Shipping on Course in Greece

Aegean News THE QUARTERLY MAGAZINE OF AEGEAN AUTUMN 2003 Shipping On Course in Greece

Aegean Honored in Washington DC

DNV A Strong Greek Bond

Fujairah Aegean Bunkering in the Middle East

Plus Shipping Flows and Currents Aegean Update & Retail News A New∞¶ƒπ§π√™ - π√À¡π√™Era 2003 AEGEAN NEWS 1

Aegean editorial Core Activities The summer has been a period for Aegean to pre- pare for a variety of new challenges and new oppor- tunities. New personnel in our shipping, retail, Retail bunkering, and finance departments will strengthen ➔ More than 295 gas stations through- and enhance our performance and capabilities to out Greece proudly display the AEGEAN grow. In shipping, we are undergoing a process of logo, and our network is growing every week. AEGEAN's market share in Greece renovating and expanding our department and fleet is 4.5%. so that we are fully in line with new EU directives and the needs of our customers. Our new Fuel Quality Control Program (KEPEK) Shipping ➔ AEGEAN manages a fleet of 26 tankers, will ensure that the Aegean retail network maintains the highest standards in the ranging from 3,500DWT to 100,000 market and responds fully to what our customers demand and deserve: the finest DWT, that transfers and delivers oil to gasoline products in the country. our clients throughout the world. All We have appointed a new Internal Auditor to help ensure that our financial ships meet ISM standards. processes are done in accordance with the best international standards and best serve our customers and employees. Bunkering In addition, the Aegean retail family is growing at a pace that is meeting our ➔ In Piraeus, Gibraltar, Venezuela, and strategic targets for 2003. Soon, we expect the Aegean symbol to be seen in re- the United Arab Emirates, AEGEAN is a leader in providing the best bunkering tail outlets throughout the entire mainland. services available. In Piraeus, AEGEAN And, we are undertaking a new important initiative in Serres: operating fuel is the market leader in bunkering. stations within transit centers. Our growth demands that we have office facilities to serve each and every customer and associate in the best possible way. I am happy to report that we are Agency Services ➔ Ships from throughout the world rely in the final stages of constructing Aegean's new headquarters here in Piraeus. on our agency services at Piraeus and Our new nine-story office tower will proudly house all our Piraeus-based staff Gibraltar 24/7, from loading and dis- and will enable us to continue to grow as one of Greece's most dynamic energy charging, to spare parts and supplies. companies. We expect to move into our new headquarters in early 2004 and look forward to meeting and greeting Aegean associates from all over the world Lubricants in our new premises. ➔ AEGEAN exclusively stocks and sells ChevronTexaco automotive lubricants throughout its retail network.

DIMITRIS MELISSANIDIS

AUTUMN 2003 AEGEAN NEWS 1

contents Aegean's new headquarters 4 in Pireaus

Competition for ships Minister of Merchant Marine Aegean is preparing to sailing under a Greek George Paschalidis will be launch a new initiative 12 flag is expected to 8 steering coastal navigation 23 in the Greek market increase from 2005 policy toward enhanced that will radically with the enlargement performance in a competitive change the concept of the EU. but regulated environment. of "washing the car."

4 AEGEAN UPDATE 20 AEGEAN AWARDS Autumn 2003 6 FLOWS & CURRENTS Aegean Oil Honored in Washington DC Aegean News is published Trends and News in the oil and energy fields 21 STATION OF THE MONTH quarterly by AEGEAN 8 SHIP AHOY! 23 AEGEAN ROUTES MANAGING EDITOR Aegean Car Wash: A New Initiative Raymond Matera CHANGES IN THE MARKET The Ministry of Merchant Marine: Policies CONTRIBUTING EDITOR 24 FORUM George Fintikakis 10 SHIPPING DNV: Strong Bonds with Greek Shipping LAYOUT AND PRODUCTION New Standards, New Rules Multimedia S.A. 26 GANGWAYS INTERTANKO on the Energy Environment PRINTING AND BINDING 12 SHIPPING KEEPS ITS COURSE A. Psillidis & Co. IN GREECE 27 EXPLORATION OWNER The Story of Petroleum Aegean 16 AEGEAN SHIPPING 51 Akti Miaouli Street Captain Petros Paleokrassas Heads 28 MARITIME TRADITIONS 185 36 Piraeus, Greece The Ancient Ships of Santorini Tel: +30 210 429 2530 Aegean Shipping Fax: +30 210 429 3074 29 THE 2004 OLYMPIC GAMES E-Mail: [email protected] 17 FUJAIRAH Internet: www.aegeanoil.gr Aegean Bunkering in the Middle East The Ancient Games

Comments and suggestions 18 RETAIL 30 TRAVEL are welcomed. KEPEK Stands for Quality Kalavryta: The Birthplace of Modern Greece Aegean News is free of charge 19 AEGEAN MARINE 31 THE AEGEAN IMAGE and is available, subject to Products that say "We're different" availability, to any interested per- Aegean Marine Petroleum (AMP) son or organization. A Service and Growth Leader (2003) 32 AEGEAN PROFILE

AUTUMN 2003 AEGEAN NEWS 3 AEGEAN UPDATE

Aegean—New Headquarters New Manager Aegean is preparing to move into its new, company-owned premises, a custombuilt nine-floor, 2,600 m2 office building in the heart of Piraeus. at Aegean Shipping According to Aegean President Dimitris Melissanidis, the new headquarters of Captain Petros Paleokrassas was Aegean should be ready in January, 2004. "As the company expands, Aegean named manager of needs to have a modern, fully-equipped headquarters with state-of the-art in- Aegean Shipping. stallations, including our IT infrastructure, our work spaces, and all our service fa- Mr. Paleokrassas cilities. We are building these new headquarters to meet our new challenges and to began his new serve our customers with total dedication and efficiency. It is an investment in our responsibilities at staff, our clients, and our future," said the president. the end of June, 2003. For an inter- The new building will combine management offices with open space work sta- view with Mr. Paleokrassas, See inside. tions, reception areas, and fully dedicated floors for each of the Group's operations: Aegean Oil, Aegean Shipping, Aegean Agency, and Aegean Marine Petro- leum. In addition, an environmental company will be headquartered in the Anna Sampson Weds building, which will feature a cafeteria, a staff gymnasium, a small cinema, re- Eleftherios Siasakos ception areas, conference rooms, visitors' areas, and an ATM. Technical support, Recognizing "family" security, logistics, accounting, and maintenance will be housed in dedicated and as the key foundation specially designed areas. Aegean's new headquarters will be located at 42 on which a healthy so- Hatzikyriakou Street in Piraeus. ciety is based, Aegean management supports the institutions of family and motherhood. Over the past three years, 10 Aegean associates have married, most of them women, and we hope that other single, young men and women will follow their examples. Anna Sampson, a new member of Aegean’s Bunkering Team, tied the knot with Elefthe- rios Siasakos, a Glaxo executive. The wedding took place on Sept. 20 at St. Fotini’s Church in Nea Smyrni. George Melissanidis stood in as best man. The wedding reception was held at the Island seaside club/restaurant and was attended by 300 guests, including Dimitris and Jacob Melissanidis and their families. Aegean Enters New Sector Aegean Oil is entering a new sector by operat- ment, on seven hectares alongside the Serres hold a 25% share in the company, while urban ing fuel stations within transit centers. The regional freeway in the Krinos area, will con- transport companies of the prefecture hold move started in Serres, where the company sist of parking facilities, storage spaces, KTEL, 20% and the local council the remaining 5%. won the tender for the exclusive supply of lu- and refreshment areas. "Afetiria A.E." will be Aegean, EKO, Shell, TEXACO, Avin and BP all bricants and fuels at a fuel station located managing the transit center. The municipality took part in the first phase of the tender. within a new transit center for heavy vehicles of Serres, the intercity KTEL bus company, and Aegean won the tender to construct the fuel in the prefecture. The €1.1 million develop- the local Transport Company Association each station and lubrication center, after bettering

4 AEGEAN NEWS AUTUMN 2003 New Lubricants Manager at Aegean Marine Petroleum S.A. Aegean's Expanding Dimitris Bakinezos the industrial sector. Ten years ago he Retail Network was named Lubri- joined the marine department of Mobil Aegean is expanding its retail network cants Manager at Oil Hellas, and was involved in the sales in Greece by several stations per month. Aegean Marine Pe- and marketing of marine lubricants in Listed below are stations that have joined troleum S.A. Mr. the Greek market. In 1999, he was trans- the Aegean network during the past Bakinezos is a me- ferred by Mobil to London, taking the several months. chanical engineer position of ExxonMobil marine lubri- graduate of the University of Illinois, cants sales manager, mainly responsible Chicago U.S.A. He worked for four years for Greek accounts in the United King- in marine projects/marketing for Tech- dom and a part of the Greek marine nava S.A, the biggest marine representa- business sector that reported to the Lon- tion company in the Eastern Mediter- don office. On August 1, 2003, Mr. ranean. He then became the market- Bakinezos became Lubricants Manager ing/product manager of Technellas in of Aegean Marine Petroleum S.A. New Manager Ampeli, Serres—Eleni Sidiropoulou at Aegean's Gibraltar Bunkering Station Koila, Kozani—Peristera Sirakou Kyriakos Maragoudakis is Aegean's new manager at its Gibraltar Bunkering Sta- Pireaus—Athina Zorbala tion. Captain Maragoudakis, who is from Athens, has received his first class sta- Koudounia, Drama—Karayiannidis S.A. tus as Captain. He has attended numerous training courses and seminars since N. Moudania, Halkidiki his career began and is a member of MENSA, the international society for peo- Stelios Mantzinas-Moustakas ple with high IQ's. Captain Maragoudakis previously worked at Hellenic Slops, Meg. Avlaki, Lefkada—Efstratios Gazis Aegean Shipping, Avin Corporation, and other companies in Greece. Marathoupoli, Gargalianoi Messinia Vassilios Kafkis New Internal Auditor Ag. Anagyri—Savvas Vavassis Polykastro—Mihail Hasekidis Konstadinos Dimakos assumed duties of Internal Auditor at 25th km Thessaloniki-Veria Rd. Aegean in June. Mr. Dimakos graduated from the Athens Uni- Dimitra Messidi, Argyris Messidis versity of Economic and Business with a specialization in finan- Portaria, Halkidiki—Fotis Tsarouhas cial analysis (balance sheet analysis and tax issues). He has ex- Xyrokampi, Lakonia—Yiorgos Danos tensive experience, since 1979, as credit controller and account th manager in large manufacturing, commercial, and shipping com- 8 km Nat'l Rd. Agrinio-Amfilohia Antonis Karamitros panies and as auditor of the State Corps of Auditors. More inside. 8th km Leivadias-Delfon Rd. Ioannis Stathakos offers made by Shell and TEXACO, which par- within the city center used by these vehicles Ag. Kon/os, Fthiotida—A. Karapiperis ticipated in the last phase of the tender. for parking will become available. The land G. Filon O.E. Aegean undertook the construction and opera- has been allocated, the construction of the Skala Rahoniou, Thassos tion of the fuel station, although Texaco Lubri- storage spaces has been completed, the Apostolia Apostoloudi cants will be available at the lubrication center. parking facilities are already available, and Metagitsi, Halkidiki—Zafeiris Triantafyllos The project is expected to relieve traffic con- the fuel station will soon be open. Areopoli, Lakonia—Ilias Kasidakos gestion in Serres considerably. The daily pas- The transit center should be complete and in Kato Tithorea, Fthiotida—Dimitris Moraitis sage of heavy vehicles through the center of full operation within 2003, becoming a model Serres—Olga Christoula the city will cease, while substantial areas for other prefectures in the country to follow. Kallithea—Natalia Petrova, Konst. Fragos O.E.

AUTUMN 2003 AEGEAN NEWS 5 FLOWS & CURRENTS

Siberian Oil Wealth Has Consequences Sulphur Warning According to recent reports, despite the likely implementation of European regional caps on sulphur content of marine fuels, ship operators need to remain vigilant when dealing with high sulphur fuels. Claude Ourvier-Buffet of Total Lubmarine says: " It seems odd to be ask- ing what effect very high sulphur fuels will have on engine lubrication. Yet, despite an immi- nent new worldwide sulphur cap of 4.5% and lower regional limits of 1.5% or less, there are areas of the world where fuel sulphur content is climbing." Mr. Ourvier-Buffet suggests that engineers increase the monitoring of engine performance and of the condition of piston crown and the ring pack through the scavenge ports. Feed rates, he says, should not be increased initially, as this may lead to increased deposits on the top land and also in the grooves. "If high sulphur is to be burned regularly, then the best answer may be to switch to The vast amounts of oil in Siberia are an oil with a BN higher than 70. This should only be done after monitoring the engine burn- taking a toll on the local landscape, as ing the higher sulphur fuel and after discussions with engine manufacturers." environmental laws have been scrapped and the rush to exploit the reserves is leaving ugly scars in a virgin wilder- Romania's Fleet Suffering ness. Authorities acknowledge that oversight is lacking throughout the re- Before the fall of communism, Romania had the world's third largest merchant gion and new legislation must be en- fleet in terms of capacity. The country had almost 300 ships totaling 5 million acted to ensure that the oil wealth can DWT. Today, Romania has 24 ships owned by a few private firms: five bulk be extracted without a negative effect carriers, 10 general cargo ships, one training cargo, six Ro-Ro vessels and two on the environment. Russia has been single-hulled tankers. The poor privatization process has led to the current rapidly expanding its efforts to supply the world with oil in an attempt to state of affairs, which the county must rectify if it hopes to meet criteria for earn badly needed foreign currency. EU membership in the near future.

Call for Increased Greek-Bulgarian Inter-European Energy Cooperation Transport Networks During a visit to Bulgaria to inaugurate a refur- The European Commission announced bished steel mill acquired by a Greek company, the Inter-European Transport Networks Economy and Finance Minister Nikos Christo- plans, which include the joint funding doulakis said that the two countries should ex- of two projects in Greece or partly in pand their economic relationship beyond Greece. The rail line connecting the trade. After speaking with Prime Minister Igoumenitsa port with Thessaloniki and Simeon Saxecoburg, the minister said: "We Kalamata via the Rio-Antirio Bridge will discussed several issues, especially issues be funded in part by the EU and has a concerning cooperation between the two coun- completion deadline in 2014. The sec- tries on transport, energy, and communications networks." Greece is interested in participat- ond project involves the construction ing in the privatization of the Bulgarian electricity distribution network. of the Athens-Sofia rail line, which has The primary issue of importance, however, is the construction of an oil pipeline between Bur- a completion deadline within 2015. gas in Bulgaria and the northern Greek port of Alexandroupolis. The pipeline will provide Rus- sia with an outlet for its oil from the Caspian Sea region and would compete with the Baku- Tswibilsi-Ceyhanb pipeline to Turkey, now under construction. More than 1,500 Greek businesses are active in Bulgaria, with a total investment of more than €1.6 billion. R

6 AEGEAN NEWS AUTUMN 2003 194,000 People Employed in Oceangoing Shipping Texas City Considers Drilling A study done by Pireaus of all Greek salaries in University shows that 2000. Of the 194,000 on Municipal Land Greece's oceangoing employees, 60,000 are The Fort Worth city council voted to shipping sector employs recorded as seafarers, consider allowing drilling for oil and gas around 194,000 peo- 11,000 are employed in on city-owned property. Oil and gas ple, accounting for one shipping companies, and of the country's major employers. The 123,000 are in the shipping service sec- drilling, city politicians say, which pro- study, the first of its kind ever under- tor. The total tax revenue contributed to duced much of the wealth in Fort Worth taken, stated that salaries to those em- the Greek coffers in 2000 from shipping today, could provide a new revenue ployed in the sector accounted for 8.3% amounted to more than €255 million. source for the cash-strapped city. "It's a very good opportunity for revenue and Single-Hull Effects for the city to provide services for our New EU legislation mandating the retirement of single-hull tankers is having a significant ef- citizens," he said. Just one "very good" fect on the Greek fleet. According to Reuters, of the 488 Greek-owned tankers slated for re- well could generate $2.2 million over its tirement under the first set of rules for single-hull ships, 321 will be affected by the new leg- expected eight-year lifetime, and one islation, which will curtail their lives from bewteen one and five years. Quoting Nicolas Efthymiou, president of the Greek Union of Shipowners, the report said "We are either going "poor" well could generate $376,000 for to have a massive scrapping of ships, with no commensurate availability of new buildings and the city, according to officials. therefore an upsurge in freight rates, or countries in the Far East and Latin America will feel Private companies have shown renewed like the dumping ground of ships that the U.S. and Europe don't want." 9 interest in recent years in drilling in the Barnett Shale, a vast underground nat- ural gas reserve that is believed to be Drilling in Greece one of the largest in North America. The Regal Petroleum Company of Australia is said to be ready to invest U.S. $30 million The increased interest in urban drilling for initial drilling for oil in the Prinos field off the coast of Thassos. Kavala Oil, a munici- has sparked opposition from some resi- pally-owned company in charge of drilling, hopes to expand its drilling in order to in- dents and led to regulations in some crease production beyond the current 3,800 barrels per day. Studies indicate there are oil deposits at a depth of about 3,000 meters in the region and the cost of drilling is said to cities to restrict noise, ensure safety and be about U.S. $8 million. attempt to prevent environmental damage. New Fort Worth regulations went Marine Pollution—A Criminal Offence into effect last year regulating distance, insurance, landscaping, safety, noise From now on, polluting the sea will be considered a penal and operating hours in some areas. Fort offence, according to EU regulation 417/2002. Every captain, shipowner, administrator, charterer, or representative Worth officials said they get inquiries of a ship classification society that is found guilty, either nearly every day from companies inter- through his/her actions or negligence, of polluting the ma- ested in drilling on city property.The rine environment, will be jailed. Furthermore, the act will city likely would lease city property to be considered a felony. Over and above the penalties, the directive makes provisions of imposing a permanent or provisional prohibition of commercial private drilling companies. In return, activity, as well as prohibiting access to public assistance or subsidies. With this directive, the it would receive lease bonuses, royal- EU puts in place regulations equally as strict as those that apply in the United States for lay- ties and annual revenue, officials said. ing up single-hulled tankers.

AUTUMN 2003 AEGEAN NEWS 7 COASTAL NAVIGATION Ship Ahoy! Changes in the Market In light of a free market in 2004, the Minister of Merchant Marine George Paschalidis will be steering coastal navigation policy toward enhanced performance in a competitive but regulated environment.

he Greek coastal navigation Greek coastal navigation companies, companies claim that the government market will see dramatic changes who are pressing the government only has the right to prescribe the Tfrom the beginning of 2004, af- strongly for a total free market "here number of employees whose duties are ter the so-called "cabotage" is lifted. and now." With regard to third-party related to safety of the ship at sea, and This means that other European coastal tax, which increases fare prices by 35- to the quality of services provided. navigation companies will be given the 41%, the companies have resorted to Coastal navigation companies have opportunity to compete in the domestic the responsible public body. As an ex- declared that should the MMM con- market, and procedures will be kept ecutive of a large coastal navigation tinue to intervene in their financial short with very little redtape. company points out, "if there were no plans after the first of 2004, they will At the same time, the intervention third-party tax, we would be able to resort to the State Council and to Eu- rights of the Ministry of Merchant drop fare prices by about 20%." How- ropean Courts. In the framework of a Marine (MMM) that apply today with ever, this is not the only bone of con- free market, the companies envision regard to determining fares, mandato- tention between the MMM and the freedom in scheduling itineraries as ry discounts, and the make-up of the coastal navigation companies. they see fit on routes of their choice. crew will almost completely cease to apply. State intervention will be re- “From the beginning of 2004, state intervention will be stricted to issues concerning safety, restricted to issues concerning safety, and may include and may include enforcing obligations by companies to observe schedules. enforcing obligations by companies to observe schedules.” In these new waters, Minister Pascha- lidis has a challenging task ahead of him: A Free Market "Here and Now" The only type of government inter- on the one hand, he is asked to facilitate Capping economy class ticket prices is vention they are willing to accept the market to operate under the terms of another heated topic. At the beginning would be on issues related to safety. In free competition and lift all obstacles; on of last summer, a 2.44% "cap" was im- the matter of withdrawing ships above the other, he cannot abandon the public posed on the increases the coastal a certain age, after contesting the gov- policy followed today by the ministry navigation companies wanted. This ernment’s decision to lower the age of that protects the interests of the more was probably the last time that the ships to be withdrawn from 35 to 30 vulnerable social classes, such as capping state could intervene. years, they await an EU court decision. increases to third-class tickets. The companies are pressing for the On his part, the minister has made From the time he took office, the abolition of most mandatory discounts clear from the outset that the free mar- minister's position has been clear: the on tickets, or at least subsidizing them, ket will be put into effect with the in- MMM will intervene when the prices which has been accepted to some ex- terests of the public at heart. However, of economy class tickets are excessive- tent by the MMM. sources say that he has asked for the in- ly high, and that mandatory discounts The make-up of the crew is another volvement of the Marine Policy Council on tickets will continue to apply. issue exacerbating relations between in order to discuss a proper strategy. This position does not sit well with the MMM and the companies. The From the beginning of 2004, the

8 AEGEAN NEWS AUTUMN 2003 free market in coastal shipping will nanced through long-term concession compel companies operating in the contracts (PFI type). Aegean to use discounts willingly in In this way, the state will provide their competition drives. The first signs the investor with an annual lump sum, of this appeared on the Piraeus-Hania subject to the lowest official tender, route, when ANEK lines offered free which will cover operating expenses passage for cars on their early morning that income forecast by servicing these weekend crossings. It is too early to routes has not covered. determine which coasting company has come out on top. It is certain, The First Crossing though, that consumers, Greek and After research carried out by the Min- foreign, reap the fruit of a competitive istry of the Aegean, in cooperation with market: discount policies, bonuses, and the MMM and the Ministry of Finance, to a certain extent, better services. it was decided that the program should Minister of Merchant Marine George Paschalidis undergo a trial run on three routes "Two-speed" Coastal Navigation to classify the route ‘barren’ and there- connecting the islands of the North- The government is intervening in an- fore to subsidize crossings. Further- eastern Aegean with the mainland and other important area that concerns less more, after receiving the subsidies in the islands of the Dodecanese. frequented routes. The picture we see question, they proclaim engine failure, The routes are: Alexandroupoli- today of coastal navigation in the exempting them from covering the Lemnos-Mytilini-Chios-Samos-Kos- Aegean is "two-speed": on the one hand subsidized part of the route, especially Rhodes (one crossing per week); Samos- we have the popular routes, teeming during winter months when demand Chios-Mytilini-Lemnos-Volos (one with modern high-speed vessels; on the for travel is very low. crossing per week); and Samos-Chios- other, we have the less-profitable routes For example, if a ship covers the Mytilini-Lemnos-Kavala (2 crossings to smaller islands, covered by old coast- route Piraeus – Paros – Naxos – Ios – per week). In the spring of 2004, the ers, which chug along to fill connection Santorini – Anafi and the subsidized contract is expected to be signed, and the voids to remote islands, and which ben- part of the route is between Santorini first crossing to be made during 2004. efit from subsidies that have tripled in and Anafi, the ship will stop in Ios and the last two years. proclaim mechanical failure. The Delays The problem lies in the 23 routes the In the last eight months, more than 30 Ministry of the Aegean is responsible Scheduling New Ships delays and changes to the forecast for, and the 12 routes the MMM is re- For all these reasons, the Ministries of schedules were recorded on these three sponsible for. All these are subsidized, Finance, the Aegean, and Merchant Ma- routes because of the frequent inability and this makes the two ministries op- rine are promoting a program that will of older ships to withstand bad weather timistic that they will be covered when increase the number of crossings toward conditions. The program is expected to the relevant tender is announced. remote islands, reconnecting them to the develop gradually over the next four Hefty subsidies lure shipowners to mainland, and boosting tourism. years to cover the remainder of less- consider less-profitable routes. In the The new program includes the grad- popular routes in the Aegean, rendering last two years, subsidies shot up from ual introduction of large ships (over 100 the current system of annual tenders for €11.7 million to €35.2 million. Today, meters long) on 20 less popular routes in contracts unnecessary by 2008. according to sources, there is a deficit the Aegean, ships with modern specifi- It is common knowledge that most of of around €11 million (3.7 billion cations, high speeds (20-22 knots), the smaller islands in the Aegean are drachmas) in financing these routes, a sufficient carrying capacity (800-1000 cut off from their administrative cen- deficit that the Ministry of Finance passengers, 400 cabins, 140-170 vehi- ters. Milos, for example, lies 40 miles has vowed to cover immediately. cles), and capable of withstanding winds from Syros, but it is much easier to trav- However, it is an open secret that as strong as 9 on the Beaufort scale. el to Piraeus to get to Syros than to wait certain coastal navigation companies Government subsidies will be dou- for a boat going to Milos (usually mak- do not schedule crossings on certain bled to put the new program into ef- ing one crossing a week). Kastelorizo routes to compel the relevant ministry fect, and for this reason it is to be fi- faces similar problems.

AUTUMN 2003 AEGEAN NEWS 9 SHIPPING New Standards, New Rules The European Union has taken strict measures to protect the marine environment after the extensive damage caused by the "Erica" and "Prestige" tanker accidents. These measures have met strong opposition by member states and shipping circles, who claim that their shipping interests will be harmed.

reek shipowners now place ment outlines the terms and condi- their hopes on India, Brazil, tions for safety on board and at sea, Gand Japan, which have appealed and includes the protection of the to the International Maritime Organiza- marine environment, although many tion (IMO) to reject the directive of the believe it needs urgent revision. For European Union that calls for the with- many decades, the shipping industry drawal of all single-hulled tankers. has founded its structures and oper- The EU directive (417/2002) that ations on this agreement. roused strong opposition among the in- ● The withdrawal of category 2 and 3 ternational shipping community calls for EU measures at the beginning of the tankers in 2010 instead of 2015. the withdrawal of single-hulled tankers summer. The IMO recommended an This applies to tankers that were starting from 2005 instead of 2010, as amended proposal plan that will be constructed after the Marpol agree- was stated in a previous directive. discussed in December. ment. An extension until 2015 is Thus, older and more fragile single- If the Community directive is final- proposed for ships younger than 20 hulled tankers constructed before ly approved by the IMO, it will apply years or until these ships reach a 1982 will be withdrawn in their 23rd internationally. If not, then all single- specific age (20, 23, or 25 years). year instead of in their 28th, which hulled tankers not under EU flags will applied until now. Other categories of be prohibited from entering European Who is Affected large single-hulled tankers will be waters from 2005. The effect this will have on shipping is withdrawn before 2010. The trans- More specifically, the IMO com- enormous, hence the fierce opposition. portation of heavy petroleum products mittee proposal plan provides for: Brazil will be forced to withdraw most by single-hulled tankers will be pro- ● The withdrawal of category 1 tankers of the 400 tankers sailing under each hibited with immediate effect. in 2005 instead of 2007. This ap- flag. Japan will have a significant part of The objections of India, Brazil, and plies to tankers that were construct- its fleet out of operation since it would Japan were voiced and discussed at an ed before the international Marpol not be able to travel to the EU. In this IMO committee meeting about the agreement was signed. The agree- event, it is almost certain that countries, Profile of Greek Management Companies (729 Companies)

7 17 11 10 12 38 7 7 6 2 7 1

Fleet size: 25+ vessels | No of Companies: 25 Fleet size: 16-24 vessels | No of Companies: 31 Fleet size: 9-15 vessels | No of Companies: 69 % of total of Greek Companies: 3.48% % of total of Greek Companies: 4.25% % of total of Greek Companies: 9.45%

Vessels: 0-9 years of age Vessels: 10-14 years of age Vessels: 15-19 years of age Vessels: 20+ years of age

10 AEGEAN NEWS AUTUMN 2003 companies and will be a deterrent for the correct maintenance of older ships. There is a risk that ships will be driven out of the Greek register, con- trary to the wishes of the Greek government, which wants to keep capable administrators, enterprises, and seamen within its borders.

What the Opposition Says The other side argues that in recent years, huge investments were made to construct a modern fleet of double- “The EU directive (417 / 2002) that roused strong opposition hulled ships that remain to a large extent underutilized because they cost among the international shipping community calls for more to use than single-hulled tankers. the withdrawal of single-hulled tankers starting from 2005 With respect to applying a stricter institutional framework on an interna- instead of 2010, as was stated in a previous directive.” tional level, experts in shipping criti- cize the slow decision-making process- shipping organizations, and even indi- of relatively young ships. These ships es of the IMO. vidual shipowners will resort to Euro- were constructed after the Marpol They point out that IMO proce- pean Courts for hefty compensations. agreement and, although they are sin- dures allow for extensive dialogue be- gle-hulled, have higher safety specifi- tween member-states, which precede Repercussions for Greek Shipping cations. Most of them are under 15 any shipping measures taken of an in- and Reactions years old, and have not yet made the ternational scope, and in the past, they With respect to Greece, by 2010 the returns on investment expected since have lasted up to two years. revised EU directive will send 439 their construction. They believe that, even if talks did Greek-owned single-hulled tankers The accumulation of cargo that will reach a conclusion between the coun- into "retirement," 88 sailing under not have means of transportation be- tries in question, an 18-month margin Greek flag and 351 under foreign flag. cause of a shortage of ships, and the would have been granted to the shipping For this reason, representatives of the compulsory use of double-hulled ships community to adapt to new regulations. Greek shipping community are putting will push up the price of transporting According to statistics by Clarkson, in together a strong case against the di- oil, a price increase that will be borne 2002, the international tanker fleet rective in question. Their argument: by the European consumer. comprised 7,320 tankers, 5,243 of them If it is put into effect by 2005, it The proposals will have a negative single-hulled. Of the remaining 2,077, will lead to the premature withdrawal impact on the balance sheets of many 575 had capacities below 10,000 tons.

11 26 23 29 10 17 6 18 84 119 256 7

Fleet size: 5-8 vessels | No of Companies: 138 Fleet size: 3-4 vessels | No of Companies: 158 Fleet size: 1-2 vessels | No of Companies: 308 % of total of Greek Companies: 18.92% % of total of Greek Companies: 21.66% % of total of Greek Companies: 42.24%

Based on the Greek Shipping Directory | May 2003

AUTUMN 2003 AEGEAN NEWS 11 SHIPPING Shipping Keeps its Course in Greece Responding to the pressures of heightened competition in the shipping industry, Greek shipowners ordered 164 modern large-tonnage ships during 2003.

rders for new ships by Greek shipowners have reached record Ohighs this year. According to the ship broking agency, N.Cotzias, Greek shipowners have ordered more ships during the first seven months of 2003 than they ordered during the whole of 2002. The value of the new orders is estimated to be over $1 billion. Included in the orders are 117 new tankers for the transportation of crude oil and its by- products. Maintaining first place in European commercial shipping and a 17.8% tonnage share of the international market is not an easy task for the Greek-owned commercial fleet. Competition for ships sailing under a Greek flag is expected to increase from 2005 with the enlargement of the EU. The addition of 10 countries is a chal- lenge as well as a threat for Greek shipping, since it opens new markets while at the same time allows in new competitors. It is an open secret that Cyprus and Malta are already considered important stakeholders, although a large part of their fleet depends on Greek shipping. Today, Greek companies own about one-sixth of the international merchant fleet. With 3,504 commercial ships of all types, 60% of them tankers, Greek shipowners lead the shipping industry. Greece is also the frontrunner in Europe, with 1,274 ships under Greek flag constituting 23% of the European fleet.

12 AEGEAN NEWS AUTUMN 2003 Greek shipowners state that keeping same year, 140 more ships, with a total the level of competition high among capacity of 4,71,000 tons, registered ships sailing under the Greek flag, in the Greek National Register. One in Four Seamen among other things, demands low la- For the Ministry of Merchant Ma- bor costs. This necessity has resulted rine, "what counts most is not so much is a Foreigner in companies avoiding the Greek ship- the number of ships, but the fact that the According to a report by European Commu- ping register during the last 10 years. ships that chose to sail under the Greek nity Shipowners Association (ECSA), one in The National Shipping Register flag in 2002 are on average five years four seamen working on commercial ships shows that only 36% of ships owned by old, as opposed to the average age of the that sail under a Greek flag is a foreigner. Greek-owned companies are registered ships that left the registry, which was 23 Based on statistics in 2002, foreign em- in Greece. The deficit this creates for the years." The strategy of the Greek gov- ployees on the Greek shipping register num- Greek economy is not negligible. The €7 ernment is not to win back Greek-own- bered 7,160 and Greek seamen 17,200. In billion that Greek commercial shipping er vessels en mass but to support com- total, 55,000 Greek seamen, most of them brings to government coffers would be petition and to maintain its leading po- in oceangoing shipping and on high salaries, over €20 billion if all Greek-owned sition in EU marine transport. are employed on Greek-owned ships. About ships sailed under the Greek flag. 1,000 work at the offices of shipping com- Between 1994 and 2002, the total Lifesaver for the Economy panies, and roughly the same number work number of ships registered on the na- Greek shipping is a "lifesaver" for the in services supporting the industry. tional register dropped significantly— economy, its growth, and for employ- The country that is facing an irreversible 649 ships abandoned the Greek flag. ment. Without funds generated by trend in their naval human resources is Nor- The encouraging fact is that since last shipping, the balance of payments in way. According to the same report, in 2002, for every Norwegian seaman there are two year, Greek shipowners are showing 2002 would have shown a deficit of foreign seamen. Norwegian seamen em- much more interest in returning to over 19% more for current transac- ployed last year numbered 12,500 com- the Greek flag. During 2002, out of tions. At the same time, oceangoing pared with 23,500 foreigners. the total number of Greek-owned shipping employed 192,000 more Holland has recorded a balance, with 8,940 ships de-registering from the national people, directly and indirectly, be- Dutch seamen and 8,200 foreigners. The register, only 10 preferred to sail under tween 2000 and 2002. Without these country with the most seamen is the U.K., a flag of convenience, while the re- jobs, employment would have been with 20,500 seamen and with a very small mainder went to the scrap yard. In the 6.2% less than it currently is. percentage of foreign seamen on ships sailing under the Union Jack. European Shipping in Numbers In total, the European shipping industry em- Number of ships Tons Gross Capacity in tons DW ploys over 2 million European citizens (in- AUSTRIA 7 32.742 42.223 cluding Norway and Iceland). Of those, BELGIUM 10 7.295 11.631 190,000 are seamen, and 70% of these are FRANCE 195 4.164.052 6.015.918 European citizens. GERMANY 542 6.157.397 7.361.541 Manning Greek-owned ships with foreign DENMARK 449 6.886.624 8.628.142 hands significantly lowers operating costs. GREECE 1.274 28.383.650 47.885.277 However, lack of experience and profession- IRELAND 44 227.670 150.757 al training negatively influences the com- ICELAND 14 8.937 6.288 petitiveness of the commercial fleet. Refer- SPAIN 233 1.693.092 1.911.476 ITALY 847 9.199.516 9.924.559 ring to the relationship between competi- LUXEMBOURG 56 1.351.547 1.971.302 tiveness and crew members, Greek UNITED KINGDOM 437 5.297.181 4.481.974 shipowners stress that "for Greek shipping NORWAY 1.392 21.394.298 32.348.779 to continue to exist, there must be well- HOLLAND 783 4.965.000 4.367.000 trained Greek officers. For Greek officers to PORTUGAL 168 1.070.352 1.673.437 exist, there must be ships sailing under the SWEDEN 357 2.881.090 1.775.637 Greek flag, which in turn will exist only if FINLAND 167 1.414.271 1.038.678 they are competitive." TOTAL 6.975 95.134.714 130.594.619

Source: Lloyd’s Register of Shipping, European Community Shipowners Association

AUTUMN 2003 AEGEAN NEWS 13 SHIPPING

Shipping also creates and sustains a way, Greece’s largest competitor, mea- large number of companies servicing its sures taken to increase competitiveness needs. Doctors issuing health certifi- resulted in a 10% increase in the num- cates to Greek seamen generate about ber of vessels flying the Norwegian flag. €1.7 million annually, and taxi drivers Changes in the Greek merchant ma- collect around €2.7 million transport- rine tax environment include reductions ing them to and from airports. in tax rates: based on the one-time an- According to a recent study in Hol- nual tax rates of 1975, a small-tonnage land, ships make up 30% of shipping’s vessel paid $5,053; under the new tax net total value contribution to the rates, this has been reduced to $1,486. Dutch national economy. The remain- Fewer taxes on international ship- ing 70% comes from offices and ser- ping comes as a relief for large-tonnage vices established in Holland support- ships, whose taxation fell from $160,000 ing the ships on land. to $47,000.

Favorable Tax Environment Repercussions From The tax environment has become more EU Enlargement favorable for Greek shipowners after the Analysts say that with the enlargement government created 40% tax reductions reductions in the number of community of the EU, theoretically at least, the on oceangoing vessels in 2002 com- seamen to man ships and a 40% reduc- Greek shipping market will expand, but pared with tax levels that applied in tion in employers’ contributions for in practice all will be judged by how 1975. However, the measures taken by German seamen employed in vessels competitive it is. Based on the latest the merchant marine to support ship- sailing under the German flag. In Nor- statistics by ECSA, the European ping have a long way to go. A representative of the Greek Shipowners Associ- Number of Greek Shipping Companies in Operation ation says that there is still a lot to be done to make the Greek shipping regis- 900 ter more competitive and appealing to the majority of Greek shipowners. 750 In other EU countries that compete 600 with Greece, oceangoing vessels enjoy

more "privileges," such as being able to 450 select their own crew, having insurance contributions paid entirely by the gov- 300 ernment, and even being exempt from paying crew repatriation costs. 150 729 749 785 835 754 926 In Germany, the government an- 0 nounced measures that included further 2003 2002 2001 2000 1999 1998

European and International Shipping for the period 1990-2002 Year European Fleet International Fleet Ships on the European register as Number of ships Tons gross (million) Number of ships Tons gross (million) a percentage of the international fleet 1990 7,659 72.3 38,221 383.9 18.80% 1995 7,116 83.1 42,121 458.4 18.10% 2000 6,783 84.3 45,023 518.2 16.27% 2001 6,912 92 45,322 534.6 17.21% 2002 6,975 95.1 45,476 549.3 17.31%

Source: Lloyd’s Register of Shipping

14 AEGEAN NEWS AUTUMN 2003 Community Shipowners Association, Greece is the leading shipping power of Distribution of the Greek fleet according to the type of ship the European Union, with 1,274 ships and based on capacity (tons dwt) and a capacity of 47.88 million DWT. Bulk liquid cargos (tankers, ships carrying chemical cargos) 60% Admitting 10 new member coun- Bulk carriers for dry cargos 34% tries into the EU from 2005 will mean Passenger ships, car ferries, container carriers (refrigerators etc.), cruise ships 6% that Greece will move to third position Source: Lloyd’s, statistics of the international mercantile fleet 2002 after Malta, which has 1,361 commercial ships on its registry, and Cyprus, with 1,277 ships on its registry. It is certain that the expansion of the EU from 2005 will significantly strengthen the profile of the European shipping industry, given that it has weakened considerably in the last few years in the international arena. In 12 years, from 1990 until 2002, the European commercial fleet has lost a large and important part of its fleet on an international level. In 1990, the European fleet, comprised of 7,659 commercial vessels with a total capacity of 72.32 million tons gross and made up 18.8% of the international commercial fleet. Twelve years later, in 2002, the European fleet, comprised of 6,975 ships with a total capacity of 95.1 million tons gross, makes up 17.31% of the international fleet The six countries with shipping industries joining the European Union are Malta, Cyprus, Poland, Estonia, Latvia and Slovenia. Together, they pos- sess a commercial fleet of 2,970 ships with a total capacity of 52.15 million tons gross, or 83.2 million DWT.

International Shipping in European Hands Ships sailing under a European flag constitute 17.4% of the international commercial fleet. However, the total ships owned by European companies, without necessarily being registered in Europe, make up 41% of the international commercial fleet. According to statistics of the European Community Shipowners Association (ECSA), the total number of ships in the European commercial fleet increased by 3.25% between 2001 and 2002, bringing the total to 6,975 ships with a total capacity of 95 million tons gross. Ships transporting containers make up 23% of the European Commercial fleet, and passenger/car ferries 56%. The average age of ships in the European fleet is 11.9 years compared with 12.3 years in 2001, which indicates success in the effort to re- store older ships. The average age of the international commercial fleet is 13.5 years. The shipping industry is an important and strategic weapon in European hands, especially when one bears in mind that 90% of international trade and 42% of inter-European trade is done by sea.

AUTUMN 2003 AEGEAN NEWS 15 AEGEAN SHIPPING

Captain Petros Paleokrassas Heads Aegean Shipping When he was 16, Petros Paleokrassas began his career at sea, joining his father on board a Liberty Ship, who was master of the vessel, and his brother, who was first mate—both became his mentors and first teachers.

he Paleokrassas family hails from Andros, an island The personnel that must be fully trained include office staff with a strong seafaring tradition, and for five gener- as well as the crews aboard the ships. I am confident that we Tations the family has been active in shipping. Petros will have all systems ready and will be fully upgraded in a Paleokrassas served at sea until 1977, on tankers and dry short period of time so that we can then focus on other pro- cargo ships, and was master for seven of those years. He jects and long-term plans. studied nautical science at the Cardiff College of Advanced Technology in Wales, and has worked for a variety of com- What are the current activities of Aegean Shipping? panies throughout his career. Mr. Paleokrassas was opera- At the present, we have two Afromax ships that carry crude. tions, chartering, and general manager at Augustus Polemis We also have vessels that carry clean petroleum products, Group of Companies; fleet manager at Troodos Shipping, fuel oil, and edibles. We have ships for home trade, that car- operations manager at Blue Flag Navigation, and operations, ry for dedicated customers such as PPC and Hellenic Petro- chartering, and commercial manager at Merryville Mar- leum. Finally, we have the bunkering vessels that serve our itime before joining Aegean Shipping as General Manager customers in Greece as well as in Gibraltar, Venezuela, and in June 2003. Fujairah in the Emirates.

What are your priorities at Aegean Shipping? Has Aegean purchased new vessels? What I am now doing is trying to create a more efficient, Yes, we have recently purchased two vessels, which are being more flexible, and more cohesive company. Aegean Ship- restored and converted to double-hull carriers. By the end ping, like all shipping companies, must adhere to the ISM of October, the 30,000 DWT Theopisti should be ready and Code and we need to be fully prepared. One of the most soon after we will convert the 32,000 DWT Captain Takis important tasks is to train our staff and ensure that we are which we will put into service after it is fully renovated. Af- all trained properly so that we can conform to the Code, ter that we plan to purchase modern Aframaxes so that we serve our customers better, and grow as a company. may expand our oceangoing fleet.

16 AEGEAN NEWS AUTUMN 2003 AEGEAN IN FUJAIRAH

Aegean Bunkering in the Middle East Fujairah, regarded as the Eastern Gate of the United Arab Emirates, is, along with Rotterdam and Singapore, one of the top three bunkering ports in the world.

egean began operations in Fu- Fujairah International Airport, a positive dition, the computerization of operations jairah/Khor Fakkan in 2000 and factor leading to a dramatic rise in trans- at Fujairah helps owners save considerable Ahas steadily gained market share shipment operations. time and money. An upgrade of the com- and currently delivers more than 800,000 The port is regarded as one of the most puter infrastructure will further improve tons of bunkers a year. According to Cap- modern and advanced in the world. Lo- efficiency and lead to greater productiv- tain Nikos Marinos, General Manager of cated outside the Strait of Hormuz, it be- ity. Fujairah is the fourth busiest port in Aegean's Fujairah bunkering operation, gan operation in 1983 to meet the needs the Middle East for container handling "The company is now ready, after three of the economic development of the Emi- and is rising fast on the global list for con- years of delivering bunkers in the Emi- rates. Fujairah is noted for its deep waters, tainer traffic. rates, to expand its presence in the area and re-evaluate its position to gain more "Fujairah is an important bunkering location for Aegean market share. It is an important location for Aegean and we hope to expand in a and we hope to expand in a steady and progressive way. steady and progressive way. Fujairah is the It is the main bunkering port in the Middle East and Aegean main bunkering port in the Middle East and Aegean is well-positioned to increase is well-positioned to increase its volume considerably." its volume considerably." Captain Marinos, along with Captain which are free of marine obstructions such The port can accommodate up to 100 Nikos Kachrilas, run Aegean's Fujairah as rocks and coral reefs. The waters reach vessels at any time and is well-known for bunkering, which employs a staff of 30 on a depth of 17 meters, which allows vessels its one-stop-shop services for calling ves- the vessels. Aegean's vessels have a capac- to anchor as close as half a nautical mile sels. Services, in addition to bunkering, in- ity of 11,000 DWT, which serve the world's from the port. The port is currently un- clude ship supplies, ship repair, spare parts leading shipping lines. dergoing an expansion program in which and inspection. It is regarded as a very sage Each year more than 10 million tons of the length of its wharves will increase to and secured anchorage and is constantly bunkers are delivered to the vessels that 1,400 meters and warehousing will in- patrolled and policed so that ships and call at the port, which is located near the crease to more than 500,000 m2. In ad- crews are well-protected.

AUTUMN 2003 AEGEAN NEWS 17 AEGEAN RETAIL ! Safety Issues Regarding Gas Station Operation The operation of a gas station presents many risks, due to the hazardous nature of the products involved. However, you would have to agree, that by taking the necessary precautions we are able to re- duce these risks to a minimum. And it is absolutely necessary that we do so, since human life is precious and should not be exposed to undue risk for any reason whatsoever. In order that we minimize risks at gas stations, it is imperative that we take some basic preventive measures. KEPEK ● The owner or an authorized employee should be present while the station re- fuels. The station entrance must be Stands for Quality closed, the appropriate sign put in place, and no customers should be Aegean's ambitious quality control program on fuels served during the refueling process. ● Vehicle tanks should not be filled un- has been and continues to be very successful. less the vehicle engine has been

KONSTANTINOS POURSANIDIS | RETAIL MARKET MANAGER switched off. ● Smoking should be prohibited on all outdoor station premises. he program was launched on June 17, 2003 and since then the Mobile ● The use of cellular phones must be Fuel Quality Control Lab (KEPEK) has carried out inspections at 537 prohibited anywhere on the station network gas stations, with results that surpassed our best expectations. T premises. KEPEK operates throughout the country and conducts surprise inspections at ● Fire extinguishers should always be gas stations belonging to our network. Inspections are carried out throughout the ready for use and staff must be famil- year (365 days) during station operating hours. iar with their operation. Recognizing the added value ● In the event that work is carried out at this provides customers, gas the gas station involving the use of a station owners are more flame, then the work crew must have than happy to com- taken all precautions to prevent an ac- ply with these cident from occurring. inspections, oftentimes re- I hope these measures constitute a prior- questing them ity for everyone and I wish you continued themselves. and accident-free success.

18 AEGEAN NEWS AUTUMN 2003 AEGEAN MARINE Aegean Marine Petroleum (AMP) A Service & Growth Leader GREGORY ROBOLAKIS | DIRECTOR OF AEGEAN MARINE PETROLEUM 2003 uring the first nine months of fuels. During 2002, Aegean covered electronic “blender” and bunker moni- 2003, the demand for Aegean about 12-13% of the market, and tor on the M/T Aegean Daisy and the Doperating as “physical suppli- sales increased considerably during the M/T Aegean Rose barges in Gibraltar, er” to ships has increased by 22% com- first nine months of 2003. making it possible to supply clients with pared with the same period last year. Aegean places great emphasis on a fuel mixture that is accurate in its Specifically, the demand in Piraeus in- the protection of the marine environ- proportions of crude oil and diesel. creased by 19%, in Gibraltar by 33%, ment and the safety of staff during re- Fluctuations in viscosity are monitored and in Fujairah/Khor Fakkan by 12%. fuelling, and has followed the latest constantly on-screen, and can be We see the largest increase in de- EU directives. The company has re- recorded on a print-out at the end of mand in the harbor of Gibraltar, placed two of its single-hulled barges each refuelling. where AMP has secured a firm place in Gibraltar with two new, double In all the ports that Aegean services in the market during the last five to six skin-double bottom (DD) barges with with its barges, it strives to lead the field years, supplying customer ships with a larger capacity. in issues concerning safety and the pro- its own barges. Aegean Bunkering Furthermore, in response to client tection of the environment, in the relia- (GIB) Ltd. uses three tankers with a feedback regarding the quality of the bility of its services, and in the quality total tonnage of 13,000 M.T. to load fuel supplied, Aegean has installed an of its products at a competitive price.

Fuel Compatibility – Regular Consistencies A fuel is considered to have a regular consistency when it does not separate into layers, i.e., its constituents are com- patible. The tar elements that remain diluted in the fuel do not have a tendency to separate to create a muddy sub- stance. In the period of time that fuel is stored in the fuel tanks on board, there is a possibility that it will separate in- to its constituent layers (stratification). When fuel is being piped into the tanks, the engineer of the ship should avoid mixing fuels of different origin. If this proves difficult, then he should keep the proportion of foreign fuel to a minimum. Problems can occur while mixing fuels of different origin or fuel with diesel. Mixing primary fuels with products resulting from fission (many tar products) should be avoided, especially when the fuel has a high point of flow. Usually, fission products can be mixed.

AUTUMN 2003 AEGEAN NEWS 19 AEGEAN AWARD Aegean Oil Honored in Washington DC

egean Oil was one of only four companies honored in Wash- Aington DC at the Second An- nual Business Conference on U.S.- Greece Relations, held October 6-8, 2003. The conference was organized to highlight the importance of Greek- U.S. relations in terms of business and commerce. Top officials from several American and Greek companies, as well as representatives of both the Greek and United States governments participat- ed in the conference. Participants lis- tened to a variety of presentations and speeches, including an overview of Olympic Games preparations given by Ioannis Spanoudakis of ATHOC, U.S. Senator and Presidential Candidate Joseph Lieberman, United States Sen- ator Paul Sarbanes and former U.S. Defense Secretary William Cohen. Representing the Greek government was Defense Minister Yannos Papan- toniou and the General Secretary for Defense Investments Spyridon Travlos. Defense Minister Papantoniou discussed Greece's armament policy, which was of interest to the many representatives of the major American defense contrac-

tors who were present at the confer- Top: Gregory Pappas, Andreas Karaindros, Dimitris Melissanidis, and Tom Geanopoulos in the United States Capitol Building ence, including Boeing, Lockheed Bottom: Tom Geanopoulos, former U.S. Defense Secretary William Cohen, and Dimitris Melissanidis Martin and Raytheon. Thomas Miller, who traveled to Wash- providers of advanced weapons systems Several high-ranking United States ington for this important conference, were honored, as was the American government officials attended the con- honored four companies for the role construction giant Technical Olympic. ference from the Department of State, they played in Greek-U.S. commercial Aegean Oil, represented by its Pres- the Defense Department and many relations at a private breakfast hosted ident and Managing Director Dimitris members of the House of Representa- in the United States Capitol Building. Melissanidis was the only Greek com- tives and the United States Senate. Raytheon and Lockheed Martin, two pany presented with the honor at the United States Ambassador to Greece of the world's largest corporations and conference by Ambassador Miller.

20 AEGEAN NEWS AUTUMN 2003 STATION OF THE MONTH Securing an Aegean Presence in Lakonia

he two businessmen began their turing unit, a mini-market, and a car For the K. Gerondidis- partnership in 1975, manufac- boutique offering all types of car ac- G. Tsourounis company, which Tturing knitwear in Sparta un- cessories. The company, which also der a small company called "Plektiria supplies diesel to residences for heat- owns one of the largest € Spartis AEBE." Years passed, condi- ing, will invest around 440,000 in service stations in the tions changed, and the partners quick- the two new service stations. ly realized the potential for growth in The plans do not end here. Their prefecture of Lakonia, joining the fuel market, especially in a small next step lies beyond Sparta in Gythio. the Aegean Oil team has city like Sparta. The company has a 50% stake in a Seeking new investment opportuni- service station currently under con- proved lucrative. After joining ties when the first signs of a crisis in the struction, and has plans to expand into in February 2003, turnover clothing industry became apparent, other towns in the area. has increased by 80%. they secured a place in the promising As Mr. Gerondidis says, Aegean’s fuel market by opening their first ser- target is to increase the number of fuel vice station in 1998 in a prime loca- stations in Lakonia from three (Sparta, tion: one kilometer out of Sparta on the Xirokambis, Aeropoli) to eight or nine Sparta-Athens route via Tripoli. by the summer of 2004. Two new ser- Until the beginning of 2003, Geron- vice stations are already being planned didis-Tsourounis acquired their fuel for Skala and Molaous. Mr. Gerondidis from another supplier, and financial re- has personally undertaken to bring sults were not quite satisfactory. Things service station owners who wish to changed after they chose Aegean, since change companies into contact with lower prices, and a new, more efficient Aegean to join the team. service station drew many more cus- Gerondidis-Tsourounis does not re- tomers, and turnover shot up. strict itself to purely business ventures. One of the partners, Kyriacos Geron- It also sponsors athletic associations didis, is clear about his business objec- (basketball and soccer teams), and tives, and says: "whoever secures a place cultural events in the area. in the local market now will win the Furthermore, its entry into the fuel competition battle today and in the fu- market did not mean abandoning their ture. This is because the wider area of initial enterprise. Today, "Plektiria Sparta does not have more than 12 Spartis" manufactures knitwear sup- “Things changed after they service stations." plying not only Greece, but also Ger- The company’s next target is to have many, France, and the U.K. Annual chose Aegean, since lower € fuel stations in the center, entrance turnover amounts to 1.45 million. prices, and a new, more and exit points of Sparta, covering Mr. Gerondidis claims that "having most of the town. The service station a spread of investments generating efficient service station drew in the center of Sparta will be a model turnover in many different markets many more customers, and unit. Covering 1000 m2 of land, it will reduces financial risks and increases include a car wash, a leather manufac- the likelihood of making profits." turnover shot up.”

AUTUMN 2003 AEGEAN NEWS 21 AEGEAN ROUTES

Aegean Investing in Bulgaria

egean is participating in the construction of two state-of- Athe-art office and shopping centers in Sofia, the Bulgarian capital. The new complexes represent a forward-looking approach to the economic development of Southeast Eu- rope. The shopping and office structures, one totalling 5,000 m2 and the other 10,000m2, are being built in the downtown section of Sofia, where demand for contemporary, high-quality retail and office space is growing. Greek investment in Bulgaria is very high. At a speech in Sofia recently, Greek Economy and Finance Minister Nikos Christodoulakis said mutual investments, joint business initiatives, and infrastructure projects are the main directions for bilateral joint efforts.

22 AEGEAN NEWS AUTUMN 2003 AEGEAN ROUTES The Internal Auditor KONSTADINOS DIMAKOS | INTERNAL AUDITOR

he position of the internal auditor of a company, a position with its own history in the business world, Twas founded by large enterprises abroad and is now also well-established in their subsidiaries and affili- ated companies throughout the world, including Greece. In recent years, major companies in Greece, especially those listed on the stock exchange, have also started to create departments of internal auditing. The function of the internal auditor is very important because the auditor helps organize not only financial functions, but also enhances cooperation between the financial department and other departments in the organi- Aegean Car Wash zation. To do so, the internal auditor establishes procedures and periodically inspects whether those procedures are followed. This also has an impact on the external ap- A New Initiative pearance of the company since cooperation with cus- egean is preparing to launch a new initiative in tomers, suppliers, and the company is improved. the Greek market that will radically change the Moreover, an important aspect of the internal auditor’s Aconcept of "washing the car." Aegean's new Car job is to ensure maximum profit for the stockholders of the Wash System, set to begin operation in Thessaloniki by the company by minimizing costs and lost revenue. end of the year, will be a mini "Car City" where motorists In large companies, these functions become more vital can give their automobile a thorough and safe wash while and beneficial, and in companies such as Aegean, which is at the same time purchase a variety of auto accessories. growing at a rapid rate, they substantially contribute to ef- The new system, imported from the United States, will ficiency and performance. wash cars with a gentle yet thorough wash cycle that will not harm any of the car's paint, metal, or glass, and will “The function of the internal auditor is even protect a user's car from damage. The new car wash very important because the auditor helps center will become a hub where all owners can give their cars total care, through exterior and interior cleaning, organize not only financial functions, waxing, and by applying protective and restorative coat- but also enhances cooperation between ings. In addition, motorists will be able to repair and re- place damaged or worn accessories so that the one-stop- the financial department and other car-care shop is a total solution for personal automobile departments in the organization.” maintenance. Aegean's first Car Wash System is expected to open in December next to the Aegean station of Vassilis Dimitri- adis near the Thessaloniki Airport. During 2004, the Konstantinos Dimakos Aegean Car Wash System will expand throughout Greece, Internal Auditor along with the Aegean retail outlet network. Mr. Dimakos graduated from the Athens University of Economic and Business with a specialization in financial analysis (balance sheet analysis and tax issues). He has extensive experience, since 1979, as credit controller and account manager in large manufacturing, commercial, and shipping companies and as auditor of the State Corps of Auditors.

AUTUMN 2003 AEGEAN NEWS 23 FORUM

DNV: Strong Bonds with Greek Shipping For Det Norske Veritas, one of the largest ship classification societies in the world, Greek shipping has proven very important. In the last few years, DNV has entrenched itself in the Greek shipping market, which now constitutes 17% of the total tonnage of its international clients.

ship classification society as says the regional director of the society 1998 to 16.64 million tons today. large as DNV could not ig- in Southeast Europe, John Kourmatzis. Having secured a position in the Anore a new building activity Many foreign ship classification so- Greek market which, by nature of its with the astronomical figure of $22 cieties that have offices in Greece have size, shows promise, DNV is after a billion spent for new ships in the last also stood up to take note of Greek larger share, along with its old-time five years by Greek shipowners. shipping. "Whoever establishes himself competitors, Lloyds Register (LR) in Company executives were quick to now in the Greek market will win the the UK and American Bureau of spot rapid growth in the Greek ship- competition battle today and in the fu- Shipping (ABS) in the U.S. ping industry in the last few years that ture," believes Mr. Kourmatzis. The Norwegian ship classification was spurred by a huge shipbuilding The figures speak for themselves. society already inspects 12.6% of the investment program, despite signs of The number of Greek-owned ships 3,300-strong Greek-owned fleet, com- saturation evident in other markets. that DNV inspects today has in- pared with 9.39% in 1998. It increased "To understand how important the creased by 41% in the last six years, its share in tonnage proportionally, from Greek market is to us, consider the fact reaching 428 compared with 301 in 11.95% in 1998 to 16% this year. that, two years ago, we relocated our ad- 1998. With regard to the tonnage of Although the growth the society has ministrative headquarters for 23 coun- the ships it inspects, the increase was seen in the Greek market is large, ex- tries in Southeast Europe to Piraeus," around 77%, from 9.39 million tons in ecutives stress that their objective is

24 AEGEAN NEWS AUTUMN 2003 not so much the size, but the quality of The Shipyards Greek Owners Prefer the ships it undertakes to inspect. DNV has interesting statistics on "It is not coincidence that, on a Greek shipbuilding activity. According world scale, DNV has the lowest num- to its data, Korean shipyards, which are ber of ships held at ports by authorities considered to have greatest specializa- for safety irregularities. This has as tion, claim the largest piece of the pie much to do with the company’s objec- (60.5%). Japan follows with 23% and tive to have a quality portfolio, as the China and other shipyards with 16.5%. care taken by its clients (shipowners) on safety issues and ship mainte- The Chinese Market nance," says Mr. Kourmatzis. Although Chinese shipyards fall short of Korean and Japanese standards, they John Kourmatzis New Orders are becoming ever more popular The society’s steady upward trend is According to statistics from ship- among Greek shipowners because of clear. Inspections of Greek-owned ships ping brokers, increases in orders apply low construction costs. "This is why it is under construction have increased, as much to tankers (117 until June) as anticipated that many Greek shipown- equaling those of its two competitors in to container carriers (10), and dry and ers that order elsewhere today will turn the Greek market, LR and ABS. bulk cargo carriers (37). toward China in the next few years," say According to DNV figures, in 2002 In Mr. Kourmatzis’ opinion, a good DNV executives. The types of ships on the society inspected 28 of the 95 Greek freight market in these ship categories, order are: 107 tankers; 48 cargo ships; ships under construction, with a tonnage and a good run of the dollar, strength- 6 container carriers; 19 various types. of 1.76 million tons of a total 5.46 re- ened the flow of incoming orders for spectively. In the same year, ABS in- ships by Greek shipowners. The trend Positive Prospects spected 31 ships (1.84 million tons), and was even followed by shipowners who for Greek Shipping LR 30 ships (1.57 million tons). normally purchase second-hand ves- Executives of DNV are focusing their DNV therefore achieved a 12% in- sels from the international market. attention on Greek shipping as they crease in the number of ships it in- realize that Greek companies are see- spected, from 18% in 1998 to 30% in The Trust of 177 Companies ing unprecedented growth. 2002, and an increase in tonnage from In total, DNV has 160 Greek clients "In the last few years, the average 28% to 32.5%. and 17 Cypriot clients that own 561 growth rate of Greek shipping compa- ships with a capacity of 19.3 million nies was around 5% compared with 2003 Growth DWT. The society has undertaken to 2% in international shipping, a trend Growth continued at the same rate this inspect 54 Greek- and Cypriot-owned that is continuing with the same mo- year, which is expected to be a record ships under construction with a ton- mentum this year" stresses Mr. Kour- year in new orders of ships by Greek nage of 2.77 million tons, and has is- matzis. This is due to the large number owners. During the first seven months sued ISM certificates to 78 shipping of Greek-owned ships. of 2003, Greek shipowners have or- companies. It carries out 600 inspec- Until now, DNV's Piraeus office has dered more ships than those ordered tions annually, as well as 25 special certified 365 ships for safe management, during the whole of 2002. inspections for ship building upgrades. (owned by 70 shipping companies), is- sued ISO 9000 certificates to 15 ship- DNV in Greece (Department for Southeast Europe) ping companies, and ISO 14001 certificates to four companies. It has also Oversees 23 countries, with 28 local stations and 176 employees certified five training centers and two Clients 160 Greek and 17 Cypriot companies crew employment agencies. Furthermore, Greece and Cypriot fleet under DNV inspection 561, capacity 19.3 million tons DNV arranges 30 training seminars Ships under construction annually for shipping company execu- that it has undertaken to inspect 54, capacity 2.77 million tons tives, and, together with the University Annual ship inspections 600 of Piraeus, has established a training Companies is has certified with ISM 78 program for postgraduate studies.

AUTUMN 2003 AEGEAN NEWS 25 GANGWAYS INTERTANKO on the Energy Environment INTERTANKO, an organization of independent tanker owners, was established in 1970. INTERTANKO has 242 members whose combined fleet comprises more than 2,160 tankers totaling 160 million DWT, which is 70% of the world's independent tanker fleet above 10,000 DWT.

Global Energy Demand Tanker Supply: 2001-2002 Oil is by far the world's most strategi- ● The tanker fleet increased from 304.1 cally important commodity and some to 305.8 million DWT, or by 0.6% 60% is transported across the oceans ● 20.9 million DWT of tankers were of the world by tankers. Tankers also ordered during 2002 transport a large variety of chemicals, Anasuria: The world's largest tanker ● The total newbuilding order book, at gases, vegetable oils, and animal fats demonstrates a large reduction in pollu- the end of 2002, stood at 61 million that serve as essential raw materials for tion from tankers to a very low level. But DWT many of the products we use in our the industry is not complacent. This ● No lay-up, minimal storage end 2002 daily life. The vital importance of strong-performing, dynamic, and high- ● 50% of the tanker fleet was double- tankers is, however, rarely recognized. ly international tanker industry provides hulled at the end of 2002 They are very cost-effective, energy- a backdrop for INTERTANKO's ef- efficient, flexible, and safe, and routinely forts for recognition and sound, stable ● Independent tanker owners control deliver an efficient transportation ser- regulatory conditions for its members. 81% of the world tanker fleet vice. Without the more than 9,000 Tanker owners perform an essential tankers in the world's fleet, we would not service in an efficient, economic, and Tanker Demand: 2001-2002 enjoy the quality of life we have today. environmentally friendly manner. ● Total seaborne oil trade declined from Hundreds of millions of jobs depend di- ● The world consumes some 78 mil- 2,017 to 1,987 million tons, or by rectly or indirectly on this oil upon lion barrels per day (mbd), of which 1.15%. In ton-miles, the seaborne oil which our very standard of living relies. 60% is transported by sea trade declined from 10,179 to 9,950 One VLCC (very large crude carri- ● Japan imports 5 million barrels of billion, or by 2.3% er) can carry enough oil for half a crude oil and petroleum products ● World oil demand increased from 76.5 million cars to cross the Untied States every day or some 95% of its total to 76.9 billion b/d, or by 0.5%; the and return, or travel to London to the demand projection for 2003 is 77.9 mbd Middle East and back. All at a cost ● The United States imports approxi- ● OPEC oil production declined 27.0 that in good times rarely exceeds $2.00 mately 11.3 mbd or 59% of oil demand to 25.1 mbd or by 7% ● per barrel, and is generally closer to Europe imports some 17.4 mbd of ● Middle East OPEC oil production $1.00 per barrel. crude oil products or some 63% of declined from 18.9 to 17.6 mbd, Despite the harsh conditions operat- total oil consumption or by 6.9% ing in the environment and the unpre- ● There is a large domestic tanker traf- ● Non-OPEC oil production increased dictable perils at sea, the safety and en- fic both within the U.S. and Europe, from 46.7 to 48.1 mbd or by 3%; the vironmental performance records of in the form of intra-regional product projection for 2003 is 49.2 mbd tankers can measure up to any other trades, offshore shuttle tankers, and comparable industry. All the evidence offshore lightering For more information: www.intertanko.com

26 AEGEAN NEWS AUTUMN 2003 EXPLORATION The Story of Oil Oil was formed from the remains of animals and plants After crude oil is removed from the ground, it is sent to a refinery by that lived millions of years ago in a marine environment. pipeline, ship or barge. At a refinery, different parts of the crude oil are ver the years, the remains were entists and engineers explore a chosen separated into useable petroleum covered by layers of mud. Heat area by studying rock samples from the products. Crude oil is measured in Oand pressure from these layers earth. Measurements are taken and if barrels. A 42-U.S. gallon barrel of helped the remains turn into what we to- the site seems promising, drilling be- crude oil provides slightly more than day call crude oil. The word "petroleum" gins. Above the hole, a structure called 44 gallons of petroleum products. This means "rock oil" or "oil from the earth." a "derrick" is built to house the tools gain from processing the crude oil is Crude oil is a smelly, yellow-to- and pipes going into the well. When similar to what happens to popcorn, it black liquid and is usually found in un- finished, the drilled well will bring a gets bigger after it is popped. derground areas called reservoirs. Sci- steady flow of oil to the surface. One barrel of crude oil, when re- fined, produces 19.4 gallons of finished motor gasoline, as well as other petroleum products. Most of the petroleum products are used to produce energy. For instance, many people across the United States use propane to heat their homes and fuel their cars. Other products made from petroleum include: ink, crayons, bubble gum, dishwashing liquids, deodorant, eyeglasses, records, tires, ammonia, and heart valves. When petroleum products such as gasoline (used in automobiles), diesel fuel (used in trucks), and heating oil (used to heat our homes) are burned as fuel, they give off carbon dioxide. Drilling for oil also has an impact on the environment—companies must use advanced technology and comply with government rules and regulations for safe drilling and petroleum production. The world's top five crude oil-producing countries are: ● Saudi Arabia ● Russia ● United States ● Iran ● China

Source: U.S. Energy Information Administration

AUTUMN 2003 AEGEAN NEWS 27 MARITIME TRADπTION

The Ancient Ships of Santorini

Some of the oldest ships of Greece were built in ancient scenes depict events and activities of earlier periods, so that historians know Thera, known today as Santorini. These ships, dating from that the seafaring tradition in ancient the 17th Century BC, were remarkably sophisticated Greece precedes this date. in design and construction. Researchers estimated the Ship of Thera to have a length of more than 30 meters and most probably the vessel he volcano of Santorini, which cession and experts were able to recre- employed about 20 oarsmen on each erupted around 1500 BC, buried ate the Ship of Thera from the wall side. The oars did not rest in tholes, or Tthe prehistoric settlement of painting. The Ship of Thera is dated to pins, and a square sail hung from a Akrotira on the southern tip of the is- the 17th Century BC, and is evidence of mast in the center of the ship. Two land. For centuries, the volcanic ash an advanced level of boat-building large steering oars were operated by protected the settlement and archaeol- skills and a sophisticated navigation helmsmen standing on the deck and ogists and historians were able to system. The finding at Akrotira pro- the center of the vessel was covered, gather information about the settle- vides historians with the most com- most likely sheltering passengers. ment in great detail. The building known plete documentation about boatbuild- Reflecting a Minoan influence, the as the West House contained a minia- ing in Ancient Greece. Even though Ship of Thera had a semicircular cres- ture fresco depicting a flotilla in pro- the fresco dates from the 17th BC, its cent shape and a triangular projection extending outward from the stern, “The Ship of Thera is dated to the 17th Century BC, and is whose function has not been deter- evidence of an advanced level of boat-building skills and a mined by archaeologists or historians. Some believe it served as a boarding sophisticated navigation system.” plank and was movable. A small, lux- urious cabin was located at the stern of the ship and the fresco depicts a digni- tary, possibly the captain, seated here. The practice of maintaining a place of honor at the stern of a ship originated in Egypt and continues today. The rich ornamentation depicted on the ship, which also reflects an Egypt- ian influence, indicates that the Ship of Thera was carrying a high-ranking official. Today, archaeologists and scholars still debate many details about the Ship of Thera and the frescos of Santorini, which provide maritime buffs a rich source of information about ancient maritime traditions.

28 AEGEAN NEWS AUTUMN 2003 2004 OLYMPIC GAMES The Ancient Games The Olympic Games, the most spectacular sporting event in the world today, are said to have begun in Ancient Greece in 776 BC as a tribute to the gods of Olympia.

he Games were an important Running Athletes competed naked in the stadion or stade race, a 200-meter event that was the ceremony that measured ex- ultimate test of speed. Other running events included the diavlos, a 400-meter race, and the dolichos, Tcellence, celebrated creativity, a race of between seven and 24 stades. and encouraged competition. In addition to athletic events, the ancient Jumping Athletes used stone weights called halters to increase the distance of their jump. The jumper would jettison the weight backward at the end of his flight, trying to gain distance. games featured cultural performances and arts competitions, the foundation Discus Originally made of stone, the discus was later made of bronze. The discus throw is one of for today's cultural Olympiad. In fact, the most unchanged events in history and the ancient sport was very similar to today's discus throw. the world "Olympiad" is a time unit, The javelin throw was divided into two events: one for distance and one for accuracy. referring to the four-year interval be- Javelin tween games, which underscores the Wrestling Wrestling was one of the most popular ancient sports. The notable aspect of ancient importance of the Games to the an- wrestling contests is that the competition ended only when one contestant admitted defeat. cient Greeks. Contestants gathered in Olympia, Boxing Boxing was added as a sport in 688 BC. Contestants wore leather straps, forerunners of today's' boxing gloves, on their hands. The straps evolved from dangerous pins to today’s gloves. home of the magnificent temples of Zeus and Hera, to compete for the Pankration A combination of wrestling and boxing, the Pankration was one of the most harsh most important reward: a heroic return events of the ancient Olympics. to their city-states wearing the prized olive wreath. Although victory then, Equestrian Events Horse races and chariot races were held in the hippodrome, an oval space that was wide and level. Today, equestrian events are still highly popular Olympic events. like today, was an important element of the Games, all contestants celebrat- It was not until 1896 that the Olympic ed noble competition and the effort to Games and the Olympic ideal were re- combine body, will, and thought. vived, when Athens hosted the first Standard events, rules, and sched- modern Games, following the efforts of ules evolved over the course of time so Pierre de Coubertin and Dimitirs Vike- that benchmarks were established. las. Today, just more than 100 years And the Olympic Truce became a time since the Games' re-birth, Athens is when all warring factions ceased hos- preparing to host the XXVIII Games, tilities, no matter how intense or bitter. from August 13-29, 2004. More than Greece is trying to establish an Olympic 15,000 athletes from 201 countries Truce that will be honored by all will compete for gold, silver, and bronze countries during the 2004 Games. medals in 28 sports. It is expected that Contestants in the ancient games par- 4 billion people will view the XXVIII ticipated in a variety of sports, most of Games, an historic celebration of what which are still practiced today. In 393 2004 organizers call "the Olympic AD, the emperor Theodosius banned Games on a human level." the Olympic Games as being too "pa- For more information about the 2004 gan." The Games in Ancient Greece Olympic Games to be held in Athens included the following athletic events: visit www.athens2004.com

AUTUMN 2003 AEGEAN NEWS 29 TRAVEL

Kalavryta The Birthplace of Modern Greece On March 25, 1821, Bishop Germanos of Patras raised the flag of revolt against the Turks at Moni Agias Lavras, six kilometers from Kalavryta, a territory so difficult to access that it was cheaper to bring a pound of grain from Russia to Italy than from Patras to Kalavryta.

ixty years later, the prime minis- maximum speed of 40km/h on level (including children and teenagers) as a ter, Harilaos Trikoupis, commis- sections and 12km/h on inclined sec- reprisal against resistance activity in the Ssioned a 22.5-kilometer railway tions. Today, specially designed diesel- Kalavryta region. The Execution Monu- line from the coastal town of Diakofto electric railcars operate the service on ment is one kilometer outside town. rising 756 meters through the dramatic the original traction stock. Kalavryta means “good springs,” so Vouraikos Gorge to Kalavryta, so that The railway traverses one of the most the area has some water-related attrac- all countrymen could visit the birthplace scenic routes in Europe, and hundreds tions. There is a trout farm in Planiterou of the modern Greek nation. It was the of tourists and train lovers endure the at the foot of mount Helmos, where first 750 mm gauge rack-and-pinion noise to chug up (and clutch down) the lunch is fished and fried before you. railway system designed to climb a narrowest public rack railway in the The impressive Cave of Lakes is 16 gorge so steep. The track searches or world still in regular service. The area is kilometers away near Kastria. Here, paths wind through two kilometer-long “The railway traverses one of the most scenic routes in underground caverns of ponds and lakes Europe, and hundreds of tourists and train lovers endure under haunting stalactites. In spring, after the snow melts, water levels rise the noise to chug up (and clutch down) the narrowest and form a river running from cavern to public rack railway in the world still in regular service.” cavern. According to myth, the daugh- ters of King Proteus of Tiryns took footholds on rocky outcrops, clings to also a National Heritage Site and a safe- refuge here after they were driven mad cliffs, and crosses the gorge with spec- haven for rare birds of prey such as the by the goddess Hera and roamed the tacular views over rivers, waterfalls, and Honey Buzzard, the Griffon Vulture, countryside thinking they were cows. lush woods of cypress and fir. and the Short-toed Eagle. The seer Melampus then cured them. The engineering feat included six Kalavryta today is a popular winter There are two monasteries in the tunnels totalling 200 meters, retaining mountain destination attracting main- area, Agia Lavra and Mega Spileon, a walls more than 4,000 meters long, and ly ski-loving Athenians. The ski center 5th century monastery built on a rock 40 steel and 15 masonry bridges and is at an altitude of 1,600-2,200 meters, and housing the miraculous icon of the viaducts with spans varying between and offers ski lessons to take you Virgin Mary painted by the Apostle three meters and 60.9 meters. The first swishing down the slopes. Luke. Agia Lavra houses relics and the steam locomotive designed by Roman The town has a rustic stone railway famous banner of the revolution. Abt is now on display in Diakofto and station and a church clock stopped at the was recently restored to working order. time of the Kalavryta massacre, when in For ªore Information It had first entered Kalavryta terminus December 1943, Nazi troops occupying www.greektourism.com on March 10, 1896 travelling at a Greece executed more than 1,300 males

30 AEGEAN NEWS AUTUMN 2003 THE AEGEAN IMAGE

A look that says “We ‘re different” Aegean is proud of the contemporary image of its petrol stations. Station personnel enhance the "Aegean Look" through clothing and products that reflect a commitment to quality and customer service.

AUTUMN 2003 AEGEAN NEWS 31 Aegean

AEGEAN is a diverse group of companies active in the energy and shipping industries and is committed to providing its clients with the best products, services, and solutions to meet their needs. The AEGEAN group markets fuels and lubricants in the bunkering and retail sec- tors, is a leader in top-quality bunkering services, provides marine transport through its fleet of 26 tankers, and offers 24/7 shipping services to trusted clients throughout the world.

SERVICE AND PRICE Founded in 1990, AEGEAN is committed to providing its customers with unmatched services at the most competitive prices. It has grown in just over a decade into a dynamic force in the industry and from its headquarters in Piraeus, Greece AEGEAN directs its domestic and international operations. The company is privately held and 100% Greek owned.

A DYNAMIC GROWTH STRATEGY Through a strategy of responding to market needs, AEGEAN has successfully grown to be an industry leader that is committed to excellence in customer satisfaction, environmental awareness, and over- all quality. The company is ISO 9002 accredit- ed, its ships meet ISM standards, and AEGEAN's bunkering operations are on the top of the FOBAS White List. AEGEAN employs more than 1,000 professionals who are the foundation of the company's success. In 2002, turnover reached $1.5 billion. In addition to its headquarters in Piraeus, the company has offices in Thessaloniki, Greece and an international presence in the United Arab Emirates, Venezuela, Russia, Bulgaria, Gibraltar, and the United States.

FULLY-EQIUPPED FACILITIES AEGEAN has two fully equipped depots to handle its fuel needs. The depot in Alexandroupolis serves clients and customers in northern Greece and southeast Europe. The company's depot in Aspropyrgos serves southern Greece and the important port of Piraeus.

www.aegeanoil.gr

32 AEGEAN NEWS AUTUMN 2003