developing and optimizing ferry operations within the Danish port. According to the deal, some
buildings are to be torn down in order to create new possibilities at the grounds for ferry passengers, freight customers and the residents of Frederikshavn.
New box equipment heading to Stockholm
Copenhagen
Kalmar, a part of the Finn-
Malmö Port (CMP) and Region Gotland have
signed a memorandum of understanding aimed at developing
cruise traffic to Gotland, chiefly by the means of a new cruise quay
at the Port of Visby which could be put into use in 2018 (according
to a report conducted by SWECO, this would increase the number
of cruise calls to around 150 annually, carrying about 1,700 passengers per ship, and generating a yearly income to commerce of
approx. EUR 10.2-14.7 mln). CMP and Region Gotland plan to set up
a long-term collaboration agreement by the end of this year.
ish corporation Cargotec,
delivered four new reachstackers (5th generation DRG
series) and one TR618i terminal tractor to the container
terminal Frihamnen. All machines are supplied with a
service contract.
Photo: Kalmar
CMP & Gotland cruise cooperation
2/2014 | Baltic Transport Journal | 11
BTJ Maps News
For more maps news please visit:
www.baltictransportmaps.com
Intermodal terminal in Karlskrona up & running UECC orders dual-fuel PCTCs
for Baltic traffic
Photo: Kate Isaac
United European Car Carriers (UECC) will have two brand new
dual-fuel Pure Car & Truck Carriers (PCTC) with 1A super Finnish/
Swedish ice class. The vessels will be 181 m long with a 30 m beam,
able to take on-board approx. 3,800 standard size cars across 10
decks. A part of the cargo capacity can also be utilized to transport
high & heavy cargo as well as any other freight loaded onto mafi
trailers. Both PCTCs will be dual-fuel, capable of operating on Liquefied Natural Gas or Heavy Fuel Oil/Marine Gas Oil. According to
UECC, its new car carriers will be the first of their kind fitted with
an LNG fuel propulsion system, with the possibility to complete a
14-day round voyage in the Baltic solely using gas (including the
main engine and auxiliary power generation). Deliveries of both
new units are scheduled to take place in the second half of 2016.
The new terminal, a joint undertaking of Stena Line, Logent, Green Car- New intermodal train shuttle
go and Karlskrona Municipality, served its first train on Monday, March 31st.
The new kombi facility is able to handle semi-trailers as well as containers.
The terminal investment began back in Autumn 2013 and was possible
due to the successful finalization of the ‘Baltic Link’ project which modernized the railway in Karlskrona, linking the port with Sweden’s rail network.
Stena Line, Logent and Green Cargo now also offer a ‘Three Links’ service which combines rail & sea transportation. Trailers or containers can be
dropped in one of the network’s terminals (Haparanda, Luleå, Piteå, Skellefteå, Umeå, Örnsköldsvik, Sundsvall, Gävle, Borlänge, Gothenburg, Hallsberg,
Stockholm, Kiruna and Oslo) and picked up in Gdynia – or vice versa – all
through one combined service. Within the port, Stena Line is responsible for
sea transportation (the Gdynia-Karlskrona ro-pax connection), Logent for operating the new terminal, while Green Cargo provides rail freight forwarding.
BCT-GCT-DCT-Stryków
Erontrans has established a new regular link between box terminals in Gdynia and Gdańsk with the company’s facility in Stryków (central Poland). Baltic Container Terminal Gdynia and Gdynia Container
Terminal are served by one train twice a week, while the Deepwater Container Terminal Gdańsk is connected to Erotrans’ intermodal
terminal in Stryków via a separate train once per week. Rail carriages
are provided by Cargosped, one of PKP Cargo’s subsidiaries. Erotrans’
facility in Stryków was officially kicked-off on March 3rd. It offers a 350
m long rail track and a 6,000 m2 storage yard (up to 600 TEU). The terminal is suitable for handling both containers and semi-trailers.
Bergensfjord steps into service  The newest cruise ro-pax of Fjord Line, powered solely by LNG, set
sail on March 17th, two and a half weeks earlier than previously planned.
The new vessel serves the Bergen-Stavanger-Hirtshals and the HirtshalsLangesund connections together with its sister ship Stavangerfjord. The
new ship is 170 m long, offers 1,350 lane metres for freight and cars as
well as can accommodate up to 1,500 passengers in 306 cabins.
Testing a new ro-ro link
Photo: Fjord Line
The Lithuanian Limarko Group and the Vlantana Logistics Company have started carrying out test shipments between the ports
of Lübeck/Travemünde and Klaipėda. If the trial proves to be successful, a regular ro-ro service will be set up on the route in question. Vlantana Logistics Company specializes in road transportation, while Limarko Group deals with seaborne shipments through
Limarko Shipping Company and Limarko Maritime Agency.
TransAtlantic discontinues its ‘TransPal Line’
The ‘TransPal Line’ (Norrköping-Hull and Åhus-Szczecin-Hamburg-Hull services) was closed down with its last journey in the first week of March.
The step also involves the closure of offices in Hull and Szczecin, affecting 70 employees mainly in the UK, Poland and the company’s headquarters
in Gothenburg. The terminal lease and associated operations in Hull will be put up for sale too.
12 | Baltic Transport Journal | 2/2014
BTJ Maps News
Karlshamn enters the Baltic container network
Hapag-Lloyd’s new Baltic service
Team Lines has incorporated the Swedish Port of Karlshamn into its ‘SWE 1’ weekly Since mid-March the shipping line has a new rocontainer rotation. The company’s service now links the following ports: Bremerhaven,
Hamburg, Stockholm, Norrköping, Åhus and Karlshamn. Team Lines’ feeder Freya (658 TEU)
calls at Karlshamn on Saturdays. “We have started up co-operation here as we believe that
Karlshamn has a good potential to grow as a container port,” Johan Wallén, Managing Director at Team Lines in Sweden, said and further added that: “The market is there and it has
potential. There are prospering industries in the region with growing container volumes. At
the same time also the market for short sea shipping in the Baltic Sea is growing.”
tation, the ‘Sweden Denmark Express’ (SDX). The new
fixed day weekly service links the ports of Hamburg,
Copenhagen, Helsingborg and Aarhus with the use
of Jessica B (660 TEU).
PoH_184_x_118.Image_(BTJ) 11.02.14 14:23 Seite 1
2/2014 | Baltic Transport Journal | 13
t can be both romantic and very profitable. It’s where lovers go on dates, and
where big business is conducted. It can
be community-friendly or have its back
turned to the citizens, but overall it’s a crucial job-creating place. No doubt, a harbour
is a vital place to all parties concerned.
People care what is being built and what
goes on around them. To a city resident, a
harbour may mean noise and dust, but often
also a space where visions of a more comfortable or enjoyable way of living can come
true. It is therefore of crucial importance how
harbour areas are being managed and maintained, revitalized or renewed.
In a healthy relationship, the harbours
are in constant dialogue with their city, its
history, heritage and cityscape. Empty areas
of abandoned shipyards, granaries and fishprocessing factories, giant warehouses – they
can all be used in such a way that people will
wish to spend their leisure time there and feel
inspired. A very good example of this is the
renowned HafenCity Hamburg: the quays
are promenades open to the public, and old
cranes testify to the city’s impressive past
(and present), highlighting its identity.
Certainly a nice, quiet marina surrounded
by cafes and restaurants is what people enjoy.
We are also keen to spend our time aboard old
ships turned into museums. In the tragedy of
Vasa, Swedes were at least lucky enough that
their majestic ship went down just moments
after she started her maiden voyage in 1628.
Centuries later they were able to lift her up from
the bottom of the Baltic Sea and turn Vasa into
a world-famous museum in Stockholm. Its
14 | Baltic Transport Journal | 2/2014
The weakest link?
building is one of the most glorious pieces of architecture and so much more interesting when
you enter and find the royal ship in all its beauty
to admire and study in all aspects.
Belfast, Northern Ireland, turned parts of
its disused harbour into the Titanic Quarter,
with a museum dedicated to the vessel with
one of the most tragic fates. That’s not all, Belfast’s city council has turned a huge part of its
Photo: Christian Spahrbier
I
Photo: Cruise Baltic
On the roads
the only way for a happily ever after with
a port is to make sure that people, lorries
and trains can get there easily. If I need to
spend hours getting to a ferry terminal by
public transport, if a lorry driver gets lost
yet again, or stuck in an hour-long jam,
then there is no way such a business actor
can even dream of competing with a better,
interconnected port-competitor.
A valued bond between the city and its harbour, designed to enrich the
functioning of the local community, remains a challenge for city planners and
architects. Yet, the strive is there, and we’re worth it.
deserted shipyard into a film studio – and this
is exactly what brought HBO to the city. The
American television company decided to film
its famous “Game of Thrones” fantasy series
there. The enormous shipyard’s warehouse has
been turned into a giant TV set: as you enter it,
you recognize these places – the throne room,
the ballroom and the bedroom, where the characters fight, eat, and make love. The new, small
film-city within the port is giving jobs to Belfast’s make-up artists, tailors, and painters. Of
course, the whole town lives off this harbour
area: taxi drivers, restaurant owners, lumberjacks and construction workers. It is a great
example of how a harbour, or indeed the whole
city, can re-invent itself with one brilliant idea.
It’s all good when new and surprising
businesses pop up in ports. However, it
is certainly best if harbours stay alive and
continue what they’re best at doing; that is,
being the heart of the port business. Towns,
on the other hand, need to recognize that
While talking about enhanced integration, I
am not dreaming e.g. of recreating fish markets
in port city centres, where people would buy
fresh fish straight off a fishing boat. These times
are long gone, and the best you can hope for is
for the nearby supermarket not to cheat when
selling “fresh” frutti di mare. But we can still
dream that the port districts of a city, a constant
work in progress, will one day be vibrant spaces
keeping their character while bringing added
value to the whole town. The interests of an average citizen should be kept in mind, so that a
lost teenage hipster, her family, elderly people
or school children can find places such as art
galleries, clubs, parks, public squares there or in
the close proximity. New harbour areas should
be for the people and by the people. Giving everything only to big business is to lose the spirit
of co-habitation and cooperation that makes a
given city and its harbour specific and original. ‚
Sebastian Łupak
Economy
Pathways to gain
the best value
Photo: Roberto Hegeler
Scenarios for the future of transport activities
Almost six years after the outbreak of the economic crisis, it still largely affects transport activities. But growth
is the key word towards the future – at least according to OECD Publishing’s ITF Transport Outlook 2013.
U
ntil 2008, the global transport
sector was developing in line
with economic and trade growth.
Halted by the financial crisis,
trade and transport observed a significant
slowdown. Today, transport flows increase
moderately, while trade flows grow more
rapidly. Basing on current data, developing countries are the ones to watch (see Fig.
1). The figures show that whilst developed
economies are still experiencing a meaningful slowdown, the emerging regions are on
a constant increase, even beating pre-crisis
peak levels. However, for OECD countries,
growth is predicted in the long run. In the
short run (2014 and 2015), higher income
countries are thought to be regaining the
pace of GDP and trade growth and getting
close to levelling up with emerging economies. A post-crisis recovery is expected to
take place, after two more years of slowdown. The eurozone’s performance is likely
to remain on a low level.
Adjusting GDP growth to transport
needs
Uneven economic growth influences
transport activities. Maritime transport is the best example, as over 80% of
world cargo volumes are transported by
sea. Since the 2009 recession, a constant
growth in maritime transport has been
observed, as shown in Fig. 2.
Fig. 1. GDP volumes in OECD, the emerging
economies and the rest of the world [2010=100]
Fig. 2. World seaborne trade 2008-2011 [mln tn,
bln tn-mi, yoy change]
Source: UNCTAD Review of Maritime Transport 2012
Source: Based on OECD (2012), Conference Board (2012)
and IMF (2013)
Surface freight volumes reflect the current
two faces of economic growth pace. The fastergrowing developing countries observed a 19%
increase in comparison to their pre-crisis rates,
whereas slower-paced developed economies
are still at the level of 10% below their pre-2008
rates. In 2011, 58% of sea-transported cargo
had its origin in the developing countries. A
similar trend can be observed in rail freight.
Looking at the 2011 figures, the EU and Russia’s rail freight volumes did not witness a
meaningful increase in comparison to 2008,
however, they were chasing pre-crisis levels.
Russia even managed to exceed them in 2011
before noting a slight downturn in 2012. Road
freight experienced a similar trend, with the
EU-27 noting a gradual increase up until 2011.
2/2014 | Baltic Transport Journal | 15
Economy
Another expected change in freight are
the trade routes between America, Western
Europe and Asia. Future trade seems to be
in pursuit of new routes, as well as new commodity types, with possibly less concentration
on exports of electronics from China and raw
materials trade. Stability and cost reduction
are the factors that will boost these changes.
The share of rail transport is expected
to grow from 42% to 46% in the OECD,
but a drop from 58% to 46% is assumed in
the non-OECD economies. The amount of
non-bulk commodities transported by rail
is likely to decrease, as reliability and timely
delivery are becoming even more significant, despite generating higher costs.
Other prospects of OECD Publishing
say that economies which are rich in natural
resources are still expected to be subject to
demand for their exports. Economic output
is likely to double in the transition economies of Eastern Europe. Transport infrastructure is in constant development and it
is a factor that broadens the economic reach
of the hinterland both in Europe and Asia.
A good example is the Iron Silk Road project which is designed to allow countries to
make use of trade flows between Asia and
Europe with reduced delivery times, compared to maritime transport.
It is expected that with a rise in GDP, the
relation between GDP and freight will not
be as strong in developing countries as is observed now. Further dematerialization of production is expected – service sector shares and
an increase in lighter weight goods like electronic devices will be more frequent within
developing economies. There is a significant
correlation between GDP and tonne-kilometres transported. The highest scenario presented by OECD Publishing shows GDP growth
and a correlation with transport, while the
lowest scenario presents strong decoupling
and lower GDP growth. Decoupling strongly
affects high income countries: EEA and Turkey, North America and OECD Pacific. For
middle income and lower income economies,
scenarios predict stronger decoupling in the
future. For low income countries, outcomes in
the cargo transport sector are not easily predictable, as those economies are particularly
liable to changes in future growth paths.
Double-checking investment needs
All scenarios show that investment in
transport infrastructure can add up to productivity and output growth. We are in need of
constant investments, since development leads
to more demand for movement of people and
goods. However, not every investment should
be automatically correlated with strong output
growth. In advanced economies, institutions
responsible for project selection sometimes
fail to make best use of investment funds. The
political economy’s pressure is one of the factors that affects project selection and reduces
social returns on infrastructure investment and
from general transport policy. It is also believed
that investment decisions rely too heavily on
the supply of general purpose infrastructure,
assuming that usage will be approaching if
general economic conditions prove to be favourable. This situation may have its reflection in the activity of large infrastructure users,
such as big companies, that can make claims
how infrastructure should be organized in order for them to invest. There has been some
concern about too much investment in some
emerging economies, such as China, and that
developed economies have become excessively
consumption-oriented.
In emerging economies, investment in
transport and infrastructure has its role in
economic development by establishing connectivity. On the other hand, there’s a risk of
overinvestment. Growth and social returns
should be balanced in the long run. Larger
social returns may be achieved inexpensively
by better pricing, as its structures are key to
the efficiency of infrastructure use.
Advertisement 16 | Baltic Transport Journal | 2/2014
Economy
In developed economies, maintaining
or improving the quality of infrastructure to
meet higher expectations is likely to require
a higher financial outlay on maintenance
and upgrading, as networks age. It is crucial
in such regions as the Baltic Sea, where both
developed and developing countries form
unified transport networks and integrity is
sought. Delaying maintenance means that
future costs are likely to be higher than any
savings on current costs.
One of the proposed solutions for the future of transport investments is to evaluate
strategies, not just projects. Long-term plans
are most desirable while, at the same time, it
is crucial to observe the pathways that offer
the best value for money. Another discussed
issue is the pricing of road use and parking.
Policy alternatives should not be limited to
building new infrastructure. Moreover, a wide
range of benefits, such as travel time, reliability and comfort of travel need to be taken into
consideration.
Investment efforts in advanced economies are not always sufficient, e.g. in Germany road infrastructure investments have
declined in recent years while freight traffic
has increased. It is predicted that infrastructure investment could take twice the share
of global output in 2030, compared to 2008.
Funding remains a challenge
In developed economies, public awareness of the social returns on infrastructure
should be raised. Social benefits need to be
emphasized, while at the same time not ignoring the negative impacts, such as pollution or congestion. What is still needed for
further investments is the public acceptance
of selective expansion of capacity. Funding
mechanisms for transport need to be socially acknowledged as fair.
One of the ideas is to deploy congestion
charges more widely than now. Potentially
a socially-accepted idea, it can generate
significant revenue. Another possible solution includes distance-based charges, in
contrast to the current system of charging
transport operators. Furthermore, considering the environmental factors, fuel economy improvements and CO2 reduction
efforts may not only be beneficial to the
environment, but also decrease fuel consumption. The fuel tax base is expected to
be one-third less in countries like France,
Germany and the US by 2050. Depending
on the transport mode, user charges are to
a certain extent expected to oust fuel taxes,
however, this would require some time.
Not all countries or transport modes are
ready for the change in the coming years.
Current funding practices rely on pay-asyou-go solutions from general budgets and put
heavy focus on annual public budgets. Therefore, the method poses a risk for insufficient
maintenance and weak connections between
allocated funds and the expected benefits in
general. Committing to reliable funding flows
for infrastructure hands over possible financing of infrastructure in an efficient way, including financing from the private sector. This
involvement can extend beyond finance, for
example to public-private partnership initiatives (PPPs). It is considered to be an alternative to government funding, as government
budgets tend to be tightening. Institutional
investors are a potential source of equity for
investment in transport infrastructure PPPs
but they are reluctant to risk and will only be
drawn-in gradually. Overall, the impact of
PPPs is limited, they are expected to relieve
public budgets in cases such as offering cost
savings through innovation or facilitating the
introduction of new funding instruments. But,
if compiled with other aforementioned investment and funding options, the prospect of
developing transport activities is truly promising. The sole, yet essential requirement, is the
proper choice among the options listed.
‚
Bartosz Dąbrowski
SHORTER DISTANCE & SLOWER SPEED
between Finland and Germany
Thanks to the shorter distance and slower speed over the Baltic Sea, SOL can offer new alternatives reducing carbon footprints. From 1 January 2015 this will be even more important
when transporting goods on northern European waters. New EU legislation states that
fuel oil for ships can have a maximum 0.1% sulphur content, compared with today’s 1.0%.
This could increase fuel costs by over 50% according
to several independent reports.
Hangö
▼
Rostock
Hangö – Rostock: the shortest distance between Finland and Germany,
saving both time and mileage. With departures each way 4 days a week,
SOL Continent Line gives you various competitive benefits, including
strategic intermodal transport systems and easy access to the Autobahn.
2/2014 | Baltic Transport Journal | 17
Join us now and get ready for 2015! For more information and booking, visit www.solcontinentline.com
Maritime
Guidelines to proper use of ships’ gear
Photos: Liebherr
Staying safe all the time
The use of unsuitable or unsafe ships’ gear for cargo handling risks death or serious injury. Damage to the lifting gear
itself, other parts of the ship and/or to the cargo being handled is also a possibility. Incidents have arisen through a
lack of maintenance or repair, and unsafe and unfit conditions for use. Inevitably, when something goes wrong, the
ship will seek to blame the stevedores, and vice versa. In order to gain some clarity in advance, who should do what?
A
lthough the majority of the world’s
ports provide shore-side cranage,
it is still necessary in some facilities
to use ships’ gear to load/unload
goods. We focus here on lifting appliances,
such as derricks and jib cranes located on
the vessel. Whilst all kinds of ships’ ramps,
both external and internal, are classed as access equipment, the means to lift and lower
them is classed as lifting equipment. Any
gear provided by the stevedore will be subject
to national port or general safety laws on that
subject. However, the differing standards
relating particularly to maintenance and inspection can be bewildering.
Anyone intending to use ships’ gear needs
confidence that it is maintained as intended in
the manufacturers’ instructions. Equipment
failure in a simple task such as loading ships’
stores can lead to serious injury – such an
occurrence led to the death of a stores barge
skipper recently. A similar failure with a cargo
crane could lead to a multiple fatality incident
and/or serious freight claims.
What is the safety standard?
The international standard regarding
ships’ gear is contained in the International
Labour Organization’s (ILO) Convention 152
on Occupational Safety and Health (Dock
Work), but as this has only been ratified by
26 maritime states it can hardly be viewed as a
global requirement (albeit some jurisdictions
have independently implemented its provisions). The Convention, however, specifies
18 | Baltic Transport Journal | 2/2014
that every item of lifting gear must be tested
when new, or when repaired or modified so
that its lifting capacity may be affected, and
given a thorough examination. When in service, it should be given a thorough examination at least once every 12 months. In addition, every lifting appliance on-board a ship
must be tested every five years.
Apart from ILO’s 152 not being implemented globally, there may also be a divergence
between the applicable laws of the flag state and
the port state. However, unless otherwise provided, where the ship is to be discharged/loaded
by shore-side personnel, it is normally the laws
of the port state that take precedence.
Under the ILO’s Code of Practice on
‘Safety and Health in Ports’, published in
2005, the shore-side employer, whose employees will use an item of a ship’s lifting gear,
is responsible for checking that the gear’s
register (or other documents) is in order and,
importantly, to check that the gear itself, as
far as can be ascertained, is safe to use.
The international inspection and examination regimes for ships’ gear have been
called into question recently. Concerns about
failure of ships’ lifting appliances for a number of years have led to calls for the International Maritime Organization (IMO) to legislate for inspection and examination routines.
The proposal is to make them part of the
SOLAS (the International Convention for
the Safety of Life at Sea) legislation and not
just a requirement of national and regional
laws. Nevertheless, there is a divergence of
opinion amongst the parties at IMO, which
means that a clear safety solution is unlikely
to emerge for another few years.
In addition, there is also a misconception
that classification societies “regulate” such inspections, but this is not so. Estimates reveal
that perhaps only 3% of the global fleet is covered as it is not a mandatory requirement.
Call to action
The recent submission to the IMO detailed over 100 specific incidents that have occurred in recent times. One serious incident in
South America led to the death of three port
workers when a pedestal crane failed just three
weeks after examination. This clearly calls into
question the effectiveness of these examinations and whether the personnel carrying out
the work is competent to do so.
However, the debate at IMO at present
centres in part on the availability of consistent and comprehensive incident data.
In particular, it is felt that there is insufficient understanding as to where the root
risk really lies – is it related to design and
construction of the gear, or more emanating
from maintenance and operation?
Concerns over examinations and crew
preparations for them also led the UK P&I
Club, in conjunction with Lloyd’s Register
and two crane manufacturers (MacGregor
and Liebherr), to produce a guide to ‘Survey
and Examination of Ships’ Lifting Appliances’ which was published in 2011 and is freely
available (to be found at www.ukpandi.com).
Maritime
Safe procedures and thorough checks
All ships are required to carry a ‘Register
of Lifting Appliances and Cargo Handling
Gear’, which should include a full set of certificates for all appliances and gear in use
on the ship, and maintenance and service
records should also be available.
Depending upon the age of the ship, the
quality of its records and the condition of
its gear, this checking process may not take
very long. Regular ship callers will be familiar with the port state requirements and this
will also facilitate speedy checks. Inspections need only be carried out on the gear
which is intended to be used, obviously. In
some instances, a simple check will suffice,
whereas there will be situations in which
more extensive examinations will be justified. Stevedore companies should ensure
that only experienced employees, such as
gang foremen, should carry out the checks.
If necessary, training may be needed, but
adequate checking of the actual gear itself
calls for experience.
The importance of the checks themselves is matched by the nature and rigour
of the procedures that need to be in place. A
horrific accident occurred when a pedestal
crane was tested under near full load with
numerous personnel in attendance; when
the bolts holding down the structure failed,
not only were the crane and load written off,
but there were several fatalities.
Principles to follow
First, inspect and ensure that the ‘Lifting Gear Register’ is up-to-date, and all the
associated test certificates are available, not
forgetting those for loose lifting equipment
that might be used for the operation (such
as slings, shackles, chains, etc.). Take particular care where the anticipated activity is
with heavy lifts and project cargo that may
have specialist lifting rigs or frames to be
used with the cargo.
Carry out a visual inspection of the lifting
equipment, preferably by someone who is experienced and competent. Take care to inspect
the anchoring arrangements for hoist wires
on the wire storage drum itself; if in doubt, or
something doesn’t look right, call in an expert
lifting company for a professional opinion.
Make sure the operating position is
clean and visibility is clear, with adequate
protection from the weather, and there is
safe access to the equipment. Test the crane
through its full range of operations and
ensure limit switches are working as well
as never overload the crane or equipment
past its safe working load which should be
clearly marked.
Assure that the operation, cargo and
ambient conditions have been fully risk assessed and communications between the
parties are effective and understood; ensure
everyone involved in the operation understands what is going to happen; anyone not
involved should be kept away.
And finally, when stevedores are operating the ship’s lifting equipment, make sure
that the operator has been properly trained
and that he/she has been shown the controls
by a responsible ship’s officer.
Following these basic principles for every operation will go a long way to ensuring
that there are no incidents that endanger life
and/or freight. ‚
Peregrine Storrs-Fox
TT Club’s Risk Management Director
TT Club specialises in the insurance of intermodal operators, non vessel owning common carriers, freight forwarders, logistics operators, marine terminals, stevedores, port authorities and
ship operators. The company also deals with claims, underwriting, risk management as well as
actively works on increasing safety through the transport & logistics field.
2/2014 | Baltic Transport Journal | 19
Maritime
There’s no progress without people
Interview with Janusz Jarosiński, President of the Managing Board of the Port of Gdynia
For the past years the Port of Gdynia has been undergoing a continuous transformation and emerged from
it as a truly modern entity. We talk with Janusz Jarosiński, the port authority’s CEO about these changes, the
market trends and outlook as well as port’s dialogue with the local community.
Photo: H. Sagan
Answering this question, one should distinguish between pure ro-ro and ro-pax traffic,
when looking at the market. Naturally, we are
observing the course of events with a certain
degree of concern. However, as far as ferries
are concerned, we are talking about NorthSouth routes (such as the Gdynia-Karlskrona
connection), for which alternatives are very
limited. One may certainly imagine a truck
driving west, instead of embarking in Karlskrona, then crossing the bridges southwards
through Denmark and Germany, heading
for Poland. But let’s be realistic: this variant
is neither time- nor cost-effective. Furthermore, the traffic between Poland and Scandinavia is growing; we are full of hope for the
development of Polish hinterland infrastructure, since better roads and a dense motorway system allow for a more intense transit
traffic. I do not think the EU Sulphur Directive will change the frequency or the volume
of the North-South cargo flows for the worse.
The situation is different in the case of the
ro-ro market, which is not as vibrant as
the ferry market. There is no such high dynamic in terms of calls to the port or cargo
volumes in this category, therefore we are
not expecting any sudden boom here. What
bothers us is how the EU Sulphur Directive
20 | Baltic Transport Journal | 2/2014
will change freight rates, thereby affecting
the competitive position of the sea transport. In the case of ro-ro, alternative solutions are available – e.g. instead of taking
the Helsinki-Gdynia route, one may choose
the connection to Tallinn and cover the rest
of the distance on land. This may have an
adverse effect on our port’s turnover.
start planned for the end of 2015. The new
facility will be integrated with an intermodal
terminal, since we are expecting many of the
cargo units to continue their journey by rail.
Furthermore, our efforts to reinforce the Port
of Gdynia include consistent development of
the logistics and distribution facilities, modernization of the Gdynia Port railway station,
Photo: T. Urbaniak
‚ We are closer and closer to the enforcement
of the EU sulphur regulations in our region. How will the caesura of 2015 change
the Baltic Sea’s ro-ro & ferry market?
‚ How does the port prepare for this as well
as other changes to transport, like e.g. the
average growth in ship size?
It is best to act well in advance. The Port of
Gdynia is in principle in its last phase of designing a strategy for the years until 2027, adjusted
to the EU 2014-2020 and 2012-2027 budgets.
The trends observable on the container market are clear; prospectively, ocean-going vessels – mainly those operated by the Far-East
companies – will be increasingly willing to call
at the Baltic Sea ports. In Gdynia, the possibility of receiving long container ships is still restricted. The first and necessary step taken with
the aim of remaining among the first league of
Baltic container ports was the acquisition of the
Gościnne Quay. Demolition of some of its piers
will enable the turning basin’s diameter to be
expanded. The projects, intended to enable our
port to receive bigger vessels – container ships
(even up to 384 m), bulk carriers (three stands
for the largest vessels entering the Baltic Sea)
and ferries, reflect an important trend in our
development. Currently, a new ferry terminal
is being designed, with the construction phase
expanding the share of railway in carriage of
freight leaving the port, improvements to the
alternative railway line from Gdynia and – obviously – reclassifying the Trasa Kwiatkowskiego highway into the national road category,
to increase the allowable weight of trucks.
‚ Is it a good business strategy for competing
ports situated close to each other, to operate under joint port authorities? What do
you think of merging Gdynia and Gdańsk
into an integrated port organization?
There are only a few examples of such close
co-operation throughout Europe. Giant Belgian, Dutch or German ports are situated
very close to each other but they still operate
as separate structures. While collaborating to
a certain extent, they behave like competitors
first of all. The way how the ports of Gdynia
and Gdańsk are structured now is optimum
in terms of market requirements. The fact
that we are two separate business entities
mobilizes us to act promptly and the competition between us is very sound. Each of us is
striving to attract as much freight to Gdańsk
Maritime
Bay as possible and the market offers enough
to satisfy the expectation of both ports.
‚ How does the Port liaise with the local
community?
We need to be sincere about the opportunities and threats resulting from the port’s activities for the city of Gdynia and the entire
region. The port provides jobs to thousands
of people in the port itself, to freight forwarders, shipowners, shipping agents, creating an
employment chain, which extends far beyond
here. The city benefits directly from some of
the port’s investments, such as development
of the road system (e.g. the modernization of
Janka Wiśniewskiego and Polska Streets was
co-financed by the EU, but the Port Authority
provided 100% of the required domestic contribution). Pomorskie Quay, Gdynia’s showcase, where the beautiful sailing ships Dar
Pomorza and Dar Młodzieży are mooring, is
one other example of the value the port adds
to the town. The Port of Gdynia is situated in
the heart of the city and we are aware of the
fact that the operations cannot be transferred
anywhere else. This situation has both advantages and disadvantages, but we are doing our
best to minimize the latter. Śląskie Quay can
be given as a good example: formerly a place
of coal handling, it is now where a new grain
and animal feed storage facility is being built.
Thereby coal – the cargo causing relatively
much inconvenience – has been moved away
from the city centre and the warehouse has
become a buffer separating the area to be developed in the future. Besides, we are monitoring the noise and pollution levels, as well as
the quality of water on a current basis, so as to
meet all of the environmental requirements.
We have also arranged a 500-seat concert
hall in the Port Authority building, where
we now organize events for adults and for
children just as well. It is not infrequent
that nothing but children’s twittering can
be heard in our building until lunchtime,
which is very uplifting. With this project, the
residents of Gdynia have gained easier and
cheaper access to culture. Furthermore, we
are sponsoring the Gdynia City Theatre and
the Musical Theatre and provide financial
support to the local women’s handball and
basketball clubs. Our intention behind these
activities is to bring the port to the attention
of those citizens of Gdynia who do not work
in the port business and to show that the entire community may benefit from the fact
that an institution like this exists in the city.
Let us remember that the city of Gdynia owes
its existence namely to the seaport.
‚ The transport sector in Europe has been
experiencing a decline in employment
for a few years now. Are you worried
about this trend?
In 1991, some 8-9 mln tn of cargo was handled
in the Port of Gdynia, with the employment
adding up to 7,000 people. Today, our freight
turnover is twice as much, while the employment totals 1,800. This shows the extent of
overstaffing in the past years, but also gives evidence to technological progress, the immense
changes in the organization of work and in productivity, which has enabled us to do more and
faster, but employing less hands. This is what
the market requires: to remain competitive we
simply have to implement any innovation that
may improve our performance. The port works
in close liaison with the Gdynia Maritime University and the University of Gdańsk. Together,
we are trying to predict the future demand for
specific professions. The Port Authority proper
employs 300 people, or to be more precise – enthusiasts. There can be no development without
people who are integrated within the company,
who share a sense of responsibility for its wellbeing and who are building its future together.
We are lucky to have namely such people.
Lena Lorenc
2/2014 | Baltic Transport Journal | 21
Trelleborg
BA
Travemünde
Rostock
GERMANY
NL
Amsterdam
LT
A
E
S
The direct
SWEDEN
SW
way for your
freight
IC
´
Swinoujscie
´
POL AND
Berlin
Brussels
B
Prague
TSCHECHIEN
Faster to Scandinavia with TT-Line:
Drive-through system ¬ 6 RoPax ships ¬
up to 18 departures daily ¬ more than 35,000 lane metres
Wien
Bern
SCHWEIZ
SLOWA
Bratislava
Budapest
ÖSTERREICH
SLOWENIEN
TT-Line Cargo, Zum Hafenplatz 1, 23570 Lübeck-Travemünde, Germany
Phone +49 (0)4502 801-149, Fax -174, [email protected], www.ttline.com
UNGAR
Zagreb
KROATIEN
1814 TT Cargo 205x270 4c.indd 1
17.04.14 18:02
Report
Baltic ro-ro & ferry market
Baltic ro-ro & ferry affairs 2013-2014
Photo: Kate Isaac
Forced
evolution?
One might say that 2013 and the first few months of this year passed under the common title “business as usual”,
however, after a second or two, it can be seen that many actions were SECA-propelled. Betting is in full swing, here
and there before the 2015 race begins. Fjord Line, Viking Line and UECC are placing their bets on LNG; Color Line,
DFDS Seaways and TT-Line joined the scrubber fellowship, Stena Line probes methanol, while others are either
sticking to the wait-and-see attitude or, like UPM Seaways and Kattegatruten, are leaving the ro-ro business.
H
erbert Spencer, after reading the
On the Origin of Species, believed
that evolution leads to the survival of the fittest. Will this be the
future of the Baltic ro-ro & ferry industry
thanks to SECA? Hard to say. Many hope
that the market in tandem with bureaucracy
– in what seems to be a forced evolution –
will guarantee the best outcome and a fair
playing field which takes into consideration
the interests of the shipping sector, the environment and public health. Naive or not?
Ferry tales
Year 2013 was indeed a ferry year, bringing a mixture of good and bad (depending
on who’s telling the story). Last year began
with a blast for Viking Line, which launched
the much-awaited first Baltic (and the
world’s) Liquefied Natural Gas dual-fuelled
cruise ferry Viking Grace, accompanied two
months later by the LNG bunker vessel Seagas of AGA, also the first of its kind on the
Baltic Sea. Later on in April, Tallink Grupp
and Viking Line came to an agreement on
the purchase of the ro-pax Isabelle, previously sailing on Viking’s Turku-Stockholm
route and now on Tallink’s Riga-Stockholm
one. Last, but not least, at the beginning of
this year, Viking Line reflagged the Viking
XPRS ferry (Tallinn-Helsinki) from the
Swedish to the Estonian registry in order to
cut crew expenses and align them more to
the level of the Hel-Tal competition.
Saying a bit more about LNG, in July
2013, Fjord Line’s Stavangerfjord joined the
club; however, in opposition to Grace, the
Norwegian vessel runs solely on gas. Nonetheless, the final deliverer of Stavangerfjord, the
Bergen Group Fosen, encountered numerous
problems and was unable to deliver the ship as
planned – the ferry was to enter into regular
service on May 29th, but that date was postponed to June 21st and then later to July 14th.
On the other hand, her sister ship Bergensfjord, set sail after successful tests on March 17th
– two and half weeks earlier than planned, so it
seems that Fjord Line and particularly Bergen
2/2014 | Baltic Transport Journal | 23
Report
Fosen learnt their lesson. And more recently,
in January 2014 Polsteam, the owner of Unity
Line, sent out letters of inquiry to shipyards
regarding construction of new LNG-driven
ferries, while in March 2014 United European
Car Carriers (UECC) ordered two brand new
dual-fuel (LNG/heavy or marine gas oil) 3,800
capacity Pure Car & Truck Carriers with 1A
super Finnish/Swedish ice class for Baltic traffic, to be ready in the second half of 2016.
Getting back to the calendar, from the
start of January 2013, PowerLine’s Helsinki-Travemünde ro-ro line became a part of
Finnlines’ network. Also in January, Finnlines hung up passenger traffic on its GdyniaHelsinki route; such situation was meant
to last until March, but the rotation is still
purely ro-ro. In October, Finnlines added
an additional call on weekdays to the Port of
Långnäs (Åland Islands) during morning departures of the ‘FinnLink’ rotation.
The very beginning of 2013 also brought
changes to TT-Line. First, entrepreneurs
Arend Oetker and Bernhard Termühlen
took over all the shares (50/50) of the ro-ro
& ferry operator. Ten months later, in November, they decided to have the ro-pax
Robin Hood retrofitted with Wärtsilä’s hybrid (open/closed loop) scrubber system;
the project is co-financed by the European
Union through the TEN-T Motorways of Sea
‘Green Bridge on Nordic Corridor’ initiative. And since the start of 2014, TT-Line has
had a new route in its portfolio, between the
ports of Świnoujście and Trelleborg, served
by the ro-pax Nils Dacke (2,400 lm for cargo
and space for 300 passengers). However, TTLine shut down its Rostock-Helsingborg line
in December 2013. Staying in the area, in
February 2013, Polferries moved its ro-pax
Baltivia from its Gdańsk-Nynäshamn route
to its Świnoujście-Ystad rotation.
In February 2013 too, Sweden’s Land and
Environmental Court of Appeal announced
that it would not grant a hearing to the appeal
against port and water operations at Kapellskär. With nothing standing in the way, the
rebuilding of the Swedish port kicked-off in
November. Tobias Kednert, Project Manager
for the Port of Kapellskär development project
commented: “The whole port area will be larger
and more efficient. One challenge throughout
the entire project will be that traffic shall run according to the usual timetables and operations
shall function as normal.” All of the rebuilding
work is planned to be completed within three
years. In June the Ports of Stockholm broke the
first spade in the reconstruction of the Värta
Pier. Sten Nordin, Stockholm’s Commissioner
of Finance and the Chair of Stockholm City
Council, highlighted: “The new Värtahamnen
will make it possible for us to build homes,
24 | Baltic Transport Journal | 2/2014
Catarina Fant
Wasaline’s Sales and Marketing Director
On January 1st, 2013, the company took over the Umeå-Vaasa ro-pax line from the
bankrupt RG Line. How do you assess the first year of operations? What are the
company’s plans for 2014 and particularly for the 2015-SECA year?
The first year for Wasaline was indeed a good one. We had over
150,000 passengers on the route in question, which was a huge
growth in comparison to the previous year with RG line; however, we
cannot compare the figures so directly, as the ship we have is more a
cruise ferry, when RG Line’s was more of a cargo vessel. Nonetheless, when it comes to freight
transportation, there was a slight increase, too. Regarding the SECA challenge, we are investigating different time schedule and prices options, but nothing has been decided yet.
Is Wasaline satisfied with its ship or are there maybe plans to shift onto a more modern vessel to better serve the market?
Yes, M/S Wasa Express is an old lady, but she is well suited for the Umeå-Vaasa route. We have everything we need on-board for short cruises, incl. restaurants, a bar, shops and cabins. There is a plan to
have a new ship built for this route, but for the coming five years we will carry on with Wasa Express.
offices and new commercial buildings in the
centre of the city. At the same time we will have
a new port and a welcoming passenger terminal
for the millions of people who sail to Finland
and Estonia on cruises from Värtahamnen.”
The opening ceremony of the new terminal
will take place in 2016; the project also received
EUR 14.05 mln from TEN-T funds.
In April 2013, Mols-Linien’s newest lightweight fast catamaran, KatExpress 2, ended its
journey from its birthplace in Tasmania, and
entered into Danish service in May. Mols-Linien is pursuing its strategy of offering high speed
travels both for passengers as well as freight as
direct competition to the nearby bridge. The
new catamarans mean more GT but lower fuel
consumption. And while others set aside such
vessels, Mols-Linien is placing a ‘scale effect’ bet
on them (the new catamarans are 2.5 times bigger than the ships withdrawn; KatExpresses 1 &
2 are the largest fast catamarans in regular ro-ro
& ferry traffic in Continental Europe).
Also, in April of last year news about a rail
terminal in the Port of Karlskrona poppedup for the first time, still, we had to wait until
November to hear more concrete information
concerning this venture, when Stena Line (the
owner of the Karlskrona Baltic Port), Logent,
Green Cargo and the Karlskrona Municipality announced the set-up of an intermodal
terminal in the harbour. The official opening took place on the last day of March 2014.
Stena Line, Logent and Green Cargo now also
offer a ‘Three Links’ service which combines
rail & sea transportation; trailers or containers can be dropped in one of the network’s
terminals in the whole of Sweden as well as in
Oslo and picked up in Gdynia – or vice versa
– all through one combined service & invoice.
Speaking of Stena’s Gdynia-Karlskrona connection, its freight capacity was first reinforced in July 2013 with Stena Alegra (1,950
lm), yet the vessel appeared to be troublesome.
In the end, Stena Alegra was replaced by the
new Stena Baltica (2,188 lm) in November.
Stena Line has also signed new port agreements – first with Gothenburg in November
2013, and then with Frederikshavn in February of this year. The new deal in Gothenburg
is the result of a decision from October 2012,
when a 25-year agreement was terminated
with effect from December 31st, 2014. According to the new arrangements, the Denmark Terminal at Masthugget will run for five
years; in 2020 the area will be handed over to
the city. In the meantime, the eastern part of
Masthugget (a 100 m long area along the canal
at Rosenlund) will be given to the city already
in 2015. The German Terminal at Majnabbe
will be run by Stena for the next 10 years
with the option to extend the period. On the
other hand, Stena Line and the Port of Frederikshavn’s agreement focuses on developing
ro-ro & passenger traffic at the Danish port;
some of the existing facilities in the port will
be torn down, in order to: “Free up additional
areas for our freight handling and improve the
scenic value of the area at the same time, to
give our passengers a different experience as
part of their trip with Stena Line,” as Magnus
Hallberg, Managing Director of Stena Line
Danmark, puts it.
With regard to the new sulphur regulations, Stena Line is following its own methanol path. The company will benefit from the
TEN-T EUR 11.25 mln support which was
given to the ‘Methanol: The marine fuel of
the future’ project, covering real life trails
with retrofitted ro-pax vessel Stena Germanica. Additionally, the test phase will also create appropriate port infrastructure (bunker
vessel & storage tank) in both Gothenburg
and Kiel (between which the ferry sails).
Returning to the calendar – on April
22nd Swedish Orient Line sailed for the last
time on the Helsingborg-Travemünde ro-ro
line. Ragnar Johansson, Managing Director of SOL Continent Line, said: “Market
volumes have fallen, the direct rail services
between Germany and Sweden have taken
Photo: Tallink Grupp
Photo: TX Logistik
over a share of the market and now we can
see a definite transition from trailers to
units requiring drivers. All in all, this has
led to continuous reductions in our volumes. The altered service with one vessel
operating since the middle of March has admittedly received support from many loyal
customers but we are now forced to accept
the fact that the present volumes are not sufficient.” The shipping line continues to run
the Rostock-Hanko ro-ro link, bought from
Scandlines back in 2012.
Puzzling in this context is the cancellation (July 2013) of Kombiverkehr’s DuisburgHelsingborg rail kombi service. According to
the company, this step was necessary because
of the anticipated growth in volumes and
price acceptance for transports to/from Sweden have fallen below expectations, and it is
not commercially feasible to continue offering
this product in the future. On the other hand,
Kombiverkehr offers a Helsingborg-Wanne
kombi service too, where Wanne is just a
stone’s throw from Duisburg. Notwithstanding, in February 2014 Kombiverkehr launched
a new rail link for trailers, containers and swap
bodies from the Port of Kiel to the dry port in
Duisburg. The 500 m long block train runs
three times per week, between two terminals
in Kiel and the DUSS Terminal in DuisburgRuhrort. Duisburg (Hohenbudberg) was also
linked in May 2013 to Lübeck/Travemünde
by European Cargo Logistics through a new
block train, running six times per week in
both directions and enabling a turnaround on
the same day. Another German port, Rostock,
has been hosting a kombi service since the
middle of December 2013 as well. DB Schenker Rail provides a round-trip twice a week
between the port and Domodossola in Italy.
In May 2013 Samskip Van Dieren introduced
a new rail rotation, namely between Duisburg
and Älmhult in Sweden (transit time 15 hours;
linehaul services for the new train to and from
Älmhult are provided by Hector Rail), whereas in October, a Duisburg-Odense-Copenhagen rail shuttle joined Samskip’ portfolio.
In May 2013, DFDS Seaways again increased the frequency of its GothenburgBrevik-Ghent ro-ro connection from five to
six sailings per week. More or less at the same
time, DFDS announced an investment plan
aimed at upgrading the ro-pax vessels Pearl
Seaways and Crown Seaways, sailing between
Oslo and Copenhagen; the EUR 16.1 mln upgrade is mainly directed towards on-board
passenger areas, but also includes ships’ technical improvements. In July, DFDS Seaways
acquired 100% of the shares in the Swedish logistics company Karlshamn Express
(a major customer on DFDS’ KarlshamnKlaipėda route) as well as the remaining 50%
Photo: SOL Continent Line
Report
Jens Kirketerp Jensen
Managing Director at the Port of Hirtshals
It seems that by investing in railway infrastructure, Hirtshals port aims at becoming a sea-rail junction point for Norway-Denmark ro-ro traffic. How big a portion of
this traffic do you expect to shift from roads onto rails?
Thanks for your interest in the Port of Hirtshals and the growth and
development that we are experiencing. Indeed, in 2013 the port
made new records in annual turnover and traffic volumes. For the
time being, we are proceeding with the planning of a rail freight
terminal as well as working on environmental issues, so that the construction works can start
at the end of Fall 2014. We expect the new terminal to be finished in the summer of 2015.
The rail freight terminal will be a part of the future development of the Port of Hirtshals. In the years
to come, we expect the port to become a turntable for ro-ro traffic in Scandinavia. In the near future,
it will be possible to optimize cargo traffic using our port, where there will be a possibility to choose
between sea, road and railway depending on which one of them is the most cost- & time-efficient.
The Port of Hirtshals expects that 10-20% of the cargo volume passing through the port will
shift onto rail. This volume equals the same level as the expected growth in freight traffic in
the coming years. The increase in cargo volumes will therefore mainly be related to the railway.
Up-to-date, construction of the rail freight terminal is in the planning phase, but the cargo market
is already now showing great interest in the new facility. We find it realistic that this terminal will
be one of the key driving factors in changing the logistics pattern in Scandinavia in the future.
2/2014 | Baltic Transport Journal | 25
Report
Gert Jakobsen
Vice-President, DFDS Group
The company has decided to invest heavily to install scrubbers onto its ships to deal
with the stricter requirements of SECA. What competitive advantage will DFDS
have thanks to this scrubber programme?
The investment is probably going to be even as much as EUR 100
mln in total for scrubbers on 20 of our ships. With this we believe
that we will be among those best prepared for the new sulphur
regulations, but as regards competition, we believe that the major
competition we have to meet, will be the option to choose the road instead of the sea for
transport. With the scrubbers we can reduce our costs compared to using marine gas oil, and
therefore be more competitive against road transportation. However, we can’t put a scrubber on all ships, and there will still be some routes that won’t have the financial strength to
survive the extra costs imposed on shipping by the Sulphur Directive. In our network, we are
currently investigating a few routes in relation to their future. As it stands now, four to seven
links in our total network of 27 routes in the Baltic and the North Seas as well as in the English
Channel need to be further analysed before we can conclude on their future options.
DFDS has a monopolist status regarding regular ro-ro traffic with Lithuania. In your opinion how will the German/
Danish/Swedish-Lithuanian markets develop after the introduction of SECA?
We do not see us as having a monopoly. We are in fierce competition with road haulage, and
transit cargo can choose other sea routes, for example to Estonia or Latvia, as well as other
modes of transport. Obviously, there will be a new market situation because of the higher
costs for ro-ro transport, with or without scrubbers, and this may cause some consolidation in
the traffic in general, on sea, road and other modes. But it is a very difficult situation to predict
because of other factors such as the current Ukraine-Russia situation and the ban on export
of pork to Russia may also affect the market development
of the share capital in the associated company
Karlshamn Express Baltic SIA.
In August, the company closed down its
Sassnitz-Klaipėda connection; Anders Refsgaard, Vice-President of DFDS Seaways, explained: “We have fought hard to get new customers and improve revenue and profit, but
unfortunately without success.” He also added
that with the outlook on continued decline in
profits, and in light of the new sulphur regulations, DFDS does not believe that it will be possible to turn the tide on the crossing. In turn,
in October, the company moved its ro-pax
Kaunas Seaways from the terminated route to
the Kapellskär-Paldiski connection, additionally increasing the Swedish-Estonian rotation
from six to seven calls per week. On the other
hand, DFDS’ competition on the Sweden-UK
market – North Sea RoRo – dropped the shipping business in March 2013, leaving the volumes to be fished again by DFDS.
Naturally, the spectre of the Sulphur
Emission Control Areas hangs over DFDS
Seaways as well, so the company decided to
join what seems to be the scrubber fellowship. In August 2013, DFDS inked another
EUR 42 mln for scrubber installations. All in
all, 20 of the company’s vessels will have such
a system for a total price of over EUR 100
mln. Color Line, offering a ro-pax network
between Germany, Denmark, Sweden and
Norway, decided to join too and contracted
Wärtsilä to retrofit its open loop scrubber systems on four vessels – SuperSpeed 1 & 2, Color
Magic and Color Fantasy. The European Union is also supporting the scrubber technology – a EUR 13.6 mln (50% EU-financed)
26 | Baltic Transport Journal | 2/2014
‘Pilot Scrubber’ project will look into a new
generation of lightweight scrubber solutions.
Full scale tests will be carried out using scrubber retrofitted ro-ro vessels of TransAtlantic
and Wagenborg, operating in the Baltic and
North Seas. The initiative will also verify and
evaluate specific port infrastructure, preparatory investments and financial mechanisms
needed for market implementation of the
new generation of scrubber technology (end
date: December 2015).
May 2013 witnessed the first year of ERS
Railways’ Swarzędz-Rotterdam kombi rail
link. One month later the company increased
its frequency from three to five departures
per week, whereas in September ERS Railways added a new, sixth departure. In Rotterdam trains stop directly at the Europoort
ferry terminal as well as at Rail Service Centre Rotterdam. At Europoort, the arrival of
the train is synchronized with Stena Line’s
departures to England. The latter company
also markets the Swarzędz-Rotterdam rail
connection in relation to its Gdynia-Karlskrona ro-pax service, so it is possible to make
a semi-trailer or a swap body ferry-road-rail
combined trip from Sweden to the UK.
In July 2013, a new chapter in Scandlines’
(order)book on new ferries for the GedserRostock route was written. The ferry operator signed a letter of intent with STX Finland
Rauma for the construction of two brand-new
vessels, but the shipyard went out of business,
leaving Scandlines with nothing. In the end,
the company returned to P+S Werften and
bought back the unfinished (and too heavy)
hulls of the Berlin and Copenhagen ro-paxes
for EUR 32 mln from the liquidator of the
shipyard. Scandlines is currently looking for a
place which will give the ferries a new lease on
life. In the meantime, 3i Group has put EUR
165 mln on the table to become the sole owner
of the Baltic ferry company.
August 2013 saw the introduction of a new
player to the Baltic ro-ro market, Nordic Sea
Line, which has established a regular link between the ports of Bremerhaven, Härnösand
and Vaasa, only to pack its bags shortly thereafter. In summer 2013 also UPM Seaways left the
regular Baltic ro-ro traffic; the company handed over chartered vessels (i.a. to Finnlines).
However, UPM is still active on the high seas
as it runs a semi-regular (i.e. demand-driven)
Baltic-North Sea traffic with the use of multipurpose vessels. Most probably UPM Seaways
quit the ro-ro business because of money – the
Finnish forest & paper industry has its own
profound hurdles, while the SECA cost for
UPM could also be a knockout.
October 12th witnessed the end of Kattegatruten’s Kalundborg-Aarhus ro-pax service.
“It is impossible to compete with Eastern European prices,” Birte Dettmers, Operations
Manager at Kattegatruten, underlined and
further added: “This means much lower labour costs and therefore driving across the
Great Belt Bridge is more attractive than the
Kalundborg-Aarhus route for these companies. Realistically there is no longer a need
for the route. Additionally, the new rules surrounding sulphur levels in fuel for ships which
come into force from January 2015 will only
make the problem worse.”
On the other hand, one of the less-fashionable companies on the market, Black Sea
Ferry, added in September 2013 the Port of
Liepāja to its Germany-Russia route, just to
change it to Klaipėda in a blink of an eye.
Another port addition took place after the
New Year, when SCA Logistics (the new
name of SCA Transforest) incorporated the
Port of Oxelösund into its ro-ro network.
Harbours lend a helping hand
Speaking of port ro-ro & ferry investments, it seems that nothing spectacular took
place over the last dozen or more months;
however, direct investments are aimed at improving ro-ro & ferry as well as kombi traffic.
Apart from a new ro-ro facility in the Port of
Kiel (buoyant pontoon in Ostuferhafen) and
construction works underway in Kapellskär
and Stockholm, the Port of Gdynia made a
successive step towards a new ferry terminal,
contracting Tebodin Poland to design the new
place for approx. EUR 0.72 mln. The facility
will be situated on the modernized Polskie
Quay near the entrance to the Port of Gdynia,
enabling to accommodate larger ships than the
Photo: Destination Gotland
Report
current facility located on the Helskie Quay
(up to 240 m long). Travel time should also
take less time (approx. 30 min), possibly leading, according to Marek Kiersnowski, CEO at
Stena Line Poland, to lower fuel consumption.
Year 2014 will be a rail year for the Port
of Hirtshals (serving as a junction point for
Norway-Denmark ro-ro traffic – six calls by
three companies). A new 650 m long railway
track will be established along the existing
tracks towards the harbour. Additionally, an
approx. 36,000 m2 reloading area will be set
up. The authority of Hirtshals port expects to
put around 80 trailers on tracks per day via a
fixed northbound link (e.g. to Duisburg) once
the new rail terminal is up and running.
The Copenhagen Malmö Port (CMP) together with the City of Malmö are investing
in the Northern Harbour to develop further
i.a. car transports on the Swedish side (since
2002 Malmö has been functioning as Toyota’s
hub for car deliveries to Scandinavia, the Baltic States and Russia). First CMP completed a
45,000 m2 expansion at its old dock, putting
additional capacity for the automotive distribution company Autolink, and afterwards CMP
and the city inked over EUR 29 mln for continued expansion of its Northern Harbour.
And finally – the ports of Helsinki and
Tallinn received EUR 11.3 mln from the EU
Motorways of the Sea programme under the
‘TWIN-PORT’ project. You can read more
about it in the article A deeper bond on the
page 30.
It is yet to be seen how the Baltic Sea region’s maritime authorities will execute the new
SECA regulations as well as what kind of (dirty)
anti-law practices will pop-up. Everything can
be “bright and clear” on paper, but what’s inside white-collar workers and top managers’
minds will become evident in due time. ‚
Przemysław Myszka
Check also the supplemented publication, our
Baltic Ro-ro & Ferry Yearbook,
entitled “It’s the final countdown”
for more insights (incl. SECA-cost for shipping calculations),
coupled with statistics and maps, giving an overview of the present
state of the Baltic market as well as delivering food for thought
about current & future trends impacting it.
Advertisement 2/2014 | Baltic Transport Journal | 27
Report
LNG cruising
Interview with Ingvald Fardal, CEO of Fjord Line
Photo: Fjord Line
Over the last nine months Fjord Line has launched two brand-new
cruise ferries between Norway and Denmark powered solely by LNG.
We talk with Ingvald Fardal, Chief Executive Officer, about the current &
future challenges this brings to the company and the market.
‚ Fjord Line encountered a few problems
while launching its first LNG-driven
cruise ferry Stavangerfjord last year.
What were the most difficult ones?
They were mostly “childhood diseases”, as we
call them. Firstly, we planned to start sailings
in May, but the engine’s manufacturer, RollsRoyce, had more challenges with finalizing
the solution than they originally expected. It is
big-scale machinery, something they haven’t
done before, and both the shipyard of the Bergen Fosen Group and Rolls-Royce underestimated the complexity. This was particularly
true when it came to the software which needed to be installed and tested. In such situation
we were unable to start operations before
mid-July. The high season imposed the next
challenge, as all specialists involved in building the ship and installing the equipment left
for vacation. This technology was new to our
staff who now needed to figure out things for
themselves, which took a few weeks.
‚ Did you encounter any particular difficulties with the bunker issue?
At that time the main challenge was the law in
Norway, stating that you cannot bunker while
customers are on-board. As a consequence, we
had to transport a lot of LNG from the terminal in Risavika (where the LNG plant is just 600
m from the terminal) by ship to Frederikshavn
and then by tank trucks to Hirtshals. On some
occasions we had to transport some of the fuel
all the way from Risavika to Denmark, and
that’s over 1,600 km. It was a timely and costly
task, in the end not very environmentallyfriendly. This difficulty was solved on the same
day as we launched the sister ship Bergensfjord
(March 17th, 2014). We spent a lot of time talking with the government and finally politicians
opened up to the possibility of bunkering LNG
with passengers on-board.
28 | Baltic Transport Journal | 2/2014
We now have an approval to fuel our ferries in
Risavika. If there is another LNG bunkering facility somewhere else in Norway in the future,
or if we want to tank from trucks elsewhere
in the country, then Norway’s Directorate
for Civil Protection and Emergency Planning
(DSB) must again give a separate consent. In
fact, we also have an approval to build a 600
m long direct pipe from the plant in Risavika
to the terminal. We are currently setting it
up and hope to have it in place in August of
this year. The direct pipeline will decrease the
bunkering time a lot – from an initial 15 hours
per ship, 12 hours in Hirtshals after improving
routine, down to less than four hours via the
pipe (which has a bigger diameter than a tank
truck’s hose). We will also have a backup tank
in Hirtshals within approximately six months.
‚ So, in your opinion, is LNG bunkering
safe?
That’s correct. There wasn’t really a disagreement on that. Norway has had LNG ships
since 2000, but the smaller LNG ferries aren’t
in traffic during nights, so it is possible to refuel them at that time. Therefore, LNG bunkering safety wasn’t an issue and that’s the
reason why the law wasn’t changed till now.
‚ Did you implement any changes to Bergensfjord which, contrary to the first ship,
set sail two weeks earlier than planned?
Indeed, the launching of Bergensfjord went
fine. The two ships are identical, some of
the interiors differ, but that’s all you can
catch with the naked eye. However, we were
building Bergensfjord while testing Stavangerfjord, and as we found weaknesses, we
were immediately correcting them. One
major issue improved instantly was the pressure build-up unit (PBU). The PBU warms
the gas to go into pipes towards the engine.
Rolls-Royce underestimated the required
unit’s size on Stavangerfjord, therefore we
needed to place a substantially larger one
later. This allowed us to have a proper PBU
in Bergensfjord from the very start.
‚ Why did you choose LNG as the sole
fuel for the newbuildings?
Dual-fuel was our logic back in 2009. We
even ordered and installed eight machines
from MAN that were supposed to be
changed to dual-fuel engines in 2015, but
in order to carry out such a conversion the
ship has to be taken out of service. MAN
wouldn’t give us reassurance concerning
their rigid works schedule and it could have
been very costly for us to have the vessel not
operational, e.g. for four months. Additionally, nobody could guarantee that the converted engines would actually work. In the
end, we found ourselves not comfortable
with the conclusions of the negotiations –
too much risk was on our side of the table.
That’s why we started to look into other alternatives. Of course when you have a dualfuel engine you can always use heavy fuel
oil (HFO) or marine diesel oil (MDO), so
you are less vulnerable to lacking LNG bunkering infrastructure. In the short-term it is
also harder to sell a ferry which runs only
on LNG, though it is easier with a regular
ro-ro & ferry link between two fixed locations (as we have in Risavika and Hirtshals)
than for a cruise ship. But all things counted, we pursued the LNG option. For us
this has been a very fundamental issue and
since then a firm strategy for our company
– something that has defined us afresh.
The prices of gas and HFO have split in
the past two years; they used to be on the
same level and follow each other, but now
LNG has moved much lower, something in
the extent of 1-20% below HFO. LNG has
another cost benefit – since you don’t have
particles (up to 98% of them are gone), the
maintenance of enginery is much easier
and you don’t need to open the machinery
so often to clean it as in the case of engines
running on HFO or MDO.
It is very hard to go into LNG in the shortterm, because up-to-date it is difficult to put
tanks onto existing ships. Therefore, the competition invests in scrubbers, yet that’s a costly
investment requiring extra power to be up
Report
and running, while scrubber leftovers need to
be collected and utilized, adding another item
to the list of expenses. If you don’t go for a
scrubber, you will have to tank diesel, an option 30-40% more expensive than HFO. In
general, the industry will end up with higher
bunker costs, affecting the average price you
put on the market, which in turn can influence the volumes. On the other hand, Fjord
Line is positioned very well thanks to our
LNG ships, so I don’t see our prices going up
here. However, the old Bergensfjord, which
will be refurbished and re-named as Oslofjord
and put on the Sandefjord-Strömstad short
link (10 hours of operations per day) in June,
will run on diesel, which will most probably
be reflected in its rates.
‚ Fjord Line is adding another cruise ferry to serve the Norway-Denmark traffic. How does this affect the market?
Positively. Along with cargo traffic with a
life of its own (regularity and capacity being
the key factors here) and pax ferry traffic, we
also have the cruise segment, having competition also from the side of low-cost airlines, which is very important for us, especially during the winter season. That’s also
the main logic behind investing so heavily
into cruise ferries (design, restaurants, entertainment, conference rooms, five-star
standard, etc.). We can already see that we
are increasing our volumes in this segment.
‚ It seems that by introducing new routes
(e.g. the Sandefjord-Strömstad link) you
will intensify competition with Color
Line. What advantages does Fjord Line
have in order to prove successful?
Color Line has been a fantastic story. I, myself, was a part of the team which gave birth
to Color Line in 1990, when Jahre Line and
Norway Line merged and the new brand was
introduced. Jahre Line on the Oslo-Kiel link
had a 10% market share back in 1989 and
20 years later Color Line had a 75% market
share in the Norway-EU ferry traffic, so they
had incredible growth and built up nearly a
monopolistic position.
Fjord Line is continuously developing its
brand; in 2007 we had a 3% market share but
after merging with Master Ferries in 2008 we
ended up with 7%. This year 15% of the market
share is our objective, and 20% in 2015. There’s
no doubt that we have to take it primarily from
the main player. But, in addition to Color Line,
you have Stena Line with approx. 10% and
DFDS Seaways with about 11-12%. We have
been happy to compete with Color Line on the
Kristiansand-Hirtshals route for several years
now. Nonetheless, it took us a whole four and
half years of battling to secure fair competitive
terms for the Kristiansand route for the future
(closed back in 2009). We went with this to the
court, won completely, meaning that the port
had to pay high penalties. We also started to
sail from Hirtshals to Langesund, which competes with Color’s Hirtshals-Larvik connection,
as the two Norwegian ports are located very
closely to each other. What distinguishes us on
the Langesund route is that we offer a cruise
product, while SuperSpeed vessels of Color Line
compete with fast transportation. With our
offer people from, e.g. south and south-west
Norway, can embark on our two-night cruise
voyage Hirtshals-Stavanger-Bergen along the
Norwegian fjords and we can already see that
this option is becoming more and more popular. Of course, there’s the possibility to go to
Oslo and also to take a ferry offer from there
to Kiel or Copenhagen, but it always entangles
a couple of hours’ drive to the capital of Norway. All in all, I think that the fact that we are
close to this market makes us interesting, above
all, because we have invested in a good cruise
standard product.
Przemysław Myszka, Piotr Trusiewicz
Supreme Rudder Protection
Advertisement E
coshield gives a very thorough and lasting defense against cavitation
and corrosion damage for a ship hull’s entire service life.
The coating equally provides the rudder with an impenetrable protective
layer while its flexibility enables absorption of the forces that are produced by
cavitation. This prevents the damage normally caused by this phenomenon.
Without proper protection against cavitation and the resulting erosion and
corrosion damage, the financial consequences can be severe.
By removing the existing paint layers and applying Ecoshield on the rudder
we can break the never ending cycle of painting, suffering damage, having
to perform extensive repairs in drydock followed by a full repainting, again
and again.
With an Ecoshield application no full repaint will be needed during drydocking. Ecoshield is guaranteed for ten years. At the most, minor touch-ups will be
required.
ECOSHIELD
THE DIAMOND STANDARD IN STEEL PROTECTION
Belgian headquarters
Phone: + 32 3 213 5318
Fax: + 32 3 213 5321
[email protected]
AD 184x116,6mm ECOSHIELD STRIP.indd 1
US Office
Phone: + 1 727 443 3900
Fax: + 1 727 443 3990
[email protected]
11:57
2/2014 | Baltic Transport7/04/14
Journal
| 29
Report
Helsinki and Tallinn are getting closer to each other thanks to the Twin-Port Project
T
 he connection between Helsinki and
Tallinn is extremely busy – 4,300 ropax ship calls are made each year. In
2013 the number of vehicles came
to 1.5 mln, while the number of passengers
amounted to 7.57 mln (see Fig.1). Obviously,
the alternative road link via Russia is hardly
a substitute, as the route is around 740 km
long, while the distance between Helsinki and
Tallinn through the Gulf is only 80 km. The
proximity of these two capital cities as well as
frequently scheduled trips tempt more and
Fig. 1. Passengers between Tallinn and Helsinki
more people to travel. In 2-3 hours the Finns
can find themselves in Estonia, where they
mainly take advantage of less expensive goods
and services; at the same time the Estonians
go to Finland for work and leisure. The growing passenger and vehicle traffic is slightly too
overwhelming for both city centres’ infrastructure, which has made the authorities of
the capitals start to think about more efficient
solutions for this sea route. Restarting ro-ro
cargo traffic between Helsinki’s Vuosaari Harbour and Tallinn’s Muuga Harbour has come
up as one solution to relieve the cities’ centres
from the burden of heavy traffic.
Actions have to be taken
In the spring of 2013 the City of Helsinki
submitted an application to the European
Commission on behalf of the two port authorities, for the Twin-Port Project, which
provided the possibilities of improving the
30 | Baltic Transport Journal | 2/2014
Photo: Port of Tallinn
A deeper bond
The two cities, separated by the Gulf of Finland, continuously work on improving their sea connection.
The reason for such an integration is not only its seabridge function or the specific Baltic “ferry culture”,
but also the fact that the harbours in both cities are a
part of the Trans-European Transport Network.
link between Tallinn and Helsinki. Emphasis
was put on investments, which have to be undertaken in both ports, precisely in Helsinki’s
Länsisatama and Tallinn’s Old Harbour. Most
of the passenger traffic to Estonia in the Port
of Helsinki passes through Länsisatama (West
Harbour), which currently has four berths and
serves 25,000 passengers per day. In order to
increase the terminal’s capacity to 45,000 passengers, two new berths will be constructed
on a 6-ha landfill. Deepening the fairway
route bypassing Pihlajasaari and removing
Tallinn’s Old Harbour’s limits are wider
than Helsinki’s West Harbour and thus the
improvements in the port are not as necessary
as in the land transport. However, within the
project’s framework, connections to Tallinn’s
A/B and D terminals will be improved and
new traffic arrangements will be made allowing the port-related traffic to merge into city
traffic more smoothly reducing drivers’ time
and the negative impact on the environment.
As the Twin-Port Project is being implemented in both cities, it seems obvious for the ports
Fig. 2. Ro-ro units and ship calls in Tallinn’s Old City Harbour
the shallows next to the turnaround will improve the ship traffic. The port authorities are
also working on implementing an automated
mooring system. However, the changes will
not only apply to the harbour’s infrastructure
– the most problematic issue of high traffic has
to be dealt with as well.
Apart from the currently developing and
promoted ro-ro connection between Muuga
and Vuosaari, many possible actions have
been considered to limit the number of vehicles in the centre of Helsinki, and making
public transport more popular. This includes
combined ferry and public transport tickets,
park-and-ride service developments and synchronizing public transport time tables with the
terminal rush hours. Also, two new tram lines
linked with the West Harbour have been created. The road connection to Länsisatama will
be improved by adding one extra lane from the
terminal and building one more road.
to adjust their operations to each other. Both
actors are planning to introduce an automated
check-in system for vehicles.
The total cost of the Twin-Port Project
amounts to EUR 56.3 mln. EUR 11.3 mln,
which makes up 20% of the total cost, will be
assisted by the EU. The investments in Helsinki will cost EUR 42.6 mln (76%); the development of the West Harbour will absorb most
of the wherewithal – EUR 39.27 mln, while
the traffic connections and new technologies
will cost EUR 0.9 mln and EUR 2.45 mln, respectively. In Tallinn the total expenses will
come to EUR 13.25 mln, of which EUR 13.02
mln will be spent on new land transport solutions (EUR 5.94 mln for the A/B terminal and
EUR 7.08 mln for the D terminal) and EUR
100 thou. will be allocated towards a study on
Tallinn-Helsinki ro-ro traffic scenarios.
‚
Magdalena Dams
Report
Pleasure trips and ferry culture in the Baltic
(Re)visiting Stockholm
There are about 11 mln ferry passengers visiting the Ports of Stockholm annually. Apart from the
county’s residents and commercial drivers, the most significant group are tourists. The port authority,
except from collecting the demographic data, examined how the guests spend their time in the area
and what their influence is on the region’s economy.
B
etween Summer 2012 and Spring 2013 the Ports of Stockholm performed their third ferry passenger survey, which
was addressed to visitors to Stockholm over the age of 15,
spending at least 2 hours in the city in connection with their
journey. The survey was prepared in nine languages and executed by
Sweco Eurofutures in all ports’ terminals that handle passenger traffic.
It examined the time spent in Stockholm, overnight stays, spending
costs, positive and negative experiences as well as a willingness to return to the city in the future. The target group was assessed at a level of
about 30% of 11 mln ferry travellers.
They do come back
The busiest month on most of the routes is July, but Latvian and
Russian travellers prefer August. Tourists constituted three out of
four passengers travelling on ferries to/from Russia, while on the
Mariehamn route this group was significantly under-represented,
comparing to ferry passengers either living in Stockholm or just
passing through the city. For almost half of the visitors it was at
least their 10th journey to Stockholm and the majority had travelled
by ferry from this destination during the past two years.
Less than 20% of the guests were in the capital city of Sweden
for the first time. The newcomers most often were heading back to
Russia (St. Petersburg) or Latvia, rarely to Finland or Estonia and
very seldom to Gotland, Mariehamn or other Swedish ports. For
departing passengers the main destinations were Gotland, Finland,
Estonia, Russia, Poland and Latvia. Off course, there was a high correlation between the departure destination and nationality. 40% of
visitors came from Finland and two out of ten visitors were Swedes.
About 95% of the guests were satisfied with their visit to the
city and its main attractions. 75% were planning to return to Stockholm within five years. The most certain about it were Swedes and
Finns, but also half of Russians and 30% of non-European visitors.
The most common reasons named for returning were the beauty
of the city, visiting relatives or work issues. Those who were not
sure about returning indicated cost, distance and lack of time as
the most common obstacles.
Travelling motivation & companion
41% of Stockholm County’s visitors claimed that the main purpose for their journey was to relax and enjoy a boat trip. Passengers
on pleasure trips, and those travelling longer distances, pointed out
the archipelago and the sea itself as crucial attractions of the journey.
The most common travelling companion was a partner. Men travelled more often alone, while women took children with them.
The reason for their journey was often determined by the destination.
The ferries to Gotland, Poland and Naantali serve as a popular means
of transport. For their passengers, often travelling alone, the comfort of
the journey seems to be important, but less than the price. However, on
other routes, where pleasure trips are more common, more than half of
the passengers chose time spent aboard as the most important aspect of
the trip. This still thriving “ferry travelling culture” can be particularly
observed on the St. Petersburg and Mariehamn routes.
Fig. 1. Proportion [%] of the target group (Stockholm visitors) among passengers
by destination
Source: Ports of Stockholm Ferry Survey 2013
Fig. 2. Stockholm visitors’ spending during the whole trip [%]
Source: Ports of Stockholm Ferry Survey 2013
Visitors’ spending
The spending list was opened by shopping, followed by restaurant
bills and accommodation costs. Almost half of all visitors bought groceries, more than one-third purchased clothes, shoes and accessories.
Four out of ten visitors stayed overnight in Stockholm. Half of them
chose a hotel, which means that every day ferries bring customers
to one thousand hotel rooms. The visitors staying overnight usually
come from Poland or non-European countries.
According to the survey, the visitors spent on average over SEK
300 a trip, which altogether amounts to SEK 5,000 mln per year. This
generates employment above a level of 4,100 full-time equivalent
employment positions. “Facts about Stockholm’s tourism industry”, issued by the Stockholm Visitors Board, reveals that consumer
spending for all visitors to the county in 2012 reached SEK 26.3 bln.
Concluding, almost one-fifth of total tourist consumer spending between Summer 2012 and Spring 2013 was made by ferry passengers. ‚
Marta Reszko
2/2014 | Baltic Transport Journal | 31
The Programme
is co-financed by
the European Union
VILA
Outcome of the socio-economic ratios analysis
Balancing the needs, leverages & deficiencies
The pattern revealed by an analysis of the industry-specific socio-economic ratios under the VILA
Project does not show a clear, positive picture of the situation in the Vistula Lagoon sub-region on its
Polish or Russian sides. But the division between the different economic systems and the increasing
legal and administrative disproportions do not preclude the joint growth.
T
 he studies presented under the VILA
Project have proved that demography
does not and will not play a determinant
role in developing the Vistula Lagoon
sub-region. The adverse demographic effects,
especially on the Polish side of the border – the
population decline caused by natural processes
– are augmented by emigration caused mainly
by heavy unemployment. The situation is slightly
better on the Russian side. No unemployment exists here in practice, but the natural demographic
processes are similarly destructive. On the other
hand, the positive balance of migrations from
other regions of Russia offsets the population decline. Furthermore, the fact that there are two industrial, business and academic centres in the region: Kaliningrad and Elbląg, is another optimistic
prognosis for the future. The growth of innovation
hubs and cluster organizations observed in both
cities promises development of more innovative,
advanced forms of industrial activities.
Furthermore, the cross-border co-operation
may contribute significantly to the progress in
the sphere of production and services. The intensifying contacts between people and institutions
on both sides of the border will certainly add to
the understanding of partners’ needs and potential, thereby allowing for development of products and forms of activity beneficial to both parts.
Tourism and recreation are commonly regarded to belong to the most consequential
leverages of the Lagoon region’s development. Indeed, the landscape, the sandy beaches, the flora, the spacious and diverse bodies
of water, as well as interesting items of the
region’s cultural heritage are unquestionable
32 | Baltic Transport Journal | 2/2014
attractions offering a variety of leisure activities. One should realize however, that there are
many regions in Europe, not to speak of other
parts of the world, offering similar or better entertainment, on a higher standard and at more
affordable prices. In addition, owing to the climate, the peak season is much shorter here.
Fishery is not a significant element of the
sub-region’s economy, neither on the Polish
nor on the Russian side. This is due to both the
unfavourable natural biological characteristics
of the Lagoon and the increased contamination of water. As a result, fishery is becoming
an unprofitable industry with decreasing employment opportunities. In the case of the
Vistula Lagoon, fishery will most certainly be a
trade of local importance, associated with individual ports and harbours and supplying its
produce to the nearby food markets.
The sub-region’s farming sector can be
viewed similarly in terms of its condition and potential. The arable land is not particularly fertile in
either part of the sub-region, with the exception
of Żuławy on the Polish side, but here the farming standards and productivity are high and any
further intense progress can hardly be expected.
The agricultural sector’s share in the employment
market of the sub-region is only a few percent.
Although there are major reserves of arable
land on the Russian part of the area (with some
40% of barrens), they would require significant
financial expenditures and substantial assistance
from the government. Furthermore, there are no
reserves of the labour force willing to do the farm
work. The very complex legal system and organizational aspects of land ownership in the Kaliningrad
Oblast does not make the situation any easier.
Transport is a vital element of the sub-region’s economy. On the one hand, it is a sort
of circulatory system pre-determining development of all other sectors, from industry to
tourism. On the other hand, it is an independent industry in itself, a value-adding one and
providing employment to many people.
The road and railway system’s density in the
Vistula Lagoon sub-region is sufficient in principle. Yet, its technical condition is another matter. Over the last years, major investments in the
transport infrastructure were made here. Furthermore, the current development programmes
that are underway, both on the Polish as well as
the Russian side, look promising for the future.
The situation in the domestic water transport within the sub-region looks much worse,
especially in its Polish part. The carriage of
goods and, particularly, of passengers between
the ports of the Polish and Russian part of the
Lagoon is a margin of the transport flows in
the area. The only hope is that the intensifying
economic and travelling relations will generate
greater demand for water transportation in the
future, thereby enforcing its development. ‚
Marcin Kalinowski
The Maritime Institute in Gdańsk and its Partners invite the readers to take a closer look at the
specific outcomes of the VILA Project and to join their efforts towards economic development of the Vistula Lagoon sub-region. More information at: http://vilaproject.eu
The Programme
is co-financed by
the European Union
VILA
Opening the Lagoon to Europe
Vistula Lagoon needs a breakthrough in order to effectively streamline the development of the region. Prof. Krzysztof Luks tells us
about the area’s political and socioeconomic conditions as well as
problems that need to be faced.
‚ How do you find the socioeconomic
situation of the Vistula Lagoon region today?
If compared with what has been observed
over the last 20 years, the Polish part of the
Vistula Lagoon sub-region is experiencing
a civilization shock. The results of the VILA
Project’s activities clearly show that local
governments are impressively aware of
their capabilities as regards identification
of investment needs, as well as raising the
additional funds needed for their projects.
Initially, the main focus was on the municipalities’ statutory tasks: modernization and
expansion of the water supply and wastewater treatment as well as disposal systems
or the road infrastructure, but now some
sea-oriented initiatives are finally emerging
in the region. The positive examples to be
mentioned include the marinas being constructed in Braniewo and Tolkmicko, not to
speak of Elbląg, where two marinas have
been modernized recently.
contacts on a regional or local level. The
very effective co-operation of the Polish
and Russian partners under the VILA Project and the resultant progress in project
execution show that the problems are
solved by a joint effort.
As regards to the channel, this is not the
Russian party’s concern. Obstacles, if any,
may be due to environmental issues or
EU restrictions. As far as the environmental aspect is concerned, the 0.5 km long
Channel of Jamno serves as a good example. It has been named after the Jamno
Lake near Koszalin. The passage was constructed in 1690 and is situated similarly
to the Vistula Lagoon, i.e. it is separated
from the sea by a similar spit. With regard
to the opportunities it offers, the channel
is being widened from 20 to 30 m. One
might therefore ask the ecologists, why
object to the Vistula Lagoon channel? Especially that the Baltic Sea waters are less
polluted than the waters of the Jamno
Lake or that of the Vistula Lagoon.
Photo: Prof. K. Luks, VILA Project meeting – Elbląg 2014
Interview with Professor Krzysztof Luks
of the Maritime Institute in Gdańsk
‚ Whose responsibility is it to initiate
the nearest actions concerning the
channel?
The Government should initiate such action. At its last meeting, the previous
cabinet adopted a resolution providing
for the channel construction. The present
Government has not revoked the resolution, although the project has been postponed as a result of the measures taken.
Nevertheless, even the earliest outcomes
of the VILA Project show how important
the opening of the Vistula Lagoon water
body to Europe is to the socioeconomic
development of the region.
Lena Lorenc
‚ Can the Vistula Lagoon’s water body
be referred to as an area open to
Europe?
For the time being it cannot, regrettably.
The most vital thing which has to be done
is to provide a direct waterway to the Baltic
Sea and build a channel through the Vistula Spit, otherwise Europe will never be
aware of our existence. As for today, the Lagoon is the only maritime body of water in
the European Union without unrestricted
navigable access for third-party flag ships
and yachts. A breakthrough will occur only
when all of our European partners will be
able to call these newly built marinas and
harbours freely.
‚ Are the deteriorating Polish-Russian relations obstructing the decision whether to dig the channel through the spit?
The obstacles are mostly political in nature and they do not affect the direct
2/2014 | Baltic Transport Journal | 33
Utilization of sewage from passenger ships and waste from scrubbers in the BSR
Questions, uncertainties and hard work
The discharge of raw sewage into the sea can pose a health hazard, adding to oxygen depletion and obvious
visual pollution in coastal areas, additionally creating a major problem for countries with a developed tourist industry. The professional background information on technology and specific facilities regarding the
sewage utilization in the BSR ports are at the moment highly coveted by port specialists.
I
n order to fulfil the current and forthcoming obligations, port authorities
plan investments in new required facilities. However, the new regulations concerning port reception facilities (PRFs) raise
many questions and uncertainties among
the authorities of the Baltic ports.
Baltic ports’ voice
The topic of sewage reception from passenger ships and waste from scrubbers was
tackled during the BPO Environmental Seminar, which accompanied this year’s Transport
Week conference in Gdańsk, Poland. The
seminar served as a platform of know-how exchange among ports, which already possess the
reception facilities for sewage and wastewater
from passenger ships and those only just planning this investment and further development.
The representatives of the ports of Copenhagen Malmö, Gdynia, Tallinn and
Turku shared their expertise as well as
crucial data regarding waste handling and
management, fees and waste recycling.
Gert Nørgaard, Manager Strategy and
Planning of CMP, presented a case study on
Copenhagen’s new investment regarding waste
management. The port, as the busiest cruise
destination in the Baltic Sea with approx. 350
cruise ship visits and 700,000 passengers per
year, will have a new passenger quay for turnarounds of these vessels. The 1,100 m long, 70
m wide, three-berth quay will be situated right
on the Øresund coast line. As a part of the investment process, wastewater pipes are to be
implemented in the quay receiving wastewater
from three passenger ships simultaneously. The
capacity of the installation is designed for up to
300 cbm/h for one ship.
The Port of Gdynia, with 733 ferry and
cruise ship calls and 550,000 passengers in
2013, was represented by Environmental Protection Specialist Daria Mróz. Currently, new
sewage PRFs are under construction in three
port quays and an amelioration of a fourth is
planned in order to adapt the sewage system for
merchant ships to the new regulations. In the
i.a. Bułgarskie and Szwedzkie Quays an inlet for
sewage discharged from ships will be installed,
with a sewage quality measurement device and
34 | Baltic Transport Journal | 2/2014
Tab. 1. Legal background - main regulations
2000
The EU Directive on port reception facilities (2000/59/EC) for ship-generated waste and cargo residues came into force. The
document addressed in detail the legal, financial and practical responsibilities of the different operators involved in delivering
ship-generated waste and cargo residues. Ports were obliged to establish cost recovery systems to encourage the delivery of waste
on land and discourage dumping at sea.
2007
The BSR states decided to adopt HELCOM’s Baltic Sea Action Plan, which defined actions necessary to protect the natural environment
of the sea on the basis of the Helsinki Commission’s Convention on the Protection of Marine Environment of the Baltic Sea Area. One
of the issues targeted was minimizing the scale of pollution from ships’ sewage.
2010
The HELCOM ministerial meeting set up a Baltic Sea Cooperation platform on sewage PRFs. The latter during 2010-2013 involved
the shipping industry, technology providers, ports and national authorities for discussions on outstanding issues around the
improvement of sewage PRFs in the region.
2011
The International Maritime Organization (IMO) on the basis of the International Convention for the Prevention of Pollution from
Ships (MARPOL Annex IV) declared the Baltic Sea a special area for environmental reasons deciding which classes of sewage can be
discharged into the sea and created requirements for states to implement adequate sewage PRFs. IMO also stated that from 2016 all
newly-built passenger ships are not allowed to release their sewage directly into the sea. From 2018, the same prohibition will be
applied to the existing passenger vessels travelling on the Baltic Sea.
connection to a municipal biological treatment
plant pumping station. Readjusting investments in Helskie II, Polskie and Francuskie
Quays, which are used for cruise liners and
ferries, are also planned. The aim is to gradually upgrade the standards of PRFs and achieve
their adequacy by January 1, 2016, at least on
the main berths serving cruise traffic.
The Port of Tallinn, with 9.2 mln passengers and 344 cruise ship calls in 2013, was represented by Ellen Kaasik, Head of the Quality
and Environmental Management Department.
She raised the issue of ‘no-special-fee’ system
with the dual purpose of encouraging ships to
deliver waste ashore and to avoid undesirable
Fig. 1. Waste fee – comparison of the rates
Source: Port of Tallinn
waste streams between ports. Ships calling at
Tallinn’s harbours are obliged to pay a waste fee
that doesn’t directly depend upon the quantity
of the delivered ship-generated waste. The levy
of waste fee is based on a vessel’s gross tonnage.
Markku Alahäme, Quality Manager at the
Port of Turku, which last year was visited by
2,178 cruise passengers, presented the port’s
waste management and wastewater reception
facilities. He focused on the already existing
PRFs, such as fixed wastewater reception points
for passenger traffic with a capacity of 200-250
m3/h, emphasizing that due to the new upcoming legal regulations, the port authorities plan
to retrofit the ship water treatment system.
scrubber system has the flexibility to operate
in both an open and closed loop using seawater to remove SOx from the exhaust. When
operating in an open loop, exhaust gases enter
the system and are sprayed with seawater in
three different stages. The sulphur oxide in the
exhaust reacts with the water and forms sulphuric acid. Chemicals are not required since
the natural alkalinity of the seawater neutralizes the acid. Wash water from the scrubber is
treated and monitored at the inlet and outlet to
ensure that it conforms to the MEPC 184(59)
discharge criteria. It can then be discharged
Source: Port of Tallinn
into the sea with no risk of harming the enviTechnology and R&D
ronment. The system also operates in a closed
BPO invited experts and maritime sup- loop where the wash water is circulated within
pliers from Wärtsilä Moss to present the ship the scrubber. Exhaust gas enters the scrubber
scrubber technology and the sort of wastes and is sprayed with fresh water that has been
produced by the scrubbers. Wärtsilä’s hybrid mixed with caustic soda (NaOH). The sulphur
oxides in the exhaust react with this mixture
Fig. 3. Baltic cruise traffic 2011
and are thereby neutralized. The hybrid approach enables operation in
a closed loop mode when required,
for instance whilst in the port and
during manoeuvring using NaOH
as a buffer. When at sea, the switch
can be made to open loop using only
seawater.
Moreover, the event involved a
training session dedicated to the Self
Diagnosis Method (SDM), a new
methodology designed to assess environmental management in seaports.
SDM, developed by two research
teams and about sixty seaports, allows for the comparison of the current environmental situation with
that corresponding to previous years
and an assessment of the opportunities for improvement. Established by
Source: HELCOM
Fig. 2. Amount of ship-generated waste delivered
to some Baltic cruise ports
EcoPorts, SDM along with the Port Environmental Review System (PERS) have their origins within the ESPO R&D projects that have
been the subject of continuous development
during the last 15 years, serving as a helpful
instrument for ports in implementing the new
environmental regulations.
Substantial attention was devoted to
EcoPorts itself; various R&D initiatives of
this platform are focused on applying research outcomes to practical solutions, in
order to assist port environmental managers in their daily work.
Light at the end of the tunnel
The issues raised evoked a lot of doubts and
questions, especially concerning the legal field.
There is still a multitude of queries regarding
interpretation of the EU Directive on port reception facilities, especially on specifying the
‘adequate reception facilities in ports’ and no
definite fees for ship-generated wastes. The
complexity of the problem is even magnified by
parallel obligations for ports’ legal systems such
as national, the EU’s and IMO’s regulations.
As the status of port reception facilities’ development is highly diversified throughout the
Baltic ports, the seminar enabled participants to
present solutions implemented in their ports and
discuss to what extent the chosen ways are useful and effective. Since the costs of new sewage
PRFs are potentially high, it is vital to acknowledge the legal requirements and technical parameters of the devices. On the other hand, such
investments have a positive long-term impact
on the Baltic Sea’s environment and may help
develop an environmentally-friendly marine
industry and intensify the passenger traffic. ‚
Justyna Rataj
Baltic Ports Conference
Competiveness of the maritime transport – from global to regional scale
and BPO General Assembly
4-5th September 2014
Hotel Griffen, Rønne | DK/Bornholm
www.bpoports.com/baltic-ports-conference
BALTIC PORTS ORGANIZATION • Secretariat Office – Actia Forum Ltd.
ul. Pułaskiego 8, 81-368 Gdynia, POLAND, ph.: +48 58 627 24 67, fax: +48 58 627 24 27, e-mail: [email protected], [email protected], www.bpoports.com
2/2014 | Baltic Transport Journal | 35
Focus
European port policy
96% of all freight and 93% of all passengers passing through 1,200 EU ports transit through 319
principal ports included in the TEN-T Core network.
The latter are the main subjects of the European
Port Policy, currently at its cross-road.
S
 ome of the finest port facilities in the
world can be found in Europe. Ports
here play a crucial role both in the exchange of goods within the internal
market, in linking peripheral and island areas
with the mainland as well as on the international area – 74% of goods entering or leaving
Europe travels by sea. Directly and indirectly,
ports offer around 3 mln jobs in the 22 maritime
Member States, and they are a major source of
tax revenue for local, regional and national governments. Today however, the European ports
are facing major challenges, whether regarding
congestion, traffic growth or investment, the
insufficient connectivity to the hinterland, the
lack of transparency in the use of public funds,
market entry barriers, outdated governance
models or excessive bureaucracy.
European port legislation is still very young,
however, the EU port package saga has a long
history incrusted with failures, such as two rejections of the European Commission’s proposals by the European Parliament in 2001 and
2004. 2013 was the year when the Commission
was ready for its third attempt and adopted a
Communication entitled “Ports: an engine for
growth” along with a proposal for regulations
on market access to port services and the financial transparency of ports. Many critics of this
regulatory initiative have already raised their
concerns, which were further subject to the
Ordinary Legislative Procedure. The final outcome of this approach has yet to be seen.
The web is about cohesion
In order to realize the ports’ status within
the EU policies, it is necessary to place them on
the TEN web. The idea of the Trans-European
Network (TEN) was born at the end of the
1980s along with the proposed Single Market,
in order to create a modern and effective infrastructure to link European regions and national
networks as well as support the reinforcement
of economic and social cohesion. This European web covers three areas: the transport network (TEN-T), the energy network (TEN-E)
and telecommunications network (eTEN). In
the area of transport, the way to implement the
TEN is through the corridors. The core ones
were designed by connecting chief production
and consumption centres in Europe with the
key entry and exit points – the ports, all according to the Commission’s knowledge about
the major trade and passenger flows. The Core
Network, supported by a Comprehensive Network of routes, together covering approx. 95%
of the EU territory, is a way to implement the
concept that Europe has to be connected. According to Dimitrios Theologitis, Head of Ports
& Inland Navigation, European Commission
DG MOVE, “The TEN-T scheme highlights
very expressively the fact that the basic principles of the European Union – equality of treatment, equality of chances, transparency, equal
opportunities, safety, security, environmental
protection – should apply on this network.” For
this purpose and in order to support transport
Photo: Port of Gothenburg
Preventing
the engines
from sputtering
infrastructure development, including ports
and port connections with the hinterland – a
funding scheme, the Connecting Europe Facility, will provide up to EUR 26 bln for the period
2014-2020. The specific amount of funding
dedicated to the ports is yet to be announced.
The engines
The latest Commission review of the port
policy was driven by an objective that especially in times of austerity, the tax payers’
money should be spent according to the basic
EU principles – with a stress on transparency. The Commission states that for one million tonnes passing through a port, roughly
300 jobs are created. Currently, approx. 3.9
bln tn goes through the European port system annually and by 2030 a 50% increase in
ports’ throughput is expected.
Today, we are observing structural changes
in port business, with container transport on a
dramatic increase and a constant rise in average
ship size – there are 22,000 TEU vessels already
in shipyards’ orderbooks. The presence of such
behemoths, 400 m long with a tremendous
width, will imply changes in port infra- and suprastructure. The above processes mean investments, which will lead to job creation, the ability
to handle or attract more cargo and passengers,
better use of port capacity and maintenance of
the ports’ competitiveness at the international
level. At the same time they lead to inevitable
damage to the environment, which should be
2/2014 | Baltic Transport Journal | 37
Focus
place. In such case, the provider is required to
be designated after an open, transparent and
non-discriminatory procedure. Internal operators are confined to provide services to their
port system in case of public service obligations.
For cargo-handling and passenger terminal concessions, the Commission prepared
the horizontal Directives on Concessions and
Public Contracts. The directives were voted
on by the European Parliament on January 15,
2014, and adopted by the Council on February 11, 2014. Now, the Member States are obligated to transpose the new rules into their national law by April 2016. This step is designed
to cover a part of the existing contractual arrangements between port authorities and port
service providers and lead to a more transparent award of port services.
Fig. 1. TEN-T Core Network Corridors
BASED ON THE OUTCOME OF THE INFORMAL TRILOGUE OF 27th JUNE 2013
BASED ON THE OUTCOME OF THE INFORMAL TRILOGUE OF 27th JUNE 2013
BASED ON THE OUTCOME OF THE INFORMAL TRILOGUE OF 27th JUNE 2013
minimized at all means. After revising the situation, the Commission recognized the tools to
support port sector development in the areas
of funding, legal certainty, fair market access to
the port services, transparency in public spending, social dialogue, environmental approach
and innovation.
Regarding port labour regimes, the Commission decided not to put forward legislation
in its proposal. However, an EU Social Dialogue Committee, designed to address issues
such as health and safety at work, training and
qualifications, has been established and met
for the first time on June 19, 2013. Its work
supplements the social dialogue at national,
local and corporate levels. If no progress is
made within the European social dialogue for
the port sector by 2016, the Commission will
consider whether a legislative proposal on the
subject is appropriate and might issue a proposal. Moreover, the Union’s policy should
help to reduce poverty worldwide by promoting improved working conditions, health and
safety at work and fundamental rights. For detailed information on this issue, go to our free
on-line Archive and read “Port labour in the
context of the Commission’s new ports policy
approach – Engines for growth” authored by
Dimitrios Theologitis and published in the
Baltic Transport Journal № 3/2013 (53).
Other key actions in the EU port policy
are designed to simplify procedures in ports,
in particular by avoiding unnecessary controls
by customs for the movement of goods within
the internal market (“Blue Belt” initiative) as
well as raising the environmental profile of
ports by providing guidelines and promote the
38 | Baltic Transport Journal | 2/2014
exchange of good practices and to define a port
research and innovation agenda which can be
used in the Horizon 2020 programme to encourage innovation in ports.
Transparent and open
The European Commission, however,
brought out regulations for two issues – the
transparency of public funding and market access of port services. As port costs account for a significant fraction of a logistics
chain’s costs – according to the Commission,
in some cases constituting up to 30% of the
total door-to-door delivery charges – raising quality and efficiency of port services is
essential for the overall performance of the
port as well as the logistics chain.
Regarding the issue of transparency, while
exercising their freedom and pursuing their
own commercial strategies, the ports are expected to act according to certain rules, and
remain transparent as to their account keeping,
in particular when they receive the public funding. The transparency of the financial relationship between the Member State, ports and port
service operators is envisioned to help identify
misuse of public money, streamline a better allocation of scarce public funding as well as a fair
application of the state’s aid rules in ports.
As for market access, the proposed legal
framework is designed to establish the freedom
to provide services in ports, except for cargo
handling and passenger services (this exclusion
received the most intense critique). The managing body of a firm can limit the number of
service providers due to space constraints in the
port or in case a public service obligation is in
Current state of affairs
The wide internal and external critique of
the Commission’s proposal could be a topic for
a completely new piece. In short, it includes, inter alia, doubts of a holistic approach towards
the port policy, the absence of reference to the
review of the highly port-relevant regulations
on sulphur limits for marine fuels, the danger
of bureaucracy or unnecessary procedures increase as well as delays in port operations, or
risk of posing negative impact on ports’ commercial freedom and their ability to invest.
Various concerns have been so far at least
partly addressed (as e.g. in the case of proposed
amendments issued in January 2014 by the
Committee on Employment and Social Affairs
of the EP for the Committee on Transport and
Tourism) or still are in the Ordinary Legislative
Procedure. The latter is a process often deemed
the most democratic as by entailing a full legislative role for the European Parliament it is
seen to be achieving citizen control over the
EU’s policy processes. Up to now, a compromise on the scope of the market access chapter
hasn’t been reached. The latest developments in
the story concern a discussion held on March
17, 2014 by the Transport and Tourism Committee on the amendments to Knut Fleckenstein’s report on the port regulations. As has
been pointed out, the Commission’s proposal is
strictly linked to the Concessions Directive and
State Aid Modernisation process (SAM) and
while the Directive has been approved, there
is no clear overview of the future outcomes of
the SAM. The Members of the European Parliament came to an unanimous agreement to
not proceed with the vote, claiming they need
much more clarity before proceeding. The conclusion was that it is difficult to negotiate and
approve this proposal without a better overview
of other policy issues as regards ports. ‚
Lena Lorenc
Logistics
10 things that went well for sustainable transport last year
Silver linings
For anybody following the fortunes of sustainable transport in Europe – even just a little bit – the overwhelming impression is that
things have been scaled back (emissions-trading aviation), postponed (the Fuel Quality Directive, possibly NOx from ship engines,
truck CO2 emissions) and watered down (CO2 from cars, biofuels).
Yet, it’s also worth looking at the positive side.
S
o, here come 10 things that went well
for sustainable transport last year. In
random order.
Cars
We saw closure on a few big fights,
notably carbon dioxide and noise from
vehicles. Consider this: despite all the
heavy-handed lobbying, carmakers will
have to reduce the average CO2 emissions
of new cars by 28% – one year later than
we hoped for, weakening the 2020 target
by around 5%. And yes, the new EU vehicle noise legislation was underwhelming:
just 2.6 dB less noise from a new car by
2027 means it will take another generation before the benefits are heard. But at
least we can start talking about the future
instead, such as truck CO2 emissions and
2025 standards for cars.
Spending
Second is the EU’s transport spending.
The EU budget 2014-2020 was finalised in
December 2013 and transport funding will
come through the so-called ‘Connecting Europe Facility’ (EUR 4 bln per year, focused on
the TEN-T network throughout the whole
EU) and through cohesion funds (likely to be
around EUR 8 bln per year, mostly in Central
and Eastern Europe). The new rules are far
from perfect but slightly greener than before.
A shift to a low-carbon economy is one
of four priorities for cohesion policy. Climate
and biodiversity monitoring will now be required for all EU spending. It will be much
more difficult to spend cohesion funds on
fossil fuels, airports or airlines, and somewhat less attractive to spend it on toll-free
motorways. Logically, all this would also
mean a higher share of spending on rail.
Fig. 1. Common ways carmakers manipulate tests for CO2 emissions and fuel economy
40 | Baltic Transport Journal | 2/2014
Among the finer details of the Connecting Europe fund is a new focus on traffic
management systems, particularly road user
charging systems, as well as rail track electrification. Of course, the proof of the pudding is in the eating, so a final verdict on all
of this can only come in… 2021.
Biofuels
On biofuels, clearly we are not winning
all battles. EU energy ministers rejected a bad
deal in December last year, but the status quo
is even worse: extra emissions equivalent to
adding 29 mln more cars to Europe’s roads
by 2020. Yet slowly the debate is moving in
our direction; in its 2030 climate and energy
package the European Commission says it
wants to stop mandating or otherwise favouring today’s bad biofuels after 2020.
Aviation
On state aid to aviation – Europe’s dirtiest subsidy – the European Commission
published its final guidelines that will allow regional airports and the airlines serving them to keep receiving subsidies worth
an estimated EUR 2-3 bln a year. At a time
when tax money cannot pay for teachers
and nurses’ wages and pensions, this is not
merely irrational, it is unethical and needs
to stop. While the guidelines themselves
are much weaker than we hoped, at least
the Commission has promised to actually start enforcing them – which would be
progress of sorts.
Logistics
Fig. 2. Possible truck safety & fuel efficiency upgrades
Lorries
We also saw the beginning of the end of the
era of Europe’s silly and dangerous box-shaped
trucks, with the European Parliament’s transport committee voting to change the rules for
cabins that could save hundreds of lives and
reduce fuel consumption and emissions (Fig. 2;
also read more in T&E’s previous article,
Cleaner trucks: saving lives, saving fuel, in BTJ
5/2013). MEPs voted to give lorry manufacturers more design space for a more streamlined
front end. Parliament also wants the extra space
to be used to get rid of blind spots, include a
crumple zone and make sure pedestrians and
cyclists are not knocked underneath the wheels
in a collision. Lorry makers will have the possibility to improve designs straight away but
MEPs want these life-saving features to become
mandatory for all new lorries by 2022. We can
also savour the fact that, for the first time, the
Parliament called for the introduction of fuel
efficiency standards for lorries.
hopeful for the final deal. If ratified by the new
Parliament later this year, it will build on the
2012 directive that demands an 85% cut in the
sulphur content of fuels by 2020.
traffic management, maintenance, green projects, and non-transport spending. Transport
ministries must reinvent their raison d’être but
need a little ‘help’ in doing so.
Testing
In the background, some more technical
but crucial projects have been grinding forward. A new emissions test for cars is slowly
emerging. The current one is terrible, with
testing rules so lax that our technical consultant measured 23% higher CO2 emissions
on the test than the manufacturers.
The report also identifies 20 ways that carmakers ‘creatively reinterpret’ test procedures,
including taping over cracks around doors and
grilles, overinflating the tyres, adjusting the
wheel alignment and brakes, and using special super-lubricants (Fig. 1). The new test, we
hope, will close some of these loopholes. Also, it
seems there has been real progress on the development of a fuel economy test for trucks.
Urban mobility
Cycling across Europe is growing very
fast. In particular, sales of e-bikes and other light electric vehicles are booming. This
will transform urban mobility, making the
bike an alternative to the car – and not just
for short distances.
Shipping
Air pollution from shipping accounts for
50,000 premature deaths per year in Europe,
and so the Parliament’s environment committee has seized the opportunity to include
harmful NOx emissions in emissions monitoring legislation. Though EU governments
are likely to resist this measure, they will back
the reporting of a ship’s efficiency (that is,
cargo weight carried and distance sailed) as an
accurate measure of emissions. On this point
MEPs are not so progressive but we remain
Peak car
The idea that western societies are reaching
‘peak car’ – saturation of car travel – is becoming mainstream in academic circles. The challenge is now to translate that recognition into
less cash for new road capacity and more for
Tar sands
Investors in tar sands projects were not
happy to see that the crude from these fields
continued to trade at more than USD 30/
barrel below North Sea oil – but that’s good
news for the climate, of course. We need to
keep up our efforts in that regard, and the
Fuel Quality Directive is one key tool.
Clearly, it’s been a year in which it took effort – and sensitive taste buds – to discern fruity
flavours. May 2014 (and 2015, after Commission and Parliament changeover) be a real vintage year. ‚
Jos Dings
Director of Transport & Environment
Transport & Environment is a Brussels-based organization whose mission is to promote, at EU and global level, a transport policy based on the principles of sustainable development. T&E has contributed to
a number of high-profile EU policy changes such as binding standards for more fuel efficient cars and
vans and more sustainable biofuels; inclusion of aviation in the EU Emissions Trading System; introduction of green tyre labels as well as smarter EU rules on the way lorries can be charged and designed.
2/2014 | Baltic Transport Journal | 41
Logistics
The defining factor
Photo: Port of Tallinn
The Estonian logistics sector: innovation shaped through cooperation
The Estonian transit sector has been going through constant changes – all operators acting on the extremely
dynamic bulk cargo transport market have been forced to quickly react to various external factors and evertightening competition. Despite everything, Estonia has managed to adapt according to market needs and
maintain its role as an important freight transport corridor on the East-West and West-East axes.
A
few years back, Estonia was one
of the largest transit zones for bulk
cargo in the region, with annual
railway freight volumes reaching to 45 mln tn. The environment changed
dramatically and prompted the transit sector
in Estonia to focus more on specific service
segments in order to maintain its competitive advantage even when a decline in freight
volumes was clear and present. The whole
sector collectively focused on listening more
accurately to the customers’ needs and on developing innovation.
The defining factor in innovation has
been cooperation between the market players and jointly developing new innovative
services and products that match the customers’ demands. Transit companies in Estonia
have benefitted from Estonia’s compact size
and its ability to quickly readjust to changing
circumstances, but also from its highly developed infrastructure and facilities.
Tallinn’s port and terminals work as a
team
The Port of Tallinn’s Muuga Harbour
boasts a depth of 18 m, which has given the
largest cargo port in Estonia a considerable
advantage in the handling of bulk cargo – this
natural advantage coupled with good railway connections, long quay lines and ample
42 | Baltic Transport Journal | 2/2014
capacity in terminals allowed the port to receive considerably larger tankers than other
nearby harbours. The economies-of-scale
effect greatly contributed towards the costefficiency calculations of the port’s customers.
Today the situation on the bulk cargo
market has changed drastically due to the
emergence of new ports in northwest Russia.
Thus, the need for oil products handling has
decreased and the necessity for storage and
value-added services has increased. The tanks
in Muuga are capable of holding 1.55 mln m3
of oil products with an additional 700,000 m3
being added in the near future, the possibility
to unload incoming tankers and highly efficient unloading operations have given the
customers financially attractive reasons for
using the terminals in Estonia for long-term
storage, collecting larger consignments and
blending – consequently helping to ensure
Estonia’s continuous competitive edge before other ports and terminals in the region.
One of the key advantages of the Port of
Tallinn is also the development of freezones
in the port area, as the ownership of goods can
be changed there without being subject to additional tax or regulations. The cooperation
between the port and the operators has led to
a partnership designed to develop all the necessary preconditions to keep Estonia competitive
in the sea-terminal-sea configuration as well.
Alexela reprofiled to add value in the
processing of oil products
Alexela Logistics is an Estonian logistics company focusing on oil transport
and storage that recently expanded its
operations from the Port of Paldiski to
the Port of Sillamäe, located just 25 km
from the Russian border. The terminals of
Alexela Logistics are capable of processing oil, but primarily the company deals
with various oil products ranging from
petroleum to heavy fuel oil.
The oil terminal in Sillamäe was
jointly rebuilt by the Port of Sillamäe
and Alexela Logistics, as originally the
oil terminal had been intended to serve
as a transshipment point for heavy fuel
oil from the Kirishi oil refinery in Russia.
As a result of the rebuilding project, it is
now possible to process dark oil products
all year round and even from such distant
locations as Kazakhstan.
In Paldiski, Alexela had to reprofile its
bulk cargo operations after oil transport by
railroad suffered a steep decline in 2007. The
company shifted its focus to adding value to
low-grade oil products that are brought in
tankers by sea. Alexela Logistics has managed
to upgrade the entire processing chain to a
level that allows them to produce such complex products as aviation fuel, for example.
Container trains gain their efficiency
Historically, the Estonian railroad network has served as a corridor for hauling
bulk cargo on the East-West route – e.g. oil
products, fertilizers, coal, etc. Railway operators, terminals and freight forwarders in
Estonia have recently had to adjust to a new
environment due to the active development
of Russia’s own ports and their national
transport strategy of hauling as much freight
as possible through their own harbours.
One example of such adjustment is in
the field of container goods, which are flowing in the opposite direction to bulk cargo.
Container volumes have for some time now
been compensating for the decline in bulk
cargo volumes by rail. Container trains must
be dispatched in block trains in order to remain competitive in efficiency – this can only
be achieved in very close and well-coordinated
cooperation between all the partners involved.
After years of cooperation, the Estonian
freight forwarders, the container terminal,
customs officials and the railway operator have
achieved an unparalleled degree of efficiency
– all transport documents are completed in
advance by the freight forwarder, reducing
any delay after loading to a minimum, as the
terminal has sufficient advance information to
plan the loading of the train. All customs procedures are handled already during the loading process and the railway operator plans a
schedule that allows the train to ride non-stop
through the entire country. Border-crossing
is handled swiftly, as the border guards are
notified of the train and its cargo well in advance. The long-term vision for this partnership project is to take this streamlined process
one step further to be completely paperless and
rely only on electronic data, but this depends
on even wider cooperation and special agreements between several countries.
Estonia’s future – distribution centres
Further growth opportunities for the Estonian transit and logistics sector lie in the
development of distribution centres. Being a
member of the European Union, NATO, the
Schengen area, the eurozone and WTO, Estonia is a safe environment for business. The
Photo: EVR Cargo/Rain Dorbek
Photo: DSV
Photo: EVR Cargo/Rain Dorbek
Logistics
favourable economic climate and innovative
solutions create the preconditions for foreign corporations to consider setting up their
distribution centres in Estonia, where the
geographical location and great connections
allow to serve end-consumers in Northern
Europe, CIS countries and Central Asia.
Active cooperation in the development
of new products and joint marketing efforts
undertaken by Estonian logistics companies have already yielded the first results as
well, when one of the largest logistics companies in the world, Katoen Natie from
Belgium, started to expand its operations
in Estonia in 2013. The advantage of Estonia as a distribution centre lies in providing quality services in a safe environment
– this is particularly important and topical
at the moment from the perspective of risk
management, as it has introduced several
companies that are actively interested in
serving the eastern markets through warehouses and logistics companies in Estonia. ‚
Priit Koff
2/2014 | Baltic Transport Journal | 43
Photos: Transport Intelligence
Logistics
The impact of robotics & automation on logistics
Auto-revolution?
One of the most discussed subjects at the World Economic Forum in Davos
2014 was the impact which advances in manufacturing technology will
have on production. In the past two years much has been written about
3D printing as well, but less attention has been paid to developments in
robotics which could have an equally material effect on industrial practices. This will undoubtedly have consequences for global supply chains.
O
f course automating production
lines are nothing new. Many industrial battles have been fought
over efforts to introduce robots to
the production process, especially in the automotive sector. However, what is happening
now has the potential to go much further.
Supply chain implications
Logistics companies must take note of
these developments as they will lead to direct
and indirect transformative pressures on the
industry. Firstly, the production strategies of
their clients will change dramatically. By adopting the latest robot technology for such basic
and repetitive tasks such as ‘pick and place’
there is the opportunity for employers to rapidly reduce labour costs. Robots are especially
good at undertaking functions where precision
or consistency is required. This of course would
rebalance manufacturers’ labour costs as well
as reduce the competitiveness of remote markets, which could lead to manufacturers preferring to establish new facilities in or near to the
major consumer markets in North America
or Europe. Intuitively, the sectors which are
most likely to lose out from these changing patterns of up- and downstream distribution will
be freight forwarders, shipping lines and air
cargo carriers focused on global flows of goods.
However, economic growth, stimulated by the
adoption of these new technologies, may have
44 | Baltic Transport Journal | 2/2014
an ameliorative impact on the size of the overall
market, although the fastest growing segment
will become domestic/regional distribution.
Secondly, there is the direct impact which
advances in new technologies could have upon
the labour-intensive transport and warehousing industry. Google is already testing technology that will result in driverless cars, and it
seems reasonable that – once regulatory and
labour organisation barriers are overcome – we
will see a growing proportion of trucks with
nobody on-board on the roads. This would
have obvious benefits in terms of costs, but
would also consign tachographs and hours of
service to history, thus improving supply chain
efficiencies. In Japan such tests are already
underway, led by the New Energy and Industrial Technology Development Organization
(NEDO) which has successfully trialled convoys of trucks without drivers using sensors
to identify their position on the road as well as
potential obstacles. The trucks are able to brake
with a reaction time of just 20 milliseconds and
hence can take advantage of the slipstream of
the vehicle in front. NEDO believes this will reduce fuel costs by 15%, but of course far greater
savings will arise from removing driver costs.
Although there is a long way to go before we see driverless trucks on shared roads,
ironically it may be safety which becomes
the main argument for their adoption. Governments are keen to reduce the number of
people killed or injured in bus and truck accidents, and a large number of these incidents
are caused by preventable driver-error.
Moreover, once a truck arrives at a distribution centre it would seem sensible for the
unloading and put away process to be entirely
automated. Already in the US, Amazon is using robots in some of its distribution centres.
In 2012, it paid USD 775 mln to the company
Kiva Systems whose robots bring product
shelves to a human picker, rather than the
human picker walking the aisles to identify a
product. According to the firm, this increases
the productivity by three to four times.
Print your own road
The development of 3D printing technology (additive manufacturing) is also continuing
at a rapid pace and serious investment is now
being made by global manufacturers into this
technology. While printing items using multiple materials is nothing new, to do so using relatively inexpensive desktop printers is an interesting example of how the technology is being
pushed forward by the research community.
General Electric has begun to detail the extensive use it will make of 3D printed parts within
its commercial jet engines. They are planning
to manufacture over 85,000 fuel nozzles for its
LEA engine orders entering production in late
2015. They are significantly increasing their investment in industrial printers in order to increase capacity to meet this demand.
The primary attraction is that 3D printed
parts are lighter, much stronger than conventional metal parts and can withstand much
higher temperatures. It seems that major aerospace manufacturers are following suit with
Rolls-Royce, Lockheed Martin and Boeing
introducing 3D printed parts into their manufacturing processes. UPS also announced
last summer that it would install commercial grade 3D printers into all of its stores
across the US for use by businesses. This is
undoubtedly a strategy for them to understand how this technology could change the
manufacturing landscape and related logistics
demands. It also gives them the opportunity
to design new service offerings based on these
observations. UPS already has a significant
service parts operation, which we suspect will
be the sector most likely to be impacted by the
general adoption of 3D printing.
Despite these developments, industry is
continuing to examine the extent to which 3D
printing may impact global supply chains. The
existing economies of scale in many sectors
are unlikely to be threatened by additive manufacturing in the immediate future. The cost
of metal powders and plastic substrates used
in existing machines is still many times more
expensive than the same compounds presently
used in conventional high volume production
lines. But the raw material cost will probably
come down and is not the only significant cost
factor in many supply chains. We expect to see
more developments as this technology enters
the mainstream, while existing manufacturers
as well as innovative start-ups challenge the
conventional business models.
The ethical perspective
There are obvious social concerns arising
from these advances in technology. Some believe that developments could result in a structural change in employment, similar to that
seen in the industrial revolution. The steam
engine, and subsequently tractors, decimated
the numbers of agricultural workers required
to deal with fields and crops. However, new
jobs were created concurrently in factories
which eventually led to the higher standards
of living seen in the Western world today.
Robotics could result, many hope, in a
similar pattern of change and it has been suggested that a new wave of employment would
be created by the production, selling and
maintenance of robots. There is no doubt
that improving efficiencies will create value,
stimulating economic output and leading to
a demand for higher value adding jobs. The
trick for politicians will be to transfer large
manual labour forces (such as those in the
logistics industry) to these higher value jobs,
otherwise they risk creating an underclass of
unskilled and unemployable workers.
‚
John Manners-Bell
CEO, Transport Intelligence
Ken Lyon
Managing Director, Virtual Partners
Photo: Wikimedia Commons
Logistics
Transport Intelligence (Ti) is delivering expert research and analysis dedicated to the global logistics
industry. Utilising the expertise of professionals with many years of experience in the mail, express
and logistics industry, Ti has developed a range of web-based products, reports, profiles and services used all over the world. Virtual Partners is a private UK-based organisation with over 30 years
of experience in providing solutions and advice related to global supply chain information services.
Advertisement The No.1 port
in Scandinavia
We have no limits. Explore your possibilities
at www.portofgothenburg.com
Organiser of the ESPO conference 2014, May 15-16 in Gothenburg,
2/2014 | Baltic Transport Journal | 45
Logistics
Oulu, the evolving Finnish logistics hub
Photo: Wikimedia Commons
Photo: Wikimedia Commons
Photo: Port of Oulu
The Northern star
The city of Oulu is considered to be a “living lab” with its technology and
research centres as well as highly developed chemical, timber and IT industries; its residents experiment with new technologies on a daily basis.
As new projects are being developed, they require an efficient transport
hub. And Oulu seems to have what it takes to strengthen its position
among the most important Northern Baltic logistics centres.
S
ituated on the north-eastern shore of
the Bothnian Bay, the city of Oulu is
the capital of the Finnish Northern
Ostrobothnia region, with a population exceeding 190,000. Apart from being easily accessible from the sea, Oulu is also a part
of such international networks as the Northern Axis, Bothnian Corridor and Arctic Corridor. The Oulu Airport is the second-largest
in Finland, serving nearly 900,000 passengers and around 2,000 tn of freight per year.
Meanwhile, Oulu’s harbour is a port of call
for approx. 550 ships each year, with annual
cargo volumes amounting to 3.5 mln tn. According to a BGLC report*, the transport and
warehousing industry in the region employs
around 5,000 workers (5% of jobs in the area).
Expanding the port’s potential
Oulu’s main exports are forestry products (paper, sawn timber), accounting for
over 50% of total cargo throughput, as well
46 | Baltic Transport Journal | 2/2014
as liquid chemicals. Paper and woodworking industry products are exported from
Oritkari, where national centres for forest
and chemical industries, major logistics
service providers, along with a combined
transport terminal are situated. Through
the recent years carbonate, fuel oils, cellulose and other raw materials have accounted for around 73% of all imported
goods (see Tab. 1); however, the constantly
growing industries in the area will probably require even bigger supplies of these
products. New wind power projects, mining industries and the Fennovoima nuclear power station have emerged and influenced the port to expand its capability
– additional storage space has already been
placed and a new area for harbour development is expected to be ready in a few years.
Between 2005 and 2012 Oulu reported
a 26% rise in average vessel size. In order
to augment Oritkari’s accessibility, the sea
fairway will be deepened from its current
10 to 12 m. To enable further development of multi-modal logistics, the railway
links will be electrified and extended by
925 m, while the roads will also undergo
modernization. Moreover, current investments include i.a. construction of a new
330 m long berth, which will be in use by
the end of this year. As Managing Director
Kari Himanen has stated, “We are looking
forward to those projects. Deepening the
water channel is necessary because of the
increase in ships’ sizes. The Port of Oulu is
the 5th biggest in Finland in container business. This business is growing and we do
some renovations on our container terminal to make the operations more efficient.”
Furthermore, three new moorings for
Panamax vessels will be created in the new
Western Pier. The Vihreäsaari bulk area will
probably be expanded by adding a 200 m
bulk pier and a 150 m service pier.
Reaching the city from the land
The main railway station in the city of
Oulu lies at the confluence of three railway
lines: Seinäjoki-Oulu, Oulu-Tornio and
Oulu-Kontiomäki. The Seinäjoki-Oulu
Tab. 1. The Port of Oulu’s handling volumes
Number of
ships visited
Domestic
import [tn]
including:
fuel oils
Domestic
export [tn]
Foreign
import [tn]
including:
fuel oils
carbonate
cellulose
Foreign
export [tn]
including:
paper
cellulose
sawn timber
liquid
chemicals
Total traffic
[tn]
Containers
[TEU]
Trailers [units]
SECUs [units]
2013
544
2012
556
Yoy
-2.2%
445,467
609,605
-26.9%
254,250
0
443,540
32,164
-42.7%
-100%
1,536,004
1,502,175
+2.3%
287,988
611,199
271,481
1,440,059
121,070
672,947
315,077
1,404,031
+137.9%
-9.2%
-13.8%
+2.6%
747,704
112,500
181,320
161,539
828,972
84,228
159,667
143,909
-9.8%
+33.6%
+13.6%
+12.3%
3,421,530 3,547,974 -3.6%
44,333
41,742
+6.2%
1,197
12,401
1,889
12,227
-36.6%
+1.4%
* Bothnian Green Logistic Corridor project,
Oulu – the Logistics centre of Northern Scandinavia,
www.bothniangreen.se/reports
Logistics
Fig. 1. Oulu’s market scope
Source: Bothnian Green Logistic Corridor
section serves above 1 mln passengers per year, while the route
between Oulu and Kokkola carries 7 mln tn of cargo per year.
The growing mining industry and Russian transit traffic via Vartius cause an increase in cargo flow via the region, transported
further by the Ostrobothnian railway track, an important part
of the TEN-T network providing connections to southern and
northern Finland, Sweden and Russia (through the Savo railway); in the long-term, a link to the Arctic Sea should be taken
into consideration. Still, the railways of the Oulu region need
upgrading in order to improve the traffic flow and develop multimodal transport services via the port.
Currently, the road traffic in Oulu can reach 60,000 vehicles
per day and it is predicted to increase by 20-40% over the next 15
years. Heavy-duty and long-distance transport makes up a notable part of the traffic. According to the BGLC report, in order to
be prepared for further growth of the cargo flow by roads as well
as enhance Finland’s national competitiveness, it’s important to
modernize Highway 4, precisely the Jyväskylä-Oulu-Kemi section. This highway – a part of the TEN-T network as well as the
international E-road network, including E8 (Tromsø-Turku) and
E75 (Vardø-Sitía) – runs from Helsinki to Utsjoki via Oulu and
provides a connection between the southern metropolitan areas
and the evolving Bothnian Bay regions of northern Finland, Sweden as well as Norway, Russia and the Arctic Sea. Other roads
enabling access to Oulu are Highway 20 to Kuusamo and Highway 22 to Kajaani. Highway 8 is located 25 km south of Oulu and
its development is especially significant in the prospect of constructing the Fennovoima nuclear power station.
‚
Magdalena Dams
Meet the Market at the Gateway to the World
2nd Trade Fair for International
Transport and Logistics Management
4 – 6 November 2014
Trade Fair Centre Hamburg, Germany
Organiser:
EUROEXPO
Messe- und Kongress-GmbH
Tel. +49 89 32391-241
www.transfairlog.com
itor
Ask for exhib
ow!
n
n
o
ti
informa Journal | 47
2/2014 | Baltic Transport
rlog.com
www.transfai
Energy
Diversification of shipping fuels
The future of fuels
DNV GL has released a position paper on the future alternative fuel mix for
global shipping towards 2050. While Liquefied Natural Gas (LNG) is expected
to be an early success, diversification will increase with hybrid alternatives.
T
 he main drivers for the use of alternative fuels are the desire to reduce
greenhouse gas (GHG) emissions
and the need to meet upcoming air
pollution requirements. “The global merchant fleet currently consumes around 330
mln tn of fuel annually, 80-85% of which
is residual fuel with high sulphur content,”
Christos Chryssakis, Senior Researcher at
DNV GL and the position paper Project
Manager, says and further underlines that:
“Shipping must change, and we must contribute with technical and operational measures as well as alternative fuels to meet the
environmental challenges we are tackling.”
Technologies to come
According to Chryssakis, over the next
four decades, it is likely that the energy mix
will be characterised by a high degree of
diversification. “LNG has the potential to
become the fuel of choice for all shipping
segments provided the infrastructure is in
place, while liquid biofuels could gradually
also replace oil-based fuels,” he says.
Electricity from the grid is most likely
to be used more and more to charge batteries for ship operations in ports and will also
be used for propulsion. Other energy storage technologies that can find application
in shipping in the future include flywheels,
supercapacitors and thermal energy storage devices. “Electrification has generated
strong interest, particularly for ship types
with frequent load variations. Significant
growth in hybrid ships, such as harbour
48 | Baltic Transport Journal | 2/2014
tugs, offshore service vessels and ferries
should be expected after 2020, whereas further applications for the technology may be
applied to power cranes for bulk carriers or
even in ports. After 2030, improvements in
energy storage technology will enable some
degree of hybridization for most ships,”
Chryssakis adds.
For large, deepsea vessels, hybrid
architecture will be
used for powering
auxiliary systems,
manoeuvring and
port
operations.
Renewable electricity could also be
used to produce hydrogen, which in turn
can be used to power fuel cells to provide
auxiliary or propulsion power. Hydrogen is
the smallest and lightest of all gas molecules
and offers the best energy-to-weight storage ratio of all fuels. However, hydrogen as
fuel can be difficult and costly to produce,
transport and store. Compressed hydrogen
has a very low energy density by volume requiring six to seven times more space than
heavy fuel oil (HFO). Liquid hydrogen, on
the other hand, requires cryogenic storage at very low temperatures (-253oC), associated with large energy losses as well as
the necessity of having very well insulated
fuel tanks. “Significant improvements in
technology, accompanied by cost reductions, are required if fuel cells are to become
Local fuels for local operations
In the long-term, short sea shipping is
expected to take advantage of locally produced fuels such as biogas, biodiesel and
methanol. Biofuels are flexible: they can
be mixed with conventional fossil fuels to
power conventional internal combustion
engines, while biogas produced from waste
can be used to replace LNG. A number of
liquid fuels can be used in dual-fuel engines
as a substitute for oil. Typically, a small
quantity of marine fuel oil is used as pilot
fuel to initiate the ignition process, followed
by combustion of the selected alternative
fuel. Some of the fuels that can be used are
liquefied petroleum gas (a mixture of propane and butane), methanol, ethanol and dimethyl ether. Most of these offer significant
reductions in nitrogen dioxide and particulate matter emissions and are sulphur-free
and can be used in order to comply with the
Emission Control Areas regulations.
In July 2013 DNV released rules for using low flashpoint liquid (LFL) fuels (e.g.
methanol) as bunker fuel. Methanol has a
relatively low flashpoint, yet is toxic when
it comes into contact with skin or when in-
Photo: DNV GL
Photo: DNV GL
competitive for ships. This includes reductions in size and weight and the need to
improve responsiveness at transient loads,”
Chryssakis sums up.
haled or ingested and its vapour is denser
than air. As a result, additional safety barriers are required. The new mandatory
notation “LFL FUELLED” covers aspects
such as materials, arrangement, fire safety,
electrical systems, control & monitoring,
machinery components and some ship segment specific considerations.
Specific needs
Deep-sea shipping needs globally
available fuels and so will tend towards
LNG and biodiesel. LNG uptake is expected to grow fast in the next five to 10
years, first on relatively small ships operating in areas with developed gas bunkering infrastructure where LNG prices are
competitive to HFO prices. They will then
be followed by larger ocean-going vessels
when bunkering infrastructure becomes
available around the world.
Experimentation with biofuels has
already started on large vessels, and preliminary results are encouraging. However, advances in the development of
biofuels derived from waste or algae will
depend on the price of oil and gas. As
a result, biofuels will have only limited
penetration in the marine fuels market
in the next decade. Still by 2030, biofuels
are set to play a larger role, provided that
significant quantities can be produced
sustainably and at an attractive price.
A well-to-propeller view
Chryssakis underlines that: “When considering the overall impact of a given fuel
on the environment, it is important to take
into account not only the direct emissions
from using the fuel on-board a vessel, but
also emissions related to the fuel’s production and transport pathway. In addition,
other effects, such as land and water usage
can become important for certain types of
fuels, especially for biofuels. An evaluation of well-to-propeller GHG emissions,
rather than just shipboard potential to reduce emissions, demonstrates some major
drawbacks for some of the options as does
an evaluation of potential availability. For
instance, the availability of land to grow
biofuels is a significant barrier to its widespread use with an area the size of Greece
required to produce 50 mln tn of biodiesel.”
“To be able to comment on the sustainability of fuels, quantitative data are
required to put things in perspective,”
Chryssakis also says. This can be done by
performing life cycle assessments (LCA) of
marine fuels which allow for the comparison between different fuel pathways along
the energy value chain as well as to assess
the environmental footprint of each fuel.
These types of assessments are complex
and the chosen scenarios highly influence
the outcomes. Whereas LCAs of alternative fuels for the automotive sector have
been performed for a long time now, the
same work concerning the maritime transport sector is something relatively new.
“While renewable energy, particularly
solar and wind, might perform favourably
in an LCA, they are not seen as a viable
large-scale alternative to commercial shipping,” Chryssakis says and explains that:
“Certainly vessels equipped with sails, wind
kites or solar panels may be able to supplement existing power generating systems,
Photo: Wikimedia Commons
Energy
but the relative unreliability of these energy
sources make them ill-suited for deep-sea
transport or operations in some latitudes
with seasonal weather conditions.”
Besides IMO rules and ISO standards,
development of appropriate rules and recommended practices is necessary for the safe
implementation of any of these technologies
in the future. “There is no doubt that adopting new technology is likely to be an uncomfortable position for ship-owners. DNV GL
is leading the way through our technology
qualification processes which are designed
to ensure that new technologies work as expected,” Chryssakis summarizes. ‚
Wendy Laursen
CONFERENCE
24 – 26 June 2014
ExCeL | London | UK
The global conference for people who
own, move & handle containerised cargo
Associate Sponsor
Global Port Sponsor
Conference Sponsors
Conference | Networking | Port Tour | Exhibition
Coffee Sponsors
Port Tour Host
Global Media Sponsor
www.tocevents-europe.com
2/2014 | Baltic Transport Journal | 49
LNG
LNG – the new bunker fuel for the Baltic Sea shipping industry?
The paradigm shift
With the enforcement of stricter sulphur regulations and changes in
bunker fuel practice at our doorstep, the shipping industry inevitably
has to adjust to the new circumstances. Businesses in the South Baltic
area are on their way to seize the opportunities of maritime regulations
and alternative fuel technologies.
T
 he sulphur limit in the designated
Emission Control Areas in Europe
– the Baltic Sea, the North Sea and
the English Channel – is today 1.0%,
falling to 0.1% in 2015. The latest Sulphur Directive of the European Parliament and the
Council defining these provisions enters into
force as of January 1, 2015. The EU Member
States have to bring their legislations into
compliance by June 18, 2014. A review of existing engine technology indicates that currently only three solutions are in accordance
with the IMO/EU regulations.
The alternatives
The first one is the usage of low sulphur
fuel, which requires only minor modifications in vessels’ fuel systems. The content of
sulphur in fuels like marine diesel oil (MDO)
and marine gas oil (MGO) can be below 0.1%,
but there are monetary disadvantages. Low
sulphur fuels are considerably more expensive
than the conventional heavy fuel oil (HFO).
According to estimations, vessels operating
within the North European ECA consume
around 13 mln tn of HFO per year. Changing
the bunkering practice to low sulphur fuels
would imply an extra cost of about EUR 3 bln
per year, which is a significant burden to be
covered entirely by the shipping industry. Another disadvantage is the limited market availability of low sulphur fuels. A rising demand
is expected to increase the price uncertainty.
As a consequence, this could lead to a modal
back shift from the sea to the roads. Experts
predict that the road freight transport sector
would favour extra road kilometres and would
avoid the sea, which could have far reaching
environmental and social implications, i.e. aggravating road congestion, potential closure of
shipping routes and jobs losses.
The second solution for decreasing SOx
emissions requires the installation of an exhaust gas scrubber which, as the name implies,
removes sulphur from the engine’s exhaust gas
by using chemicals or seawater. This technology requires significant modifications of vessels such as additional tanks, pipes, pumps, and
a water treatment system. The sulphur-rich
50 | Baltic Transport Journal | 2/2014
sludge produced is categorised as special waste,
to be disposed of at dedicated facilities. Moreover, scrubbers increase the power consumption, thereby increasing CO2 emissions.
Currently, the North European ECA
is designated for sulphur emissions only;
however, intensive negotiations between
the Baltic Sea countries and IMO, with
the active involvement of the HELCOM
Member States, aimed at establishing an
NOx ECA in the Baltic Sea are currently
in place. In the future new and more restrictive Emission Control Areas will be
established and their scope will include e.g.
particulate matter as well.
The third solution is the use of Liquefied
Natural Gas (LNG) as bunker fuel. Natural
gas is the cleanest fossil fuel available and LNG
bunkering doesn’t entail additional abatement
measures to meet the requirements in the North
European ECA. However, vessels with LNG
propulsion require purpose-built or modified
engines and a complex system of special fuel
tanks, a vaporiser and double-insulated piping. The additional space for cylindrical LNG
fuel tanks on-board the vessels has so far been a
key industry challenge, but new hull-integrated
tanks are expected to simplify this issue.
Yet the heaviest disadvantage in the
use of LNG as a ship fuel lies in the engine
technology. Today a significant amount of
Regulatory background
Back in 1997, the regulations of the International Maritime Organization
(IMO) – a specialised agency of the United Nations – heralded a new bunker
fuel era. The International Convention for the Prevention of Pollution from
Ships, a.k.a. MARPOL, was complemented with a set of measures designed
to address the growing concerns of the international community about the air
pollution caused by the shipping industry. Annex VI Prevention of air pollution
from ships entered into force on May 19, 2005, and was ratified by all Baltic
Sea countries among altogether 72 IMO Member States, which represent
94.70% of the world’s gross tonnage. This annex defines a legal framework
for minimising ship emissions, particularly sulphur oxide (Fig. 1), nitrogen oxide (Fig. 2), particulate matter, ozone depleting substances (ODS) or volatile
organic compounds. Following the ambitions of the European Community
to further reduce emissions, the IMO amended Annex IV in October 2008,
imposing further limits for the sulphur content of bunker fuels.
Fig. 1. Emission limit for SOx (IMO, Annex VI,
Regulation 14)
Fig. 2. Emission limit for NOx (IMO, Annex VI,
Regulation 13)
methane (CH4) – being 21-25 times a more
powerful greenhouse gas than CO2 – still
passes by the engines unburned. According to
a 2010 MARINTEK’s survey, which measured
Fig.3. Global forecasts – fuel bunker prices interplay (2012-2025) – base case
Source: Lloyd’s Register Group Limited
LNG
exhaust gases from gas-driven vessels in Norwegian domestic shipping, 32-154 kg per
tonne of LNG (3.2-15.4%) passed unburned.
Most modern gas engines have succeeded in
reducing the methane slip to around 2%. Regarding GHG gasses, present regulations limit
emissions of CO2 and NOx only, the methane
emissions’ case remains to be resolved.
The question of viability
For vessels manufactured after January
1, 2016, exhaust gas purification by Selective
Catalytic Reduction (SCR) or LNG bunker
fuel are the only currently available abatement measures to meet the requirements of
the new regulations.
The cost of a new vessel equipped with
an LNG propulsion system is about 10-20%
higher than a conventional vessel with similar
gross tonnage. The additional cost is mainly
due to the complex LNG storage tanks, the
fuel piping system as well as the slightly larger
size of the vessel – as engine space has to be
enlarged. Based on the experience with ships
built in the BSR, the additional investment
cost for a typical Baltic Sea cargo vessel with
LNG propulsion has been estimated to be
about USD 4 mln, whereas a scrubber installation would require an estimable investment
of about USD 1 mln. However, taking into
consideration the price forecasts for marine
gas oil (MGO), LNG vessels might have the
lowest exploitation costs (see Fig. 3).
In order to enable the navigation of vessels
using LNG as a fuel, a grid of bunker stations
is required. The average LNG bunkering time
is about one week, therefore, vessels should
have the possibility to bunker LNG in one
of the ports during their trips. Currently, the
LNG bunkering infrastructure in the BSR is
rather poor, a growing number of small-scale
LNG bunkering stations is needed.
Unlike large-scale LNG import terminals which primarily seek to secure energy
independence, the construction of smallscale bunker stations is driven by a market
with rapidly growing potential. According
to UK’s Lloyd’s Register, LNG is expected to
meet 24% of the global bunker fuel supply by
2025. In the North European ECA alone, not
only cargo vessels but also ferries, cruisers and
tourist ships have to be modified, which shows
the ramifications of this change in regulations
for different business sectors.
One of the instruments allowing businesses
in the South Baltic area to tap the full potentials
of LNG is “Marine Competence, Technology
and Knowledge Transfer for LNG in the South
Baltic Sea Region” (MarTech LNG), running
since January 2012. It is a cross-border cooperation project designed to promote LNG
technology, which has proved to be e.g. an efficient instrument for streamlining LNG tendering activities in the area: so far it has partnered
the LNG public tenders of the Municipality of
Samsø (DK) and the Lithuanian oil terminal
Klaipėdos nafta. The project is co-funded by
the South Baltic Cross-border Co-operation
Programme which covers Danish, German,
Lithuanian, Polish and Swedish coastal regions
surrounding the Southern Baltic Sea.
‚
Stefan Jankowski, Andrius Sutnikas, MarTech LNG
Vassilen Iotzov, Theresa Weiss
MarTech LNG is the driving force behind a business cooperation network, gathering actors relevant for the establishment of LNG supply chains, business partnerships and research projects as well as for the development of regulations and support schemes streamlining LNG-based business models, products and services. The South Baltic
LNG business cooperation network is free and accessible online at: golng.eu. The South Baltic Cross-border Co-operation Programme 2014-2020 will continue to support joint efforts to improve sustainable transport and connectivity across the Southern shores of the Baltic Sea. More information at: www.southbaltic.eu. The contents of this article are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union.
Advertisement 2/2014 | Baltic Transport Journal | 51
Collector’s corner
The Nordics at the Sea
In years 2010, 2012 and 2014 post offices of Nordic countries, which had a ‘joint venture’ for philatelic products, issued miniature souvenir sheets. Each edition also had a common theme. The newest – and sadly to
say, the last one – is the most interesting to us, as it is simply entitled “Ships”.
T
he theme of “Ships” were preceded by “Life at the Coast”
(2010) and “Life at the Sea” (2012). Except the title and
measures (105 x 70 mm), each participating post had
a free hand concerning the division of each sheet into
stamps (most included two) as well as, of course, all contributing artists & designers could interpret the theme as they chose.
For example, the postal administrations of Åland decided that all
three paintings were to be done by one artist (Juha Pykäläinen),
while single stamps in every sheet were simple cuttings from a
seascape. On the other hand, Greenland, which also opted for
painters’ brushes, called three artists (Miki Jacobsen, Buuti Pedersen and Aka Høegh) whose sheets include two stamps with different graphic motifs prepared by one person.
Five postal offices published documentary sheets with
photos or drawings of real crafts, situations and people. Denmark and Norway preferred pure photos, whereas Finland
and Sweden – photos converted to graphics. Iceland used
both techniques, but it was the Faroe Islands which changed
the style radically – moving
from art to a documentary
photo in the final issue.
The two first themes, “Life
at the Sea” and “Life at the
Coast”, encompassed a variety of topics, items and scenes,
promoting different values.
For instance, life at sea in
Denmark, the Faroe Islands,
Finland, Iceland and Norway
means “saving lives by SAR
services”; four sheets depict
the most effective and spectacular tool of professional rescuers, namely a helicopter. Sweden also
chose the sub-theme ‘safety’ but from a different
angle; the country’s stamps show a lighthouse, a
buoy-tender and an aircraft of the Coast Guard.
In opposition to the dominant idea, Åland’s
choice was traditional fishing (please note the
role of gulls in the picture), and in Greenland
“life” means the life of sea mammals (exactly a
pack of seals and a whale’s fin which inspired the
artist). The premiere edition also brought a rich
selection of themes for motifs: fishing and seafarming, ports and shipyards, holiday and yachting, a museum-ship and… ordinary sea-ice! The latest pair of the “Life at
the Coast” edition came from Finland (the old icebreaker Tarmo) and
Greenland whose stamps are the most – one might say – “ecological”.
The closing theme was interpreted in a more uniform manner –
ships have the simple meaning “shipping”. Most post administrations
presented one or more vessels, ranging in scales and surroundings. Remote islands lost somewhere in the Atlantic brought motifs which could
be called “lifelines”; for the Faroese it is the ferry Norröna, and for Iceland – the container vessel Dettifoss (by the way: in January the Iceland
Post honoured the 100th anniversary of the ship’s operator, Eimskip, via a
special stamp). Even in Greenland’s painted stamps we can recognise the
52 | Baltic Transport Journal | 2/2014
cargo vessel Irena Arctica from the
Royal Arctic Line and the local cruise
ship, Sarfaq Ittuk. Norway showed
its offshore industry – the PSV Normand Arctic and the Veslefrikk –
the first floating production unit in
Norway’s exclusive economic zone.
Sweden presented the icebreakers
Atle and Ymer, while Swedish neighbours from Finland boasted about
their pride – the Finnjet (it is the only
broken vessel in the whole collection). The Åland’s painted bridge of a
modern vessel is in a class of itself; however, it was Denmark Post which
knocked out a surprise here! We expected a container ship and a tanker
in the colours of leading Danish owners and received… two pleasure
crafts! A yacht and a sailing dinghy, a real bookie’s choice.
Interestingly, neither Denmark nor any other country dependent
on domestic shipping, showcased ships of its ‘cardiovascular system’, i.e.
intra-island ferries, sea barges, tugs, etc. Wait a minute! We have just invented a fourth theme –“Sea Life between Land and Land”. Will Nordic
posts fish this idea? ‚
Marek Błuś
Transport miscellany
Sadly, but the
longest and most
charming series of
12 stamps depicting
Baltic ferries has come
to its end. In Collector’s
corner since Summer
2013 we have been
expressing
our
hope that the Åland
Post would prolong
the idea following
the Estonian neverending series of
lighthouses
(27
stamps since 1995, including planned ones for
2014). But, on the other hand, each end can also
be a new beginning. Åland’s historical and present
fleets suggest some fresh ideas (today we think of
ro-ro ships). Getting back to the topic – the two
last stamps present the newest LNG-fuelled ferry
Viking Grace and the cruiser Birka Princess which
sank in 2007 as the Greek Sea Diamond. It seems
that the series, which started with a newbuilding
which never saw its completion, also ended with a
false tone. The Birka Stockholm would suit much
better as a second jewel in the crown.
At the beginning of the 20th century,
workers started to set up a sanatorium in the
Polish locality of Rudka. To get construction
materials on site, a 2 km narrow gauge (900
mm) railway was laid right through the forest
from Mrozy. A single wooden wagon with
bricks was pulled by a horse! The sanatorium
was finished in 1908 and the horse tram
thereafter started to carry convalescents. The
“kleinbahn” survived two world wars and ran
until 1967. Sadly, but in the 1970s it was taken
apart, and only some sleepers in high grass
remember this unique and environmentallyfriendly service. In 2007 an idea to re-establish
it emerged; a copy of the original wagon
was manufactured and after successful trials
in 2011, the horse tram came back on the
Mrozy-Rudka route one year later, carrying
people seven months out of a year. The project
was awarded with the ‘National Leader of
Innovation & Development – 2012’ award.
The Berlin Airlift
May 12th, 2014, will witness the 65th
anniversary of the first victory of Western
Democracies during the Cold War. Back
then the Soviet Union lifted a blockade of
land and river routes to West Berlin. The
deadlock was imposed in June 1948 and
caused a huge logistics counter operation
known as the Berlin Airlift. The Western
Allies delivered all supplies needed by the
jammed Berliners – including bulk cargo
like coal and oil – solely by air. In April 1949 alone, airplanes transported 234.5
thou. tn flying over 30,000 sorties – more cargo than in April of the previous year
by rail & road! In the latest release by the USAF Museum, a twin-boom Fairchild
C-82 Packet in the US Air Force colours discharges food at Tempelhof Airport.
This heavy-lift class was also used to transport disassembled building machines
for constructing and upgrading airfields in Berlin.
Photo: US Air Force Museum
Peeping through
a shipyard’s fence
Photos: Mrozy Municipality
Freight & pax horse tram
Photo: Posten Åland
Finis coronat opus
Narrow gauge ferries
In the previous issue we reminisced
about narrow gauge railways which
served islanders on Bornholm, Öland
and Gotland. On the Swedish islands
keepsakes of tracks and rolling stock, still
in working condition, have been saved.
Germans have something to be proud
of, too. The island of Rügen has a narrow
gauge railway (750 mm) still running –
year round! – on the 24 km section between Göhren and Lauterbach Mole on
the south-east coast of the island. Contrary to other Baltic islands, the complete
network (105 km in 1918) already had a connection to the mainland served by steam
ferries at very beginning of 1896. The postcard from the era depicts the narrow
gauge railway ferry harbour in Stralsund – a unique facility in the whole world.
Photo: A. Daszewski’s collection
All right, some may say that we are repeating ourselves
over and over, talking so many times about the idea of
postcards depicting places, events, processes, creations,
etc., not connected directly to holidays, sightseeing or
entertainment. But we are more than sure that such
postcards have everlasting educational value and should
be supported by various businesses. One more black and
white example comes from the Gdynia Shipyard and
presents side launching of an anonymous fishing vessel,
probably for French owners. It was issued by a publishing
office, not by the shipyard, and has no logo on either side,
nor an add, or any other mark of cooperation between
potential partners. The idea still awaits its midwife.
2/2014 | Baltic Transport Journal | 53
Who is who
The bloom is on the rose
LAMIA KERDJOUDJ-BELKAID
Secretary General of FEPORT
BŁAŻEJ CIESIELCZAK
Regional Director CEE, Goodman
Lamia Kerdjoudj-Belkaid, the new Secretary General of the Federation of European Private Port Operations, has over
18 years of professional experience in
the maritime and logistics sector. During
her career, Kerdjoudj-Belkaid has held
the position of Public Affairs Manager
of the French Shipowners’ Organization;
she has also acted as a Senior Expert and
Advisor on several EU projects.
Błażej Ciesielczak has been appointed by
Goodman as the new Regional Director
Central & Eastern Europe, earlier working as Country Manager for Poland. In
addition to his previous responsibilities,
Ciesielczak will now also supervise the
company’s operations across the Czech
Republic, Slovakia and Hungary. Prior to
his six-year experience at Goodman, he
spent 12 years working in the property
and construction industry sectors.
INGRID ROSSMEIER
Rotterdam’s representative for
Southern Germany
ALAN MCKINNON
Chairman of EU Transport Advisory
Group
The Port of Rotterdam’s Ingrid Rossmeier
graduated as a business economist in 1977.
She started her professional experience
working for Quelle in the global imports
and Eastern Europe trade departments.
From January 2010 she worked as Transfracht’s Regional Director for the southern
region covering seven terminals including
Nuremberg, Regensburg, Munich and Ulm,
before joining the Rotterdam port.
Professor Alan McKinnon joined the Transport Advisory Group for ‘Horizon 2020’ – the
EU Framework Programme for Research
and Innovation. McKinnon is Head of Logistics and Dean of Programs at Kühne
Logistics University Hamburg. He began
his scientific career in 1979 at University of
Leicester in the UK. Later on, he worked at
Heriott-Watt University in Edinburgh, where
he was appointed full professor in 1995.
SANDRA TRANSCHEL
Dean of Programs at KLU Hamburg
PIOTR PAWŁOWSKI
OT Logistics’ President of the Board
Sandra Transchel has been promoted from
Associate Professor for Supply Chain and Operation Management to Dean of Programs
at Kühne Logistics University Hamburg. She
graduated from Otto von Guericke University in Magdeburg receiving a Diploma degree in Business Mathematics. She obtained
her PhD from the University of Mannheim in
2008. From 2008 to 2011 she was Assistant
Professor for Supply Chain Management at
Pennsylvania State University.
Piotr Pawłowski has been working for OT
Logistics since May 2011 – first as Sales
Manager and, since December 2013, as a
Member of the Management Board. He is
now President of the Management Board.
Over time, Pawłowski has held many
other posts such as Vice-President of Rentrans Cargo, Managing Director of Odra
Rhein Lloyd and President of the Management Board at Deutsche Binnenreederei.
JAN HANSES
President and CEO at Viking Line
ZBIGNIEW MIKLEWICZ
President of the Board at Szczecin
and Świnoujście Seaports Authority
Viking Line’s Board of Directors has chosen its new President and CEO in the person of Jan Hanses, who succeeds Mikael
Backman in this position. Hanses joined
the company in 1988 and served as General Counsel, Head of Human Resources
and Executive Vice-President. In addition,
Hanses is a Member of the Board of Directors at Rederierna Finland, Sveriges
Redareförening and at the International
Chamber of Shipping.
54 | Baltic Transport Journal | 2/2014
Zbigniew Miklewicz is now President of the
Management Board of the Szczecin and
Świnoujście Seaports Authority. Since 2011,
he has held the position of Treasurer of the
West Pomeranian Voivodeship. In 2003 he
began working for Zakłady Chemiczne Police and became the company’s President in
2009. Miklewicz received a PhD in economics
from the University of Szczecin and worked
within the banking sector for many years.
The Global roll-on/roll-off
Shipping Industry Event
NEW FOR
2014
RORO Moves
to London
RORO 2014 will take
place at London’s
ExCel, one of Europe’s
premier exhibition
and events
venues
Visit RORO 2014 for a time and
cost-efficient way to do business
Source new products, technologies and innovations
Learn how to streamline your operation, save shipping costs
and improve efficiencies
NEW for 2014! Attend the FREE Strategic conference sessions
NEW FOR
2014
RORO will be
co-located with
TOC Europe &
Port Centric Logistics 2014
Network with industry colleagues and associates at the
FREE networking event
Your badge gives you free entry into TOC Europe and Port
Centric Logistics 2014
Register FREE today at www.roroex.com/btj
Gateway to
Europe+
Pomeranian Logistics Centre
Flexible warehouse space close to DCT Gdańsk
+
+
+
+
Unique opportunity for built-to-suit warehouse, production and office space
Up to 500,000 sqm to support your growing business
Directly connected to the Deepwater Container Terminal (DCT) in Gdańsk
Excellent connections to rail, road and sea transport
Read more www.pomeranianlogisticscentre.com
or contact us +48 22 222 21 00