THE FUTURE IS SUSTAINABLE

Our crew is key to success

SHIPPING

HOME ONBOARD

2 OUR WAY SHIPPING

INTERVIEW

Four questions for JONAS KLEBERG,

CHAIRMAN OF THE BOARD

JONAS KLEBERGChairman of the Board, Wallenius Marine

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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 compa-

nies in Europe, the US and Asia.

our way shipping

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 el-ement. Ship Management and Ship Design & Newbuilding have developed several new in-teresting concepts within Wallenius Marine.”

Why is sustainability so important for Wallenius Marine as a supplier?

“Taken together, it is the only way for-ward and the very reason for us to remain in the industry. The potential for sustain-able shipping is enormous. It is worth emphasizing that sustainability and digi-talization 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.”

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 land-based 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 re-alize and our customers can be certain of that we work continuously to reduce our emis-sions. 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 knowl-edge. We will continue to lead the way towards truly sustainable shipping!”

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For information about how we handle your personal information, see

https://www.walleniusmarine.com/contact/data-protection-policy/. If you wish

to be removed from the Our Way distribution list, please send an email to ourway@soyagroup.com.

OUR WAY SHIPPING 3

CONTENTS

17

10

6 LIFE ONBOARDTo feel at home away from home is key to the crew’s well-being

10 GRAND DESIGNShip designer Carl Fagergren on breaking new ground+ LIFE (RE)CYCLEOur ships continue to live on long past their actual lifespan

12SLOWER SHIPPING, BETTER SHOPPINGSustainable shipping is the future

15SCRUBBERS VSLOW-SULPHUR FUELShipping stakeholders share their opinion

16 THE NEWGENERATIONPureBallast 3 is even more efficient than its predecessors

17IT VETERANSAT SEAWallenius Marine IT has been connecting people for over 25 years

18AHEAD OF THE GAMEWallenius Marine is a long-term front-runner in sustainability

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4 OUR WAY SHIPPING

DID YOU KNOW?

about

DENMARK

FINLAND

CROATIA

LATVIA

MALAYSIA

NORWAY

ROMANIA

PHILIPPINES

MYANMAR

POLAND

SWEDEN

SINGAPORE

TURKEY

OUR CREWS ONBOARD REPRESENT MANY DIFFERENT COUNTRIES

EGGS226,689 PCS

WHAT DOES IT TAKE TO FEED OUR CREWS ONBOARD 25 VESSELS FOR A WHOLE YEAR?

RED APPLES3,033 KG

ORANGES3,577 KG

CARROTS4,859 KG

BANANAS7,983 KG

POTATOES8,489 KG

ONIONS, YELLOW9,252 KG

RICE, JASMINE26,826 KG

During 2017, 25 vessels managed by Wallenius Marine together sailed 4,762,082.79 kilome-ters. This equals almost 119 laps around the globe, in one year.

HOW MANY LAPS AROUND THE GLOBE IN ONE YEAR?

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”.

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.

10 MIN AVERAGE DATA (10^4)1 HZ RAW DATA (10^6)

0

Q1-10

Q3-10

Q1-11

Q3-11

Q1-12

Q3-12

Q1-13

Q3-13

Q1-14

Q3-14

Q1-15

Q3-15

Q1-16

Q3-16

Q1-17

Q3-17

Q1-18

Q3-18

200400600800

1000120014001600

Number of records

Fun facts

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OUR WAY SHIPPING 5

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

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 perfor-mance 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 dif-ferent sources of energy, focusing on fossil-free energy. We have played a strong role in and contributed to a quantum leap towards smart solu-tions for ocean-going vessels, taking safety as well as human aspects into consideration.”

THREE QUESTIONS

FOR...

... JOHAN MATTSSON,

PRESIDENT OF WALLENIUS

MARINE

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WHAT DOES LOLO MEAN?LoLo – Lift-on Lift-offThe cargo was lifted on and off the vessel using a lifting crane.

FIRST: m/s RIGOLETTO AND m/s TRAVIATA WHEN: 1955LOADING CAPACITY: 290 CARS

RoRo – Roll-on Roll-offThe cargo was driven onboard by its own engines.

FIRST: m/s ANIARAWHEN: 1963LOADING CAPACITY: 240 CARS

PCC – Pure Car CarrierA RoRo vessel built specifically to transport cars.

FIRST: m/s DON JUANWHEN: 1975LOADING CAPACITY: 5,000 CARS

PCTC – Pure Car Truck CarrierA vessel with hoistable cargo decks to accommodate a cargo combined of cars, trucks and any other cargo to be rolled onboard.

LCTC – Large Car Truck CarrierA LCTC vessel is a PCTC with a greater loading capacity.

FIRST: m/v FAUSTWHEN: 2007LOADING CAPACITY: 8,000 RT43-UNITS

HERO – High Efficiency RoRo A Post-Panamax PCTC vessel that is shorter but wider.

FIRST: m/v TITUSWHEN: 2018LOADING CAPACITY: 8,000 RT43-UNITS

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.

An original 1966 Toyota Corona RT43 owned by Cargo System Design Manager Roger Palmqvist, Wallenius Marine.

WHAT’S AN RT43 AND WHY IS IT IMPORTANT IN SHIPPING?

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.

VESSEL ELONGATIONS AT HYUNDAI VINASHIN SHIPYARD IN VIETNAM

FIRST: m/v RIGOLETTOWHEN: 1977LOADING 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.

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 surround- ings is what makes the crew go the extra mile.

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6 OUR WAY SHIPPING

TEXT KARIN ANDERSSON PHOTO JONAS TOBIN

The crew onboard TITUS share most meals together.

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 mem-ber while checking a monitor. As 3rd Engineer, his main responsi-

bilities are the auxiliary machineries con-nected 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.

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. Wal-lenius 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. >

THE ATMOSPHERE IS GREAT ONBOARD, WE’RE LIKE

A BIG FAMILY

LIFE ONBOARD

8 OUR WAY SHIPPING

IT IS LUNCHTIME on the ship – on today’s menu is a mix between Swedish and Fil-ipino 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

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 Ma-rine 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.

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 safe-ty 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 situa-tion. 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

3rd Officer Roberto Avellanosa checks the compass.

Chief Cook Cezar Ramirez preparing a meal.

Klara Andersson, 3rd Engineer in m/v FIGARO.

OUR WAY SHIPPING 9

necessary safety equipment,” she says.In all bathrooms, there is a sticker on the

mirror that says: This is the person who is re-sponsible 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 effi-cient, 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.

3rd Engineer Jay-R Fajela in m/v TITUS, on duty.

Jay-R Fajela checks one of many monitors in the engine room.

of a SHIP DESIGNERHighly 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 Walle-nius was to draw the roadmap for how to reach Wallenius Ma-rine’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 Nat-ural 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

DESIGNING THE FUTURE

10 OUR WAY SHIPPING

IN THE MIND

TEXT SOFIA ZETTERMAN PHOTO MAGNUS GLANS, UECC

VINJETT

footprints, compliant with the re-quirements 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, 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

Wallenius Marine’s design team reached consensus with UECC and the chosen Chinese ship-

yard Nantong COSCO KHI Ship Engineering.

“The shipbuilding process went very well with timely design and produc-tion schedule,” says a pleased Jan Thore Foss. “Wallenius Ma-rine 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 conden-sation 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.

IT’S IMPORTANT TO DARE TO TAKE BIG LEAPS WHEN CREATING A NEW DESIGN

OUR WAY SHIPPING 11

AUTO ECO & AUTO ENERGYCAPACITY 3,800 carsSPEED 18.6 knotsLENGTH 181 metresBEAM 30 metresDRAUGHT 8.40 metresBUILT TO 1A Super Finnish/Swedish ice class

Jan Thore Foss

BETTER SHOPPINGA

ccording to Jörgen Jed-bratt, senior partner at international research com-

pany Kairos Future, the biggest challenge ahead is to find out how different microcultures define sustainability.

“The very conscious con-sumers regard sustainability as a key factor in their consump-tion, and to appeal to them it will be necessary for manufac-turers to be able to show not only how their goods have been produced. The logis-tics behind the transportation 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 trans-portation 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

only does this save money on fuel, it lowers emissions too – but of course also adds to the shipping time. Jakob Kutten-keuler, professor of Maritime Robotics at KTH Royal Insti-tute of Technology in Stock-holm, 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 environ-mental organization which focuses on shipping issues and was granted observer status by the International Maritime Organi-zation, IMO. In the CSC’s report from 2018, calculations show the impact a speed reduction

would have on maritime emis-sions. The report says:

“One of the few measures that will deliver emission reductions in the short-term is slow steaming. In order to effectively reduce emissions, speed regulations have to be manda- tory and there has to be an enforcement sys-tem 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 contri-

bution to the global climate actions.

ARE WE, AS consum- ers, willing to wait

longer on our goods? The challenge is to get consumers to

understand the relationship between their choices

and the environmen-tal impact associated with them.

“It’s not always easy to get to grips

with the freight trans-port system involved in the making and

delivery of different products,” says Johan Wox-enius, 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.”

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,

TEXT SOFIA LUNDGREN, EMMA HOLMQVIST DEACON PHOTO SHUTTERSTOCK, KAIROS FUTURE, KTH, GU

12 OUR WAY SHIPPING

SUSTAINABLE SHIPPING

Jakob Kuttenkeuler

Jörgen Jedbratt

Johan Woxenius

BETTER SHOPPING 1 Is it important for the

shipping industry to lower its emissions?

“It’s important for all segments of the transportation business to lower emis-sions. Relatively speaking, shipping is a very effective means of transporta-tion 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 consider-ing wind-assisted propulsion.”

3 Is Wallenius Marine consid-ering 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.”

THREE QUESTIONS

FOR...

... CARL-JOHAN SÖDER,

DESIGN MANAGER, WALLENIUS

MARINE

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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 par-allel 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 con-tribute to better fuel for the ships and lower emissions, it surely will be desirable to do so.”

TEXT SOFIA LUNDGREN, EMMA HOLMQVIST DEACON PHOTO SHUTTERSTOCK, KAIROS FUTURE, KTH, GU

IN ORDER TO EFFECTIVELY REDUCE EMISSIONS, SPEED REGULATIONS

HAVE TO BE MANDATORYOUR WAY SHIPPING 13

14 OUR WAY SHIPPING

SUSTAINABLE SHIPPING

W allenius 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., tack-ling 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 com-

pared to the bench-mark, rep-resents a new era of car carri-ers. When it comes to reducing sul-phur, Walle-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 exten-sive electrification in short sea shipping, while going back to wind power will be the future for deep sea shipping,” says Tunell.

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.

Per Tunell

CHANGE HAS TO HAPPEN ON A GLOBAL SCALE IN ORDER TO PROTECT THE ENVIRONMENT

DANISH SHIPPING company J. Lau- ritzen controls a fleet of approxi-mately 150 vessels, both bulk and gas carriers. In subsidiary company Lauritzen Bulkers, external management services are applied, and as Head of Fleet Management, Claus Win-ter 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 man-agement services, the invest-ment in the human element and continuous training of the crew are very important corner- stones to succeed, and at Lau-ritzen we expect a good partner to make sure the crew keep a satisfactory competence level.

Another important quality is how the ship management sup-plier 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 environ-mental 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 pre-pared to meet all regulations.

Of course, a large part of a well-working partnership is making it possible for both part-ners to gain from the collabora-tion – 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.

TEXT SOFIA LUNDGREN & EMMA HOLMQVIST DEACON PHOTO JONAS TOBIN

Claus Winter Graugaard

CORNER-STONES OF SUCCESS

SHIP MANAGEMENT

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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 scrub-bers do the trick? Or is low-sulphur fuel the better choice?

NORWEGIAN

SCHOOL OF

ECONOMICS

(NHH)

ROAR OS

ÅDLAND, (PH.D.,

MICS), SHIPPING PROFESSOR

INTERNATIONAL

CHAMBER OF

SHIPPING

SIMON

BENNETT,

DEPUTY

SECRETARY GENERAL

PRECIOUS

SHIPPING PC

KHALID

HASHIM,

MANAGING

DIRECTOR

IMO

EDMUND

HUGHES,

HEAD OF AIR

POLLUTION

AND ENERGY

EFFICIENCY

SCRUBBERS vsQUESTIONS

COMMENTARY

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?

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 as-sessed by indvidual companies according to the trade in which they operate and the design and age of the ship.”

1. ”The sulphur regulation is hugely important for the envi-ronment. 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 2025.” 2. ”I cannot give recommenda-tions 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 2020. Shipowners may need to take into consideration limitations on the supply of the systems and the installation work that is required.”

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 vulnera-ble 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 technolo-gy, 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 assump-tion 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.”

1. ”Yes, though it is important to keep in mind that shipping and the ‘maritime envi-ronment’ 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 invest-ment. However, investing in scrubbers comes with greater risks than just switching fuels. They are subject to political risk (e.g., a possible ban of open-loop systems by China), techni-cal 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.”

“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.”

THE SIMPLEST AND MOST EQUITABLE

METHOD OF MEETING THIS REGULATORY

REQUIREMENT IS TO BURN

LSFO

SWEDISH

AGENCY

FOR MARINE

AND WATER

MANAGEMENT

FREDRIK

LINDGREN, ANALYST

LOW-SULPHUR FUEL

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 compli-ance to be met ahead of this deadline. PureBallast 3, the third generation of Alfa Laval’s chemical-free ballast water

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 bal-last water treatment systems for over fifteen years, and the legislative and industry chang-es 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 regula-tions,” continues Lindmark.

THE LATEST ADDITION to the five-strong PureBallast 3 family is the mighty 1,500 m3/h UV re-actor, optimized for 50% more flow than the next size down

(1,000 m3/h). It’s carefully en-gineered 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 ser-vice 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 when-ever they may need it.”

TICKS ALL THE BOXES PUREBALLAST 3 CHEMICAL-FREE and COMPLIANT –

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 some-times 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.

SUSTAINABLE SHIPPING TEXT EMMA HOLMQVIST DEACON PHOTO SHUTTERSTOCK & ALFA LAVAL

16 OUR WAY SHIPPING

Anders Lindmark

Urban Lishajko

WALLENIUS MARINE HAS used PureBallast on all of its newbuildings since the first generation was introduced on AIDA in 2006. Twelve years on, the third generation is success-fully 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, Newbuild-ing & Innovation. “To have a treatment process free from added chemicals is very im-portant to us, not only for the environmental footprint, but also for the associated costs, handling and working condi-tions onboard.”

MARINE IT

OUR WAY SHIPPING 17

One of the biggest challenges for any IT team – and a top priority at Wallenius Marine IT – is to boost connectivity without com-promising on security. With

this in mind, Wallenius Marine IT offers separate networks for vessel operation, ad-ministrative systems and external suppliers. Secure communications are ensured with the integration of Firewall and IPS protec-tion 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 informa-tion 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 experi-ence,” says Bergefall.

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 min-imum 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

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 repu-table 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,” Berge-fall explains. “And we also deliver complex services across IT technology, infrastruc-ture, systems and applications.”

Sailing the globe with secure IT services from Wallenius Marine

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.

WE BELIEVE THAT THE FUTURE IS DIGITAL

Thomas Bergefall, Head of Wallenius Marine IT

TEXT EMMA HOLMQVIST DEACON & ISABELLE KLIGER PHOTO SAMUEL UNÉUS

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20 11

1998A project to find

new fuel alternatives is carried out using MDO

instead of HFO. Average sulphur content: 0.66%

over the year

1999Low-NOx nozzles

installed on all Wallenius new-

buildings

Auxiliary engines and boilers onboard Wallenius vessels are

running on Marine Gas Oil (MGO) or Marine Diesel Oil (MDO) with a maxi-mum sulphur content

of 0.2%

2000NOx emissions

reduced by 20–30% due to the use of sliding

valves on the main engine onboard

Wallenius vessels

2004World record in low

sulphur content in the fuel (bunker oil) for ocean-going

services. (Our Swedish flagged vessels

have 1.16%)

2006MARPOL 73/78

Annex VI, Prevention of Air pollution from ships, came into force. It seek

to minimise airborne emissions from ships

(NOx, SOx)

2007Wallenius reached a NOx reduction

of 21% for our Swedish flagged

vessels.

2008Between 1998

and 2008, Wallenius reduced NOx by 25% measured

in g/kWh

2009PMA, Performance

Monitoring & Analysis, a ship reporting system with

the aim to streamline vessel performance, is developed.

By optimizing operations emissions are

reduced

2010Revised Annex VI, with significantly

tightened emissions limits, came into force on 1 July

2011NOx levels 13.2 g/kWh fleet-wide

2011NOx rules allow-

ance: 14.4 g/kWh for two-stroke, slow-

moving marine diesel engines

WALLENIUS MARINE ahead of rules FOR ALMOST 30 YEARSEnvironmental 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 1998. 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.

Wallenius Marine’s actions

Legal requirements

THE ENVIRONMENTAL VISION – PAST, PRESENT & FUTURE

18 OUR WAY SHIPPING

CO2Carbon 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.

NOxNOx 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.

SOxSulphur 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.

20 11 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

2012The 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%

2013From 2005 to 2013,

Wallenius CO2 emissions measured

in g/tonne per km have been reduced by

about 21%

2015Between

2009 and 2015, Wallenius reduced

NOx by 24% measured in g/kWh

2016Two LNG vessels

are designed, built and delivered to UECC.

By using alternative fuels, emissions

are lowered

NOx limit for newbuildings

operating in the USA is set to

3.4g/kWh

2016Owners 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

The first HERO vessel is delivered with 15% less fuel consumption per transported unit

2018Reduced fuel

consumption by 40,000 tonnes

over 4 years

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

2018Initial comprehen-sive IMO strategy on reduction of

GHG (CO2) emis-sions from ships

adopted

By 30 April each following year,

emissions reports must be submitted to the accredited

verifier

The entire coast of China out to 12 NM is a sulphur ECA

2019IMO releases

study report on 0.1% sulphur limit

in the Mediter- ranean Sea

2020Emission-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

2020Implementation of

the IMO’s global cap on sulphur content in shipping fuel which

limits all fuel used by ships to 0.5%

2021Stricter rules

regarding NOx levels for newbuildings

operating in the Baltic Sea and

North Sea

2021A 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

2025All new ships

are required to be at least 30% more CO2 efficient than ships constructed

before 2013

OUR WAY SHIPPING 19

Toxic-free antifouling paintsThe 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 2000.

Ballast waterBallast 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 2003.

RecyclingWhen 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.

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

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.

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LIFE CYCLE MANAGEMENT TEXT MARIE GLADARE ILLUSTRATION RICKARD GRÖNKVIST

DESIGN PHASEBasic requirements for the ship and a design concept are outlined in coop-eration 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.

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BUILDING PHASEAs the customer’s representative, we set up our own site office at the careful-ly 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.

SEA TRIAL AND NAMING CEREMONYBefore 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 cham-pagne over the bow as the ship’s name and a blessing are spoken out aloud.

OPERATIONMost 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 mainte-nance, 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 on-board 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.

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RECYCLINGMost often, the vessels designed by and run under our Ship Management regime are still in extraordinarily good shape when the time has come for re-tirement. 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.

EVALUATION AND NEXT DESIGNDuring 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 knowl-edge from the entire life cycle is mixed and mingled with new standards and research results. Design after design.

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