HOME ONBOARD Our crew is key to success

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1 SHIPPING HOME ONBOARD Our crew is key to success THE FUTURE IS SUSTAINABLE

2 INTERVIEW Four questions for JONAS KLEBERG, CHAIRMAN OF THE BOARD our way shipping Published by Soya Group Editor-in-Chief & Publisher responsible under Swedish press law Richard Jeppsson Editorial production OTW Editors Sofia Lundgren, Pia Adolfsson Jansson, Marie Gladare Art Director & Layout Artist Martin Isaksson What are the main strengths of Wallenius Marine Ship Management and Ship Design of today? Our vast experience together with an uncompromised focus on environment in a broader framework of sustainability. Our Ship Management and Design operations have a forward-looking attitude where our pioneering spirit constitutes an enduring element. Ship Management and Ship Design & Newbuilding have developed several new interesting concepts within Wallenius Marine. Why is sustainability so important for Wallenius Marine as a supplier? Taken together, it is the only way forward and the very reason for us to remain in the industry. The potential for sustainable shipping is enormous. It is worth emphasizing that sustainability and digitalization empower each other, and they go hand-in-hand in the future of shipping. We continuously strive to push, and be part of, the development in the right direction. Cover photo: Jann Lipka Printer Trydells, Laholm ~ If you have any comments or questions related to Our Way, please ourway@soyagroup.com ~ Copyright texts and images in Our Way may not be republished without permission from the editor or publisher responsible. PHOTO: KARIN RÖSE How does that benefit the customers? This is both an easy and difficult area of discussion. Combined, the effect of upstream solutions, (i.e. cleaner fuel, electrification, wind- and solar power) and SOx, NOx and particles are significant. The shipping industry as a whole can do a better job informing about the potential and the relatively low cost required in reducing emissions. Corresponding landbased measures cost considerably more, primarily due to that their SOx, NOx and particle related emissions have already been reduced. In other words, the potential for truly sustainable shipping is greater than many realize and our customers can be certain of that we work continuously to reduce our emissions. Wallenius Marine ensure that their customers are future-proofed by remaining ahead of both global and local regulations. What are the future strategic areas for Wallenius Marine? We are constantly looking for partners and business adhering to the principles of sustainable shipping and we will continue to strengthen our competence and knowledge. We will continue to lead the way towards truly sustainable shipping! JONAS KLEBERG Chairman of the Board, Wallenius Marine ABOUT SOYA GROUP Soya Group is the collective name for a group of companies active within four main business areas: shipping, real estate, asset management and trotting. The group was founded in 1934 and the common denominator for all companies is that all business shall be carried out with a strong sustainable focus. Today, some 1,200 people work in Soya Group companies in Europe, the US and Asia. For information about how we handle your personal information, see contact/data-protection-policy/. If you wish to be removed from the Our Way distribution list, please send an to ourway@soyagroup.com. A GREEN MAGAZINE This magazine is produced in accordance with the Nordic eco-labelling system, the Swan. 2 OUR WAY SHIPPING

3 CONTENTS LIFE ONBOARD To feel at home away from home is key to the crew s well-being 10 GRAND DESIGN Ship designer Carl Fagergren on breaking new ground + LIFE (RE)CYCLE Our ships continue to live on long past their actual lifespan 12 SLOWER SHIPPING, BETTER SHOPPING Sustainable shipping is the future 15 SCRUBBERS VS LOW-SULPHUR FUEL Shipping stakeholders share their opinion 16 THE NEW GENERATION PureBallast 3 is even more efficient than its predecessors 17 IT VETERANS AT SEA Wallenius Marine IT has been connecting people for over 25 years 18 AHEAD OF THE GAME Wallenius Marine is a long-term front-runner in sustainability OUR WAY SHIPPING 3

4 DID YOU KNOW? BY GROUP COMMUNICATIONS Fun facts BIG DATA COLLECTED ONBOARD WITH WALLENIUS MARINE S PERFORMANCE MONITORING Since 2016, the amount of collected automatic data sent from the ships to the Stockholm office has increased to such an extent that it is now considered and treated as big data. Data is currently collected mainly from four onboard systems. Number of records Q1-10 Q MIN AVERAGE DATA (10^4) 1 HZ RAW DATA (10^6) Q1-11 Q3-11 Q1-12 Q3-12 Q1-13 HOW MANY LAPS AROUND THE GLOBE IN ONE YEAR? During 2017, 25 vessels managed by Wallenius Marine together sailed 4,762, kilometers. This equals almost 119 laps around the globe, in one year. DENMARK about WALLENIUS MARINE Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16 Q1-17 Q3-17 Q1-18 Q3-18 PHOTO: PER ENGSTRÖM WHAT S IN A VESSEL S NAME? Behind every name there is a story, and this is also true when it comes to Wallenius Lines vessels. The first ships received names after the cargo they carried, soya oil. In the late 1940s and for another ten years, the female members of the family loaned their names for those tankers. The first tanker was SOYA-Maria, named after founder Olof Wallenius mother. Olof Wallenius was a great music lover, and starting in 1941 all dry cargo vessels carried names after operas. The first vessel to receive an opera name was RIGOLETTO, and this was followed over the years by many other operas with well-known, easy to remember names that were the reason for the nickname The Opera Line. WHAT DOES IT TAKE TO FEED OUR CREWS ONBOARD 25 VESSELS FOR A WHOLE YEAR? EGGS 226,689 PCS BANANAS 7,983 KG POTATOES 8,489 KG ONIONS, YELLOW 9,252 KG RICE, JASMINE 26,826 KG SWEDEN MALAYSIA FINLAND POLAND SINGAPORE NORWAY CARROTS 4,859 KG TURKEY CROATIA LATVIA ROMANIA OUR CREWS ONBOARD REPRESENT MANY DIFFERENT COUNTRIES PHILIPPINES MYANMAR RED APPLES 3,033 KG ORANGES 3,577 KG PHOTOS: SHUTTERSTOCK 4 OUR WAY SHIPPING

5 WHAT DOES LOLO MEAN? LoLo Lift-on Lift-off The cargo was lifted on and off the vessel using a lifting crane. FIRST: m/s RIGOLETTO AND m/s TRAVIATA WHEN: 1955 LOADING CAPACITY: 290 CARS RoRo Roll-on Roll-off The cargo was driven onboard by its own engines. FIRST: m/s ANIARA WHEN: 1963 LOADING CAPACITY: 240 CARS An original 1966 Toyota Corona RT43 owned by Cargo System Design Manager Roger Palmqvist, Wallenius Marine. THREE QUESTIONS FOR... PHOTO: KARIN RÖSE PCC Pure Car Carrier A RoRo vessel built specifically to transport cars. FIRST: m/s DON JUAN WHEN: 1975 LOADING CAPACITY: 5,000 CARS PCTC Pure Car Truck Carrier A vessel with hoistable cargo decks to accommodate a cargo combined of cars, trucks and any other cargo to be rolled onboard. FIRST: m/v RIGOLETTO WHEN: 1977 LOADING CAPACITY: 5,500 CARS. In 2006, the PCTC vessels m/v AIDA and m/v OTELLO were delivered, each with a loading capacity of 6,700 RT43-units. LCTC Large Car Truck Carrier A LCTC vessel is a PCTC with a greater loading capacity. FIRST: m/v FAUST WHEN: 2007 LOADING CAPACITY: 8,000 RT43-UNITS HERO High Efficiency RoRo A Post-Panamax PCTC vessel that is shorter but wider. FIRST: m/v TITUS WHEN: 2018 LOADING CAPACITY: 8,000 RT43-UNITS WHAT S AN RT43 AND WHY IS IT IMPORTANT IN SHIPPING? RT43 is the model code for the 1966 Toyota Corona sedan version. In shipping, an RT43 is the same as a Car Equivalent Unit (CEU). This is a standard car measurement used to divide a vessel s total deck area to calculate how many units can fit onboard. The 6.39 m2 CEU is still in use by cargo designers and planners as the standard CEU to describe a vessel s maximum carrying capacity for cars. The Corona was a small car, but its impact on the history of auto shipping is still noticeable today. A FEW FUN FACTS ABOUT TITUS, THE FIRST HERO VESSEL The total cargo space is equivalent to 10 soccer fields 165,000 lashing holes in all cargo holds The main engine of 14,100 kwh is equivalent to 331 Scania V8 engines of 16.4 litres During its estimated 25 service years, TITUS will circle the globe about 100 times A full cargo of cars takes 2½ days to load and secure The propeller has 4 blades, weighs 32 tonnes and has a diameter of 7.3 metres VESSEL ELONGATIONS AT HYUNDAI VINASHIN SHIPYARD IN VIETNAM What do you do when you need more cargo space but haven t the time to build a new ship? You cut the vessel in half, place a 28-metre section in the gap and weld all pieces together. The process takes about one month instead of a two-year-long project of building a new vessel. In 2005, starting with m/v MIGNON, Wallenius Marine managed the elongation of five vessels, increasing each vessel s loading capacity by 1,300 cars or 20%. In total, Wallenius Marine oversaw the elongation of 12 vessels.... JOHAN MATTSSON, PRESIDENT OF WALLENIUS MARINE 1 What is the main challenge of a Ship Management and Ship Design company of today? An imminent cost focus. We design, build, manage, crew and run our customers vessels at highest performance standard with lowest possible total cost over the vessels lifetime. 2 What makes Wallenius Marine unique compared to other Ship Management and Ship Design companies? Wallenius Marine s advantage with experience from ship owning, building and running vessels is quite unique on the third-party Ship Management market. Vessel owners and operators with a fleet of five to 15 vessels will benefit greatly from our experience. 3 Fast-forward five or ten years, what role does Wallenius Marine have in the shipping industry then? We will then have presented the market with a vessel combining different sources of energy, focusing on fossil-free energy. We have played a strong role in and contributed to a quantum leap towards smart solutions for ocean-going vessels, taking safety as well as human aspects into consideration. OUR WAY SHIPPING 5

6 LIFE ONBOARD TEXT KARIN ANDERSSON PHOTO JONAS TOBIN COMPETENT CREW KEY to SUCCESS With the need to spend weeks carrying out often strenuous, monotonous and sometimes unlikable tasks, a competent, closely knit crew and an environment where people feel at home are essential. It is Wallenius Marine s firm belief that investing in further education and relaxing surroundings is what makes the crew go the extra mile. 6 OUR WAY SHIPPING

7 In the engine room of m/v TITUS, 25-year-old Jay-R Fajela picks up his walkie-talkie and answers a question from another crew member while checking a monitor. As 3rd Engineer, his main responsibilities are the auxiliary machineries connected to the main engine, such as boilers and separators, and managing the bilge and sludge systems. It s his first assignment onboard TITUS, and being new at the job, it s important for him to get along and work well together with his colleagues. Everyone onboard works together. If there s a problem, we solve it as a team, Jay-R explains. Working as 3rd Engineer is a tough and sometimes monotonous job and can mean many hours in a hot, greasy engine room. Hence, it s important for the crew to be able to really switch off and get well rested once off-duty. For Jay-R, this means that almost every evening, he watches a movie in the TV room together with the engine crew. He also likes to use the ship s gym or outside pool for some exercise, and once in a while the crew plays table tennis together. The crew onboard TITUS share most meals together. JAY-R FAJELA is a member of the highly skilled Swedish and Philippine crew onboard TITUS, manned by Wallenius Marine. The crew management service includes everything concerning the onboard staff, allowing the ship owner to focus on their core business. The dedicated crew management team assures that the crew hold all necessary certificates and have undertaken trainings according to international rules and regulations. Wallenius Marine also takes on the important responsibility to provide not only a safe and efficient working environment, but also a place where the crew can feel at home. After a long day s hard work, being able to relax is really valuable. Getting that opportunity onboard isn t something I take for granted, says Jay-R. > OUR WAY SHIPPING 7

8 LIFE ONBOARD 3rd Officer Roberto Avellanosa checks the compass. THE ATMOSPHERE IS GREAT ONBOARD, WE RE LIKE A BIG FAMILY IT IS LUNCHTIME on the ship on today s menu is a mix between Swedish and Filipino cuisine. The mess room is spacious and light, and conversations in different languages are held across the tables. 3rd Officer Roberto Avellanosa (who also happens to be the ship s pro bono barber) appreciates the multicultural atmosphere onboard: One of the best things about being a Wallenius Marine employee is that while we re from different countries and cultures, we all feel equal. Everyone can speak out and get their voice heard. Roberto heads back to his cabin, where he calls his wife and two young daughters via Skype. It will be another three months until he sees them the next time. Even though I m out at sea, I m always able to communicate with my family. And the Wi-Fi signal is strong no matter where you are on the ship, he says. ONE OF THE THINGS that makes these vessels managed by Wallenius Marine unique is the extra care about the interiors. The interior is very nice-looking with solid furniture in dark wood, green plants and plush couch pillows, but what is most noticeable is the Chief Cook Cezar Ramirez preparing a meal. original artwork that adorns the walls of the ship, purely for the crew s pleasure. Klara Andersson, currently 3rd Engineer on m/v FIGARO, has been a Wallenius Marine employee for ten years. She believes that the environment on the ships as well as the many common areas and large cabins, tailored to the needs of the crew contributes to everyone s well-being. Working at sea is demanding and challenging, so the quality of life onboard is really important for the crew, especially when you re away from home during such long periods at a time, she says. For Klara, it makes a huge difference. The atmosphere is great onboard, we re like a big family, she continues. And, I learn something new every day. All of Wallenius Marine s seafarers take part in further education on a regular basis. Klara Andersson, 3rd Engineer in m/v FIGARO. The ongoing upskilling guarantees that employees onboard are up to date with the latest regulations and standards, but also that they are continually improving their skills and adding to their competences for each year they stay at sea. WALLENIUS MARINE works hard with safety, both at sea and onshore. The crew onboard the Wallenius Marine managed vessel learn from one another and stay updated on safety matters through a regularly fleet-wide newsletter. Klara explains that every ship has monthly safety drills to ensure that everyone knows how to act in a crisis situation. But it starts with the small doings. Just as important as knowing what to do if there s a blackout or if someone falls overboard is the everyday actions such as wearing hearing protectors or other 8 OUR WAY SHIPPING

9 3rd Engineer Jay-R Fajela in m/v TITUS, on duty. Jay-R Fajela checks one of many monitors in the engine room. necessary safety equipment, she says. In all bathrooms, there is a sticker on the mirror that says: This is the person who is responsible for your safety today. A reminder to everyone onboard to stay focused. And being capable of making the right choices might just come down to being happy at work. A highly motivated staff is more efficient, competent and pays higher attention to safety, Klara concludes. IN THE ENGINE room, Jay-R Fajela is done working for the day. But before heading up to enjoy the evening, he checks the monitors one last time to make sure that everything is in order. We look out for each other onboard no one is left behind, he says, and adds with a smile: Happy crew, happy ship. The crew is keeping busy on one of the thirteen cargo decks. OUR WAY SHIPPING 9

10 DESIGNING THE FUTURE TEXT SOFIA ZETTERMAN PHOTO MAGNUS GLANS, UECC IN THE MIND of a SHIP DESIGNER Highly skilled naval architects, creative solutions and timely delivery have made Wallenius Marine the top choice when new RoRo tonnage is needed. One of the latest projects, building two low-emission LNG vessels, came to change the shipping industry. Carl Fagergren has had a passion for building boats for as long as he can remember. Since 1985, he has been devoted to professional ship design, the last decade at Wallenius Marine as Naval Architect and Project Manager. What I enjoy most is to be there from the first idea to the actual launch of a vessel, Fagergren says. Fagergren s first job at Wallenius was to draw the roadmap for how to reach Wallenius Marine s vision of truly sustainable shipping. The vision of sailing emission-free vessels has since been embraced by the whole Swedish shipping industry, as well as the rest of the world. MAJOR CHANGES ARE required to meet future environmental requirements, and those who don t have the courage, the innovativeness and the risk advancement to keep up will not be a part in tomorrow s shipping, Fagergren says. Being one of a handful of Naval Architects in Sweden with vast competence and hands-on experience, it was only natural that Carl Fagergren was in charge of the design of one of Wallenius Marine s latest high-profile projects: the design of the two LNG (Liquefied Natural Gas) sister ships Auto ECO and Auto ENERGY. The ships launched in 2016, on behalf of United European Car Carriers (UECC), the leading provider of short sea RoRo transportation in Europe. Carl Fagergren 10 OUR WAY SHIPPING

11 VINJETT IT S IMPORTANT TO DARE TO TAKE BIG LEAPS WHEN CREATING A NEW DESIGN JAN THORE FOSS, Head of Ship Management and Head of Newbuilding at UECC, explains the challenging order of the two LNG vessels: We needed modern and efficient Ice Class 1AS, Short Sea PCTC s with low emission footprints, compliant with the requirements for sulphur emissions in the Baltic Sea. The challenge was the LNG design and installation, but Wallenius Marine has great in-house competence. It took three years from idea to launch, which is extremely fast considering that no one had ever built High & Heavy LNG operated ships before. After a great many drawings and negotiating every detail, Jan Thore Foss Wallenius Marine s design team reached consensus with UECC and the chosen Chinese shipyard Nantong COSCO KHI Ship Engineering. The shipbuilding process went very well with timely design and production schedule, says a pleased Jan Thore Foss. Wallenius Marine is a professional company with highly skilled people, and a great cooperative team ensured good cooperation. THE BIG CHALLENGE was to fit an 800 m3 LNG tank onboard, a tank that occupies 4% of the deck area. Building a tank this large inside a vessel had not been done before. Also the liquefied natural gas has to be kept at -164 C, creating a great risk of ice building around the tank, an issue that was finally solved by creating an extremely dry climate to prevent condensation and ice formation. The challenge has changed the shipping industry. We were indeed inventing the wheel. We were pioneers when we developed these innovative LNG operated ships and they are still the only two LNG ships that are Pure Car and Truck Carriers (PCTC) says Carl Fagergren. AUTO ECO & AUTO ENERGY CAPACITY 3,800 cars SPEED 18.6 knots LENGTH 181 metres BEAM 30 metres DRAUGHT 8.40 metres BUILT TO 1A Super Finnish/ Swedish ice class OUR WAY SHIPPING 11

12 SUSTAINABLE SHIPPING TEXT SOFIA LUNDGREN, EMMA HOLMQVIST DEACON PHOTO SHUTTERSTOCK, KAIROS FUTURE, KTH, GU As consumers, we now scrutinize the manufacturing process of the things we eat, wear and drive, but when it comes to transporting our consumer goods, our knowledge isn t as good. What kind of demands we re going to make on transport in the future is an intriguing question, not easily answered. SLOWER SHIPPING, According to Jörgen Jedbratt, senior partner at international research company Kairos Future, the biggest challenge ahead is to find out how different microcultures define sustainability. The very conscious consumers regard sustainability as a key factor in their consumption, and to appeal to them it will be necessary for manufacturers to be able to show not only how their goods have been produced. The logistics behind the transportation Jörgen Jedbratt of the goods will also have to be transparent, if you want to market yourself as sustainable. By predicting the consumer s needs, the planning of transportation will look totally different in the future. ONE WAY TO GO could be to make slow steaming mandatory, i.e., operating ships at significantly less than maximum speed. Not 12 OUR WAY SHIPPING only does this save money on fuel, it lowers emissions too but of course also adds to the shipping time. Jakob Kuttenkeuler, professor of Maritime Robotics at KTH Royal Institute of Technology in Stockholm, shares the view that a slower speed at sea is necessary. The speed at sea is too high today. The ship resistance dramatically increases with velocity, and many ships travel at speeds which burn a lot of fuel. Until now, the fuel prices have been low enough for this practice to be profitable, and unfortunately it has taken its toll on the environment. CLEAN SHIPPING COALITION, CSC, is an international environmental organization which focuses on shipping issues and was granted observer status by the International Maritime Organization, IMO. In the CSC s report from 2018, calculations show the impact a speed reduction Jakob Kuttenkeuler BETTER SHOPPING would have on maritime emissions. The report says: One of the few measures that will deliver emission reductions in the shortterm is slow steaming. In order to effectively reduce emissions, speed regulations have to be mandatory and there has to be an enforcement system that deters ships from not complying. By the end of October 2018, CSC put forward a proposal to IMO, suggesting an international regulation on ship speed as a short-term strategy to fast-forward the industry s contribution to the global climate actions. ARE WE, AS consumers, willing to wait longer on our goods? The challenge is to get consumers to Johan Woxenius understand the relationship between their choices and the environmental impact associated with them. It s not always easy to get to grips with the freight transport system involved in the making and delivery of different products, says Johan Woxenius, professor of Maritime Transport Management & Logistics at the University of Gothenburg. I believe we ll see more transparency and more detailed information-sharing about the entire processing chain including transport s carbon footprint behind different products so that consumers can make informed shopping decisions.

13 THREE QUESTIONS FOR... PHOTO: OLOF HOLDAR... CARL-JOHAN SÖDER, DESIGN MANAGER, WALLENIUS MARINE WHEN GIVEN THE option to make an informed choice, Woxenius believes that an increasing number of consumers would be quite happy to wait a bit longer, knowing that their choice is kinder to the planet. Jörgen Jedbratt chooses to draw a parallel to how another industry has dealt with the same issue. Take the travel industry as an example; today it s possible to choose cleaner fuel for the airplane you re travelling with just by ticking a box, albeit with a somewhat higher price. If we, as consumers, can choose to contribute to better fuel for the ships and lower emissions, it surely will be desirable to do so. IN ORDER TO EFFECTIVELY REDUCE EMISSIONS, SPEED REGULATIONS HAVE TO BE MANDATORY 1 Is it important for the shipping industry to lower its emissions? It s important for all segments of the transportation business to lower emissions. Relatively speaking, shipping is a very effective means of transportation considering, for example, carbon dioxide emissions per transported tonne of cargo. However, we can all do more a reduction of emissions is always a reduction of emissions. 2 How actively is the shipping industry working today towards developing emission-free vessels? We see some progress in short sea transportation and on shorter routes. A number of actors are trying out power drive and hybrids of different capacities. It s a slower development for ocean transport, but an increasing number of serious actors are considering wind-assisted propulsion. 3 Is Wallenius Marine considering something similar? We have a long history of being front-runners and have no intention to stop being so. We look at several options for cost-effective and environmentally sustainable future vessel designs, and we evaluate different sources of energy focusing on fossil-free energy. OUR WAY SHIPPING 13

14 SUSTAINABLE SHIPPING TEXT SOFIA LUNDGREN & EMMA HOLMQVIST DEACON PHOTO JONAS TOBIN PHOTO: CARSTEN LUNDAGER SHIP MANAGEMENT CORNER- STONES OF SUCCESS DANISH SHIPPING company J. Lau- Claus Winter ritzen controls a Graugaard fleet of approximately 150 vessels, both bulk and gas carriers. In subsidiary company Lauritzen Bulkers, external management services are applied, and as Head of Fleet Management, Claus Winter Graugaard has a clear view of what s important when it comes to these kind of services. WHEN CONSIDERING THE key qualities in ship and crew management services, the investment in the human element and continuous training of the crew are very important cornerstones to succeed, and at Lauritzen we expect a good partner to make sure the crew keep a satisfactory competence level. Another important quality is how the ship management supplier actually treats and takes care of the crew. Of course, the maintenance and operational costs of the vessels also need to be competitive; hence, the ability to drive quality performance at the right price is a real balancing act. AT LAURITZEN, CONCERN for the environment is crucial, since we have very strict environmental policies. We expect a ship management supplier to meet regulatory expectations in all areas, such as dealing with issues like sulphur regulation and ballast water. OURS IS AN INDUSTRY that is under pressure to change. The ship management supplier must be able to ensure that our vessels are compliant and always prepared to meet all regulations. Of course, a large part of a well-working partnership is making it possible for both partners to gain from the collaboration it should bring more to the table, scale benefits and lead to development of the enterprise. Major advances in fuel efficiency have been achieved in recent years. Thinking sustainably? Wallenius Marine is one step ahead The robust new IMO sulphur regulations due to come into force in 2020 and the IMO strategy to mitigate climate change may seem daunting to some, but this is not a cause for concern at Wallenius Marine. CHANGE HAS TO HAPPEN ON A GLOBAL SCALE IN ORDER TO PROTECT THE ENVIRONMENT Wallenius Marine has made good progress in reducing sulphur emissions since the late 1990s and has advanced plans to reduce CO2 and even becoming emission-free. We welcome the new regulations with open arms change has to happen on a global scale in order to protect the environment and ensure sustainable shipping, says Per Tunell, Vice President and COO of Wallenius Marine. When looking at solutions, Wallenius Marine is aiming at upstream solutions, i.e., tackling the problem at the source of pollution. Major advances in fuel efficiency have been achieved during the years. The new HERO vessel, m/v TITUS, which boasts an estimated 15% less fuel consumption compared to the benchmark, represents a new era of car carriers. When it comes to reducing sulphur, Walle- Per Tunell nius Marine strongly supports the transition to cleaner fuels and emission-free alternatives. Wallenius Marine has designed and contributed to the world s first LNG-fuelled car carrier, built for UECC. Wallenius Marine is looking towards the future. I believe we ll see the advent of extensive electrification in short sea shipping, while going back to wind power will be the future for deep sea shipping, says Tunell. PHOTO: OSKAR OMNE 14 OUR WAY SHIPPING

15 SCRUBBERS vs LOW-SULPHUR FUEL QUESTIONS 1. IS THE IMO 2020 SULPHUR REGULATION IMPORTANT TO THE ENVIRONMENT? 2. WHAT WOULD YOU RECOMMEND TO A SHIP OWNER AS THE BEST SOLUTION TO MEET THE IMO 2020 SULPHUR REGULATION? 3. ARE SCRUBBERS AN OPTIMAL SOLUTION TO MEET REGULATIONS? COMMENTARY SWEDISH AGENCY FOR MARINE AND WATER MANAGEMENT FREDRIK LINDGREN, ANALYST At the Swedish Agency for Marine and Water Management, we consider using low-sulphur fuel to be the best solution when it comes to lower emissions. About scrubbers, we feel closed scrubbers ought to be used, since more and more research suggests that using open-loop scrubbers entails environmental issues. We don t want to speculate if scrubbers are going to be more or less frequently used in years to come, but we believe that stricter protocols and regulations will be enforced on open-loop scrubbers. Because by using them, all you do is move the environmental issue from the air into the sea. INTERNATIONAL CHAMBER OF SHIPPING SIMON BENNETT, DEPUTY SECRETARY GENERAL 1. Yes, the reduction of sulphur emissions will bring health benefits to populations in coastal areas where the majority of the world s people live, and the epidemiology indicates this will significantly reduce the incidence of respiratory illness that can shorten people s lives. Sulphur emissions are also a major cause of ocean acidification. 2. Operators that opt to use 0.5% fuels will need to make careful judgements as to the extent to which fuels will be available for every voyage they are likely to undertake. Companies should bear in mind that in the event that the only compliant fuel available in a port is 0.1% distillate, their ships will be required to use this in order to be compliant with MARPOL, regardless of any additional cost and inconvenience that might result from having to use or carry more than one type of compliant fuel. 3. The option to use scrubbers is something which ICS fought hard for when the MARPOL amendments were adopted in 2006, but whether they are optimal will have to be assessed by indvidual companies according to the trade in which they operate and the design and age of the ship. IMO EDMUND HUGHES, HEAD OF AIR POLLUTION AND ENERGY EFFICIENCY How do we meet the IMO 2020 sulphur regulation? One solution, open-loop scrubbers, has already been restricted by Belgium and Germany, and more countries may follow suit. We asked a number of stakeholders for their view on how to handle sulphur emissions. Can scrubbers do the trick? Or is low-sulphur fuel the better choice? 1. The sulphur regulation is hugely important for the environment. A study on the human health impacts of SOx emissions from ships, submitted to IMO s Marine Environment Protection Committee (MEPC) in 2016 by Finland, estimated that by not reducing the SOx limit for ships from 2020, the air pollution from ships would contribute to more than 570,000 additional premature deaths worldwide between 2020 and I cannot give recommendations on commercial decisions, which are going to be specific to the ship and its owner or operator. The forecast in the IMO-commissioned fuel oil availability study is that the majority of ships will go for using low-sulphur compliant fuel oil blends. Some may switch to LNG or other fuels and some may install exhaust gas cleaning systems, but the uptake of scrubbers is forecast to be a small percentage of the overall fleet. 3. Scrubbers are one way to meet the requirements. It s worth remembering that the flag state has to approve and accept the fitting of a scrubber as an equivalent means to comply with the regulation. Therefore, the shipowner does need to check with the flag state. Ships installing scrubbers to meet the new limit will need to plan for installation in advance of 1 January Shipowners may need to take into consideration limitations on the supply of the systems and the installation work that is required. PRECIOUS SHIPPING PC KHALID HASHIM, MANAGING DIRECTOR 1. IMO 2020 is very important for the environment. It will reduce the total amount of SOx released into the atmosphere by ships. This will reduce acid rain and other detrimental impacts on the most vulnerable portion of our population children and infants. 2. In my humble opinion, the simplest and most equitable method of meeting this regulatory requirement is to burn LSFO. 3. Scrubbers are old technology, which would simply transfer sulphur pollution from the air to the sea. They also have a host of other operational problems and costs. The biggest assumption is the spread between HSFO and LSFO prices in the future. No one knows what that will be, but spreadsheets have been made with various theoretical assumptions on this critical issue, which makes scrubbers seem like the best thing since apple pie. THE SIMPLEST AND MOST EQUITABLE METHOD OF MEETING THIS REGULATORY REQUIREMENT IS TO BURN LSFO NORWEGIAN SCHOOL OF ECONOMICS (NHH) ROAR OS ÅDLAND, (PH.D., MICS), SHIPPING PROFESSOR 1. Yes, though it is important to keep in mind that shipping and the maritime environment does not exist in isolation. For instance, if the sulphur that is removed, either using onboard scrubbers or desulphurization processing at the refinery, is not treated properly, then all we are doing is moving the problem from one area to another. 2. Provided that there will be sufficient availability of low-sulphur fuels post-2020, switching to such fuels is the easiest solution. Freight rates will increase to reflect the higher fuel costs, which means shipowners will be no worse off than they are now in terms of vessel earnings. 3. On paper, scrubbers look like the better investment. However, investing in scrubbers comes with greater risks than just switching fuels. They are subject to political risk (e.g., a possible ban of openloop systems by China), technical risks (breakdowns, the cost and ability to get rid of sludge), and most importantly the risk that future price differentials for high/low sulphur fuels will be lower than expected such that they are not economical. There is also a substantial risk that high-sulphur HFO will not continue to be available as widely as today when a large part of the market switches to low-sulphur fuels. OUR WAY SHIPPING 15

16 SUSTAINABLE SHIPPING TEXT EMMA HOLMQVIST DEACON PHOTO SHUTTERSTOCK & ALFA LAVAL CHEMICAL-FREE and COMPLIANT PUREBALLAST 3 TICKS ALL THE BOXES Stringent new IMO G8 regulations call for compliant ballast water treatment systems. PureBallast 3 is ahead of the curve with its globally approved solution. Modern times have brought larger ships, increasing speed and load size across vast bodies of water. But there are drawbacks. Thousands of invasive aquatic species spread via ballast water from one waterway to the next, infiltrating new territories and causing significant harm to the environment, and, potentially, human health. To tackle the problem, efforts began in 2004 to establish ballast water treatment regulations. By 2024, it will be compulsory for all ships to use ballast water treatments, with several stages of compliance to be met ahead of this deadline. PureBallast 3, the third generation of Alfa Laval s chemical-free ballast water Anders Lindmark treatment system, is the first solution to meet the revised G8 testing requirements, and it is type-approved by IMO as well as by the U.S. Coast Guard. We ve been developing ballast water treatment systems for over fifteen years, and the legislative and industry changes we ve been anticipating for so long are now upon us, says Anders Lindmark, MD of AlfaWall. We re pleased to be in a market-leading position with PureBallast 3 at a time when ship owners have to decide which water treatment system to opt for in order to be compliant with global regulations, continues Lindmark. THE LATEST ADDITION to the fivestrong PureBallast 3 family is the mighty 1,500 m3/h UV reactor, optimized for 50% more flow than the next size down (1,000 m3/h). It s carefully engineered to handle large ballast water flows with even greater efficiency, while enabling streamlined and cost-effective configurations for tankers and other types of vessels. We ve worked hard to strengthen our global service network, with the aim of providing support for our customers to be compliant with the PureBallast systems for the lifetime of the vessels, says Lindmark. We re in the process of extending our service division, with an extra 100 dedicated service engineers globally, to offer clients a high level of system-support whenever they may need it. WALLENIUS MARINE HAS used PureBallast on all of its newbuildings since the first generation was introduced on AIDA in Twelve years on, the third generation is successfully being installed on the new HERO-class vessels. PureBallast 3 is even more energy efficient than before, and provides improved control systems for easier operation onboard, says Urban Lishajko, Head of Ship Design, Newbuilding & Innovation. To have a treatment process free from added chemicals is very important to us, not only for the environmental footprint, but also for the associated costs, handling and working conditions onboard. Urban Lishajko Invasive species and their impact Thousands of invasive species are transferred daily via ballast water, causing damage to the environment in various ways often with social and economic impact, and sometimes affecting human health. The highly adaptable European Green Crab has displaced native crabs, and continues to deplete many other species in territories as far-ranging as southern Australia, South Africa, Japan and the US. 16 OUR WAY SHIPPING

17 TEXT EMMA HOLMQVIST DEACON & ISABELLE KLIGER PHOTO SAMUEL UNÉUS MARINE IT Marine IT providers must meet every requirement expected of regular IT departments and then some. Thomas Bergefall, Head of Wallenius Marine IT, explains what sets their offer apart. Sailing the globe with secure IT services from Wallenius Marine One of the biggest challenges for any IT team and a top priority at Wallenius Marine IT is to boost connectivity without compromising on security. With this in mind, Wallenius Marine IT offers separate networks for vessel operation, administrative systems and external suppliers. Secure communications are ensured with the integration of Firewall and IPS protection between vessel environment and the Internet. The system, which is compliant with marine cyber security standards set by Lloyds Register, includes malware and virus scanning across network, server and clients. We believe that the future is digital and it s our job to deliver what our customers want: increased efficiency, greater flexibility and the ability to securely access information and to communicate, regardless of where in the world our customers may be, says Thomas Bergefall, Head of Wallenius Marine IT. A true veteran in the field, Wallenius Marine IT has provided IT services for over 25 years, during which time the company has fine-tuned its offer to specifically suit its maritime clientele. Over the past two and a half decades, we ve gained specialist knowledge in our core business shipping. The level of expertise we ve gained can only be earned through hard work and experience, says Bergefall. Thomas Bergefall, Head of Wallenius Marine IT Clients opting for Wallenius Marine IT can expect a competitive and user-friendly solution, which provides and manages a vessel s entire IT infrastructure, with minimum work required onboard. In the same convenient vein, all software installations as well as tasks such as administration of users, authorization and permissions are completed at a single point, applied to any number of vessels and automatically deployed remotely. This handy setup helps WE BELIEVE THAT THE FUTURE IS DIGITAL to minimise the need to travel, hence cutting costs and saving time. Even the payment structure is simple clients are charged a fixed annual cost per vessel. To ensure hassle-free operations once the service is up and running, replacement hardware is pre-configured and ready to be connected by the crew. Remote support is available for all IT systems, and every aspect of the IT solution is managed by a skilled team boasting many years of marine solution, with the added bonus of a global support agreement with a worldwide reputable hardware provider. The IT service desk is our face to the world, and the part of our wider team that clients are most likely to deal with, Bergefall explains. And we also deliver complex services across IT technology, infrastructure, systems and applications. OUR WAY SHIPPING 17

18 THE ENVIRONMENTAL VISION PAST, PRESENT & FUTURE WALLENIUS MARINE ahead of rules FOR ALMOST 30 YEARS Environmental sustainability has always been a key cornerstone for Wallenius Marine and other companies in the Group. We were the first in Sweden, and among the first globally, to become ISO14001 certified, as early as In many ways, Wallenius Marine and its sister companies have been front-runners for the development of a more sustainable shipping environment, having taken responsibility in eliminating harmful substances long before regulations came into force MARPOL 73/78 Annex VI, Prevention of Air pollution from ships, came into force. It seek to minimise airborne emissions from ships (NOx, SOx) 2011 NOx rules allowance: 14.4 g/kwh for two-stroke, slowmoving marine diesel engines 2010 Revised Annex VI, with significantly tightened emissions limits, came into force on 1 July Legal requirements Wallenius Marine s actions 1998 A project to find new fuel alternatives is carried out using MDO instead of HFO. Average sulphur content: 0.66% over the year 1999 Low-NOx nozzles installed on all Wallenius newbuildings Auxiliary engines and boilers onboard Wallenius vessels are running on Marine Gas Oil (MGO) or Marine Diesel Oil (MDO) with a maximum sulphur content of 0.2% 2000 NOx emissions reduced by 20 30% due to the use of sliding valves on the main engine onboard Wallenius vessels 2004 World record in low sulphur content in the fuel (bunker oil) for ocean-going services. (Our Swedish flagged vessels have 1.16%) 2008 Between 1998 and 2008, Wallenius reduced NOx by 25% measured in g/kwh 2007 Wallenius reached a NOx reduction of 21% for our Swedish flagged vessels PMA, Performance Monitoring & Analysis, a ship reporting system with the aim to streamline vessel performance, is developed. By optimizing operations emissions are reduced 2011 NOx levels 13.2 g/kwh fleet-wide CO2 Carbon dioxide is a naturally occurring greenhouse gas that plays a key role in plant life and helps keep the earth warm. Increasing levels of CO2 in the atmosphere contribute to global warming. NOx NOx gases react to form smog and acid rain as well as being central to the formation of fine particles and ground-level ozone, which are both associated with adverse health effects. High concentrations cause inflammation of the airways. SOx Sulphur dioxide is a precursor to acid rain. When inhaled, SOx causes a number of respiratory symptoms in humans, including difficulty breathing, chronic respiratory disease and even death. 18 OUR WAY SHIPPING

19 2016 Owners with vessels coming to European ports need to have a ship-specific CO2 monitoring plan verified ahead of Europe s regional CO2 MRV scheme starting 2012 The global limit of sulphur content in shipping fuel is 3.5% for all areas outside of designated ECAs. Inside the ECAs, and at berth in EU ports, the maximum limit of sulphur content in fuel oil is currently 0.1% NOx limit for newbuildings operating in the USA is set to 3.4g/kWh 2018 Initial comprehensive IMO strategy on reduction of GHG (CO2) emissions from ships adopted Amendments to MARPOL Annex VI on data collection system for fuel oil consumption of ships entered into force on 1 March. Ships over 5,000 GT are required to monitor and report on each ship s CO2 level, fuel consumption, distance, time at sea, cargo carried, etc 2019 IMO releases study report on 0.1% sulphur limit in the Mediterranean Sea The entire coast of China out to 12 NM is a sulphur ECA By 30 April each following year, emissions reports must be submitted to the accredited verifier 2020 Implementation of the IMO s global cap on sulphur content in shipping fuel which limits all fuel used by ships to 0.5% 2021 A revised strategy on reduction of GHG (CO2) emissions from ships is expected to be adopted in 2023 to include short-, mid-, and long-term further measures, as required, with implementation schedules 2025 All new ships are required to be at least 30% more CO2 efficient than ships constructed before From 2005 to 2013, Wallenius CO2 emissions measured in g/tonne per km have been reduced by about 21% 2015 Between 2009 and 2015, Wallenius reduced NOx by 24% measured in g/kwh 2016 Two LNG vessels are designed, built and delivered to UECC. By using alternative fuels, emissions are lowered 2018 Reduced fuel consumption by 40,000 tonnes over 4 years The first HERO vessel is delivered with 15% less fuel consumption per transported unit 2021 Stricter rules regarding NOx levels for newbuildings operating in the Baltic Sea and North Sea 2020 Emission-free vessels are a part of a sustainable future. We plan to build and lead that future, and emission-free shipping concepts are being formed and tested PLANS FOR THE FUTURE Several options of cost-effective and environmentally sustainable vessels Large focus on fossil-free energy Smart solutions for ocean-going vessels Toxic-free antifouling paints The presence of water living organisms on a ship s hull is called biofouling. It contributes to the loss of speed and increases fuel consumption. Metals such as tin and TBT-based paints are effective antifouling agents, but are detrimental to living organisms and the surrounding environment. The entire Wallenius fleet was tin and TBT-free in Recycling When a ship reaches the end of its life cycle, almost every part of the ship can be recycled steel, machinery, equipment, fittings and furniture. In 2000, nine years ahead of legislation, the first Wallenius vessel was environmentally recycled. Ballast water Ballast water tends to transfer organisms to new areas of the world. The organisms often reproduce rapidly and weaken the growth of naturally occurring organisms in their new oceanic area. The first ballast water treatment equipment was installed onboard a Wallenius vessel in OUR WAY SHIPPING 19

20

21 LIFE CYCLE MANAGEMENT TEXT MARIE GLADARE ILLUSTRATION RICKARD GRÖNKVIST FROM DRAWING BOARD to RECYCLING When we say that our vessels have a lifespan of 20-something years, we re being truly modest. In reality, almost everything on our ships is recycled, once the vessel s days at sea have come to an end. Besides recycling the steel, we also make good use of all the data and knowledge we have gathered from the ship s many journeys. 1 6

22 1 DESIGN PHASE Basic requirements for the ship and a design concept are outlined in cooperation with the customer. We look at the actual operational performance of previous designs to incorporate improvements into the new design. We evaluate shipyards for building, create all technical specifications needed and have the design validated

23 4 2 BUILDING PHASE As the customer s representative, we set up our own site office at the carefully chosen and contracted shipyard. Our own staff oversee the entire building phase and work closely with the shipyard from keel laying to sea trial, launch and delivery. PHOTO: JANA RUMLEY PHOTO: RAPHAEL OLIVIER PHOTO: PETER JODIN 3 SEA TRIAL AND NAMING CEREMONY Before launch, the ever so important sea trial takes place. During this trial the ship and all systems and functions onboard are carefully and thoroughly tested. According to the ancient naval tradition, a ship is given its name by the breaking of a sacrificial bottle of champagne over the bow as the ship s name and a blessing are spoken out aloud. OPERATION 4 Most vessels have a lifespan of 20 to 25 years. During this time, many crew members set foot onboard the vessel, which makes about four journeys around the world per year in distance. Crew onboard and staff ashore make sure that the vessel is taken care of in the best possible way, carefully avoiding high speed in bad weather and caring for the vessel as for a living being. Technical Management ashore monitor day-to-day performance and arrange for maintenance if needed. Every five years a scheduled maintenance, in a carefully evaluated drydock, is performed and supervised by our Superintendents. If spare parts are needed for the vessel, the Procurement team make sure those are available in the next port, as well as whatever provision is needed for the upcoming legs of the journey. As the crew live onboard for three to nine months at the time, it is important they are prepared and properly trained for all events that may occur at sea and in ports. Our HR department in Sweden and Singapore work together to make sure our crew members stay updated and insured and that all certificates are in order for each crew member. Much of the training is done onboard in real life, while theoretical training is performed as Computer Based Training, available onboard all vessels as part of the impressive IT infrastructure set up by Wallenius Marine IT. PHOTO: JINO LEE 4

24 LIFE CYCLE MANAGEMENT PHOTO: RAPHAEL OLIVIER 5 RECYCLING Most often, the vessels designed by and run under our Ship Management regime are still in extraordinarily good shape when the time has come for retirement. We cooperate with approved recycling facilities specially focused on and certified for recycling of ships and they usually manage to recycle up to 98% of a vessel. Steel is reused for other purposes, and interiors are packed up and reused for other ships, depending on customer requests. 6 EVALUATION AND NEXT DESIGN During a ship s lifespan, we collect and analyse data for day-to-day operational improvements, but also to guide us in our next design project. We stay up to date with trends and market needs and frequently solve a problem that has not yet even become a known problem. Previous designs and knowledge from the entire life cycle is mixed and mingled with new standards and research results. Design after design. 4

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