venture 3 2011 - Wallenius Wilhelmsen Logistics

Flexible fleet
New WWL ships
will improve
efficiency
Galveston port
Handling heavy
equipment in Texas
80%
of energy
could be
renewable
by 2050
“We’ve had
a long-term
approach
from the
outset”
wallenius wilhelmsen logistics
magazine for customers
issue 3/2011
Thomas Wilhelmsen,
Group CEO of the
Wilh. Wilhelmsen
Group
Moving energy
The challenges of
shipping gas turbines
Page 6
ON THE WAY up for
John deere
Page 8
venture
03.2011
CONTACT
Venture no 3 september 2011
Published by Wallenius Wilhelmsen
Logistics AS, Box 33, N-1324
Lysaker, Norway
Editor Cathrine W. Horn
Publisher responsible under
Swedish press law Anna Larsson
Editorial production Tidningskompaniet,
Stockholm
Environmental care This magazine is
­produced in accordance with the Nordic
­ecolabelling system, the Swan.
Front cover Paolo Fridman
Next issue December 2011
Copyright Texts and images in Venture may
not be republished without permission from the
editor or publisher responsible.
Printer Trydells, Sweden
WWL contact details:
Region Americas
+1 201 307 1300
Region Asia
+81 3 6858 8711
Region Europe
+46 8 772 0800
Region Oceania
+61 3 8605 8000
If you have any comments related to Venture
or questions about subscriptions, please email:
[email protected]
CONTENT
8
Latin success
A new technical services and SCM agreement has made WWL responsible for John Deere’s
port-to-factory handling in Brazil. By streamlining its processes, WWL is enabling John Deere to
save both money and time on the fast-growing Latin American market.
6 Mighty gas turbines
Weighing 70 tonnes and coming with 30
boxes of equipment, these power units are
no trouble for WWL.
14 Setting the standards
From underwater noise to ballast water
management, the IMO has been overseeing
shipping issues since1959.
15 New security rules
WWL draws on its global experience as
stricter regulations seek to ensure the
security of cargo headed to EU ports.
16 Energy trends
WWL identifies five key energy trends,
including slower nuclear growth, cleaner
coal, and increased use of shale gas.
2 venture 3 2011
18 Texan style
Visit one of WWL’s newest facilities in
Galveston, Texas.
20 Flexible fleet
By the end of 2012, WWL will have11
new state-of-the-art ships in its service.
26 Mexican adventure
A Belgian photographer discovers Mexico
in her Volkswagen Beetle named Pablo.
EDITORIAL
Moving with the times
12
150 years with WW
The Wilh. Wilhelmsen Group, one of WWL’s owners, celebrates its
150th anniversary this year. Take a look back to when it all began.
As the world around us continues to evolve, change – and
adapting to it – has become part of our daily life. This year one
of our shareholders, Wilh. Wilhelmsen Group, is celebrating its
150th anniversary. In this issue of Venture, we catch up with its
CEO Thomas Wilhelmsen to look back over some of the challenges and opportunities our group has faced over the years. Lessons
and experience which will help us all face the next 150 years!
Inside the magazine, you can read about how our factory-todealer solution has helped John Deere to gain better control over
their supply chain in Brazil, helping them reduce time and costs
in their logistics process, to achieve their strategy to grow in
Latin America.
Working in a sustainable manner and reducing industry’s
impact on the environment has always been top of the agenda
for WWL. At the end of the day, we all want to do business with
people and companies that share a common understanding of
the importance of sustainability.
Our global network and vessels connect key energy producing and consuming countries worldwide. We also transport
power generation equipment – from 144 to 380-tonne turbines –
for key customers. Inside, you can read about how we work with
Solar Turbines to ship their state-of-the-art turbines across the
globe. Handling equipment like this has not only given us experience in transporting this type of cargo, but has also inspired us
as to how we, too, can run our operations more efficiently, not
just by investing in more energy-efficient vessels, but also by
reducing our energy usage on land and at sea. While energy will
always be crucial for global economic growth, it’s clear that we
need to work more efficiently, and with “cleaner” energy sources
in the future.
I hope you enjoy this issue of Venture!
24
Rail is the future
No longer seen as an obsolete, slow-growth industry – in this age
of environmental awareness, rail transport is back.
arild B. Iversen
President & ceo,
Wallenius Wilhelmsen Logistics
venture 3 2011 3
network update
WWL and John Deere give Mississippi
River an X-Stream clean up
WWL recently teamed up with its customer John Deere to remove 70 tonnes of
waste from the shores of the great Mississippi River in the US. For the sixth consecutive year, WWL and John Deere participated in the Quad Cities X-Stream Clean-up,
organised by Living Lands & Waters, an
organisation that patrols North American
rivers, cleaning up the tonnes of debris that
are dumped into them each year.
“WWL and John Deere participate in the
event together as a show of our mutual concern for the environment and to demonstrate
how our business relationship can support
these kinds of efforts,” says Inna Getselis,
Manager Corporate Affairs, WWL Region
Americas.
The 125 volunteers were also asked
to sort the materials into recyclable and
non-recyclable piles. In just three hours, 36
tonnes of waste were separated, of which
70 percent was found to
be recyclable, while only 11
tonnes went to landfill.
“It wasn’t the most
pleasant thing I’ve ever done
but it felt really good to have
been a part of keeping that much
trash out of a landfill,” says Doug
Peterson, WWL’s Corporate Account Manager for John Deere.
news in brief
VSE expands in Eastern
Europe
WWL is establishing two new
offices in Eastern Europe. The two
new offices will open in Istanbul,
Turkey, and Tbilisi, Georgia, later
this year.
“These new offices will provide
total logistics solutions to the
Turkish and Caucasian markets,
as well as the Commonwealth of
4 venture 3 2011
Independent States,” says VSE’s
CEO, Andrew Bauer.
WWL earns spot on Inbound
Logistics’ G75 green list
for second year running
WWL has once again been selected by Inbound Logistics Magazine
as an environmental leader in the
Ocean segment. Every year, this
leading supply chain and logistics
management publication issues a
list of the transport and logistics
companies that are leading the
way in terms of environmental
initiatives.
The so-called G75 list enables
Inbound Logistics to give the
“green light to supply chain visionaries who every day demonstrate
their commitment to sustainability.”
New policy reaffirms
WWL’s quality pledge
WWL’s new Quality Policy reflects
its mission and commitment to
maintaining the highest quality
Q&A
Supporting
growth in India
WWL strengthens fleet
with MV Parsifal
The second Mark V vessel, the
MV Parsifal, was delivered at the
end of August. The 265-metre vessel offers a cargo volume of 138,000
cubic metres over six fixed and
three hoistable decks.
“Our 2011 newbuilding programme
means better service, more options
and more capacity for our customers,” says CEO Arild Iversen.
WWL’s owners have ordered four
of these pioneering new vessels
from Mitsubishi Heavy Industries
in Nagasaki, Japan, with the third
and fourth scheduled for delivery
in 2012.
QUALITY AT HEART
OF BUSINESS
WWL has received two awards
from the American Association of
Railroads (AAR). One award was
for its continuous improvement at
the Toluca, Mexico, operation with
Kansas City Southern, a Class I U.S.
Railroad; the second award is for
the highest score in the industry
at the Honda in-plant facility in
Lincoln, Alabama.
The awards were presented in
June at the AAR’s Damage Prevention and Freight Claim Annual
Conference in New Orleans.
“These awards are a tribute to
WWL’s dedication to operational excellence and continuous improvement,” says Alex Meza, Director
General for WWL Vehicle Services
Mexico. “Congratulations and a
special thanks to the Toluca and
Lincoln teams.”
standards in all its processes and
services. The policy will support
both the application of WWL’s Quality Management
System and full
compliance with
the standards of
ISO 9001:2008.
“WWL’s objectives for quality
are clear – we
deliver what we have promised
or better,” says WWL’s CEO Arild
Iversen. “Our brand and reputation
are that of a
premium logistics provider
and that’s the
image we need
to live up to in
the eyes of our
customers.”
Gur-Prasad Kohli recently began his new job as Head of
WWL India. He spoke with Venture about about the logistics industry and India’s bright future.
What experience do you bring to
this role?
“I have been in shipping for 30 years – in
various capacities as a seafarer, ship manager, agent/freight forwarder and Head of
the Philippines and Hong Kong.”
What is your vision for the Indian
market?
“India is a growing economy. There is an
undeniable demand for infrastructure and
consumer goods that cannot be ignored
or turned back, and this brings tremendous opportunities for logistics players that are efficient and can
offer a complete SCM solution. And the whole region is a growing
consumer and industrial market, so India is consequently becoming
a hub for manufacturers of autos, heavy rolling equipment and wind
turbine generators. Obviously, India stands to make tremendous
gains from global trade. Our vision is to help Indian manufacturers
reach domestic and global markets, and help overseas manufacturers efficiently reach Indian markets.”
How can WWL support customers in India?
“We seek to understand the needs of our customers and offer
them a complete end-to-end solution, for factory to dealer or factory
to site. This means identifying the correct partners and investments
in India to facilitate long-term relationships. We will develop a product in India that can be sustained with both inbound and outbound
volumes, for cars as well as High & Heavy cargo.”
How do you like living in India?
“I have returned home after nearly 11 years outside the country,
and I am enjoying the experiences, especially the food. There has
been a lot of positive change in the country in terms of a younger,
well-educated and growing middle class that can afford cars and
independent housing, and is increasingly unwilling to accept poor
infrastructure and corruption – and these are drivers for change.”
What are you looking forward to most in your new job?
“India is becoming a manufacturing and export hub for the Automotive and heavy equipment sectors, and as a result large investments are being made for developing infrastructure – in India as well
as South Asia. This will create many, many exciting opportunities for
manufacturers, and WWL will grow to support them. I am looking
forward to being part of that growth story.”
Chad Henderson
venture 3 2011 5
IN THE CARGO
Moving gas
turbines like
clockwork
Global demand for energy continues to rise
and industrial gas turbines play a vital role in
the development of oil, natural gas and power
generation projects around the world. These
products also have other applications such as
creating clean power for manufacturing chemicals, pharmaceuticals, and food products.
In this highly competitive industry, Solar Turbines
is a world leader with specialist skills developed from
the early days of jet propulsion and the aerospace industry. Headquartered in San Diego, California, Solar
Turbines sells and services its products from over 30
worldwide locations and is one of the largest exporters in the United States, with more than 70 percent of
its products being sold abroad.
One of the key factors in Solar Turbines’ global
success is its focus on quality through a “Six Sigma”
culture of continuous improvement with a clear focus
on customer satisfaction and business success.
Working within this culture, Wallenius Wilhelmsen
Logistics (WWL) has recently secured three important
“The success of this
project has been
down to a high level of
global cooperation”
contracts to ship turbines out of the US to Solar
Turbines’ customers around the world.
Gia Merrill, WWL Account Executive, says working with Solar Turbines enables the WWL team to
demonstrate the quality of its processes and also the
flexibility of its logistics solutions.
“These cargoes are not only large and heavy but we
also have to coordinate shipments from two different loading ports to arrive at the end customer, on
one ship, on time and within a quality-driven business
culture,” she says.
Solar Turbines manufactures its core turbine power
units in San Diego and they are then transported by
road trailer to Long Beach, California, as the nearest
6 venture 3 2011
port of loading. Meanwhile, a second key element
of the cargo, the power control room, is sourced out
of Houston, Texas, and loaded on board a vessel in
Galveston on the Gulf Coast.
Both major components , and all the ancillary
parts, need to meet in Manzanillo, Panama, before being loaded together on a single vessel bound for the
final destination.
“All these parts, maybe about 30 total pieces, are
going to the same place and they need to arrive at the
same time,” explains Merrill. “We need to find suitable
vessels, sailing at the right times, based on the production schedules we have been given, to combine in
Manzanillo. It sounds relatively easy but, weighing in all
the factors, it can get a little crazy at times!”
Solar Turbines’ commitment to quality means its
own appointed in-house surveyor is required to be present at all stages of the load and discharge to ensure
all the parts are there and to check the safety of the
cargo for the next leg of the journey.
“The challenge with loading the Solar cargo is
primarily one of weight,” explains Merrill. “The last
mobile power unit we shipped was around 70 tonnes
and there are three or four of those in each shipment.
Then there are the 30 or so boxes of ancillary equipment which need to go with them.”
While the ancillary equipment can be fork-lifted, the
heavy power units and control rooms are shipped and
loaded using custom-built RoRo trailers supplied by
Solar. Although these are ideal for WWL vessels, their
size and length – a typical trailer is between 20 and 29
metres in length and the cargo up to 4.8 metres high
– means extra care has to be taken to avoid dragging
on the ramps.
And, of course, the quality processes in place at
the port of load also have to be followed at discharge,
whether in Australia or the Middle East.
“The success of this project really has been down
to a high level of global cooperation within the Solar
and WWL teams,” concludes Merrill. “As far as we’re
concerned, Solar is looking for a quality service; we’re
working with them and that’s what we provide.”
Rupert SAUNDERS
ABOUT SOLAR TURBINES
Solar Turbines, a subsidiary of Caterpillar, is the
world’s leading manufacturer of industrial gas
turbines in its size range. Solar Turbines’ products include gas turbine engines, gas compressors, and gas turbine powered compressor sets,
mechanical-drive packages and generator sets.
Its products play an important role in the development of oil, natural gas and power generation
projects around the globe.
The company has more than 7,500 employees
worldwide with decades of experience working
as a global team.
The group has more than 13,900 units operating in 98 countries.
SEAMLESS JOURNEY John Deere
8 venture 3 2011
SCM IN
BRAZIL
With ambitious expansion plans for Latin America, John
Deere has turned to WWL to help it streamline its logistics
processes and improve efficiency by implementing a
complete port-to-factory solution.
WORDS Rupert saunders
PHOTOs Paolo FRIDMAN
venture 3 2011 9
SEAMLESS JOURNEY John DEERE
R
apid sales growth in South America has
resulted in a major review of logistics
and other business processes for leading
agricultural, construction and land equipment manufacturer, John Deere.
Just two years ago, the company’s revenue from its Latin American operations was $1.5bn.
Now it is targeting $3bn for 2011 and hopes to reach
$4bn by 2014. Most of that business will come from its
main market, Brazil.
In response, John Deere is working with Wallenius
Wilhelmsen Logistics (WWL) on a strategy in Latin
America that will streamline processes, improve
reporting and introduce efficiencies to save both costs
and time.
The key to its success is a new technical services
and supply chain management (SCM) agreement that
makes WWL responsible for all aspects of port-tofactory handling for John Deere in Brazil.
“We recognised that we needed to look at our logistics processes and integrate our business partners
into them,” explains Regis Tiecher, Regional Logistics
Manager, John Deere Brazil. “The operational benefits
10 venture 3 2011
are clear: WWL has the know-how and the right people
to help us design the processes and then implement
them. They are the experts in this kind of business.
“By taking on the SCM responsibility, WWL can lead
other partners and streamline collaboration through
the outbound supply chain. Cost saving is just part of
it, but it’s mainly about the strategy and partnership
approach. Let’s sit down, share what we need and create
the most efficient solution at the most effective cost.”
The starting point for the project was a change of
handling port for John Deere products arriving in
Brazil, from Vitoria to Santos. This not only gave increased capacity and better customs clearance but also
opened up the possibility of making use of the bonded
Free Trade Zone at Santo Andre, some 80 kilometres
from the port.
Previously, John Deere was paying local duty on all
its equipment imported through Brazil even if it was
not eventually sold there. By making use of the Free
Trade Zone, the equipment can be stored “duty-free”
until its final destination is clear and it can then be
exported or sold locally.
“Cost
saving
is just
part of
it”
The WWL team in São Paulo:
(from left) Cristina Skura, Analist Supply
Management; Erika Macedo, Manager
Supply Chain Management and Fabio
Mello, Director Commercial South America
The success of these two projects highlighted the
benefits of a fully integrated logistics solution with
technical services and SCM. It was a contract that
WWL won against stiff competition.
“Today we handle everything from tracking the
initial ocean cargo, through the port of entry and on
to the customer, the John Deere factory at Catalão or
the Free Trade Zone,” says Fabio Mello, South America
sales director for WWL.
“This includes terminal and technical services at
Santos and Rio Grande, customs clearance, inventory management, storage and management of the
bonded area. We also coordinate all the local trucking
movements and work with the shipping brokers. It’s a
one-stop shop.”
This “one-stop shop,” with one point of contact
within WWL for the whole supply chain, has made life
easier for John Deere, according to Tiecher.
“There are a lot of partners involved in the logistics
chain and this gives us a leader in the process,” he
explains. “It means we can focus on the management
without having to worry about the execution.”
A further benefit is the transparent reporting
system that WWL has implemented across the supply
chain. Whereas previously John Deere could not track
its equipment through the process, now there is full
visibility from vessel loading (even with other carriers)
to end delivery.
With tracking comes performance measurement
and the opportunity to improve efficiency along each
step of the journey.
“Time is money,” says Mello. “When we track, we also
measure and that means we know where to focus in the
supply chain to save money. I see this as one of the
major benefits of the SCM concept for them in the future.”
ABOUT JOHN DEERE
John Deere is a world leader in developing and delivering innovative products
of the very highest quality for those who cultivate, harvest and transform the
land. The John Deere portfolio of businesses includes agricultural and construction equipment, turf and forestry equipment, and support for businesses
including financial services, power systems, parts services, and intelligent consultancy solutions. John Deere’s commitment is global but focuses on six key
areas: the United States and Canada, Europe, Brazil, Russia, India, and China.
venture 3 2011 11
WW 150 YEARS
A trip
down
memory
lane
As the Wilh. Wilhelmsen Group,
one of WWL’s owners, celebrates
its 150th anniversary, we reflect on
the company’s history and the factors that have enabled it to remain
one step ahead of the competition.
Venture caught up with Thomas
Wilhelmsen, CEO of the Wilh. Wilhelmsen Group, in conjunction with
the anniversary celebrations in Oslo.
Words ISABELLE KLIGER
PHOTO Kaia Means
Thomas Wilhelmsen
1860
HISTORIC
HIGHLIGHTS
150 years is a long
time, and a lot has
happened since
WW was founded.
Here are some
highlights from a
proud and dramatic
history.
12 venture 3 2011
1890
1920
19
The early years
From sail to steam
For Speed & Service
Company founder Morten Wilhelm
Wilhelmsen, established his
company on 1 October 1861. He had
part ownership in several vessels,
but it was the 1865 purchase of a
two-sevenths share in the wooden
barque Mathilde, built in 1840, that
marked the beginning of WW as a
ship owning/ship management firm.
WW’s first steam ship Talabot was
purchased in 1887 and started
the “T” name tradition. The 1880s
saw an increasing shift from sailing ships to steamers. Halfdan
Wilhelmsen, son of the founder,
had spent two years as a trainee
with major shipbrokers abroad and
envisaged clearer than most people
what was coming.
The slogan was introduced in
the pre-war years, signalling yet
another shift in the company’s
development. In 1917, WW had
become engaged in cross-trade
liner operations, independent of domestic export and import. America
(III) became WW’s first sea-going
motor ship when she was delivered
in 1921.
Most companies don’t reach their
150th anniversary. What has the Wilh.
Wilhelmsen group done differently to
make this possible?
“I think the company has had a longterm approach from the outset, and more
importantly, we’ve always had strong,
consistent ownership. The reason most
companies don’t reach their 150th anniversaries is that, by being successful,
most companies get either bought or
divided up. This never happened to us as
we believe consistent control has been vital to the lasting success of our company.
Being a listed company also forces you to
apply additional discipline, because the
market is a demanding stakeholder.”
What do you see as the key achievements over the last 150 years?
“I think we’ve differentiated ourselves
through our ability to adapt to a changing
environment. You need the right combination of adaptability, planning and luck to
survive in this industry. It’s important to
move at the right time. If you don’t, you die.
Two examples can illustrate this. For
example, I believe one of the key factors in
our success was our decision to focus on
the ro-ro segment rather than container
shipping, when the industry made its transition from conventional cargo vessels to
the container and ro-ro concept in the 60s.”
950
What does the 150th anniversary
mean to you personally?
“My family and I feel very proud and
humble to be part of this success story.
But it is also a story involving thousands
of employees, customers and partners.
This moment should be cherished by
everyone who has contributed to such a
remarkable achievement.”
What major challenges do you foresee going forward?
“The economic situation is as challenging as ever at the present time. However,
in the longer term, I actually think the environment is having a more profound impact as it will change the way we operate.
Our vessels have a lifespan of 25-30 years.
Will we be able to adapt them to regulations and new technologies, many of
which are currently not known to us? This
is uncharted territory and nobody really
knows how it will change our industry.
With environmental issues already high
on our agenda, I’m confident that we can
deal with the challenges that lie ahead.”
How about the greatest opportunities
for the future?
“We already have a great platform and
a unique business portfolio. This gives us
a solid footprint within sea transportation of rolling cargo, with its associated
logistics services, along with an unparal-
1970 1990
leled global network offering a variety of
maritime services. If we continue to build
that portfolio, while consistently adding
value and finding the right balance between growth, diversification and risk, we
have a bright future ahead. If you want to
be a leader in the maritime industry, you
have to stick your neck out sometimes.
This means being quick on your feet and
prepared to take the right risks at the
right times.”
How do you see the role of WWL in
the past and future of the Wilh. Wilhelmsen group?
“WWL is and will continue to be a very
central part of our portfolio. WWL as an
organisation supports the Wilh. Wilhelmsen group through its fantastic global
infrastructure, a deep-sea service which is
second to none and as a world-leading competence centre for supply chain solutions.”
How will the Group differentiate itself
in the future?
“We must be adaptable, efficient and
innovative. We’re a people organisation,
which means that we need a strong team
to be out there with their fingers on the
pulse, listening to the customers. If we
can continue to provide products and services that make life easier for our customers ahead of our competitors, we’ll be in a
very good position for the future.”
2020
A golden era
Into RoRo’s & containers
A truly global leader
Into the future
The 1960s was the golden age for
the liner vessels, but things were
also changing. Tricolor (V), delivered in 1960, introduced a new WW
cargo liner design, while the appropriately named sister ship Tønsberg
was delivered just in time for the
company’s 100th anniversary.
The means of sea transportation
were rapidly changing with the introduction of containers and RoRo
ships. From the 1970s onwards,
WW’s liner services concentrated
on the new types of ships. One of
the first specialised RoRo’s, Tombarra, was delivered in 1973.
In 1995, WW and Wallenius Lines
(OW) decided to merge their liner
and car carrier operations in Wallenius Wilhelmsen Lines (to become
WWL in 2006). The new name
underscores that the carriage between ports represents but one part
of an all-inclusive transportation
and terminal service, on land and
sea, from producer to consumer.
At its 150th anniversary, WW is well
prepared to meet future challenges.
Among these are environmental issues, which without doubt will play
an increasing role in world shipping
in the decades to come. Some of
the visions for a cleaner maritime
environment are incorporated in the
visionary concept ship Orcelle.
venture 3 2011 13
IMO REGULATIONS
The role of the IMO
The idea of an international body to handle the issues
surrounding international shipping goes back to the boom
of sea trade in the 18th and 19th centuries. But it took
until 1959 for a real organisation to come into power: the
International Maritime Organization (IMO).
“The IMO is a United Nations specialised
agency,” explains Eivind Vågslid, Head
of the IMO’s Air Pollution and Climate
Change Section. “There are 169 member
nations, each of which can raise any issue
with one of the relevant committees or
sub-committees in the IMO. Today we
have 53 treaty instruments – conventions
and protocols – in force, supported by
some 800 codes, guidelines and numerous other supporting documents.”
The kinds of issues a member nation
is likely to bring before the organisation
are likely to be in reaction to an accident,
or in response to technological developments. “Our aim is, of course, to be proactive, but most often IMO regulations
are reactions to oil spills, accidents or
other serious incidents,” Vågslid says.
As an example, he notes an issue which
is now emerging: underwater noise. “A
compelling need has been demonstrated
to respond to the underwater noise created by commercial vessels and their
effect on marine life,” he says. “This
might eventually lead to guidelines on
how to design propellers that will disturb
wildlife as little as possible.”
14 venture 3 2011
But how exactly does the IMO enforce
the regulations it enacts? Simply getting
to an agreement can take many years,
given the political differences within one
single region – not to mention across the
globe.
“The obligation for the member state is
to implement the standards in their own
national legislation,” Vågslid explains,
“and then to enforce these for the ships
that are flying their flag.” The IMO, in
fact, sees its standards as the minimum,
and that individual nations are always
free to implement even stricter regulations of their own.
One good example of national regulations helping to push acceptance of IMO’s
global standard is in the issue of ballast
water. Ships, of course, use water within
their steel hulls for stability at sea; the
problem is that living things in the water
ballast taken in one place – everything
from bacteria to fish and shellfish larvae
– may be released somewhere else, along
with the water. These may then become
harmful invasive species causing huge
ecological and economic damage.
“The ballast water management convention was adopted in 2003, but it still
hasn’t entered into force due to a lack of
ratification,” Vågslid says. “You need to
have 30 states, representing 35 percent of
the tonnage, to achieve that.” While the
IMO is nearing that magic figure, ship
operators are finding they must comply
even today. “Many of the member states,
such as Australia, already require ships
to comply with their regulations – not
exactly the same as the IMO’s but quite
similar. There are also European and US
ports that do the same.”
And while he says that there are no
figures to assess how individual carriers
measure up to IMO regulations, he adds
that, as an air pollution expert, he does
appreciate the actions and directions set
by Wallenius Wilhelmsen Logistics.
“Definitely, the policies taken by
WWL on low-sulphur fuels has been very
encouraging,” he says. “One of the arguments was that you could not operate
large two-stroke engines with lowsulphur fuels over long periods. WWL
proved that this is not true.” And with
ground-breaking IMO regulations having just established an energy efficiency
agreement – “the first really binding
climate agreement since the Kyoto Protocol,” Vågslid concludes – “it’s good to
know that WWL is very much sailing in
the right direction.”
William Ross
EU Cargo rules – avoiding
unnecessary delays
Following earlier cargo security
regulations put into place in the US,
Canada and China, the start of 2011
also saw the introduction of new
regulations aimed at ensuring the
security of cargo headed to ports in
the European Union (EU).
The regulations are all
about reducing risk
by improving the flow
of information about
exactly what a ship is
carrying. A container
ship must file an Entry
Summary Declaration
Joost Somers
(ENS) – a thorough
report of the number of items a ship is
carrying, the consignor and consignee,
the weight of the goods and other information – no later than 24 hours before it
begins loading in the foreign port, not
before entering its first EU port. For ships
carrying break bulk and roll-on roll-off
(RoRo) cargo – meaning most of what Wallenius Wilhelmsen Logistics (WWL) vessels carry – reporting must be made within
four hours of arrival in the first EU port.
“However, we send the information
five days before our arrival in the first
port,” says Joost Somers, WWL’s Head of
Customer Service, Region Europe. “If you
do the reporting five days ahead, you have
a good safety margin if there is a problem
in communication with the customs officials – which we saw a lot in the past!”
Most of the extra work involved, Somers
explains, falls on the carrier. “The regulations hold us responsible for reporting
to the local customs authorities. This
can become quite complicated in Europe
because of all the different countries that
are in the EU community and all the political issues involved in the regulations’
implementation.”
Luckily, he says, WWL could draw on
its experience with the US regulations,
which began as early as 2002. “We have
a very stable system that has been in
use for more than five years,” he says.
“Drawing on our experience with the US
regulations and procedures, we could
then adapt the system to match the EU
regulations.”
“Reporting” in 2011, of course, doesn’t
mean handing over a sheaf of papers;
WWL partnered with an outside software
provider to handle the communications
with customs officials. “The company we
are working with has established connections with customs authorities in the different countries, and handles communication with customs for other transportation
modes besides ocean transport as well.”
But, he adds, the regulations are not
yet set in stone; changes dealing with the
Modernized Customs Code will be coming in 2013, and there is the possibility
that customs authorities will be asking
for even more information.
“However,” Somers says, “we will continue to work together with them to
make dealing with the security
regulations as easy as possible, and ensure that
cargo gets delivered
right on schedule.”
William Ross
This partnership also means that customers can handle the new regulations
with the least amount of extra effort.
“They should have no problems with
delivery delays or other issues, as long as
the information they provide is good,”
Somers says.
The EU Advance Cargo Security Rules
The new European regulations intended to improve cargo safety in EU ports involve
shipping companies sending an electronic ENS, or Entry Summary Declaration, to
the customs authorities of the first EU port they will enter. For breakbulk and RoRo
ships, this means sending the report no later than four hours before arrival in the
first EU port. Container ships may not begin loading if documentation has not been
sent; other breaches of the reporting requirements may result in penalties and/or
the delay of the vessel and its cargo.
venture 3 2011 15
fast facts
5
ENERGY TRENDS
trends shaping
the energy sector
Energy is crucial for global economic growth. However, a rapidly growing
population, increasing urbanisation and industrial production are putting
great pressure on existing energy supplies. There is a growing sense of
urgency to find alternative sources of energy, on top of concerns about
climate change, energy security, resource nationalism and high energy
prices. WWL identifies five key energy trends.
Words Alannah Eames
PHOTO colorbox
16 venture 3 2011
2
1
The future is renewable
There’s no doubt that renewable energy sources like wind, solar, biomass,
geothermal and tidal power are the
fuels of the future. Nearly 80 percent
of the world’s energy needs could be
met by renewable energy by 2050. This
would play a key role in fighting global
warming. Whether renewable energy
development increases or is restrained
will depend on public policies rather
than on the availability of renewable
energy sources. Industry, consumer
and societal behaviour coordinated
globally, and investments in new energy technologies, will also be crucial.
3
The natural gas bridge
Cleaner coal
Until we can depend on renewable energy sources, natural gas – with its low
CO2 emissions and plentiful supply will most likely become a bridge to the
future. Demand is increasing across
Asia, Europe and the US. The supply
of liquefied natural gas (LNG) is also
rising due to massive projects in Australia and Russia’s Far East. Shale gas
finds in the US have proven a viable
fuel alternative and Europe’s shale gas
reserves are said to be almost as big as
those in the US. But before large-scale
extractions take place in Europe, the
issue of fracking (an extraction technology involving hydraulic fracturing)
needs to be addressed.
Coal is shaking off its “dirty” image
as clean coal-based technologies like
carbon capture and storage become a
mainstream technology. China and India are still heavily dependent on coal
for their electricity needs; 70 percent
of China’s electricity comes from coal
and it plans to add another 600 GW
of coal-fired capacity in the next 20
years – the same amount that North
America, Europe and Japan combined
currently produce annually. To feed
its demand, China is likely to continue
to import coal from Russia, Mongolia,
Australia and Indonesia.
4
Less dependence on oil
As renewable and semi-clean energy
sources continue to grow, and as oil
reserves dwindle, we will move away
from our dependence on oil. However,
in the short-term, high demand for
transportation fuel from Asia, combined with an unstable supply of oil
and few alternative energy solutions,
will keep oil prices high and ensure
that the offshore drilling boom continues. Demand for oil will be particularly
strong in developing countries like
China, which adds around 20 million
vehicles to its roads each year.
5
Slower nuclear growth
The Fukushima disaster in Japan
created strong anti-nuclear sentiment
worldwide. However, completely cutting out nuclear energy – a crucial part
of our global energy mix as a “cheap”
and “low-emission” energy source –is
not easy. Reducing nuclear energy
without having an alternative solution will increase CO2 emissions and
global energy prices. While Germany
and Japan plan to halt their nuclear
expansion plans, other countries are
sticking to their ambitious nuclear
energy strategies. Nuclear development will continue, but it will be
subject to tighter safety regulations
limiting its growth.
venture 3 2011 17
on site
THE HEART OF THE ACTION
About THE Port
A major handler of High and Heavy (H&H) cargo,
WWL’s Galveston, Texas, port officially launched
its services at the March 2011 grand opening of its
new Equipment Processing Centre (EPC). With the
new facility, located on a barrier island in the Gulf
of Mexico in south-central Texas just south of Houston, the EPC allows WWL to provide even more
services for customers importing and exporting
equipment to South America, the Middle East and
Australia via the Panama Canal. The 40-acre site is
also situated in a Foreign Trade Zone, offering duty
exemption on equipment being stored temporarily
before entry or re-export.
LOCATION: Galveston
A MAJOR HUB FOR
HEAVY EQUIPMENT
WWL’s new Equipment Processing Centre at Galveston, Texas, is a key link
for customers transporting their products around the world. It offers services
for technical processing, preparation and storage before delivery to the dealer,
and is located in a Foreign Trade Zone.
Words William Ross photos Terry Halsey Photography
OPENING THE EPC
The WWL team joins executives from Caterpillar for the grand
opening of the EPC. Caterpillar is WWL’s biggest customer in
Galveston, though WWL also provides a range of services to several
other major manufacturers.
SHIP’S-EYE VIEW OF GALVESTON
The seven WWL vessels arriving each month see this view of the
company’s 40-acre site in the Galveston terminal, including the
new Equipment Processing Center housed in the hurricane-proof
building on the left.
18 venture 3 2011
ARRIVING IN GALVESTON
CNH tractors unload from a vessel in port. WWL offers Free Trade
Zone services and storage for equipment manufacturers before
distribution to dealers.
METICULOUS PREPARATION
Strict quarantine regulations in Australia mean this washing is a
serious job – and possibly involving dismantling and reassembly for
thorough elimination of all contamination.
POST-FACTORY INSTALLATIONS
A WWL employee opens a crate of parts for installation on a
Caterpillar wheel loader. WWL not only inspects, preps and repairs
equipment, but is often asked to install parts that are not added at
the maker’s own factory.
Lined UP FOR
EXPORT
Rows of agricultural
machinery await
shipment to ports all
over the world. WWL
has to make sure
everything is in perfect
order before their
departure.
venture 3 2011 19
On the ocean
New times
NEW FL
20 venture 3 2011
“In this fast-moving
world, flexibility and
efficiency are key”
LEET
Eleven new vessels will enable
Wallenius Wilhelmsen Logistics
(WWL) to provide an even more
efficient and flexible ocean service.
Words ISABELLE KLIGER
PHOTO wwl
O
n-going globalisation is creating new challenges for logistics
companies,” says Kai Kraass,
Chief Operating Officer at WWL.
“In such a volatile world, flexibility and efficiency are absolutely crucial. This is why we’re
enhancing our fleet, focusing on two vessel types that
will enable us to deliver the most reliable, sustainable
ocean service on the market.
At the height of the recession, WWL was quick to
adjust its capacity, taking 19 vessels out of circulation
and into cold lay-up. Half of them were subsequently
recycled in order to make room for the next generation
of vessels – the brand-new Mark V and the state-of-theart LCTC (Large Car and Truck Carrier).
WWL worked closely with the shipyards to
design these vessel types, both of which have been
custom made to exceed industry standards in terms of
size, length and capacity, as well as flexibility and fuel
efficiency. By the end of 2012, WWL will have received
four Mark Vs and seven LCTCs.
The vessels are being deployed in WWL’s roundthe-world liner service. This service operates according to a fixed schedule, while seeking to optimise
in-port turnaround times and vessel speeds, thereby
creating a service that is both sustainable and reliable.
“Our customers – many of whom are world leaders in areas such as process and supply-chain optimisation – expect to be able both to plan and to respond
quickly to a changing market, ” adds Kraass. “We’ve
learned so many valuable lessons from our customers,
and these vessels and operating patterns are some of
the ways in which we’re responding to their expectations. They will enable us not only to build more flexibility into our product but also to create a round-theworld liner service that is second to none in terms of
reliability and transparency. ”
The rejuvenation process will not end here.
Kraass reveals that work is already underway to design
a prototype for the next generation of vessel, scheduled for introduction in 2014-2015.
“The urgent need to reduce fuel consumption even
further will require us to change the way ships are
designed, ” he says. “I think we can safely say that the
next generation of vessels will look very different from
anything we’ve seen before. ”
venture 3 2011 21
On the ocean
L
FA
PARSI
The Mark V and Large Car and Truck
Carrier are two kinds of vessels which
together form the most efficient, versatile RoRo service on the ocean. With
their size and outstanding fuel efficiency, these vessels have been designed
to create economies of scale. Custommade for WWL, they come equipped
with the latest technologies, including
state-of-the-art environmental solutions
such as the PureBallast water treatment
system, as well as cutting-edge safety
and cargo-handling features.
About Mark V
Inside Tønsberg
g
er
b
ns
Tø
22 venture 3 2011
The brand-new Mark V is the largest, most sophisticated
RoRo vessel ever built, with a length of 265 metres and a
cargo volume of 138,000 cubic metres, across six fixed and
three hoistable decks.Thanks to a number of energy-saving
features, emissions per cargo unit will be reduced by up to 15
percent. The Mark V has been specifically designed for High &
Heavy and break-bulk cargo.
ER
TIG
MV Tiger was named on 8 June at
the Daewoo Okpo shipyard, Korea.
MV Tiger started its commercial
sailings for WWL on 14 June.
n
me
r
Ca
ABOUT LCTC
The LCTC has the same external dimensions as the
extended Pure Car and Truck Carriers (PCTCs), but with
an increased cargo capacity. At 230 metres, with a cargo
capacity of 8,000 cars or a combination of 3,486 cars and
466 trucks or buses, the LCTC is the largest, most flexible
vehicle carrier on the ocean.
LA
GE
U
T
venture 3 2011 23
OUR INDUSTRY
The future is rail
For many years, rail has been regarded as an old, traditional and
slow-growth industry. But that’s no longer the case, according to
Teresa Lehovd, Chief Analyst – Heavy Equipment Industries at
Wallenius Wilhelmsen Logistics.
Words ALANNAH eames photo COLORBOX
D
riven by strong
population growth,
increasing global
urbanisation, and the
urgent need for more
environmentallyfriendly modes of transport, many
countries are starting to look
seriously at the benefits of rail
transport, both for freight and
passengers,” says Lehovd. “Many
governments are investing in
large-scale railway construction
projects – also as a way of stimulating their economies after the
recent financial crisis. Without a
doubt, railway construction is back
firmly in the spotlight.”
Light rail and metro networks –
which can move millions of passengers each day with little impact on
the environment – are key solutions
for urban transportation. Projects
for new high-speed, long-distance
trains are also on the rise with new
projects starting in both developed
and developing countries.
Western Europe has a particularly strong regional rail network.
24 venture 3 2011
It also has the most rail projects
today, many focused on updating existing infrastructure and
interconnecting local networks.
Meanwhile, the US has allocated
US$9 billion for various highspeed rail projects and to modernise and expand urban mass transit
systems.
China has long been developing
its railway system and is today the
world’s largest railcar market and
producer. The country will have
more high-speed railways by 2012
than the rest of the world combined. It will also intensify exports
of railcars and railway technology
to developing countries. Likewise,
India has embarked on a major
overhaul of its elderly railway
system covering urban and longdistance railway lines. Transformation is also on the cards in the
Middle East where several countries are working on a regional
railway network; five huge railroad
projects are already underway in
Saudi Arabia.
WWL RAIL SERVICE
Railway projects by
region jan. 2011
ROLLING STOCK
Africa
Asia
Australasia
Central America
Europe
South America
North America
8
80
17
4
170
10
45
total
334
The rolling stock industry refers
to companies and organisations
which manufacture and rebuild
locomotives, railway cars, rapid
transit cars, refrigerator cars,
street cars, trolley buses, gondola
cars and wheels for railways. It
includes all the wheeled vehicles
used collectively on a railway –
locomotives, passenger coaches,
freight wagons, guard’s vans, etc.
Over the past 20 years, WWL
has carried more than 1,000 rail
cars – ranging from light rail to
locomotives – mainly from Asia
and Europe. It offers a multitude
of handling concepts allowing
for safe under-deck stowage,
whether shipped with or without
steel bogies attached to rail cars,
or whether from port to port, rail to
rail or factory to inland destination.
Most recently WWL handled
the transport of Hyundai/Rotem
passenger rail cars from Korea
to Dublin, Ireland, and Kawasaki
trains from Japan to New York.
venture 3 2011 25
inspiration
Energy trends for
the future
A smooth trip home
for vintage Beetle
2050
ALMOST
80%
of the world’s
energy
Could come
from renewable sources
Discovering the real Mexico
in a Volkswagen Beetle
When Belgian photographer Evy Raes visited
Mexico for the eleventh time, she was not interested in a typical trip along the tourist trail. She wanted
an adventure, while writing a blog for children.
Having asked European children to share any
questions they might have about Mexico, she hit
the road, armed with her trusted camera and a
Volkswagen Beetle named Pablo.
How do Mexicans celebrate birthdays? Do they
eat worms? Is the Mexican mafia stronger than the
Italian one? Do they celebrate Halloween? What
does the eagle on the Mexican flag mean?
Pablo drove 9,434 kilometres, along bumpy
coconut-lined roads on the coast and smooth toll
roads in Chiapas, to find the answers. The results
were presented in Raes’ blog using pictures, videos
and games.
26 venture 3 2011
The adventure did not end there. Finding a
Volkswagen Beetle in good condition had been
quite a challenge and, by the end of the trip, Raes
had fallen in love with Pablo and could not leave it
behind. Fortunately, Wallenius Wilhelmsen Logistics was able to bring the Beetle back to Belgium.
It took just a couple of days for WWL in Mexico
to help Raes arrange the booking, customs’ clearance and shipping procedures and, after a month
on board the MV Fedora, Pablo arrived safely in
Zeebrugge.
Today, in excellent condition and perfectly
suited to Raes’ city life in Antwerp, Pablo is used
to teach European children about Mexican culture
through workshops and exhibitions at museums
and schools. 70%
of China’s electricity
now comes from coal
600 GW
of coal-fired
capacity is
expected to be
added in China
in the next
20
years
People on the Move
Christopher J. Connor, named
Chief Commercial Officer for
WWL’s global organisation
Christopher J. Connor, who is also
Deputy CEO of WWL, will take on
this role in addition to his current
position. He will work closely with
CEO Arild Iversen and the global
management team on strategic issues to enhance
WWL’s commercial development worldwide. He was
previously President of WWL Americas and Chief
Operating Officer for Ocean Services.
Richard Heintzelman,
rejoins WWL as Executive Vice
President and Head of Commercial for WWL Americas
Richard Heintzelman was most
recently Vice President and
General Manager for the Middle
East at American Roll-on Roll
off-Carrier (ARC). He previously spent over eight
years working for WWL in Tokyo as Head of WWL
Asia and Head of Commercial.
John Felitto, appointed President and CEO of WWL Vehicle
Services Americas
John Felitto has worked for WWL
for over ten years and has been
acting in this role since late 2010.
He is responsible for managing
WWL’s North American supply
chain management and land-based technical services operations which serve the major automotive
manufacturers.
Raymond F. Fitzgerald, new
President of WWL Americas
Raymond F. Fitzgerald was most
recently President and CEO
of American Roll-on Roll-off
Carrier (ARC), a WWL-affiliated
company in the US. Prior to
this, he held several managerial
roles at WWL, including Chief Operating Officer
for Ocean Services. He will be based at WWL’s US
headquarters in Woodcliff Lake, New Jersey.
Venture
online
A brandnew logistics
website for
inspiration
and innovation
venture.2wglobal.com
Scan this QR code to visit
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One click access
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Share your opinions
and comments
upcoming events 2011
Oct 13–Oct 14, 2011
ECG conference 2011
This year’s annual conference will
take place in Paris, France, at Hotel
New York in Disneyland.
www.ecgconference.org
Oct 24–Oct 27, 2011
Breakbulk Americas
Ernest N. Morial Convention Center,
New Orleans, US.
Come see us at booth 621.
www.breakbulkevents.com
Dec 7–Dec 9, 2011
5th Automotive Logistics India
Hilton Janakpuri Hotel, New Delhi,
India. WWL is a global sponsor of
the event.
www.automotivelogisticsindia.com
venture 3 2011 27
ECONOMY
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