SMM news
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SMM news
SMM news shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 | No 1 2011 Technology fends off pirates Banks are finally willing to provide more capital for new ships. Alternative financing models are gaining in importance. Today’s maritime security threats cannot be addressed effectively without coordinating civilian security and military defence activities. The MS&D international conference and exhibition on maritime security and defence Hamburg will provide an ideal platform for promoting these efforts. Photo: Baycrest External finance: Beijing’s China Development Bank is shopping in Europe. No doubt, the general morale is improving: “We are ready to do business once again,” says Dr Holger Janssen, head of the ship finance department at UniCredit. But the times of aggressive financing structures in shipping with redemption-free years or equity pre-financing in return for placement guarantees are over. One thing is for certain: “While you will always find financing for good business, ship-owning companies must have much more capital of their own to show today than before the crisis,” says expert Max Johns (refer to interview). Not only have the banks become more cautious, but the tighter regulation of the finance sector (Basel II/III) is an additional limiting factor for lenders in ship financing. to be the preferred financing method. Investors still have not fully overcome the past market turmoil and are shunning the entrepreneurial risk inherent in ship investment – another reason for shipowners to look for alternative sources of equity and be more accessible for the capital market. “Private placements will increase in number,” says Hamburg-based finance expert Albrecht Gundermann. According to reports, HapagLloyd, for example, has recently teamed up with Onyx, a government-owned investor from the Sultanate of Oman. Then there is always the option for large container shipping companies to go public. Out of 44 shipping companies listed on the New York City Stock Exchange, no more than four are container-only. Experts believe there is much more potential. More money from the Far East Increased capital requirements due to larger ship sizes as well as tougher regulation of the banking sector will reinforce the trend towards syndicated loans, thereby spreading the risks and internationalising the financing schemes. “We expect Asian banks in particular to gain in importance for the ship finance market,” says Ralf Bredranowsky, Global Co-Head of DB Shipping. China Development Bank’s tie-up with German ship finance bank HSH Nordbank supports that notion although experts caution not to expect an inrush of foreign capital from the Far East for the European shipping industry. The market is still good for many surprises and it supplies a host of discussion topics for the 4th SMM Ship Finance Forum to be held on September 3rd, one day prior to SMM 2012 in Hamburg. In Germany, where about one third of the global containership fleet is financed, the traditional “KG model” will likely continue You can always get financing for a sound project Are there any alternatives to the KG model? There are several alternatives on the international market but not all of them are entirely suitable for the German market. For example, private placements have become more popular again recently. It remains to be seen whether more German shipping companies will choose to go public. This would allow them to make much better use of the bond market than before. Do you anticipate an increasing involvement of Chinese banks, and if so, in what form? We are not expecting a sudden shift of ship finance to Asian banks. Of course, banks, and in particular, Chinese banks will intensify their involvement in syndicated financing arrangements. There is nothing abnormal about that; rather, it is appropriate considering the role Asia is playing in the shipping and financial markets. German ship-owning companies, however, are typi- cally medium-sized businesses with very close ties to their respective banks. Many crisis-related issues have been resolved successfully because of that. It is important to maintain these close relationships. N early 1,200 seamen were kidnapped during the year 2010. The constant threat of pirate attacks, carried out with increasingly sophisticated equipment and growing brutality, especially off the coast of Somalia and in the Indian Ocean, has made security a major concern of international shipping. High-level event Piracy will be among the top items on the agenda of this year’s international conference and exhibition on maritime security and defence (MS&D) in Hamburg from 15 to 17 June 2011. The MS&D offers a unique forum for decision makers and high-level experts from all over the world to present new technologies and discuss current security issues at the concurrent international conference. With a festive opening ceremony, a reception and an official dinner, the special events programme will provide plenty of networking opportunities. The panel sessions on defence and security topics will feature delegations of distinguished international experts. For program information and to register please visit www.msd-hamburg.com Infrared cameras capable of sensing the presence of pirates at any time of day or night, ultrasonic guns for fending off attackers on skiffs, improved equipment for onboard shelters – shipowning companies are investing heavily to better protect their ships and crews. PITAS (Pirate and Terrorist Aversion System), a cooperative project under the auspices of navigation specialist Raytheon Anschütz, relies on early warning systems, evasion manoeuvres and de-escalation strategies. The British armaments group BAE Systems recently presented the prototype of a laser gun that could be installed on board any merchant ship to blind attackers up to two kilometres away to prevent a gunfire attack. But ultimately the best choice is to leave matters to the maritime security professionals: “Protecting sea routes, carrying out reconnaissance operations, defending ships against piracy and policing sea areas far away from their home waters has become daily routine for naval forces,” says Ulrich Otto, Chairman of the MS&D Conference Defence Panel. The retired Rear Admiral was Director of the Naval Bureau of the German Navy until 2008. Navies of several countries have been providing assistance during the North African crisis. The naval units deployed under the Atalanta mandate have succeeded in protecting ships against pirates and in freeing kidnapped vessels on numerous occasions. As the example of piracy shows, civilian security and military defence forces join hands in an increasing number of situations. This is reflected in the agenda of the MS&D convention, which also touches subjects such as the fight against smug- gling and terrorism, protection of the environment and port security. Operating over an extended period of time with limited resources far away from the home port places high demands on naval logistics and requires new strategies, modular structures and innovative engineering solutions. This year’s focus of the concurrent MS&D trade fair is on unmanned systems. Specialised ships also play an ever more important role in this scenario. Under the Joint High Speed Vessel (JHSV) programme, Austal is now building five multipurpose catamarans that will be used by the U.S. Navy for troop transportation in coastal waters. These fast ships are 103 m in length and will do more than 35 knots. The first one will be delivered at the end of this year. Its four 9,100-kW engines are supplied by German manufacturer MTU. lenght < 290 m | draft < 12 m | < 4,000 TEU 1988–2000 | 4th generation Post-Panamax length < 305 m | draft < 13 m | < 5,000 TEU 2000–2005 | 5th generation Post-Panamax Plus length < 335 m | draft < 14 m | < 8,000 TEU 2006 – | 5th generation new Panamax length < 397 m | draft < 15.5 m | < 14,500 TEU In September 2005, ship classification society Germanischer Lloyd presented a design study developed jointly with Hyundai Heavy Industries for a ship type with a capacity of 13,000 standard containers, which sounded pretty daring in the days of the 9,200-TEU MSC Pamela. Barely a year later, Emma Maersk and her seven sisters outperformed that design by far, taking on as many as 14,700 containers at a hull length of nearly 400m. This is the current standard for large containerships. In 2010 German shipping company Claus-Peter Offen, one of the largest ship charterers, commissioned the first four of a series of nine 14,000-TEU freighters, each 365.5 m in length. smm-hamburg.com Please contact: Travel agency Rauther Ulrike Thomsen Phone: +49 40 724161–70 Fax: +49 40 724161–69 E-mail: hamburg-messe@rauther.de As the large industrialised nations are cutting their military budgets, shipbuilders and their suppliers are hoping for orders from the navies of newly industrialised countries (NIC). China has announced a 12.7% increase of its military spending. As of 2016, several Brazilian-built Scorpèneclass submarines are to be delivered to the Brazilian navy. India is constructing naval ships under licence from French and Spanish shipyards. A selection of services offered is given at: www.rauther.de/fair/smm MS&D 2011 with online tickets W ith roughly 3,000 visitors, the SMM India has clearly established itself as a leading maritime industry fair on the subcontinent. “We have been able to bring the leading brands of the maritime industry to India,” said Peter Bergleiter, Project Director SMM. In his opening keynote address, Secretary K. Mohandas from the Indian Ministry of Shipping underscored the positive development of the industry and the resulting business opportunities. Dr Satish B. Agnihotri, Director General of Shipping & Ex. Officio Additional Secretary to the Govt. of India, stressed the importance of the Maritime Agenda 2020 which aims at quadrupling the current Indian tonnage. More Hamburg Messe highlights Manoeuvre: Container giant “Christophe Colomb” (13,344 TEU) of CMA-CGM in the port of Hamburg. Just a few weeks ago, it was once again Maersk who set a new record in terms of ship dimensions. The Danish shipowning company confirmed orders for ten Triple-E-class vessels from South Korean shipyard Daewoo. At the same length as “Emma Maersk”, these post-Panamax ships are designed for 18,000 standard containers. The larger, the more efficient: “With these new ships we also want to contribute to the reduction of CO2 emissions,” said Maersk Line CEO Eivind Kold- ing. According to him, the carbon dioxide emissions from these vessels will be 50% less than the current standard on the route between Europe and Asia. So will this be the end of the growth trend? Apparently not! The first shipyards are already designing new extended-length vessels capable of sailing from Asia to the U.S. through the expanded Panama Canal. The capacity envisioned for these new Panamax behemoths: 20,000 TEU. 15–17 June 2011 international conference and exhibition on maritime security and defence Hamburg Messe Fairground 27–29 September 2011 Hamburg Messe Fairground 4–7 September 2012 Hamburg Messe Fairground Use the prior registration tool on the web for your MS&D visit. The online ticket shop is now available. Everyone with an invitation from an MS&D exhibitor can activate his admission ticket on the MS&D website. All other MS&D visitors can buy their ticket online at msd-hamburg. com. With an online ticket, every visitor has direct access to the trade fair grounds and does not have to waste time queuing in the entrance area. So register online and save time and money. Smartphone app for mobile exhibitor search SMM India clearly established For the first time, at SMM 2012 Hamburg Messe will also provide an online exhibitor directory for mobile terminals. To access this, you need only an Internet-capable browser on your unit to call up the SMM website smm-hamburg.com than 100 exhibiting companies of the shipbuilding industry showcased their latest developments at the second fair held under the SMM brand in early April. SMM India, a joint project of Hamburg Messe und Congress and its Indian partner, Inter Ads Exhibitions Pvt. Ltd, is held every two years at the Mumbai Exhibition Centre. The simultaneous two-day conference offers decision makers and experts an opportunity to discuss current topics of the industry. “The quality of visitors this year was outstanding,” said Rajan Sharma, Director of Inter Ads Exhibitions. www.smm-india.com IMPRINT Publisher: Hamburg Messe und Congress GmbH Messeplatz 1 20357 Hamburg, Germany Phone: +49 40 3569-0 Fax: +49 40 3569-2149 Editorial office: printprojekt smm-hamburg.com SMM 2012: The Countdown The shipbuilding and supply industries have been enjoying dynamic growth this year. With ship efficiency and environment protection as key challenges, they are redoubling their efforts to develop innovative solutions. It will be exciting to see the new highlights at SMM 2012. Most of the exhibition space has been rented already, and once again SMM is anticipated to be fully booked before the official application deadline. T he wind has turned – and it is helping shipbuilders and their suppliers gather way. The organisers of the leading global trade fair of the shipbuilding sector say: “The number of confirmed exhibitor bookings for SMM 2012 is clearly above the level at the same time two years ago,” says Peter Bergleiter, Project Director SMM at Hamburg Messe und Congress GmbH (HMC). This overwhelming response did not come unexpectedly, according to a survey conducted at SMM 2010. 98% of the exhibitors had announced their intention to return the No time to lose! Application deadline for SMM 2012: 14 October 2011 If you require application forms or visitor information on SMM 2012, please contact: Hamburg Messe und Congress GmbH Project Management MA-3 Messeplatz 1 20357 Hamburg,Germany Phone: +49 40 3569–2146/-2147 Fax: +49 40 3569–2149 smm@hamburg-messe.de smm-hamburg.com Online registration Exhibitors of SMM 2012 can have themselves registered with a click of the mouse via the new paperless electronic online registration system smm-hamburg.com Growth Market: Technically sophisticated multi-purpose ships for offshore work (photo: “Rem Hrist” built by the Norwegian Ulstein Group) are in great demand. next time (see below). Last year’s fair was fully booked, as well, in spite of the difficult economic conditions still affecting the industry. The 24th “shipbuilding, machinery & marine technology international trade fair hamburg” attracted 50,000 industry visitors eager to explore the products and services of 2003 exhibitors from 58 countries. The events abroad – SMM Istanbul in January and SMM India in April – also met with lively interest. Green highlights SMM continues to be the leading international platform of the maritime industry. Every two years, shipbuilders and suppliers April 2011 – Printed in Germany Subject to changes present innovative solutions and technologies to top-class industry representatives from all over the world at the Hamburg event. and optimised hull shapes to efficient fleet management. Minimising the environmental footprint of shipping continues to be an important objective of SMM. “It is our obligation to protect the maritime environment,” said CEO Micky Arison of Carnival, the world’s largest cruise ship operator, during the inaugural event of the global maritime environmental congress (gmec). Following its successful launch, the gmec will be a regular part of the SMM programme in the future to promote the green agenda, from alternative propulsion technologies It is no news the energy sector can benefit from the vast technological competence of the shipbuilding industry in many ways. Highly specialised vessels are used to supply oil platforms and offshore wind turbine installation sites. Heavy lift ships haul gigantic components to their destinations. The maritime know-how of shipyards and component suppliers is in high demand. This is reflected by the global reach of SMM. The success story of the maritime economy and its leading industry showcase continues. Bright prospects Cheerful exhibitors and visitors W Venue: The next SMM India will again take place in Mumbai. Photo: HMC/Z Panamax Photo: HHLA/Thomas Hampel 1980–1988 | 3rd generation You can make your hotel overnight bookings during SMM via the SMM 2012 website www.smm-hamburg. com or the HMC partner FIRST travel agency Rauther, which also provides a comprehensive service for your trip to Hamburg and leisure activities – before, during and after SMM 2010. Perspective: The German navy’s frigate 125 can provide naval support to special forces. E conomies of scale continue to drive the trend towards larger containerships. While the first-generation vessels built until 1968 were 180 metres long and carried 750 TEU, the third generation from 1972 onward had grown to 287 m and four times the capacity. By 1999, 354-m ships carrying more than 8,000 TEU were a common sight. We`ll book a hotel for you Flexible response Containerships: The next generation Containership-Evolution since 1980 you can easily get a great deal done online in the run-up to the fair. 2011 shipbuilding • machinery & marine technology international trade fair • hamburg • 4 –7 sept 2012 HMC offers a comprehensive online service for SMM 2012. Via the SMM website smm-hamburg.com Illustration: ARGE F125/TKMS The German “KG” model has had a long and successful history. Does it have a future? Absolutely. The KG model will always play a major role on the German market. Investors and enterprises trust it. Of course, investing in a ship means acquiring an interest in a firm with all the associated risks. However, it was not the KG model that caused the financing bottlenecks but the global financial crisis. Photo: VDR/H.-J. Hettchen Mr Johns, what will be the longterm consequences of the economic and financial crisis on ship finance? The crisis has changed the scene in the banking sector, including ship finance. The requirements for external finance have become stricter. Shipowners must raise much more capital of their own now. On the equity side, investors are still hesitant due to the volatility of the markets. But then, you can always get financing for a sound project. Expert: Max Johns, spokesperson of the German Shipowners’ Association VDR, teaches Ship Finance at the Hamburg School of Business Administration. Troop Transporter: The multi-purpose catamarans made by Austal do more than 35 knots. No 1 Online service for SMM 2012 Photo: Dbenbenn T he worst is over. Charter rates have recovered in some key segments of the shipping industry, and banks are more willing to provide external finance for new ships. But the financial crisis has left its marks and prompted a sustained change of course in ship finance. The requirements have become tougher for both equity and borrowed capital, paving the way towards alternative forms of financing. Illustration: Austal Ship finance on a new course SMM news | 2011 Photo: Ulstein Group/Arild Solberg No 1 e are extremely pleased with the outcome of this trade event,” said Peter Dan Petersen, summing up his impressions from SMM 2010. The Senior Manager Marketing Communications of ship engine manufacturer MAN Diesel & Turbo repeated what most exhibitors stated in the survey conducted by an independent research institute on behalf of HMC at the end of last year’s SMM. 94% of the exhibiting companies rated the event “very good” to “satisfactory”. 96% said the trade fair had fulfilled their expec- Expectations surpassed: 96 per cent of the participating companies said SMM 2010 fulfilled their expectations. tations, and 98% said they would return in 2012. Nearly as many respondents (97%) confirmed they had made contact with their most important business partners, and 97% said they concluded or made arrangements for business deals. 96% To some extent the success of the event depends on the quantity and quality of exhibitors and visitors. Shipowners, Business success: 97 per cent of the respondents said they concluded one or several deals at SMM 2010 or made arrangements for new deals. smm-hamburg.com shipyards and suppliers were the largest visitor groups; 70% of the exhibitors were shipbuilders or suppliers. The exhibitors found an ideal target audience and vice versa. As many as 68% of the visitors at SMM 2010 were decision makers. 97% Confirming that SMM is consid considered the flagship event of the ex maritime trade not only by exhibitors and visitors alike, an overwhelming 96% of the respondents gave it a rating of “good” to “excellent”. Photo: HMC/Z SMM news Stampede: Numerous executives and decision makers from the industry attended SMM 2010 . SMM news SMM news SMM news shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 Henrik O. Madsen, CEO of the Norwegian classification society DNV. The new DNVclassed tanker Triality is scheduled to go on her maiden voyage in 2014. “This ship uses established technology and is especially environment-friendly and appealing even from a financial perspective,” says the CEO of DNV. Compared to a conventional supertanker, Triality will emit 34% less CO2 and consume 25% less energy. NOx emissions will be 82% less, and sulphur oxides as much as 94% less than with a conventional HFO system. News from Seatrade Europe Upswing ahead The recent economic upturn and dynamic growth has reached the transport sector and will eventually benefit the shipbuilding industry as well. T Over 14 million TEU January 2010 (37.3%). In early 2011, the all-container ship fleet comprised about 4,900 units with 14.1 million container spaces; 258 new units with a total capacity of 1.3 million TEU were delivered last year. The original plans had been for 462 deliveries totalling 2 million TEU, says the ISL. On the Rebound Taking a closer look at the containership market, shipyards’ order books were on the decline until mid-2010, according to the German Institute of Shipping Economics and Logistics (ISL). The second half of the year saw a rise in new orders. In early January 2011, the global order book listed 611 vessels with a total capacity of 3.8 million TEU, equivalent to about 27.2% of the current container fleet in service. This ratio was substantially lower than in Based on the order book, the fleet will grow 11.9% this year and 9% next year. The World shipbuilding 2007 Completions New orders 80,000 Figures in ’000 CGT CESA based on IHS Fairplay 70,000 60,000 2004 2005 50,000 40,000 2000 1999 number of ships scrapped, while below the 2009 level (377,000 TEU), remained comparatively high at 126,000 TEU in 2010. The volume of inactive tonnage has been dropping steadily. AXS Alphaliners reported 145 ships totalling 330,500 TEU in early 2011, expecting a further drop to 150,000 TEU. During the peak of the crisis in 2009, 12% of the fleet were sitting idle. Shipping companies weathered the crisis by slow-steaming and postponing orders. 90,000 Demand and supply 2003 2001 All this is good news for the Seatrade Europe Cruise & Rivercruise Convention 2011 to be held on Hamburg Fair site from 27 to 29 September 2011. With products from cabin interiors and kitchen equipment to audio, lighting and IT systems, the “Suppliers’ Workshop” on the second day of the trade fair will showcase the full range of supplier offerings and provide a networking opportunity for industry professionals. Apart from presentations by three worldwide leaders in the cruise ship building industry (Fincantieri, Meyer Werft / Neptun and STX France) there will be ten-minute “speed dates” for suppliers to introduce themselves to the shipyards’ chief purchasers. Pre-registration is required: www.seatrade-europe.com Shipbuilding: The order books of Europe's cruise ship builders are full. 2002 30,000 20,000 smm-hamburg.com 2010 2006 2008 2009 Photo: STX Europe The world fleet tonnage grew by 8.5% (2009: 5.7%) to 983 million GT (2000: 906). The same trend could be observed in the container fleet tonnage, which grew 8.7% (2009: 4.9%). Bulk carriers were up 17.2% (2009: 7.8%), whereas the tanker fleet tonnage grew by 3.7% (2009: 9.2%). According to Clarkson Research, 7,191 new ships with a combined tonnage of 137.7 million CGT were on order globally. L eisure cruises continue to be a hot selling item in international tourism. According to Seatrade Insider, there are currently newbuilding orders for as many as 21 cruise ships totalling 53,000 bunks, with a total value of 13.3 billion US dollars. The market is equally attractive for suppliers and service providers: In 2009, ship owners spent about 5.4 billion euros on equipment, services and provisions in Europe alone. Photo: MEYER WERFT GmbH he economic recovery has been surprisingly vigorous. According to the IMF, the world economy grew by 5% in 2010. This helped the transport sector, which grew by 12%. A study by Deutsche Bank Research reports that “global container traffic increased by 11% or more last year after having seen a decline in 2009 for the first time in recorded history (minus 9%)”. Experts expect a 7% growth in 2011 and 2012. The prospects are promising for the next SMM. “Norwegian Epic”: Yards such as STX France need capable suppliers for their new cruise ships. I n relation to the volume of goods transported, there is hardly a mode of transportation less damaging to the environment than shipping. No more than three per cent of global noxious emissions are attributable to ship traffic. But that isn’t good enough: with the ultimate goal of a zero-emission ship in mind, the industry has been on a quest for alternatives to sulphur-laden HFO. The “green wave” is getting a push from politics. The pressure from governments and the public to enforce stricter emissions rules is growing. The Emission Control Areas (ECAs) in the North Sea, the Baltic and along the North-American coastlines impose tight limits (see insert). Other regions, such as the Mediterranean, will follow suit. These new restrictions have a major impact on ship design. “Considering that a ship has a service life of 25 years, we need new concepts now to improve the CO2 balance of the shipping industry sustainably,” says Spyros Polemis, Chairman of the International Chamber of Study: Norwegian classification society DNV presented a model for an innovative LNGpropelled supertanker. the main fuel, is carried on board in vacuum-insulated thermal tanks. The results are impressive: NOx emissions have been cut by 155 tonnes per year, an 88% reduction compared to a diesel power plant. CO2 emissions have been reduced by 21%, or 2,230 tonnes per year. Experts are working feverishly on new LNG propulsion solutions. “I am convinced that by the year 2020 most shipowners will be ordering LNG-powered ships,” says Pioneer: The oil platform supply vessel “Viking Energy” was the first such ship to run primarily on natural gas. Shipping (ICS). When chairing the first-ever global maritime environmental congress, gmec (see insert) last year, Polemis took a closer look at the future of ship propulsion – a future that has “liquefied natural gas” (LNG) written all over it. Natural gas is liquefied at –162 °C to shrink its volume by a factor of 600. Norwegian owner Eidesvik’s oil platform supply vessel “Viking Energy” was the world’s first ship equipped with a dual-fuel electric propulsion system. LNG, S Ebru Goca from Turkish Partner Goca Exhibitions agreed: “The strong support we received from the Turkish government Svenja (Sietas Type 183), 160 metres in length, is equipped with two gigantic cranes boasting a joint lifting capacity of 2,000 metric tonnes. The previous champions of the fleet, both Sietas Type 176 vessels, could carry “only” 12,000 tonnes of cargo, and their twin cranes were rated 700 tonnes Floating powerhouse: “Industrial Freedom” owned by Intermarine taking a wind turbine to the installation site. World champions: “Lone” and her sister ship “Svenja” are the world’s largest heavy lift transport vessels. As all these examples show, liquefied natural gas is a force to reckon with. Building up an adequate refuelling infrastructure will accelerate its popularisation. Northern Europe has taken the lead. each. “Our two new heavy lift vessels are going to be our specialists for the most complex and demanding jobs,” explains Lars Rolner, Managing Partner of SAL. plants. The booming offshore oil and gas business and the equally promising wind power industry are sure to keep the owners and builders of these vessels busy for a while. Svenja’s ‘tween deck contains a huge 107 m × 17 m × 13.6 m cargo hold for up to 11,000 tonnes of cargo. Capable of sailing with open hatches, the vessel can even transport items extending above the hatch cover level without a problem. to lift the cargo onto a pontoon which would be towed to a special heavy lift vessel from where it was installed. “Jumbo Javelin” and “Fairplayer” can jointly lift up to 1,800 tonnes and are equipped with winch systems allowing them to carry out installation of parts weighing up to 1,000 tonnes in water depths of up to 900 metres, or 200-tonne parts in 3,000 metres. Much like “Svenja” and “Lone”, Dutch owner Jumbo Shipping’s “Jumbo Javelin” and “Fairplayer” are equipped with dynamic positioning systems allowing them not only to load and transport but also to place their loads with high precision at the point of installation. In the past, these were separate steps of the installation process: a floating crane had Beat that: In tandem operation, the two cranes on board “Svenja” (SAL Heavy Lifting) can handle loads of up to 2,000 tonnes. Both cranes were built by German specialist Neuenfelder Maschinenfabrik, a subsidiary of Sietas shipyard. lenty of power for heavy lifting and precision control for load placement: Ship-mounted cranes play a vital role today. The rapid increase of offshore installations has boosted demand for heavy lifting capabilities. Crane sizes have reached stunning dimensions. In the 1970s, an average shipboard crane had a lifting capacity of five to ten metric tonnes. Today, mast cranes (e.g. Huisman-Itrec) lift up to 900 tonnes, slewing tower cranes (such as an NMF) do up to 1,000 tonnes. Deploying them in tandem doubles that lifting capacity. Cranes capable of handling from 80 tonnes upwards are called heavy lift cranes. Since they are considerably slower than smaller units, they frequently feature an auxiliary lifting system allowing them to move smaller loads more rapidly. This gives craneequipped ships added flexibility. Flexible all-rounders Laying pipeline, exploring oil and gas deposits, maintaining offshore structures – there is plenty of specialised work to be done at sea, and only specialised, sophisticated ships can do it. Breakthrough: The multi-purpose RoRo ships being built for Norwegian owner Sea-Cargo will be propelled by LNG. A Industry gathering: SMM Istanbul took place from 26 to 28 January at the Bosporus. and the Undersecretariats for Maritime Affairs and Defence Industries as well as from all the industry and professional organisations has shown that we are investing in a market with a great future.“ Apart from numerous Turkish shipyards P venja” and “Lone” are the names of the two largest, most technically advanced heavy lift vessels the world has ever seen. The two sister ships were built by J. J. Sietas shipyard, Hamburg, for the German heavy lift and project cargo shipping company SAL which is headquartered at Steinkirchen near Hamburg. The heavy lifters move everything too big to fit into a container: turbines, generators, oil platform components, machines and entire Business at the Bosporus: SMM in Istanbul bout 140 exhibiting companies from 25 different countries; 2,600 visitors from 40 nations: The outcome of the SMM Istanbul from 26 to 28 January was encouraging. “The Turkish shipbuilding industry had been hit hard by the economic and financial crisis. But it has come around and will play a key role in the future. We want to support this development,” emphasised Peter Bergleiter, Project Director of SMM at Hamburg Messe und Congress GmbH (HMC), in his review of the trade fair. Sheer muscle: deck cranes As single cargo items are getting larger and heavier, a new generation of heavy lift vessels stands ready to face the challenge. Japanese shipowner NYK Line has presented a new LNG containership design. The 353 m “NYK Super Eco Ship 2030” has a capacity of 8,000 TEU. Her main power source will be a fuel cell plant using LNG. While dual-fuel propulsion systems capable of burning boil-off gas are common on large LNG tankers, rising gas prices have prompted some owners to build LNG tankers propelled by HFO while using on-board reliquefaction systems for the boil-off gas. This is clearly not going to help the environmental balance of shipping. Forward-thinking companies, such as Dutch owner Anthony Veder, believe in LNG propulsion: Veder has ordered a new, 156 m, 15,600-cubic-metre short sea LNG tanker from Meyer Werft, Germany, that will be propelled by an LNG power plant satisfying the strictest environmental standards. | 2011 and suppliers to the shipbuilding industry, several well-known exhibitors from Asia and Europe showcased their products and services at SMM Istanbul 2011. Among the highlights of the event was the “Green Shipping” session on the second day. T he general economic recovery in many countries will also help the maritime industry,” says Haakon Haland, Fund Manager at Plenum Maritime Fund. Builders and operators of specialised craft in particular are in high demand. The increasing need for energy is driving offshore oil and gas exploration as well as wind farm development, both of which depend heavily on advanced maritime technology. For example, innovative, high-tech vessels are to tackle the enormous challenges of tapping ultra-deepwater oil deposits off the coasts of Brazil and western Africa. Seven anchor tugs were ordered recently by the Brazilian offshore services company Norskan. SMM Green Shipping Guide 2011 F ollowing the successful launch of the new title in 2010, Seatrade and SMM have joined forces again to update this publication focusing on how shipping is going green, the challenges associated in keeping ahead of regulations and the exciting technology that will shape the ships of tomorrow. SMM Green Shipping Officially endorsed by featuring Guide 2011 A powerful advertising vehicle that sets out to focus on shipping's greatest challenge – the best way to go green and delivering a uniquely targeted high profile global audience. The Green Agenda is non-stop Following the successful launch of this new title in 2010, Seatrade and SMM have joined forces again to update this publication focussing on how shipping is going green, the challenges associated in keeping ahead of regulations and the exciting technology that will shape the ships of tomorrow. The 2011 edition will include interviews and opinions from the world's leading shipping executives, environmentalists and regulators plus a series of articles highlighting green innovations and technical solutions from around the globe. Unique niche audiences 10,000 copies will be printed for distribution to all SMM exhibiting companies and to the VIPs and delegates that attended gmec plus the September issues of Seatrade magazine and Seatrade Cruise Review. Plus a unique bonus distribution at major worldwide shipping events in autumn 2011 including:- Kormarine Expo Busan Europort Holland NEW will be a special focus on Asia and how Asian shipowners, shipbuilders, and marine equipment manufacturers are addressing the green agenda. ...and many more The SMM Green Shipping Guide 2011 will also appear online at smm-hamburg.com, at Seatrade's website: seatrade-global.com and at Seatrade's new Asia portal seatrade-asia.com For editorial matters please contact: Mary Bond, Phone: +44 1206 545121 email: mary@seatrade-global.com For advertising details please contact: Simon O’Connell, Phone: +44 1206 545121 email: soconnell@seatrade-global.com Published by High-tech equipment: Many specialised vessels must meet extreme demands regarding flexibility and versatility. The wind power projects in the North Sea and the Baltic are typical deployment areas for specialised offshore supply vessels (OSV). Thorsten Herdan, Vice President and Managing Director of the German “Offshore Windenergie” foundation, estimates that around 60 billion euros will be spent on wind farms there until 2030. Some of this capital will go towards specialised jack-up installation vessels. “We anticipate orders for a minimum of 20 installation ships and an even larger number of additional smaller service ships needed for repair and maintenance,” Herdan says. Specialising in oil & gas projects Rasmus Stute, Head of GL’s Offshore Service Vessels Department, agrees that the need for specialised ships will increase rapidly: “On a global scale we expect a demand of 40 to 50 installation vessels since China and the U.S. are also beginning to invest in this technology.” A sense of eager anticipation has gripped the entire industry: Indonesian shipbuilding company Drydocks World recently introduced its new Anchor Handling Offshore Support Vessel “Olympus Crest”. This OSV is 76 m long, 18.5m wide and has a 6.8-m draught. Its owner, Pacific Crest Pte Ltd, is a subsidiary of Pacific Radiance Group, Singapore, which specialises in solutions for deepwater oil and gas exploration and production. Special ship: Ulstein's “SX 121” is a large, flexible offshore vessel designed for installation, inspection, maintenance and repair of submerged offshore installations. Last year Italian shipbuilding company Fincantieri entered the market with a series of 14 new Anchor Handling Tug Supply (AHTS) vessels. At a length of 68 m, these ships have a carrying capacity of 3,000 tonnes. Some specialised ships are conversions, such as the former bulk carrier “Audacia” which is now a pipelayer. The vessel is 225 m long. The so-called stinger, the frame used to lower the pipeline into the water, adds another 110 metres. The ship can install up to seven kilometres of pipeline per day in water up to 1,800 m deep. It is typically used to connect offshore oil platforms or oil and gas fields in the North Sea to onshore pipeline systems. Nexans’ cable-laying vessel “Skagerrak” was lengthened by 12.5m last year. Her first job will be to install nearly 300 kilometres of high-voltage cable in the North Sea. SMM representative offices worldwide Argentina/Brazil: María Gabriela Troncoso, Buenos Aires Phone: + 54 11 48 22 62 92 Fax: + 54 11 48 22 62 92 gabar@cponline.org.ar Belgium/Luxembourg: Matthias Popp, Brussels Phone: + 32 2 20 40 189 Fax: + 32 2 20 32 271 popp@debelux.org Denmark/Faroe Islands/ Greenland/Iceland: André Minier, Herlev Phone: + 45 44 84 66 99 Fax: + 45 44 84 82 66 andre@standesign.dk Austria/Slovenia: Robert Mittermann, Vienna Phone: + 43 1 285 75 85 0 Fax: + 43 1 285 75 85 50 robert.mittermann @messeservice.at P.R. China: Dong Yini, Shanghai Phone: +86 21 6875 8536 *1619 Fax: +86 21 6875 85735619 dong.yini@sh.china.ahk.de Estonia: Elo Saari, Tallinn Phone: + 372 6 27 69 46 Fax: + 372 6 27 69 50 hamburg.ee@ahk-balt.org Finland: Mikko Nummi, Helsinki Phone: + 358 9 61 22 12 16 Fax: + 358 9 64 28 59 mikko.nummi@dfhk.fi India: K.V. Rajeevan, Haryana Phone: +91 124 4524202/3 Fax: +91 124 4524227 rajeevan.kv@interads.in Japan: Yuko Ikeda, Tokyo Phone: +81 3 64264252 Fax: +81 3 57506863 yuko.ikeda@hhjp.jp Latvia: Vineta Šķ ē rī te, Riga Phone: + 371 7 32 07 18 Fax: + 371 7 83 04 78 hamburg.lv@ahk-balt.org The Netherlands: Cora Burger, Apeldoorn Phone: + 31 55 533 0 400 Fax: + 31 55 533 0 360 media@fairformat.nl Poland: Krzysztof Karaś, Warsaw Phone: + 48 22 620 71 98 Fax: + 48 22 654 48 61 karas@eurotargi.com Greece/Cyprus: Dimitra Tsatsani, Thessaloniki Phone: + 30 2310 32 77 33 Fax: + 30 2310 32 77 37 d.tsatsani @mail.ahk-germany.de Russian Federation: Konstantin Chernov, St. Petersburg Phone: + 7 812 335 19 69 Fax: + 7 812 335 19 69 hmcrf@mail.ru Italy: Liliana Realini, Milan Phone: + 39 02 33 60 6013 Fax: + 39 02 33 61 7637 fiere@studiorealini.it Republic of Korea: San Kon Ok, Busan Phone: +82 51 610 1233 Fax: +82 51 610 1232 sk_ok@dongsungco.com Lithuania: Violeta Prelgauskiene, Vilnius Phone: + 370 5 263 91 16 Fax: + 370 5 213 10 13 hamburg.lt@ahk-balt.org Norway: Marit Louise Aadnøy, Gjerdrum Phone: + 47 63 99 07 99 Fax: + 47 63 99 14 77 marit.aadnoy @int-messe.no Romania: Roberta Moldoveanu, Bucharest Phone: + 40 31 40 941 76 Fax: + 40 31 40 941 76 hamburg-messe.romania @rdsmail.ro Spain/Portugal/Andorra: Ana Mamarbachi, Barcelona Phone: + 34 93 412 24 60 Fax: + 34 93 317 24 66 ana.mamarbachi @infonegocio.com Switzerland/ Principality of Liechtenstein: Peter Burger, Zurich Phone: + 41 44 283 61 75 Fax: + 41 44 283 61 00 fairexpert @handelskammerd-ch.ch United Kingdom/Ireland: Nele Andersch, Lymington Phone: + 44 1590 679977 Mobile: + 44 1590 679977 andersch@referencepoint.de Turkey/Northern Cyprus: Ebru Goca, Istanbul Phone: + 90 216 51 80 397 Fax: + 90 216 48 90 594 ebru.goca @hamburg-messe-tr.com USA/Canada: Bruce J. Cole, Rockport Phone: + 1 207 236 61 96 Fax: + 1 207 236 03 69 bcole @McNabbMarketing.com Information on SMM 2012 If you require exhibitor or visitor information on SMM 2012, please contact: Phone: +49 (0) 40 – 35 69 - 21 46/ - 21 47 Fax: +49 (0) 40 – 35 69 - 21 49 info@smm-hamburg.com www.smm-hamburg.com Illustration: Ulstein Group Project volumes are enormous but banks are taking a conservative approach to lending. How does ship finance influence shipbuilding? Should governments take action to provide support? It is true that the financial crisis has not exactly made it easier to finance such large projects. But we have been enjoying excel- Slowly but surely, the shipping world is saying goodbye to heavy oil. Striving to improve its CO2 record, the shipping industry is beginning to turn to a new fuel: LNG. Photos: HMI The global economic upswing is energising the transport sector. How strong is your optimism for the future? I am quite optimistic. We mainly build cruise ships. In our business, the transport segment is not very influential. We are suppliers to the tourism industry. But as the economic situation improves, so does world trade in general, and passenger shipping in particular. Since the cruise ship segment has been growing healthily in recent years, How important is the maritime industry for Europe? Would you favour governments taking a more active role in supporting the industry, and how should this be done? Shipyards and their suppliers, along with ports and shipping companies, continue to play an important role in all of Europe. However, the issues arising from distorted competitive conditions cannot be resolved within Europe. In the competitive situation vis-àvis the Asian shipbuilding nations, creating a level playing field will require a different set of political tools and mechanisms. Cleaner with LNG Illustration: DNV we are rather confident. Both shipowners and analysts are predicting continuous positive growth rates for a long period of time. Especially in Europe this market is far from saturated. calls for more decisive government action to create a level global playing field. Masters of heavy lifting Adequate infrastructure Illustration: SEA-CARGO AS Cruise ship: “AIDAsol” is the most recent achievement of Meyer Werft shipyard. CEO Bernhard Meyer is the Chairman of the Community of European Shipyards΄ Associations. Photo: Eidesvik F ollowing a consolidation phase in the wake of the crisis, Europe’s shipyards and suppliers are looking ahead with renewed confidence. Bernhard Meyer, CEO of Meyer Werft shipyard and Chairman of the Community of European Shipyards’ Associations (CESA), believes the industry’s focus on building specialised ships is the right approach. An excellent cooperation between shipyards and their suppliers and a strong commitment to quality and innovation can ensure the competitiveness of European shipbuilders – provided their prices are right. In this context, the Chairman of CESA Photo: Christian Wyrwa Photo: www.miwefotos.de lent, long-lasting business relationships with our banks. Of course, besides good credentials and solid financing models as well as customers with good credit ratings, in a business environment like ours shipyards need export credit guarantees. Cruise ships, offshore supply vessels, mega yachts: European shipyards are putting their bets on niche markets. How can they maintain their technological leadership? We must prevail by delivering innovation and superior quality while adhering to delivery schedules. Another important aspect is the cost-performance ratio. Europeans must offer competitive prices on the world market. No 1 Photo: Reederei Jüngerhans “To prevail we must deliver innovation and superior quality” | 2011 Photo: Hasenpusch | No 1 2011 Photo: Dreamstime/Daliscot55 No 1 SMM news SMM news SMM news shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 Henrik O. Madsen, CEO of the Norwegian classification society DNV. The new DNVclassed tanker Triality is scheduled to go on her maiden voyage in 2014. “This ship uses established technology and is especially environment-friendly and appealing even from a financial perspective,” says the CEO of DNV. Compared to a conventional supertanker, Triality will emit 34% less CO2 and consume 25% less energy. NOx emissions will be 82% less, and sulphur oxides as much as 94% less than with a conventional HFO system. News from Seatrade Europe Upswing ahead The recent economic upturn and dynamic growth has reached the transport sector and will eventually benefit the shipbuilding industry as well. T Over 14 million TEU January 2010 (37.3%). In early 2011, the all-container ship fleet comprised about 4,900 units with 14.1 million container spaces; 258 new units with a total capacity of 1.3 million TEU were delivered last year. The original plans had been for 462 deliveries totalling 2 million TEU, says the ISL. On the Rebound Taking a closer look at the containership market, shipyards’ order books were on the decline until mid-2010, according to the German Institute of Shipping Economics and Logistics (ISL). The second half of the year saw a rise in new orders. In early January 2011, the global order book listed 611 vessels with a total capacity of 3.8 million TEU, equivalent to about 27.2% of the current container fleet in service. This ratio was substantially lower than in Based on the order book, the fleet will grow 11.9% this year and 9% next year. The World shipbuilding 2007 Completions New orders 80,000 Figures in ’000 CGT CESA based on IHS Fairplay 70,000 60,000 2004 2005 50,000 40,000 2000 1999 number of ships scrapped, while below the 2009 level (377,000 TEU), remained comparatively high at 126,000 TEU in 2010. The volume of inactive tonnage has been dropping steadily. AXS Alphaliners reported 145 ships totalling 330,500 TEU in early 2011, expecting a further drop to 150,000 TEU. During the peak of the crisis in 2009, 12% of the fleet were sitting idle. Shipping companies weathered the crisis by slow-steaming and postponing orders. 90,000 Demand and supply 2003 2001 All this is good news for the Seatrade Europe Cruise & Rivercruise Convention 2011 to be held on Hamburg Fair site from 27 to 29 September 2011. With products from cabin interiors and kitchen equipment to audio, lighting and IT systems, the “Suppliers’ Workshop” on the second day of the trade fair will showcase the full range of supplier offerings and provide a networking opportunity for industry professionals. Apart from presentations by three worldwide leaders in the cruise ship building industry (Fincantieri, Meyer Werft / Neptun and STX France) there will be ten-minute “speed dates” for suppliers to introduce themselves to the shipyards’ chief purchasers. Pre-registration is required: www.seatrade-europe.com Shipbuilding: The order books of Europe's cruise ship builders are full. 2002 30,000 20,000 smm-hamburg.com 2010 2006 2008 2009 Photo: STX Europe The world fleet tonnage grew by 8.5% (2009: 5.7%) to 983 million GT (2000: 906). The same trend could be observed in the container fleet tonnage, which grew 8.7% (2009: 4.9%). Bulk carriers were up 17.2% (2009: 7.8%), whereas the tanker fleet tonnage grew by 3.7% (2009: 9.2%). According to Clarkson Research, 7,191 new ships with a combined tonnage of 137.7 million CGT were on order globally. L eisure cruises continue to be a hot selling item in international tourism. According to Seatrade Insider, there are currently newbuilding orders for as many as 21 cruise ships totalling 53,000 bunks, with a total value of 13.3 billion US dollars. The market is equally attractive for suppliers and service providers: In 2009, ship owners spent about 5.4 billion euros on equipment, services and provisions in Europe alone. Photo: MEYER WERFT GmbH he economic recovery has been surprisingly vigorous. According to the IMF, the world economy grew by 5% in 2010. This helped the transport sector, which grew by 12%. A study by Deutsche Bank Research reports that “global container traffic increased by 11% or more last year after having seen a decline in 2009 for the first time in recorded history (minus 9%)”. Experts expect a 7% growth in 2011 and 2012. The prospects are promising for the next SMM. “Norwegian Epic”: Yards such as STX France need capable suppliers for their new cruise ships. I n relation to the volume of goods transported, there is hardly a mode of transportation less damaging to the environment than shipping. No more than three per cent of global noxious emissions are attributable to ship traffic. But that isn’t good enough: with the ultimate goal of a zero-emission ship in mind, the industry has been on a quest for alternatives to sulphur-laden HFO. The “green wave” is getting a push from politics. The pressure from governments and the public to enforce stricter emissions rules is growing. The Emission Control Areas (ECAs) in the North Sea, the Baltic and along the North-American coastlines impose tight limits (see insert). Other regions, such as the Mediterranean, will follow suit. These new restrictions have a major impact on ship design. “Considering that a ship has a service life of 25 years, we need new concepts now to improve the CO2 balance of the shipping industry sustainably,” says Spyros Polemis, Chairman of the International Chamber of Study: Norwegian classification society DNV presented a model for an innovative LNGpropelled supertanker. the main fuel, is carried on board in vacuum-insulated thermal tanks. The results are impressive: NOx emissions have been cut by 155 tonnes per year, an 88% reduction compared to a diesel power plant. CO2 emissions have been reduced by 21%, or 2,230 tonnes per year. Experts are working feverishly on new LNG propulsion solutions. “I am convinced that by the year 2020 most shipowners will be ordering LNG-powered ships,” says Pioneer: The oil platform supply vessel “Viking Energy” was the first such ship to run primarily on natural gas. Shipping (ICS). When chairing the first-ever global maritime environmental congress, gmec (see insert) last year, Polemis took a closer look at the future of ship propulsion – a future that has “liquefied natural gas” (LNG) written all over it. Natural gas is liquefied at –162 °C to shrink its volume by a factor of 600. Norwegian owner Eidesvik’s oil platform supply vessel “Viking Energy” was the world’s first ship equipped with a dual-fuel electric propulsion system. LNG, S Ebru Goca from Turkish Partner Goca Exhibitions agreed: “The strong support we received from the Turkish government Svenja (Sietas Type 183), 160 metres in length, is equipped with two gigantic cranes boasting a joint lifting capacity of 2,000 metric tonnes. The previous champions of the fleet, both Sietas Type 176 vessels, could carry “only” 12,000 tonnes of cargo, and their twin cranes were rated 700 tonnes Floating powerhouse: “Industrial Freedom” owned by Intermarine taking a wind turbine to the installation site. World champions: “Lone” and her sister ship “Svenja” are the world’s largest heavy lift transport vessels. As all these examples show, liquefied natural gas is a force to reckon with. Building up an adequate refuelling infrastructure will accelerate its popularisation. Northern Europe has taken the lead. each. “Our two new heavy lift vessels are going to be our specialists for the most complex and demanding jobs,” explains Lars Rolner, Managing Partner of SAL. plants. The booming offshore oil and gas business and the equally promising wind power industry are sure to keep the owners and builders of these vessels busy for a while. Svenja’s ‘tween deck contains a huge 107 m × 17 m × 13.6 m cargo hold for up to 11,000 tonnes of cargo. Capable of sailing with open hatches, the vessel can even transport items extending above the hatch cover level without a problem. to lift the cargo onto a pontoon which would be towed to a special heavy lift vessel from where it was installed. “Jumbo Javelin” and “Fairplayer” can jointly lift up to 1,800 tonnes and are equipped with winch systems allowing them to carry out installation of parts weighing up to 1,000 tonnes in water depths of up to 900 metres, or 200-tonne parts in 3,000 metres. Much like “Svenja” and “Lone”, Dutch owner Jumbo Shipping’s “Jumbo Javelin” and “Fairplayer” are equipped with dynamic positioning systems allowing them not only to load and transport but also to place their loads with high precision at the point of installation. In the past, these were separate steps of the installation process: a floating crane had Beat that: In tandem operation, the two cranes on board “Svenja” (SAL Heavy Lifting) can handle loads of up to 2,000 tonnes. Both cranes were built by German specialist Neuenfelder Maschinenfabrik, a subsidiary of Sietas shipyard. lenty of power for heavy lifting and precision control for load placement: Ship-mounted cranes play a vital role today. The rapid increase of offshore installations has boosted demand for heavy lifting capabilities. Crane sizes have reached stunning dimensions. In the 1970s, an average shipboard crane had a lifting capacity of five to ten metric tonnes. Today, mast cranes (e.g. Huisman-Itrec) lift up to 900 tonnes, slewing tower cranes (such as an NMF) do up to 1,000 tonnes. Deploying them in tandem doubles that lifting capacity. Cranes capable of handling from 80 tonnes upwards are called heavy lift cranes. Since they are considerably slower than smaller units, they frequently feature an auxiliary lifting system allowing them to move smaller loads more rapidly. This gives craneequipped ships added flexibility. Flexible all-rounders Laying pipeline, exploring oil and gas deposits, maintaining offshore structures – there is plenty of specialised work to be done at sea, and only specialised, sophisticated ships can do it. Breakthrough: The multi-purpose RoRo ships being built for Norwegian owner Sea-Cargo will be propelled by LNG. A Industry gathering: SMM Istanbul took place from 26 to 28 January at the Bosporus. and the Undersecretariats for Maritime Affairs and Defence Industries as well as from all the industry and professional organisations has shown that we are investing in a market with a great future.“ Apart from numerous Turkish shipyards P venja” and “Lone” are the names of the two largest, most technically advanced heavy lift vessels the world has ever seen. The two sister ships were built by J. J. Sietas shipyard, Hamburg, for the German heavy lift and project cargo shipping company SAL which is headquartered at Steinkirchen near Hamburg. The heavy lifters move everything too big to fit into a container: turbines, generators, oil platform components, machines and entire Business at the Bosporus: SMM in Istanbul bout 140 exhibiting companies from 25 different countries; 2,600 visitors from 40 nations: The outcome of the SMM Istanbul from 26 to 28 January was encouraging. “The Turkish shipbuilding industry had been hit hard by the economic and financial crisis. But it has come around and will play a key role in the future. We want to support this development,” emphasised Peter Bergleiter, Project Director of SMM at Hamburg Messe und Congress GmbH (HMC), in his review of the trade fair. Sheer muscle: deck cranes As single cargo items are getting larger and heavier, a new generation of heavy lift vessels stands ready to face the challenge. Japanese shipowner NYK Line has presented a new LNG containership design. The 353 m “NYK Super Eco Ship 2030” has a capacity of 8,000 TEU. Her main power source will be a fuel cell plant using LNG. While dual-fuel propulsion systems capable of burning boil-off gas are common on large LNG tankers, rising gas prices have prompted some owners to build LNG tankers propelled by HFO while using on-board reliquefaction systems for the boil-off gas. This is clearly not going to help the environmental balance of shipping. Forward-thinking companies, such as Dutch owner Anthony Veder, believe in LNG propulsion: Veder has ordered a new, 156 m, 15,600-cubic-metre short sea LNG tanker from Meyer Werft, Germany, that will be propelled by an LNG power plant satisfying the strictest environmental standards. | 2011 and suppliers to the shipbuilding industry, several well-known exhibitors from Asia and Europe showcased their products and services at SMM Istanbul 2011. Among the highlights of the event was the “Green Shipping” session on the second day. T he general economic recovery in many countries will also help the maritime industry,” says Haakon Haland, Fund Manager at Plenum Maritime Fund. Builders and operators of specialised craft in particular are in high demand. The increasing need for energy is driving offshore oil and gas exploration as well as wind farm development, both of which depend heavily on advanced maritime technology. For example, innovative, high-tech vessels are to tackle the enormous challenges of tapping ultra-deepwater oil deposits off the coasts of Brazil and western Africa. Seven anchor tugs were ordered recently by the Brazilian offshore services company Norskan. SMM Green Shipping Guide 2011 F ollowing the successful launch of the new title in 2010, Seatrade and SMM have joined forces again to update this publication focusing on how shipping is going green, the challenges associated in keeping ahead of regulations and the exciting technology that will shape the ships of tomorrow. SMM Green Shipping Officially endorsed by featuring Guide 2011 A powerful advertising vehicle that sets out to focus on shipping's greatest challenge – the best way to go green and delivering a uniquely targeted high profile global audience. The Green Agenda is non-stop Following the successful launch of this new title in 2010, Seatrade and SMM have joined forces again to update this publication focussing on how shipping is going green, the challenges associated in keeping ahead of regulations and the exciting technology that will shape the ships of tomorrow. The 2011 edition will include interviews and opinions from the world's leading shipping executives, environmentalists and regulators plus a series of articles highlighting green innovations and technical solutions from around the globe. Unique niche audiences 10,000 copies will be printed for distribution to all SMM exhibiting companies and to the VIPs and delegates that attended gmec plus the September issues of Seatrade magazine and Seatrade Cruise Review. Plus a unique bonus distribution at major worldwide shipping events in autumn 2011 including:- Kormarine Expo Busan Europort Holland NEW will be a special focus on Asia and how Asian shipowners, shipbuilders, and marine equipment manufacturers are addressing the green agenda. ...and many more The SMM Green Shipping Guide 2011 will also appear online at smm-hamburg.com, at Seatrade's website: seatrade-global.com and at Seatrade's new Asia portal seatrade-asia.com For editorial matters please contact: Mary Bond, Phone: +44 1206 545121 email: mary@seatrade-global.com For advertising details please contact: Simon O’Connell, Phone: +44 1206 545121 email: soconnell@seatrade-global.com Published by High-tech equipment: Many specialised vessels must meet extreme demands regarding flexibility and versatility. The wind power projects in the North Sea and the Baltic are typical deployment areas for specialised offshore supply vessels (OSV). Thorsten Herdan, Vice President and Managing Director of the German “Offshore Windenergie” foundation, estimates that around 60 billion euros will be spent on wind farms there until 2030. Some of this capital will go towards specialised jack-up installation vessels. “We anticipate orders for a minimum of 20 installation ships and an even larger number of additional smaller service ships needed for repair and maintenance,” Herdan says. Specialising in oil & gas projects Rasmus Stute, Head of GL’s Offshore Service Vessels Department, agrees that the need for specialised ships will increase rapidly: “On a global scale we expect a demand of 40 to 50 installation vessels since China and the U.S. are also beginning to invest in this technology.” A sense of eager anticipation has gripped the entire industry: Indonesian shipbuilding company Drydocks World recently introduced its new Anchor Handling Offshore Support Vessel “Olympus Crest”. This OSV is 76 m long, 18.5m wide and has a 6.8-m draught. Its owner, Pacific Crest Pte Ltd, is a subsidiary of Pacific Radiance Group, Singapore, which specialises in solutions for deepwater oil and gas exploration and production. Special ship: Ulstein's “SX 121” is a large, flexible offshore vessel designed for installation, inspection, maintenance and repair of submerged offshore installations. Last year Italian shipbuilding company Fincantieri entered the market with a series of 14 new Anchor Handling Tug Supply (AHTS) vessels. At a length of 68 m, these ships have a carrying capacity of 3,000 tonnes. Some specialised ships are conversions, such as the former bulk carrier “Audacia” which is now a pipelayer. The vessel is 225 m long. The so-called stinger, the frame used to lower the pipeline into the water, adds another 110 metres. The ship can install up to seven kilometres of pipeline per day in water up to 1,800 m deep. It is typically used to connect offshore oil platforms or oil and gas fields in the North Sea to onshore pipeline systems. Nexans’ cable-laying vessel “Skagerrak” was lengthened by 12.5m last year. Her first job will be to install nearly 300 kilometres of high-voltage cable in the North Sea. SMM representative offices worldwide Argentina/Brazil: María Gabriela Troncoso, Buenos Aires Phone: + 54 11 48 22 62 92 Fax: + 54 11 48 22 62 92 gabar@cponline.org.ar Belgium/Luxembourg: Matthias Popp, Brussels Phone: + 32 2 20 40 189 Fax: + 32 2 20 32 271 popp@debelux.org Denmark/Faroe Islands/ Greenland/Iceland: André Minier, Herlev Phone: + 45 44 84 66 99 Fax: + 45 44 84 82 66 andre@standesign.dk Austria/Slovenia: Robert Mittermann, Vienna Phone: + 43 1 285 75 85 0 Fax: + 43 1 285 75 85 50 robert.mittermann @messeservice.at P.R. China: Dong Yini, Shanghai Phone: +86 21 6875 8536 *1619 Fax: +86 21 6875 85735619 dong.yini@sh.china.ahk.de Estonia: Elo Saari, Tallinn Phone: + 372 6 27 69 46 Fax: + 372 6 27 69 50 hamburg.ee@ahk-balt.org Finland: Mikko Nummi, Helsinki Phone: + 358 9 61 22 12 16 Fax: + 358 9 64 28 59 mikko.nummi@dfhk.fi India: K.V. Rajeevan, Haryana Phone: +91 124 4524202/3 Fax: +91 124 4524227 rajeevan.kv@interads.in Japan: Yuko Ikeda, Tokyo Phone: +81 3 64264252 Fax: +81 3 57506863 yuko.ikeda@hhjp.jp Latvia: Vineta Šķ ē rī te, Riga Phone: + 371 7 32 07 18 Fax: + 371 7 83 04 78 hamburg.lv@ahk-balt.org The Netherlands: Cora Burger, Apeldoorn Phone: + 31 55 533 0 400 Fax: + 31 55 533 0 360 media@fairformat.nl Poland: Krzysztof Karaś, Warsaw Phone: + 48 22 620 71 98 Fax: + 48 22 654 48 61 karas@eurotargi.com Greece/Cyprus: Dimitra Tsatsani, Thessaloniki Phone: + 30 2310 32 77 33 Fax: + 30 2310 32 77 37 d.tsatsani @mail.ahk-germany.de Russian Federation: Konstantin Chernov, St. Petersburg Phone: + 7 812 335 19 69 Fax: + 7 812 335 19 69 hmcrf@mail.ru Italy: Liliana Realini, Milan Phone: + 39 02 33 60 6013 Fax: + 39 02 33 61 7637 fiere@studiorealini.it Republic of Korea: San Kon Ok, Busan Phone: +82 51 610 1233 Fax: +82 51 610 1232 sk_ok@dongsungco.com Lithuania: Violeta Prelgauskiene, Vilnius Phone: + 370 5 263 91 16 Fax: + 370 5 213 10 13 hamburg.lt@ahk-balt.org Norway: Marit Louise Aadnøy, Gjerdrum Phone: + 47 63 99 07 99 Fax: + 47 63 99 14 77 marit.aadnoy @int-messe.no Romania: Roberta Moldoveanu, Bucharest Phone: + 40 31 40 941 76 Fax: + 40 31 40 941 76 hamburg-messe.romania @rdsmail.ro Spain/Portugal/Andorra: Ana Mamarbachi, Barcelona Phone: + 34 93 412 24 60 Fax: + 34 93 317 24 66 ana.mamarbachi @infonegocio.com Switzerland/ Principality of Liechtenstein: Peter Burger, Zurich Phone: + 41 44 283 61 75 Fax: + 41 44 283 61 00 fairexpert @handelskammerd-ch.ch United Kingdom/Ireland: Nele Andersch, Lymington Phone: + 44 1590 679977 Mobile: + 44 1590 679977 andersch@referencepoint.de Turkey/Northern Cyprus: Ebru Goca, Istanbul Phone: + 90 216 51 80 397 Fax: + 90 216 48 90 594 ebru.goca @hamburg-messe-tr.com USA/Canada: Bruce J. Cole, Rockport Phone: + 1 207 236 61 96 Fax: + 1 207 236 03 69 bcole @McNabbMarketing.com Information on SMM 2012 If you require exhibitor or visitor information on SMM 2012, please contact: Phone: +49 (0) 40 – 35 69 - 21 46/ - 21 47 Fax: +49 (0) 40 – 35 69 - 21 49 info@smm-hamburg.com www.smm-hamburg.com Illustration: Ulstein Group Project volumes are enormous but banks are taking a conservative approach to lending. How does ship finance influence shipbuilding? Should governments take action to provide support? It is true that the financial crisis has not exactly made it easier to finance such large projects. But we have been enjoying excel- Slowly but surely, the shipping world is saying goodbye to heavy oil. Striving to improve its CO2 record, the shipping industry is beginning to turn to a new fuel: LNG. Photos: HMI The global economic upswing is energising the transport sector. How strong is your optimism for the future? I am quite optimistic. We mainly build cruise ships. In our business, the transport segment is not very influential. We are suppliers to the tourism industry. But as the economic situation improves, so does world trade in general, and passenger shipping in particular. Since the cruise ship segment has been growing healthily in recent years, How important is the maritime industry for Europe? Would you favour governments taking a more active role in supporting the industry, and how should this be done? Shipyards and their suppliers, along with ports and shipping companies, continue to play an important role in all of Europe. However, the issues arising from distorted competitive conditions cannot be resolved within Europe. In the competitive situation vis-àvis the Asian shipbuilding nations, creating a level playing field will require a different set of political tools and mechanisms. Cleaner with LNG Illustration: DNV we are rather confident. Both shipowners and analysts are predicting continuous positive growth rates for a long period of time. Especially in Europe this market is far from saturated. calls for more decisive government action to create a level global playing field. Masters of heavy lifting Adequate infrastructure Illustration: SEA-CARGO AS Cruise ship: “AIDAsol” is the most recent achievement of Meyer Werft shipyard. CEO Bernhard Meyer is the Chairman of the Community of European Shipyards΄ Associations. Photo: Eidesvik F ollowing a consolidation phase in the wake of the crisis, Europe’s shipyards and suppliers are looking ahead with renewed confidence. Bernhard Meyer, CEO of Meyer Werft shipyard and Chairman of the Community of European Shipyards’ Associations (CESA), believes the industry’s focus on building specialised ships is the right approach. An excellent cooperation between shipyards and their suppliers and a strong commitment to quality and innovation can ensure the competitiveness of European shipbuilders – provided their prices are right. In this context, the Chairman of CESA Photo: Christian Wyrwa Photo: www.miwefotos.de lent, long-lasting business relationships with our banks. Of course, besides good credentials and solid financing models as well as customers with good credit ratings, in a business environment like ours shipyards need export credit guarantees. Cruise ships, offshore supply vessels, mega yachts: European shipyards are putting their bets on niche markets. How can they maintain their technological leadership? We must prevail by delivering innovation and superior quality while adhering to delivery schedules. Another important aspect is the cost-performance ratio. Europeans must offer competitive prices on the world market. No 1 Photo: Reederei Jüngerhans “To prevail we must deliver innovation and superior quality” | 2011 Photo: Hasenpusch | No 1 2011 Photo: Dreamstime/Daliscot55 No 1 SMM news SMM news SMM news shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 Henrik O. Madsen, CEO of the Norwegian classification society DNV. The new DNVclassed tanker Triality is scheduled to go on her maiden voyage in 2014. “This ship uses established technology and is especially environment-friendly and appealing even from a financial perspective,” says the CEO of DNV. Compared to a conventional supertanker, Triality will emit 34% less CO2 and consume 25% less energy. NOx emissions will be 82% less, and sulphur oxides as much as 94% less than with a conventional HFO system. News from Seatrade Europe Upswing ahead The recent economic upturn and dynamic growth has reached the transport sector and will eventually benefit the shipbuilding industry as well. T Over 14 million TEU January 2010 (37.3%). In early 2011, the all-container ship fleet comprised about 4,900 units with 14.1 million container spaces; 258 new units with a total capacity of 1.3 million TEU were delivered last year. The original plans had been for 462 deliveries totalling 2 million TEU, says the ISL. On the Rebound Taking a closer look at the containership market, shipyards’ order books were on the decline until mid-2010, according to the German Institute of Shipping Economics and Logistics (ISL). The second half of the year saw a rise in new orders. In early January 2011, the global order book listed 611 vessels with a total capacity of 3.8 million TEU, equivalent to about 27.2% of the current container fleet in service. This ratio was substantially lower than in Based on the order book, the fleet will grow 11.9% this year and 9% next year. The World shipbuilding 2007 Completions New orders 80,000 Figures in ’000 CGT CESA based on IHS Fairplay 70,000 60,000 2004 2005 50,000 40,000 2000 1999 number of ships scrapped, while below the 2009 level (377,000 TEU), remained comparatively high at 126,000 TEU in 2010. The volume of inactive tonnage has been dropping steadily. AXS Alphaliners reported 145 ships totalling 330,500 TEU in early 2011, expecting a further drop to 150,000 TEU. During the peak of the crisis in 2009, 12% of the fleet were sitting idle. Shipping companies weathered the crisis by slow-steaming and postponing orders. 90,000 Demand and supply 2003 2001 All this is good news for the Seatrade Europe Cruise & Rivercruise Convention 2011 to be held on Hamburg Fair site from 27 to 29 September 2011. With products from cabin interiors and kitchen equipment to audio, lighting and IT systems, the “Suppliers’ Workshop” on the second day of the trade fair will showcase the full range of supplier offerings and provide a networking opportunity for industry professionals. Apart from presentations by three worldwide leaders in the cruise ship building industry (Fincantieri, Meyer Werft / Neptun and STX France) there will be ten-minute “speed dates” for suppliers to introduce themselves to the shipyards’ chief purchasers. Pre-registration is required: www.seatrade-europe.com Shipbuilding: The order books of Europe's cruise ship builders are full. 2002 30,000 20,000 smm-hamburg.com 2010 2006 2008 2009 Photo: STX Europe The world fleet tonnage grew by 8.5% (2009: 5.7%) to 983 million GT (2000: 906). The same trend could be observed in the container fleet tonnage, which grew 8.7% (2009: 4.9%). Bulk carriers were up 17.2% (2009: 7.8%), whereas the tanker fleet tonnage grew by 3.7% (2009: 9.2%). According to Clarkson Research, 7,191 new ships with a combined tonnage of 137.7 million CGT were on order globally. L eisure cruises continue to be a hot selling item in international tourism. According to Seatrade Insider, there are currently newbuilding orders for as many as 21 cruise ships totalling 53,000 bunks, with a total value of 13.3 billion US dollars. The market is equally attractive for suppliers and service providers: In 2009, ship owners spent about 5.4 billion euros on equipment, services and provisions in Europe alone. Photo: MEYER WERFT GmbH he economic recovery has been surprisingly vigorous. According to the IMF, the world economy grew by 5% in 2010. This helped the transport sector, which grew by 12%. A study by Deutsche Bank Research reports that “global container traffic increased by 11% or more last year after having seen a decline in 2009 for the first time in recorded history (minus 9%)”. Experts expect a 7% growth in 2011 and 2012. The prospects are promising for the next SMM. “Norwegian Epic”: Yards such as STX France need capable suppliers for their new cruise ships. I n relation to the volume of goods transported, there is hardly a mode of transportation less damaging to the environment than shipping. No more than three per cent of global noxious emissions are attributable to ship traffic. But that isn’t good enough: with the ultimate goal of a zero-emission ship in mind, the industry has been on a quest for alternatives to sulphur-laden HFO. The “green wave” is getting a push from politics. The pressure from governments and the public to enforce stricter emissions rules is growing. The Emission Control Areas (ECAs) in the North Sea, the Baltic and along the North-American coastlines impose tight limits (see insert). Other regions, such as the Mediterranean, will follow suit. These new restrictions have a major impact on ship design. “Considering that a ship has a service life of 25 years, we need new concepts now to improve the CO2 balance of the shipping industry sustainably,” says Spyros Polemis, Chairman of the International Chamber of Study: Norwegian classification society DNV presented a model for an innovative LNGpropelled supertanker. the main fuel, is carried on board in vacuum-insulated thermal tanks. The results are impressive: NOx emissions have been cut by 155 tonnes per year, an 88% reduction compared to a diesel power plant. CO2 emissions have been reduced by 21%, or 2,230 tonnes per year. Experts are working feverishly on new LNG propulsion solutions. “I am convinced that by the year 2020 most shipowners will be ordering LNG-powered ships,” says Pioneer: The oil platform supply vessel “Viking Energy” was the first such ship to run primarily on natural gas. Shipping (ICS). When chairing the first-ever global maritime environmental congress, gmec (see insert) last year, Polemis took a closer look at the future of ship propulsion – a future that has “liquefied natural gas” (LNG) written all over it. Natural gas is liquefied at –162 °C to shrink its volume by a factor of 600. Norwegian owner Eidesvik’s oil platform supply vessel “Viking Energy” was the world’s first ship equipped with a dual-fuel electric propulsion system. LNG, S Ebru Goca from Turkish Partner Goca Exhibitions agreed: “The strong support we received from the Turkish government Svenja (Sietas Type 183), 160 metres in length, is equipped with two gigantic cranes boasting a joint lifting capacity of 2,000 metric tonnes. The previous champions of the fleet, both Sietas Type 176 vessels, could carry “only” 12,000 tonnes of cargo, and their twin cranes were rated 700 tonnes Floating powerhouse: “Industrial Freedom” owned by Intermarine taking a wind turbine to the installation site. World champions: “Lone” and her sister ship “Svenja” are the world’s largest heavy lift transport vessels. As all these examples show, liquefied natural gas is a force to reckon with. Building up an adequate refuelling infrastructure will accelerate its popularisation. Northern Europe has taken the lead. each. “Our two new heavy lift vessels are going to be our specialists for the most complex and demanding jobs,” explains Lars Rolner, Managing Partner of SAL. plants. The booming offshore oil and gas business and the equally promising wind power industry are sure to keep the owners and builders of these vessels busy for a while. Svenja’s ‘tween deck contains a huge 107 m × 17 m × 13.6 m cargo hold for up to 11,000 tonnes of cargo. Capable of sailing with open hatches, the vessel can even transport items extending above the hatch cover level without a problem. to lift the cargo onto a pontoon which would be towed to a special heavy lift vessel from where it was installed. “Jumbo Javelin” and “Fairplayer” can jointly lift up to 1,800 tonnes and are equipped with winch systems allowing them to carry out installation of parts weighing up to 1,000 tonnes in water depths of up to 900 metres, or 200-tonne parts in 3,000 metres. Much like “Svenja” and “Lone”, Dutch owner Jumbo Shipping’s “Jumbo Javelin” and “Fairplayer” are equipped with dynamic positioning systems allowing them not only to load and transport but also to place their loads with high precision at the point of installation. In the past, these were separate steps of the installation process: a floating crane had Beat that: In tandem operation, the two cranes on board “Svenja” (SAL Heavy Lifting) can handle loads of up to 2,000 tonnes. Both cranes were built by German specialist Neuenfelder Maschinenfabrik, a subsidiary of Sietas shipyard. lenty of power for heavy lifting and precision control for load placement: Ship-mounted cranes play a vital role today. The rapid increase of offshore installations has boosted demand for heavy lifting capabilities. Crane sizes have reached stunning dimensions. In the 1970s, an average shipboard crane had a lifting capacity of five to ten metric tonnes. Today, mast cranes (e.g. Huisman-Itrec) lift up to 900 tonnes, slewing tower cranes (such as an NMF) do up to 1,000 tonnes. Deploying them in tandem doubles that lifting capacity. Cranes capable of handling from 80 tonnes upwards are called heavy lift cranes. Since they are considerably slower than smaller units, they frequently feature an auxiliary lifting system allowing them to move smaller loads more rapidly. This gives craneequipped ships added flexibility. Flexible all-rounders Laying pipeline, exploring oil and gas deposits, maintaining offshore structures – there is plenty of specialised work to be done at sea, and only specialised, sophisticated ships can do it. Breakthrough: The multi-purpose RoRo ships being built for Norwegian owner Sea-Cargo will be propelled by LNG. A Industry gathering: SMM Istanbul took place from 26 to 28 January at the Bosporus. and the Undersecretariats for Maritime Affairs and Defence Industries as well as from all the industry and professional organisations has shown that we are investing in a market with a great future.“ Apart from numerous Turkish shipyards P venja” and “Lone” are the names of the two largest, most technically advanced heavy lift vessels the world has ever seen. The two sister ships were built by J. J. Sietas shipyard, Hamburg, for the German heavy lift and project cargo shipping company SAL which is headquartered at Steinkirchen near Hamburg. The heavy lifters move everything too big to fit into a container: turbines, generators, oil platform components, machines and entire Business at the Bosporus: SMM in Istanbul bout 140 exhibiting companies from 25 different countries; 2,600 visitors from 40 nations: The outcome of the SMM Istanbul from 26 to 28 January was encouraging. “The Turkish shipbuilding industry had been hit hard by the economic and financial crisis. But it has come around and will play a key role in the future. We want to support this development,” emphasised Peter Bergleiter, Project Director of SMM at Hamburg Messe und Congress GmbH (HMC), in his review of the trade fair. Sheer muscle: deck cranes As single cargo items are getting larger and heavier, a new generation of heavy lift vessels stands ready to face the challenge. Japanese shipowner NYK Line has presented a new LNG containership design. The 353 m “NYK Super Eco Ship 2030” has a capacity of 8,000 TEU. Her main power source will be a fuel cell plant using LNG. While dual-fuel propulsion systems capable of burning boil-off gas are common on large LNG tankers, rising gas prices have prompted some owners to build LNG tankers propelled by HFO while using on-board reliquefaction systems for the boil-off gas. This is clearly not going to help the environmental balance of shipping. Forward-thinking companies, such as Dutch owner Anthony Veder, believe in LNG propulsion: Veder has ordered a new, 156 m, 15,600-cubic-metre short sea LNG tanker from Meyer Werft, Germany, that will be propelled by an LNG power plant satisfying the strictest environmental standards. | 2011 and suppliers to the shipbuilding industry, several well-known exhibitors from Asia and Europe showcased their products and services at SMM Istanbul 2011. Among the highlights of the event was the “Green Shipping” session on the second day. T he general economic recovery in many countries will also help the maritime industry,” says Haakon Haland, Fund Manager at Plenum Maritime Fund. Builders and operators of specialised craft in particular are in high demand. The increasing need for energy is driving offshore oil and gas exploration as well as wind farm development, both of which depend heavily on advanced maritime technology. For example, innovative, high-tech vessels are to tackle the enormous challenges of tapping ultra-deepwater oil deposits off the coasts of Brazil and western Africa. Seven anchor tugs were ordered recently by the Brazilian offshore services company Norskan. SMM Green Shipping Guide 2011 F ollowing the successful launch of the new title in 2010, Seatrade and SMM have joined forces again to update this publication focusing on how shipping is going green, the challenges associated in keeping ahead of regulations and the exciting technology that will shape the ships of tomorrow. SMM Green Shipping Officially endorsed by featuring Guide 2011 A powerful advertising vehicle that sets out to focus on shipping's greatest challenge – the best way to go green and delivering a uniquely targeted high profile global audience. The Green Agenda is non-stop Following the successful launch of this new title in 2010, Seatrade and SMM have joined forces again to update this publication focussing on how shipping is going green, the challenges associated in keeping ahead of regulations and the exciting technology that will shape the ships of tomorrow. The 2011 edition will include interviews and opinions from the world's leading shipping executives, environmentalists and regulators plus a series of articles highlighting green innovations and technical solutions from around the globe. Unique niche audiences 10,000 copies will be printed for distribution to all SMM exhibiting companies and to the VIPs and delegates that attended gmec plus the September issues of Seatrade magazine and Seatrade Cruise Review. Plus a unique bonus distribution at major worldwide shipping events in autumn 2011 including:- Kormarine Expo Busan Europort Holland NEW will be a special focus on Asia and how Asian shipowners, shipbuilders, and marine equipment manufacturers are addressing the green agenda. ...and many more The SMM Green Shipping Guide 2011 will also appear online at smm-hamburg.com, at Seatrade's website: seatrade-global.com and at Seatrade's new Asia portal seatrade-asia.com For editorial matters please contact: Mary Bond, Phone: +44 1206 545121 email: mary@seatrade-global.com For advertising details please contact: Simon O’Connell, Phone: +44 1206 545121 email: soconnell@seatrade-global.com Published by High-tech equipment: Many specialised vessels must meet extreme demands regarding flexibility and versatility. The wind power projects in the North Sea and the Baltic are typical deployment areas for specialised offshore supply vessels (OSV). Thorsten Herdan, Vice President and Managing Director of the German “Offshore Windenergie” foundation, estimates that around 60 billion euros will be spent on wind farms there until 2030. Some of this capital will go towards specialised jack-up installation vessels. “We anticipate orders for a minimum of 20 installation ships and an even larger number of additional smaller service ships needed for repair and maintenance,” Herdan says. Specialising in oil & gas projects Rasmus Stute, Head of GL’s Offshore Service Vessels Department, agrees that the need for specialised ships will increase rapidly: “On a global scale we expect a demand of 40 to 50 installation vessels since China and the U.S. are also beginning to invest in this technology.” A sense of eager anticipation has gripped the entire industry: Indonesian shipbuilding company Drydocks World recently introduced its new Anchor Handling Offshore Support Vessel “Olympus Crest”. This OSV is 76 m long, 18.5m wide and has a 6.8-m draught. Its owner, Pacific Crest Pte Ltd, is a subsidiary of Pacific Radiance Group, Singapore, which specialises in solutions for deepwater oil and gas exploration and production. Special ship: Ulstein's “SX 121” is a large, flexible offshore vessel designed for installation, inspection, maintenance and repair of submerged offshore installations. Last year Italian shipbuilding company Fincantieri entered the market with a series of 14 new Anchor Handling Tug Supply (AHTS) vessels. At a length of 68 m, these ships have a carrying capacity of 3,000 tonnes. Some specialised ships are conversions, such as the former bulk carrier “Audacia” which is now a pipelayer. The vessel is 225 m long. The so-called stinger, the frame used to lower the pipeline into the water, adds another 110 metres. The ship can install up to seven kilometres of pipeline per day in water up to 1,800 m deep. It is typically used to connect offshore oil platforms or oil and gas fields in the North Sea to onshore pipeline systems. Nexans’ cable-laying vessel “Skagerrak” was lengthened by 12.5m last year. Her first job will be to install nearly 300 kilometres of high-voltage cable in the North Sea. SMM representative offices worldwide Argentina/Brazil: María Gabriela Troncoso, Buenos Aires Phone: + 54 11 48 22 62 92 Fax: + 54 11 48 22 62 92 gabar@cponline.org.ar Belgium/Luxembourg: Matthias Popp, Brussels Phone: + 32 2 20 40 189 Fax: + 32 2 20 32 271 popp@debelux.org Denmark/Faroe Islands/ Greenland/Iceland: André Minier, Herlev Phone: + 45 44 84 66 99 Fax: + 45 44 84 82 66 andre@standesign.dk Austria/Slovenia: Robert Mittermann, Vienna Phone: + 43 1 285 75 85 0 Fax: + 43 1 285 75 85 50 robert.mittermann @messeservice.at P.R. China: Dong Yini, Shanghai Phone: +86 21 6875 8536 *1619 Fax: +86 21 6875 85735619 dong.yini@sh.china.ahk.de Estonia: Elo Saari, Tallinn Phone: + 372 6 27 69 46 Fax: + 372 6 27 69 50 hamburg.ee@ahk-balt.org Finland: Mikko Nummi, Helsinki Phone: + 358 9 61 22 12 16 Fax: + 358 9 64 28 59 mikko.nummi@dfhk.fi India: K.V. Rajeevan, Haryana Phone: +91 124 4524202/3 Fax: +91 124 4524227 rajeevan.kv@interads.in Japan: Yuko Ikeda, Tokyo Phone: +81 3 64264252 Fax: +81 3 57506863 yuko.ikeda@hhjp.jp Latvia: Vineta Šķ ē rī te, Riga Phone: + 371 7 32 07 18 Fax: + 371 7 83 04 78 hamburg.lv@ahk-balt.org The Netherlands: Cora Burger, Apeldoorn Phone: + 31 55 533 0 400 Fax: + 31 55 533 0 360 media@fairformat.nl Poland: Krzysztof Karaś, Warsaw Phone: + 48 22 620 71 98 Fax: + 48 22 654 48 61 karas@eurotargi.com Greece/Cyprus: Dimitra Tsatsani, Thessaloniki Phone: + 30 2310 32 77 33 Fax: + 30 2310 32 77 37 d.tsatsani @mail.ahk-germany.de Russian Federation: Konstantin Chernov, St. Petersburg Phone: + 7 812 335 19 69 Fax: + 7 812 335 19 69 hmcrf@mail.ru Italy: Liliana Realini, Milan Phone: + 39 02 33 60 6013 Fax: + 39 02 33 61 7637 fiere@studiorealini.it Republic of Korea: San Kon Ok, Busan Phone: +82 51 610 1233 Fax: +82 51 610 1232 sk_ok@dongsungco.com Lithuania: Violeta Prelgauskiene, Vilnius Phone: + 370 5 263 91 16 Fax: + 370 5 213 10 13 hamburg.lt@ahk-balt.org Norway: Marit Louise Aadnøy, Gjerdrum Phone: + 47 63 99 07 99 Fax: + 47 63 99 14 77 marit.aadnoy @int-messe.no Romania: Roberta Moldoveanu, Bucharest Phone: + 40 31 40 941 76 Fax: + 40 31 40 941 76 hamburg-messe.romania @rdsmail.ro Spain/Portugal/Andorra: Ana Mamarbachi, Barcelona Phone: + 34 93 412 24 60 Fax: + 34 93 317 24 66 ana.mamarbachi @infonegocio.com Switzerland/ Principality of Liechtenstein: Peter Burger, Zurich Phone: + 41 44 283 61 75 Fax: + 41 44 283 61 00 fairexpert @handelskammerd-ch.ch United Kingdom/Ireland: Nele Andersch, Lymington Phone: + 44 1590 679977 Mobile: + 44 1590 679977 andersch@referencepoint.de Turkey/Northern Cyprus: Ebru Goca, Istanbul Phone: + 90 216 51 80 397 Fax: + 90 216 48 90 594 ebru.goca @hamburg-messe-tr.com USA/Canada: Bruce J. Cole, Rockport Phone: + 1 207 236 61 96 Fax: + 1 207 236 03 69 bcole @McNabbMarketing.com Information on SMM 2012 If you require exhibitor or visitor information on SMM 2012, please contact: Phone: +49 (0) 40 – 35 69 - 21 46/ - 21 47 Fax: +49 (0) 40 – 35 69 - 21 49 info@smm-hamburg.com www.smm-hamburg.com Illustration: Ulstein Group Project volumes are enormous but banks are taking a conservative approach to lending. How does ship finance influence shipbuilding? Should governments take action to provide support? It is true that the financial crisis has not exactly made it easier to finance such large projects. But we have been enjoying excel- Slowly but surely, the shipping world is saying goodbye to heavy oil. Striving to improve its CO2 record, the shipping industry is beginning to turn to a new fuel: LNG. Photos: HMI The global economic upswing is energising the transport sector. How strong is your optimism for the future? I am quite optimistic. We mainly build cruise ships. In our business, the transport segment is not very influential. We are suppliers to the tourism industry. But as the economic situation improves, so does world trade in general, and passenger shipping in particular. Since the cruise ship segment has been growing healthily in recent years, How important is the maritime industry for Europe? Would you favour governments taking a more active role in supporting the industry, and how should this be done? Shipyards and their suppliers, along with ports and shipping companies, continue to play an important role in all of Europe. However, the issues arising from distorted competitive conditions cannot be resolved within Europe. In the competitive situation vis-àvis the Asian shipbuilding nations, creating a level playing field will require a different set of political tools and mechanisms. Cleaner with LNG Illustration: DNV we are rather confident. Both shipowners and analysts are predicting continuous positive growth rates for a long period of time. Especially in Europe this market is far from saturated. calls for more decisive government action to create a level global playing field. Masters of heavy lifting Adequate infrastructure Illustration: SEA-CARGO AS Cruise ship: “AIDAsol” is the most recent achievement of Meyer Werft shipyard. CEO Bernhard Meyer is the Chairman of the Community of European Shipyards΄ Associations. Photo: Eidesvik F ollowing a consolidation phase in the wake of the crisis, Europe’s shipyards and suppliers are looking ahead with renewed confidence. Bernhard Meyer, CEO of Meyer Werft shipyard and Chairman of the Community of European Shipyards’ Associations (CESA), believes the industry’s focus on building specialised ships is the right approach. An excellent cooperation between shipyards and their suppliers and a strong commitment to quality and innovation can ensure the competitiveness of European shipbuilders – provided their prices are right. In this context, the Chairman of CESA Photo: Christian Wyrwa Photo: www.miwefotos.de lent, long-lasting business relationships with our banks. Of course, besides good credentials and solid financing models as well as customers with good credit ratings, in a business environment like ours shipyards need export credit guarantees. Cruise ships, offshore supply vessels, mega yachts: European shipyards are putting their bets on niche markets. How can they maintain their technological leadership? We must prevail by delivering innovation and superior quality while adhering to delivery schedules. Another important aspect is the cost-performance ratio. Europeans must offer competitive prices on the world market. No 1 Photo: Reederei Jüngerhans “To prevail we must deliver innovation and superior quality” | 2011 Photo: Hasenpusch | No 1 2011 Photo: Dreamstime/Daliscot55 No 1 SMM news shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 | No 1 2011 Technology fends off pirates Banks are finally willing to provide more capital for new ships. Alternative financing models are gaining in importance. Today’s maritime security threats cannot be addressed effectively without coordinating civilian security and military defence activities. The MS&D international conference and exhibition on maritime security and defence Hamburg will provide an ideal platform for promoting these efforts. Photo: Baycrest External finance: Beijing’s China Development Bank is shopping in Europe. No doubt, the general morale is improving: “We are ready to do business once again,” says Dr Holger Janssen, head of the ship finance department at UniCredit. But the times of aggressive financing structures in shipping with redemption-free years or equity pre-financing in return for placement guarantees are over. One thing is for certain: “While you will always find financing for good business, ship-owning companies must have much more capital of their own to show today than before the crisis,” says expert Max Johns (refer to interview). Not only have the banks become more cautious, but the tighter regulation of the finance sector (Basel II/III) is an additional limiting factor for lenders in ship financing. to be the preferred financing method. Investors still have not fully overcome the past market turmoil and are shunning the entrepreneurial risk inherent in ship investment – another reason for shipowners to look for alternative sources of equity and be more accessible for the capital market. “Private placements will increase in number,” says Hamburg-based finance expert Albrecht Gundermann. According to reports, HapagLloyd, for example, has recently teamed up with Onyx, a government-owned investor from the Sultanate of Oman. Then there is always the option for large container shipping companies to go public. Out of 44 shipping companies listed on the New York City Stock Exchange, no more than four are container-only. Experts believe there is much more potential. More money from the Far East Increased capital requirements due to larger ship sizes as well as tougher regulation of the banking sector will reinforce the trend towards syndicated loans, thereby spreading the risks and internationalising the financing schemes. “We expect Asian banks in particular to gain in importance for the ship finance market,” says Ralf Bredranowsky, Global Co-Head of DB Shipping. China Development Bank’s tie-up with German ship finance bank HSH Nordbank supports that notion although experts caution not to expect an inrush of foreign capital from the Far East for the European shipping industry. The market is still good for many surprises and it supplies a host of discussion topics for the 4th SMM Ship Finance Forum to be held on September 3rd, one day prior to SMM 2012 in Hamburg. In Germany, where about one third of the global containership fleet is financed, the traditional “KG model” will likely continue You can always get financing for a sound project Are there any alternatives to the KG model? There are several alternatives on the international market but not all of them are entirely suitable for the German market. For example, private placements have become more popular again recently. It remains to be seen whether more German shipping companies will choose to go public. This would allow them to make much better use of the bond market than before. Do you anticipate an increasing involvement of Chinese banks, and if so, in what form? We are not expecting a sudden shift of ship finance to Asian banks. Of course, banks, and in particular, Chinese banks will intensify their involvement in syndicated financing arrangements. There is nothing abnormal about that; rather, it is appropriate considering the role Asia is playing in the shipping and financial markets. German ship-owning companies, however, are typi- cally medium-sized businesses with very close ties to their respective banks. Many crisis-related issues have been resolved successfully because of that. It is important to maintain these close relationships. N early 1,200 seamen were kidnapped during the year 2010. The constant threat of pirate attacks, carried out with increasingly sophisticated equipment and growing brutality, especially off the coast of Somalia and in the Indian Ocean, has made security a major concern of international shipping. High-level event Piracy will be among the top items on the agenda of this year’s international conference and exhibition on maritime security and defence (MS&D) in Hamburg from 15 to 17 June 2011. The MS&D offers a unique forum for decision makers and high-level experts from all over the world to present new technologies and discuss current security issues at the concurrent international conference. With a festive opening ceremony, a reception and an official dinner, the special events programme will provide plenty of networking opportunities. The panel sessions on defence and security topics will feature delegations of distinguished international experts. For program information and to register please visit www.msd-hamburg.com Infrared cameras capable of sensing the presence of pirates at any time of day or night, ultrasonic guns for fending off attackers on skiffs, improved equipment for onboard shelters – shipowning companies are investing heavily to better protect their ships and crews. PITAS (Pirate and Terrorist Aversion System), a cooperative project under the auspices of navigation specialist Raytheon Anschütz, relies on early warning systems, evasion manoeuvres and de-escalation strategies. The British armaments group BAE Systems recently presented the prototype of a laser gun that could be installed on board any merchant ship to blind attackers up to two kilometres away to prevent a gunfire attack. But ultimately the best choice is to leave matters to the maritime security professionals: “Protecting sea routes, carrying out reconnaissance operations, defending ships against piracy and policing sea areas far away from their home waters has become daily routine for naval forces,” says Ulrich Otto, Chairman of the MS&D Conference Defence Panel. The retired Rear Admiral was Director of the Naval Bureau of the German Navy until 2008. Navies of several countries have been providing assistance during the North African crisis. The naval units deployed under the Atalanta mandate have succeeded in protecting ships against pirates and in freeing kidnapped vessels on numerous occasions. As the example of piracy shows, civilian security and military defence forces join hands in an increasing number of situations. This is reflected in the agenda of the MS&D convention, which also touches subjects such as the fight against smug- gling and terrorism, protection of the environment and port security. Operating over an extended period of time with limited resources far away from the home port places high demands on naval logistics and requires new strategies, modular structures and innovative engineering solutions. This year’s focus of the concurrent MS&D trade fair is on unmanned systems. Specialised ships also play an ever more important role in this scenario. Under the Joint High Speed Vessel (JHSV) programme, Austal is now building five multipurpose catamarans that will be used by the U.S. Navy for troop transportation in coastal waters. These fast ships are 103 m in length and will do more than 35 knots. The first one will be delivered at the end of this year. Its four 9,100-kW engines are supplied by German manufacturer MTU. lenght < 290 m | draft < 12 m | < 4,000 TEU 1988–2000 | 4th generation Post-Panamax length < 305 m | draft < 13 m | < 5,000 TEU 2000–2005 | 5th generation Post-Panamax Plus length < 335 m | draft < 14 m | < 8,000 TEU 2006 – | 5th generation new Panamax length < 397 m | draft < 15.5 m | < 14,500 TEU In September 2005, ship classification society Germanischer Lloyd presented a design study developed jointly with Hyundai Heavy Industries for a ship type with a capacity of 13,000 standard containers, which sounded pretty daring in the days of the 9,200-TEU MSC Pamela. Barely a year later, Emma Maersk and her seven sisters outperformed that design by far, taking on as many as 14,700 containers at a hull length of nearly 400m. This is the current standard for large containerships. In 2010 German shipping company Claus-Peter Offen, one of the largest ship charterers, commissioned the first four of a series of nine 14,000-TEU freighters, each 365.5 m in length. smm-hamburg.com Please contact: Travel agency Rauther Ulrike Thomsen Phone: +49 40 724161–70 Fax: +49 40 724161–69 E-mail: hamburg-messe@rauther.de As the large industrialised nations are cutting their military budgets, shipbuilders and their suppliers are hoping for orders from the navies of newly industrialised countries (NIC). China has announced a 12.7% increase of its military spending. As of 2016, several Brazilian-built Scorpèneclass submarines are to be delivered to the Brazilian navy. India is constructing naval ships under licence from French and Spanish shipyards. A selection of services offered is given at: www.rauther.de/fair/smm MS&D 2011 with online tickets W ith roughly 3,000 visitors, the SMM India has clearly established itself as a leading maritime industry fair on the subcontinent. “We have been able to bring the leading brands of the maritime industry to India,” said Peter Bergleiter, Project Director SMM. In his opening keynote address, Secretary K. Mohandas from the Indian Ministry of Shipping underscored the positive development of the industry and the resulting business opportunities. Dr Satish B. Agnihotri, Director General of Shipping & Ex. Officio Additional Secretary to the Govt. of India, stressed the importance of the Maritime Agenda 2020 which aims at quadrupling the current Indian tonnage. More Hamburg Messe highlights Manoeuvre: Container giant “Christophe Colomb” (13,344 TEU) of CMA-CGM in the port of Hamburg. Just a few weeks ago, it was once again Maersk who set a new record in terms of ship dimensions. The Danish shipowning company confirmed orders for ten Triple-E-class vessels from South Korean shipyard Daewoo. At the same length as “Emma Maersk”, these post-Panamax ships are designed for 18,000 standard containers. The larger, the more efficient: “With these new ships we also want to contribute to the reduction of CO2 emissions,” said Maersk Line CEO Eivind Kold- ing. According to him, the carbon dioxide emissions from these vessels will be 50% less than the current standard on the route between Europe and Asia. So will this be the end of the growth trend? Apparently not! The first shipyards are already designing new extended-length vessels capable of sailing from Asia to the U.S. through the expanded Panama Canal. The capacity envisioned for these new Panamax behemoths: 20,000 TEU. 15–17 June 2011 international conference and exhibition on maritime security and defence Hamburg Messe Fairground 27–29 September 2011 Hamburg Messe Fairground 4–7 September 2012 Hamburg Messe Fairground Use the prior registration tool on the web for your MS&D visit. The online ticket shop is now available. Everyone with an invitation from an MS&D exhibitor can activate his admission ticket on the MS&D website. All other MS&D visitors can buy their ticket online at msd-hamburg. com. With an online ticket, every visitor has direct access to the trade fair grounds and does not have to waste time queuing in the entrance area. So register online and save time and money. Smartphone app for mobile exhibitor search SMM India clearly established For the first time, at SMM 2012 Hamburg Messe will also provide an online exhibitor directory for mobile terminals. To access this, you need only an Internet-capable browser on your unit to call up the SMM website smm-hamburg.com than 100 exhibiting companies of the shipbuilding industry showcased their latest developments at the second fair held under the SMM brand in early April. SMM India, a joint project of Hamburg Messe und Congress and its Indian partner, Inter Ads Exhibitions Pvt. Ltd, is held every two years at the Mumbai Exhibition Centre. The simultaneous two-day conference offers decision makers and experts an opportunity to discuss current topics of the industry. “The quality of visitors this year was outstanding,” said Rajan Sharma, Director of Inter Ads Exhibitions. www.smm-india.com IMPRINT Publisher: Hamburg Messe und Congress GmbH Messeplatz 1 20357 Hamburg, Germany Phone: +49 40 3569-0 Fax: +49 40 3569-2149 Editorial office: printprojekt smm-hamburg.com SMM 2012: The Countdown The shipbuilding and supply industries have been enjoying dynamic growth this year. With ship efficiency and environment protection as key challenges, they are redoubling their efforts to develop innovative solutions. It will be exciting to see the new highlights at SMM 2012. Most of the exhibition space has been rented already, and once again SMM is anticipated to be fully booked before the official application deadline. T he wind has turned – and it is helping shipbuilders and their suppliers gather way. The organisers of the leading global trade fair of the shipbuilding sector say: “The number of confirmed exhibitor bookings for SMM 2012 is clearly above the level at the same time two years ago,” says Peter Bergleiter, Project Director SMM at Hamburg Messe und Congress GmbH (HMC). This overwhelming response did not come unexpectedly, according to a survey conducted at SMM 2010. 98% of the exhibitors had announced their intention to return the No time to lose! Application deadline for SMM 2012: 14 October 2011 If you require application forms or visitor information on SMM 2012, please contact: Hamburg Messe und Congress GmbH Project Management MA-3 Messeplatz 1 20357 Hamburg,Germany Phone: +49 40 3569–2146/-2147 Fax: +49 40 3569–2149 smm@hamburg-messe.de smm-hamburg.com Online registration Exhibitors of SMM 2012 can have themselves registered with a click of the mouse via the new paperless electronic online registration system smm-hamburg.com Growth Market: Technically sophisticated multi-purpose ships for offshore work (photo: “Rem Hrist” built by the Norwegian Ulstein Group) are in great demand. next time (see below). Last year’s fair was fully booked, as well, in spite of the difficult economic conditions still affecting the industry. The 24th “shipbuilding, machinery & marine technology international trade fair hamburg” attracted 50,000 industry visitors eager to explore the products and services of 2003 exhibitors from 58 countries. The events abroad – SMM Istanbul in January and SMM India in April – also met with lively interest. Green highlights SMM continues to be the leading international platform of the maritime industry. Every two years, shipbuilders and suppliers April 2011 – Printed in Germany Subject to changes present innovative solutions and technologies to top-class industry representatives from all over the world at the Hamburg event. and optimised hull shapes to efficient fleet management. Minimising the environmental footprint of shipping continues to be an important objective of SMM. “It is our obligation to protect the maritime environment,” said CEO Micky Arison of Carnival, the world’s largest cruise ship operator, during the inaugural event of the global maritime environmental congress (gmec). Following its successful launch, the gmec will be a regular part of the SMM programme in the future to promote the green agenda, from alternative propulsion technologies It is no news the energy sector can benefit from the vast technological competence of the shipbuilding industry in many ways. Highly specialised vessels are used to supply oil platforms and offshore wind turbine installation sites. Heavy lift ships haul gigantic components to their destinations. The maritime know-how of shipyards and component suppliers is in high demand. This is reflected by the global reach of SMM. The success story of the maritime economy and its leading industry showcase continues. Bright prospects Cheerful exhibitors and visitors W Venue: The next SMM India will again take place in Mumbai. Photo: HMC/Z Panamax Photo: HHLA/Thomas Hampel 1980–1988 | 3rd generation You can make your hotel overnight bookings during SMM via the SMM 2012 website www.smm-hamburg. com or the HMC partner FIRST travel agency Rauther, which also provides a comprehensive service for your trip to Hamburg and leisure activities – before, during and after SMM 2010. Perspective: The German navy’s frigate 125 can provide naval support to special forces. E conomies of scale continue to drive the trend towards larger containerships. While the first-generation vessels built until 1968 were 180 metres long and carried 750 TEU, the third generation from 1972 onward had grown to 287 m and four times the capacity. By 1999, 354-m ships carrying more than 8,000 TEU were a common sight. We`ll book a hotel for you Flexible response Containerships: The next generation Containership-Evolution since 1980 you can easily get a great deal done online in the run-up to the fair. 2011 shipbuilding • machinery & marine technology international trade fair • hamburg • 4 –7 sept 2012 HMC offers a comprehensive online service for SMM 2012. Via the SMM website smm-hamburg.com Illustration: ARGE F125/TKMS The German “KG” model has had a long and successful history. Does it have a future? Absolutely. The KG model will always play a major role on the German market. Investors and enterprises trust it. Of course, investing in a ship means acquiring an interest in a firm with all the associated risks. However, it was not the KG model that caused the financing bottlenecks but the global financial crisis. Photo: VDR/H.-J. Hettchen Mr Johns, what will be the longterm consequences of the economic and financial crisis on ship finance? The crisis has changed the scene in the banking sector, including ship finance. The requirements for external finance have become stricter. Shipowners must raise much more capital of their own now. On the equity side, investors are still hesitant due to the volatility of the markets. But then, you can always get financing for a sound project. Expert: Max Johns, spokesperson of the German Shipowners’ Association VDR, teaches Ship Finance at the Hamburg School of Business Administration. Troop Transporter: The multi-purpose catamarans made by Austal do more than 35 knots. No 1 Online service for SMM 2012 Photo: Dbenbenn T he worst is over. Charter rates have recovered in some key segments of the shipping industry, and banks are more willing to provide external finance for new ships. But the financial crisis has left its marks and prompted a sustained change of course in ship finance. The requirements have become tougher for both equity and borrowed capital, paving the way towards alternative forms of financing. Illustration: Austal Ship finance on a new course SMM news | 2011 Photo: Ulstein Group/Arild Solberg No 1 e are extremely pleased with the outcome of this trade event,” said Peter Dan Petersen, summing up his impressions from SMM 2010. The Senior Manager Marketing Communications of ship engine manufacturer MAN Diesel & Turbo repeated what most exhibitors stated in the survey conducted by an independent research institute on behalf of HMC at the end of last year’s SMM. 94% of the exhibiting companies rated the event “very good” to “satisfactory”. 96% said the trade fair had fulfilled their expec- Expectations surpassed: 96 per cent of the participating companies said SMM 2010 fulfilled their expectations. tations, and 98% said they would return in 2012. Nearly as many respondents (97%) confirmed they had made contact with their most important business partners, and 97% said they concluded or made arrangements for business deals. 96% To some extent the success of the event depends on the quantity and quality of exhibitors and visitors. Shipowners, Business success: 97 per cent of the respondents said they concluded one or several deals at SMM 2010 or made arrangements for new deals. smm-hamburg.com shipyards and suppliers were the largest visitor groups; 70% of the exhibitors were shipbuilders or suppliers. The exhibitors found an ideal target audience and vice versa. As many as 68% of the visitors at SMM 2010 were decision makers. 97% Confirming that SMM is considered the flagship event of the maritime trade not only by exhibitors and visitors alike, an overwhelming 96% of the respondents gave it a rating of “good” to “excellent”. Photo: HMC/Z SMM news Stampede: Numerous executives and decision makers from the industry attended SMM 2010 . SMM news shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 shipbuilding • machinery & marine technology international trade fair • hamburg • 4–7 sept 2012 | No 1 2011 Technology fends off pirates Banks are finally willing to provide more capital for new ships. Alternative financing models are gaining in importance. Today’s maritime security threats cannot be addressed effectively without coordinating civilian security and military defence activities. MS&D – international conference and exhibition on maritime security and defence hamburg will provide an ideal platform for promoting these efforts. Photo: Baycrest External finance: Beijing’s China Development Bank is shopping in Europe. No doubt, the general morale is improving: “We are ready to do business once again,” says Dr Holger Janssen, head of the ship finance department at UniCredit. But the times of aggressive financing structures in shipping with redemption-free years or equity pre-financing in return for placement guarantees are over. One thing is for certain: “While you will always find financing for good business, ship-owning companies must have much more capital of their own to show today than before the crisis,” says expert Max Johns (refer to interview). Not only have the banks become more cautious, but the tighter regulation of the finance sector (Basel II/III) is an additional limiting factor for lenders in ship financing. to be the preferred financing method. Investors still have not fully overcome the past market turmoil and are shunning the entrepreneurial risk inherent in ship investment – another reason for shipowners to look for alternative sources of equity and be more accessible for the capital market. “Private placements will increase in number,” says Hamburg-based finance expert Albrecht Gundermann. According to reports, HapagLloyd, for example, has recently teamed up with Onyx, a government-owned investor from the Sultanate of Oman. Then there is always the option for large container shipping companies to go public. Out of 44 shipping companies listed on the New York City Stock Exchange, no more than four are container-only. Experts believe there is much more potential. More money from the Far East Increased capital requirements due to lar ger ship sizes as well as tougher regulation of the banking sector will reinforce the trend towards syndicated loans, thereby spreading the risks and internationalising the financing schemes. “We expect Asian banks in particular to gain in importance for the ship finance market,” says Ralf Bredranowsky, Global Co-Head of DB Shipping. China Development Bank’s tie-up with German ship finance bank HSH Nordbank supports that notion although experts caution not to expect an inrush of foreign capital from the Far East for the European shipping industry. The market is still good for many surprises and it supplies a host of discussion topics for the 4th SMM Ship Finance Forum to be held on September 3rd, one day prior to SMM 2012 in Hamburg. In Germany, where about one third of the global containership fleet is financed, the traditional “KG model” will likely continue You can always get financing for a sound project Are there any alternatives to the KG model? There are several alternatives on the international market but not all of them are entirely suitable for the German market. For example, private placements have become more popular again recently. It remains to be seen whether more German shipping companies will choose to go public. This would allow them to make much better use of the bond market than before. Do you anticipate an increasing involvement of Chinese banks, and if so, in what form? We are not expecting a sudden shift of ship finance to Asian banks. Of course, banks, and in particular, Chinese banks will intensify their involvement in syndicated financing arrangements. There is nothing abnormal about that; rather, it is appropriate considering the role Asia is playing in the shipping and financial markets. German ship-owning companies, however, are typi- cally medium-sized businesses with very close ties to their respective banks. Many crisis-related issues have been resolved successfully because of that. It is important to maintain these close relationships. N early 1,200 seamen were kidnapped during the year 2010. The constant threat of pirate attacks, carried out with increasingly sophisticated equipment and growing brutality, especially off the coast of Somalia and in the Indian Ocean, has made security a major concern of international shipping. High-level event Piracy will be among the top items on the agenda of this year’s international conference and exhibition on maritime security and defence (MS&D) in Hamburg from 15 to 17 June 2011. MS&D offers a unique forum for decision makers and high-level experts from all over the world to present new technologies and discuss current security issues at the concurrent international conference. With a festive opening ceremony, a reception and an official dinner, the special events programme will provide plenty of networking opportunities. The panel sessions on defence and security topics will feature delegations of distinguished international experts. For program information and to register please visit www. msd-hamburg.com Infrared cameras capable of sensing the presence of pirates at any time of day or night, ultrasonic guns for fending off attackers on skiffs, improved equipment for onboard shelters – shipowning companies are investing heavily to better protect their ships and crews. PITAS (Pirate and Terrorist Aversion System), a cooperative project under the auspices of navigation specialist Raytheon Anschütz, relies on early warning systems, evasion manoeuvres and de-escalation strategies. The British armaments group BAE Systems recently presented the prototype of a laser gun that could be installed on board any merchant ship to blind attackers up to two kilometres away to prevent a gunfire attack. But ultimately the best choice is to leave matters to the maritime security professionals: “Protecting sea routes, carrying out reconnaissance operations, defending ships against piracy and policing sea areas far away from their home waters has become daily routine for naval forces,” says Ulrich Otto, Chairman of the MS&D Conference Defence Panel. The retired Rear Admiral was Director of the Naval Bureau of the German Navy until 2008. Navies of several countries have been providing assistance during the North African crisis. The naval units deployed under the Atalanta mandate have succeeded in protecting ships against pirates and in freeing kidnapped vessels on numerous occasions. As the example of piracy shows, civilian security and military defence forces join hands in an increasing number of situations. This is reflected in the agenda of the MS&D convention, which also touches subjects such as the fight against smug- gling and terrorism, protection of the environment and port security. Operating over an extended period of time with limited resources far away from the home port places high demands on naval logistics and requires new strategies, modular structures and innovative engineering solutions. This year’s focus of the concurrent MS&D trade fair is on unmanned systems. Specialised ships also play an ever more important role in this scenario. Under the Joint High Speed Vessel (JHSV) programme, Austal is now building five multipurpose catamarans that will be used by the U.S. Navy for troop transportation in coastal waters. These fast ships are 103 m in length and will do more than 35 knots. The first one will be delivered at the end of this year. Its four 9,100-kW engines are supplied by German manufacturer MTU. lenght < 290 m | draft < 12 m | < 4,000 TEU 1988–2000 | 4th generation Post-Panamax length < 305 m | draft < 13 m | < 5,000 TEU 2000–2005 | 5th generation Post-Panamax Plus length < 335 m | draft < 14 m | < 8,000 TEU 2006 – | 5th generation New Panamax length < 397 m | draft < 15.5 m | < 14,500 TEU In September 2005, ship classification society Germanischer Lloyd presented a design study developed jointly with Hyundai Heavy Industries for a ship type with a capacity of 13,000 standard containers, which sounded pretty daring in the days of the 9,200-TEU MSC Pamela. Barely a year later, Emma Maersk and her seven sisters outperformed that design by far, taking on as many as 14,700 containers at a hull length of nearly 400m. This is the current standard for large containerships. In 2010 German shipping company Claus-Peter Offen, one of the largest ship charterers, commissioned the first four of a series of nine 14,000-TEU freighters, each 365.5 m in length. smm-hamburg.com Please contact: Travel agency Rauther Ulrike Thomsen Phone: +49 40 724161–70 Fax: +49 40 724161–69 E-mail: hamburg-messe@rauther.de As the large industrialised nations are cutting their military budgets, shipbuilders and their suppliers are hoping for orders from the navies of newly industrialised countries (NIC). China has announced a 12.7% increase of its military spending. As of 2016, several Brazilian-built Scorpèneclass submarines are to be delivered to the Brazilian navy. India is constructing naval ships under licence from French and Spanish shipyards. A selection of services offered is given at: www.rauther.de/fair/smm MS&D 2011 with online tickets W ith roughly 3,000 visitors, the SMM India has clearly established itself as a leading maritime industry fair on the subcontinent. “We have been able to bring the leading brands of the maritime industry to India,” said Peter Bergleiter, Project Director SMM. In his opening keynote address, Secretary K. Mohandas from the Indian Ministry of Shipping underscored the positive development of the industry and the resulting business opportunities. Dr Satish B. Agnihotri, Director General of Shipping & Ex. Officio Additional Secretary to the Govt. of India, stressed the importance of the Maritime Agenda 2020 which aims at quadrupling the current Indian tonnage. More Hamburg Messe highlights Manoeuvre: Container giant “Christophe Colomb” (13,344 TEU) of CMA-CGM in the port of Hamburg. Just a few weeks ago, it was once again Maersk who set a new record in terms of ship dimensions. The Danish shipowning company confirmed orders for ten Triple-E-class vessels from South Korean shipyard Daewoo. At the same length as “Emma Maersk”, these post-Panamax ships are designed for 18,000 standard containers. The larger, the more efficient: “With these new ships we also want to contribute to the reduction of CO2 emissions,” said Maersk Line CEO Eivind Kold- ing. According to him, the carbon dioxide emissions from these vessels will be 50% less than the current standard on the route between Europe and Asia. So will this be the end of the growth trend? Apparently not! The first shipyards are already designing new extended-length vessels capable of sailing from Asia to the U.S. through the expanded Panama Canal. The capacity envisioned for these new Panamax behemoths: 20,000 TEU. 15–17 June 2011 international conference and exhibition on maritime security and defence Hamburg Messe Fairground 27–29 September 2011 Hamburg Messe Fairground 4–7 September 2012 Hamburg Messe Fairground Use the prior registration tool on the web for your MS&D visit. The online ticket shop is now available. Everyone with an invitation from an MS&D exhibitor can activate his admission ticket on the MS&D website. All other MS&D visitors can buy their ticket online at msd-hamburg. com. With an online ticket, every visitor has direct access to the trade fair grounds and does not have to waste time queuing in the entrance area. So register online and save time and money. Smartphone app for mobile exhibitor search SMM India clearly established For the first time, at SMM 2012 Hamburg Messe will also provide an online exhibitor directory for mobile terminals. To access this, you need only an Internet-capable browser on your unit to call up the SMM website smm-hamburg.com than 100 exhibiting companies of the shipbuilding industry showcased their latest developments at the second fair held under the SMM brand in early April. SMM India, a joint project of Hamburg Messe und Congress and its Indian partner, Inter Ads Exhibitions Pvt. Ltd, is held every two years at the Mumbai Exhibition Centre. The simultaneous two-day conference offers decision makers and experts an opportunity to discuss current topics of the industry. “The quality of visitors this year was outstanding,” said Rajan Sharma, Director of Inter Ads Exhibitions. www.smm-india.com IMPRINT Publisher: Hamburg Messe und Congress GmbH Messeplatz 1 20357 Hamburg, Germany Phone: +49 40 3569-0 Fax: +49 40 3569-2149 Editorial office: printprojekt smm-hamburg.com SMM 2012: The Countdown The shipbuilding and supply industries have been enjoying dynamic growth this year. With ship efficiency and environment protection as key challenges, they are redoubling their efforts to develop innovative solutions. It will be exciting to see the new highlights at SMM 2012. Most of the exhibition space has been rented already, and once again SMM is anticipated to be fully booked before the official application deadline. T he wind has turned – and it is helping shipbuilders and their suppliers gather way. The organisers of the leading global trade fair of the shipbuilding sector say: “The number of confirmed exhibitor bookings for SMM 2012 is clearly above the level at the same time two years ago,” says Peter Bergleiter, Project Director SMM at Hamburg Messe und Congress GmbH (HMC). This overwhelming response did not come unexpectedly, according to a survey conducted at SMM 2010. 98% of the exhibitors had announced their intention to return the No time to lose! Application deadline for SMM 2012: 14 October 2011 If you require application forms or visitor information on SMM 2012, please contact: Hamburg Messe und Congress GmbH Project Management MA-3 Messeplatz 1 20357 Hamburg,Germany Phone: +49 40 3569–2146/-2147 Fax: +49 40 3569–2149 smm@hamburg-messe.de smm-hamburg.com Online registration Exhibitors of SMM 2012 can have themselves registered with a click of the mouse via the new paperless electronic online registration system smm-hamburg.com Growth Market: Technically sophisticated multi-purpose ships for offshore work (photo: “Rem Hrist” built by the Norwegian Ulstein Group) are in great demand. next time (see below). Last year’s fair was fully booked, as well, in spite of the difficult economic conditions still affecting the industry. The 24th “shipbuilding, machinery & marine technology international trade fair hamburg” attracted 50,000 industry visitors eager to explore the products and services of 2003 exhibitors from 58 countries. The events abroad – SMM Istanbul in January and SMM India in April – also met with lively interest. Green highlights SMM continues to be the leading international platform of the maritime industry. Every two years, shipbuilders and suppliers April 2011 – Printed in Germany Subject to changes present innovative solutions and technologies to top-class industry representatives from all over the world at the Hamburg event. and optimised hull shapes to efficient fleet management. Minimising the environmental footprint of shipping continues to be an important objective of SMM. “It is our obligation to protect the maritime environment,” said CEO Micky Arison of Carnival, the world’s largest cruise ship operator, during the inaugural event of the global maritime environmental congress (gmec). Following its successful launch, the gmec will be a regular part of the SMM programme in the future to promote the green agenda, from alternative propulsion technologies It is no news the energy sector can benefit from the vast technological competence of the shipbuilding industry in many ways. Highly specialised vessels are used to supply oil platforms and offshore wind turbine installation sites. Heavy lift ships haul gigantic components to their destinations. The maritime know-how of shipyards and component suppliers is in high demand. This is reflected by the global reach of SMM. The success story of the maritime economy and its leading industry showcase continues. Bright prospects Cheerful exhibitors and visitors W Venue: The next SMM India will again take place in Mumbai. Photo: HMC/Z Panamax Photo: HHLA/Thomas Hampel 1980–1988 | 3rd generation You can make your hotel overnight bookings during SMM via the SMM 2012 website www.smm-hamburg. com or the HMC partner FIRST travel agency Rauther, which also provides a comprehensive service for your trip to Hamburg and leisure activities – before, during and after SMM 2010. Perspective: The German navy’s frigate 125 can provide naval support to special forces. E conomies of scale continue to drive the trend towards larger containerships. While the first-generation vessels built until 1968 were 180 metres long and carried 750 TEU, the third generation from 1972 onward had grown to 287 m and four times the capacity. By 1999, 354-m ships carrying more than 8,000 TEU were a common sight. We`ll book a hotel for you Flexible response Containerships: The next generation Containership-Evolution since 1980 you can easily get a great deal done online in the run-up to the fair. 2011 shipbuilding • machinery & marine technology international trade fair • hamburg • 4 –7 sept 2012 HMC offers a comprehensive online service for SMM 2012. Via the SMM website smm-hamburg.com Illustration: ARGE F125/TKMS The German “KG” model has had a long and successful history. Does it have a future? Absolutely. The KG model will always play a major role on the German market. Investors and enterprises trust it. Of course, investing in a ship means acquiring an interest in a firm with all the associated risks. However, it was not the KG model that caused the financing bottlenecks but the global financial crisis. Photo: VDR/H.-J. Hettchen Mr Johns, what will be the longterm consequences of the economic and financial crisis on ship finance? The crisis has changed the scene in the banking sector, including ship finance. The requirements for external finance have become stricter. Shipowners must raise much more capital of their own now. On the equity side, investors are still hesitant due to the volatility of the markets. But then, you can always get financing for a sound project. Expert: Max Johns, spokesperson of the German Shipowners’ Association VDR, teaches Ship Finance at the Hamburg School of Business Administration. Troop Transporter: The multi-purpose catamarans made by Austal do more than 35 knots. No 1 Online service for SMM 2012 Photo: Dbenbenn T he worst is over. Charter rates have recovered in some key segments of the shipping industry, and banks are more willing to provide external finance for new ships. But the financial crisis has left its marks and prompted a sustained change of course in ship finance. The requirements have become tougher for both equity and borrowed capital, paving the way towards alternative forms of financing. Illustration: Austal Ship finance on a new course SMM news | 2011 Photo: Ulstein Group/Arild Solberg No 1 e are extremely pleased with the outcome of this trade event,” said Peter Dan Petersen, summing up his impressions from SMM 2010. The Senior Manager Marketing Communications of ship engine manufacturer MAN Diesel & Turbo repeated what most exhibitors stated in the survey conducted by an independent research institute on behalf of HMC at the end of last year’s SMM. 94% of the exhibiting companies rated the event “very good” to “satisfactory”. 96% said the trade fair had fulfilled their expec- Expectations surpassed: 96 per cent of the participating companies said SMM 2010 fulfilled their expectations. tations, and 98% said they would return in 2012. Nearly as many respondents (97%) confirmed they had made contact with their most important business partners, and 97% said they concluded or made arrangements for business deals. 96% To some extent the success of the event depends on the quantity and quality of exhibitors and visitors. Shipowners, Business success: 97 per cent of the respondents said they concluded one or several deals at SMM 2010 or made arrangements for new deals. smm-hamburg.com shipyards and suppliers were the largest visitor groups; 70% of the exhibitors were shipbuilders or suppliers. The exhibitors found an ideal target audience and vice versa. As many as 68% of the visitors at SMM 2010 were decision makers. 97% Confirming that SMM is considered the flagship event of the maritime trade not only by exhibitors and visitors alike, an overwhelming 96% of the respondents gave it a rating of “good” to “excellent”. Photo: HMC/Z SMM news Stampede: Numerous executives and decision makers from the industry attended SMM 2010 .