Swedish sea captains Contents 77th year of operations Sweden’s first official training: a mate’s certifi cate was key figures __________________________ 2 educational institution for seamen, required for admission to the sea the Mates’ School in Stockholm, was captain’s class, a pass as second engineer presentation ________________________ 3 established on 4 June 1658, following was needed for a fi rst engineer’s class a royal letter of command. For many and so on. The tuition lasted for seven years it was the only one, but later it to nine months. However, skippers and comments by the chairman was joined by the ‘lower navigational third engineers made do with three. and the managing director ___ 4 institutions’ in Visby and Karlshamn. The navigation schools became naval The next royal letter on the subject command schools, were converted to market review _____________________ 4 did not come until 7 April 1841, when university college level education in 1980 special navigation schools were set up and were whittled down to two loca- summary of income statements in Stockholm, Gothenburg, Gävle, tions, Kalmar and Gothenburg. Today and balance sheets _______________ 6 Malmö and Kalmar. Härnösand, Visby, an aspiring sea captain combines the Karlshamn, Västervik and Strömstad usual technology and seamanship with were added later. leadership. The tuition extends over administration report ___________7 In 1911 the Swedish Parliament four years of study, three in classrooms, reduced the number of schools to the on simulators and on exercise ships, income statement ________________ 8 original fi ve. Engineer training was and one practical year on commercial introduced into the navigation schools vessels. It consists of three principal at the same time, meeting a need which areas: ship propulsion, shipbuilding and balance sheet ______________________ 9 had long been felt by the maritime cargo handling and ship and shipping industry. The two parts, Navigation company organisation. The broadened capital adequacy ratio ________ 10 and Engineer, were each divided into syllabus today, in addition to naviga- three classes: sea captain, mate and skip- tion, seamanship and shipbuilding, also per and fi rst, second and third engineer includes radar, machinery and cargo cash flow analysis _______________ 10 respectively. Eleven subjects were taught handling, as well as labour law, the at the schools, including mathematics, law of the sea and economics. A pass notes ______________________________11-14 physics/mechanics, astronomical and in training as a sea captain in Sweden terrestrial navigation, shipbuilding, gives entitlement to command all types accounting and valuation mechanical engineering and seamanship. of ships anywhere in the world. In other principles ___________________________ 15 The requirements for admission to a words, someone with a sea captain’s navigation school were an ability to read certifi cate in his pocket is well suited to and write, but also service at sea. A pass any of the professions related to auditors’ report __________________ 15 in the class below was also required to shipping, both at sea and on the shore, be allowed to proceed to further at home and abroad. board of directors ______________ 16 Key Figures Swedish Ships’ Mortgage Bank ghghghgh2004 2003 2002 2001 2000 hghghghg Operating income, msek ghghghgh63.5 64.2 68.1 58.3 51.5 hghghghg Balance sheet total, msek 7,236.0 5,639.9 5,849.3 5,417.2 3,944.4 ghghghgh Reserve fund, msek hghghghg1,139.1 1,075.6 1,011.4 943.3 885.0 ghghghgh Profit level, per cent 1.0 1.1 1.2 1.3 1.4 hghghghg Return on equity, per cent ghghghgh5.9 6.3 7.2 6.6 6.2 hghghghg Solidity, per cent 15.7 19.1 17.3 17.4 22.4 ghghghgh Capital adequacy ratio, per cent hghghghg18.1 22.5 20.2 21.2 25.1 ghghghgh Number of employees 8 8 9 9 9 hghghghg ghghghgh hghghghg ghghghgh hghghghg ghghghgh hghghghg ghghghgh hghghghg ghghghgh hghghghg ghghghgh hghghghg ghghghgh hghghghg The photographer on the Vega Captain Louis Palander, 1842–1920 In 1868 he took part in the Spitzbergen prior to the expedition, and personally selected the expedition under the command of Baron von Otter, officers and crew. The expedition ship Vega was and in 1872 in Nordenskiöld’s attempt to reach the built in Bremerhaven as a whaler for Arctic waters. North Pole. So it was an experienced seaman and She was barque-rigged, had three masts, was 43 Louis Palander was born in Karlskrona polar explorer whom Nordenskiöld chose to take metres long and had a 60 horse-power steam in October 1842 and became a cadet at the age command of the steamer Vega for the 1878 attempt engine. With all the equipment the Vega had on of 14. Eight years later he became an officer in the to find the North-East Passage. Success in this board, it was realized that she was barely able to Swedish Royal Navy and went on the expeditions venture led to Louis Palander adding af Vega to his hold the coal needed to cope with the North-East of the corvette Gefle to the Mediterranean, Sierra name in 1880. Passage. Leone and Liberia. Palander was responsible for converting the Vega A smaller steamer, named the Lena after her first 2 Swedish Ships’ Mortgage Bank – presentation The Swedish Ships’ Mortgage Bank (the Bank) was Loans must be secured through balances with or guarantees established in 1929, with the task of facilitating the financing from banks or the State or collateral in ships. The collateral must of Swedish ship owners, and contributing to the rejuvenation fall within 70 % of the value of the ship as estimated by the Bank of the Swedish merchant fleet. (in special cases 80 %). Today, the Bank can also finance foreign-owned shipp ing Loans are provided in foreign or Swedish currency and with operations if there is a significant Swedish interest or influence. floating or fixed interest rates at the option of the borrower. The Bank does business on purely commercial terms, and in Interest rates are determined individually. competition with other credit institutions. Operations are financed primarily through promissory note Operations are governed by the Swedish Ships’ Mortgage loans. Borrowing is in principle subject to the same terms as Bank Act (SFS 1980:1097). The most recent amendment came lending with regard to currencies and fixed interest terms. into force on 1 July 1998 (SFS 1998:310). loans to smaller shipping companies the bank is subject to public law In certain cases, loans of up to 90 % of the vessel’s value can The Swedish State has provided a guarantee for the Bank’s be provided under the terms of a special ordinance. Preference operations. This guarantee amounts to MSEK 350. The Bank’s will be given to smaller shipping companies. reserve fund (currently MSEK 1,139) and the Swedish State guarantee are to be used to cover any losses. board for shipping support The Bank’s registered office is in Gothenburg. The Board The government has instructed the Board for Shipping Sup- – which consists of 7 Members and 7 Deputy Members – port to administer approved subsidies to Swedish shipping. The is appointed by the government.The term of loans may be up to Bank’s personnel also run the day-to-day operations of the Board 15 years. The Bank principally provides long-term loans against for Shipping Support. the security of Swedish or foreign ships. The crew of the Vega Enantschin The chieftain Menka Ankoklovsiak destination, was therefore built. She accompanied which necessitated an entire travelling laboratory. the Vega to the mouth of the River Lena, where she Excellent results were achieved, with several unique replenished the Vega’s coal supplies for the onward pictures from the long over-winter stay at Pitlekaj. journey. These tell us about the scientists on the expedition, On his expedition to Spitzbergen in 1864, the crew and the local fauna, but most importantly Nordenskiöld had experimented with the new wet- and most excitingly about the local Chukcher ethnic plate photographic technique. Palander too was group. an enthusiastic amateur photographer. He took When Palander took command of the Vega, he some 60 pictures using the wet-plate technique was a lieutenant. Later he become both an admiral during the Vega’s voyage, a complicated procedure and a minister of naval affairs. 3 Comments by the chairman and the managing director 2004 was one of the Swedish Ships’ An unchanged number of employees The work of the Board is running Mortgage Bank’s best years, although took the greatly increased volume in smoothly and co-operation with the profit was marginally down. Out standing their stride, with a high level of skill and Managing Director is excellent. The loans increased by 33 per cent, from precision. Productivity is therefore very Board has begun an assessment of its MSEK 4,610 to MSEK 6,125. We granted good and profit per employee is high. own efficiency and has been prompted loans amounting to MSEK 2,200 and The shipbuilding industry is enjoying to add greater depth to its work for the paid out MSEK 1,882. We did not have good times and is investing for the future. benefit of the Bank. any credit losses or doubtful credits. We are holding onto our market share of The reserve fund increased to MSEK around 18 per cent and are competing by Pehr G Gyllenhammar 1,139.Profit was maintained despite a offering a high level of service and good Chairman decline in interest income and a weak terms. Our solidity and capital adequacy dollar, which resulted in lower margins on ratio are both satisfactory, and permit Birgitta Wickenberg Karlsson Managing Director dollar loans converted to Swedish kronor.