Lauritzen news Issue No. 15 september 2011 oceans of know-how
BULKING UP IN SINGAPORE
HALF-YEAR AT HOME AT BLOGGING BUILDING ON RESULTS SANKT ANNae FROM THE EXPERIENCE PLADS HENRIETTA KOSAN 2 Lauritzen news · Issue #15 · september 2011
Table of Contents
Editorial ·················································· 3
Half-year results 2011 ···························· 4
Bulking up in Singapore ························· 6
At home at Sankt Annae Plads ··············· 8
Seeking synergies in ship management ······························· 10 Bulking up Seeking synergies Blogging from the Henrietta Kosan ········ 12 in Singapore 6 in ship
Staff news ·············································· 13 JL’s Singapore office is an increasingly im- management 10 portant hub, not least for Lauritzen Bulkers’ Lauritzen Bulkers employs three outside Another big scoop in Brazil activities in the Pacific Rim. partners to help optimise ship management for Lauritzen Offshore ···························· · 14 and stay competitive.
Strengthened commitment to CSR ········ 16
Keeping an eye on quality ······················· 18
Countering piracy off Somalia: an expert opinion ···································· 20
Building on experience ···························· 23 Jørgen Lauritzen “capsized” ··················· 24 Another big scoop Keeping an eye in Brazil 14 on quality 18
Lauritzen Offshore’s Dan Swift begins a five- The head of Lauritzen Tankers’ site office at year contract with Petrobras for work on oil Guangzhou Shipyard in China discusses how platforms in the Campos Basin. his team operates.
piracy off Somalia 20
Dan B. Termansen, Commander s.g. Royal Danish Navy and former Captain on HDMS Absalon, offers an expert opinion. Lauritzen news · Issue #15 · september 2011 3
dear reader
The business The historic downgrade of the US govern- coordination and find the much-needed solu- ment debt by Standard & Poor’s early August tions to this menace. environment and 2011 sent waves through markets across the global economic globe. Brent Crude dropped USD 10 and Responsibility is an integral part of JL’s DNA, uncertainty continue suffered the biggest two-day decline since and JL has always been engaged in social to make business 2009, illustrating how fast commodity mar- and environmental activities. Earlier this kets can swing in a crisis. Stock, currency, year, a cross-divisional CSR Committee was operations complex and bond markets are also in the midst of established, and in the beginning of August and challenging increased volatility with a general negative 2011 JL signed the UN Global Compact com- for shipping impact on global economic trends. mitment letter (see article on pages 16-17). This corporations. commitment marks an important step for JL The current crisis also has defied the mean- in relation to working even more systemati- ing of the old maritime oath “my word is my cally with our CSR activities to the benefit of bond”. This has left JL with a number of non- our stakeholders. performance cases by counterparties, but we will pull through the turmoil in the usual Before plunging into the articles in this issue JL way, by being “world-class” in everything of Lauritzen News, please take a moment to we do. appreciate its new graphic design and layout. After seven successful years of covering vir- Under these demanding conditions, I can tually every facet of JL’s business develop- convey that JL’s financial results for the first ment – and subjects ranging from onboard half year of 2011 were slightly better than IT to combating piracy – we felt that it was expected, but negatively impacted not only time for a new look. With an updated version by weakening of markets, but unfortunately of a classic typeface and a clean, open page also by counterparty defaults (see article on layout, this new design reflects the combina- pages 4-5). tion of stability and boldness that makes JL a world-class shipping company. And it pro- Piracy remains a formidable threat and chal- vides an ideal platform for the future report- lenge for shipping. During the first part of ing on important developments ranging from 2011, pirate attacks further increased, but our growing presence in South East Asia to the actual number of hijackings was reduced. our promising entry into serving the offshore The reason for the success in suppressing oil industry. piracy is fairly obvious, and primarily due to navy-escorted convoys and an increas- Sincerely, ing number of armed guards on board ships Torben Janholt transiting the Gulf of Aden. Meanwhile, President & CEO vessels are increasingly being attacked out- side the protected areas, e.g., in the Red Sea. As discussed in one of the articles in this edition of Lauritzen News (see article on pages 20-22), the piracy problem and the solution to it are extremely complex and I would like to urge governments, the EU, and the UN to further strengthen their operational 4 Lauritzen news · Issue #15 · september 2011 Challenging start to the year
During the first six months of 2011, re- Invested capital amounted to USD Offshore’s four vessels are now all on long- turn on invested capital (ROIC) was 3.1% 2,342, up from USD 2,033m at period- term contracts with the Brazilian oil major. compared to 13.2% in the same period end 2010 due to planned fleet expansion • JL took delivery of eight bulk carriers in 2010. Excluding installments on ves- and renewal. (four Capesize, three Handymax and one sels under construction return on invested Handysize), two fully pressurized gas carri- capital amounted to 4.1% compared to Main events ers, and two MR3 product tankers. 17.5% in the first half of 2010. During the first half of 2011, the following • Three gas carriers were sold. Further- main events occurred: more, a purchase option for a bulk carrier Cash and securities amounted to USD was declared and the vessel was subse- 156m at the end of June 2011 (USD • JL successfully completed its offshore quently sold. 224m at year-end 2010). Including un- strategy by securing a long-term contract • A Korean charterer went into receivership used facilities cash amounted to USD for accommodation and support vessel Dan and subsequently redelivered four long- 209m. Swift with Petrobras, and thus Lauritzen term time-chartered handymax bulk car- riers to Lauritzen Bulkers. The charterer also announced the intention not to fulfill contractual obligations to take delivery of First half year full year a long-term time-chartered Capesize bulk Key figures USDm 2011 2010 2010 carrier newbuilding in September 2011. Revenue 285.2 383.8 739.5 • Charter parties for two long-term time- EBITDA 65.4 153.6 252.2 chartered Capesize bulk carriers to a Chi- Depreciation (42.4) (33.1) (53.2) nese charterer were renegotiated and the Sales of assets 6.6 (0.8) (12.5) new contractual obligations are fulfilled. Operating income 29.6 119.6 186.5 Joint ventures 4.9 7.1 11.0 Finance net (31.6) (20.7) (56.3) Lauritzen Bulkers Result brfore tax 2.9 106.0 141.2 The dry bulk market was seriously impacted JL’s share of the result 3.6 99.6 130.7 by weather-inflicted export constraints at the beginning of the year, high commodity Invested capital (average) 2,195.5 1,923.4 1,931.3 prices, and intense newbuilding deliveries ROIC 3.1% 13.2% 10.2% throughout the period. ROIC (excl prepayments) 4.1% 17.5% 14.3% Investments, net 276.1 180.5 319.7 Invested capital (period end) 2,342.2 2,033.1 2,048.9 Total number of ship days increased to - hereof prepayments 349.7 506.4 663.1 16,890, compared to 15,148 in the first half Fleet (full year average) 152 149 148 of 2010. - hereof pool/partner share 32 35 39 Average no. of employees 1,169 1,159 1,149 EBITDA was USD 26.4m, compared to USD 106.2m in 2010, and operating income was USD 17.1m, compared to USD 96.9m in 2010. The decline was primarily due to ebITA OPERATING INCOME the weakening of the market, counterparty 1st half full year 1st half full year defaults, and non-recurring income included USDm 2011 2010 2010 2011 2010 2010 in the 2010 half-year result. Lauritzen Bulkers 26.4 106.2 155.5 17.1 96.9 133.8 Lauritzen Kosan 17.9 13.1 30.7 5.3 (1.1) 7.2 Lauritzen Offshore 18.7 29.7 61.3 7.2 21.7 41.2 Lauritzen Kosan Lauritzen Tankers 6.8 5.4 12.1 4.4 3.0 11.8 The open market for smaller gas carriers held Other/not allocated (4.3) (1.0) (7.4) (4.3) (1.0) (7.4) up quite well during the first half of the year 65.4 153.6 252.2 29.6 119.6 186.5 due to the gradual market recovery. Lauritzen news · Issue #15 · september 2011 5
Invested capital year-end, USDm Total number of ship days was 2,034, com- pared to 2,357 in the first half of 2010. 2.400 2.000 EBITDA was USD 6.8m, compared to USD 1.600 5.4m in 2010, and operating income was 1.200 USD 4.4m, compared to USD 3.0m in 2010. 800 The improvement was mainly due to the 400 improved spot market. 0
LB LK LT LO JL Investments and balance sheet P hoto by C arsten L undager
2010 2011 Invested capital amounted to USD 2,342m, up from USD 2,033m at period-end 2010 due to planned fleet expansion and renewal.
Total number of ship days was 6,887, com- JL maintains a firm balance sheet with a sol- pared to 8,657 in the first half of 2010. vency ratio (excluding minority shareholders’ share of equity) of 49% at of 30 June 2010. EBITDA was USD 17.9m, compared to USD “J. Lauritzen A/S 13.1m in 2010, and operating income was JL’s remaining newbuilding program is fully experienced a chal- USD 5.3m, compared to USD (1.1)m in 2010. financed and no refinancing is required until lenging start to the The increase was due to market improve- 2015. year, even though a ments and increased export volumes out of Middle East Gulf. Outlook sizeable part of fore- Uncertainties regarding the world economy cast revenues were Lauritzen Offshore and continuous deliveries of new tonnage, secured by contracts. The market for offshore service vessels con- in particular bulk carriers, are anticipated to The result for the tinued its positive trend as deep-water oil maintain freight markets at a low level for the exploration and production gained further balance of 2011. first half of 2011 was momentum, particularly in Brazil. slightly better than Due to these uncertainties and counterparty expected, but was Total number of ship days was 342 com- defaults – also in relation to a long-term time strongly impacted pared to 362 in the first half of 2010. chartered Capesize bulk carrier for delivery in the second half of 2011, which has been sold by weakening of mar- EBITDA was USD 18.7m, compared to with a medium-term lease-back – the result kets and counterparty USD 29.7m in 2010, and operating income for the full year 2011 is expected to be lower defaults.” was USD 7.2m, compared to USD 21.7m in than earlier expected and significantly down 2010. Results were in line with expectations compared to the 2010 result in which one- Birgit Aagaard-Svendsen, Executive and reflects changed employment pattern offs of USD 73.8m in total were included. Vice President & Chief Financial Officer for the accommodation and support vessel Dan Swift.
Lauritzen Tankers The open market for medium range product tankers experienced high volatility during the For further details on JL’s 2011 first half of the year, albeit with an upward Interim result, please visit our website: www.j-l.com trend. 6 Lauritzen news · Issue #15 · september 2011 Bulking up in Singapore
J. Lauritzen’s “The dramatic growth experienced in most voyage related – the rest was time-charter. parts of Asia in recent years and the resulting Activity originating out of the office has growing presence increase in business being created, executed, increased significantly over the last few in Asia has made the and controlled here, underlines the impor- years, so that in 2010, 69 percent of our busi- Singapore office tance of a strong presence in the region” ness was being conducted on voyage terms. an increasingly says Martin Sato, who was posted in March You could say the ‘signature’ of the office 2011 to JL’s office in Singapore as general has changed from being largely a tonnage important hub, not manager of bulk activities. It is a position for provider to now being much more an indus- least for Lauritzen which he has a thorough grounding, having trial carrier. This change includes working to Bulkers’ activities started as a trainee within JL in 1998 and maintain much closer ties with the actual in the Pacific Rim. with Lauritzen Bulkers in 2000. He subse- customer – whether it is a small commodity quently spent four years in the LB office in trader or a big worldwide industrial group.” Stamford, Connecticut, USA, as chartering manager, primarily focusing on the North More people and ships and South American customer base, and Increased activity has led to an increase in returned to Copenhagen as senior chartering manpower as well. Where there were for- manager with specific focus on activities in merly three commercial chartering special- the Black Sea and Mediterranean region. All ists and two employees on the operations of this experience will be put to use managing side (all based in Singapore), the office LB’s increasing Pacific Rim activity from a today has grown to five employees on the base in the immediate ‘neighbourhood’. chartering side, including representatives in Shanghai and Tokyo, and four on the opera- Changing business activity tions side. It is anticipated that activity in the “In terms of fixtures, our volume has more or Singapore office will continue to increase, less tripled over the last four or five years,” partly because of China’s continuing role as he says. “And it is not a question of volume the world’s growth locomotive, but also due alone, but also of the way business is con- to the substantial number of newbuildings ducted. Back in 2008, only 12 to 13 percent being delivered to Lauritzen Bulkers in Asia of the business in the Singapore office was during the next few years. “Apart from the Lauritzen news · Issue #15 · september 2011 7
scheduled delivery of quite a few Handysize erators as well as for our customers, whether “You could say the vessels over the next couple of years,” says they are buying or selling commodities. That Martin Sato, “we are also adding a signifi- is also why we often need to act fast in order ‘signature’ of the cant number of new units to our Handymax to secure the right piece of business – even office has changed fleet – a total of nine during 2011 and 2012. before our colleagues in Copenhagen have from being largely Our increasing presence in this segment also woken up, and after our colleagues in Stam- a tonnage provider means that we’ve needed to dedicate more ford have gone to bed. In these cases it is manpower and attention to the Handymax crucial that we can depend on the mutual to now being much segment in all our offices around the world, trust and understanding we have built up. more an industrial including here in Singapore.” Coordination and communication between carrier. This change our offices around the world is without a includes working to Staying in touch doubt one of the primary keys to success – Coordination with other worldwide offices is it’s what allows us to find the best employ- maintain much closer a daily necessity. “It’s a fairly big part of the ment for each of our ships “. ties with the actual business and it is of the utmost importance customer – whether that communication is fast, efficient, and – it is a small commod- not least – open for all involved parties to chip in with comments and opinions,” says ity trader or a big Martin Sato. He also points out that while the worldwide industri- nature of the business is very personalised al group.” and relationship based, the speed of busi- ness continues to increase. “With offices in Martin Sato, the US, Europe, and here in Asia we are basi- General Manager, Bulk Activities, cally ready to pull the trigger 24/7, whenever J. Lauritzen Singapore the right piece of business pops up,” he says. “What might once have been decided over a long lunch is now agreed on over the phone Martin Sato moved to Singapore with his wife in just a few minutes and later formalised. and three children in March 2011 to take the This goes both for us as ship-owners and op- position of general manager of bulk activities. 8 Lauritzen news · Issue #15 ·september 2011
At home at Sankt Annae Plads
Judging from the roster of employees at JL’s rienced purchaser, and a year later – at the headquarters, the Danish shipping industry same conference – I signed my contract.” is becoming wonderfully diverse. The list of nationalities at Sankt Annae Plads includes – For both employees, there was an element of amongst others – Italian, Belarusian, Swedish, chance involved in coming to Copenhagen. Mexican, Dutch, Norwegian, Indian, Spanish, But what is it like to be here? There is no Faroese, and Greek – a list that is expanded question, it seems, that integration into the here to include French, Japanese, and Eng- JL family is no struggle at all. “I must say that lish interns. Conversations with four of these for my first three months here I was com- international members of JL’s workforce give pletely surprised,” says Karin van Espen. “JL a glimpse into the nature of the company – is very open and much less hierarchical than and the city – as a stimulating crossroads. my previous work experience. There’s so much appreciation here, you get so motivated, An easy fit it’s really a pleasure. Of course you hear if Saikat Sen Gupta, from India, and Karin van something goes wrong, but even more if Conversations with Espen, from the Netherlands, are both full- something goes right.” “I completely second two employees and time JL employees. Saikat Sen Gupta moved that,” says Saikat Sen Gupta. “It has been two interns tell a here in February this year to take a position easy to blend into the company. They make very positive story as technical superintendent in Copenhagen. you feel very welcome here. It’s an open His wife and four-year-old son are to arrive in working environment, not over-supervised.” about what it’s like Copenhagen during the summer. Karin Von for a foreigner to Espen and her husband have been in Den- Don’t mention the weather move to Copenhagen mark since November 2008, when she joined About life in Denmark, both employees have and work at JL’s JL as a purchaser, and they have bought a a very positive attitude, although they do say house south of Copenhagen. What brought that much of their contact with Danes comes head office. these two employees to JL and Copenhagen? through people they know through JL. Ac- Saikat Sen Gupta transferred from a position cording to Karin van Espen, “It is not so easy as superintendent with the Lauritzen Bulk- to make contact with Danes outside the job. ers site office at HHI/HHIC in South Korea, Unlike in Holland, where there’s more of a where he worked on newbuilding projects. drop-in culture, here you need a more formal Before that he had spent some years at sea appointment or invitation. To be fair this is as a chief engineer and had also worked in probably because most Danes seem already Hong Kong for Fleet Management Limited, to have a fully booked family and friend’s Lauritzen Bulkers’ ship management partner. schedule – but once you do make a con- Karin van Espen, who previously worked for nection, the Danes are very warm, friendly, 14 years at a shipping company in the Neth- and welcoming people.” A view that Saikat erlands, was at a conference for marine pur- Sen Gupta agrees with. “Although to tell the chasers (IMPA) in London. “I ran into Henrik truth,” he says,” I haven’t been here long Steffensen, JL’s purchasing manager, whom enough to meet many people outside of JL, I had also met at past conferences,” she and so far I’ve been a little lazy about explor- says. “He said he was looking for an expe- ing the city. When my family arrives, I plan to Lauritzen news · Issue #15 · september 2011 9
At home at Sankt Annae Plads P hoto by C arsten L undager Soazig Goardon joined the LB operations department for a six-month internship, and has now signed a contract for full-time employment.
change that – my son will be in kindergarten, intern job here involves helping to oversee change program with Fuji Trading Company, and we’ll make more contacts.” Negatives? five or six vessels and I get the chance to JL’s Far East broker: in 2008 one of JL's There must be something, says the inter- engage in the same activities as everyone technical purchasers spent three months in viewer. “Too cold in the wintertime,” says else. When I need help there’s always some- Japan. “I joined Fuji Trading because it was Karin van Espen. To which Saikat Sen Gupta one there – it’s been a good experience. If international, and I could use my language replies, “I was expecting it to be colder in it turned out that I could ever gain future training,” says Tatusya Saraike, “which I am Denmark compared to South Korea.“ employment with JL, I think that would be certainly doing during this exchange visit. As good for both JL and me. I am very impressed a purchaser in JL for these months, I feel that How about the Danish language, famously with the company. There is a relationship be- I’ve been completely involved, engaged in a stumbling block for many foreigners? No tween bosses and employees that is closer same activities as my colleagues. Actually JL problem. Karin van Espen has passed the than it is in France – to me it’s different, and is one of our good customers at Fuji Trading, Danish language certification test and plans I appreciate it.” so it’s very interesting to be here and to see to attend advanced courses. Saikat Sen Gupta how things work on the other side and how is being tutored regularly at JL. In late April, Tatusya Saraike joined JL’s pro- a shipowner works with suppliers. I’m learn- curement department in an exchange-intern ing a lot to take back to Fuji Trading – ideas Short exposure, strong impressions position for a period of three months. After about improvements in the way we work Soazig Goardon has joined the LB operations graduating from university with a degree in with shipowners and building good relations. department for a six-month internship. She languages, he has been employed with Fuji JL and Fuji Trading already have a strong has a bachelor’s degree in maritime and port Trading in Yokohama, Japan, since 2005. relationship, but I hope my experience will logistics from University of Nantes, France, His “internship” was actually part of an ex- help it become even stronger.” and is in her second year of masters degree studies. She is at JL to fulfil the internship requirement of her masters programme, which, according to Tove Elisabeth Nielsen, senior vice president and head of corporate human resources, is part of JL’s HR strat- egy: “We offer internships, when possible, to promising graduates-to-be but also to younger, talented employees from close business partners in connection with their further training. Not only the interns benefit from a three-month stay at JL or one of our subsidiaries, but also our organisation, in general, and the persons, in particular, who are entrusted with the role of mentor.”
“My grandfather was a seaman,” says Soazig Goardon, “but that wasn’t really a big influence. In fact it was somewhat arbitrary that I chose the maritime field, but my Tatusya Saraike joined JL’s procurement department in an exchange-intern position for a period experience at JL makes me glad that I did. My of three months. He is shown here at the helm of Lilla Dan. 10 Lauritzen news · Issue #15 · september 2011
Seeking synergies in ship management
A young fleet, a With an average age of just 1.7 years, fewer deficiencies, and all players in the market strong technical Lauritzen Bulkers' fleet is one of the shipping are well aware of this. Moreover, modern industry’s youngest. By comparison, almost designs, with double skin/flush sides, are department, and 50% of the global Handysize fleet is more easier to operate, and their wide hatches three outside man- than 20 years old and the overall average provide extreme flexibility when conducting agement partners age is 16 years, a fact that gives Lauritzen cargo loading and discharging operations. help Lauritzen Bulkers a number of technical and commer- All this adds value to the transportation ser- cial advantages. Generally speaking, modern vice. Further, Lauritzen Bulkers has managed Bulkers optimize vessels get a lot of attention from customers to extend the interval between delivery and ship management but receive less attention from port control first dry docking from 2.5 years to five years and stay competitive. authorities. It goes without saying that by applying an antifouling system to vessels’ younger ships with modern equipment have underwater hulls. This system has a mini- Lauritzen news · Issue #15 · september 2011 11
“Working with three different ship man- agement companies allows us to bench- mark performance. This way we can compare efficiency and effectiveness and share the best routines.”
Jan Olav Sjulstok Senior Technical Manager, Lauritzen Bulkers
sent a big investment, and we naturally want sumption is a big concern,” says Saikat Sen to see that they are well maintained. To help Gupta, technical superintendent for Lauritzen do that, we partner with three third-party Bulkers, “and we try to identify procedures management companies, a system that adds that can save fuel and apply them throughout a lot of value to our technical management. the fleet.” His colleague, Søren Roschmann, We are not dependant on just one company also a technical superintendent, points out and can apply best practices from all three that for the same reason the technical de- throughout the fleet to ensure first-rate man- partment carefully tracks new developments agement and control costs.” in ship design that can optimise the fleet’s speed/consumption ratio. “We have a large The three management companies – NCO number of companies coming to us with (New Century Overseas Management), Ma- technical solutions that can be applied to nila; FML (Fleet Management Limited), Hong newbuildings or retrofitted to existing vessels,” Kong; and SMP (Synergy Marine Pte Ltd), he says. Singapore – handle the full range of technical management responsibilities, from crewing, “In this regard, the technical department purchasing, daily operation, and responsi- plays an important part in LB’s overall green bility for safety on board to Declarations Of initiative,” says Carl Wegeberg, vice presi- mum 60-months guarantee, a cost-saving Compliance (DOC) with IMO regulations. dent, tonnage procurement, for Lauritzen initiative which also benefits the environment. “Working with three different ship manage- Bulkers. “They are our best source of Additionally, young vessels incorporate mod- ment companies allows us to benchmark information about how we can optimise the ern energy-saving features which contribute performance,” says Jan Olav Sjulstok, senior speed/consumption ratio of all our ships. to fuel efficiency and result in a superior technical manager for Lauritzen Bulkers. Thinking green can be good business strat- speed/consumption ratio. This allows them “This way we can compare efficiency and egy, especially in these times of rising fuel to provide a substantially better return than effectiveness and share the best routines. prices. There has to be a careful cost-benefit an old ship which uses more fuel. These are different companies, with different calculation to new technology, but we are in management and different nationalities, so a very competitive market and cutting costs High-value partnerships there are naturally synergies to be gained. through reduced fuel usage is a commercial To coordinate management of its young And of course our technical department is in as well as an environmental benefit.” and growing fleet – 22 wholly owned ships daily contact with all three companies. We today (28 by the end of 2012) – the Lauritzen are developing a manual to standardise the Bulkers technical department of five people way we deal with them – a kind of manager’s works with three outside ship management instruction manual, outlining clear guidelines companies. “Just five years ago we did not and reporting structure – that should help us have a technical department,” says Ejner work even better with them in the future.” Bonderup, president of Lauritzen Bulkers. “We have built it up concurrently with the Thinking green implementation of our newbuilding pro- Additionally, the LB technical department gramme to help us efficiently absorb and is responsible for day-to-day performance manage new ships. These new vessels repre- tracking of all ships in the fleet. “Fuel con- 12 Lauritzen news · Issue #15 · september 2011
Blogging from the Henrietta Kosan
As COO of IMPA (International Marine Pur- Henrietta Kosan chasing Association), the leading global Ship Type: Tanker – association for marine purchasing and supply LPG/ C tanker Hazard C professionals, Stephen Alexander was invited by JL to join the crew on Henrietta Kosan, in (Minor), 8,500t order to better understand the business he Year Built: 2007 works in. Additionally, Stephen Alexander is Length x Breadth: also an independent marketer; entrepreneur; and – recently, as of this voyage – IMPA- 115m X 18m man, seagoing blogger. Following are a few Deadweight: 8,500 t highlights from the blog he posted while Speed recorded onboard the Henrietta Kosan during her A quick dip voyage on her journey from Hamana, Fin- . . . my day started with a swim!!! Together (Max / Average): land, to Stenungsund, Sweden in July 2011. with Deck Cadet Lei Mar and Electrician 16.7 / 16.5 knots The full blog is available at Jan Joshen, the water was cold . . . but Flag: United Kingdom (UK) www.impaman.wordpress.com only at first.
Welcome to the shipping business Beauty and beast said with ‘tongue in cheek’ he would look I’ve always liked getting my hands dirty to OK so I’m a self-confessed petrol head, out for me as we pass Copenhagen, so start with [and] enjoyed getting under the hands up, I am. I like engines and I’m a I’m looking . . . what I see is a beautiful skin of things and I suppose this trip will "Top Gear" fan so I want to talk about the evening as the sun sets. be the best experience yet in understand- engine that runs Henrietta . . . it’s a MAN ing the business in which I work. After I’ve B&W 5,920 8 cylinder 8535MC type. done this trip I’ll be able to say: "When I It turns out to be just under 8,000 horse- was at sea . . ." power which I equate to about 16 Bentleys or Ferraris. Nice! Soon enough we I’m on my way reach the engine itself and it’s beautiful, The flight to Helsinki has a great many occupying several floors it stands in pride Filipino passengers on it and I’m tempted of place in the factory. I’m snapping away to ask one of them if they’re ship crew. with my camera and the smooth but heavy Except I can’t as the one seated next to thumping vibrates throughout me. I’m me has fallen asleep on my shoulder! conscious there’s a big smile on my face. On dry land First sight . . . Tricky navigation As I stand alone I take a final look at I get a first glance of Henrietta Kosan. She The Sound is a strait of the sea that sepa- Henrietta, I’m looking forward to getting stands alone – it sounds stupid I know, rates Zealand in Denmark from the south home but I feel sad to leave her – the Cap- but I almost feel a sense of romance as province of Scania in Sweden. At just four tain knows this and he tells’ me it’s worse we approach. At this stage I don’t know kilometres wide at the narrowest point after 5 months. Connections have been exactly what the cargo of this trip is but it’s one of three Danish straits that con- made during this voyage. I’m in awe of what looks like a floating nect the Baltic Sea to the Atlantic Ocean. factory – alive with industry. I’m also im- It also happens to be one of the busiest pressed with how immaculate the ship waterways in the world and has shallow is, everything is shiny and painted in waters in places. The team is navigating either yellow, blue or white and although through a stretch that appears to me to four years old, it looks new, the impos- be less than 100 meters wide and we are ing bridge spans the full width of the ship passing other ships of varying lengths and I begin to smell the machinery oils and sizes that are only a few meters away. and diesel. It’s atmospheric and I realise I remember my organiser for this trip [JL’s there’s no turning back. purchasing manager] Henrik Steffensen Lauritzen news · Issue #15 · september 2011 13 Staff news
Jørgen Kragh has returned to Sankt Annae New member of the Board of Directors On the other side Plads after being posted to JL’s Stamford of- for J. Lauritzen A/S Congratulations to Jens Pedersen and Kasper fice for 10 years and, most recently, to JL’s At an extraordinary General Assembly board Kofoed-Dam, who finished their two-year Tokyo office for two years. He will fill the meeting Marianne Wiinholt, senior vice pres- intensive training program with JL end of July position of senior vice president in Lauritzen ident of corporate finance for Dong Energy, was this year. Jens Pedersen now holds the title Kosan, replacing Thomas Wøidemann, who elected as a new member of the Board of of Assistant Operations Manager and will was promoted to president of Lauritzen Ko- Directors for J. Lauritzen A/S. JL’s Board of be joining our US office from the beginning san in March. Directors now consists of six members (pre- of next year. Kasper Kofoed-Dam is now a viously five) elected by the General Assembly Bunker Purchaser and is ready to initiate his and three (unchanged) elected by JL employ- career with JL at Sankt Anae Plads in Copen- ees. Marianne Wiinholt is a state-certified hagen. public accountant. She has been with Dong Energy since 2004 and has previously worked for Borealis and Arthur Andersen.
Birgit Aagaard-Svendsen appointed Birgit Aagaard-Svendsen, executive vice year board membership with Danske Bank. Chairman of the Danish Corporate president and CFO of JL, has filled several Governance Committee board and committee positions in the Dan- The Danish Corporate Governance Commit- ish business community. Most recently, she tee has had a significant influence on the de- has been appointed the new Chairman of the velopment of Danish companies in assessing Danish Corporate Governance Committee good management. Among the new goals for the standard period of two-years, where set by the Committee are to enhance the un- she succeeds Steen Scheiby, chairman of derstanding of diversity management and the board of directors of Novo Nordisk. The the acceptance of remuneration processes, eight-member committee works to promote as well as self-assessment. Additionally the the development of good corporate govern- Committee will continue to work with the
P hoto by C arsten L undager ance in listed Danish corporations, where European Commission’s proposal on corporate transparency is one of the main criteria for governance for public limited companies. “It good investor relations. Although JL is no is our ambition that Denmark should continue longer part of a listed group, Birgit Aagaard- its high level of corporate governance,” says Svendsen has significant experience from Birgit Aagard-Svendsen. other listed companies, such as a sixteen 14 Lauritzen news · Issue #15 · september 2011 Another big scoop in Brazil for Lauritzen Offshore
Naming of two offshore shuttle tankers
On the 17 August the namegiving of Dan Cisne and Dan Sabia took place at a ceremony at Cosco Nantong Shipyard in China. The two 59,000 dwt offshore shuttle tankers were named by the spouses of Mr. Sergio Machado, CEO of Transpetro, and Mr. Erik Møller, project manager of Lauritzen Offshore Services. Dan Cisne was named by Mrs. Suely Machado and Dan Sabia by Mrs. Pernille Winther Jensen. The two godmothers defied the heavy rain and carried out their tasks brilliantly.
The accommodation The long-term contract for Dan Swift com- Petrobras’s expansion of its UMS fleet. One and support vessel menced in July 2011, and the vessel is the is that, in line with the rest of the industry, third dynamically positioned (DP) accommo- Petrobras has strengthened its policies on Dan Swift, now dation and maintenance platform in Petro- safety and maintenance in the wake of the named UMS Cidade de bras’s new fleet of maintenance and safety 2010 Macondo blowout incident in the US Casimiro de Abreu, units, known as UMS (Unidade de Manuten- Gulf. The more maintenance oil platforms begins a five-year ção e Segurança). Dan Swift is the first receive, the safer they are, and the UMS monohull accommodation and support ves- units – sometimes called floating shipyards contract with Petro- sels to service the high end of the offshore – are expected to work between four and 12 bras for major main- market. She will be deployed to accommo- months on given platforms for maintenance tenance and refur- date close to 300 people for Petrobras in the work. The project allows major maintenance bishment work on Campos Basin offshore Brazil. In addition to and refurbishment work to be carried out modern accommodation facilities, the DP-2 without requiring a production shutdown. oil platforms in the vessel is equipped with two independent tel- A second factor driving investment in UMS Campos basin. escopic gangways, which provide safe per- rigs relates to Petrobras’s focus on improv- sonnel transfer while Dan Swift – in DP mode ing recovery factors, allowing the company – remains constantly connected to fixed and to produce more oil from mature fields. This floating offshore installations. Petrobras has adds to the lifespan of some older platforms renamed Dan Swift in Brazil to UMS Cidade and pushes back the decommissioning date. de Casimiro de Abreau, which will be a call UMS units will provide large quantity man- name for Petrobras in Brazil, not a formal power to work intensively on platforms to name change of the vessel. make this happen.
Increased safety and productivity Although the Dan Swift was most recently According to Michael Kristensen, COO of LO, employed on a brief Shell FPSO (Floating there are two fundamental drivers behind Production, Storage, and Offloading) project Lauritzen news · Issue #15 · september 2011 15
Brian Mikkelsen visits Brazil and Lauritzen Offshore Brian Mikkelsen, Denmark’s Minister of Economy and Business Affairs, and Henning Dyremose, for- merly Minister of Finance for Denmark and CEO of TDC, and current Ambassador-at-Large for com- mercial affairs focusing on Danish exports to Brazil, visited Brazil in June 2011 in order to promote Danish business. During their stay in Brazil they also attended a reception at LO’s office in Rio de Janiero on 16 June 2011. This photo, taken during the visit to LO, shows from left: the Danish am- bassador to Brazil, Svend Roed Nielsen; Brian Mikkelsen; Michael Kristensen; Henning Dyremose.
“For the Rio office this will be a full- time job every day, in terms of contract management, opera- tional execution, and customer relation- ship – we will be very busy over next few years.” Michael Kristensen COO, Lauritzen Offshore
offshore Nigeria, she spent the previous year schedule was moved up.” Peder Christian important partner in the offshore services employed offshore Brazil by Statoil, work- Sørensen, vessel manager in Lauritzen Off- market with special focus on deep water ing on new wellhead commissioning. “We shore Services, points out that according to employment offshore Brazil. In addition to began discussion with Petrobras last year,” Danish regulations a passenger ship like Dan Dan Swift, LO has three dynamically posi- says Michael Kristensen, “and it was helpful Swift has to go to dry dock every year. “We tioned shuttle tankers on long-term contracts that they were able to see Dan Swift in opera- originally got an exemption to do this two with the Brazilian company. “With the recent tion – we took them aboard for a first-hand times in a five-year period,” he says, “and employment for Dan Swift, LO has not only look at her capabilities. Plans took shape then to meet terms of the Petrobras contract fulfilled the initial part of its strategy, but also during last year, and by April this year we we received another exemption to meet the confirmed our ability to establish long-term had signed a contract to begin in July. For five-year requirement. The Dan Swift is the business relations with some of the most JL’s Rio office this will be a full-time job every first ship in Denmark to receive such an ex- demanding customers in the offshore services day, in terms of contract management, oper- emption, which was possible because she market. Top performance, quality, and safety ational execution, and customer relationship is usually in deep water and does not go to play an important part in this industry,” says – we will be very busy over next few years.” port as often as a typical passenger ship.” Jesper Kragh Andresen, president of LO. Additionally, the Petrobras contract called Ready for employment for some extensive equipment alterations – In fact the hard work began well in ad- particularly to the ship’s IT and communica- vance of contract commencement, as the tions systems – which occupied the final two Dan Swift spent a month in dry dock in Fal- weeks in dry dock. The final hurdle before mouth, England, to prepare for employment Dan Swift went to work was a series of tests with Petrobras. “Normally, dry-dock mainte- and approvals, conducted by Petrobras and nance wouldn’t take place until a year from a number of Brazilian government agencies. now,” says Erik Møller, project manager for LO, “but the Petrobras contract stipulated Strategic accomplishment that the vessel must be in the water for five With the Petrobras contract, LO has fulfilled years – therefore the standard maintenance the first part of its strategy to become an 16 Lauritzen news · Issue #15 · september 2011
Strengthened commitment to CSR
While the basic Responsibility and good corporate citizenship business importance, with an impact on have been an important part of JL’s history area as diverse as local employment and principles of for many years, with most CSR activities car- energy efficiency.O “ f course philanthropy is Corporate Social ried out at the business unit and operational an important element of CSR policy, but it is Responsibility (CSR) level. The recent formation of a CSR commit- only one element”, says Jens Søndergaard. have been a part tee will help JL coordinate and align CSR “At JL we believe that the most important policies on the Group level. The committee is thing about CSR is not how we spend our of JL’s corporate composed of representatives from all busi- money, but how we earn our money – and DNA for decades, a ness units, as well as from the procurement, how we conduct ourselves while we’re new committee will HR, and legal departments. The concept for earning it. However we will be in close di- help ensure that the CSR committee originated with Jens alogue with the Lauritzen Foundation on Søndergaard, senior vice president of JL. CSR related matters of mutual interest." As policies are aligned Since joining JL in May as CSR assistant, an affirmation of JL’s commitment to CSR throughout the Kathrine Geisler began working to make it goals, the company has recently become company. a reality. Both will also be members of the a signatory to the United Nations Global committee. Compact – a strategic CSR framework that encourages businesses to commit and align Kathrine Geisler has recently graduated from their operations and strategies with ten Copenhagen Business School – with top universally accepted principles in the areas marks – with a Masters degree in CSR. Paral- of human rights, labour, environment, and lel with her studies she has headed a similar anti-corruption – as well as working selec- CSR process in a smaller Danish listed com- tively with some of the UN’s Millennium pany. “Essentially, the purpose of the CSR Development Goals. (Please see the adjoining committee is to put forward proposals and page for the complete text of the Compact recommendations for JL’s Executive Group,” and Goals.) she says. “We’ve drawn up terms of refer- ence that will help us work on aligning the various CSR initiatives that already exist – to establish uniform practices and make con- crete proposals and recommendations on strategies and policies.” All such proposals will be grounded in the existing practices of JL’s various business units, focusing on four main CSR areas: • Health, safety, and security • Social responsibility • Environment and climate "We are committed to making the Global • Business practices and ethics Compact and its principles part of the strategy, culture, and day-to-day operations of our Beyond philanthropy company, and to engaging in collaborative CSR has in the past often been seen through Torben Janholt, President and CEO of JL (at left), projects which advance the broader develop- the lens of philanthropic efforts. But because and Bent Østergaard, Chairman of JL’s Board of ment goals of the United Nations, particularly of its long-standing integration into JL’s busi- Directors, signing the UN Global Compact, as the the Millennium Development Goals." ness units, CSR is also a matter of strategic JL Group strengthens its commitment to CSR. Lauritzen news · Issue #15 · september 2011 17
UN Global Compact Millennium Development The UN Global Compact asks compa- Goals nies to embrace, support and enact, within their sphere of influence, a set Adopted by world leaders in the year of core values in the areas of human 2000 and set to be achieved by 2015, rights, labour standards, the environ- the Millennium Development Goals ment and anti-corruption: provide concrete, numerical bench- marks for tackling extreme poverty in Human Rights its many dimensions. If these goals Principle 1: Businesses should support “The charter of the are achieved, world poverty will be cut Lauritzen Foundation and respect the protection of interna- by half, tens of millions of lives will be tionally proclaimed human rights; and saved, and billions more people will mandates a number Principle 2: make sure that they are have the opportunity to benefit from of CSR-related issues. not complicit in human rights abuses. the global economy. We naturally have a keen interest in help- Labour Goal 1: Eradicate extreme poverty Principle 3: Businesses should uphold and hunger ing the J. Lauritzen the freedom of association and the Goal 2: Achieve universal primary Group companies with effective recognition of the right to education collective bargaining; Principle 4: the strategic CSR initia- Goal 3: Promote gender equality and tives in any way we elimination of all forms of forced and empower women compulsory labour; Principle 5: the Goal 4: Reduce child mortality rates can – for example effective abolition of child labour; and Goal 5: Improve maternal health promoting environ- Principle 6: the elimination of discrimi- Goal 6: Combat HIV/AIDS, malaria, nation in respect of employment and mentally progressive and other diseases technologies, social occupation. Goal 7: Ensure environmental sustainability awareness, and educa- Environment Goal 8: Develop a global partnership tional development.” Principle 7: Businesses should support for development against a precautionary approach to environ- corruption in all its forms, Jens Ditlev Lauritzen mental challenges; Principle 8: under- including extortion and bribery. Chairman, Lauritzen Foundation take initiatives to promote greater environmental responsibility; and Principle 9: encourage the develop- ment and diffusion of environmentally friendly technologies. Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. 18 Lauritzen news · Issue #15 · september 2011 Keeping an eye on quality
Lauritzen Tankers’ site office at Guang- zhou Shipyard International (GSI) in China is charged with overseeing construction and delivery of a series of medium-range product tankers. The team of nine, which includes both Chi- nese and European members, is headed by Fernando Granda. Here, he offers some insight into how the team operates.
From left: Henrik Daarbak, Technical Project Manager, LK site office Kejin; Fernando Granda, Site Manager, GSI; and Per Fabricius, Site Manager, Jiangmen Shipyard, China, at the namegiving ceremony of Freja Pegasus at GSI Shipyard.
What is the makeup of your team, and In addition, we also have the support of Henrik how long has it been together? Daarbak, LK’s Technical Project Manager in We are nine team members altogether; six China. The core of the site team was put in Chinese; two Danes; and me, from Spain. By place two years ago. There have been some job speciality the breakdown is: two engine/ changes and additions since then, but the machinery superintendents, two hull/outfit- actual team we are working with today has ting superintendents, two coating superin- been together for almost one year. tendents, one electric superintendent, one secretary, and me as coordinator. Lauritzen news · Issue #15 · september 2011 19
Launching of Freja Pegasus at GSI.
About Guangzhou Shipyard
Guangzhou Shipyard International Co., Ltd. (GSI) is the largest modern integrated shipbuilding business in South China and one of the 500 biggest enterprises in China. GSI encompasses several business areas as diverse as container manu- facturing and tobacco processing, but shipbuilding is the core business. It owns three building berths with capacities of 10,000 dwt, 30,000 dwt, and 40,000-60,000 dwt, as well as a 680-meter long shipbuilding quay. What is the team’s specific project group can be seen as strange or offensive Types of vessels produced include for Lauritzen Tankers, and what is the by others. In our case, the three of us who container ships, multipurpose ships, biggest challenge you face? are foreigners all feel that we should try our bulk cargo carriers, cargo-passenger Our project consists of monitoring the con- best to adapt ourselves to the country where vessels, crude oil tankers and product tankers, merchant ships, and military struction process for a series of chemical/ we are living and working. In my experience, vessels. product tankers being built at the shipyard that effort always produces good results. – specifically eight vessels of 50,500 dwt and • Number of employees: one vessel of 52,300 dwt. To date, two units Language can, of course, be a big obstacle, have been delivered, leaving seven more to and that’s one of the reasons we have lo- 3,429 come, with a scheduled end date of mid cal people on the team. The local site team • Total number of 2013. members can help us communicate with the people working at GSI different departments in the yard and avoid The main challenge is to ascertain high misunderstandings and overcome possible including subcontrac- technical quality, and our mission here is to language barriers. tors: approximately make sure the shipyard delivers a product as 10,000 close as possible to our specifications. One What are the challenges in managing • advantage we have now is that JL has sev- such a team? Has your previous experi- Annual shipbuilding eral newbuilding projects underway in China. ence prepared you for this? capacity: more than This creates synergy since we can share To work in an international team is always a 200,000 dwt experience and expertise between different challenge, but it also has benefits, as I men- • Lauritzen site teams, and it gives us a strong tioned earlier. Also, since many of us working Annual ship output: technical position in newbuilding in China. in newbuilding have maritime backgrounds it 10 vessels is not new for us to work with international • Danish shipowners How about national/cultural differences, crews/teams. So in this regard, I have to say such as language? that my previous experience has prepared building vessels at Cultural differences always have two faces: me well for this job. The main challenge in GSI, apart from the good side when we learn new things managing the team is simply to try to mini- Lauritzen Tankers: from each other and the less positive one mise the potential for culture shock and AP Moller-Maersk, when some kind of culture shock occurs. The socialise as much as possible to create a Norden, Torm definition of the latter is simply when some- good team spirit. thing that seems completely normal for one 20 Lauritzen news · Issue #15 · september 2011 Countering piracy off Somalia: an expert opinion
"We have to regard piracy in the region not solely as a prob- lem that affects international ship- ping, but also as a problem that has a direct negative im- pact on the whole region."
Dan B. Termansen, Commander s.g., Royal Danish Navy
This article by Dan B. Termansen, Com- gies win wars. I would argue that, so far, only – armed guards are the most effective de- mander s.g. Royal Danish Navy and for- defensive and deterrence tactics have been fensive tactics so far and they may in fact be mer Captain on HDMS Absalon, is based employed, but no overall strategy addressing credited for the recent declining trend in suc- on his report “Counter Piracy offS omalia; the root causes of piracy is yet in place. cessful pirate attacks. However, the problem a case for applying the comprehensive of piracy still exists and may eventually even approach" which was submitted to the Initiatives like best management practices, grow, if defences are lowered. This argument Naval War College, Newport, Rhode armed guards, naval patrols, and convoying would support the war theory notion about Island, USA. The contents of this article are defensive tactics in the fight. Among the tactics and stratgy. Defensive and deterrence represent Commander Termansen’s own deterrence initiatives are seizing and blowing tactics may prevent pirate attacks from being views and do not necessarily reflect the up of mother ships, warships' show of force successful. They may even reduce the num- views of the Royal Danish Navy, the Dan- along the Somali coastline, and directed ber of attacks, but we can only claim victory ish government or any other organisation. messages to pirate gangs via, e.g., radio sta- if pirates are prevented from adapting their tions and word of mouth. The prosecution and behaviour and are discouraged from em- Deterrence initiatives imprisonment of pirates and their leaders, ploying new tactics. This is where an overall The trends in the fight against Piracy are diffi- and tracing of ransom-money flow provide strategy is important, because it would align cult to define because there is a lack of a clear credibility to the law enforcement effort and will the tactics not only to counter specific pirate overall strategy. The different initiatives taken eventually have a deterrent effect. Capacity threats, but would also be designed to ham- by ship owners, various countries, and inter- building, i.e., training of regional countries’ per pirates’ freedom of manoeuvre in gen- national organisations are generally working coast guard capabilities is another tactic to eral and their ability to adapt. in the same direction though. These trends, improve the defence and deterrence tactics. however, are largely focused on deterrence We may be close to a short-term tactical ad- and defence at the tactical level combined A strategic approach vantage in the defensive battle against the with law enforcement at the national level. It would seem that the combination of naval current piracy threat, if the declining trend in In the theory of war, tactics achieve isolated patrols and surveillance, group convoying, successful piracy attacks is maintained. But victories in separate battles, whereas strate- best management practices, and – recently we will not win the war if we do not agree on Lauritzen news · Issue #15 · september 2011 21
Coming in the next issue of Lauritzen News: reporting on efforts by the Laurit- zen Foundation and other organisations to break the poverty curve in Somalia and create an alternative to piracy.
an overall strategy, aligning all the different majority of affected countries have stepped tactics and perhaps most importantly, ad- up to their responsibility under the auspices Armed guards: dressing the root causes of piracy. The root of the UN, with all the inherent strengths and an effective but causes in my perspective being absence of weaknesses this entails. limited tactic governance, poverty, boredom, and lack of basic needs combined with the low risk pi- As mentioned several times in the debate, rates face in their safe havens. piracy is an international problem that re- As part of an overall strategy in the quires an international solution. No single fight against piracy, the employment The desired outcome of a counter-pirate country has the means alone to solve the of armed guards seem so far to be an strategy must be a sustainable victory, i.e., problem and international organisations can- effective tactic at the moment, though a permanent elimination of piracy in the Ara- not embrace the issue without involving all quite expensive in an overall perspec- bian Sea. Consequently, the strategy has to parties, including regional countries, the in- tive given the number of ships transit- address both the factors that push Somalis ternational shipping industry, ship owners, ing the region. Armed guards, however, into piracy and the factors that make it worth flag states, and, of course, Somalia. Involve- cannot be the sole quick fix tactic the risk. In other words, it implies a combi- ment by all parties is necessary to achieve an employed, although they can improve nation of raising the risk (e.g., risk of being overall strategy combining the various initia- the merchant ship’s total protection by captured or killed), lowering the payoff (e.g., tives (tactics), in order to permanently elimi- combining defence with deterrence and lowering number of successful attacks and nate the problem. A lot of actors are in fact by having the naval forces to provide making it harder to transfer and spend ran- already involved. Through the network of the surveillance and back up if necessary. som money), and providing sustainable al- international shipping industry, responsible I think it is paramount that the armed ternative means of life for the Somali people ship owners associations and maritime or- guards are aligned with the general (e.g., focused development aid and regional ganisations are encouraging best manage- rules of engagement as the military civil capacity building). ment practices and promoting common forces operating the region follow standards for, e.g. employing armed guards. adhering to international law and human rights. Armed guards should be under The countries that have joined in the fight clear command and control, with a set against piracy are pushing for an interna- of rules of engagement. The ship must tional legal framework to prosecute and con- be ready to deal with the consequences vict pirates, trace the ransom-money flow by if armed guards kill or injure civilians as targeting the pirates’ financial foundation. well as pirates and not leave anybody in Countries have also provided naval presence distress in open sea. I have often partici- in the area to protect international shipping. pated in conferences and blog discus- At the same time, flag states seek sustain- sions where some argue that pirates able solutions in concert with the regional should be hunted down and shot. I of states, bilaterally or through international course cannot support that argument Responsibility for action organisations. As an example, the Danish first of all because the only way we will The formal responsibility to take action government has been engaged in the fight be able to maintain legality and legiti- against piracy should be Somalia's, because against pirates for several years by commit- macy is by adhering to international piracy originates from this country and this is ting robust naval forces from early on and, law and human rights. Secondly having where pirates enjoy safe havens due to lack at the same time, highlighting piracy as an experienced the complexness of the of governance and law enforcement. Soma- international problem on the UN agenda. The piracy issue during the last couple of lia, however, is obviously not a functioning Danish Ship Owners Association has been a years, I know that it is very difficult to state. The regional countries have an eco- very responsible partner in coming up with distinguish a friend (the local fishermen nomic and political interest in fighting piracy solutions and activating their intentional net- and regional merchants who all carry as they are affected by second- and third-or- work. Finally, Denmark is now engaged bilat- weapons to protect themselves) from der consequences, but they do not have the erally and through international and regional a foe (the robbers and pirates using capabilities. Paradoxically, it ends up being organisations, in providing training and edu- local hijacked merchant ships as the victims of piracy, the directly affected but cation to regional countries in order for them mother ships and operating skiffs in non-regional parties – the ship owners and to build maritime law enforcement capaci- packs that simulate local fishermen just flag states – that have to deal with the prob- ties in the region. The effort can also benefit prior to an attack). lem. Through International organisations, the Continued on page 22 22 Lauritzen news · Issue #15 · september 2011
Countering piracy off Somalia: an expert opinion
From page 21
from governmental and non-governmental of Somali entrepreneurship which show that parts of the west and east African coast – to organisations in focused development aid it is possible to establish small businesses in provide the long-term security necessary to projects in support of an overall strategy. the area. I experienced one during a patrol foster local self-sufficiency. along the Somali north coast. A large num- Long-term mission ber of boats and skiffs were gathered off If we agree that the desired outcome of a a newly started fish factory in the town of The Lauritzen counter-piracy strategy is the permanent Laasqorey. According to an article in the lo- Foundation elimination of piracy in the region, we have cal media, the factory was started by a local supports youth to align and synchronize our tactics. We entrepreneur, with financial support from the in Somalia have to regard piracy in the region not solely local community. The plant employed 600 as a problem that affects international ship- people and provided an obvious opportunity ping, but also as a problem that has a direct for trade to the local fishermen. Breaking the poverty curve in Somalia negative impact on the whole region. It is a is a possible way to create an alterna- situation where local trade is affected due to Further development on the coast of Somalia tive to piracy for the next generation. piracy and lack of law enforcement capabili- could be encouraged through employing na- Since 2009 Save the Children Denmark ties in Somalia, at sea as well as ashore. val provincial reconstruction teams (inspired and local partners have established a Piracy affects not only the possibility for fish- from Afghanistan where such a concept has project which focuses on education ermen, farmers, and local merchants to trade provided signs of regional development) to and training of the youth generation in – consequently preventing local economic support small fish-processing plants and pro- Somalia where it is estimated that close growth – but also affects the ability of region- vide equipment and training in manufacturing to 40 % of the next generation is un- al countries’ coastal populations to make a skills. Acknowledging that marine-driven employed. Save the Children is known living from the sea. Eventually they find oth- economy cannot solve the Somali problem for its active work for children’s rights, er, often illegal, means to sustain their fami- alone, a reconstruction strategy could be kick as described in the UN Convention on lies, which again can fuel regional unrest and started by anchoring up redundant fish-pro- the Rights of the Child. The project in instability, piracy, and even terrorism. cessing factory ships off the Somali northern Somalia is called ‘Vocational Education coast to compensate for lack of infrastructure and Training for Accelerated Promotion From this perspective I think it is paramount and eventually donated to the local communi- of Employment’ (VETAPE) and reaches that we engage in the long-term mission to ties. In addition, IGOs (International Govern- nearly 1,200 young Somalis in several assist the regional countries in building law mental Organisations) and NGOs could super- different parts of the world’s most enforcement capacities to counter piracy. vise local costal infrastructure, encouraging fragmented country. Together with the This approach has the spin-off effect that the local entrepreneurs. These projects can all be Danish Ship Owner’s Association and region eventually will be able to enjoy safe initiated from the sea in isolated areas with dif- other Danish Shipping Foundations, the trade by sea and protect their marine resourc- ficult logistical and security situations. NGOs Lauritzen Foundation financially sup- es, thus providing a basis for a sustainable and IGOs can be supported and, if required, ports the project that aims to generate growth. In the meantime, we must focus on secured by naval assets when engaged a real alternative to unemployment maintaining the safety of the merchant crews ashore. The naval forces are furthermore able within the youth generation of Soma- and their ships transiting the region by a com- to cover several engagements along the coast, lia where civil war, piracy and hunger mitted effort to combine naval forces’ and revisiting them on a regular basis – as seen unfortunately is a known reality. merchant ships’ defence, surveillance, and with the US African Partnership Program on deterrence tactics. Together with an effective law enforcement effort leading to conviction of pirates, middlemen, and backers, the bal- ance of risk and gain will eventually tip for the pirates and discourage potential new recruits.
Encouraging self-sufficiency This is not, however, the whole solution. There must also be a focus on the push factors, – the factors that drive people into piracy. We have to support the local popula- tion in developing their own future, thereby reducing their willingness to accept the risks of piracy and not least violate family, clan, and religious traditions. There are instances Lauritzen news · Issue #15 · september 2011 23
P hoto by R obert A ttenman “The reefer business was coming to an end within JL, and the DP training programme gave me the chance to stay with the com- pany and develop my own professional skills.”
Jan Lystlund Sørensen Master DPO, Lauritzen Offshore
practical training. He began in 2008, while still working on reefer vessels, with the DP Building on basic training course at the Maersk Training Centre in Svendborg, Denmark. In late January 2010 he continued training on JL’s first shuttle tanker Dan Eagle, starting with 30 experience days familiarisation with the DP equipment. This was followed by the DP advanced Jan Lystlund Søren- reefer in 1979. After completing training course in London at the Dynamic Positioning sen is the first on different vessels within the company he Centre. During the same year he also took a went to navigation school in Fanø, Denmark, number of DP-related field-specific courses; graduate of a JL pro- during the summer of 1980. He received his these are required by the operator, in this gramme that trains masters license in 1983, and went to sea case Transpetro. After completing the seasoned officers to again in reefers operated by JL. He was advanced course he returned to the Dan serve on dynamically away from the company for a few years, Eagle as third officer in order to get enough positioned shuttle during which he primarily worked with fish- sea time for the DP certificate (180 days tankers. ing inspection and rescue vessels in Danish beyond the 30 days of DP familiarisation) waters. After rejoining JL in 2002 he was and received his unlimited certificate in late promoted to master on the Ditlev Lauritzen January 2011. As reported in the previous issue of Lauritzen in 2004. In short, Jan Lystlund Sørensen is News, the growth of Lauritzen Offshore’s oil exactly what the retraining programme was Beyond basic and advanced operation of the services business served by dynamically po- designed for: an experienced, proven officer dynamic positioning system, training also sitioned (DP) vessels – such as shuttle tank- who knows JL’s systems and culture – and covered situations in which the limits of the ers and the accommodation and support one who recently celebrated his 25th year DP system have been exceeded, which can vessel Dan Swift – has intensified demand with the company. be caused by the environment (wind and/or for DP-qualified officers. So it was a natural current) or mechanical/power issues such as move for JL to set up a training programme “The reefer business was coming to an end blackouts and breakdowns. “For me – and to move officers from reefer vessels formerly within JL,” he says, “and the DP training pro- I think for everyone else going through the owned by JL to DP vessels. The programme’s gramme gave me the chance to stay with the training – this was the biggest challenge,” first graduate, Jan Lystlund Sørensen, will company and develop my own professional says Jan Lystlund Sørensen, “trying to begin work in October as a Master DPO on skills. Had I stayed with reefers, it would have predict the limitations caused by things Lauritzen Offshore’s first shuttle tanker new- meant employment with another – probably we can’t control. This was covered during building, the Dan Cisne, which is scheduled foreign – company, which I didn’t want. So simulator training during three courses to be delivered to Transpetro in Brazil later I saw the programme as a very good oppor- at the Ship Manoeuvring Centre (SMS) in this year. tunity.” Trondheim, Norway, where we had exercises that simulated cases taken from real life. It 25 years with JL Full range of training was extremely useful for learning exactly Jan Lystlund Sørensen started his career The DP training that Jan Lystlund Sørensen what not to do in given situations.” with JL as an apprentice on the M/V Roman received consisted of both theoretical and Lauritzen news · Issue #15 · september 2011
Jørgen Lauritzen “capsized”
In connection with torrential rains in Co- vessel, but unfortunately also to the prem- penhagen on 2 July 2011, which caused ises of the newly and beautifully renovated flooding of many of Copenhagen’s historical Danish Shipowners’ Association. The model buildings, a model of reefer vessel Jørgen is currently undergoing extensive repairs at Lauritzen “capsized” at the premises of the Meyer and Andresen model builders in Co- Danish Shipowners’ Association where the penhagen. water rose to more than 1.5 meters. The headquarters of J. Lauritzen was also As shown in the photos, the “capsize” caused impacted by the heavy flooding, but fortu- heavy damage not only to the model of the nately only to a minor extent.
Editors J. Lauritzen A/S Editorial support and design Lauritzen News is a semiannual Torben Janholt Sankt Annae Plads 28 Cross-Border Communications publication. Reproduction permitted Tove Elisabeth Nielsen 1250 Copenhagen K Copenhagen only after agreement with the editors. Jens Søndergaard Denmark Maj Faurholm Tel: +45 3396 8000 Inhouse Photographer Charlotte Nilausen Ulla Munch-Petersen
J. Lauritzen A/S operates globally and is engaged in diversified ocean transport through Lauritzen Bulkers (dry bulk cargoes), Lauritzen Kosan (petrochemical and liquefied petroleum gases) and Lauritzen Tankers (refined oil products). J. Lauritzen also serves the offshore oil exploration and production industry with specialised tonnage through Lauritzen Offshore.
JL employs a staff of approximately 1,200 persons and together with partners/associates controls a combined fleet of about 200 vessels including short-term time-charters and vessels on order consisting of bulk carriers, gas carriers, product tankers and dynamically positioned offshore support vessels. For more details on JL’s business activities and fleets, see www.j-l.com