Aegean Marine Petroleum Network Inc.

Aegean News
T H E
Q U A R T E R L Y
M A G A Z I N E
O F
A E G E A N
WINTER 2004-05
Perspective
Merchant Marine
Minister
Manolis
Kefalogiannis
Aegean
Participates
in Economy
Conference
Piraeus
Anatomy
of a Port
The China
Syndrome
Plus
Flows & Currents
Roots
Maritime Tradition
RETAIL
A Growing Concern
∞¶ƒπ§π√™WINTER
- π√À¡π√™
2004-05
2003 AEGEAN NEWS 33
editorial
Another year has passed, but this time its last days
Aegean
Core Activities
coincided with one of the worst natural disasters in
the history of mankind. The disaster in South East
Asia resulted in thousands of casualties, millions of
homeless, and enormous damage. Throughout the
ages, we, as Greeks, have developed the capacity to
restore the damages brought about by tragedy and to
cultivate the positive aspects of tragic events. So, let
us all stand by those who have survived the catastrophe and try to soften their pain and heal their wounds. Let us all prove that
when people—irrespective of color, nationality, and religion—stand by each
other with a common goal, miracles can happen and the highest goals that
stem from human solidarity can be achieved.
Retail
➔ More than 360 gas stations throughout
Greece proudly display the AEGEAN logo,
and our network is growing every week.
AEGEAN's market share in Greece is 4.5%.
Shipping
➔ AEGEAN manages a fleet of 30 tankers,
ranging from 3,500DWT to 100,000 DWT,
that transfers and delivers oil to our
clients throughout the world. All ships
meet ISM standards.
Regarding Aegean issues, 2004 was a successful and prosperous year for
the group in all its areas of activity. The shipping department continues to renew its fleet and the bunkering sector continues to expand into new markets.
Lastly, I would like to note our company’s progress in the domestic market, where Aegean, acquiring 360 gas stations, has expanded throughout
Greece. After only 5 years of operation, Aegean has established a dynamic
presence in the Athens and Attica markets.
Since its inception, Aegean has maintained its own secret to success. All
of the company’s steps have been based on its partners, friends, and on human beings. Aegean will continue to uphold these values so that it can ensure success.
I extend my wishes to all of you for a good and creative New Year.
Bunkering
➔ In Piraeus, Gibraltar, Venezuela, and the
United Arab Emirates, AEGEAN is a leader
in providing the best bunkering services
available. In Piraeus, AEGEAN is the market leader in bunkering.
Agency Services
➔ Ships from around the world rely on our
agency services at Piraeus and Gibraltar
24/7, from loading and discharging, to
spare parts and supplies.
TEXACO
Lubricants
➔ AEGEAN exclusively stocks and sells
DIMITRIS MELISSANIDIS
ChevronTexaco automotive lubricants
throughout its retail network.
WINTER 2004-05 AEGEAN NEWS 1
contents
12
Strong voices
from the Aegean
retail network
CODE: 5169
Winter 2004-05
Aegean News is published
quarterly by AEGEAN
PUBLISHER & MANAGING EDITOR
Raymond Matera
CONTRIBUTING EDITOR
Kostas Psomiadis
LAYOUT AND PRODUCTION
Multimedia S.A.
PRINTING AND BINDING
A. Psillidis & Co.
OWNER
Aegean
42 Hatzikyriakou Street
185 38, Piraeus, Greece
Tel: +30 210 458 6000
Fax: +30 210 458 6241
E-Mail: info@aegeanoil.gr
Internet: www.aegeanoil.gr
Comments and suggestions
are welcome.
Aegean News is free of charge and
is available, subject to
availability, to any interested
person or organization.
22
Merchant Marine Minister
Manolis Kefalogiannis
says that upgrading
Piraeus is a main goal
4 AEGEAN UPDATE
6 ∆HE AEGEAN CHRISTMAS PARTY
FOR CHILDREN
7 AEGEAN PARTICIPATES
IN ECONOMY CONFERENCE
8 FLOWS AND CURRENTS
Trends and News in the Oil and Energy Fields
10 RETAIL
Iakovos Melissanidis
11 RETAIL
The Fuel Market
12 STATIONS OF THE MONTH
Papathanasiou - Bouroulitis:
Our Lives Chanched Within an Hour
George Zaharoudis: Our Word Is Enough
14 BUNKERING
Identification of Problems
with Lubricant Sample Analysis
15 SHIPPING IN NUMBERS
16 BUNKERING
∆echnical Department
The Heart of the Shipping Company
18
Anatomy of a Port: Piraeus
The Port of Piraeus is entering a very significant
period that will define its role in European and
International shipping
17 SHIPPING
Aegean Fleet Under Renewal
18 PIRAEUS
∞natomy of a Port
22 MERCHANT MARINE MINISTER
MANOLIS KEFALOGIANNIS
“Upgrading Piraeus a Main Goal”
24 ∆HE CHINA SYNDROME
Growth Spurs Demand, Creates Challenges
26 THE MINISTRY
OF MERCHANT MARINE
27 MARITIME TRADITIONS
Nikos Kavvadias
The Poet of the Sea
28 ROOTS
Ancient Symposia
29 ATHLETICS
Soccer: The First Kick Off
30 ∆RAVEL
Pelion—∆he Mountain of the Centaurs
31 AEGEAN PROFILE
Products That Say “We're Different”
WINTER 2004-05 AEGEAN NEWS 3
A EG E A N
U P DATE
From Shell to Aegean
A New Transfer Success
Nikos Peramatzis the New Manager
of Aegean Gas Stations’ Network
Mr. N. Peramatzis is an American College
graduate with a degree in Management and
Marketing and an MBA in Business Excellence. He worked for ten years with Sachinis Shipping and Agencies, with Camper &
Nicholson’s as a Sales Manager and with
Multi Marine Agencies as a CEO.
Mr. Peramatzis joined Shell Hellas S.A. 19
years ago as an Attica Sales Inspector.
Three years later he became Manager of
the Sales Office in Patras and then moved
on to the position of Regional Sales Manager. Mr. Peramatzis recently assumed
more duties as Sales Manager for Attica,
Crete and the Aegean Islands. Concurrently, he held the position of Retail Academy Manager and Instructor and was a representative and member of the B.o.D
of four Shell Hellas Group companies.
On January 1, 2005, Mr. Peramatzis was appointed Manager of Aegean’s Gas
Station Network. We welcome him and wish him every success in his new position.
Logging On
Customers and associates of Aegean
may visit the company's web site
[www.aegeanoil.gr] to learn about
the company's activities. Bunkering
customers may register online to
conduct business and maintain contact
with the bunkering department.
Best Wishes
to the Newlyweds
Kostas Katsoulis, a well-known businessman
in the fuel sector and a good friend and associate of Aegean, married Ersi Houhou on
Saturday, October 10, in the Metropolitan
New Year’s Cake
The New Year’s Cake was cut for the personnel of
the local Aegean branch at a gathering in Alexandroupolis on Wednesday Jauary 12, 2005. Mr. K.
Poursanidis and Mr. N. Peramatzis from the Retail
Market Department of the company were present.
The event took place in a warm and familial atmosphere, typical of the way Aegean operates. Manager of the Branch Mr. J. Pistolas cut the cake and
this year’s lucky people were Dimitris and Iakovos
Melissanidis, as the coin was found between their
two pieces. May this New Year bring prosperity to
all and further growth to the company.
Aegean Christmas Party
On December 24, the Aegean staff from each department gathered in the new
company headquarters to share in the holiday spirit and exchange wishes. The
dancing group of the Pontian association SERRA sang Christmas carols and
danced Pontian dances.
4 AEGEAN NEWS WINTER 2004-05
Church of Timios Prodromos in Xanthi.
Hundreds of guests attended the ceremony,
among which were many Aegean executives,
as the groom has been cooperating with
Aegean in recent years. Everyone at Aegean
congratulates Kostas and Ersi and wishes
them all the best in their new life together as
husband and wife.
Address, Phone and Fax
Aegean
42 Hatzikyriakou Street,
185 38 Piraeus
Tel: +30 210 45 86 000
Fax: +30 210 45 86 241
E-mail: info@aegeanoil.gr
Internet: www.aegeanoil.gr
Aegean Aids Tsunami Victims
Participating in the global effort to assist the tsunami victims of S.E. Asia,
Aegean donated 100,000 euro during a NET national television marathon. More
than 16 million euros were raised during the event that was held on January 5.
Aegean President Dimitris Melissanidis said that the disaster in Asia, the worst
natural calamity of modern time, has created in all of us a special sense of responsibility to aid our fellow human beings at this very trying time: “The magnitude of the tsunami aftereffects is beyond comprehension. We can only hope that
we can prevent more suffering by aiding in disaster relief, and that efforts at the
local and international levels will assist in rebuilding communities one by one so
that life for the survivors is one of dignity and hope.”
New Stations
in Aegean’s
Retail Network
The Aegean network is growing throughout the country. More than 360 gas stations in Greece are now part of the Aegean
family. Listed below are the stations that
have started displaying the Aegean Logo
during the last three months.
Aegean Participates
in Economy Conference
Minister of Employment Panayiotis Panayiotopoulos and
President of Aegean Dimitris Melissanidis.
Aegean participated in the Hour of the
Greek Economy Conference that was convened by the American-Hellenic Chamber
of Commerce on November 1and 2, 2004.
Prime Minister Costas Karamanlis, Opposition Leader George Papandreou, as well
as the Ministers of Finance, Development,
and Public Works addressed attendees.
Aegean President Dimitris Melissanidis
gave a presentation to delegates and participants. More inside…
Children's Christmas Party
The children of Aegean’s employees were treated to a visit from Santa Claus, a juggler, and a
clown at the annual children's Christmas party, which was held at the Athens Ledra Marriott
Hotel on December 18. The DJ spun Christmas albums while Aegean’s kids danced. Santa gave
super gifts to each child and everyone enjoyed a special kid’s buffet and seasonal Christmas
sweets. More inside…
Argyroupoli Tyrnavou
Revisios Christos
Admitou 307 Pipinou, Athens
A.Sakoulis & Co.
N. Rysio, Thessaloniki
Dimarhopoulou Sofia
4th km Livadias-Athinon, Livadia
Filippidi Giannoula
N.Souli, Serres
Koundougdis Nikos
Akrini Kozanis - Atmatzidis Ilias
Salonon 33, Amfissa
Perliga Alexandra
7th km Serron-Thessalonikis
Anagnostidis G.I Koraki
7th km Agriniou-Antririou, Agrinio
Sotiropoulou Fotini
3rd Parodos-Sofouli 10, Thessaloniki
Autohof Hellas SA
Thessalonikis 84, Athens
Iliakopoulos Andreas
Karoutes, Smila Pyrgou Ilias
Christodoulopoulou Christina
Sidirokastro, Serres
Eleftheriadis Konstantinos
Kalpaki, Ioannina - Petrelaiokinisi SA
Karytsa, Larisa - Basdravala Hariklia
83-85 Kifissou Ave, Aegaleo - Kostel SA
3rd km Galata- Nafplion
Kondoyiannis Spyridon
Regional Highway Verias, Imathia
Galanoudis Nikolaos
11 Cr. Maltezou St., Methana, Argolis
Leontsini Kleopatra
WINTER 2004-05 AEGEAN NEWS 5
Christmas Party
The Christmas celebration which was organized by
Aegean, where my father works, at Ledra
Marriot, will stay unforgettable in my mind.
It was done in a big and beautiful decorating
hall, which had many and big tables. It had
very good lighting and very good sounding, so you could hear everything that
was said, loud and clear.
It had a very impressive program with a
juggler, clowns and a Santa Claus who
said jokes, anecdotes and they did very
impressive things. The most impressive was
the juggler who did a program with fire.
The place was full of kids and parents
who were celebrating around the
dancing floor.
It was a very amazing night which
became more amazing after the gifts.
I wish the next celebration will be
even better and the New Year brings
love, happiness and health to all
the world.
Spiros Motsenigos
ECONOMY CONFERENCE
Aegean Participates
in Economy Conference
Aegean participated in the Hour of the Greek Economy conference held on November 1 and 2 at the
Athens Intercontinental. Prime Minister Costas Karamanlis delivered the keynote address. Finance
Minister George Alogoskoufis, as well as other ministers and businesspeople gave presentations.
Mr. Dimitris Melissanidis participated in the panel and made a presentation.
E
very year, the American-Hellenic Chamber of Commerce
convenes the conference, which
examines economic policy from the
perspective of the private and public
sectors and acts as a forum for dialogue
between government officials and businesspeople. This year’s conference provided a platform for the new government
to present its policies extensively. Topics
included reviews on the telecoms, banking and finance, energy, infrastructure,
regional development, construction, and
transport sectors. Panel discussions,
keynote addresses, and delegate partici-
Prime Minister Costas Karamanlis
Lambros Karagiorgos, Yiorgos Salagoudis, Yiannis Paleokrassas, Timos Christodoulou, Mihalis Karamanis, Dimitris Melissanidis.
Economy Minister George Alogoskoufis
pation made the conference one of the
most dynamic and important events on
Greece’s business calendar.
Prime Minister Costas Karamanlis
presented his government's main policy
positions. He said, “Having taken into
consideration the problems of the past,
but also with a clear vision for contempo-
Deputy Finance Minister Adam Ragouzas
rary Greece, we have formulated a very
coherent strategy based on three pillars:
1. Investment in education and culture,
new technologies, and the human
capital of our country.
2. Transition into a state with increased
capabilities, where the state will be
more effective in its controlling, su-
Development Minister Dimitris Souifas
pervising, and regulating roles. Transition into a state that is close to every
citizen and is an assistant, rather than
a manipulator, of private initiatives.
3. Implementation of a new economic
and developmental policy oriented
toward increased production and its
more just distribution.”
WINTER 2004-05 AEGEAN NEWS 7
FLOWS AND CURRENTS
EU Coast
Guard Proposal
Greece's proposal for the
establishment of a European Coast
Guard to protect the bloc's sea
boundaries was officially unveiled
during an EU Justice and Home
Affairs Ministers' council meeting in
Luxembourg.
In proposing the initiative, Merchant
Marine Minister Manolis
Kefalogiannis noted that illegal
immigration via sea routes
throughout the Mediterranean is a
serious problem, one linked closely
U.S. Oil Reserves
One of the most guarded places in
the United States is a 500-acre
complex that lies in a swamp area
near Freeport, Texas. Armed guards
protect the complex and sport utility
vehicles patrol the perimeter at all times. This area is the U.S. Strategic Petroleum Reserve, one of the world’s largest and most expensive filling stations, where a large portion
of the country’s 700 million barrels of oil is stored in underground salt shafts. Americans
invested 20 billion U.S. dollars to build and stock this reserve and three others like it. The
reserve was created in 1975 in response to the Arab oil embargo. After September 11,
2002, President George Bush decided to fill the reserve to its maximum capacity as an
insurance policy in the event of an oil shock. Since terrorist groups have targeted petroleum infrastructures in Iraq and Saudi Arabia, the issue of ensuring a secure energy supply has taken on special significance. Countries such as Japan, South Korea, Taiwan, and
Germany have also built their own secret reserves. According to experts, Russia, the
largest oil producer, is also considering building its own reserve.
to terrorism, human trafficking, and
other organized crime activities.
The Greek minister agreed with a
proposal made by the Dutch EU
Presidency regarding the need for
more effective cooperation by
Martinou Awarded Distinction
Athena Martinou, founder of ships management company Thenamaris, was named
Greek Shipping Personality of the Year for 2004 at the first Lloyd’s List Greek
Shipping Awards in Athens last November.
member-states in protecting sea
routes so that maritime disasters
involving migrant-laden vessels may
be averted.
Based on the current joint
cooperation by a pair of European
Centers for Maritime Borders, one in
Piraeus and the other in Madrid,
Athens is proposing that other
member-states provide voluntary
operational support, with a view to
holding naval search & rescue
exercises in the Mediterranean.
8 AEGEAN NEWS WINTER 2004-05
Southeast European Energy Council
to be Based in Greece
Development Minister Dimitris Sioufas
announced that the Southeast European
Energy Council will be based in Greece.
The decision was made at an Athens conference that energy officials from 16
countries in the region attended. The
council will devise pricing mechanisms
and take actions to ensure the smooth
functioning of the electricity and natural
gas markets. In addition, an electricity
market growth forum for Southeastern
Europe will be based in Greece. European
Union Energy Commissioner Andris
Piebalgs agreed to the Greek minister’s
proposal for a sector conference, which
will take place in Athens in the spring of
2005. The ministers' meetings aim to
establish a single energy grid in
Southeast Europe that will be linked to
EU networks.
Privileges for
Greek Ships
In 2001, the American Coast Guard adopted Qualship
21, a system of evaluation and the provision of incentives for all foreign flag ships sailing to American
ports. This system was designed to minimize and
gradually abolish low security levels in shipping and
to provide incentives for ships that demonstrate high
security standards. Qualification requirements concern the quality of the shipping companies, the ships,
and the country whose flag they bear. On September
28, 2004, Greek flag ships were awarded the special privileges provided by Qualship 21. These
privileges include a decreased number of inspections and special certification. This, along with
the fact that Greece has been included on the white lists of all existing MOUs, proves the high
quality of the Greek flag.
BurgasAlexandroupolis
Oil Pipeline
The agreement between Greece,
Russia, and Bulgaria regarding
the Burgas-Alexandroupolis oil pipeline
is expected to be signed by Spring 2005,
Deputy Development Minister Giorgos
Salagoudis said. The trilateral agreement
was supposed to have been signed
December 7, 2004, but due to delays
on Russia's part was postponed.
Russia is now expected to pick a new
AEGAEN?
DIDN’T YOU SAY "SOON EVERYWHERE"?
FOR TWO DAYS I'VE BEEN LOOKING
FOR AN AEGEAN STATION.
time and place for signing of
the agreement. According to Deputy
Minister Salagoudis, the delay might be
beneficial for Russia, allowing enough
time for the merger between Gazprom
and Rosneft to be completed and
creating one company that Russia
may promote to take on the role
of project leader.
Retired Seamen
Go Back to Work
Minister of Merchant Marine Mr. Manolis
Kefalogiannis amended a decision concerning the reactivation of retired seamen.
According to the amendments, every retired
seaman who wishes to go back to work must
get a permit from the Ministry’s Employment
Office. Permits will not be issued only the
case where a retired seaman seeks a position for which there is demand from an
active seaman. The permit will be valid for 8
months and will be renewed if the necessary
requirements still apply.
WINTER 2004-05 AEGEAN NEWS 9
R E TA I L
Iakovos Melissanidis
“We Look for Station Owners
and Not for Stations”
A
egean achieved the biggest
sales increase among all fuel
trading companies. The company already controls 360 gas stations
throughout Greece and the construction of 17 new gas stations is underway.
There are currently 32 stations operating under Aegean’s logo in the Attica
region, a number that is expected to
climb to 100 within a two-year period.
Aegean, continuing its impressive
upward course, managed to gain 5% of
fuel sales in the domestic market in the
last five years, and its future prospects
look just as promising.
Aegean’s strategy to develop its gas
station network throughout Greece is
based on three pillars:
1. It chooses partner station owners
based on their reliability and their
consistency in the market.
2. It ensures that its stations’ prices are
competitive by maintaining a low
prices policy for its customers.
3. It offers high-quality products and
services.
During the past year, Aegean invested
five million euros to modernize and expand its stations’ network and renew its
tank-trucks. During 2004 Aegean also
invested in its highly regarded human
workforce. Because Aegean considers its
workforce very important, it hired executives with years of experience in fuel
trading to reinforce this momentum.
Aegean uses the impetus of the last
five years to continue developing and
expanding in order to ensure its sus-
10 AEGEAN NEWS WINTER 2004-05
tained growth. The company’s goal is
to expand its stations’ network to geographical areas where Aegean’s presence is either small or non-existent. As
a result, for the next two years, Aegean
focuses its interest in regions such as
Eipirus, Sterea, Ionian and Aegean Islands, and Crete. Aegean is developing
a very ambitious program for its islands venture, which is to provide its
clients with privately-owned, newlybuilt ships.
In tandem, Aegean is pursuing its
goal of establishing gas stations in
Aegean has one slogan:
“We look for station owners and not for
stations,” emphasizing our persistence
on finding business partners with
healthy attitudes.
strategic Attica locations. Aegean is
willing to invest 12 million Euro in
capital in order to realize its goals over
the next two years.
Besides its people, executives, and
the capital that it spends on investments, Aegean stresses that its partner
gas station owners are the company’s
most important allies in establishing
and expanding Aegean’s retail.
The partner gas station owners are
the ones that have contributed the most
and have done their best to make
Aegean the fastest growing, most dynamic, and most important fuel-trading company that operates with a personable attitude.
Aegean already controls
360 stations throughout
Greece, while the
construction of 17 new gas
stations is underway.
The Fuel Market
During Jan-Sep 2004
BY KONSTANTINOS POURSANIDIS | RETAIL MARKET MANAGER
A
ccording to data recently published by the
Ministry of Development, sales for fuel
trading companies in the domestic market
increased slightly by 1.84% for the 9-month period Jan-Sep 2004, compared with the same period
of the previous year.
The first 10 top companies were responsible for
almost 90% of the total quantity sold in the domestic market.
Aegean’s domestic sales increased by14.78%,
making it the leader in sales increases.
Domestic Market Fuel Sales
9 Months 2004 vs 9 Months 2003
PRODUCT
PERCENTAGE INCREASE/DECREASE
DOMESTIC MARKET
PERCENTAGE INCREASE/DECREASE
AEGEAN
-15.46%
1.76%
UNLEADED PETROL 95
9.87%
44.27%
UNLEADED PETROL 98
17.95%
73.06%
DIESEL ENGINE
0.39%
15.62%
DIESEL HEATING
0.14%
-2.94%
TOTAL FUEL
1.84%
14.78%
SUPER L.R.P.
SOURCE: Ministry of Development
360
stations
in the AEGEAN network
WINTER 2004-05 AEGEAN NEWS 11
S TAT I O N S O F T H E M O N T H
Papathanasiou-Bouroulitis
“Our Lives Changed Within an Hour”
There are moments in our lives when we wish that something would change for the better.
There are people that have actually experienced such a magical moment, when everything
seems to change…
T
wo such people are Aggeliki
Papathanasiou and Athanasios
Bourlitis, professionals with
years of experience in the fuel business.
Four years ago their business reached
a standstill. The company with which
they were cooperating was indifferent,
distant, and cold, as is the case with most
big-name companies. Then, all of a
sudden, everything changed!
Mr. Iakovos Melissanidis visited them
one evening and they discussed their
problems, which were problems common
to most station owners. After an hour of
discussion the two business people made
up their minds concerning their future.
“His simplicity and directness of character made a great impression on us. He
has a way of convincing people,” Ms.
Papathanasiou told Aegean News. The
tangible advantages that the company
offers, the first being highly competitive
prices, played a great role in their deci-
12 AEGEAN NEWS WINTER 2004-05
sion. “We have the lowest prices in the
whole region,” said the station owners
who are now watching their business
grow. Distributed quantities increase
every month and every year. That is
why they decided to establish an installation for providing heating fuel.
There will be more new plans, since
“We have the lowest prices
in the whole region,”
said the station owners
who are now watching
their business grow.
the cooperation is progressing with
benefits to both sides. Papathanasiou
and Bourlitis are now planning on a
second heating fuel unit.
In just one night, the gas station at
the Evosmos turn of the regional Salonica highway changed logos and
adorned itself with Aegean’s blue colors. It was during that night that everything changed for the PapathanasiouBouroulitis couple. The previous company tried to win them back, but the
two of them are very assertive in their
decision. “There is no chance that we’ll
change. We do not have any problems
any more. Why change?”
With Aegean, they found an attitude completely different from that of
the companies they worked with in the
past—companies that would keep their
distance from the station owner and
have an impersonal attitude in their
transactions.
“We now have a unique relationship
with the Aegean people,” remarks Ms.
Papathanasiou. “We are friends, and
we have a sip of wine once in a while
when they visit our area…”
George Zaharoudis
Our Word is Enough
Is there space for sentiment in a professional relationships? Is it possible for two people to
trust each other just by shaking hands? Businessman George Zaharoudis answers in the
affirmative to both questions.
T
he first words of our conversation
with businessman Mr. George
Zaharoudis were rather extraordinary. “We, the people from Northern
Greece, are a sentimental kind,” he said,
and in this one phrase he described his
cooperation with Aegean.
Zaharoudis has been active in the
fuel sector for the past 15 years, a period long enough for him to have
gained knowledge and experience in
all aspects of the market. He started
cooperating with Aegean three years
ago and, contrary to what the case may
be with other owners, he sought contact with the company.
“I heard that there was a new company managed by Pontians. My wife is
of Pontian origin and I am fully aware
of what this means,” he remarked. His
meeting with Iakovos Melissanidis
measured up to his expectations. “After the initial talks, we reached an
agreement and shook hands. Ever since
then we have been faithful to that
agreement in every detail,” he said with
satisfaction. “The company makes it
possible for me to have the lowest
prices in the area and I pay in cash,
just as we agreed.”
This cooperation has had desirable
results. When he was working with the
previous company, Zaharoudis would
distribute 450 cubic meters per month.
With Aegean, Zaharoudis distributes
at least 650 cubic meters per month,
and in periods with increased demand,
such as the summer, distribution has
reached 720 cubic meters for all kinds
of gasoline and motor oil. As a result,
the station on Veria Street in Thessaloniki’s Ionia area is too small for the
traffic that it has acquired following its
incorporation of the Aegean logo.
When asked if he would change his
logo if another company provided him
with a new proposal, Zaharoudis
replied, “No answer.” Then he laughed
and continued, “This is the way people
from Northern Greece react. We agree
on something and our word is enough.
And this is exactly what I found in
Aegean as well.”
WINTER 2004-05 AEGEAN NEWS 13
S H I PPI N G
B U N K E R I N G
Aegean
Environmental
Policy
BY KONSTANTINOS POURSANIDIS
RETAIL MARKET MANAGER
Aegean announces its environmental
policy, which is within the framework of
an environmental management system
and is in accordance with Lloyd’s ISO
14001 certification.
The Aegean Company recognizes fully the great
importance of protecting the environment.
As a result, it has begun operating a registered
system of environmental management, which was
developed according to the company’s needs and
particular characteristics. The system is fully attuned to the requirements of the International
Certificate ISO 14001 and is already being applied
to some of the company’s activities, such as
loading, transport, and storage and fuel
distribution.
Within this particular system of environmental
management, the company’s management
announces that:
◗ It always operates in accordance with existing
environmental legislation and all relevant
regulations.
◗ It reconsiders and revises its environmental
aims and goals by taking a preventive approach
toward environmental management.
◗ It minimizes the possibility of pollution-causing
accidents and is in a position to deal with the
pollution that might result from such accidents.
◗ It provides all company staff, and any third
party that may be interested, with information
relating to the company’s environmental
performance.
◗ It cooperates with providers, associates, and
customers in an effort to increase interest in
environmental protection.
◗ It promotes the proper training of its staff,
so that the staff may adapt its behavior to
the principles of the company’s environmental
policy.
Piraeus, October 25, 2004
14 AEGEAN NEWS WINTER 2004-05
Problems Identified
in Lubricant
Sample Analysis
BY DIMITRIS G. BAKINEZOS | LUBRICANTS MANAGER
I
n one of our previous issues, we dealt with the importance of lubricant
sample analysis for maintaining healthy vessel machinery. In this issue,
having conducted a sample analysis, we outline the most common problems associated with lubricants and their potential causes.
Problem: fuel dilution or low viscosity of lubricant oil
Possible Cause: faulty injection pump, defective injectors or use of lower viscosity oil
Problem: high viscosity of lubricant oil
Possible Cause: excessive oxidation, water contamination, use of higher viscosity oil,
heavy fuel contamination
Problem: high water content
Possible Cause: cooling system leakage, poor crankcase ventilation, faulty purifier
operation (i.e. use of wrong discs)
Problem: excessive oxidation levels
Possible Cause: high engine temperature, piston ring blow-by
Problem: high iron levels
Possible Cause: machinery component wear, metal to metal contact, corrosion
Problem: high sodium levels
Possible Cause: sea water contamination, cooling water contamination
Problem: high vanadium levels
Possible Cause: blow-by of heavy fuel oil, heavy fuel contamination
Problem: high copper levels
Possible Cause: machinery wear, metal to metal contact, corrosion, stuffing box ring
wear, piston wear
Problem: high magnesium levels
Possible Cause: sea water contamination
Problem: presence of strong acids (SAN)
Possible Cause: excessive blow-by, engine temperature too low, leaky turbocharger
seals
Shipping in Numbers
More than
90% of world trade is transported by the in-
ternational shipping industry. Due to increased economic
liberalization and the growing efficiency of shipping as a
mode of transport, the prospects for the further growth of
the industry remain strong.
There are approximately
50,000 merchant ships trad-
ing internationally and carrying all kinds of cargo. The
global fleet is registered in more than
employs more than
150 nations and
1,000,000 seamen of almost
The Top 10 Largest
Shipping Flags
(September 2003 data)
Panama ñ Liberia ñ Bahamas
Greece ñ Malta ñ Cyprus
Singapore ñ Hong Kong
Norway ñ China
Source: Lloyd’s Register Fairplay
every nationality.
The global population of seamen working on merchant
Greek-Owned Fleet
YEAR
NUMBER OF SHIPS
ships that trade internationally is estimated to be
GROSS TONS
DWT
400,000 officers and 825,000 ratings.
1997
3.204
74.982.110
127.782.567
1998
3.358
78.900.843
133.646.832
1999
3.424
83.454.890
139.225.184
2000
3.584
90.227.491
150.966.324
countries are supplying an increasing number of officers.
2001
3.618
100.220.348
168.434.370
Developing countries, the Far East especially, supplies the
2002
3.480
98.195.100
164.613.935
largest number of ratings, and the Philippines provide
2003
3.355
103.807.860
171.593.487
20% of the global maritime work force. China and India
Source: Ministry MM /Statistics
The Top 10 Beneficial Ownership Countries
Deadweight tonnage controlled by parent companies in these
countries, Percentage of world fleet.
19,5%
Japan 13,6%
¡Ôrway 7,6%
China 5,7%
USA 5,5%
Greece
5,3%
Hong Kong 4,9%
Korea Republic 3,3%
Chinese Tapei 2,9%
Singapore 2,5%
Germany
Although OECD countries remain a major source of officers, trends show that the Far East and Eastern European
also provide a significant work force.
Greek Merchant Marine Fleet
YEAR
NUMBER OF SHIPS
GROSS TONS
1997
1.923
25.597.691
1998
1.876
25.689.500
1999
1.849
25.171.034
2000
1.902
26.895.376
2001
1.959
29.257.366
2002
1.965
29.204.859
2003
1.974
31.915.727
Source: Ministry MM /Statistics
(January 2003 data) Source: UNCTAD
WINTER 2004-05 AEGEAN NEWS 15
S H I PPI N G
Technical Department
The Heart of the Shipping Company
Aegean News spoke with the Technical Director of Aegean Shipping Management,
Mr. E. Albertis, about the role and mission of the shipping company’s Technical Department.
A
shipping company “plays” with
a large amount of money every
day for every ship in operation.
It becomes obvious that even a few
hours of delay due to technical problems
can result in huge economic losses. This
is why shipping companies have established technical departments.
What are these departments and
what is the value of their contribution?
According to Technical Director of
Aegean Shipping Management Mr.
E.Albertis, “The Technical Department is the heart of a shipping company.” The department operates with one
basic goal: to maintain the best possible condition of the company’s fleet so
that it can perform its mission with
absolute safety and financially profitable criteria.
According to Albertis, Aegean’s
Technical Department secures the efficient operation of the company’s ships,
the security requirements of the company’s units, and the conditions and requirements that are necessary to meet
the Register’s standards and comply
with international ISPS and ISM regulations. In the case of ship damage or
failure, the Technical Department in-
vestigates and restores the damages.
The Technical Department examines
each case according to its particularities
and makes decisions based on the company’s best interests. Albertis explained
that the department may decide that it
is in the best interest of the company to
send a ship to a low-cost Asiatic ship-
yard for repairs, even though this might
be more time consuming.
The company’s chief engineers and
captains regularly submit reports that
provide a thorough and clear picture of
the ships’ condition. At the same time,
the Technical Department ensures that
all the ships are in excellent condition
during frequent inspections conducted
by International Institutions, the Register, and the freighters.
“It is a fact,” said Albertis, “that
nowadays regulations concerning the
safe operation of ships are very strict,
and there are talks right now for the establishment of an even stricter framework. The Technical Department’s importance and great responsibility have
become even more apparent recently, as
favorable conditions prevail internationally for sea transport. This means
that even one day of immobility creates
great loses for a shipping company.”
“The safety of our crews and ships is
of utmost importance to us,” said Albertis, stressing that the Aegean Shipping Management team works to keep
all ships in top condition so that they
may carry out their mission successfully and at a low cost.
The Technical Department of Aegean secures the proper operation of ships,
the security requirements of the company’s units, and the conditions and requirements
that are necessary to meet the Register’s standards and comply with international
ISPS and ISM regulations.
16 AEGEAN NEWS WINTER 2004-05
Aegean Fleet
Gains More Ships
Aegean Shipping continues its upward course under the general management
of Captain Petros Palaiokrassas.
T
he company’s expansion is progressing with the acquisition of new ships, following detailed market research within the framework of a specific program.
Two new vessels, the double hull Aegean Breeze and Aegean
Tiffany joined the company’s fleet, the first based in Fujairah and the second in Jamaica. Both ships were built in
Chinese shipyards and have a capacity of 2,750 tons each.
Concurrently, the newly acquired Saturnus was renamed
Aegean X. It is a double hull vessel built in Germany and is
to be used as a supplying vessel in Jamaica.
In the middle of December, Aegean acquired the Shannon tanker, a 30,000 DWT ship that is being renamed
Pyrihios. This vessel is being transferred from the Persian
Gulf to the Mediterranean and has already been chartered
for the transportation of oil products from the Gulf to the
Mediterranian. It will be used in the spot market as well.
The company is also set to charter two more “clean products” tankers, 37,500 DWT each, that are currently active
in Mexico and Venezuela.
As Aegean Shipping General Manager Captain P.
Palaeokrassas mentioned, the company is examining several
aframax ships in order to proceed with the purchase of at
least two ships of this type.
Stormy Seas from Greek Veto
Greece’s decision to veto the European
Commission’s legislation regarding sea
protection measures has caused a lot of
turbulence within the Greek shipping
community and the Greek political scene.
The legislation stated that in cases of
serious spills, liabilities will affect every
involved party, including ship owners,
cargo owners, and ship’s registers. The
passing of the legislation requires a
unanimous decision by all country
members. According Minister of Merchant
Marine Manolis Kefalogiannis this
decision would lead to the wasting away
of merchant shipping “as every ship
owner might abandon the European flag
when required, and the workers would be
the ones to pay the consequences.”
Furthermore, according to the Greek
government, Greece already has the
strictest legislative framework among
European country members regarding sea
pollution. Greece's main opposition party,
however, accused the government that its
decision alienates the country and
creates the impression to the
international community that Greece
identifies with all those that pollute
uncontrollably. The opposition also
accused the government of false
pretenses when claiming its actions are
to the interest of seamen, since the only
innovation of the proposed legislation
was the expansion of responsibility on
ship owners, registers and port
authorities.
WINTER 2004-05 AEGEAN NEWS 17
S H I PPI N G
The Port of Piraeus
Passage to a New Era
Minister of Merchant Marine Manolis Kefalogiannis mentioned in one of his recent interviews
that “the ports of Greece are the diamonds of the Greek economy.” The Port of Piraeus is
undoubtedly one of the biggest and most precious of them all, although its glitter has been
tarnished, despite everyone’s intent to help regain it.
18 AEGEAN NEWS WINTER 2004-05
T
he port’s unique strategic position at the crossroads between
east and west as well as its vital
connecting link between the Greek
mainland and the Aegean Islands,
make Piraeus the European Union’s
most important southern sea gateway.
Piraeus is Europe’s biggest port and
the third largest in the world in passenger traffic, with approximately
20,000,000 passengers annually.
The port has 6 passenger terminals,
2 of which are dedicated to international passengers and provide 24-hour
services.
Due to its high volume of commercial activity, the Port of Piraeus is
ranked among the top 50 ports in the
world in container traffic, and among
the largest in the Mediterranean.
During 2003, the transshipment of
goods accounted for 60% of this traffic, amounting to 1,600,000 TEUs of
transported goods. These figures are
indicative of Piraeus’ role as a hub for
the international transport of goods.
The container reception station,
which is a type II Free Zone, is located
in New Ikonion, a short distance form
the city’s center. The station, which has
a total area of 900,000 square meters,
has a deposit space of 626,000 square
meters, piers with an area of 2,200
square meters, and 10 locations for
ships. There is also an unpacking area
that is 19,300 square meters, and a
unit for the repair and maintenance of
technological equipment that has an
area of 5,800 square meters.
The general cargo station and two
installations for the transport of cars
and other vehicles are located in Keratsini. The storage capacity of the installations exceeds 10,000 passenger
car units. Roughly 400,000 cars were
transported during 2003.
Investment Program 2004-2007
Measures are required to reinforce the
port’s infrastructure and upgrade the
installations and the mechanical
equipment if the port is to be successful in handling increased demand, exploiting its strategic position as a hub,
and achieving a larger market share in
the transshipment market to Cyprus,
the Balkans, the Middle East, the
Black Sea, and the Adriatic Sea.
The Port Authority’s investment
program for the period 2004-2007
includes investments in the commercial port’s infrastructure and capital
equipment, construction projects for
the remodeling of the central port, and
other projects that have already been
completed, as they were directly related to the Olympic Games.
The investment program’s main
goal is to continuously improve infrastructure, increase productivity, and
upgrade the port’s services.
In recent years, Piraeus has faced
strong competition from other Mediterranean ports in the container traffic
market.
An increase in international trade
(25% during the first semester of
2004), mostly due to China’s economic development, has resulted in a great
deal of congestion in all Mediterranean commercial ports, including
the Port of Piraeus.
Problem Areas
Structural problems have accumulated
over the years. A lack of investment, old
equipment, and lack of personnel specialization have resulted in an inadequate
quality of services for the port’s users.
The Container Reception Station, which
is the port authority’s main area of activity, has been facing serious operational
problems, such as delays in the flanking,
WINTER 2004-05 AEGEAN NEWS 19
S H I PPI N G
loading and unloading of ships, congestion in the container placing areas, traffic delays, and an increase in waiting time.
These problems have resulted in serious
discontent among domestic trade and
transshipment management. Labor costs
have also sky rocketed due to an increase
in overtime labor.
The Port Authority has ordered 18
container stowage vehicles, some of
which have already been delivered.
During the summer, 10 new trailer
trucks were delivered. New technicians
are expected to join the workforce at
the container terminal following an
ASEP competition.
The Port Authority is also considering extending Pier I and organizing
container stowage more efficiently to
assist in decongesting deposit spaces.
Regarding car transportation, the
20 AEGEAN NEWS WINTER 2004-05
Port Authority’s second largest moneymaking activity, efforts are being made
to secure extra space and improve both
the organizational structure and the
quality of services. The third car terminal is expected to become operational in the first months of 2005,
which will increase capacity by 50%.
All of these investments include
three major components: the space, the
equipment, and the workforce. Regarding the space, plans are underway to demolish buildings and revamp certain
areas with an aim at improving user
services. The transfer of the silo is also
considered an issue of strategic importance. Future plans—possibly within the
next 3 years—include the expanding the
railway network up to the container terminal. Although the warehouse is already computerized, it is imperative that
the car terminal and the entire network
be computerized as well. Regarding the
workforce, the Port Authority places
great importance on the proper training
of its staff and promotes a professional
commitment to improving productivity.
Olympic Games Infrastructure,
Post-Games Usage and Further
Development
The Olympic Games were significant
for the Port of Piraeus, as the completion of major Olympic projects radically changed the port area.
The major Olympic projects:
● 3,000 meters of breakwater walls for
the anchoring of cruise ships, increasing the mooring areas in the
cruise zone to 12.
● Fences and renovated entrance and
exit gates in the cruise zone.
● Two cruise passenger terminals
● Two new buildings housing the fire
brigade and navigation services
● New networks for electricity, water
supply, and sewage
● An optical fiber network for data
transmission
● Landscaping in the Olympic zone
● Remolding of the ancient long walls
● Renovation of the old Royal Pavillion
into an exhibition hall
● A helidrome at the southeastern end
of the Olympic zone
The Piraeus Port Authority considers the efficient use of Olympic infrastructure a matter of utmost importance. Therefore it emphasizes the exploitation of these works and at the
completion of a series of other projects
that will highlight Piraeus’ qualities as
a city-port.
● Regarding the cruise zone, the Port
Authority hopes to attract cruise ships
carrying first-class passengers that
will stay in Piraeus for a much longer
period of time.
● There are plans to upgrade the Exhibition Center so that it may attract more
exhibitions, besides Defendory International and Poseidonia.
● The Port Authority is investigating the
possibility of building a hotel complex
in the space available in the Olympic
zone. There are legal implications, however, since the space is located within
the port zone.
● A two-storey underground garage with
a capacity of 750 cars in the Exhibition Center vicinity is due for completion during the first months of 2005.
The Port Authority’s future plans
include a new perspective on its rela-
tions with the local residents of Piraeus. Port activities have an undeniable impact on the citizens’ quality of
life. In order to secure and safeguard
its good relations with local residents,
the Port authority plans to contribute,
through its development plans, to the
natural and social environment of Piraeus, and especially the central port.
The economic development of the area
will be a natural consequence of these
development plans.
A new era has begun for the Port of
Piraeus. The foundations have been laid.
This effort is in the best interest of the
port, the city, the Greek tourism industry, and the national economy. According to the Port Authority’s CEO Dr.
Nikos Yiannis, the successful completion of this effort will “raise the flag of
quality at the Port of Piraeus.”
Piraeus Port
Authority
The Piraeus Port Authority, the company
managing the port, has a labor force of
1,700 employees, and the number of direct
or indirect transacting users exceeds
20,000. Benefiting from several years of
sustained growth, the company became a
Limited Liability Company in 1999 and was
listed on the Athens Stock Exchange in
August of 2003.
WINTER 2004-05 AEGEAN NEWS 21
I N TE RV I E W
ªinister Kefalogiannis
Upgrading Piraeus a Main Goal
The Greek government places great importance on the development of shipping and
the transformation of Piraeus into a competitive Mediterranean port. Together with
tourism, shipping is considered one of the major components of the Greek economy’s
developmental course.
iven the favorable circumstances in international sea
transport, shipping exchange income into Greece
reached record levels and contributed to the significant increase of the Gross National Product in 2004.
Greek shipping’s leading role in international markets
makes the upgrading of Piraeus, the country’s biggest port,
imperative if it is to provide competitive services. The Minister of Merchant Marine Mr. Manolis Kefalogiannis has
often stressed the need to transform Piraeus into an international shipping center with competitive advantages aimed
at furthering economic development and reinforcing the position of Greek Shipping on the international scene. “Our
goal is not only to have a shipping industry with a past and a
present, but a promising future as well,” said the Minister,
adding that the shipping sector has a top position on the
government’s priority list.
G
“We wish Piraeus and the wider Attica region
to become a shipping services center.”
According to data from the Bank of Greece, in the 10month period January-October, shipping activities alone
brought an income of approximately 10.95 billion Euros into the country and the economy exchange, while for the
whole year mild estimates see this amount reaching 12 billion Euros. As Mr. Kefalogiannis mentioned in his speech to
Parliament, Greek-owned ships are responsible for 90% of
sea transport in the European Union.
These figures prove that Greek shipping is one of the
most competitive sectors in the domestic economy and
maintains a very strong position at the international level.
Unfortunately, the same cannot be said for Piraeus. In recent years, when compared with other ports in the region
and the wider Mediterranean area, Piraeus has lost ground
22 AEGEAN NEWS WINTER 2004-05
“The strategic goal of Piraeus’
development into a big shipping center
worthy of its tradition and its history may
become realistic and achievable.”
on international listings. “One of our goals is to attract shipping capital to Piraeus,” said the Minister. “We wish Piraeus
and the wider Attica region to become a shipping services
center. We are proceeding with a series of institutional
measures, such as marine courts, insurance, and arbitration.
We wish to bring a whole set of activities to Piraeus,” said
Minister Kefalogiannis. The relevant departments of the
Ministry notice a positive trend toward this direction as well,
as the Minister reaffirms the government’s willingness to
support this move with a series of measures and incentives,
and especially “through an atmosphere of trust.”
“The strategic goal of Piraeus’ development into a big
shipping center worthy of its tradition and its history may
become realistic and achievable,” said the political supervisor of the Ministry of Merchant Marine. At a conference
held recently, Mr. Kefalogiannis remarked that “historically,
Piraeus, the big port, is, in the conscience of all Greeks,
tightly related to the sea.”
“When talking to people from Piraeus, I really enjoy
hearing them refer to the Ministry of Merchant Marine with
the term ‘our Ministry.’ My satisfaction, at the same time,
denotes the extent of the Ministry’s obligations towards the
development of Piraeus,” said the Minister.
The Greek government has made it one of its primary
goals to set off the value added to the Greek economy from
shipping activities. This goal, according to Mr. Kefalogiannis, is linked primarily to the transformation of Piraeus into
“Our goal is not only to have a shipping
industry with a past and a present,
but a promising future as well.”
● Reinforcing and supporting the activities of shipping
one of the Mediterranean’s most significant shipping centers. The Minister also announced a series of measures currently under consideration that are designed to further reinforce the shipping activities of interest to Greece. These
measures include:
● Reinforcing the role of Greek insurance companies in
covering marine-related risks.
● Encouraging Greek ship owners to establish an insurance
institution (P&I Club), which is expected to increase the
attractiveness of related shipping activities.
companies (According to the Ministry, this is a matter of
utmost importance and is under continuous observation.)
● Establishing marine arbitration and an institution of marine courts in Piraeus, where marine issues will be tried
by specialized judges.
The leadership of the Ministry is also examining a proposal from the city’s chamber institutions for the establishment of a shipping stock market that would have its headquarters in Piraeus and eventually could become an international shipping and Finance Center.
Representatives from shipping institutions and other sectors that are directly or indirectly related to shipping consider the revamping of Piraeus, with the development of
supportive services for the shipping industry and improved
infrastructure over all, an absolute prerequisite for increasing the competitiveness of the largest port in the country. To
attract investment capital to Piraeus, a series of interventions aimed at establishing the proper conditions and specific incentives are necessary.
Minister Kefalogiannis and his staff are examining a variety of ideas, observations, and proposals that have been
submitted by entrepreneurs during recent meetings and are
expected to announce a series of measures very soon. The
goal of these measures will be to modernize Piraeus so that,
as Minister Kefalogiannis mentioned, the city and shipping
in general will have not only a past and a present, but a
bright future as well.
Minister Kefalogiannis and his staff are examining a variety of ideas, observations, and
proposals that have been submitted by entrepreneurs during recent meetings and are
expected to announce a series of measures very soon.
WINTER 2004-05 AEGEAN NEWS 23
SHIPPING
The China Syndrome
China’s rapid economic growth spurs the development of the international shipping
industry and China has become the driving force behind growth in the three major
sectors of international shipping: container traffic, dry bulk cargo, and the transport
of oil products.
D
uring 1978-2003 China was
the most economically dynamic country in the world
with an annual growth rate of 9.4%.
According to I.M.F data, China contributed 12.7% to global economic
growth in 2003, making it second only to the U.S. With a total income from
external trade of 850 billion U.S. dollars, China is 3rd in world exports. The
country’s market share in global trade
was approximately 5%.
The anticipated consequence of China’s fast paced development is its everincreasing need for resources. As a result, China has become the biggest im-
24 AEGEAN NEWS WINTER 2004-05
porter of raw materials in the global
market. In 2003, China was second to
the U.S. in oil consumption and the 6th
largest importer of oil worldwide, importing 136 million tons or 8% of
world’s oil transported by sea. During
the same year, China imported 163
million tons of iron ore, surpassing
Japan for first place. According to estimates, China, contributed approximately 70% to the global increase in international dry bulk cargo volume in 2003.
Shipping, Ports, Shipbuilding
Industry
While China’s economic and trade development has greatly influenced shipping and the global economy, it is also
promoted the development of the country’s own shipping, port, and shipbuilding
industries. China is already recognized as
a shipping superpower. Its oceangoing fleet
has a total capacity of 37 million DWT,
boosting China’s rank from 12th place
worldwide in 1978 to 4th place today.
China’s rapidly growing economy is a driving force behind
global shipping market growth.
China has made remarkable progress
in container handling capability and
cargo flow, reflecting significant development in its port industry. Many new
wharves have been built, more than
140 of which handle external trade.
The cargo throughput of China’s ports
reached 1,980 million tons in 2003.
China’s shipbuilding industry has also made remarkable progress. For 9
consecutive years, China has been the
third largest ship producer in the world.
Shanghai and the Yangtze
River Delta
Shanghai and the Yangtze River Delta
is a region that is attracting international attention. In 2002 the Yangtze
River Delta produced 18.5% of China’s GDP, 22% of its income, and
28.4% of the country’s total export
volume. Increased cargo flow is attributed to the internationalization of
the country’s ports and economy. Due
to their prime location, Shanghai and
the Yangtze River Delta have become
one of the most developed shipping
areas, providing China with important
access to the outside world. The main
ports in the area (Shanghai, Ningbo,
Zhousan, Nantong) achieved a cargo
throughput of 1020 million tons in
2003. The port of Shanghai is currently the third largest container port
in the world.
The shipbuilding industry in the
region is also progressing rapidly. In
2003, the shipbuilding output of the
municipality of Shanghai and the
Jiangsu and Zhejiang provinces constituted 58.4% of China’s shipbuilding
output, 3.74 million DWT. It is estimated that by 2015 Shanghai and the
Yangtze River Delta will become the
world’s shipbuilding center.
Greek Shipping Industry
China’s rapid development has directly
affected Greek shipping. Ships from
Shenzhen
The fishing villages
that became
first class ports
Only 10 years ago there were small
fishing villages in the area that is now
6th in city-port activities in the world.
The ports of Shenzhen did not exist 10
years ago. Today Shenzhen and the
adjacent city of Hong Kong constitute the
largest complex of shipyards in the world.
These shipyards, made of cement and
steel, are the best proof of the speed
with which China is emerging as a Titan
of free trade.
every corner of the world carry to the
Chinese coastline the huge quantities
of raw materials necessary to support
this dynamic development. Irrespective
of the cargo’s origin—most of it comes
from South America—the majority of
the transporting ships are Greek.
Greek ship owners that would usually wait to buy ships when the market is
low have been rushing to add new ships
to their fleet. The demand is so huge
that the new ships will not be delivered
for five years. Although there is always a
risk that the market will crash if too
many ships are built, analysts forecast
that this growth will be sustained for a
considerable number of years.
China: Threat and Opportunity
Ship management during the 80’s and
90’s was mostly centered in Europe.
The current period shows a shift of focus to Asia as the major source of shipping development and cost competitive advantages. The Chinese economy will play a leading role in global
shipping, and its shipping companies
will present too great a challenge for
the shipping industry’s existing infrastructure. Western international companies consider this an opportunity
and a threat at the same time.
The opportunity lies in the fact that
China’s new market, with new customers, will eventually enter the international market. China’s new market
also holds great potential for increased
competitive advantages.
The threat lies in the fact that China is already a well-placed and rapidly developing source of new specialization in ship management.
According to special analysts, in
order to exploit the potential opportunities and minimize the potential
threats, western ship administrators
will have to follow a course of cooperation with their Chinese counterparts
and help them to develop further.
WINTER 2004-05 AEGEAN NEWS 25
S H I PPI N G
Ministry of Merchant Marine
Since the fall of the Byzantine Empire, the sea has presented an outlet for the restless Greek
spirit and allowed the nation to survive, build an economy, and establish a great fleet of ships.
The Ministry’s responsibilities are
Yesterday
During the years of Ottoman rule, the
Greeks managed to maintain operation
of their ports, registry of their ships, and
records of ship movement and cargo
flows. The coordinators of this process
were chosen or elected and formed the
basis for the establishment of a special
legislative and administrative control
unit of merchant shipping, upon which
the Greek state was founded.
Merchant Marine legislation was established almost simultaneously with
the new Greek state, and the first Merchant Marine organization was founded in 1834. In 1861, Merchant Marine
Captain Gerasimos Zohios organized
the Seamen Pensioners Fund (NAT), a
social security protection institution for
seamen, which was thereafter supervised by the Maritime Secretariat. At
the same time, Konstantinos Kanaris
founded the Ministry of Seafarers.
Supervised by the Minister of Seafarers, the Hellenic Coast Guard was
founded in 1919 under Law 1753, and
was assigned the responsibility of
Merchant Marine control. The Coast
Guard, as we know it today, took its final shape after 1925, when the General Merchant Marine Division was
reestablished in the Ministry of Sea-
26 AEGEAN NEWS WINTER 2004-05
farers. Just before World War II, the
Hellenic Coast Guard organized the
ports and the port authority operation
systems that are still in place. In 1945,
the Ministry of Merchant Marine
transferred to Piraeus.
Today
Today, the Ministry is responsible for a
large number of public and regional
services and collaborates with international organizations as well as Greece’s
public and social systems.
Maritime Policy
Greek maritime policy is based on
three basic principles:
● A consistent institutional framework
● Free and legitimate competition and
the abolition of all protective measures
that distort it
● Cooperation between the state, the ship
owners, and the seamen
These principles are expressed in
legally binding terms in the most favored
nation clause and the national treatment
clause and aim to abolish discrimination
on the basis of a ship’s flag.
Greece strongly opposes restraining
practices that are expressed through
the one-sided measures that certain
To attend to:
ß The organization, improvement, protection
and development of shipping
ß Shipping’s connection to the national economy
ß The support of sea tourism
ß The servicing of sea transportation
ß The protection of human life and property
at sea
ß Navigation safety
ß The implementation of shipping policy
To organize and supervise:
ß Marine training
ß Matters of marine labor
ß The structure and administration of organizations and insurance institutions
ß The administration, operation, and exploitation
of the country’s ports and the management of
the navigation service
ß The police inspection of ships, ports, and sea
borders according to Greek legislation and
international agreements.
countries take to deal with the problems of their shipping industries, be
they loans with preferential terms or
loan guarantees. Greece firmly believes that shipping, due to its international nature, requires internationally
recognized rules that are implemented
the same way everywhere.
The ministry also recognizes that a
large and competitive fleet with stateof-the-art technological equipment is a
prerequisite for the advancement of the
Greek seaman. Such a fleet cannot operate if the seamen are not competent
and efficiently trained. For this reason,
three-way cooperation between the
state, the ship owners, and the seamen is
a prerequisite for any development initiative in the shipping sector.
MARITIME TRADITION
Nikos Kavvadias, Poet of the Sea
Always the perfect unworthy lover
Of the endless voyage and azure ocean
N
ikos Kavvadias turned his life at
sea into poetry. Born to Greek
parents in a small Mantzurian
town in 1910, Kavvadias came to Greece
at a very young age. In 1921 he settled
in Piraeus, where he started writing poems in primary school. Having spent his
childhood in this port city, Kavvadias
was destined to have an intense relationship with the sea.
His first experience in shipping was
in 1929, when he got a job as a clerk in
a shipping office. Land could not hold
him for long; he embarked on a cargo
ship a few months later. In 1939, after
years of traveling, he decided to get his
wireless operator’s license. World War
II put an abrupt end to his new career,
however, and Kavvadias started traveling again in 1944.
Kavvadias found the sea an ideal
environment for his artistic expression.
Kavvadias could transform
external observations into
internal drama.
KURO SIWO
That first trip - a southern freight, by chance no sleep, malaria, difficult watches.
Strangely deceptive, the lights of the Indies they say you don't see them at a first glance.
Beyond Adam's bridge, you took on freight
in South China - soya, sacks by the thousand,
and couldn't get out of your mind for a second
what they'd told you in Athens one wasted night.
The tar gets under your nails, and burns;
the fish-oil stinks on your clothes for years,
and her words keep ringing still in your ears:
"Is it the ship or the compass that turns?"
You altered course when the weather turned,
but the sea bore a grudge and exacted its cost.
Tonight my two caged parrots were lost,
and the ape I'd had such trouble to train.
The ship! - it wipes out all our chances.
The Kuro Siwo crushed us under its heel,
but you're still watching, over the wheel,
how, point by point, the compass dances.
(Translation by Gail Holst Warhaft,
Collected Poems of Nikos Kavadias, Amsterdam 1987)
The freedom of traveling over new
horizons and the hard daily routine of
a sailor’s life mark his entire work.
Kavvadias had the capacity to transform external observations into internal drama that was often characterized
by a deeply existential wandering. This
is why several critics describe him as “a
poet of internal exile” and recognize
in his poetry a journey from the open
seascape into the confined and dimly
lit realm of conscience.
Nikos Kavvadias retired from his
life at sea in November of 1974. He
died three months later.
Kavvadias left behind only three
collections of poems, one novel and
three short stories. Only after his death,
when some of his poems were set to
music, did Kavvadias become known to
the Greek public.
And I, who longed to be buried one day
In some deep sea of the distant Indies
Shall come to a dull and common death
Shall go to a grave like the graves of so
many.
(MAL DU DEPART, translated by Simon Darragh,
Selected Poems of Nikos Kavvadias, 1998)
WINTER 2004-05 AEGEAN NEWS 27
RO OTS
Ancient Symposia
Symposia, the main social
gatherings that started
taking place in the homes
of the wealthy during the 5th
Century, were occasions for
spiritual agitation and the
exchange of ideas.
The Arrangement
The Festivities
A Symposium usually started early in
the evening and lasted all night. Guests
took their positions on soft couch beds
that were placed in a ¶ shape and ate lying down, leaning on their left elbow and
taking the food with their right hand.
Depending on the bed’s length and
the number of guests, two or three persons usually lay on each bed in diagonal position, so that the whole body
could fit on the bed. Seating was
arranged according to rank, with the
person seated to the right having an
inferior rank to that of the guest placed
at his left. The seating was of great importance, and the ancient host was
many times faced with the same problems a contemporary host faces regarding seating arrangements. The bed
at the rear left was usually reserved for
the host. This seating arrangement was
designed so that the guests could make
eye contact while having a general discussion. Small tables with food and
bread were placed in front of each bed.
Craters and other drinking utensils
manned by servants were placed in the
empty area within the ¶.
The Symposium consisted of two independent activities, the dinner and the
drinking. The dinner was secondary,
did not last long, and took place without discussion. Immediately after dinner, the tables were removed and the
floors were cleaned in preparation for
the drinking. The servants would offer
the guests some water to cleanse their
hands and then the drinking would
commence.
In the beginning, the guests drank a
little undiluted wine in honor of the
gods. Then they were crowned with
wreaths that not only had a decorative
character, but also placed the person
wearing them under the protection of
the gods. Before the drinking continued,
the guests would sing hymns to the gods.
28 AEGEAN NEWS WINTER 2004-05
The wine was mixed with water in a
big crater and it was passed around in
a single glass from left to right. How
much and when each guest would
drink was decided upon either through
common agreement or by an elected
Symposium master. If a Symposium
Master was elected, everyone had to
comply with his wishes. Usually, the
strongest drinker was elected, but
sometimes the drunkest guest would
elect himself, a practice strongly condemned by Plato (Law 640d), as the
drunken guest’s demands were usually
outrageous—inebriated Alkiviades
commanded everyone to drink from
the crater. Later, this practice became
obsolete and each guest was free to
drink as much and as often as he desired.
If a Symposium Master was elected, everyone had
to comply with his wishes. Usually, the strongest drinker
was elected, but sometimes the drunkest guest would
elect himself. Later, this practice became obsolete
and each guest was free to drink as much and as often
as he desired.
ATH L E T I CS
Soccer: The First Kick Off
Soccer, dear to young and old alike across the globe, is considered the "king of sports," and
archeological excavations have brought to light evidence that thousands of years ago, people
would gather around to kick some kind of ball.
Asia
One form of the game, Tsutsu, which first appeared in a
martial arts manual of China’s Han Dynasty, dates back
to the 3rd and 2nd centuries
B.C. This game was played
with a leather ball that was
stuffed with hair and feathers
and was kicked through a
small opening 30-40 centimeters wide into a net held
open by bamboo sticks. The
player was not allowed to aim
directly at the target, but had
to confront his opponents’ attacks by using his feet, shoulders, and
back. The use of hands was prohibited.
Japanese Kemari is a variation of
the game that originated in the Far
East 500-600 years later and is still
played today. This circular game, less
spectacular and more ritualistic in nature compared to its Chinese counterpart, did not include confrontation for
acquisition of the ball. Players simply
passed the ball from one teammate to
another in a prescribed area while trying to keep it from touching the ground.
Julius Caesar used
Harpastrum to maintain
the good physical condition
of his troops.
that during fertility ceremonies in ancient Egypt, balls filled with seeds and
covered in multicolored cloth were
thrown out into fields.
The Mediterranean
Africa
Archaeological findings from Egyptian tombs dating back to 2500 B.C.
prove the existence of a game with a
ball in the region. These balls were
made out of animal intestines and tendons and were covered with deer
leather. Not much is known about the
Egyptian game, but historians believe
Around 2000 B.C, the Greeks developed a ball game called Episkyros. In
the Archaeological Museum of Athens
there is a relief of a naked man bouncing the ball on his thigh in front of a
young boy. This image adorns the European Cup trophy today. The word
Episkyros means the game played on
skyros (gravel). Until a few years ago,
football was sometimes played
on gravel. There were two
teams with 12 players on each
team. After going to the middle line of the field, the players
would set down the ball. Originally, the ball was made out
of a pig’s bladder and was
covered by deer or pig leather,
but later it was stuffed with
sand. Two lines behind each
team acted as goal posts, and
the object of the game was to
throw the ball behind the other team’s line. Palyvos was a
famous ball maker of the time,
and Aristonikos from Karystos and
Demoteles from Kos were two famous
ancient Greek players.
The Romans later adopted the game
Episkyros and renamed it Harpastrum.
Harpastrum, which means game with
small ball, was very popular for about
700-800 years. Five to twelve players
played the game with a small hard ball
on a rectangular field that was divided
in half by a middle line. Each team
tried to keep the ball for as long as possible on its own half of the field. Historians believe that Julius Caesar used
Harpastrum to keep his troops in good
physical condition. Although the Romans brought the game to England,
Harpastrum is not considered the predecessor of contemporary soccer.
Harpastrum had an influence on soccer,
but the real foundations for the development of the game as we know it today
were set in England and Scotland.
WINTER 2004-05 AEGEAN NEWS 29
T RAV E L
Pelion
The Mountain of the Centaurs
All who have visited Pelion and have tried to describe the
experience come to the same conclusion: “You cannot describe
Pelion with words, you simply feel and sense it, as there are no
words to describe beauty.”
W
ith its ravines, deeply shadowed forests of beech and
chestnut trees, wild vegetation stretching down the beautiful Aegean
beaches, fountains, unique village architecture, fish taverns at Pagasitikos Bay,
snow center at Agriolefkes, and rich
mythology and cultural tradition, Pelion
is a destination for all seasons of the year.
Pelion is the homeland of the Centaurs, the mythical half man, half horse
creatures, as well as of Asklepios and Jason, whose name means the one that
heals. Heiron, considered by Homer to
be the most righteous of the Centaurs,
taught Achilles and Asclepios how to cure
all illnesses by using a variety of herbs.
The herbal wealth of the region is well
known, since from antiquity to today approximately 3/5 of the world’s therapeutic herbs grow there.
Pelion Villages
Architecturally unique villages are situated in an area of thick forests verdant
with polymorphous flora and flowing
water. Out of the 24 villages, visitors prefer to visit Makrynitsa and Portaria in
the winter time.
Makrynitsa, also called “the balcony
of Pelion,” is one of the most traditional
villages with houses that “hang” over
30 AEGEAN NEWS WINTER 2004-05
green or snow covered slopes. In one of
the local kafeneia, we can admire a wall
painting of Theofilos, the great popular
painter that settled in Volos in 1927. Traditional fountains that provide a constant
flow of water are interspersed among the
stone-paved streets of Makrynitsa. The
small stone-built church of St. John the
Baptist located in the village square provides visitors with an exquisite example
of traditional Pelian architecture.
Portaria is an important commercial
center, with neoclassical traditional houses, many of which are used as guest
houses. Among the most picturesque
spots to visit are Mother’s Fountain, which
is found in a paved square surrounded
by plane trees and fountains, Taxiarches Square, where you can light a candle
in the small church by the same name
and enjoy a picturesque view of Volos
and Pagasitikos, the small natural water
falls of Karavos, where you can have a
cup of coffee at a small café and see the
village from above, and the main square
of Portaria, which is surrounded by hotels and tavernas.
Portaria is the ideal place for peripatetic tourism, as the visitors can follow the many stone-paved paths and
routes to traditional buildings and
monasteries, stone fountains, and old
churches of historical importance. The
two most famous paths include the path
of the Centaurs, which takes you on a
route by Mother’s Fountain, and the path
of Jason, which originates in Alli Meria
and ends near Hania.
Hania is a small village located in the
middle of a beech tree forest about 1,200
meters above sea level. Two kilometers
from the village, the Agriolefkes ski center, one of the first ski centers in Greece,
is located at a height of 1,471 meters.
Skiing down the slopes, ski lovers will
have a chance to admire Pagasitikos Bay
to their left and the Aegean Sea to their
right. Indicative of the multi-faceted
beauty that such a visit entails, the ski
resort is the perfect way to end a visit to
Pelion. Pelion’s snow covered mountain
tops and deep blue sea inspire a journey
between earth and sky that will fill the
visitor with an irresistible desire to come
back and see more.
Useful Information
By train from Athens: 4 hrs 30min
By train from Thessaloniki: 3 hrs
√SE Volos
∆el: 24210 28555
∆axi Volos
∆el: 24210 52222
∆ourist Police
∆el: 24210 72420
Ski Center
∆el: 24280 73719, 73702
TH E
A EG E A N
I M AG E
Products that say
“We ‘re different”
Aegean is proud of the contemporary image of its petrol
stations. Station personnel enhance the “Aegean Look”
through clothing and products that reflect a commitment
to quality and customer service.
WINTER 2004-05 AEGEAN NEWS 31
Aegean
AEGEAN is a diverse group of companies active in the energy and shipping industries and is committed to providing its clients with the best
products, services, and solutions to meet their needs. The AEGEAN
group markets fuels and lubricants in the bunkering and retail sectors, is a leader in top-quality bunkering services, provides
marine transport through its fleet of 30 tankers, and offers 24/7 shipping services to trusted clients throughout the world.
SERVICE AND PRICE
AEGEAN is committed to providing its customers
with unmatched services at the most competitive prices. It has grown in just over a decade
into a dynamic force in the industry and from
its headquarters in Piraeus, Greece AEGEAN directs its domestic and international operations.
The company is privately held and 100% Greek owned.
A DYNAMIC GROWTH STRATEGY
Through a strategy of responding to market needs,
AEGEAN has successfully grown to be an industry
leader that is committed to excellence in customer
satisfaction, environmental awareness, and overall quality. The company is ISO 9002 accredited,
its ships meet ISM standards, and AEGEAN's
bunkering operations are on the top of the FOBAS
White List. AEGEAN employs more than 1,000
professionals who are the foundation of the company's success. In 2004, turnover reached $1.5
billion. In addition to its headquarters in Piraeus,
the company has offices in Thessaloniki, Greece and
an international presence in the United Arab Emirates,
Venezuela, Russia, Bulgaria, Gibraltar, and the United States.
FULLY-EQUIPPED FACILITIES
AEGEAN has two fully equipped depots to handle its fuel needs. The
depot in Alexandroupolis serves clients and customers in northern
Greece and southeast Europe. The company's depot in Aspropyrgos
serves southern Greece and the important port of Piraeus.
www.aegeanoil.gr