ww world 3-2008

WWWORLD.3.2008 1

corporate magazine for Wilh. Wilhelmsen asano. 3 - 2008 - 21st year

Special report

EmErging markEtsRapid changes in world trading patterns also represent new opportunities. We've challenged the CEOs of WWs wholly-owned and joint-venture companies to present their strategies for the emerging markets.

Håkon Vik has seen action in a number of the world's

trouble spots, most recently in Georgia this August.

the black Sea region:

Gateway to Growth

One of the biggest challenges for the entire shipping industry will be the global manning shortage.

the troubleshooter

kEEping thE right pEoplE

WWWORLD.3.20082 WWWORLD.3.2008 3

04 WW MileStoneS

10 cUrrent aFFairS

11 10 QUeStionS new area director for Wss in singapore James niall William Denholm aims to double the number of handled port agency calls within five years.

12 people & placeS We've encountered ships service in the desert, the hurricane gustav and a nuclear scientist turned ships agent.

16 Special report:

eMerging MarketS the world’s trading patterns are changing. the ceos of the WW group explain how they prepare and develop emerging markets.

24 Special report:

the black Sea-region Wilhelmsen ships service was the first Western ship agency to establish a foothold around the Black sea. today this area is experiencing significant financial growth.

32 the right people World shipping is facing a huge shortage of skilled mariners. for WW the challenge is rather how to keep the many good people already employed.

36 the JellYFiSh

probleM the introduction of unwanted marine organisms is seen as a major threat to marine biological diversity. We dive into the problems and solutions regarding ballast water.

38 the eXtra Mile it's your willingness to provide added customer value that will determine your success, as colleagues in california and singapore agree.

40 the troUbleShooter WW's ‘secret weapon’ håkon Vik has seen the inside of more third world jails than he cares to think about.

44 boat people a father who reads the story of his rescue by a WW ship as a good night tale to his young daughters is part of the new exhibition ‘Boat people’.

45 SUcceSS StUDY

a Wss study in port efficiency resulted in new business even before it was finished.

oUr FocUS in this issue of WW World is on emerging markets. as you will note, all our wholly-owned subsidiaries and joint venture companies have clear strategies and

plans for the emerging markets. the plans are ambitious but realistic, and i am proud to see that our maritime industrial group is well positioned for growth. We are world leader in the ro-ro ocean transport segment as well as in vehicle logistics. Wilhelmsen maritime services has achieved remarkable growth over the last three years, with a ten-fold revenue growth since 2005. that is impressive.

hoWever, we are also living in a time where caution is needed. the world economy is troubled. raw materials, including oil, have reached unprecedented levels this year. this summer the price of fuel (bunkers) exceeded UsD 700 per tonne, which is three times the price we paid just two years ago. as a consequence of the volatile global economy it is important to be cautious on how we use and how we commit to use our resources. We have to be mindful of our own cost efficiency - present and future.

at the SaMe tiMe, we need to recognise the opportunities that often arise in times of crisis and global recession. financial strength will secure our ability to benefit from these opportunities. this gives us the flexibility to adjust to shifting markets. in addition, the WW-flag represents 14 000 professional and experienced men and women who know the industry and work together with our customers. if we include our joint ventures, our global network comprises more than 23 000 employees.

i WiSh YoU all an inspiring last quarter of 2008. stay alert and be motivated in your daily work. together we will discover the opportunities and seek the challenges of tomorrow. By joining forces we will turn bad times for the economy into good times for the WW group.

ingar skaug group ceo

contentS

no 3 2008 pUbliSheD bY:

Wilh. Wilhelmsen asa corporate communications no-1324 lysaker, norway

pUbliSher:

group vice president Bjørge grimholt

eDitor:

arild s Johannessen

eDitorial contribUtorS:

hans chr Bangsmoenstacey cameronnils petter DyvikBjørg ekornrudeinar chr erlingsenkarin t erlingsenBenedicte gudearild s Johannessenkaia meansDon pylehåvard solerødpeter stockleymarianne h Wang

DeSign anD laYoUt:

Dinamo red.

circUlation: 8 500 copies

printer: ts trykk, printed om paper approved by the swan, the official nordic ecolabel

technical pUbliSher:

forlaget media as, no-3110 tønsBerg

tip US! YoU've got neWS? give us a tip! please send an sms or call +47 481 91 921 or +47 934 01 974 for stories that you might think are suitable in WW World. you may also contact us by email: [email protected]. since our group consists of our 14 000 employees located in over 70 countries worldwide, we are dependent on you telling us in the editorial staff what's going on. tip of the month will be rewarded with 250 UsD.

the ceo's letter

Positioned for growth

cover photo: two happy sailors working for the Wilhelmsen group. keeping good employees is a challenge in a time where there is a huge shortage of skilled mariners. (photo: Dag spant)

46 Singapore eXpanSion Wss in singapore is extending its warehouse and workshop facilities to meet increasing demand.

43 the tUrning point Business increased significantly when Wss made the strategic decision to follow their customers, both commercially and operationally.

48 on Site: copenhagen cruise ships and Danish shipowners are the basis for Wss operations in this gateway to scandinavia’.

50 YoUng talent meet andaç geyik, a new colleague in istanbul, turkey.

51 tiMe to act a crackdown on emissions of noxious gases from ships is well underway. introducing Wms new environmental concept “act”.

52 WW hiStoric corner the golden age of liner shipping

YoUng talent: meet andaç geyik (to the left), sales engineer for Wilhelmsen ships service in istanbul.

10 QUeStionS:

James niall William Denholm

WW proFile:

håkon Vik, "the trouble shooter" in Wss

oDeSSa: Wss representatives logistic manager alexey shevchuk (to the left), captain Dag erik os and operation manager Dimitri galitski and their company are well placed to take part in the development Ukraine is undergoing at present.

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WWMileStoneS 19 to 43%

40% DoWn WW's investments in increased fuel efficiency are showing results. one example: the next mark V ro-ro generation (to be delivered in 2011) will be 40% more efficient that the mark i generation (1979) in terms of fuel consumption per cargo unit carried, adjusted for speed.

25% DoWnWW's car carriers are becoming more fuel-efficient as well. torrens (built 2004) uses 25% less fuel than terrier (built 1982) under otherwise equal circumstances.

norWaY: The overall fleet utilisation for our shipping operations re-mained very high during the second quarter. Major trades remained strong throughout the period. The solid demand for cargo transporta-tion keeps the fleet very busy, and it is a constant lack of newbuildings.

We are therefore please to see seven more new vessels commencing service for Wallenius Wilhelmsen Logistics and EUKOR Car Carriers in 2008.

As of end September, WW and its partners have 21 vessels on order for Wallenius Wilhelmsen Logistics and 19 for EUKOR. Of the 40 vessels, 12 are on WW’s account.

korea: the fuel savings project was launched on 1 January 2008, and focuses on operational efficiencies to reduce fuel consumption. the review of first half of the project shows very satisfying results, as eUkor has saved approximately UsD 4.1 million by energy efficiencies mainly through deploying economical speed, as well as technical adaption such as hull cleaning and propeller polishing, optimising vessel conditions, and tools for decreasing propulsion resistance. total co2 emissions were reduced by 22 000 tonnes during the same period.

"We have achieved good results, but there is still more to gain by reducing the idling time of vessel opera-tion and other measures," says mr. i s mok, who is heading the project. (source: eUkor neWs)

toP education for toP leaders

euKor saves millions on fuelDuring the first half of 2008, EUKOR's fuel savings project resulted in great cost savings and reduced environmental impact.

the logistics and maritime services segments within the WW group are growing fast. While the segments combined contributed 19% of the group's total eBit (earnings before interest and taxes) in 2004, their contribution had increased to 43% by the end of the second quarter this year. this is a result of the group's long-term strategy of diversification. the traditional shipping segment delivered the remaining results.

4 000 USerS

the interest in WW academy's e-learning pro-grammes is overwhelming. recent statistics reveal almost 4 000 regular users among WW employees world wide, with more than 1 000 courses completed each month since January 2008."Very impressive, and a strong indication that our employees wish to develop through learning. Which is, of course, a great asset, both to themselves and to us as a company," says group ceo ingar skaug in a comment.

norWaY: the international maritime organisation (imo) is taking action on sulphur emissions from marine fuels and will gradually reduce maximum fuel sulphur content from present day 4.5% to 0.5% by 2020.

"this will have an impact on our future ships," says shipping and environment consultant petter Jønvik in WW asa.

so which is the best solution: to switch from heavy fuel oil to distillates – or to introduce scrubber technology in order to

capture sox on board?representatives from all three parties met at WW head-

quarters in late september to discuss the study’s findings. "the main conclusion is that there are only marginal

differences in environmental effect from the two methods," says mr. Jønvik.

not so when it comes to financial impact, however. to upgrade oil refineries to produce distillates will be both energy demanding and expensive for the oil companies,

whereas the ship owners will carry the main burden if scrubbers are chosen.

"the good news is that both methods will fulfil the imo requirements," says mr. Jønvik. "it's not yet the time to draw any final conclusions regarding method. But we know much more about the environmental consequences of the solution we go for. We will move forward slowly and aim to find solutions that will best serve the interests of all parties."

FroM Well to StackWW, the classification society DNV and Shell Marine Fuels have joined forces in a unique life cycle analysis of oil from wellhead to ship funnel.

from the left: petter chr. Jønvik, shipping and environment consultant, Wilh. Wilhelmsen asa roger cracknell, shell global solutions (Uk) koen steernberg, shell global solutions (amster-dam) tommy Johnsen, technical & Qa manager yarwil, ex. DnV

UpcoMing DeliverieS oF WW veSSelS:

Month operator Vessel type yard size (CeU)october WWl pctc mhi 6 550october WWl lctc Daewoo 8 000november eUkor pctc (elongated) hyundai samho 8 100December eUkor pctc tsuneishi 5 340December eUkor pctc (elongated) hyundai samho 8 100December WWl lctc Daewoo 8 000December WWl pctc mhi 6 550

norWaY: ccl scores among the top ten providers of executive education in the financial times' annual ranking for the last three years, along with prestigious institutions such as Duke's, harvard and the University of chicago.

"ccl's program for executive education is very much in line with how we want to adapt our leaders to a constantly changing business environment," says head of WW academy, Johanna sundén. "they provide an excellent programme at a reasonable cost and regard WW as an interesting, proactive partner in leadership development," says ms. sundén.

aDapting to change "our new program for global leadership development is tailor-made to our needs, and reflects the changes in views on leadership which we've identified," says Johanna sundén.

"new topics such as how to manage rapid growth, how to ensure innovation and increase change manage ment capabilities are considered to be of great importance, and form central parts of the new programme.

"We base all our leadership development programmes on the assumption that excellent leadership can be learned. knowledge and practice is what will provide a global leader with that extra cutting edge to succeed. that is exactly what our new leadership programme will provide," says Johanna sundén, head of WW academy

WW Academy joins forces with Center for Crea-tive Leadership. CCL is among the world's highest ranked institu-tions for leadership development.

head of WW academy, Johanna sundén

the next mark V ro-ro generation will be 40% more efficient that the mark i generation.

new additions to busy fleet


WWMileStoneS

norWaY: over 80 executives, vice presidents, directors and managers from all the WW/Wms regions around the world gathered for the two-day conference at the WW headquarters at lysaker outside oslo. it was the biggest management conference ever, and in that sense a symbol of the continuous growth the WW group has experienced in recent years.

Day one was dedicated to a thorough presentation of the main strategies for our business segments shipping, logistics and maritime services. strat-egy for human resources (hr) and organisational development was also part of the agenda, before group ceo ingar skaug invited the whole delegation on a late evening cruise and dinner on board s/s christiania, cruising the oslo fiord.

Day two was solely focused on Wilhelmsen maritime services, from Wms’ main strategy to an in-depth view of the four business segments. and was the conference worth it? Darren gouk, sales development director in Wss singapore sums it up:

“it’s important to understand the strategy at a corporate level and to learn more about the whole WW group. and the insight into our future strategies was also very useful. But best of all was the opportunity to meet colleagues from all over the world, exchange experiences and develop a whole new professional network.”

participants: marcin mrowczynski (to left), Darren gouk, and David Welch where three of the participants on the annual Wilh. Wilhelmsen management conference.

region aMericaS:

north and Central america: ➜ Bob canningsouth america: ➜ ketil lund

region eUrope:

scandinavia: ➜ christer Bondeeastern europe: ➜ James parsonsCentral europe & UK: ➜ simon huttsouthern europe & north africa: ➜ salvatore previtieastern Mediterranean: ➜ nicos shiakallis

region aFrica,

MiDDle eaSt & black Sea:

east/south africa & indian subcontinent: ➜

robin rodricksMiddle east: ➜ richard moggBlack sea: ➜ Jon arve nilsen

region aSia & paciFic:

north east asia: ➜ neal Derocheoceania: ➜ michael Buchanansouth east asia: ➜ niall Denholm

cSF where established as a tool to encourage and streamline the inte-gration of security practices into the day-to-day activities of the operating

companies. CSF also works with other fields of expertise within the operating companies, e.g corporate governance, information security, business continuity, protection of reputation and emergency management in order to en-sure that security issues are duly addressed across these fields. The first meeting for the joint Corporate Security Forum was held in Southampton in April 2007.

riSk ManageMent. The main topic for the meeting in Seoul, Korea was Risk Management in a broad approach.

“Security is far more than having “blindfold-ed” locks and surveillance implemented. All businesses have to address risk awareness and mitigation, which means to identify threats, find

adequate ways to prevent them and also how to handle them if they occur.”, says Tor Langrud, Group Security Officer in WW.

“We’re all helping each other within the network and are exchanging experiences, knowledge and competence to improve the security within the entire group of companies’ says Michael Kellermann, Chief Security Of-ficer in Soyagroup/Wallenius.

The group of 12, including Group Vice Presi-dents for Communication Bjoerge Grimholt (WW) and Cecilia Kolga Head of corporate

communications (Soyagroup/Wallenius) also discussed themes such as travel security pro-cedures, emergency preparedness, incident handling and information security. Visits to the DMZ – the de-militarized zone – between North and South Korea and the head office of EUKOR and the regional offices of WWL and WSS in Seoul were also on the agenda.

“The CSF meeting in Korea was very fruitful, and we will until next meeting in 2009 proceed to improve security within the companies”, says Tor Langrud and Michael Kellermann.

larGest ww manaGement conference ever

“Pursuing opportunities” was the main topic for this year’s management conference in wilh. wilhelmsen asa 8 and 9 september.

The fourth joint Corporate Security Forum (CSF) for the WW Group and Wallenius companies were held in Korea 23rd – 25th September 2008. The main topic was Risk Management.

ww/wallenius security forum meets in Korea

the participants in corporate security forum at the de-militarized zone between north and south korea. front from left: leen de Visser, Wss – steinar forberg, eUkor – michael kellermann, soyagroup/Wallenius – Dan conaton, WWl. second row from left: tor langrud, WW asa – annika andersson, soyagroup/Wallenius – matt eisele, asl group. third from left: Bjoerge grimholt, WW asa – espen hofland, eUkor – cecilia kolga, soyagroup/Wallenius – Brian anderson, Uecc - sture theolin, neutral nations supervisory commission in korea.

“We’re all helping each other Within the netWork anD are eXchanging eXperienceS, knoWleDge anD coMpetence to iMprove the SecUritY Within the entire groUp oF coMpanieS" Michael kellerMann, chieF SecUritY oFFicer in SoYagroUp/WalleniUS.

WSS solved the problemUniteD arab repUblic: When a tanker pacific vessel needed urgent assistance in ruwais, they first turned to their protective agent for help. When this failed, they turned to Wilhelmsen ships service. the operations team in abu Dhabi/ruwais swung into action and solved the problem.

the situation was acute. the master of the pacific turquoise had to disembark because of a death in the family. When the protective agent was unable to sign off the master in ruwais, tanker pacific turned to ravish pallovoor, Wss operations manager abu Dhabi/ruwais for help. twenty-four hours and a ‘daunt¬ing task’ later, the Wss team had done something that no other agent has done: signing off a crew in ruwais. this is a highly restricted petroleum port where no husbandry services are allowed. Well done to the team in abu Dhabi/ruwais!

kia Up 15.8%korea: kia MotorS corporationS reporteD a 15.8% Year-on-Year increaSe aFter global SaleS oF paSSenger carS anD coMMercial vehicleS reacheD 129 443 UnitS in JUne 2008. SaleS increaSeD heavilY in china, korea anD north aMerica aS Well aS in the general MarketS, While theY took a Slight DoWntUrn in eUrope (2.6%). total global SaleS For kia in the FirSt halF oF 2008 reacheD 717 154 UnitS. (source: eUkor neWs)

area DirectorS take FirM gripThirteen area directors have been appointed as a result of recent organisational changes in Wilhelmsen Ships Service.

norWaY: The new organisational structure is aligned with WSS' strategy of improved customer service, profitable growth through market segmentation and commercial pres-ence close to customers.

The new area directors are responsible for the assets, revenue and profitability through-out WSS in collaboration with each other and the sales, finance and business directors. The

new structure is considered a turning point in how to collaborate and run the businesses within WSS, as segment related activities are combined with international sales to ensure a closer match between customer needs and segment priorities. The organisational changes include a shift from eight to four WSS regions, each headed by a vice president who is also part of the central WSS management team.

area leaDers: James parsons, area director eastern europe (in the foreground) and christer Bonde, area director scandinavia.

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the neW area DirectorS are:


WWMileStoneS

Ukraine: “Wilhelmsen Ship Management has a good reputation. Food on board their ships is good and plentiful, and you get the materials and equipment you need to do the job properly. These are important matters to me. I also like the trade, working on a new ship that sails between the Arabian Gulf and Japan with few port calls. Friends who have worked for WMS recommended that I seek employment there," says Mr. Kutko, happy to be on his way after four months at home. He has just built a house.

There are some 150 manning agencies in Odessa. Officers from the Ukraine make up the third largest group of seafarers, after China and the Philippines. WMS opened their Odessa office two years ago.

WMS general manager Yuriy Leshchynskiy mentions some more benefits that their crews are offered, such as career planning and medi-cal insurance covering both the seafarer him-self and his family.

“Almost 200 seafarers have been recruited since we started, and we want to grow further. There are three big maritime training centers in Odessa, a city with long seafaring traditions. The Ukrainian seaman is very well qualified and much sought after in a world with an increasing shortage of skilled officers," says Leshchynskiy.

norWaY: The Board of Directors of GLOVIS, together with representatives from senior management, held its first board meeting outside Korea in week 33. The venue was Wilh. Wilhelmsen (WW) headquarters at Lysaker outside Oslo, Norway.

The WW group owns 20% of the shares in GLOVIS, a member company of the Hyundai Kia Automotive Group and a global logistics

provider. During the meetings in Oslo further cooperation and synergies between WW and Glovis were elaborated, and several initiatives identified.

Host at the Oslo venue was deputy chief executive officer, and Glovis board member, Mr. Sjur Galtung from Wilh. Wilhelmsen. The Glovis delegation was headed by president and CEO Chi Woong-Kim.

RecoRd gRoWthnorWaY: strong demand for maritime services and increased cargo volumes contributed to a solid increase in profit for the Wilh. Wilhelmsen group during the second quarter of 2008. total operating income for the group in the second quarter of 2008 amounted to UsD 894.8 million, up from UsD 671.4 million in 2007, while operating profit came to UsD 74.7 million compared with UsD 68.2 million last year. “this 33% increase in income stems from a growth in cargo volumes carried by a larger fleet, rising demand for maritime services and higher bunker cost compensation,” says ingar skaug, group ceo at Wilh. Wilhelmsen.

WSS WinS Supply dealgerManY: Wilhelmsen ships service's central europe sales team has won a deal to supply chemicals, gases, refrig¬erants and maintenance and repair products to a newly founded purchasing group in northern germany. the group consists of 21 small to medium sized shipping companies along the elbe river between hamburg and the north sea. the group has a total fleet of about 70 ships; mainly container feeder vessels but also some heavy lifters. an additional 15 newbuilds are planned by 2011.

aRc’S fiRSt call in MuMbaiinDia: american roll-on roll-off carrier (arc) has successfully completed two calls to india. the mV freedom called in mumbai in march with 903 cars and 25 buses. the mV resolve arrived three months later with a cargo of 1 800 cars and 186 buses/chassis. Wilhelmsen ships service handled the ships agency end for both calls.

Six scores on ‘top ten’ listkorea/USa: When eUkor car carriers announced its top ten ships agencies for 2007, six of the ten were part of the Wilhelmsen ships service network, with Wss' seattle office on the very top of the list.

"it is truly an honor to receive such an award and also very rewarding to see a similar trend along our entire West coast area. it is also very encouraging to receive such positive acknowledgment and feedback from our principal," says keith Davison, Wss area general manager West coast north america in a comment.

congratUlations: the photo was taken at eUkor’s office in costa mesa california and shows from left to right: Örjan Johansen, vice president, eUkor; kevin king, marine manager, Wss seattle, keith Davison, area general manager, Wss West coast north america; seung hyun nam, head of region north america, eUkor and captain Jong hwan Jo, port captain/operations, eUkor.

first car: coconut breaking ceremony at the load-ing of the first car on the first arc call to india.

Glovis board meeting in oslo

oslo meeting: the Board of Directors in glovis met with senior management from Wilh. Wilhelmsen and subsidiary com-panies in the first board meeting outside korea. this is the whole group assembled outside the WW headquarters at lysaker Brygge. (photo: arild s Johannessen)

neWly enlisteD: chief officer yuriy kotko (front) has just signed on with Wms. Behind him from the left, Wms staffers yuriy leshchynskiy, elena grygoryeva and sergiy Volkov. (photo: håvard solerød)

signing on in odessaTwo hundred mariners have been hired since WSM started their Odessa operation two years ago. Chief officer Yuriy Kutko is their latest recruit.

Milestone for WSS in indiainDia: an important milestone was achieved when Wilhelmsen ships service was awarded government-owned Bpcl’s ships agency business in india. the contract involves handling port calls of their time chartered crude oil tankers at the port of cochin. Wss already handled Bpcl’s ships agency business in saudi arabia, malaysia, kuwait, port sudan and china.

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the port of cochin.

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Malta

10 QUeStionS: JaMeS niall WilliaM denholM

what are your company’s goals for the future?

a: We are going to double the number of han-dled port agency calls in the next five years!

Q: that is very ambitious! could you elaborate?a: The market potential is high – related to Sin-gapore’s strategic location between East and West. Add to this the increase in the merchant fleet, possible new customers, increased sales and not least acquisitions.

Q: what does your job entail?a: As one of 13 new WSS area directors I am responsible for the commercial operations and activities for Wilhelmsen Ships Service in six countries, with 550 employees and some 5 500 port calls annually. We must, of course, deliver results in accordance with strategy and share-holder expectations.

Q: the name denholm is familiar?a: Yes, some people may recognise the name Denholm from the UK based joint venture Denholm-Barwil. The Denholm group was founded in 1866, five years after Wilh. Wil-helmsen, and business relations between the companies have been ongoing since the early beginnings. Both businesses were founding members of BIMCO in 1905.

Niall Denholm is newly appointed area director for Wilhelmsen Ships Services (WSS) in Singapore.

naMe:

James niall William Denholmage: 45 Job title: area director south east asiaFaMilY: married, three childrenintereStS/hobbieS: skiing, sailing and hunting

Q: what was your position in denholm-barwil?a: I was managing director of the joint venture company for four years. It felt right for me to leave the company now and move onto new challenges. I have every confidence in the man-age ment team I leave behind in the UK.

Q: time for a new job in a new country?a: Singapore was an easy choice for me, as I

have spent my entire career in the maritime industry. I wanted to make a real change in my life and this new job represented an op-portunity to work outside the UK. For me, the bigger the challenge the more energy and job satisfaction I get!

Q: what did you learn from the partnership?a: I gained valuable knowledge about the Wilhelmsen system. I already know a lot of people and I am familiar with the Wilhelmsen culture. This will hopefully give me a kick-start to my new job.

Q: how will you set about reaching your ambitious goals?a: I'm convinced that networking is the name of the game. WSS is a fairly new brand, so we need to get out there, let people in the business know who we are, what we can do – and then do it.

Q: what would you say is your biggest strength?a: I’m very much a hands-on kind of person. I learn a lot more by talking with and observing

the people who really do the job, than I do from reading a pile of papers. Besides, as I am neither a Unitor nor a

Barwil person, I can make unbiased decisions.

Q: did you bring your family with you to singapore?a: It took my wife about one minute to agree, while our three kids were convinced by the idea of summer all year and also the chance to spend time with their uncle, aunt and three cousins already living in Singapore. I enjoy the weather in Singapore; however, I doubt I will be able to practice my skiing here. The pros-pects look a lot more promising for some other of my interests, including shooting, sailing, tennis and golf!

"i learn a lot More bY talking With anD obServing the people Who reallY Do the Job, than i Do FroM reaDing a pile oF paperS."

cUrrent affairs

norWaY: In this column I will try to explain why we are doing this, and point out some of the consequences.

The reason for not entering into the new tax regime in Norway is that we no longer believe in the predictability and sustainability of the Norwegian tax regime. As many may recall, the old tonnage tax was abolished last year, at the same time as a new regime was introduced. Previous participants, including WW had to book a substantial transition tax due to the abolishment, in breach of the premises for entering into the old regime. For the WW group, this postponed tax is equiva-lent to approximately USD 208 million.

What we are now doing, is establishing a new ship owning structure in Malta. The Maltese tax regime is similar to the tonnage tax regimes in

the other EU countries, as well as the new Nor-wegian tonnage tax regime. We have established our new office in Malta in the second half of 2008, and six of our newbuilding contracts have already been transferred to the new company, Wilhelmsen Lines Shipowning Malta (WLS).

The main reason for choosing Malta is that the nation has defined finance and shipping as key areas of future business growth. We are confident that the Maltese Government will do its outmost to maintain the existing tonnage tax system unchanged for many years ahead.

It is expected that the Malta company will acquire further vessels in the future, and de-velop into an important ship owning location for the WW Group. The WW Group will thus have two wholly owned ship owning locations, Wilhelmsen Lines Car Carriers (WLCC) in

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republic of malta is a small and densely populated european microstate, comprising an archipelago of three is-lands, making it an island nation. situated in southern europe, 93 km (58 mi) off the coast of sicily (italy), it is located in the mediterranean sea, giving the country a warm mediterranean climate, while a further 288 km (179 mi) to the island's south is libya. the nation's capital city is Valletta. the country's official languages are maltese and english, although there are strong historical ties to the italian language on the islands. malta gained independence from Britain in 1964 and is currently a member of the european Union which it joined in 2004, in addition to being part of the commonwealth of nations and the Un. (source: Wikipedia)

malta: the cunard cruise liner "Queen Victoria" manoeuvres into Valletta's grand harbour on her maiden visit on may 14, 2008. malta has defined finance and shipping as key areas of future business growth.

ww ship owning operations to maltaThe Board of Directors of Wilh. Wilhelmsen ASA has decided not to enter into the new tonnage tax regime in Norway for the majority of our Norwegian related shipping activities. In-stead WW are establishing a ship owning structure at Malta. by nils petter Dyvik cfo Wilh. Wilhelmsen asa Photo scanpix

Southampton and WLS in Malta. In addition, we own ships through the companies EUKOR (Korea), ARC (USA) and Mark I (Singapore), together with our joint venture partner Wal-lenuis. We will also maintain a limited ship owning activity in Norway.

The headquarters of Wilh. Wilhelmsen ASA will continue to be at Lysaker outside Oslo in Norway. The setting up of the Malta operation will not in itself result in any functions being moved from Norway to Malta.

We have not yet decided whether the Malta owned vessels will carry the Maltese flag. However, before we decided to move to Malta, we carried out thorough research. The Malta Maritime Authority has done a lot of good work in recent years to improve the quality of its fleet, and in 2006 Malta was top rated in the International Port State Control White List, together with i.e. the NIS (international Norwegian ship register) and UK. Malta flag is therefore by no means any attempt to sail under a “flag of convenience”.

We are very confident that Wilhelmsen Lines Shipowning Malta and Wilhelmsen Lines Car Carriers in Southampton will fulfil each other both operationally and strategically and enhance the future of WW as a leading global maritime operator.

text and Photo: Benedicte gude


people&placeS

YokohaMa: the working title of the series is “norwegian shipping, a historical documentary series” and will be aired on nrk in 2010. nrk approached Wilh. Wilhelm-sen with a request for footage from a modern, global shipping operation. operations and life onboard tortugas will be featured in all four programmes.

on 31 august, tV photographers Dag indrebø and cecilie skurtveit welcomed tortugas into yokohama's terminal 1. While waiting for her to berth, they actually filmed another WW vessel, tarifa, leaving port as an extra ‘bonus’. as tortugas' master captain pål myhre observed: “this berth doesn’t even get cold before the next WW vessel arrives!”

the tV team was highly impressed with the efficient operations as well as the warm welcome and cooperation they received from the crew onboard tortugas. final toUches: tV photographers Dag indrebø and cecilie skurtveit make their camera

ready for filming. tortugas has just berthed at yokohama's terminal 1.

tortugas stars in tV documentarythe norwegian broadcasting corporation (nrK) started filming a series of four programmes onboard ww's tortugas when she berthed in yokohama.text and photo: marianne h Wang

SUDan: The Merowe Dam is a gigantic scheme for hydropower generation under construction at the fourth cataract on the River Nile. It will serve

a number of purposes, including generating electrical power to meet the increasing needs in Africa's largest country.

The dam will have a length of about nine km and a crest height of up to 67 meters. Be-ing located some 350 km north of the capital Khartoum, the logistics challenges during the construction period are enormous.

In 2006 the local Wilhelmsen Ships Service office in Port Sudan teamed up with European logistics provider Geodis to establish the joint venture Baasher Barwil Heavy Lift Equipment Transport Co. The company has been a success right from the start.

"The dam is expected to be completed in 2009. After that we will continue to provide heavy lift services all around the Sudan. The need for well-organised transportation of heavy cargo is tremendous," says WSS general manager captain Elfatih Idris in Port Sudan.

the customers’ ears and eyesJaba Tarimanashvili monitors the flow of goods through the port of Batumi carefully, and reports gladly to good WSS customers if he finds something of interest.text and photo: håvard solerød

Desert everywhere, the occasional camel and a couple of huge trucks struggling ahead under their heavy loads. Not really a typical environment for Wilhelmsen Ships Service.

camels anD trUcks: heavy truck services offered by Wss are quite a contrast to the more traditional modes of transport.

Specialist group for dry-dockingsSingapore: a group of dry-docking specialists is being established within Wilhelmsen ship management. each member is experienced in this field and has a solid understanding of shipyard procedures, project management and the need for close cooperation with the vessel management office. all have experience at sea or relevant shore based experience. the group is lead by mr. raphael tan, who is based in singapore.

yoUng anD amBitioUs: Jaba tarimanashvili (25) is one of the many people helping to shape a future for Wilhelmsen ships service in georgia.

georgia: Jaba Tarimanashvili in Wilhelmsen Ships Service’s ships agency department is a tall man who moves like a skipper in high

seas. He reveals in-depth knowledge when speaking of the business; business streams, customer needs, consistent planning, in-novation and being proactive. After three years with WSS he has picked up the lingo and is often taken for having a long seafaring experience.

“That is a great advantage for me. I don’t re-veal my landlubber background unless I have to,” says Mr. Tarimanashvili, with a smile, looking much more mature than his 25 years.

“I was born into shipping,” he adds.

He started in WSS in marketing and sales before becoming a ships agent. In his new position as Black Sea ships agency develop-ment manager he has a foot in both camps.

“My ‘secret’ is to be online 24/7 and atten-tive to any customer’s needs. I’m their local ears and eyes, and contact them if I see any commodities in port which might be of in-terest to them,” says Mr. Tarimanashvili.

He travels a lot, attending courses in Oslo and in Dubai, and to customer meetings in the countries around the Black Sea.

“This is another benefit of working in ship-ping; meeting people from different cultures and nationalities. They’re all coming to our port,” says Mr. Tarimanashvili.

team leaDer: mr. raphael tan, Wss singapore.

shiPs servicein the miDDle of the Desert

phot

o: W

ms


people&placeSSenD US YoUr gooD StorieS

have you got any stories or photos that you want to share with your WW colleagues either through WW World or the Wilhelmsen intranet? please send an email to [email protected]

norWaY: is WW a truly global organisation with people from many nationalities, cultures and backgrounds cooperating and working efficiently together? or is each WW entity or office more like isolated islands, little aware of the existence of colleagues elsewhere in the world?

"hopefully, my phD thesis ‘an international business network: Working as one across borders?’ will provide some answers to how WW employees are succeeding in creating cross-company cooperation and company feeling," says social anthropologist marte giskeødegaard.

"most multi-national companies establish more or less inde-pendent units in each country, whereas there is a large degree of inter-dependence between the WW offices. experiences

from one WW company will frequently reflect how customers perceive a sister company in another country," says marte.

her phD thesis builds on her experiences from her master thesis from 2005, where she used Unitor as a case example. since then, Unitor has been merged with Wilhelmsen maritime services.

after five months at WW's corporate headquarters, marte left for argentina and Wilhelmsen ships service in early september, to learn more about what employees at a local office think about company teamwork. after Buenos aires, she will spend yet another three months with our colleagues at Wss' regional headquarter in houston, texas. her thesis should be finished by the end of 2010.

from nuclear scientist to shipping agentZurab Geleva was a nuclear scientist in the former soviet union. in the new Georgia he is a shipping agent in wilhelmsen ships service.

‘our man’ atthe olympics

"A memory for life," says Wilhelmsen Callenberg CAD designer Thomas Jørgensen about his experiences at the Beijing Olympics.

MalaYSia: this is a once-a-year opportunity for top executives to forget about the "rat race" they run in their daily working life, and take part in a different sort of race.

"schedule permitting, i would not miss this annual event for anything!" says Wilhelmsen ships service malaysia's managing director Winston loo, who firmly believes that a responsible company must give back to the needy in the society in which it operates. this year Wss participated for the fourth consecu-tive year by sponsoring two teams of employees. all donations collected are distributed between 20 charitable organisations.

the race covers 4.5 km through the downtown business district of kuala lumpur. preceding the main race is a one km long race for the ceos of the participating companies.

"sure, i have to walk the talk," mr. loo says when asked if he was doing his part.

hong kong: no cargo is too large or heavy to handle for Wilhelmsen ships service. for a number of years, our hong kong colleagues have expertly handled the complete project logistics of customer geoDis shipping's christmas fun fair, which is raised every year in the centre of hong kong island at christmas time.

other large contracts from the last few months include the factory to dealer logistics of a 90-tonne crawler crane from the factory in fanling, china to singapore for customer liebherr cranes. liebherr has become a prominent Wss customer and has shipped a total of 22 units weighing up to 160 tonnes since 2006.

“We have also shipped 25 barges and two tugs from china to new caledonia,” say mr. raymond lo and mr. carven lam, responsible for handling project cargo logistics at Wss hong kong.

other examples of difficult cargoes that would not fit into a “box” out of hong kong include regular shipments of caterpillar diesel engines for freight forwarder a. hartrodt and rubbles-tyred gantry cranes for hongkong international terminal (hit).

The fast growing project transportation market in Asia has thrown up several oppor-tunities for WSS Hong Kong to develop a niche market in High and Heavy cargoes.

from fun fairs to cranes and tugs

another age: shipping agent zurab geleva in Batumi was a nuclear scientist in geaorgia when the state was part of the soviet Union.

georgia: During the cold War, zurab geleva worked on developing weapons to neutralise satellites from the West in space. he lived in the town of Batumi, which he was prohibited from leaving, as his experience was far too valuable to risk defection.

“When the soviet Union fell apart in 1991, i lost my job immediately. the equipment was dismantled and sent on to moscow,” says mr. geleva. for the next couple of years he made a living as a radio operator. in 1993 he joined Wss and is today one of the veterans on the staff in Batumi.

“i’m doing very well today. as a company we are growing and challenged every day. having been around from the start makes it extra interesting to follow developments, he says.

teXaS: the hurricanes have been queuing up to attack the Us south east coast this season, leaving severe damage in their wakes. thankfully, all WW employees are safe and accounted for. however, there has been a lot of damage to property, although the Wss offices in houston survived the turmoil in excellent condition. our photo of the tugboats on the lower mississippi river was taken by a Wss colleague and shows some of the drama experienced during the ravages of hurricane gustav.

a different kind of rat racesure, business can be a rat race - but so is running for charity purposes, as our Kuala lumpur colleagues well know.

is ww an empire or many small kingdoms?

local anD gloBal: social anthropologist marte giskeødegaard in her home town Ålesund, norway, shortly before taking off for argentina and later texas to study cross-company cooperation within the WW group.

team one: Wss representatives of the "open" category, from the left: kenneth Wong, kor soon ming, roy azri, ryan soo and yow chee ming.

team tWo: the mixed team consisted of (from the left) abu Bakar hussein, roslina rosli, Wong lee ling, mohamad faris and fong fei mee.

china/DenMark: mr. Jørgensen, based in fredericia, Denmark, was appointed by isaf (international sailing federation) for the 2008 olympic sailing competition in Qingdao to serve as a deputy race officer in both the 470 and star sailing boat classes. previously an active competitor himself (although not at the ‘olympic’ level) he is a much used race officer both in Denmark and elsewhere.

"it was fantastic to be a part of this great event, and it is a huge honour to be appointed for the olympics, like it is for an athlete. naturally, much of my time was spent at the ‘sailing arena’, but i also had ample opportunity to see other aspects of these most impressive games," says mr. Jørgensen.

not too large: Wilhelmsen ships service in hong kong have become experts in handling complex logistics, including this 90 tonnes crawler crane which was shipped from china to singapore.

cargo shoVels: every type of cargo which does not easily fit into a "box" can be expertly handled by Wilhelmsen ships service in hong kong.

race officer: thomas Jørgensen in his olympic officer's uniform, photographed in front of the breakwater of the olympic venue in Qingdao.

Safely through the storms

text and photo: einar chr. erlingsen

Phot

o: h

åvar

d sol

erød

WWWORLD.3.2008 1716 WWWORLD.3.2008

special report: eMerging MarketS

facts about the global auto sales and production market where the WW group is a key logistic provider, both in blue ocean transport, technical services, terminals and inland distribution.

in 1990 mature markets accounted for around 90% ➜

of global auto sales and productionBy 2010 this will drop to around 50%. ➜

By 2011 it is expected that russia will be the largest ➜

auto sales market in europe, bypassing germany.a large part of the manufacturing has shifted from ➜

mature to emerging markets.asia to europe volumes are expected to remain ➜

high, driven by continued strong growth in eastern europe, primarily russia.middle east imports are expected to remain strong ➜

for next years, driven by major infrastructure investments.

(source: WW estimates)

World trade is changing. While the mature economies in USA and Europe are under-going a recent recession, new locomotives like China, Russia, India and Brazil are still enjoying strong, positive growth. What does this mean to the WW Group and its wholly-owned and joint-venture companies? WW World has spoken to all our CEOs about how they are preparing for new challenges and opportunities, and which emerging markets they are seeking to position themselves in. Here are their stories.

emerGinG marKets

neW MarketS

WWWORLD.3.2008 19WWWORLD.2.200818

norWaY: “In our global strategy plan the future is BRIC – Brazil, Russia, India and China is where the main growth of our markets will be in

the future. We are already present, but intend to continue extending our footprint in these emerging countries”, says Dag Schjerven.

Since WMS was founded in 2005, annual revenue has increased almost tenfold, and is now close to USD one billion. Mr. Schjerven and his top management team have trans-formed WMS into four strong business areas that are all showing a profit: Wilhelmsen Ships Service (WSS), Wilhelmsen Ship Management (WSM), Wilhelmsen Ships Equipment (WSE) and Wilhelmsen Marine Engineering (WME). He believes the segments are well positioned regarding emerging markets.

“For Ships Equipment and Marine Engineer-ing, operating in the newbuilding and retrofit markets, the emerging markets are in Asia. Al-ready 95% of the merchant vessels over 1 000 dwt are being built here. For WSS, presence in local markets is essential, and the company is already established in over 70 countries. WSM is more independent of local presence, but already has a strong foothold in many recruitment markets such as India and the Philippines”.

Strategic ManageMent. The president of WMS also recognises the demand for global management capabilities when entering new markets. “We see the need for strategic man-agement resources in other parts of the world, in order to build relationships in new markets

and transfer competence to local manage-ment. This is something we will emphasise in the future,” says Mr. Schjerven. He also adds employing global codes of conduct, values and strong corporate governance, as implemented in WMS, as an important framework for en-tering markets with different business cultures. When needed, joint ventures with local com-panies are also part of the strategy.

neW traDing patternS. Another trend is the changes in old global trading patterns, and new regions becoming more vital. The Black Sea region is a good example, with Russia and the neighbouring countries experiencing strong growth. Countries like Australia and Brazil are other examples of areas with increased signifi-cance, being large exporters of raw materials to e.g. China and other Asian countries.

“Where the merchant fleet goes, we will follow. We have a good track record for being early adapters and establishing a presence where new markets are on the rise,”says president Dag Schjerven.

but what about global recession?“We do believe there will be a decline in the newbuilding market in the next few years, but within all our segments there will still be posi-tive revenue growth, and we think most of the global economy will recover already in 2010. We are positioned for growth and expect that environmental products and services in par-ticular will become increasingly important,” states Dag Schjerven.


WilhelMSen MaritiMe ServiceSWms is a global maritime service provider with approximately 5500 employees and expected revenue of approximately UsD 1 billion in 2008. Wilhelmsen maritime services operates through four business areas: Wilhelmsen ships service, Wilhelmsen ship management, Wilhelmsen ship equipment and Wilhelmsen marine engineering. Wms was founded in 2005 and has grown both organically and through the acquisition of Unitor in 2005 and the callenberg group in 2008. Wms is present in more than 70 countries with over 350 offices. the company serves the merchant fleet as well as shipyards and retrofit markets.

For president and CEO Dag Schjerven of Wilhelmsen Maritime Services (WMS), emerging markets is on his top-five list of priorities. text: arild s Johannessen Photo: scanpix

”bric”

neW markets: president and ceo Dag schjerven in Wilhelmsen maritime serv-ices wants to extend Wms’ footprint in the emerging markets and strengthen global management capabilities.

solid“We have a gooD track recorD For being earlY aDapterS anD eStabliShing a preSence Where neW MarketS are on the riSe"

Dag SchJerven


norWaY: “The market has definitively changed in recent months. But for us this actually means that we have a better balance between capacity

and demand. After last year’s extreme under-capacity on the ocean side, we are returning to a favourable situation where we are running our fleet in a more optimal way, while at the same time looking for new opportunities. We will actively be entering into emerging markets and launching new trades quite soon,” says president and CEO Arild B Iversen of WWL.

Mr. Iversen and COOs for Terminals and Inland Services and Ocean Transport respec-tively, Erik Graumann and Kai Kraass, met WW World to discuss the challenges presented by emerging markets. Mr. Kraass sums up.

“Outbound auto logistics has changed dra-matically in terms of shipping patterns. In the 1990s 85% was export from Japan to Europe

and North America. Today less than 50% of the cars manufactured in Japan are shipped to the traditional markets. Instead we have a far more fragmented network including stronger exports from USA and new markets such as South America and South Africa. By 2011 we expect Russia to be the largest automobile market in Europe, selling more than four mil-lion cars annually.”

Erik Graumann adds: “There is definitely more diversification in the global trade, and we can clearly see that it’s the emerging mar-kets that will be driving the future growth for WWL. We have already invested in two new terminals in China and two in Korea and we are now looking for opportunities in India.”

cooperation. WWL operates a fleet of more than 60 vessels, seven port terminals and 27 in-land terminals. The company cooperates with

emerGinG marKets will drive future Growth”The senior management of Wallenius Wilhelmsen Logistics (WWL) sees the global recession as an opportunity to enter new and emerging markets. Russia, India and South America are top of the list. text: arild s Johannessen Photo: stacey cameron


WalleniUS WilhelMSen logiSticS

OW/WWs joint-venture companies EUKOR and American Roll-on Roll-off Carrier (ARC), and together they constitute the leading global operator within the outbound automobile logistics and ro-ro segments.

“We have excellent cooperation with EUKOR and ARC, which strengthens our global network and improves our customer service. We also cooperate with EUKOR on the terminal side in Korea. In emerging markets the two companies are often too small to invest in large land-based operations on their own, but with a partner in the group this is an acceptable risk,” says Arild B Iversen.

having the right concept. Iversen, Kraass and Graumann agree that WWL’s factory-to-dealer concept is a great advantage in new markets. Car manufacturers today want to focus on core business – and are happy to have

someone else take care of the logistics side.“All our competitors can do the ocean side,

but there is only one competitor that can chal-lenge us in offering integrated logistic solutions around the globe. That sets WWL apart from the rest,” says Mr. Iversen.

proSperoUS rUSSia. WWL, in cooperation with the Wallenius-owned feeder company UECC, already transports cars and other cargo into Russia via the Finnish port of Kotka. In the long term, however, Mr. Kraass sees the need for an independent operation on Russian soil.

“Russia today has no ro-ro port in the Baltic Sea area. This is a challenge. We are therefore looking more closely into entering Russia through the Black Sea. I am sure that we will have direct port calls into Russia, either from the Baltic Sea to the vicinity of St. Petersburg or through the Black Sea. We will establish termi-

nals that operate round-the-clock 12 months a year. This means that we need PCTCs (Pure Car and Truck Carriers) with ice-breaking capabilities in our fleet. I presume a lot will happen in this challenging market by 2012.”

"We Will be entering activelY into eMerging MarketS anD laUnching neW traDeS QUite Soon”

arilD b. iverSen, preSiDent anD ceo


erik graumann, coo and head of terminals and inland services (to the left) and kai kraass, coo and head of ocean services.

”


Wallenius Wilhelmsen logistics (WWl) is a leading independent provider of global factory-to-dealer transport solutions for the automotive, agricultural and construction equipment industries. the company also specialises in handling complex project cargoes such as rail cars, power generators, mining equip-ment and yachts. WWl's sophisticated supply chain management services ensure an efficient integration of ocean transportation, inland distribution, terminal handling and a large comprehensive range of special-ised technical services. each year WWl carries nearly 3.5 million car equivalent units of cargo to most global destinations on their modern fleet of pctc and ro-ro vessels. WWl has approximately 3 000 employees and 63 vessels in 15 different trades. WWl is owned jointly by Wilh. Wilhelmsen asa and Wallenius lines, stockholm, sweden.

t


eUkor car carrierS


aMerican Shipping

& logiSticS groUp:

american shipping & logistics (asl) group, headquar-tered in new Jersey, Usa, includes deep sea U.s.-flag ocean carrier american roll-on roll-off carrier (arc) and government vehicle logistics provider american auto logistics (aal). asl specialises in U.s.-flag preference cargoes, including aid programme cargoes, and end-to-end auto logistics for military service members’ privately-owned vehicles. arc operates eight vessels in two trades. the asl group is owned 50/50 by Wilh. Wilhelmsen asa and Wallenius lines aB.

USa: “What is different for ASL Group, as opposed to other group compa-nies such as WWL and WMS, is that our activities are driven at least as

much by political events as by purely economic events. For example, we service markets in which the U.S. government actively provides infrastructure and project cargo investment via such agencies as the U.S. Export-Import Bank and USAID, transportation projects such as rail and bus cargoes via the Federal Transit Administration, as well as carrying cargoes for the Department of Defense and Department of State,” says Ray Ebeling, Chairman and CEO of ASL Group, to WW World.

SigniFicant groWth. American Roll-On Roll-Off Carrier (ARC) has experienced signifi-cant growth in recent years. The U.S. East Coast/Gulf Coast - Middle East service started off in 2005 with just one ship, but has since grown in to a 4-ship service featuring 780 000 square feet of cargo space and offering a 17-day frequency,

thereby enabling the company to more effec-tively service the needs of its customers.

“Although this market continues to be strong for us, we are beginning to see some not-unex-pected changes. To date, the eastbound leg has been the headhaul, and while it is expected that Iraqi reconstruction cargoes and the NATO mis-sion in Afghanistan will keep eastbound cargoes strong, the market is now shifting to an equally strong westbound market as U.S. forces start to draw down after the largely successful “surge” that began in early 2007. Moving forward, we are also exploring opportunity cargoes in adjacent markets, including India, the Mediterranean lit-toral, and the Black Sea”, adds Ebeling.

groUp SYnergieS. Asked whether ASL sees any group synergies, Ebeling points out that there are already several areas of cooperation within the group, perhaps most noticeably in terms of space charter, but in many other areas as well, such as terminals and agency.

According to Ebeling, “with specific regard

As with any business, studying and investing in new and emerging markets is essen-tial for American Shipping & Logistics (ASL) Group, which includes deep sea U.S.-flag ocean carrier American Roll-on Roll-off Carrier (ARC) and government vehicle logistics provider American Auto Logistics (AAL). text: arild s Johannesen

korea: “Our service pattern reflects the operations of our biggest cus-tomer, Hyundai/Kia. Wherever they go, we go. And a lot of coun-

tries referred to as emerging markets, are al-ready large markets in terms of volume and importance,” says Jan Eyvin Wang, president and CEO in EUKOR Car Carriers (EUKOR). The Korean-based company operates 91 ves-sels in 21 different trades around the world. Owned by Wilh. Wilhelmsen (40%), Wal-lenius Lines (40%) and Hyundai/Kia (20%), the joint venture was established in 2002. Hyundai/Kia is their biggest customer, but EUKOR also ships hundreds of thousands of new and used vehicles from other automo-bile manufacturers.

1/3 to eMerging MarketS. Mr. Wang is, as is Dag Schjerven of Wilhelmsen Maritime Services, quick to point out that the global trading patterns have changed. While ma-ture markets like Europe and USA are in a moderate recession, new countries are expe-riencing tremendous growth and increased purchasing power among consumers.

“Over 30% of our current operations are to, from or between emerging markets. China is the forerunner, as well as Russia. But in addi-tion to these two, India is a growing produc-tion site for automobiles, and West and East Africa as well as South America are becoming

substantial regions for Hyundai and Kia, as well as our other customers. . And that means more deep-ocean transportation to and from these areas for EUKOR,” says Jan Eyvin Wang.

FocUSing on core bUSineSS. EUKOR’s core business is ocean transport of auto-mobiles and other vehicles. That means outsourcing other services.

“We do not invest much in infrastructure. Our business model is to have partnerships with local and regional operators to fulfil our customers’ needs, and this means having close cooperation with Wallenius Wilhelm-sen Logistics, Wilhelmsen Maritime Serv-ices, and Wallenius. We have some strategic regional offices on each continent that keep track of service-level agreements, cargo and operational efficiency. That is particularly important in emerging markets,” says Jan Eyvin Wang.

and what impact does the global economic recession have on euKor?

“We expect automobile sales in USA and Europe to remain weak for a period of time. This coupled with growth in the emerging markets means that we are redeploying some of our assets. We are also seeing that the changing market conditions are creating more opportunities for WWL and EUKOR to create synergies,” says Jan Eyvin Wang.

EUKOR will transport more than 3.7 million car equivalent units in 2008. And an ever-growing trend is shipments out of or into emerging markets in Asia, Africa and South-America.text: arild s Johannessen

eUkor car carriers is one of the world’s largest shipping companies specialised in transporting automobiles and other rolling cargo. the company offers tailor-made ocean transportation to the global automotive industry. eUkor’s core business is the export of hyundai motor and kia motor vehicles from their plants in korea and around the world, but the company also serves most of the other global automotive leaders. eUkor directly operates more than 90 specialised vessels in 21 different global trades - annually transporting 3.7 million car equivalent units to 220 different ports in 150 countries, utilising a global network of offices and agents. eUkor is owned jointly by Wilh. Wilhelmsen asa (40 %), Wallenius lines aB (40 %) and hyundai/kia (20 %).

to emerging markets, some potential areas for cooperation are agency services provided by WMS and utilising the global and regional networks provided by the affiliated companies, such as UECC’s Black Sea service. It is pos-sible that we may start a Pacific service in the coming years, and were that to come about, we would also seek to cooperate closely with EUKOR and WWL on a space charter basis.”

Ingredients for continued success.

“what is needed to secure the future success?”“First and foremost, we must continue to excel at customer service. Unfortunately, some companies involved in government contract-ing have come to view the business as an entitlement rather than as a privilege and an opportunity. It is imperative to overcome this temptation and empower our employees such in order to maintain consistently high levels of performance with integrity.”

Ebeling also notes that: “We need the ongo-ing support of our investors, Wilhelmsen and Wallenius, in order to continue to grow and succeed. Along the same lines, we also need to seek to leverage and grow the tremendous global network that we have. If we do these things, ASL Group will remain a financially strong, reliable and innovative shipping and logistics company capable of competing in our niche markets, emerging or otherwise.”

EmErging markEts arE alrEady big markEts

“We neeD the ongoing SUpport oF oUr inveStorS, WilhelMSen anD WalleniUS, in orDer to continUe to groW anD SUcceeD."

ready to

Expand

asl chairman anD ceo: ray ebeling – arc is considering expanding its mideast trade to include india, the mediterranean littoral, and the Black sea.

m/V freeDom: one of arcs pure car and truck carriers (pctc).

changing WorlD: president and ceo Jan eyvin Wang claims that eUkor is already heavily involved in emerging markets around the world.

”in the eveningS When We gathereD in thiS rooM aS a FaMilY, i oFten plaYeD a gaMe Wherein MY granDMother’S apartMent becaMe the captain’S Station oF a large Ship. thiS FantaSY oWeD MUch to the traFFic paSSing throUgh the boSphorUS; thoSe MoUrnFUl hornS MaDe their WaY into MY DreaMS aS i laY in beD. aS i SteereD MY iMaginarY Ship throUgh the StorM, MY creW anD paSSengerS in even More troUble bY the riSing WaveS, i took a captain’S priDe in knoWing that oUr Ship, oUr FaMilY, oUr Fate WaS in MY hanDS.”

QUote FroM the book ‘iStanbUl – MeMorieS oF a

citY’ bY nobel prize Winner orhan paMUk

a Gateway to Growththe black Sea:

The Bosphorus is one of the world's most strategic waterways. It divides East from West and is the gateway to the Black Sea countries; a region with strong economic growth, political tension and - sometimes - even wars.

25WWWORLD.3.2008WWWORLD.3.200824


ww around the black seaWilhelMSen ShipS Service:

area office: ➜ istanbulWss turkey: ➜ 20 employeesWss romania: ➜ 13 employeesWss Bulgaria: ➜ 25 employeesWss Georgia: ➜ 163 employees (including armenia, azerbaijan)Wss Ukraine: ➜ 25 employees

other WW coMpanieS:

B&p terminal poti: ➜ 400 employeesMsC Ukraine: ➜ 60 employeesWilhelmsen ship Management: ➜ 4 employeestotal no. of WW employees in Black sea area: ➜ 740

at the crossroaDs: an oil tanker passes under one of the bridges that connect east and West across the Bosphorus.

in the blacK sea reGion: hÅVarD solerøD (text anD photo)

27WWWORLD.2.2008WWWORLD.2.200826


black Sea

tUrkeY: Wilh. Wilhelmsen was the first Western company to establish a network of shipping agencies around the Black Sea after the break-up of the

Soviet Union in the early 1990s. Today, Wilhelmsen Maritime Services

(WMS) has 17 offices and 270 employees in the region; in Bulgaria, Ukraine, Romania, Geor-gia, the Black Sea Coast of Russia and Turkey. Wilhelmsen Ships Service (WSS) owns a con-tainer terminal in Georgia’s main port Poti, and also operates a joint venture bulk terminal with another 400 employees in the same port, while Wilhelmsen Ship Management operates recruiting offices in Odessa (Ukraine), Novo-rossiysk (Russia) and Constantza (Romania).

FavoUrable poSition. “We are very well po-sitioned to act on future opportunities,” says Jon Arve Nilsen, area director Black Sea and Caspian, one of the fastest growing areas of all within WMS.

Nilsen is well aware of the fact that not all opportunities are golden. The many political issues that riddle the region are huge com-plicating factors. The war between Georgia and Russia in August was a scary reminder of cold war days, and of the fact that Russian and Western interests still might clash in the region. And while economic growth is very strong, the local economies are still at an early stage of development. It will take time before new wealth and infrastructural development are more evenly distributed.

Even so, business is good for WSS. “We have a very competent and dedicated staff. This is our foremost advantage,” says Mr. Nilsen.

“We are verY Well poSitioneD to act on FUtUre opportUnitieS” Jon arve nilSen, area Director

black Sea anD caSpian

"iF i coUlD travel back in tiMe i WoUlD viSit the ottoMan perioD anD eXperience the originS oF the traDitionS anD priDe that are Still preSent here toDaY.”Jon arve nilSen, area Director black Sea anD caSpian

black Sea FactSthe Black sea is an 436,400 km2 inland sea with a maximum depth of 2 200 m, situated ➜

between Bulgaria, romania, russia, georgia, turkey and Ukraine. the Black sea is connected to the mediterranean by the straits of Bosporus, turkey. ➜

the Black sea was a busy waterway on the crossroads of the ancient world: the Balkans to the ➜

west, the eurasian steppes to the north, caucasus and central asia to the east, asia minor and mesopotamia to the south, and greece to the south-west. the Black sea ports serve a hinterland of some 200 million people. With continuous improvement ➜

and stabilization of the economy, the growth possibilities are good in all markets (gDp growth 2007 = 6.6%, gDp/cap = Us$10 000). there is however a need for additional capacity in all sorts of cargo infrastructure, and inflation is running at a double digit rate in several countries

arMenia

population: ➜ 3 millionexports: ➜ ores, wood products, scrap metal, agro productsimports: ➜ fuel products, grain, vehicles, chemi-cals, ores, machinery and parts, pharmaceu-ticals. Gdp growth: ➜ 14.1

azerbaiJan

population: ➜ 8.1 millionexports: ➜ oil, other raw materialsimports: ➜ grain, ve-hicles, chemicals, ores, machinery and parts, pharma-ceuticalsGdp growth: ➜ 31%

georgia

population: ➜ 4.65 millionexports: ➜ scrap metal, machinery, chemicals, fuel reexports; citrus fruits, tea, wine imports: ➜ fuels, machinery and parts, transport equipment, grain and other foods, pharmaceuticals Gdp growth: ➜ 12%

rUSSia

population: ➜ 141.5 millionexports: ➜ petroleum and petroleum products, natural gas, wood and wood products, metals, chemicals, and a wide variety of civilian and military manufactures imports: ➜ machinery and equip-ment, consumer goods, medi-cines, meat, sugar, semifinished metal products Gdp growth: ➜ 8.1%

tUrkeY

population: ➜ 71 millionexports: ➜ cars, home appliances, electronics, textiles, food, iron/steel, machinesimports: ➜ oil, consumer goods, machinery, carsGdp growth: ➜ 5.4%

Ukraina

population: ➜ 46.3 million exports: ➜ ferrous and nonferrous metals, fuel and petroleum products, chemicals, machinery and transport equip-ment, food products imports: ➜ energy, ma-chinery and equipment, chemicals Gdp growth: ➜ 6.9%

roMania

population: ➜ 22.3 million exports: ➜ textiles and footwear, metals and metal products, machinery, minerals and fuels, chemicals, agricultural products imports: ➜ machinery and equip-ment, fuels and minerals, chemi-cals, textile and products, basic metals, agricultural products Gdp growth: ➜ 5.9%

bUlgaria

population: ➜ 7.3 millionexports: ➜ clothing, footwear, iron and steel, machinery and equipment, fuels imports: ➜ machinery and equipment; metals and ores; chemicals and plastics; fuels, minerals, and raw materials Gdp growth: ➜ 6.1%

Each ship represents an opportunity to WSS, as Istanbul is a regional hub, including both the Black and Caspian seas. Ships often order supplies and service to be delivered when pass-ing Istanbul.

“We are frequently asked to do the ‘impossible’ – but if we succeed, the ship's master will remem-ber us and call again, thus starting a personal re-lationship. The reward is a loyal customer,” says port service coordinator Erdal Ates.

WMS does approximately 2 300 product deliveries per year in the Black Sea region, 75%

out of Istanbul. While the agency services from WSS represent the dominating part of business in the other offices, ships’ equipment represents the bulk of the business out of Istanbul. The most pressing challenge for all the WMS offices in the region is to streamline and create synergies from all its four business areas; ships service, ship management, ships equipment and marine engineering. This work is yet at an early stage.

a neW beginning. WSS in Turkey was originally

the BlUe mosQUe in istanBUl: is also know as the sultan ahmed mosque, was built between 1609 and 1616, while the ottoman empire was under the rule of ahmed i.

a laSting iMpreSSion. Jon Arve Nilsen grew up in a maritime environment, travelling with his father to visit ships in port. The many cul-tures and people he met made a lasting impres-sion on the young boy, who decided to follow in his father's footsteps. Previously based in Dubai, Paris, Oslo and Bergen he is now en-thusiastic about working out of Istanbul.

“The city's history and atmosphere is unique. The hospitality of the Turkish people is over-whelming. If I could travel back in time I would visit the Ottoman period and experience the

origins of the traditions and pride that are still present here today,” he says as we drive along the Bosphorus. He keeps one eye on the traffic and the other on the ships on their way in our out of the Black Sea. There are always existing or potential customers in the busy straits.

cUStoMerS lineD Up. Every year 50 000 ships pass through the Bosphorus, so a congestion of vessels at both entrances is quite normal. The region's tremendous growth is challenging infrastructure all over the Black Sea area.

established as a joint venture with a local partner back in 1990. The cooperation ended two years ago, after which WMS set up its own operation.

“We took two persons from our previous venture, so we had to start building up our organisation again more or less from scratch,” says Jon Arve Nilsen.

“A lot of emphasis has been put on finding the right people. Today our staff of 19 are a team of proactive, creative and opportunity focused people, who have taken the advantage of a new beginning,” says Mr. Nilsen.

WW locationS

coUntrY place coMpanY

turkey istanbul Wss turkeyturkey iskendrun Wss turkeyBulgaria Varna Wss BulgariaBulgaria Bourgas Wss Bulgariaromania constantza Wss romaniaromania constantza BarklavUkraine odessa Wss UkraineUkraine nikolaev Wss UkraineUkraine mariupol Wss UkraineUkraine kerch Wss Ukraine Ukraine theodosia Wss UkraineUkraine odessa Wsm UkraineUkraine odessa msc Ukrainerussia novorossiysk Wss novorossiyskgeorgia poti Wss georgiageorgia Batumi Wss georgiageorgia tbilisi Wss georgiageorgia poti B&p ltd.armenia yerevan Wss georgia

past anD present: “istanbul and the Black sea is the place to be. the history is fascinat-ing, and the future looks promising,” says area director Jon arve nilsen.

phot

o: s

canp

ix


until 2030 through a 25-year port concession. Rusty infrastructure in urgent need of up-

grading opens up for private initiative. “Any customer who wants to start business in

Georgia will be looking for practical solutions for their logistics needs. With our own contain-er terminal and berths, plus the broad range of WSS products and services, we are able to cater to almost every need,” says Mr. Hutson.

people, not potholeS. Some roads in Poti are full of potholes, especially in the port area. The recent war has not improved matters. There are few signs of new wealth, as compared to Batumi.

“Still, we're moving forward, although the war was a huge set-back. Predicting our future devel-

opment has become a lot more difficult these days,” says operation manager Nugzar Chanidze, who has been with WSS since the very beginning.

“But we're defi-nitely moving forward. There will be a huge demand for logistics solutions and new equip-ment to repair damages due to the war, and we're ready to meet the challenges,” says Mr. Chanidze.

“To see the future in Georgia you have to focus on the people. They represent our future, as a country and as a company. Potholes can be fixed, as long as there are people with the right attitude and hope.”

georgia: The 205 metre long container vessel from Mediterranean Shipping Company (MSC) is the largest ship ever to call at Georgia's Black Sea port

of Batumi. So huge is the ship that its exact deep draught had to be measured manually prior to arrival to make absolutely sure that she could call without problems. A handful of operations people from Wilhelmsen Ships Service (WSS) were present and ready to assist until she was well secured alongside the pier by 4 a.m.

the right attitUDe. “Our largest resource is the passion of our colleagues. This solid organi-zation has talented people with the right attitude,” says WSS general manager David J Hutson.

The Caucasus region with Georgia, Armenia and Azerbaijan is a mountainous area between

the Black and Caspian Seas. Georgia is a natural transit country for goods into the region. The port of Batumi is also the ending point both for the Transcaucasian railroad and the Baku oil pipeline, as well as a historical centre for trade. During the reign of the Roman emperor Hadrian (117-138 AD), Batumi was converted into a fortified Roman port.

“The development of oil and gas fields in the region will bring strong growth and increased wealth in general. We are ready to take part in this development,” says Mr. Hutson.

“The fact that we have been building our presence and organization here since 1992 is a big advantage. It was excellent foresight to set up this operation at that time. Local and global customers know that we can be their trusted partner in Georgia,” says Mr. Hutson.

neW anD olD. WSS Georgia was established when the country was crowded with check-points after its independence from the Soviet Union the year before. WSS started operations with a handful of people and a generator that frequently had to be switched on when local power supply failed. 16 years later, there are 163 WSS employees in Georgia. The main of-fice is in Poti, with branch offices in Batumi, Tbilisi and Yerevan (Armenia).

Newly purchased state-of-the-art cranes have improved efficiency tremendously in Batumi. Much of the cargo that arrives is in transit, to continue by rail to its final destinations.

great changeS. For this reporter, who vis-ited Batumi 12 years ago, the changes seem enormous. Children play in newly developed


georgia

georgia: regardless of russian troops in the streets, bombing, telecom-munication problems and closed roads our colleagues in poti and elsewhere in

georgia managed to keep the Wss office operative throughout the war.

"they did a tremendous job, and deserve great praise from us all," says area director Black sea and caspian Jon arve nilsen. he is very grateful that no WW employee came to bodily harm during the war, although one poti employee was uncomfortably close to the action when the russians bombed the poti harbour area. some colleagues have lost friends or relatives.

"it's not for us to draw the large picture of georgia and the region's political future after the war," says mr. nilsen. "things seem to have quietened down again and the russians have withdrawn from many of their positions inside georgia."

"Western aid is coming into the country in increas-ing amounts, and more is promised. the need for damage repairs is huge. this will in turn increase the demand for our services," he says.

WW World's visit to Georgia in early August coincided with the arrival of the largest vessel ever to Batumi. Only days later our local colleagues had to face quite a different type of challenge.

close call: one russian cluster bomb hit near the en-trance to the poti container terminal, only minutes after Wss operations supervisor george kokaya and driver gia chaganava had left.

poti employees: ia Bukhraidze (to the left) and Julieta ambria.

The short war with Russia this August was dramatic for our Georgian colleagues.

business

as usual

parks outside the port, while the grownups enjoy a number of new restaurants along the waterfront. The subtropical surroundings with green hillsides and even palm trees offer natu-ral intimacy and beauty. Fortunately, Batumi was little affected by the war. Other places in Georgia were less fortunate.

neXt Stop: poti. After a couple of hours driv-ing along the Black Sea's shores we arrive at Poti and WSS Georgia's main office. Vendors offer local delicacies along the twisting road, includ-ing sun-ripened tomatoes, fruit and wine.

Back in the main office general manager Hutson receives a phone call from a local steel mill. The new customer wants an immediate meeting. So

five minutes later Mr. Hutson is off to discuss a possible assignment of considerable volume.

“This is how things can happen. You have to be ready when opportunity knocks on your door,” says Mr. Hutson.

WSS Poti owns and operates a 52 000 sq me-ter 2000 TEU capacity container terminal. B&P Ltd is owned by WSS Georgia in a joint venture with a local partner and is the sole operator of bulk handling berths 8-10 in the Poti sea port

a hUge challenge for

"oUr largeSt reSoUrce iS the paSSion oF oUr colleagUeS. thiS SoliD organization haS talenteD people With the right attitUDe” WSS general Manager DaviD J hUtSon.

WSS georgia

established 1992 ➜

main office: poti ➜

Branch offices: Batumi, ➜

tbilisi, yerevan (armenia), Baku (azerbaijan)163 employees in all offices ➜

combined main business areas: owns and ➜

operates an off dock container and ro-ro terminal operates a dry bulk terminal ➜

(B&p ltd.) in a joint venture with a local partnerforwarding of bulk products, ➜

break bulk products, contain-ers, oversized and special projects cargocontainer liner agency (msc) ➜

tramp ships agency ➜

GeorGia

the largest ship: Wss general manager David J hutson (to the left) in conversation with samkin yuri, master of the largest container vessel ever to call at the georgian port of Batumi.

container terminal: Wss owns and operates its own container terminal in poti.

poti colleagUes: the recent war was a difficult period for the Wss col-leagues in poti, who nevertheless managed to keep up operations.



main office: odessa ➜

offers a complete range of ships ➜

agency and related services handles 28-31 port calls per month ➜

25 employees ➜

Branch offices in nikolayev, mariupol, ➜

kerch and theodosiathe only international ship agency chain ➜

presentsteep local competition with 130 ➜

registered ship agentsfull forwarding services ➜

offers a comprehensive range of Unitor ➜

technical products and services

master mariners/surveyors available ➜

terminal handling operations ➜

transportation and transit clearance ➜

oversized and heavy lift consignments ➜

tank/tramp agencies ➜

project management for complex shipments ➜

service provider to large freight ➜

forwarders including WWl, eUkor, Bertling, halliburton, Bp and stellarrepresent WWl, Uecc and stellar in ➜

all commercial and operatinal services in Ukrainegrowth potential in development of ➜

inland services, logistics and freight forwarding

the Ukraine: andrey chaban doesn’t really enjoy office work. he prefers being on board ship, trouble shooting and helping the crew solve problems. he does, however, have a favourite office tool: the computer programme showing all the ships sailing up the Bosporus bound for odessa.

“i feel like a hawk on the web. picking vessels that could benefit from our assistance is much easier than before. We can act on potential customers with more accuracy because we get complete information about the ship, contact info, schedule and cargo,” says mr. chaban.

technical probleMS = SaleS. andrey chaban realises that his time onboard ship is valuable. the crew have their special duties when in port, or they want to rest. a visit from Wss therefore has low priority, unless the ship is experiencing some technical difficulties. it is not every visit that he succeeds in selling new products and services.

“typically i will offer them a free test of the cooling and boiling water to get their attention. if technical problems are located it often results in sales,” says mr. chaban.

“at first the engineers will be reluctant to listen. as i continue to ask about their ship and explain Wss’ services and products, there is often a change of mood. that's when the ice between us starts to break. more crewmembers will join in and we will have a meaningful exchange of views and experiences. these are the moments i live for at work. if i also discover a technical problem at an early stage, it can save the customer large expenses,” says the port service engineer.

SMall toDaY - big toMorroW. ”it does not matter if an order is big or small. 100 dollars today could result in a half million dollar delivery tomorrow,” says mr. chaban, who sailed 3rd engineer for seven years on board greek ships.

his radius is not limited to odessa and the Ukraine. turkmenistan is a potential new location. huge oil- and gas finds in these countries are creating new business opportunities, such as sales of equipment for fire fighting, welding and oil pollution control.

“the agency activity part of Wss is dominant in odessa. We are only four people on the product side, and two of us have to be in the office to man the customer service centre. if we succeed in developing the market in Ukraine and the other countries, it means further expansion and growth for Wss in the Black sea.”

Ukraine: Odessa is an old trading place, and its history disappears far back into the ages. Today's more than one million inhabitants come

from many cultures and nations, trading with the other countries around the Black Sea and elsewhere as they have always done.

That is, there was no really free trade in the days of the former Soviet Union. However, the wheels of history turned once again, Ukraine became an independent nation, and among the very first Western newcomers to arrive on the scene to do shipping business was Wilhelmsen Maritime Services. WMS had an Odessa office up and running by 1996, in a joint venture with a local partner.

no international coMpetitorS. Today, there are 25 employees at the Odessa office where traditional agency tasks have evolved into other business areas as well. The office is also in charge of coordinating agency activities in the entire Ukraine and their close cooperation with col-leagues in Black Sea and Dubai has contributed to a steadily increasing customer portfolio.

WMS and Wilhelmsen Ships Service (WSS) are still the only international chain of ship agents with representation in Ukraine. Four branch of-fices have been set up in the ports of Nikolayev, Mariupol, Kerch and Theodosia.

alWaYS prepareD. “I find that customers

who leave us usually return, or call us when they are in trouble. In Ukraine it’s very im-portant to be well pre-pared and nobody can match our knowledge of local conditions. The quality of an agent’s preparations prior to a port call is quite de-cisive for an efficient operation. Otherwise the costs can escalate,” says operations man-ager Dimitri Galitski. He has played on the cobblestones in the port of Odessa since he was a boy. At the age of ten he started running up and down the 142 metres high Potemkin Stairs carrying documents for his mother who worked for a cruise liner company.

olD anD neW. On the streets of Odessa we see old and weary Ladas cruising side by side with brand new BMWs and Jaguars as well as many new medium sized cars. The economic growth in Ukraine is obvious and reflected in the sales of new cars, fashion and in new shopping malls. Upgrading of the airport and the infrastructure in the port is lagging behind, however. Changing

political policies provide little predictability.“The import of new cars is still modest, but

rising quickly. The Chinese Cherry is number three on the list after Hyundai and Toyota,” says Captain Dag Erik Os, WSS general man-ager for Ukraine.

Shortage of storage spaces and unsatisfac-tory ro-ro facilities make for bottlenecks in the port, creating both challenges and opportuni-ties for WSS.port to enD DeStination. “The customers want actors that can provide the necessary lo-gistics from the port and to the end user. That is our strength,” says the captain.

”Large projects need big operation areas and good cranes. You have to know the ports and their capabilities. Local knowledge is the key - and we’ve got it,” adds Vladimir Tcherny, partner and general manager for Barwil Ukraine Ltd.

In the office captain Os studies data gathered about the port: depth, width, cranes, conditions, and proximity to customers, ice conditions, the rail network. Goods can be transported by rail from Odessa to all CIS countries. Odessa competes well with St. Petersburg, which has problems with ice in the wintertime.

“Cargo flow around The Black Sea is chang-ing. Ukraine has a large potential as exporter of agricultural products. We are keeping a close eye on developments and keeping the organisation updated on potential business opportunities,” says captain Os.

odessa“The moment I enjoy the most is when I feel the ice between me and the engineers onboard the ship I visit breaking,” says WSS port service engineer Andrey Chaban in Odessa.

Well placeD: Wss representatives logistic manager alexey shevchuk (to the left), captain Dag erik os and operation manager Dimitri galitski and their company are well placed to take part in the development Ukraine is undergoing at present.

A mix of private and state initiatives has slowly started to reshape what was the big-gest port in former Soviet Union. Ukraine has an annual growth of 6,9% and things could start to move fast. WMS is in the midst of developments.

how to be an icebreaKer

“i FinD that cUStoMerS Who leave US USUallY retUrn, or call US When theY are in troUble.” operationS Manager DiMitri galitSki

cUstomer serVice: natalya shevschenko works with sales support at Wss odessa's cus-tomer service centre.

Which to choose? odessa Wms port service engineer andrey chaban has hundreds of ships to choose from when searching for new customers.


Ukraine

a stronghold in

WilhelMSen Ship ManageMent

established in 2006 ➜

office: odessa ➜

4 employees representing 196 mariners ➜

WSS Ukraine


main office: odessa ➜

WSS oDeSSa

WWWORLD.3.200832 33WWWORLD.3.2008 33

norWaY: In the coming years Wil-helm sen Ship Management (WSM) will be focusing its expertise on how to keep the best people in the

company – while simultaneously recruiting new employees. As the world is experienc-ing an unprecedented shortage of competent labour, especially in shipping, WSM sees the challenges of the times ahead. .

“We’re looking for a stable crew base that we get to know well, people that we know are competent,” says Gaute Teigen, manager, fleet and marine operation, shipping & logistics at WW ASA. He notes that analysts predict a glo-bal shortage of 90 000 skilled seafarers in the industry as a whole in the next few years.

“It’s dramatic, and it’s a challenge we have to work with and to meet,” says Mr. Teigen.

The Wilhelmsen name brings a great advan-tage to people working to meet the challenge. When recruiting in countries such as India

and the Philippines, it’s clear that people real-ise what Wilhelmsen stands for.

preFer Working For WW. “We see that peo-ple really prefer working for Wilhelmsen,” says Marianne Fosaas, key account for WW ships at WSM. “They like having an employer that offers security, stability, and reliability – a company that is well-known and respected in all ports, and with a fleet of excellent vessels. People are proud to work onboard our ships,” she says.

Håvard Hareide, vice president shipping/marine operations, agrees. “We’ve always experienced that people are loyal to Wilhelmsen, because they see that they’re treated fairly, with a lot of effort put into creating a good environment onboard.”

But a new situation in the market means that WW must intensify its efforts at being the best employer at sea. Good contracts, includ-ing everything from insurance to perks and a good pension are part of the picture. Even

WWcreWing

One of the biggest challenges for WW and for the entire shipping industry in the coming years will be the global manning shortage.

KeePinG"people are proUD to Work onboarD oUr ShipS"

Marianne FoSaaS, keY accoUnt For WW ShipS at WSM

thE right

scarce commoDity: the lack of skilled seafarers is becoming an increasing worry for the world's commercial fleet.

loyal seafarers: "people are proud to work on board our ships," says marianne fosaas, key account for WW ships at Wsm and Vice president shipping/marine operations håvard hareide.

PeoPle

text: kaia means Photos: kaia means and Dag spant


norWaY: The story began in the summer of 2006 with an industry-wide debate, including allegations of unsavoury practices by some ship managers that made it almost

impossible for ‘clean’ ship managers to earn an acceptable profit. The discussion was essentially related to transparency between the ship man-ager and the client. But there was also an even more fundamental issue, Schou explains. The debate was really about value. Should the ship owner perceive third party ship management services as a cost, or should these services be seen as adding value to his operations? Un-fortunately, it appeared that all too many ship owners leaned toward the former perception.

Believing that the future of third party ship management lies not in slashing the ship management fee but in delivering value to the owner, Wilhelmsen Ship Management made the decision to shake itself loose from the com-petition - to be different. They would develop an offer of specialist service packages for their clients. Owners could choose from these serv-ices like a menu, independently of whether or not Wilhelmsen was their ship manager. “This was the birth of our new strategy to differen-tiate ourselves from the other players in the industry,” explains Schou.

DriverS For change. The need for change in the ship management industry is driven by sev-eral factors. First is the need for more specialist competence due to advances in technology, e.g.

LNG carriers with gas engines, FPSOs, high speed vessels with sandwich technology and specialist offshore units is one such driver. A second driver is more legislation; in particular safety and environmental legislation. A third is the increasing focus on transparency. Ship owners listed on the US Stock Exchange are subject to new accounting rules requiring greater transparency than earlier, e.g. the strin-gent Sarbanes-Oxley Act of 2002, also known as the Public Company Accounting Reform and Investor Protection Act. Wilhelmsen Ship Management is one of the few ship managers who can comply with these regulations.

an open enDeD concept. Wilhelmsen Ship Ma nagement ’s new concept be-came known as OMEGA and will be launched in stages from 2009. Plans for the first service packages include solutions

for marine personnel, machinery optimisation, dry docking, contingency response, purchasing, accounting, pre-vetting and port state control, hull care, insurance, environmental excellence and safety management excellence. The dry-docking service will along with a number of the other services be launched during 2009.

OMEGA represents a new way forward and a fantastic opportunity for Wilhelmsen Ship Management to deliver added value to even more customers. “Implementing OMEGA while continuing to deliver first class technical ship management and crewing services is our first and only priority for the coming period,” says Carl Schou and concludes: “In our busi-ness, competence is everything and Wilhelm-sen Ship Management has both competent people and a solid reputation".

at Sea: “When most of my friends are still asleep, i start my day by assisting the chief officer on the bridge from 04.00-08.00,” says the 20-year old cadet from india.

his day continues with a variety of tasks onboard, including maintenance, painting, chipping and ballasting. he also does sounding of the ballast tanks and helps the chief officer with his paper work. if the bosun needs some assistance on deck work, he’ll give him a helping hand as well.

alSo a StUDent. in between work and off hours, mudit finds time to finish his bachelor in nautical science. “i dream about becoming a master mariner first class, and intend to work and study hard to reach my goal,” says the young talented cadet.

MonSoon Sea SickneSS. his best experience so far has been docking tai shan for maintenance in singapore. he smiles when thinking back on one of his more unpleasant experiences.

“sailing in the indian ocean during the monsoon season can be a very unpleasant experience for a stomach not yet adjusted to rough seas.”

mudit’s first trip at sea lets him see the whole world for nine months running. “although i miss my family being away for such a long time, i feel fortunate to be part of the Wilhelmsen family as Wilhelmsen is rated as one as the best ship manage-ment companies in india. and i also make good money,” concludes mudit with a smile.

WWcreWing

yoUng recrUit: cadet mudit mistra on board mV tai shan.

an early birdBeing a cadet gives you a chance to see the sun rise every day. At least cadet Mudit Mistra onboard Tai Shan gets this opportunity, as his day begins at 03.30 am.text and photo: Benedicte gude

inDia: srinath medepalli, general manager, Wsm india, has worked for WW companies for 25 years. “i’ve spent half of my life with Wilhelmsen,” says mr. medepalli, who is 50 years old. “it’s been a very good ride.”

he started at sea for Wilhelmsen in 1983 as an engineer, and after being promoted to chief engineer,

he came ashore in 1988. since then, he has worked in hong kong, kuala lumpur and now mumbai.

“Wilhelmsen is a great company,” he says. “it's the one company in the maritime industry that has all of the links to a make a perfect value chain – you have ship owning, logistics, ship services, ships

things such as internet access at sea and the quality of the food can be selling points.The challenge is that the demand for people, especially the top officers, has resulted in a situation where employers are overbidding each other. The exponential growth in the offshore industry has also affected the situation. The result is escalating costs.

In addition, the shortage can accelerate promo-tions, so officers in the coming years could have less experience and be promoted at a younger age than what has been the norm for the past decades.

opportUnitieS. It’s important in times such as these, to let potential employees understand the career opportunities they have at WW, where one single company has links to the entire mari-time value chain, making a land based career an option for many at some point in their careers.

One aspect that has always been the source of pride in WW, is our cadet programme and training programmes.

“We’ve always taken recruitment very seri-ously,” says Marianne Fosaas, pointing out that today we have 179 cadets in the system. “If all of the other shipping companies had taken recruitment as seriously as we do, we wouldn’t be in this situation,” says Fosaas. Each ship has up to four cadets onboard today.

WSM has been recruiting in many different countries for years – including India, the Phil-ippines, Poland and other Eastern European countries. This effort is continuing.

Already WSM has started training people to crew the new ships. “It’s an enormous logisti-cal operation,” says Fosaas.

creWing FactS

8 500seafarers are presently being employed through Wsm

310ships are on full management or crewed by Wsm

200+extra mariners will be needed to crew the six new ships which will be delivered to WW between 2008 and 2012

179cadets are at present working on board WW ships

9is the number of WW manning offices in as many coun-tries across the world, including important recruiting areas such as india and the philippines

90 000new seafarers will be needed to fill the gaps expected in the global fleet within the next few years

Srinath Medepalli can’t choose which of his jobs at Wilhelmsen he’s loved the best during the past 25 years. “It’s like having four Ferraris and being asked to choose the best one!” he laughs. text: kaia means

srinath medepalli, general manager of Wsm, india.

neW concept: carl schou, president (acting), Wilhelmsen ship management: offering added value and quality services is the key to the future.

daring to be different

equipment, marine engineering, ship management and other ancillary services such as insurance, et cetera. i always tell seafarers that when they join Wsm, they are actually joining the WW group, because no other maritime company in the world offers so many huge career opportunities,” he says.

long careerS. “this is a one-stop career company. you can start your career here, and retire here.”

in his view 25 years is not so long. “it’s not uncommon to meet people who have been with the company for 25, 30 and 40 years,” says medepalli.

he points out that the current challenge in manning is not limited to shipping. “it’s in every industry – in bank-ing, it and other services. there is a general shortage of competency in the world. it’s tough in shipping because

we’re a small and fragmented industry,” he says.

no Single SolUtion. "We must continue to train people, invest in people and treat people fairly, which is what Wilhelmsen has been doing. We have an ambitious cadet programme and a very good training programme.”

one trend that medepalli predicts is the closing of the gap between employment practices for seafarers and shore based employees, citing examples such as perks, permanent employment and performance related bonuses. “Wilhelmsen has a very good retention rate. We need to develop competent people who hold the key to the company's future,” he says.

his son, who is 16, is considering a career at sea. “there are so many opportunities today, with a high demand for seafarers. it’s a lucrative career, especially in asia. so he hasn’t ruled it out,” says mr. medepalli.

"in oUr bUSineSS, coMpetence iS everYthing anD WilhelMSen Ship ManageMent haS both coMpetent people anD a SoliD repUtation."carl SchoU, preSiDent WilhelMSen Ship ManageMent

“We want to lead the way in the ship management industry. Therefore we strive to be different!” Carl Schou, recently named Wilhelmsen Ship Management’s president (acting), sums up the road ahead for a ship management company entrusted with the operation of some 310 vessels. text: Don pyle Photo: kaia means

a one-stop career company

text: kaia means


Singapore: The introduction of un-wanted marine organisms is seen as a major threat against marine biological diversity. It is estimated that some 4

500 species are travelling in ballast water tanks at any given time.

Ships use ballast water to provide stability and manoeuvrability during a voyage. Water is taken on at one port when cargo is unloaded and usually discharged at another port when the ship receives cargo. Because organisms range in size from viruses to smaller fish and shellfish, there is a potential threat of intro-ducing non-native organisms into the port of discharge. Introduction of new organisms can change the eco system, either by wholly replac-ing species or bringing in new diseases. The ef-fect can also be hybrid creatures that alter the genetic composition of the original species.

It is difficult to foresee the effect of introduc-ing new species, and it has proved very difficult to remove such species from an environment.

Deep inveStigation. There is a slogan that goes: “Show – don’t tell”. As ballast water treatment has been singled out as one of the major marine challenges, WW World took the plunge down into the ballast tanks of the

Wilhelmsen-owned car carrier Tai Shan, while the vessel was docking in Singapore.

”Welcome onboard,” says captain Pracash M Crasto, giving me a helping hand getting onboard. While pulling on a boiler suit and a hard hat, he asks me whether I’ve been in a tank before.

“First time,” I say with a smile. As I don’t know what to expect, I don’t know what to worry about. But soon I start wondering. What is it like at the bottom of a huge vessel, below 13 cargo decks? Will there be enough oxygen

in tanks that can hold 8 200 tonnes of water?

“No worries, my friend,” says the master, who does not let anyone down before the tanks are properly aired and approved for entry. Inspections are conducted to unveil corrosive attacks, breaches in the steel con-struction and needs for additional maintenance.

We start climbing down the stairs to the tanks. And a second worry comes to my mind. There is absolutely no light. The master hands me a torch thus taking care of that second wor-ry, but immediately giving me a third one: the holes you crawl through between the sections in the tanks are called man holes, but – believe

peter Stockley, heading up WSE, says about the market for bal-last water systems: “The market potential is estimated to some

USD 20 billion over the next ten years, given the fact that new requirements for newbuildings and the current sailing fleet will come into force from 2010. A certified system will give us the impetus to continue our growth within environmentally-adapted systems, products and services offered under the ACT-umbrella (see page 51) and through the WMS network.”

introDUcing bWt. At the end of May 2008, WMS signed a license agreement with South African Resource Ballast Technology (RBT) to offer global sales, in-stallation, service and marketing of their ballast water treatment (BWT) system.

To minimise the transfer of harmful and unwanted aquatic organisms in ballast water, the system developed by RBT uses cavitational forces, sterilization by ozone, sodium hypochlorite and filtration. It has been tested with excellent results in RBT’s full scale testing facility in Cape Town, and RBT has obtained the IMO Basic Approval.

“This is a great addition to the environ-mentally friendly products that we already offer,” says Dag Schjerven, president and CEO of WMS. “The system is highly inventive, believed to be the best and simplest in its class and will enable WMS to offer its customers an easy-to-install and functional product.”

FirSt teSt. As part of the process to be granted full IMO certification, the ballast water treatment (BWT) system offered by Resource Ballast Technology and through the WMS network will undergo sea trial onboard the Wilhelmsen ship Toronto. The system was installed onboard the ves-sel on 14 July while she was in Yokohama, Japan for her first dry-docking.

”We are quite pleased with the first instal-lation,” says Iver Iversen, WSE business development director. “Accurate and detail project engineering prior to installation is very important, as retrofit is much more complicated than including a new system while the vessel is still on the drawing board.”

WSE has also landed an agreement with BW Gas to test the ballast water system on-board the liquefied gas carrier Berge Danuta.

Have you never heard of a PCJC? Let’s hope you never will. It is short for pure car and jellyfish carrier and raises an important environmental issue: What are the threats posed by organisms in ballast water and how can we overcome them? text and photos: Benedicte gude

offerinG the solutionWilhelmsen Maritime Services - through Wilhelmsen Ships Equip-ment – is aiming to be a world leader in ballast water treatment.

"introDUction oF neW or ganiSMS can change the eco SYSteM, either bY WhollY replacing SpecieS or bringing in neW DiSeaSeS."

WWenvironMent

invasive aquatic species are one of the four greatest threats to the world's oceans, and unwanted aquatic organ- ➜

isms are considered one of the major environmental challenges globally. the international marine society has still to agree upon a common regulatory framework.the international convention for the control and management of ships’ Ballast Water and sediments (the BWm ➜

convention) was adopted on 13 february 2004. the convention intends to prevent, minimise and ultimately elimi-nate the risks to the environment, human health, property and resources arising from the transfer of harmful aquatic organisms and pathogens through the control and management of ships’ ballast water and sediments.the convention has not yet entered into force, as it needs to be ratified by at least 30 states and/or 35% of the ➜

world fleet measured by gross tonnage. in april, the convention still lacked ratification from 17 countries. at present there are only three voluntary guidelines regarding handling of ballast water. these require vessels ➜

to change ballast water at least 200 nautical miles offshore and at a minimum of 200 m depth. if this proves impossible, nearer land and at less depth is also possible, if the port state has designated such areas.

me – you can’t be a very large man to carry out these inspections. You need to crawl and wrig-gle through holes that are hardly more than 60 cm in diameter.

And it seems like the tanks go on for ever. I must admit spending some 15 minutes down there was enough for me. Even though there was enough oxygen, the air was stale and very humid. No air conditioning for journalists used to working in a cool office.

And the conclusion is: Been there, done that. A learning experience. And, if you are a bit claustrophobic, stiff as a poker or very tall, let someone else take the tour!

pS! Tai Shan has installed zinc anodes that help prevent corrosion of the steel construc-tion. Although we found a few blisters, the tanks were in a satisfactory condition. No need for additional maintenance of these tanks, ac-cording to the master and the inspector. Not bad for a lady of 22 years!

going in Deep: WW World reporter, Benedicte gude, enters one of nine ballast tanks onboard tai shan.

the ballast water treatment installation onboard mV toronto.

gooD conDition: captain pracash m crasto and owner’s representative, gaute teigen, find the vessel in satisfac-tory condition.

lack oF regUlatorY FraMeWork

the jellyfish problem: ballast water treatment


U.S. WeSt coaSt: When a cruise ship carrying 3 500 people enters any Californian port, local authorities demand exact documentation of the

vessel’s impact on the environment. Nowhere else in the world are environmental issues un-der stricter scrutiny than here, from legislators and the general public alike.

This reality represents extra challenges for a producer and supplier of maritime chemicals. Anything flushed from the ships while in Californian waters will be strictly monitored, as will all emissions to air. So the more any Wilhelmsen Ships Service (WSS) customer knows about their products, the smoother the port call by any of their vessels. Confidence and trust are essential to customer relations.

cUStoMer Meeting. Accordingly, the meet-ing between representatives of WSS and Car-nival Cruises which took place in Santa Clarita, had trust building and product information as the most important points on the agenda.

“We invited them to a meeting to present and explain our material safety data sheets and to answer any questions our clients had,” says

Paal Berg, WSS Key Account Manager Region Americas. He and Leen de Visser, Wilhelmsen Ships Service HMS manager, based in Rot-terdam, The Netherlands, represented WMS while Carnival Cruises sent seven representa-tives from their environmental and operations department.

SaFetY in labelS. WSS has put a lot of effort into their product labels and material safety data sheets; so much, in fact, that it represents

a true competitive edge. The labels enhance user safety as well as protect the environment.

“We have tried to make our material safety data sheets as simple as possible, includ-ing using clear colours and symbols, in order to avoid any misunderstandings,” says Leen de Wisser in his presentation. The labels and data sheets themselves provide answers to questions like "what to do in the event of an accident?" Some chemicals must be stored far apart to prevent any unfortunate compounds.

This is also clearly documented.

bUilDing conFiDence. ”This presentation was very useful to us. We appreciate your time and effort,” said Andrew Lorenzana, Carnival Cruises' Environmental Operations Manager.

“The objective is to build confidence, to show the customer that we support them,” says WSS sales manager Paal Berg. “It's all about show-ing them that we're always willing to go that extra mile for them, anytime and all the time.”

WWcUStoMer care

the

How do you build trust be tween yourself as a supplier and your customer? At Wilhelmsen Ships Service in California they know that the answer is in their willingness to provide added customer value.text and photos: håvard solerød

Singapore: mukesh Bawa strongly believes in happiness. accordingly, he has decided to make at least five people smile every day. “happy customers equals a successful company,” says

the mumbai-born captain. 30 years of shipping experience, including almost six

years as an internal auditor have given Bawa a perfect background for his present position as Wilhtec's safety and quality administrator in singapore.

the right Man. “i make sure that the right inspector, with the right skills is at the customer’s required location at the right time and at the right cost,” says Bawa. his company employs six inspectors, based in norway, singapore, Brazil and india.

“an audit takes from two to five days. With close to 200 vessels in our portfolio our days are more than busy,” he adds.

Wilhtec also undertakes flag state inspections for panama, marshall islands, liberia as well as third party pre-purchase inspections and audits.

reD tape MakeS bUSineSS. Bawa sees a huge growth potential for Wilhtec in the ever-increasing numbers of laws and regulations that ship managers and ship owners have to comply with. at present, Wilhtec's biggest challenge lies in having enough skilled auditors.

making sure that operations are executed according to, among others, ism, iso 9001-2000, iso 14001-2004 and not least the international ship and port facility security (isps) is another one of the company’s features.

“our ability to offer audits anywhere in the world at a competitive price will make Wilhtec prosper as a company, as long as we don't forget also to make our customer happy. if he is, he’ll not only come back, but hopefully also pass on the word to others,” concludes Bawa, himself with a huge smile on his face.

KeeP the customer smilinGThe ever-increasing pile of national and inter national shipping regulations provides good business for WilhTec (Wilhelmsen Technical & Operational Solutions), but that's not the only reason behind captain Mukesh Bawa's broad smile.text and photo: Benedicte gude

“the obJective iS to bUilD conFiDence, to ShoW the cUStoMer that We SUpport theM,”

WSS SaleS Manager paal berg.

"anYthing FlUSheD FroM the ShipS While in caliFornian WaterS Will be StrictlY MonitoreD, aS Will all eMiSSionS to air."

mileExtra

extra call: paal Berg, Wilhelmsen ships service and leen de Visser, Wilhelmsen ships service (no. 2 and 3 from left) are warmly welcomed by carnival cruises representatives Debbie nylund (environmental operations officer), Johnny Diep (maritime compliance data base administrator) and andrew lorenzana, environmental operations manager).

safety in information: paal Berg (to the right) informing carnival cruises' representatives paul Debnam (to the left), Vice precident occupational safety & emergency respone and andrew lorenzana (environmental operations manager), of the safety information included in labels and data sheet from Wilhelmsen ships service.

extra miles: “By providing useful information we are also building confidence,” say paal Berg (to the left) and leen de Visser after their carnival cruises customer meeting.

alWays on call: “you can call us 24/7, any time you have a question related to any of our products,” says hms manager leen de Visser of Wilhelmsen maritime services.


norWaY: One could almost suspect Håkon Vik of going into hiding. The way to him took us first to the southern Norwegian town Fredriks-

tad, then across a number of small islands and bridges, next through a two mile long under-water tunnel, a side road off a side road off a side road, and finally to a winding footpath through the forest.

At the end of the path lies his small holiday cottage with a grand view of the surrounding fjord. This is where WW's foremost ‘trouble shooter’ finds his rest when he is not away on a mission to one of the world's trouble spots.

This time, in September, he was back from Georgia, where the semi-retired 68 years old former Wilhelmsen Ships Service manager was sent immediately after the war with Rus-sia broke out this August. He came to offer the local staff his support and experience in very unusual circumstances: How to handle a tense situation with Russian soldiers patrolling the streets outside and the occasional bombings in Poti's port area?

Moral SUpport. "Not that I can make that much difference," he says. "The main thing is to show our local staff that they're not alone,

that they belong to a company that cares about them and is willing to support them in a very difficult situation."

We're seated inside his small, modest cabin, which he bought in anticipation of his retire-ment in 2001. This is where he and his wife Elisabeth spend most of the summer months when Håkon is off assignments.

"Retired, me?" he asks rhetorically. "Yes, I am,

in the sense that I'm no longer permanently employed. But I'm far too restless not to work. So if it hadn't been Wilhelmsen, it would have been some other company. I'm fortunate still to be of some use to my former employer."

Which he is most of the time. This year has been especially busy, with the Georgia assign-ment the latest of several missions.

The interior of the cabin is classical Norwe-gian cottage style; unpainted walls, the occa-sional wrought iron or ‘rose’ painted decora-tion. Nowhere are any memorabilia from his

many travels to be seen. "Well, I've never collected much," he says,

"although I do have an Arabian sword and an old muzzle loader from Yemen somewhere. But that's about all."

"necessary tools for a trouble shooter, perhaps?""No, not at all. I don't know if I've ever been in any real danger. The trick is to use your com-mon sense and listen to the locals. People are

people everywhere, the difficult ones are few and far between," says the man who has become something close to a legend among insiders.

an inSiDer. Admittedly, he has seen the in-sides of more third-world jails than he cares to think about.

"Mind you, it’s never been due to my own do-ings, and never anything really dramatic," he says between puffs from the first of several cigarettes.

"But, of course, it's never convenient to be arrested. Like the time I had arrived in Khar-

The trouble

He has ‘walked the line’ with a drunken air pilot to get him fit for flight, been held at gunpoint by Algerian security forces, and seen action in a number of

the world's trouble spots. Meet WW's ‘secret weapon’ – Håkon Vik.text: einar chr. erlingsen Photo: kaia means

WWproFile

sHooTer

"the chieF pilot WaS at leaSt able to StanD on hiS Feet, So We MaDe hiM ‘Walk the line’ beFore We – verY relUctantlY – conSiDereD hiM Fit For Flight." håkon vik

"Skarrebo gave Me thUnDer. i

WaS convinceD he WaS going to

Sack Me When he SaiD that

he WoUlD give Me one More

chance"

håkon vik


WWproFile

toum in 1987, and was booked by our local branch manager on the connecting flight to Port Sudan. I was waiting for takeoff when two armed policemen entered the cabin and came straight at me.

It appeared that a special travel permit was required for Port Sudan; something the local manager had failed to give me. So instead of in Port Sudan, I spent a night in jail, franticly try-ing to get in contact with our office. This was in the days before mobile phones, and was further complicated by the fact that our manager had gone home for the day.

But after some long hours I was able to join next day's flight to Port Sudan.

"which assignment was your most difficult one?""Without doubt Iraq in 2003. I don't think I was in any real danger, but the mental pressure was huge. Other foreigners were killed. I spent most nights safely in Kuwait and sometimes in Umm Qasr and worked in Basra during the daytime. Our local manager and employees were a lot worse off. I very much admire their courage and the work they have been doing ever since. They and the other local people who work under difficult circumstances are the real heroes in this story."

a SUSpicioUS perSon. "We started up by establishing the Basra office, but needed an operation in Baghdad as well. So I went by car

with our local manager captain Mazin Hamid, his wife and four children. The only incident occurred when we were stopped at an Ameri-can control post where a rather aggressive gentleman wondered what the hell I was doing in a car with an Iraqi family.

Anyway, the mission was a success. We se-cured a good contact for road transportation, and even got a licence for handling planes at Baghdad's airport."

"weren't you arrested once for sabotaging an american tank in saudi arabia?"

"Actually, yes. This was during the first Gulf War, after Saddam Hussein had occupied Ku-wait. The Americans were sending in military equipment through Saudi Arabia, and we were agents for a small ro-ro carrier loaded with tanks. I was working late in the office when a port supervisor arrived at the door with four armed policemen. It appeared that a huge Tiger tank had toppled into the sea from the ship's main deck. Sabotage was suspected and as the agent, I was held responsible.

What really had happened was that the vessel got a heavy list due to uneven discharging from the lower decks. Meanwhile, the stevedores had removed the lashings on the tanks on the main deck, with unfortunate consequences. So when the incident was sorted out, I was a free man once again."

Ftootball Fanatic. A lot can happen in a tense war situation. However, it's quite unusual that an interest in football can cause problems.

"there is a story going around about an unexpected meeting with algerian security forces?"

"Well, you see, I'm a great fan of Liverpool Football Club, and try to watch their matches whenever possible. I was in Algeria, where the situation was quite tense due to several terror-ist attacks. After work, I seated myself in front of the television in my hotel room to watch a match between Liverpool and Dynamo Kiev."

When Liverpool scored the two to one victory goal, Håkon made so much noise that someone in a neighbouring room called reception, think-ing something really nasty was going on.

"The next thing I knew was a knock on the door, and two armed security men burst in when I opened. I do get quite carried away when it comes to football. It's almost embar-rassing to admit it, but I become something like a religious fanatic I think, especially when watching Liverpool live at Anfield."

"apart from that, everyone says that you're a well balanced, sensible man who creates great confidence with those you work with. so what's your secret?"

He inhales deeply from yet another cigarette before answering:

"I don't think there is any secret, really, apart from perhaps using some common sense. I

milestones1940 war child. håkon Vik is born in a small village outside Bergen, less than a month after nazi germany invaded norway.

1955 rooKie sailor. 15 years old he goes to sea as a mess boy on board a herring catcher.

1956 seven seas. a sea-faring career begins which will take him all over the world.

1959 liverPool. håkon Vik meets some young liverpool football fans in a pub, is invited to a match and becomes a life-long addict.

1967 ww man. he starts working with WW as second officer on m/V tema in the Us - east africa trade.

1970 smuGGler. "my life's biggest mistake." involvement in a smuggling attempt almost costs him his job.

1976 Platform manaGer. håkon Vik is commander on treasure hunter, WW's first fully owned oilrig.

1980 barwil manaGer. he leaves the sea for a period to work with Barwil (now: Wilhelmsen ships service)

1985 the arctic. WW takes delivery of the world's first oilrig adapted to arctic conditions. håkon Vik assisted in the building process in Japan and becomes the first platform manager.

1987 bacK to barwil. a new career begins. During the following years he establishes no less than nine new companies, in egypt, kenya, yemen, Jordan, lebanon, greece, italy, pakistan and iraq.

2001 trouble-shooter. håkon Vik, now 61, ‘retires’ and becomes Barwil's unofficial ‘trouble-shooter’.

2003 iraQ. he follows in the tracks of american forces to establish Barwil iraq with a local partner.

2005 alGeria. håkon Vik is held at gunpoint by algerian security forces.

2006 tattoo. he has liverpool fc's emblem tattooed onto his shoulder.

2008 GeorGia. When war breaks out with russia håkon Vik is sent in to support the local Wss office.

pride myself of an ability to communicate with all kinds of people from all walks of life. I think this has to do with respect. A ship agent depends on many other people to do a good job; those on board, local authorities, customers, stevedores."

appleS anD cigaretteS. "To appreciate the work others do is a lesson I learnt as second officer on M/V Tema with captain Johnny Bay in the U.S.-West Africa trade in the late 1960s.

At the end of each port call, we put on our best uniforms and visited booking agents and port authorities with a huge crate of delicious, red American apples. Every employee received apples according to rank. It wasn't really what we gave them that mattered, but that we came with the one purpose of showing our apprecia-tion of their work. If you treat people with re-spect, always follow up on your promises and never, never take a good business associate for granted, you're normally well rewarded."

"nevertheless, you were almost sacked from wilhelmsen at one stage?"

"Yes, a most unfortunate affair, and probably

the biggest stupidity of my entire career. It had to do with this," he says looking down on a smouldering cigarette in the ashtray.

It was 1970 and Håkon Vik was 30 years old and first officer on M/V Trinidad when two fellow officers approached him and offered him a few hundred dollars to assist to smuggle a container filled with cigarettes from Germany to Norway. The smuggling was discovered, the main perpetrators caught, and Håkon Vik was called to the office of maritime director Kåre Skarrebo upon the ship's next return to Norway.

to Walk the line. "Skarrebo gave me thunder. I was convinced he was going to sack me when he said that he would give me one more chance. ‘As long as you stick to the straight and narrow in the future, and remain loyal to WW,’ as he put it. So I learnt my lesson, and have remained true to captain Skarrebo's words ever since."

"Perhaps that was when you learnt to ‘walk the line’ - and even persuaded other people to do the same? like in odessa at one point?"

"So you've heard about that? That was probably the most dangerous situation of my career. It was in the late 80’ies – the times of glasnost in the former Soviet Union – and vice president Knut Brathagen and I were trying to establish a foothold for Wilhelmsen in the Black Sea region. We were in Romania and needed to go to Ukraine to meet some promising contacts.

Flights were few and far between. We ended up hiring an old Russian Illjushjin 50 seater just for the two of us. It cost a pittance at the time, considering the plane came with a crew of six: two airhostesses, two pilots, a mechanic and a navigator.

We landed fair and well in Odessa, had a number of meetings during the day, cleared out through emigration in the evening and found the entire crew more or less dead drunk. The airhostesses were snoring happily and beyond

contact, while the mechanic fell over and couldn’t get back on his feet when he came into the cabin. The rest

of them were not much better.So what to do? We had to leave because we

already were checked out of the country, and going back again to all the Ukrainian officials would mean a lot of trouble. The chief pilot was at least able to stand on his feet, so we made him ‘walk the line’ before we - very reluctantly

- considered him fit for flight. We took turns in the cockpit to prevent him from falling asleep, took off and landed safely in Romania an hour or so later.

Thinking back, those were probably the most dangerous moments of my entire ‘trouble-shooting’ career."

"i WaS Working late in the oFFice When a port SUperviSor arriveD at the Door With FoUr arMeD policeMen." håkon vik

a statement from a friendfew people know håkon vik better than his friend, colleague and boss for more than 20 years, Knut brathagen.

"Whenever trouble or unexpected problems are brewing somewhere, i immediately call håkon," says Wss vice president region asia, middle east and Black sea, knut Brathagen.

the two share a long history. they both have a maritime background, including a typical hands-on approach to work.

"håkon is the best colleague any man could wish for. he is flexible, good at delegating, and not afraid to speak up if he disagrees. he maintains a tremendous network with people from all backgrounds and cultures, and enjoys great respect from everyone who has ever worked with him. his maritime experience is enormous, and he is more than willing to share his knowledge with younger colleagues. i feel privileged to work with someone like him."

in georgia: håkon Vik arrived in poti shortly after the russian invasion in support of the local Wms organisation. here he is in the harbour with operations manager nugzar chanidze while the fighting was still going on in the city.

tattoo: When he turned 65, håkon Vik considered himself old enough to have liver-pool football club's emblem tattooed onto his shoulder.

"i priDe MYSelF oF an abilitY to coMMUnicate With all kinDS oF people FroM all WalkS oF liFe."


WWinnovation

thailanD/SUDan: so confident was the captain that he even offered to service the first ship for free, a temptation the customer found hard to resist.

When captain elfatih idris and Wilhelmsen ships service more than lived up to their word in Dammam, saudi arabia, the customer not only chose to pay, Wss was also entrusted with a second thoresen ship.

"We still lived up to our guarantee, and were rewarded with being appointed agents for the entire thoresen fleet. not just in Dammam, but in iran, Jeddah, Bandar abbas, and port sudan as well," says captain idris, currently Wss' general manager in port sudan.

StUDieD bottleneckS. captain idris had done his homework properly before approaching the customer, by studying the turnaround of the thoresen ships in port, and identifying any bottlenecks. When the opportunity arose, he made sure that everyone involved was aware of the obstacles and how to avoid them.

“it really boils down to good communication, good relationships with everyone involved in port, and to being proactive and planning ahead of arrival. Unexpected events are frequent, so the more prepared you are, the better you are able to find alternative solutions,” says the captain.

Just to put his achievement into some perspective: captain idris challenged thoresen's by promising to save them about one million UsD per year in Dammam alone. the company has on average one Dammam port call per week, and Wss has identified a savings potential of approximately UsD 20 000 per call.

the iMportance oF conSiStencY. captain idris' reflections mirror the findings of the port study itself, when completed this august by Wss vice president region amB, knut Brathagen and port captain/marine superintendent frank olsen, Dubai.

“consistency in the service level delivered is another main conclusion,” says mr. Brathagen. “customer experience in one port will often decide whether we're chosen as agents in other ports or not. our best promo-tion is word of mouth. it's how you act when a problem arises that you can best demonstrate the quality of the services and products you offer a customer.”

Port efficiency study gave immediate effect“We'll reduce turnaround time in port by thirty percent if you'll give us the chance to prove it,” said captain Elfatih Idris to potential customer Thoresen Lines. text: einar chr erlingsen Photo: alaa Baasher

norWaY: Earlier this year the muse-um received a letter from Loc Cung, an Australian of Vietnamese origin. Mr. Cung is an engineer, living in

Sydney. Here are some excerpts:"I will never forget the moment I was helped

on board the Norwegian vessel Toyama on the 26th May 1981 after having drifted in a tiny boat with 141 souls onboard."

Mr. Cung goes on to describe the terrible conditions suffered by those on board before they were finally rescued, and then he writes:

"27 years later, I am married with two beauti-ful daughters, ten and six years of age. I have chosen to tell my daughters the story of my es-cape every night as a bedtime story. Every time I meet a Norwegian, I always make sure to let them know that I am indebted to their country because of the kindness shown by the captain and the crewmembers of the Toyama. I would love to send them a big THANK YOU!"

rescUeD at seaWW is prominently dis-played at the Norwegian Maritime Museum's exhibi-tion ‘The Boat People’ that opened recently.text and photo: einar chr erlingsen

proUD story: historian elisabeth koren says that the norwegian maritime industry can be proud of its many refugee rescue operations.

WWhiStorY

WSS port StUDY

the study identifies success criteria for agency and logistics services for general cargo and liner segments ➜

a secondary study covering also the tanker trade is in progress ➜

a number of existing and potential customers have been interviewed as part of the study ➜

study results to be introduced to all Wss offices gradually, and will be used as a work document in the aop process ➜

(annual operation plan) to measure areas of improvement

SaveD bY WW

873Vietnamese boat refugees were rescued by WW owned vessels on 19 separate occasions during the late 1970s/early 1980s.

434refugees, mainly from afghanistan were saved by WW's tampa in august 2001. this incident made world headlines for more than a week.

WWs own chef Dinh Johannes ngo (in yellow shorts) was among the boat refugees that was saved by a Wilhelmsen crew in 1989.

oUr man in port: captain elfatih idris approached thoresen lines and guaranteed to reduce time in port for their ships by 30% if they chose Wss as their agent. he lived up to his word, and won over the customer.

"thor VentUre": one of the thoresen lines' ships that have now switched to using Wss' services in the middle east/south east asia.

proUD hiStorY. "This letter is typical of the many stories that we have heard since we started planning this exhibition," says senior curator and historian Elisabeth Ko-ren at the museum.

Our readers will remember the story of Dinh Johannes Ngo (WW World no. 1-08), who was a boat refugee and is a WW employee today. His story also appears in the exhibition catalogue. Models of WW ships Toyama and the most celebrated of them all, Tampa, are both prominently displayed at the exhibition.

it iS Still happening toDaY. "Boat People" is a historic exhibition, but more than that," says Ms. Koren. "History is being repeated today wherever desperate people cross dangerous seas in tiny boats in search of a better future. Our exhibition tries to focus also on their plights."

"During the Second World War ethnic Norwegians were also ‘boat people’, escap-ing Nazi occupied territory in small boats. One boat has survived to serve as a ‘centre piece’ at our exhibition. The ‘Gibraltar Boat’ was built from scrap material by three Norwegian mariners who were stranded in North Africa and used for their success-ful escape to British Gibraltar where they reported for duty."

WW iS aMong the SponSorS to the

eXhibition. It was opened in the presence of HRH Queen Sonja on 23 September and can be seen at the maritime museum in Oslo, Norway until the end of August 2009.

"hiStorY iS being repeateD toDaY Wherever DeSperate people croSS DangeroUS SeaS in tinY boatS in Search oF a better FUtUre."


Singapore: “The number of unique de-liveries is increasing, as is the volume and values of each order,” says supply manager Zainodin Noordin (Din).

WSS handles some 2 000 port calls and 12 000 deliveries in Singapore each year. The warehouse also serves as a hub for the rest of the South East Asian region, making it re-sponsible for some 5 400 port calls and 17 540 product deliveries annually.

A larger warehouse is important in order to improve customer service. “It takes too long to order products from Rotterdam or from Uni-tor Chemicals in Norway. With a stock of more than 3 000 products locally we can serve our customers more efficiently than previously,” says Mr. Noordin.

Inventory planning is a key issue. “We need a good overview of our stock, what we need and particularly which products are needed when and where. Too much in stock doesn’t generate enough cash flow, but it is essential to have an in-depth knowledge of what we need in stock at all times to meet our customers’ demands.

We can’t risk not being able to handle an order,” says Mr. Noordin, knowing that without cus-tomers he won’t make any money. The number

of port calls to Singapore is increasing fast and might well pass Rotterdam in a few years time. We will do our uttermost to serve our custom-ers at the best of our ability," says Mr. Noordin, who expects to have his expanded warehouse up and running by October 2009.

WorkShop iMproveMentS. The warehouse rebuild will also include a larger and more modern workshop.

“Our workshop handles 1 250 safety jobs and some 150 refrigeration jobs annually. The ex-pansion will increase our capacity,” says service manager Tay Ming Sing.

“Hopefully by 2009 we will also have our in-house academy up and running,” says Tay, elaborating about the need to transfer know-

ledge from the more experi-enced engineers to younger employees.

An apprentice scheme will be part of the academy, pro-viding the employees with guidance on what it takes to

fill new positions. “We believe this will be a good way to retain employees,” concludes Tay.

eXpectS groWth. “As Singapore handles about one-fifth of the world’s total container tranship-ments throughput and 6% of the global container throughput, there should be a big growth poten-tial for us in this region, being located at the in-tersection between the strong Asia-Europe trade,” says Bjørn Tønsberg, vice president Region Asia Pacific, WSS in Singapore. “We anticipate continued growth, and are pleased to see that the government of Singapore is expanding port capacity with new berths and cranes.”

From 2005 - 2007 WSS revenue jumped by 28%. From July 2007 to July 2008 the number of product deliveries grew by 9.3%. Founded in 2005, the company has been more successful than many could foresee. text: Don pyle Photos: Wss

norWaY: WSS president David J Tandy attributes the success to an unwavering focus on the custom-ers and their needs. "When the

customers are satisfied, they are more likely to continue to do business with us," he says.

WSS’ strategy is to understand and act on customer needs. Profitable growth will be achieved through market segmentation and tailored business streams, with focus on value creation and delivery of service. The company will be commercially present where the cus-tomers are located and operationally present where their vessels trade. This was a firm commitment and a turning point in how the business is run, explains Tandy. The next step was to gear the organisation to the challenge.

iMpleMentation poWer. To increase its “implementation power,” three changes were made to the organisation. Market segmenta-tion activities were combined with sales to ensure an even closer match with customer needs. The business streams were combined with operations for a smoother transition from product and service management to delivery to the customer. To ensure imple-

mentation locally, area directors were added to the geographical units, each responsible for implementing strategy within his/her area.

As a result, solid growth has been achieved in all the business streams and market segments. More presence in fast growing markets like India and China has earned new customers. The technical service net-work has been expanded particularly in Asia to capture the growing need for safety and environmental services. Logistics has become the second-fastest growth area.

WWinnovation WWneWS

Wilhelmsen ships service

expanding to meet customer needsWilhelmsen Ships Service (WSS) is expanding its Singapore warehouse by almost 170%, from 1 000 to 2 707 pallets space.

taKinG care of business

Wilhelmsen Ships Service 4 250 employees ➜

offers marine products, ships agency services, ➜

maritime logistics and technical services ➜

special solutions for the cruise industry, coal and ➜

iron ore and cargo tank cleaning 195 000 product deliveries (2007) ➜

55 000 port calls handled (2007) ➜

moves 150 teu of customer cargo per hour ➜

neW solUtion: Wss offers safe and simple cargo hold cleaning and thus reduces turnaround time in port. sales have more than doubled since the kit was introduced in June 2008.

Wss president David J tandy attributes the success to an unwavering focus on the customers and their needs.

"a larger WarehoUSe iS iMportant in orDer to iMprove cUStoMer Service."

WorlD'S largeSt

singapore is the world's largest transhipment hub, ➜

and handled 27.1 million teUs in 2007.its four terminals at tanjong pagar, keppel, Brani ➜

and pansir panjang serve 200 shipping lines, which in turn provide connections to 600 ports in 123 countries. the multipurpose terminal pansir panjang also ➜

serves as a ro-ro and car carrier hub, handling more than one million vehicles annually as well as 18 million tonnes of break-bulk and specialised cargo and vehicles. there is also a terminal in Jurong for containers and break bulk.

keY FigUreS

Wilhelmsen ships service, singapore (2007 figures).

port calls 2 000 product deliveries 12 000 safety jobs 1 250 refrigeration jobs 150

BUsy port: Judging by the increase in traffic, which singapore has seen recently, the city-state might well pass rotterdam as the world's busiest port in a few years time. in the foreground: psa tanjong pagar terminal.

phot

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the Vision: this is how Wss singapore's new ware-house, workshop and office facility at pandan loop will look when completed one year from now.

text: Benedicte gude


onSite

gateway to scandinaviaaboUt the oFFice:

there are seven employees at Wss Denmark's main office in copenhagen, with another two - andrew somers and hans-henning nielsen - at the esbjerg branch office. main areas of operations are marine chemicals and, gases and other types of ships equip-ment and services, including frs.

location: coPenhaGenThe light, Nordic summers are hectic times for WSS Copenhagen. The city has more than 300 port calls from cruise vessels between early May and late September. As the majority of the Danish ship-owner are WSS customers, the large Danish commercial fleet provides ‘bread and butter’ for the rest of the year.text and photos: einar chr. erlingsen

copenhagen

Sent US a tip. Do you also have a story that you would like to share with your WW colleagues? then, please send e-mail to: [email protected].

tiMe For tankerS: some 80% of the oil consumed in copenhagen and its surroundings comes in through the oil terminal prøvestenen (the trial stone). total deliveries to tankers, bulk and cruise vessels from Wss in Danish ports will reach around UsD 5 mill this year.

catch r-22: Dispatcher helle hvitfeld from Danish ship-owner torm studies the information on alternatives to the ozone depleting refrigerant r-22, which will be gradually phased out from all european Union flagged vessels before 2015. “Wss has the alternatives,” says port sales engineer claus sibbesen.

crUiSe port: thanks to excellent air communications and infrastructure most cruise operators who visit the norwegian fiords/Baltic sea have selected copenhagen as a turn-around port for passenger exchanges and deliveries. most of them are customers for the products and services provided by Wilhelmsen ships service (Wss). the nordic cruise season from may to october is therefore an extremely hectic time for port sales engineer claus sibbesen and warehouse supervisor carsten larsen.

port DeliverY: Wss warehouse supervisor carsten larsen (standing up) has just made a delivery of marine chemicals to norwegian customer seatrans.

reaDY For DiSpatch: account manager morten Bjørn (to the left) and warehouse supervisor carsten larsen check out a shipment ready for delivery to one of the four cruise vessels in port on this particular september day.

DaniSh hUb: Denmark's huge commercial fleet only rarely calls at their home country. “But it's where the owners are that counts,” says mathias andersen, one of two copenhagen-based customer service representatives. his colleague sune skytte (photo) primarily dispatches orders received from a. p. møller/maersk for deliveries around the world from other Wss offices. “the fact that we cover almost every port of some size is a great selling point,” he says.

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tiMe to aCtOzone depleting refrigerants will be banned within a few years. Legislation is on the way that requires treatment of ships ballast water. The crackdown on emissions of noxious gases from ships is well underway.

the WorlD aS i See it

the way the world looks depends largely on where you are. in order to balance the traditional head office view, WW World is challenging managers and others from our worldwide organisation to give their views on the market situation, current events and other subjects of interest.

our guest just returned after several years in shanghai, from which he led the expansion of the company’s market leading safety and environmental systems into asia. meet peter StockleY, president, Wilhelmsen ships equipment.

yoUnGtalent

• oSlo

tUrkeY: The shipyards in Tuzla near Istanbul are among Andaç Geyik's favourite grounds of operation. There are 36 of them along the shores of the

Bosphorus, filled with ships of all sizes, makes and states of repair. Most yards are fully booked for the next two years or more, thus representing ample opportunities for new business for Wilhelmsen Ships Service (WSS), Mr. Geyik's employer during the last year.

MUlti-pUrpoSe Man. The local WSS office expended a lot of effort to find someone like Mr. Geyik; not just someone with a degree, but also with some maritime experience and a combina-tion of administrative and practical skills.

“I sailed as 3rd engineer for a year and a half,” says Mr. Geyik, who has a degree in maritime engineering from the local university. “I have worked as a superintendent and as a broker. Before my present job I worked with a smaller company that did not quite fit with my plans for the future. A friend recommended WSS, and I'm very grateful to him for that,” says Geyik, who currently introduces himself as a sales engineer.

That title covers a lot, from promoting Unitor products or delivering documentation to ships in dock, to assisting the crews in all kinds of service matters.

“I really don't see the difference between being a products’ man and an agency service man. In my world, the two are equally necessary roles

that should be combined. You do more and better business that way, and the ships’ officers have fewer people and companies to relate to. A multi-purpose man who knows his job is a man with many loyal customers.”

One such customer is captain M. D. Nurul Hoque. A Bangladeshi national, his ship has been in one of the Tuzla docks since April, under going comprehensive upgrades of engine,

hull and other equipment. Captain Hoque wel-comes Mr. Geyik with a warm handshake; the two are already well acquainted with each other.

SaveD thrice. “The very first day in dock we had a complete melt-down of our refrigeration equipment,” explains the captain. “25 tonnes

of food were in immediate danger of going to waste, as there was no cold storage available anywhere. We were about to give up, but WSS was not and came up with a solution just in time. Some food was stored on board another ship in the yard, the remainder in a cold store that WSS was able to find on shore. They saved us a lot of money that day,” says captain Hoque.

a jack of many trades

“I'm not really a sales man, or an operations man. I'm a little bit of both, in addition to some other roles,” says Andaç Geyik (26). He is a new kind of colleague in Istanbul. text and photo: håvard solerød

norWaY: These are just three environ-mental challenges faced by ship owners today. The list is long. What should the owner do to avoid fines

for non-compliance and similar problems? When is the right time to act?

Almost everywhere I have been, I’ve seen the growing concern for cleaning up the marine environment. The concern is universal and it is real – it’s not a passing fad or something that will go away. Driving this is the IMO and other lawmakers, but they are not alone. Many ship owners and suppliers are also at the front line. After all, everyone wants a better world, don’t they? So what’s the problem?

the preSSUre to get green. The main prob-lem is one of insufficient resources and infor-mation. Ship owners struggle to get a concise, up to date picture of what is required. Perhaps their technical resources have been cut back – I don’t know – but the next question is no less demanding: what to do about it. Many there-fore feel the pressure to get green but lack the time or resources to evaluate the best choice in a sea of choices. Some choose to do nothing. Doing nothing is not the correct option when the marine environment is concerned. This got us thinking.

Could we bundle our environmental sys-tems and services in a way that made it easier for the owner to understand and prioritise problems and choose a course of action based on his specific needs? Yes, we could. This led us to ACT– where ACT means to take action.

an all-inclUSive concept. ACT is Wilhelmsen Maritime Services’ new environ-mental program. It follows on the heels of

the environmental legislation resulting from MARPOL 73/78. All Wilhelmsen environmen-tal systems and products for water treatment, emissions to air and waste management are bundled together, supported by a maritime net-work comprising over 350 offices in more than 70 countries. This ensures a uniform quality and level of service everywhere. We will use our global presence to sell, distribute and service our ACT environmental systems, products and services. Our advantage is that we can combine the cutting edge technologies of such partners as South Africa’s Resource Ballast Technol-ogy in ballast water treatment and Norway’s Yara International in NOx abatement with the market skills and know-how of the world’s largest maritime services network. This creates synergies and environmental solutions that will shape the industry in the years to come.

ACT was born out of the growing concern for the marine environment and increasing legis-lation aimed at improvement, but where the capability to translate this into smart choices for the ship owner was lacking. We offer own-ers our expertise and advice, together with the solutions themselves. This will save the owner time and money in the long run.

"iF theY leave With MeMorieS oF gooD Service anD an eStabliSheD perSonal relationShip, the chance iS great that theY Will call on US again neXt tiMe theY paSS iStanbUl,” anDaç geYik

Not long after that incident, it was the captain himself who experienced a close call when he fell from the deck into an 11 meters deep cargo hold. He managed to break his fall by getting a grip with one hand on a swing platform used for paint-ing, but still sustained several broken ribs.

“WSS and Mr. Geyik did everything in their power to help with transport, hospi-tal and everything else. I don’t think any other agency could have done the same,” says captain Hoque.

So convinced is he that he actually re-peats his words, before going on to mention the time when he ran out of cash to pay for an important delivery. Mr. Geyik and WSS came to his assistance within 30 minutes.

“While I’m primarily in the docks to pro-mote technical equipment, I always try to sell agency services before the customers' ships leave the yard. If they leave with memories of good service and an estab-lished personal relationship, the chance is great that they will call on us again next time they pass Istanbul,” says Mr. Geyik.

sUpplier anD agent: captain m.D. nurul hoque no longer regards Wss representative andaç geyik as just another supplier of ship equipment. excellent services rendered in port have convinced the captain that there is no better ship agency in istanbul.

act is Wilhelmsen maritime services’ new environmental program.

WWWORLD.3.200852

historiCcornerWilh. Wilhelmsen was established as an independent company in 1861 and will celebrate its 150th anniversary in 2011. WW World would like to share some of the company’s long and exciting history with its readers. readers with stories to share or feedback to give are welcome to send an email to [email protected].

the year 1961 marked 100 years since the company was founded and also 50 years since Den Norske Afrika Australielinie was set up and established regular liner

trade. The following year also marked the 50th anniversary for the first tanker ordered and 60 years since the W flag was lowered from the mast of the last sailing ship. In the course of the first 100 years the flag had been flown from the mast-head on 235 ships, including 28 sailing ships.

In its anniversary year WW’s 63 liners tran-sported two million tonnes of general cargo and its nine tankers shipped an equal quantity of oil. All told the liners covered a distance equivalent to 170 times around the Equator, with 272 overseas voyages on nine different trades with all of 3 744 port calls.

the golDen age. This was the international

golden era for the liner trade with the con-ventional liner ships gradually changing their outward aspect and construction. With the delivery of Tricolor in 1960, WW had taken a definite step forward in developing its liner vessels. This ship was the first in a series of six, that also included the “anniversary ship” Tønsberg, which was built at Kaldnes Mek. Verksted in Tønsberg, WW’s hometown. The superstructure and engine were moved aft and deck cranes were fitted in addition to the regular loading booms; the vessels became known as ‘backloaders’ . Her service speed was 19.5 knots and everything was designed to ensure more efficient cargo handling and shorter port calls.

a tiMe For cooperation. Collaboration with the two Swedish liner companies Transatlantic and Broström came about gradually when

working on the construction of even more state-of-the-art liners for the Australia and Far East trades. The so-called Scandia ships appeared with double hatches and deck cranes, and with a separate container section under deck. Four ships of this type were ordered from Swedish yards, with Torrens (1967) as the first. Containers were now making their way into the liner business and in 1970/71 these vessels were all extended with separate container sections.

Four ships of the same type, but somewhat larger and faster, were ordered in Japan. The vessels were 15 600 tdw with a speed of 21.5 knots and were considered among the very fin-est in conventional liner ship design. The price tag showed NOK 43 million. The last of these vessels, Taimyr (1968) was also the last WW liner with the familiar black hull and white belt, in full “evening dress”.

The development of new transport concepts for the liner trade and growth of new constel-lations in business followed the advances made in ship design. This will be subject of our next Historic Corner.

thE goldEn agE of linErsLet us pause a little at the year 1961, the company’s 100th anniversary – a year to celebrate, in more ways than one.text: hans chr Bangsmoen

a neW era: the liner vessel tricolor marked the beginning of a new era when she was delivered in 1960

ww world 3-2008

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