Worth the Investment 2 Table of Contents

annual report The shipping industry in the Netherlands: worth the investment 2 Table of contents

Foreword 5

The Maritime labour market 10 1 1.1 Nautical education 12 1.2 Manning 15

Sustainability 22 2 2.1 The environment and 25 carbon reductions 2.2 Quality, safety and security 31

3 The business climate 36 3.1 Developments in 39 ﬂeet and markets 3.2 Shipping politics 46

Overview dossiers on kvnr website 51

annual report 2009 royal association of netherlands shipowners 3 4 Foreword

Expansion of representation “Expanding the Royal Association of Netherlands Shipowners’ (KVNR) sphere of operations has been a material change of policy over the past year. In my view merchant shipping is the broad base of the pyramid that is the maritime industry, in which I consider teamwork to be of vital importance. From now on, the KVNR is willing to represent any business operating ocean-going vessels It gives me great pleasure, therefore, to be able to report that the Loodswezen (Dutch Pilotage) joined the KVNR membership in 2009. In addition, a close working relationship with the Dutch Pelagic Freezer-trawler Association has been accomplished. Talks with the dredging and offshore industry and a number of other maritime services, are still in progress.

Concerns regarding the business climate The reduction in economic activity over 2009 has had extensive consequences for the shipping industry. As yet, it is hard to deter- Tineke Netelenbos, mine whether the world economy – and world trade and maritime President of the Royal Association transport with it – will once again be generating a structural up- of Netherlands Shipowners wards movement in 2010. For now, Dutch shipowners in many of the market’s segments are still experiencing economic heavy weather. All this adds to the urgency of creating an internationally competitive business climate in the Netherlands. For some years now, the KVNR has been drawing attention to Dutch shipowners’ lagging competitive potential. Developments at JoTankers and Maersk (to name but two) have made it abundantly clear that owners and ships are deserting the Netherlands out of the necessity of cutting costs. Equally, ‘ﬂagging out’ and the departure of (parts of) companies’ shore management from the Netherlands will also have signiﬁcant consequences for Dutch seafarers and –ultimately – for nautical education. The Dutch government has acknowledged that competi-

annual report 2009 royal association of netherlands shipowners 5 tive potential is lagging behind. This acknowledgement can be partly credited to the support we received right across the Second Chamber of Parliament when we presented our case. However, so far improvements to the (ﬁscal) business climate have failed to materialise.

It was gratifying to see that at the end of 2009, 33 maritime parties were troubled enough to join the KVNR in its concerns regarding the business climate for the shipping industry in the Netherlands. As a result, at the beginning of 2010 a letter was sent to the Second Chamber of Parliament and the Cabinet, urging them to work with the industry as a whole in creating a priority package of additional ﬁscal measures, particularly relating to employment costs. Employ- ers, employees, ports, shippers and educational establishments all supported us in our plea to make the tax regime in the Netherlands more internationally competitive.

When speaking to the media in 2009, I have been known to say that the Netherlands are ‘sea blind’ and that being so is incompatible with the cabinet’s aim of wanting to be Europe’s number one transport nation. Currently we rank a modest number seven on the list as far as maritime ﬁscal measures are concerned. Not a position to be proud of. On the positive side however, it should be noted that the recently resigned cabinet has stated its opinion that we need to make an EU-wide effort to preserve the industry and that therefore we have to be able to compete with China, Singapore and other ‘ﬂagging out’ states.

Europe, too, has become immersed in shipping policy. It is a good sign that the European Commission and the European Parliament have acknowledged the global nature of the shipping industry and

6 the fact that it is governed by ﬁerce competition. Equally, the European ﬂeet’s prime importance to both the European economy and the Euro- pean transport system has now been acknowledged by the Commission and the Parliament. Recently, the European parliament’s committee on Transport has approved Christen Unie/European Conservatives and Reformists Member of the European Parliament Peter van Dalen’s report on the community’s shipping strategy until 2018.

Navy support in the battle against piracy The Royal Netherlands Navy is providing more and more support for Dutch shipowners in protecting their vessels against piracy in the Gulf of Aden and off the coast of Somalia. However, the effect of the more effective protection offered in the Gulf of Aden has been that pirates are becoming more and more active off the eastern coast of Somalia and far out to open sea. This ‘ripple’ effect requires a modiﬁed deployment of naval vessels, planes and helicopters. For the more vulnerable ships, it means that the KVNR’s previous request of making it possible to have marines on board at the owner’s request is still a very relevant one and the measure is desperately needed to provide effective protection for these vessels.

Dutch shipowners continue to provide a cadetship and employment guarantee for Dutch seafarers Even though the worst of the shortage of seafarers in the labour market appears to have eased (for now), it is still vitally important to ensure that sufficient numbers of Dutch officers are being educated and trained. One of the prime arguments for this is that the shipping industry is considered to be the ‘nursery’ for the entire maritime sector. Each and every officer is a prospective experienced shore employee within the maritime cluster. Well-qualified and experienced employees continue to be desperately needed.

annual report 2009 royal association of netherlands shipowners 7 Shipowners within the KVNR membership have been providing a cadetship and employment guarantee for students in nautical education, and have continued to do so in these harsh economic times. This very fact underscores the importance Dutch shipowners attach to having Dutch ofﬁcers in the ﬂeet.

Investments made by shipowners to improve the appeal of nautical education show enterprise and conﬁdence in the future of Dutch seafarers in the ﬂeet. Examples are the state of the art on-board educational facilities and accommodation for cadets.

Dutch shipowners use innovation to improve their environmental performance For the environment, too, 2009 has been an eventful year. Despite the fact that the Copenhagen climate conference of December 2009 failed to reach an agreement on compulsory reductions, the intention of drastically reducing carbon emissions remains unchanged. Sooner or later a new climate protocol will become effective, which will also apply to the shipping industry. It is equally certain that the countries exempted under the Kyoto protocol will then have to participate and that they will sell themselves dearly. However, in an industry whose global orientation is a fact of life, uniform standards for all nations and flags are a prerequisite for achieving environmental goals. Here, too, disrupting the level playing field will lead to flagging out.

Despite the failure of the Copenhagen climate summit, Dutch shipowners have formulated their own, ambitious, objectives for carbon reduction. In 2050 the zero emission ship is to be a reality and carbon emissions are to have been reduced by 50% compared to 2020. In addition, shipowners are taking their personal responsibility seriously and have achieved a number of concrete innovative environmental

8 solutions in order to further improve the shipping industry’s environmental performance. The KVNR’s environmental paper ‘Green and powerful shipping’ contains any number of examples.

Also concerning sustainability, short sea shipping has the potential to achieve additional environmental benefits by improving the efficiency of the transport chain. The improved synchronisation of the various transport modalities within ports in particular, has the potential to be of considerable environmental benefit.

Maritime transport knows no congestion, it is reliable and carbon emissions are very low compared to those of other transport modalities. Moreover, large parts of Europe are easily accessible by sea. The growth of short sea shipping, however, is being impeded by the bureaucracy encountered by shipowners on entering or leaving any port. Regulations, like customs procedures, are the main stumbling block within our industry. And this is one impediment the shipping industry does not need at this time.

Finally, I cannot emphasise enough the importance of the level playing field. In this day and age it is far from self-evident for shipowners to keep their head offices in the Netherlands. A sound business climate will have to meet a number of basic requirements in order to remain strong and solid enough. Make no mistake: it takes just one single day to flag out. And that what is lost to – for instance – Singapore will never return. The Netherlands’ objective will have to be the preservation and expansion of the shipping industry’s contribution to the maritime cluster and – through that – to the Dutch economy.”

Tineke Netelenbos President of the Royal Association of Netherlands Shipowners

annual report 2009 royal association of netherlands shipowners 9 10 The maritime labour market 1

annual report 2009 royal association of netherlands shipowners 11 12 Nautical education 1.1

Retaining Dutch seafarers The majority of jobs on board ships can only be carried out by people that have received a specifically nautical professional education, since the prevailing international professional requirements are linked to certification of competency. Therefore, nautical education in the Netherlands is crucial to ensuring the availability of a sufficient number of Dutch seafarers. The Netherlands provide eleven courses of nautical education. Four of these are at HBO (higher vocational training) level and seven of them at MBO (intermediate vocational training) level. On the whole, enrolment in nautical education has remained fairly stable in recent years. In view of the fact that the numbers of Dutch seafarers are still declining, enrolment will have to increase. Spliethoff Group In February 2009, students attend- The total number of students in each nautical academy tends to be ing the Merchant Shipping officer comparatively low. Added to the fact that it is a practical form of course at the Maritime Academy education needing specific equipment like simulators, nautical (NOVA-college) in IJmuiden were education tends to be expensive. offered educational cadetships on The KVNR, therefore, has been urging the various nautical educational board the Transfennica ro-ro-con- establishments to bulk up, and to pool and share educational equip- tainer ship Pulpca. Transfennica is ment, expertise and teachers as well as to raise the profile of nautical part of the Spliethoff Group. This education as a whole. All this is intended to lead to higher enrolment. trial took place in association with Also, the KVNR advocates that nautical education (MBO and HBO the Maritime Academy in IJmuiden alike) is to maintain a status that does justice to the costly nature and was intended to build some of the courses, whilst not exceeding the current financial structure. practical experience in on board Last but not least, the KVNR would like to see lucid and transparent practical education. In 2010 and safeguards for the content of nautical education, coupled with active 2011, Spliethoff will be launching involvement on the part of the ministries of Education, Culture & new ships which will have been Science and Transport, Public Works & Water Management. In 2010 specifically equipped to provide a Round Table conference on these issues will be organised by the on-board education. The ships will ministry of Transport, Public Works & Water Management. It goes be fitted with an additional bridge without saying that the KVNR will be participating. for training, a class room, a recrea- tion room and extra cabins to accommodate cadets and training Total number Number of officers. of students graduates HBO 795 114 MBO-4 (all ships) 999 178 MBO-3 (small ships) 162 76 Total 1956 368

Numbers of Dutch nautical students and graduates in 2009 annual report 2009 royal association of netherlands shipowners 13 14 Manning 1.2

As a result of the economic crisis shortages of masters and officers in the international labour market were less severe over 2009. Shortages of well-qualified engineers have persisted however. Whilst in the short term the labour market may have eased, in the long term shortages will remain present. For this reason, the KVNR and its members will ceaselessly continue their efforts to stimulate the interest in a maritime career in young people. One of the prime elements of this campaign is the continuation of the cadetship and employment guarantee for nautical students in the Netherlands. Some examples of promotional activities: the information campaign ‘Sea legs wanted’ (www.zeebenengezocht.nl) and ‘Sea legs at school’ the provision of additional accommodation in order to be able to train more cadets and to allow youngsters, that have not yet made a career Kick-off promotional choice, to experience short on board passages. The ministry of Trans- campaign ‘Sea legs at school’ port, Public Works & Water Management has provided a subsidy for The promotional campaign the short passages project, covering 2010-2014. ‘Sea legs at school’ kicked off on 2 February in the provinces Nautical academy in the Philippines of Friesland, Groningen and Dutch shipowners employ qualified seafarers in a mixture of Dutch and Drenthe. Seafarers from a other nationalities on their ships. The exclusive association with the number of companies called at Palompon Institute of Technology, a nautical academy in the Philippines around sixty primary schools in continued in 2009. In 2009, 161 students of this school served cadet- order to stimulate an interest ships on Dutch ships. in the maritime profession in the Netherlands among group Review of educational standards 7 and 8 pupils. At the Abel The International Maritime Organisation (IMO) has been reviewing Tasman nautical academy, educational standards for seafarers, better known as the Standards of Tineke Netelenbos, president Training, Certification and Watchkeeping (STCW) convention, as well as of the Task Force for the regulations governing safe manning (the minimum safe manning resolu- Maritime Labour Market (TAZ), tion). The review has included the KVNR’s criteria: goal-based legislation presented Delfzijl Mayor and the allocation of part of the responsibilities to shipowners themselves Emme Groot (on the left) with by various means, including the International Safety Management Code an educational package about (ISM). The ‘2 navigator’ model of manning will continue to be possible, the shipping industry. provided this can be carried out safely, conditions of ship, area of navigation and vessel management permitting. The new international regulations will be formally established in 2010.

annual report 2009 royal association of netherlands shipowners 15 JR Shipping A new CBA for Filipino In order to increase enrolment, ratings and officers the Willem Barentsz Maritime The KVNR and its affiliated Institute, the Abel Tasman shipowners are very much nautical academy and the JR invested in the correct regula- Shipping group, have joined tion of working conditions of forces in the so-called Master those working on the Dutch Class cadetship project. For fleet, be they Dutch nationals this purpose, the container or of other nationalities. For vessel m.s. Emotion has been this reason, individual CBAs specifically fitted out with are agreed on for seafarers of educational facilities and each country of origin, taking student accommodation. In into account the specific 2009 enthusiasm amongst situation. One example is the students proved to be consid- new CBA that was signed in erable. After all, taking passage October 2009 in Manila, which on a real merchant ship adds a is for the benefit of seafarers whole new and special dimen- from the Philippines. This CBA sion and keeps maritime talent has become effective on 1 on board. January 2010.

16 Issue of crew documents 0 4000 8000 In 2008, the Netherlands Shipping Inspectorate decided to transfer 1991 the issue of crew documents to KIWA Nederland, who carries out certification procedures for a number of different industries. The 1996 transfer is due to be finalised in 2010. 2000 On behalf of the users, the transitional processes will be directed by a committee, under an independent chairman, that will function as a 2001 sounding board. The KVNR will be involved in this and continues to point out that high standards and good service will promote the 2003 Dutch flag. Also, rates need to be transparent and based on the real term expenses of the efficient issue of documents. 2005

The Maritime Labour Convention 2007 It is expected that the Maritime Labour convention will become effective in the Netherlands in 2012. The convention will regulate 2008 seafarers’ on board living and working conditions. The convention’s implementation into Dutch legislation has been a major operation, 2009 involving a number of different government ministries. The KVNR has contributed to the ofﬁcial preparation of the various laws that had to be amended. Said amendments will be presented to parliament in Development of the numbers the course of 2010. Drafting ministerial decrees will be the next step. of Dutch seafarers from 1991.

Under the Maritime Labour convention, the government and the Source: Ecorys/KVNR classiﬁcation societies will be issuing certiﬁcation, declaring – on behalf of the Netherlands – that the Labour Convention has been properly implemented and/or ships are in compliance with the convention’s requirements.

Only ships in possession of said certificates will be exempted from additional port state inspections. The Netherlands Shipping Inspec- torate will be establishing a project group for the development of the certificates in question. To ensure that all ships can be inspected by the classification societies prior to 2012, the models/criteria will have to be available before 2011.

annual report 2009 royal association of netherlands shipowners 17 interview Gerrit van Leunen

“Setting course towards a uniform programme of education and examination”

Both students and experts have a positive opinion of the standards of higher nautical education. Amsterdam, Vlissingen and Rotterdam all score high marks and Terschelling has even achieved a sixth place in the top ten of all HBO establishments. The Maritime Ofﬁcer course there is of a very high standard and immaculately organised, as per the 2010 catalogue for higher education.

Gerrit van Leunen, principal of the Willem Barentsz Maritime Institute (MIWB), responds modestly to the compliment. “Sound organisation is inherent to shipping: clear agreements and individual responsibility. Our island location and small size are a bonus. Everyone knows everyone else. Our main distinguishing factor, probably, is our professional focus. At MIWB students are totally immersed in the nautical profession, which is a great motivator.”

Van Leunen emphasises the fact that the other nautical academies are doing well too. “This publication in the higher education catalogue has provided a boost to the entire sector. It places our kind of vocational education in the spotlight of the attention of thousands of young people shopping around to make their choice of education.” Gerrit van Leunen is the principal of the Willem Barentsz Maritime If you opt for the shipping industry, there will always be work, Institute. In this nautical academy, anywhere. Be it at sea or ashore, in the industry or for the govern- 328 students are enrolled in the ment. “Collectively, we really should advertise that broad perspective Maritime Ofﬁcer and Ocean more often. Not only the prospects of a great career at sea. But also Technology (Hydrography) courses. the many job opportunities ashore, with classiﬁcation societies, ports Also located on Terschelling is the and the pilotage service.” Maritime Simulator Training Centre (MSTC) with an annual attendance This kind of PR is desperately needed. “The maritime Netherlands of 800 students from nautical need young people that make active choices. Employers, however education (HBO and MBO) from varied, and nautical academies share a common interest in this all over the Netherlands. matter.”

18 The common nature of nautical education may also be improved in matters of content, Van Leunen states. “I would actively encour- age more emphasis from the ministry of Transport, Public Works & Water Management on setting course towards a uniform programme of education and examination.”

Each job has a list of things you have to know and have to be capable of. But how do you acquire those skills? That is determined by the school. What are the examinations like? It’s up to the school. Safeguarding examination standards? Carried out by the HBO board itself. “I am not saying we should go back to national ﬁnal exams, but a little more national supervision wouldn’t come amiss.”

National uniformity may also have an effect in other areas. Van Leunen provides an example. We have the obligation to include hours for independent studies in our timetables. Other vocational education courses have this latitude. We don’t. International shipping regulations state that our students have to serve cadet- Introduction to the maritime ships of a minimum of 300 days. How on earth can you find time profession for independent studies? Our professional education sometimes On 24 and 25 August 2009, ‘Sea legs has to wrestle with the framework of the educational facilities we wanted’, the labour market campaign, are affiliated with. A little more regulation on the part of the profes- attended DelfSail. Around 800 pupils sional department may help to safeguard the educational nature from primary and secondary schools specific to the profession. We can then tell others: we are sorry, in the area were able to take part in a but these are the rules and we are sticking to them.” ‘Maritime Experience Day’ on board sailing vessel De Eendracht. They were also given a tour of the Abel Tasman Nautical academy in Delfzijl. In April, the campaign called at the Willem Barentsz Maritime Institute on Terschelling for the pilot project of ‘short passage’.

annual report 2009 royal association of netherlands shipowners 19 interview Jan Willem Verhoeff

Filipino seafarers meeting Dutch standards

Nautical education in the Philippines – which is based on Dutch methods – , is flourishing. In the port of Palompon Dutch shipowners have access to a centre of excellence. Since 2002, almost 600 Filipino seafarers have been employed on the Dutch fleet. From 2006, Palompon also offers professional certification to Dutch shipowners and their crews. The local Netherlands Shipping Training Centre (NSTC) provides professional and career-oriented training courses for all categories of seafarers.

Jan Willem Verhoeff is in charge of this ambitious education project in Palompon, situated in the north west of the island of Leyte. Working with the public Palompon Institute of Technology (PIT) he is the chief engineer and as such responsible for the structure and content of two ofﬁcer courses of education: bachelor of science in maritime transportation (deck) and bachelor of science in marine engineering (engine room). In addition he is the general manager for the NSTC training centre, which is located on PIT’s campus. At this centre, Filipino seafarers attend training courses in order to obtain the certiﬁcation required by the Dutch government and the International Maritime Organisation.

Annually, Verhoeff has to select around 270 young Filipinos who Jan Willem Verhoeff of the want to go to sea to attend PIT. Following three years of theoretical Shipping and Transport education, he hands over his students to their future employers ‘from College (Rotterdam) is the Holland’. Having completed that rite of passage, they then enter into maritime education project a year-long cadetship. leader at the Palompon Institute of Technology. Prior “More and more shipowners attend our selection days. In a relatively to that he has worked as a short period of time our school has built itself a cast iron reputation. ship’s engineer and he used Filipino PIT graduates meet all the STCW requirements and their to be a teacher at the nautical standard of education is comparable to a four-year MBO course in academy in Rotterdam. the Netherlands, rendering their professional competence indisput- able. Other characteristics that make them such attractive employees are that they speak English very well and that they were raised in a Catholic country. On that point, the culture of the Philippines is very compatible to the Dutch culture, which makes working together much easier. Another important aspect is that, on the whole, Filipino seafarers do not take shore jobs until they are in their forties. They stay in the industry for many years.”

20 opmerkingen

That was exactly the reason that the KVNR and STC decided to enter into a partnership with an educational facility in the Philippines. The Netherlands were looking for a ‘second country of origin’ to combat the crippling shortage of deck officers. Verhoeff tells us: “Having a crew consisting of too many different nationalities makes on-board management that much harder and is less desirable from a social point of view. Once you have decided to look for potentially large numbers of crew, it is but a short step to decide on the Philippines. There, around half a million men – and a small group of women – earn their living at sea. The western fleet is their first choice, because of the rates of pay: compared to Asian standards they are outstanding.”

The Palompon school therefore, is becoming more and more popular among young Filipinos. The prospect of being employed as an officer on board a Dutch ship is very seductive. “Particularly if you not only have to support your immediate family, but the extend- ed family as well.” The curriculum is comparatively difficult. For the students, but also for the teachers, who, in order to keep up the Construction of a new building levels of their own knowledge and experience, often have to serve a in Palompon four-month cadetship on a Dutch vessel. Students are only allowed Since 2001 the KVNR has been to take up their cadetships after having passed a six-day examina- involved in a partnership with a tion at the end of their third year. This examination is equivalent to nautical academy in the Philippines, Dutch MBO standards. The Dutch government too recognises the Palompon Institute of Technology PIT’s importance to the Dutch fleet, and has allocated subsidies for (PIT) in order to train prospective investments in expansion on a number of occasions. They have also officers for the Dutch fleet. In 2009 entered in a convention with the Philippines covering the mutual the Dutch Ministry of Transport and recognition of certificates of competency and training courses. Water Management provided a “We are not prepared to make any concessions to the standards of financial contribution to the con- education”, Verhoeff tells us. On behalf of the Dutch shipowners, struction of a new building for the the KVNR monitors competency requirements and STC is jointly engineers’ course, comprising four responsible for the content of the syllabus. The fleet may rest classrooms, a computer lab and two assured that our Filipino deck officers and engineers are every bit large workshops. Shipowners too, as good as their Dutch counterparts.” have been contributing to PIT, both financially and in kind, by supplying educational resources like a radar installation and engines.

annual report 2009 royal association of netherlands shipowners 21 22 Sustainability 2

annual report 2009 royal association of netherlands shipowners 23 SMIT’s hybrid tug is the winner of the 2009 KVNR Shipping Award The 2009 KVNR Shipping Award was for SMIT and their E3 tug project for sustainable port tugs. The development of hybrid propulsion allows effective fuel economies. If the entire Rotterdam ﬂeet were to consist of E3 tugs, an annual reduction of between 1 and 1.3 million litres of fuel would be achieved. This would result in carbon reductions of between 2600 ton and 3380 ton annually. During the Maritime Awards Gala in the Rotterdam Doelen, the judges’ president, Tineke Netelenbos, referred to SMIT as a trailblazer in the towage market. The award was received by Peter Kortekaas, general manager of engineering at SMIT. On the left, presenter Roelof Hemmen and on the right Member of Parliament Charlie Aptroot (VVD).

24 The environment and 2.1 carbon reductions

The shipping industry’s environmental performance The KVNR and its membership are committed to achieving further improvement of the shipping industry’s environmental performance. In recent years, international legislative bodies have been emphasising emissions to air. However, at the climate summit in Copenhagen in December 2009, this failed to achieve any real targets for limiting carbon emissions, not even for the shipping industry. This is a complication in the IMO negotiations on carbon reduction measures. The European Commission continues to maintain its demand that IMO is to have concluded its decision making on reduction tools by the end of 2011. Should this deadline fail to be reached, the European Commission will take matters into their own hands. In view of Euro- pean shipowners’ competitive position and for ships under any EU member states’ ﬂag, this would be a highly undesirable development.

A number of important operational measures are being developed within IMO, like the Design Index (EEDI) and the environmental management plan (SEEMP). By means of intensive lobbying the KVNR is attempting to achieve the most practical implementation of these measures that will best suit the Dutch ﬂeet’s speciﬁc characteristics.

Declaration of Intent aimed at saving energy and reducing greenhouse gas emissions in the maritime transport sector. The national government and the relevant trade organisations (KVNR, the Holland Shipbuilding Association, the Dredging and Offshore Industry Association, and EVO, Transporters Organisation have reached an agreement on the ‘Declaration of Intent aimed at saving energy and reducing greenhouse gas emissions in the maritime transport sector’. Its main purpose is to reduce carbon emissions and in 2009 the KVNR contributed to a draft declaration. In 2010 the declaration will be signed by all parties involved.

annual report 2009 royal association of netherlands shipowners 25 Sulphur content of fuel The KVNR has actively contributed to a number of international studies into the effects of IMO’s decision to limit the sulphur content of maritime fuels to 0.1% from January 1, 2015 as far as the Emission Control Areas (North Sea, English Channel, and Baltic Sea) are concerned. The studies have shown a real risk of a modal back shift whereby the modality of choice reverts from maritime transport back to road transport. The bottom line might even be that the environmental effects on many cargo routes will be worse than before. The Ministry of Transport, Public Works & Water Management shares the KVNR’s concerns and has been urging the European Commission to ﬁnalise its own studies as soon as possible in order to be able to come to a deﬁnite decision. Within the European Community Considerable interest in Shipowners’ Associations (ECSA) the KVNR will be working on the Shore Support development of an alternative proposal. Shore Support is an innovation project that by now has more The KVNR has also been a member of the Industry Group, consisting than twenty short sea vessels of various trade organisations from industries in Scandinavia that are participating. Its main initiator closely dependent on short sea transport –like the wood and paper is Wagenborg Shipping B.V. industries– and a number of national shipowners associations. This Besides Wagenborg, Amasus group, too, is working on alternatives that will achieve a reduction of and Flinter also participate in the current sulphur emissions whilst at the same time preserving the project. Its purpose is to short sea transport’s competitive position. explore the alternative manning of short sea vessels with The ballast water convention effective technical support A paper written by the KVNR and a number of its members, outlines ashore, by means of a broad- the technical problems encountered when applying the ballast water band connection. convention’s requirements to special types of vessels, like sea going barges and heavy lift ships. The Ministry of Transport, Public Works & Water Management has been closely involved in this issue and is considering making a submission to IMO in order to draw attention to these problems. Ballast water exchange areas and sample-taking

26 annual report 2009 royal association of netherlands shipowners 27 IMO recognition for the navy During IMO’s biennial meeting in London on 24 November 2009, the Royal Netherlands Navy received a “certiﬁcate for exceptional services rendered to shipping and mankind”. The certiﬁcate was presented by Efthimios E. Mitropoulos, IMO’s secretary general, to Commander Peter Reesink. It was intended to express appreciation for the efforts made to combat piracy and the protection of shipping in Somali waters. Peter Reesink was commander of air defence and command frigate Hr. Ms. De Ruyter, between 20 June 2008 and 26 June 2009. On the left, Mr. Pieter Willem Waldeck, ambassador of the Nether- lands to the court of St. James and permanent representative to IMO.

28 of ballast water have demanded a large amount of the KVNR’s attention in order to arrive at the convention’s sound and workable implementation.

Annex V and port reception facilities According to Annex V of the MARPOL convention, shipowners are required to hand in their domestic waste in ports. However, the procedures and expenses involved vary considerably from port to port. Equally, the availability of port reception facilities leaves a lot to be desired in many ports. The KVNR urges that the current review of Annex V be concluded as soon as possible, leading to a more workable situation for shipowners.

Innovation Once again, in 2009 Dutch shipowners have been extremely involved in innovation, and the Maritime Innovation Subsidy (SMI) arrangement was used extensively. Applications for large projects far exceeded the funds available. Applications for subsidy amounted to a total of àß4.5 million; funds available were only àß1.6 million. Cooperating inspectorates The available funds for small projects were also entirely used up. On 16 December 2009, eighteen government agencies signed the In 2010, the SMI will come to an end. With no new arrangement to covenant on ‘On-board inspec- take its place, a vital stimulus to innovation will be lost, just when the tions of ships’, aimed at uniting subject of innovation is in the spotlight of shipowners’ attention. The and streamlining inspections in KVNR has therefore joined forces with other partners in the maritime Dutch ports. The KVNR has been cluster and a Maritime Innovation agenda is being drawn up. Said advocating ‘smart inspections’ agenda will be the foundation of the desired innovation incentive for some time with the intent to arrangement for the years beyond 2011. decrease pressure on crew and reduce operational expenses for Ship Recycling shipowners. A diplomatic IMO conference adopted the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships on 15 May 2009. The KVNR will be contributing to its ratiﬁca- tion and implementation.

annual report 2009 royal association of netherlands shipowners 29 30 Quality, safety and security 2.2

Dutch flag ships’ safety performance 0 100 200 300 400 2009 showed a slightly improved ranking of Dutch flag ships on the Paris 2006 239 MoU list. The Paris MoU is one of the Port State Control areas where visiting ships are subject to port state control inspections. Said inspec- 2007 263 tions are carried out on the basis of the agreements reached in the Memorandum of Understanding (MoU) by participating nations. In 2011 2008 293 the Paris MoU will change over to risk-based inspections. Hopefully, the excellent quality of Dutch flag ships will result in a reduction in the 2009 406 currently high frequency of inspections. ‘Smart inspection’ is a concept deserving of to be emulated by the Dutch inspectorate, and so it has Worldwide number been. Over the course of 2009 talks between the KVNR and the inspector- ofpiracy attacks. ate about this matter have taken place on a number of occasions. In 2009 217 attacks took place near Somalia, 47 of these were Piracy actual hijacks. A total of 867 Over the course of 2009, the Royal Netherlands Navy has been actively seafarers were taken hostage. involved in protecting merchant shipping from piracy in the Gulf of Aden. The KVNR is extremely gratified by the huge efforts made. It is Source: International Maritime however a matter of concern that, due to increased naval efforts in the Bureau, Piracy Reporting Centre Gulf of Aden, pirates have mover their sphere of operations further off the coast, right into the Indian Ocean. As a consequence, other protec- tive measures have become necessary. In 2009 the KVNR has urged that owners of vulnerable merchant vessels have the option of requesting military assistance on board. A final decision in this matter has yet to be made by the government.

There is further room for improvement in the matter of dealing with the pirates’ shore operations by means of – for instance – freezing assets, prosecution of pirates and arrangements with neighbouring countries about bringing pirates to trial. Having to release thirteen pirates captured by Hr. Ms. Evertsen at the end of December 2009, was felt to be most unsatisfactory by shipowners and Royal Netherlands Navy alike.

Transfer of inspections to classification societies In the summer of 2009 statutory inspections of passenger ships and tankers were formally transferred from the Netherlands Shipping Inspectorate to the classification societies. The KVNR is satisfied with this final step in handing over inspectorate duties for all ships. However, this development will require specific efforts on the part of the Netherlands Shipping Inspectorate to ensure that their knowledge of the industry remains up to date and to maintain standards of service to Dutch shipowners.

annual report 2009 royal association of netherlands shipowners 31 interview Astrid Kee Achieving efﬁciency using new and old technology

The economy and politics are placing more demands on improved efficiency than ever before. But being efficient has always been the order of the day for the Port of Amsterdam. Having just one lock for 80% of cargo transport makes efficiency of the essence. Well thought- out logistics can make all the difference. “This is how we demonstrate that that one lock is more of a stable factor than an impediment.”

Harbour master Astrid Kee and her 180 staff spend 24 hours a day synchronising the movements of ships and lock. The politico-economic climate is in her favour. ‘The Hague’ acknowledges the national importance of accessible and safe sea ports. Amsterdam city council is not afraid to make investments. In IJmuiden an additional lock will be built.

In the meantime, the port of Amsterdam, and all those involved, will make optimal use of that one single Noordersluis’s capacity. Trafﬁc control and the pilotage service have streamlined their operational processes and thanks to long-distance piloting matters do no longer grind to a halt in adverse weather conditions. Procedures for reporting and passing through have been reﬁned at every level. The port uses the element of strict customer orientation to stimulate economic activity. As many ships as possibly are serviced as fast, safe and sustainable as possible.

Astrid Kee used to be assistant Everything is geared to improved service to corporate clients, accord- director of the Port of Haven ing to Kee. Therefore she is enthusiastic about the updated govern- Amsterdam, director of Central ment supervision. Since 1 January this has become centralised and Nautical Management and risk-based. Ships’ masters no longer have to contend with customs harbour master Amsterdam and police and the Food and Safety Authority and the Labour Inspec- IJmond. She was appointed as torate. Coordinated from Amsterdam and Rotterdam, all police and director of Slob Shipyard in inspectorate services catalogue the risks for each ship prior to its Papendrecht on 1 April 2010. arrival. The most relevant service will carry out a single inspection. “In the shipping industry, there are 24 different inspectorates that carry out more than 160,000 inspections annually. If you think about that for just a minute, the advantages of efﬁciency of cooperation and coordination become evident.”

32 Customer orientation and working together whenever possible serves the interests of the Netherlands’ main port ambitions, and of each individual sea port. “There is no need for us to be in competition with each other, the market itself will take care of that.” At the same time, advanced cooperation is being stimulated by the market. Following complaints from Maersk about the lack of uniform logistic information, the international harbour masters association took up the challenge. A format for standard communication regarding depth, port basins, tug reports and any and all other relevant matters was drawn up. “It is already being used in Rotterdam and Bremen”, Kee says. “We will start using it during the summer. All companies that use sea ports will receive all our details in a single language and lay-out. This is how, together, we will raise our service to a higher level.”

Electronic information systems improve practical logistics. “The shipping industry aims to save fuel by slowing down and yet arrive in port on time. We meet this need with the Automatic Identification System (AIS). From 48 hours prior to arrival we are in real time contact; we have (radar) information about course and speed and we exchange online information with pilots, the lock, traffic control and agents.” This type of new technology is essential to improving safety, sustainability and efficiency in sea ports, according to Kee. But, please, do not let anyone forget the old-fashioned concept of the human touch. “For this reason we regularly organise workshops for cruise and container shipping. It allows us to go over the procedures with our partners in the chain: these are the rules in our territory, these are the procedures you have to follow, and those are the ones we have to follow. That brings us all back to the same page and we all know what to do to have the lock ready at exactly the right time and to get the ship to Amsterdam at the right time.”

annual report 2009 royal association of netherlands shipowners 33 interview Vice Admiral Matthieu Borsboom

Piracy in the Gulf of Aden ‘There will be no quick ﬁx’

“Piracy is a threat to global stability and no one country can deal with that on its own. Combating it will have to be done on an international and interdepartmental basis, and each and every commercial user of the world’s seas will have to be involved.”

Vice Admiral Matthieu Borsboom, Commander of the Royal Netherlands Navy is a staunch advocate of international cooperation in order to provide an integral and integrated approach to all types of criminal offences against the Mare Liberum. “Because when you are at sea you can’t move for pirates, human traffick- ers and drugs and arms smugglers, very often with terrorist organisations at the back of them.” All this, when the world’s seas are supposed to be free and safe, as advocated by Hugo Grotius as long ago as 1609. To be used legitimately by merchant shipping, fishing and the generation of energy from oil wells and wind farms. If there is no security at sea, both the world’s economy and world peace are at risk. “When risks increase, so do insurance premiums and the price of oil. So each and every successful hijacking affects the financial markets directly. Hence, piracy is an incursion of political stability.”

Up to at least 1200 nautical miles off the coast of Somalia, the seas are crawling with piratical scum. Merchant shipping, and the international military forces too, are hard put to deal with the situation. According to Borsboom, the problem is the complexity of any military action at sea. To begin with the combat zone is very large-scale. Then there are all the hurdles of international legislation. Special rules and regulations apply Rear Admiral Matthieu to any military intervention in Somali territorial waters. That does not Borsboom has been the Royal mean however, that ‘our boys’ are free to do as they please. Netherlands Navy commander since 22 January 2010. During Borsboom: “Providing each and every vessel with military personnel is the ceremony he was also impossible. It is a matter of command. Who is in charge during a pirate promoted to the rank of Vice attack? Who decides on the course to take and the use of force? Would Admiral. that be the ship’s master? Or the military security team’s leader? And, when do you actually use force? If you are being shot at, you are allowed to return ﬁre. But, what do you do if pirates are ‘just’ boarding your ship? What if they push a knife into your face?”

34 The problem itself is even more complicated. Piracy is the result of poverty and, above all, a failing state. There is no functional central government in Somalia, and starvation and chaos rule. As long as the country is not capable of feeding its people and contending with crime, the shipping industry will continue to suffer from piracy and the world economy will continue to be at risk, the admiral fears. “If there is no grip on the situation ashore, our efforts at sea will be the equivalent of trying to empty the ocean with a thimble.”

So, there will be no quick ﬁx. “What we have to do is to try and ﬁnd an integral resolution. Together with the departments of Justice, Economic Affairs, Foreign Affairs and Development, Cooperation and European Affairs. We have to work with commercial parties and on an international basis. That is the only way to ever achieve a sustainable strategy for resolution.”

In the meantime, we can guarantee personal military escorts through the Gulf of Aden for the most vulnerable ships, like UN food transports. Merchant shipping on the whole travels through a special corridor in group transit, whenever possible. The Royal Netherlands Navy vessel Hr.Ms. Johan de Witt carries out patrols along the length of the Somali coast, the area where risks are highest. The objective is to prevent as many actual hijacks as possible by disrupting the pirates’ preparations. This strategy does not always lead to arrests or prosecutions. “But we certainly manage to make life tough for them, what with ﬁnger prints and iris scans. We destroy their boats and weapons, effectively clipping their wings, however temporary.” If things go wrong, there are European and American war ships ready to come to the rescue. Hr.Ms. Tromp was the ship that managed to free the crew of the German merchant ship Taipan, following their capture by pirates. The admiral acknowledges that the current approach is not ideal. “It does however prevent a lot of potential problems. After all, each and every day thousands of ships and crew manage to pass the Somali coast unmolested.”

annual report 2009 royal association of netherlands shipowners 35 36 The business climate 3

annual report 2009 royal association of netherlands shipowners 37 Beatrix names ‘Beatrix’ at celebrating Wagenborg Koningin Beatrix doopte tijdens On 24 August 2009, during the DelfSail maritime event in the port of Delfzijl, HM Queen Beatrix named Wagenborg’s newest ship, m.s. ‘Beatrix’. The occasion was made even more festive by Royal Wagenborg’s 111-th anniversary. (foto Beatrix Wagenborg in Delfzijl plus sc)

38 Developments in 3.1 ﬂeet and markets

Crisis 0 -10 -20 -30 At the beginning of the third quarter of 2008, the world economy suffered a considerable blow across all continents because of the Road transport effects of the United States property market crisis and the ensuing credit crunch. No recovery was seen over 2009. In fact, throughout 2009 the volume of world trade decreased by more than 12%. The Inland shipping international shipping industry descended into what has been described as the most severe crisis ever, with tariffs plummeting to far below break-even point. As a result, large numbers of vessels Shipping agents were laid up, particularly in container shipping, and newbuilding orders experienced financing problems. Nor did Dutch shipowners managed to avoid the effects of the crisis, resulting in blood red Aviation annual figures for a large number for shipowners in 2009. Because of this situation, the necessity of an internationally competitive business climate in the Netherlands has become all the more urgent. Deep sea/ coastal shipping Competitive potential Once again, in 2009 repairing the lagging fiscal competitive potential 1st quarter was high on the KVNR’s agenda. A number of times, the Second 2nd quarter Chamber of Parliament discussed the level playing field and the 3rd quarter optimal use of European guidelines for the shipping industry with 4th quarter the relevant members of the government. The KVNR is asking for additional fiscal facilities, with priority for In 2009 the transport industry has improvements to the wage withholding tax facility for the shipping lost almost 13% of their turnover industry. These measures would allow Dutch shipowners to catch up compared to 2008. In contrast with with their European competitors as well as improve the position of other transport modalities, deep Dutch seafarers in the labour market. Even though the problems sea and coastal shipping did not were widely acknowledged, the cabinet was not prepared to offer see any improvement in the course extra money for a solution. At the end of 2009, the KVNR managed of the year, but instead experienced to unite 33 organisations from within the maritime cluster in order to a further reduction in turnover. write a joint letter to the Second Chamber calling for the cabinet to take action and to draw up a package of measures for the benefit of Source: StatLine, Transport companies, turnover development, SBI 2008

annual report 2009 royal association of netherlands shipowners 39 the shipping industry, particularly additional measures regarding ﬁscal employment costs. As a result of the letter, dialogue on a broad spectrum of subjects as well as ﬁscal issues was started and is still in progress.

European maritime transport strategy In January of 2009 the European Commission published its policy paper ‘A communication on Strategic goals and recommendations for the EU’s maritime transport policy until 2018’. The commission acknowledges the shipping industry’s global nature and the need for a level playing ﬁeld for European shipowners to be able to compete with their non-European counterparts.

The Commission also acknowledges that any agreements concerning the shipping industry must be made at global (IMO) level, but Rotterdam Rules promote have also said that, should consensus at global level be too long international trade coming, they will take matters into their own hands. In the ‘Commu- Fifteen countries signed the nication’, the commission also announced that a study on the new UN convention the balance between on-board working conditions for ships on intra- Rotterdam Rules at a ceremony European routes and the need for a robust competitive position for in Rotterdam on 23 September. said vessels would be carried out. To this end, a Task Force has been Among those who signed the established. Given the considerable importance to European short convention were major sea shipping, the KVNR will be following developments on this maritime nations like the issue closely. United States, Greece, Norway and the Netherlands. On The European Parliament is expected to publish a report on the behalf of the Netherlands, the ‘Communication’. The report’s author is Peter van Dalen (see convention was signed by the interview). At the end of 2009, the KVNR and Mr. Van Dalen had minister for Transport, Public in-depth talks on the report, and the KVNR approves of the ﬁrst Works & Water Management, draft report that was published early in 2010. Camiel Eurlings.

40 annual report 2009 royal association of netherlands shipowners 41 42 The European Commission’s so-called guidelines on state 0 20 40 60 80 100 120 aid for maritime transport are the parameters restricting national ﬁscal measures, like the tonnage tax. Therefore the KVNR has made the review of the guidelines, that has Germany been planned for 2010, one of its ﬁrst priorities. In anticipation of said review, in 2009, the European Singapore Community Shipowners’ Associations started preparing a policy document in which the crucial need for continua- Italy tion of the guidelines was outlined. The KVNR has been closely involved in this matter and continues to be so. Denmark

Pilotage rates and standards of service United Kingdom On a number of occasions the KVNR has provided input on proposed pilotage rates for 2010 and the standards of Sweden service. Partly as a result of that, the Netherlands Compe- tition Authority (NMa) decided not to raise rates for 2010, Greece even though the Pilotage service’s initial proposals contained signiﬁcant increases. The debate regarding the Malta standard of service provided and the introduction of differentiated levels of service still continues. The KVNR Netherlands is pleased about the NMa’s part in this matter, which is based on new legislation, and approves of the more World Fleet businesslike approach to the various subjects. Another gratifying point is that the KVNR has noticed that the Pilotage service is providing its clients with more frequent Shipping registers’ growth 2004- and detailed information, as well as allowing them to be 2008 in gross tonnage; the register involved in relevant developments. of the Netherlands is clearly lagging behind. This graph was included in the letter sent to the Second Chamber on 16 November 2009.

Source: International Transport Federation

annual report 2009 royal association of netherlands shipowners 43 interview Peter van Dalen

Fiscal facilities and innovation

At sea too, Western economies have had to watch all the power ﬂoat to Asia. In Brussels, Member of the European Parliament Peter van Dalen is in the process of crafting a package of measures aimed at containing the damage. Without fair competitive conditions for ship and crew, and without innovation, Europe’s shipping industry is heading for trouble; which in turn will have devastating consequences for the economy, the infrastructure and national security.

European shipowners –accounting for more than forty percent of the world ﬂeet– are not just in competition with each other, but especially with their counterparts in countries where wages and taxes are cheap and regulations are elastic. “This is where the shipping industry differs from other transport modalities. Its competitive position is mainly global and not always equal.”

Said unique position justifies a unique approach, according to Van Dalen. “Fiscal facilities are pivotal. The benefits to the Netherlands derived from the tonnage tax regime and the wage withholding tax facility far outweigh any financial outlay involved.” After all, a fleet is more than a handful of ships. “Should the fleet disappear, so will shipyards, port authorities, manufacturers of ships’ parts, corporate and legal services, and research and educational facilities. The maritime industry accounts for 186,000 jobs Peter van Dalen and thirteen billion euro, in the Netherlands alone. (ChristenUnie) is vice chairman of the European Therefore, Van Dalen considers it entirely justified for member Parliament’s Committee states to protect their fleets. “As long as this is done in a way that all on Transport. He reports of us within Europe have agreed on and approved of. To a consider- on behalf of the European able extent, the Union is dependent on its goods being imported Parliament and as such, and exported by sea. Are we willing to put that dependence in the his is a key role in deter- mining the community’s new shipping strategy until 2018.

44 hands of another continent? And what will we do in times of crisis? Tankers, container ships and cruise vessels also serve the nation’s strategic interest when it comes down to it.”

Merchant shipping itself will have to invest in innovation and education. “That will deﬁnitely be the way it is. The environmental performance must be improved. Coastal shipping has already made signiﬁcant investments in this area, but deep sea shipping in particular will be expected to make a huge effort.” Van Dalen: “I will be arguing for additional taxation on the ‘dirtier’ fuels and – in the long run – the introduction of a bonus-malus system in all European ports, just like Greenport Rotterdam’s. Clean ships will receive faster service and pay less. If you invest in cleaner transport now, you will eventually cut the costs of fuel and reduce consumption. And we are talking big money here. This kind of investment soon pays for itself.”

“In addition, shipowners will have to make serious personnel investments. Career prospects, both at sea and ashore, should be promoted in primary schools. Finance for distant learning, allowing seafarers to follow Dutch education even though they are in faraway ports should be made available. Duty rosters should allow for more time for employees’ social lives. It all costs money. But if you are unwilling to acknowledge the necessities, in the end you will lose to your competitors in – but more particularly outside – Europe.”

annual report 2009 royal association of netherlands shipowners 45 3.2 Shipping politics

Worldwide The continued liberalisation of world trade, including the freedom for maritime services, did not go smoothly in 2009. The negotiations within the World Trade Organization (WTO) may be best characterised by the words ‘slow restart’ and ‘scepticism’.

A European Commission study into trade-impeding measures by major European trade partners revealed that in 2009 around 220 trade-impeding measures were active. However, none of these imposed any direct limitations on shipowners. Trade-impeding measures in general do of course tend to have a negative effect on the volume of transport.

In Vancouver, in May 2009, the Consultative Shipping Group (CSG) – a consultative body consisting of maritime government represent- atives from European Union member states, Norway, Japan, Canada, Singapore and South Korea – discussed a large number of developments in the shipping industry. Partly thanks to the CSG, the American Jones Act’s potential limitations for offshore operators were prevented. Bilateral talks allowed the minister for Transport, Public Works & Water Management to point out to his Brazilian counterpart the discriminatory nature of lighthouse dues levied in that country.

On 23 September 2009 a historic meeting took place in Rotterdam on the occasion of the signing of an entirely new United Nations convention concerning the carriage of goods by sea. Many countries – including ﬁve European ones – signed the convention during the signing ceremony. The convention has become known as the Rotterdam Rules. The Rotterdam Rules provide clarity on the degree of responsibility and liability in maritime goods transport. The new convention will further international trade and will lead to reduced

46 costs. International shipowners associations like ECSA, the Interna- tional Chamber of Shipping (ICS) and the Baltic and International Maritime Council (BIMCO) have been urging all nations to sign the convention.

Europe A new directive concerning liner consortiums’ exemption from European competition regulations was published in September 2009. The exemption in the new directive will last up to and including 25 April 2015. Within ECSA, the KVNR provided a sound contribution to the directive’s content. The so-called European Maritime Safety Package, consisting of two European Directives and six European Guidelines all concerning safety and liability, was formally Maritime Court of the adopted on 23 April 2009. Netherlands centenary In November 2009, a symposium National was held to celebrate the Mari- In 2009 Dutch approval procedures for two IMO conventions time Court of the Netherlands’ concerning limitation of Liability and Compensation (1996) and on 100th -and last- anniversary. It Civil Liability for Bunker Oil Pollution Damage (2001) were on the was hosted by the Court’s agenda in the Second Chamber of Parliament. The KVNR recom- president, Udo Bentinck. Behind mended that the Netherlands ratify both very soon. him in the photograph you can The Short Sea Shipping Information Bureau will be continued for see speaker Mark Dierikx, three years; so will the relevant Ministry of Transport, Public Works Director-General for Civil Aviation & Water Management subsidies. & Maritime Affairs, a department of the Ministry of Transport, Public Works & Water Manage- ment. As of 1 January 2010, the Dutch Safety Board has assumed responsibility for investigating shipping calamities. The new Maritime Disciplinary Tribunal, formally appointed on 12 February 2010, will hear disciplinary cases arising from maritime incidents.

annual report 2009 royal association of netherlands shipowners 47 interview Marnix van Overklift

Taking into account the shipping industry’s global nature

Governments and industry must join forces. The preservation of a strong pan-European ﬂeet requires environmental and labour policies that take into account that the industry is a global one. Shipowners will have to invest and innovate. Continuation of the European guidelines for employment costs and corporation tax concerning the shipping industry and – where necessary – reinforc- ing them, is vital to the preservation of European shipowners’ competitive potential compared to their non-European counterparts. Those are vitally important issues, Marnix van Overklift of the European Community Shipowners’ Associations (ECSA) tells us.

Fortunately, the European Union understands the need to protect its fleet in global competition. The EU’s requirements regarding ecological soundness of ships and personnel and working conditions policies are totally justified. Van Overklift: “The European Commission is doing an excellent job of drafting new maritime guidelines. I agree with their objectives and strategies.” And yet, he is worried. Europe has to be careful they do not “put the cart before the horse” by undermining their competitive position with legislation that is disproportionately strict. Environmental requirements for instance, are definitely needed. Marnix van Overklift is the “However clean the shipping industry may be, in view of the European Community Ship- expected expansion and in the interest of staying ahead of road owners’ Associations (ECSA) transport, the industry will have to innovate. After all, if road president. ECSA is the federa- transport’s performance improves and short sea shipping’s does tion of national shipowners’ not, we will lose ground.” associations for the EU However, going off half-cocked will not do anyone any good. “Apart member states and Norway. from everything else, regulations must be global, be applicable to Up to the middle of 2009, he any and all flags and – for preference – be compatible with the used to be director and major European Union’s state aid guidelines.” share holder of Seatrade, the world’s largest reefer shipping Moreover, the effects will have to be assessed beforehand. Impact company. assessment, says Van Overklift. Before you know it, you can have

48 added a requirement that will harm the industry rather than beneﬁt it. He cites the following example. “The sulphur content of maritime fuel in the emission control areas in North-western Europe has to be reduced to 0.1%. That means that only the best quality fuel can be used there. The price will then not be – to name but a ﬁgure – four hundred dollars a barrel, but instead it will be eight hundred dollars a barrel. Shipowners cannot afford that. Scandinavian industry too will be hit far too hard by a requirement like this. And, ultimately, its effect on the entire industry will be to increase costs. This is what I mean by putting the cart before the horse. If and when environmental requirements make short sea shipping disproportionately expensive, road transport will increase anyway, resulting in all the undesirable effects Europe does not want: increased congestion on the roads, noise pollution and odour nuisance on land and increased carbon emissions all around.”

There are some obvious ways of stimulating coastal shipping. “Abandon and/or simplify administrative barriers, for instance. No customs obligations apply to a truck driving from Amsterdam to Portugal. A ship however, that is clean and takes the outside route has to spend a lot of time and money on all kinds of border formalities. This is something the European Union will have to even out. Our motto is: just like trucks.”

Fortunately, port authorities are becoming more and more aware of the need for efﬁciency. And, from 2011, inspections based on risk assessment before arrival should start reducing the excessive numbers of inspections by different inspectorates. “However, there is always room for more effort. I refer to the standardisation of e-forms. Disposal of waste, including domestic waste, involves a different administrative procedure in every port. To be truly competitive with road and rail transport, these mountains of paperwork need to be addressed.”

annual report 2009 royal association of netherlands shipowners 49 50 Online dossiers Colofon

This list of active Ballast water Published by dossiers may be found Carbon reduction Koninklijke Vereniging van on www.kvnr.nl. Consultative Shipping Group Nederlandse Reders – juni 2010 Cooling agents The dossiers contain Crew numbers Edited by information on Education and training in Palompon Bureau KVNR background and Education monitor developments over European Maritime Safety Package Interviews by 2009 and are listed in European maritime transport strategy Mariëtte de Bruijn the following order: European Competition regulations Fatigue Design Flagship Carree Visuele & HNS convention Interactieve Communicatie Innovation Liability Printed by Occupational health and safety Drukkerij Efficiënta Pilots Pensions Images supplied by Professional requirements KVNR members Risk-based Port State Inspections Peter J. van Es photography Security IMO Ship Security Officer Maritime Court of the Netherlands Social insurances Roy Borghouts Sulphur Tanker Management and Self Assessment Tonnage tax regime This annual report was completed VAT on 23 April 2010. Wage withholding tax facilities Wind farms A current list of members of the KVNR Board and office, as well as a complete list of members may be found on www.kvnr.nl

annual report 2009 royal association of netherlands shipowners 51 royal association of netherlands shipowners Wijnhaven 65B 3011 wj rotterdam Tel.: +31 10 - 414 60 01 Fax.: +31 10 - 233 00 81 [email protected] www.kvnr.nl