danish maritime magazine 5.2012

MaritiMe DanMark

LNG: New fuel, new marketCopenhagen: Capital of the OceansThrane: Forced away from the work of his life

MaritiMeMagazine

Danish

5 - 2012

Make your company’s profile visibleDo you deliver the latest technology?Are technical managers your target group?

Then The Danish Engineer´s Association’s business conference, Ajour 2013, is theright place for you to profile your company and the services you provide. As anexhibitor at the conference you get access to a professional summit that is one of a kind. The participants are technical managers and decision-makers.

Ajour 2013 highlights Management and Technology and the engineer´s contributionto energy optimization, green technology and efficiency.

Expand your professional network and experience the latest technology from upto 150 exhibitors. Or get inspired by a variety of technical talks from more than30 professional speakers.

Be a part of the success, contact Lisbeth G. Haastrupat The Danish Engineer´s Association for exhibiting opportunities,

Phone: +45 22 67 61 31. Mail: [email protected].

www.ajour2013.dk

Ajour2013 Ajour 2013Odense Congress CenterThursday 28th November

Friday 29th November

Maskinmestrenes erhvervskonference

ISSN: 1903-5888

EditorMartin [email protected] (+45) 2366 2899

AdsRené Wittendorff, [email protected]: (+45) 7020 4155Fax: (+45) 7020 4156

PublisherMaritime Danmark ApSEsplanaden 30.41263 Copenhagen KPhone (+45) 2366 2899

Printing: PE offset A/SLayout: Michael Storm, DesignuniversNext issue: 20th of February 2013

5-2012 4 Maritime growth in Copenhagen:

An international maritime focal point

8 Built in China

– But with many danish sub-suppliers

10 Danish Maritime Fund:

Horsepower for new blue development

14 New fuel, new market

16 Forced to give up his life’s work

18 Somali piracy slowing down: Counter-piracy at sea is working

20 Scandlines has a vision of green ferry services

22 FOB newbuilding sets new standards

MARITIME DANMARK

LNG: New fuel, new marketCopenhagen: Capital of the OceansThrane: Forced away from the work of his life

MARITIMEMAGAZINE

DANISH

5 - 2012

Make your company’s profile visibleDo you deliver the latest technology?Are technical managers your target group?

Then The Danish Engineer´s Association’s business conference, Ajour 2013, is theright place for you to profile your company and the services you provide. As anexhibitor at the conference you get access to a professional summit that is one of a kind. The participants are technical managers and decision-makers.

Ajour 2013 highlights Management and Technology and the engineer´s contributionto energy optimization, green technology and efficiency.

Expand your professional network and experience the latest technology from upto 150 exhibitors. Or get inspired by a variety of technical talks from more than30 professional speakers.

Be a part of the success, contact Lisbeth G. Haastrupat The Danish Engineer´s Association for exhibiting opportunities,

Phone: +45 22 67 61 31. Mail: [email protected].

www.ajour2013.dk

Ajour2013 Ajour 2013Odense Congress CenterThursday 28th November

Friday 29th November

Maskinmestrenes erhvervskonference

V I S I T D A N I S H S H I P P I N G . C O M

Danish shipping creates value

Advisory Board:

Klaus Kjærulf, Chairman SeaMall (Chairman)

Jenny Braat. CEO Danish Maritime

Jan Fritz Hansen, EVP Danish

Shipowners’ Association

Per Jørgensen, Chairman MMF and Federation Internationale des Cadres des Transport

Bjarne Mathiesen, CEO Port of Aarhus

Steen Sabinsky, CEO Maritime Development Center of Europe / EMUC

Kurt Skov, CEO Blue Water Shipping

Lars Thrane, Founder of Thrane & Thrane

Copyright

Maritime growth in Copenhagen:

An international maritime focal pointBy Finn Bruun

Maritime growth in Copenhagen: An international maritime focal point

Photo: Ty Stange / w

ww

.copenhagenmediacenter.com

4 Daily news on www.maritimedanmark.dk

The Blue Denmark – as Danish shipping and all its industry is

often named – has for quite some time been earmarked as a

growth area by the government – today shipping is Denmark’s

largest export sector – and by engaging the industry directly

through a growth team, the government has obtained a real-

istic input and overview of opportunities.

The final official growth strategy is still in development but

expectations are that it will be close to the recommendations

of the growth team.

Recently the current Danish minister for Business and Growth,

Annette Wilhelmsen, stated that the government shares the

vision of the growth team, which sees Denmark at the heart of

maritime Europe, through an ambitious and realistic growth

strategy for the Blue Denmark? as a whole.

Also in the Copenhagen metropolitan area, the idea of “Capital

of the Oceans” is a welcome one. As Lord Mayor Frank Jensen

says: “Copenhagen has all it takes to meet this maritime chal-

lenge. Shipping is extremely important for Copenhagen. The

administration will go to great lengths to secure easy access

to the city for international companies who wish to establish

operations here, as well as for their employees and guests.

Copenhagen has a lot to offer, and our strategy of creating

new business and jobs supports the development of the city

as a center for shipping and gateway for all related activities.”

“The “Capital of the Oceans” initiative corresponds well with

Copenhagen’s strategy to attract new businesses and create

new jobs. The City of Copenhagen will therefore do what we

can to help the maritime cluster to attract new international

shipping companies. I believe that Copenhagen has a lot to

offer, among many other things a great business environment

and a high quality of life,” Frank Jensen says.

AlreAdy An oceAn cApitAl

But the claim for the title “Capital of the Oceans” may already

be redundant. Associate Professor at Copenhagen Business

School, CBS, Martin Jes Iversen, who closely monitors Danish

shipping development, finds that Copenhagen has already

earned this position in many respects. This is reflected in the

many major international shipping companies already pres-

ent, the numerous ships they own and the significant number

of chartered foreign vessels relying on them for operations

''You should never miss the benefit of a good crisis, an old saying goes. The

whole world has felt the impact of the financial downturn. So has shipping.

But the question is: who will be best prepared when the tide turns once

again. Danish shipping declares itself ready – and is even heading for a

title: Capital of the Oceans. National consensus brings this goal in touch

with reality.

5 percent of world tonnage is operated from Copenhagen


Frank Jensen

5Daily news on www.maritimedanmark.dk

and pool management. Indeed, today 5 percent of world ton-

nage is operated from Copenhagen. And Martin Jes Iversen

sees continuing strong potential.

However, to further strengthen Copenhagen’s position Ivers-

en says it is crucial that knowledge and research be improved

by stronger interaction between public and private resources,

between the academic world and company developers – in-

cluding economic studies. He therefore calls for a new plat-

form combining the various strong knowledge disciplines to

meet these challenges. CBS itself has established new forms

of Blue research areas as well as studies and education and

more is underway.

He is optimistic but expresses slight concern about the new

A.P. Møller – Maersk strategy whereby Maersk Line signals a

slightly reduces focus on the shipping leg.

denmArk is the cApitAl

The imminent governmental growth team report is not just

about Copenhagen, but the whole country. Yet the capital

is ultimately at the center of Denmark’s position as a world

maritime stronghold. As Jan Fritz Hansen, Deputy Director of

the Danish Shipowners’ Association puts it, no one will feel

insulted if the term “Copenhagen – Capital of the Oceans” is

used to describe the country as a whole.

“Denmark is so small that in reality it constitutes only one

maritime cluster – with some regional sub-clusters,” he

points out. “To meet the international challenge and make

Copenhagen globally attractive, quite a number of initiatives

are needed. It must be made easier for foreign companies to

establish themselves and to invest here, in one way or an-

other,” he stresses, mentioning the importance of one-stop-

shopping and smooth handling of documents.

“It is important that we look at the whole package – both when

it comes to setting up operations in the city and to visits. It

must be simple to get permission to stay during work periods

and simple to have your family with you. One-stop procedures

should apply to both the Maritime Authority and the softer so-

cial issues at the Town Hall. We are going to attract competent

people the same way we station Danes around the globe to

strengthen the Blue Denmark.

Business center

“When it come to business, we would like to have new events

in Copenhagen to attract foreign visitors – these might be re-

lated to shipping activities, like security or green challenges,

but we may also focus on the capital market to encourage in-

vestors to come.

Therefore we are considering events next year which will be of

interest to international decision-makers,” he says, mention-

ing a ‘maritime week’ during which the Danish shipping world

could design an agenda making Copenhagen the focal point

for political decisions about shipping regulation and the en-

vironment, while promoting the city as a center for business

and development. At the same time we could make use of our

conference facilities and related activities, creating a win-win

situation for all parties, he suggests.

smAll And Big

“Today all of our member companies – both small and big –

are global, with worldwide operations. And many offshore

companies, also have a regional agenda,” Jan Fritz Hansen

points out. “So their interest is that we in Copenhagen – as a

global focal point –

engage in questions of shipping regulation. Of course, only

the big shipping companies have the resources to participate

directly in the debate. The smaller ones typically leave this to

their associations. But they are equally dependent on a satis-

factory outcome for the political discussions.”

Commercially, all are interested in, let’s say, ship manage-

ment and technical counseling.

Even though visits by investors and discussions with interna-

tional bankers are not to everyone’s taste, Copenhagen will

also be able to attract regional investors – perhaps with a Bal-

tic focus. Short sea shipping might be able attract events and

visitors, Jan Fritz Hansen says, expressing the hope that all

this could lead to some form of international discussion forum

resulting in something like the “Copenhagen Accord”, which

came out of the UN Cop15 climate summit in Copenhagen I

2009.


Martin Jes Iversen, Associate Professor at Copenhagen

Business School


''Built in China – But with many danish sub-suppliers

When a shipping company negotiates a contract for a new-

building with a yard, it is not only price and specifications,

which are being negotiated. The yard and company must also

agree on which suppliers will be delivering the hundreds of

components which make up the vessel. The yard has its sug-

gestions, and so does the shipping company, and these sug-

gestions will result in a supplier list, which both yard and

company can agree upon.

“We have a very clearly defined starting point when we pres-

ent our suggestions for sub-suppliers: quality and price are

the decisive factors. We will not compromise quality or spend

away the shareholders’ money just to get a Danish flag on

the box of components. This would be unprofessional and ir-

responsible”, says head of Norden’s Technical Department,

Lars Lundegaard.

Built in china – But with many danish sub-suppliersDanish or Danish-owned maritime enterprises are ranking high in the world

league when it comes to the production of hundreds of components which

make up today’s modern product tankers. They are therefore well

represented on the supplier list which Norden has delivered to the GSI

Yard in China, where Norden’s two new product tankers are being built.

The Blue Denmark is ranking high in the world league


Built in China – But with many danish sub-suppliers

“This is yet another example that the Blue Denmark is ranking

high in the world league also when it comes to production of

vessel components – from engines to lifeboats, from kettles

to tank measurement equipment, from ventilators to firefight-

ing equipment, etc. Since we have decided not to attach im-

portance to national preferences in our supplier list, we as a

Danish shipping company can only be delighted that Danish

or Danish-owned enterprises can compete on both quality

and price”.

His guess is that the 2 new product tankers will have approxi-

mately 25 Danish sub-suppliers, and this is a high number

and more than usual, he says.

This is not saying that the components from the Danish sub-

suppliers will be “made in Denmark”. The same applies for

the Danish maritime business as in any other business. Even

though the head offices and development departments are

situated in Denmark, the production is carried out in many

different locations – in Denmark, but also in e.g. China, where

the 2 product tankers are being built.

“But this does not change the fact that the Danish enterprises

within the maritime business deliver high quality, high con-

sistency of supply and high reliability. We always get what we

pay for, and the products deliver as promised – also after the

guarantee has expired”, says Lars Lundegaard.

By and large, Norden benefits from the fact that the newbuild-

ings will have so many Danish sub-suppliers.

“We are already familiar with these enterprises, we have

great experience with them and we know that they have a

great track record. It is also easier to be in close contact with a

business which is based “just around the corner” rather than

thousands of kilometres away. At the same time, the Dan-

ish sub-suppliers to the yard industry are also very good at

keeping us updated on the latest technological advances on a

regular basis, just as it is very natural for them to adjust their

products to match Norden’s specific needs and standards”,

says Lars Lundegaard.

Courtesy of Norden

Norden News Autumn 2012


By Finn Bruun

The all including name for the Danish maritime industry, ship-

ping and supporting business and administration of all kinds

is “The Blue Denmark”, counting around 100.000 employees

engaged in global enterprise. They are – as well as a signifi-

cant number of new MBA-students with-in the sector – the

target of the well to do fund’s engagement.

The list of supported – and often successful – initiatives is

long, and hardly any important “blue” conference or event

runs without the foundation’s name on the list of sponsors.

That’s why the Danish Martime Fund is a visible factor in the

whole industry. Project creators have a place to go with their

new and focused ideas.

The Danish Maritime Fund has existed for seven years, and

gets its means from the revenue of a law established share

of the capital of the now private owned Danish Ship Finance

A/S. This construction followed the politicians’ closing down

of Danmarks Skibskreditfond.

Its trust funds are 33.3 million Danish kroner in shares in Dan-

ish Ship Finance A/S. The fund clearly prefers to support proj-

ect initiatives rather than ordinary operation.

One strong field of focus is the environment, and quite a lot of

the projects have a green approach much in concert with the

general commitment in Danish shipping and maritime indus-

try to seriously meet climate and environmental challenges.

Danish Maritime Fund:

horsepower for new blue developmentWho wouldn’t dream of a rich uncle

who perfectly understands your

situation – and hands out money

without delay. Well, the Danish

shipping world actually has a

unique institution like that: The

Danish Maritime Fund, who actively

supports the development of the

sector. And as chairman of the fund,

Knud Pontoppidan, puts it: - We

are flexible and not bureaucratic.

We prefer to give money instead of

keeping it. We have a positive view.

Danish Maritime Fund: Horsepower for new blue development10 Daily news on www.maritimedanmark.dk

This goes for issues like for instance ballast water treatment

systems and eco island ferries.

immediAte use

As the Fund’s administrator Carsten Melchiors, puts it:

- Our fund very much prefers to do something that benefits

the environment, and it is extremely important that we work

with issues that are immediately useful and addresses a real

challenge, so shipping can benefit from them, he says under-

lining the importance of bringing business together with the

academic community supporting cluster cooperation within

the Blue Denmark.

Chairman Knud Pontoppidan especially welcomes applica-

tions for activities that are innovative, forward-looking and

business oriented: - This means projects that develop the

skills and competitiveness of the Danish maritime sector. The

Fund’s board wants to strengthen the industry’s growth and

contribute to job creation.

The flexibility has much to do with the fact that it is at the

board’s discretion to decide as to how the fund’s purpose is

best served. No one has legal claims to be funded.

There are no detailed criteria for the types of activities that the

Fund wants to support, but innovation and forward orienta-

tion means that new competences and ingenuity for the Blue

Denmark are valued.

Danish Maritime Fund: Horsepower for new blue development

Carsten Melchiors

Administrator, The Danish Maritime Fund


Five themes

The Fund’s distributions can be divided into five thematic ar-

eas: Environment, recruitment, training, performance optimi-

zation and promotion of the Blue Denmark.

There are two kinds of portions: Business oriented and non-

profit work. In business a project is typically funded by up to

50 percent as a loan at very special conditions. Repayment

must be made if a project evolves into a profitable product.

For non-profit donations, the Fund may cover up to 100 per-

cent of the activity and there is no requirement for repayment.

The Danish Martime Fund’s activities are appreciated within the

industry. Handing out money always tends to add to ones popu-

larity, but in a study last year this was confirmed in numbers:

An impact analysis carried out by consultants among recipi-

ents and applicants on their experience with the Fund found

it easy to work with being non-bureaucratic and quick acting

- and not less important – quick to pay.

Carsten Melchiors is convinced that the Fund’s work is well

received by as well shipowners, industrial companies and op-

erators as organizations like Danish Shipowners’ Association,

Danish Maritime, development funds and EMUC, European

Maritime Development Center.

The fund has been involved in more than 500 projects where

more than half have received current support from the Fund.

Around 250 million DKK have so far been distributed. And

there is no finish line. As long as the Fund has its income the

contributions continue.

- We hope to see still more business oriented projects en-

abling us to support new products. Our goal is to put things in

motion and not holding back the money, Knud Pontoppidan

says.

On education the Fund has taken a remarkable step by estab-

lishing as much as 100 new scholarships in Maritime MBA

over the next five years. The process is going on right now

with 20 applicants for 2012 from the Blue Denmark, creating

fine opportunities for them.

The applicants are supposed to have potential within man-

agement and business development and represent a broad

spectrum of the sector. They are typically aged between 30

and 40 years. So far two women are among the supported.

A cAse in progress

One of the huge challenges – and opportunities – for Danish

shipping and maritime industry is treatment of ballast water

due to coming strict IMO regulations creating a worldwide

multi-billion dollar task.

The Danish Maritime Fund has worked with and supported

several projects on ballast water systems: Desmi Ocean

Guard, Bawat, Atlas Denmark and the DHI around a demo-

plant in the port of Hundested, Zealand.

- We have invested a lot of resources and money in develop-

ing a credible system for ballast water treatment, Carsten

Melchiors says.

One of them is the Bawat system, an “in-tank” ballast water

treatment system that removes oxygen in ballast water, com-

bined with pasteurization. This combination can effectively

reduce the microorganisms according to IMO Convention re-

quirements. All tests have out so far been positive and the

land based procedures are soon completed.

The inventor, Jan Hummer, describes the system as unique

and explains that ballast water is re-circulated over the ballast

tank inert gasses are dosed into a circulation system where

“intank” rotary jet heads secures a fast stripping of oxygen

from the ballast water.

- The project would have been almost impossible to start up

without the Danish Maritime Fund, who has supported the ini-

tial stage and helped create the Danish Hydraulic Institute’s

test facility at Hundested, where large scale tests can be con-

ducted.

- The DHI facility is one of only seven such plants in the world.

Having it here makes a big difference for us. Things are much

easier now, he says adding that the seaward testing will start

next spring and DNV certification can be expected in 3rd quar-

ter 2013.

Jan Hummer’s project has met great interest as well as skepti-

cism. Some find it hard to believe, that it can actually be that

simple. – But it is. The more complicated a ships ballast tank

is, the better our system works, he underlines.

Danish Maritime Fund: Horsepower for new blue development

Knud Pontoppidan


For more details visit: www.maritime-network.dk and www.fhhavn.dk

Port of Frederikshavn - Service Towards New Horizons





Port of frederikshavn - service towards new horizons



New fuel, new market

New regulations on the sulphur content of fuel for shipping in

the Baltic Sea, the North

Sea and the English Channel - Sulphur Emission Control Areas

(SECA) - will come in force on 1 January 2015. The mandate

to decrease sulphur content from 1.0 per cent to 0.1 per cent

has intensified interest in the possibility of using LNG - which

has significant environmental and climate advantages over

oilbased fuels as an alternative fuel moreover,

Lauritzen Kosan is looking at LNG not only as an alternative

fuel solution, but also as a new business opportunity in LNG

transportation.

Both of these considerations spurred Lauritzen Kosan to join

other industry stakeholders representing the LNG supply

chain - including states and ports, as well as gas and LNG

terminal companies - in working on the North European LNG

Infrastructure project, which recently concluded with a report

titled, “A feasibility study for an LNG filling station infrastruc-

ture and test of recommendations”. The project forms part of

a larger initiative co-financed by the EU on LNG infrastructure

and deployment in ships, which includes two full-scale pilot

LNG cruise ferries serving the southwestern part of Norway

and the European continent through the Port of Hirtshals,

Denmark.

An open question

For more than a year, Peter Justesen, vice president and head

of fleet management for Lauritzen Kosan and Søren Berg, proj-

ect manager, with the assistance of Lauritzen Kosan technical

specialists, represented Lauritzen Kosan at project meetings

around Northern Europe and in the UK.

“Our basic mission was to try to map out what is needed for

LNG to become a viable alternative to heavy fuel within the

North European area”, says Søren Berg.

“The benefits and technology are proven: LNG is a much

cleaner fuel, which emits virtually no particles, no NOx and

new fuel, new marketLauritzen Kosan joins other industry stakeholders to outline an infrastructure

for using liquefied natural gas (LNG) as an alternative to oil-based fuels.


New fuel, new market

SOx, and considerably less CO2. The main obstacle is the al-

most total lack of infrastructure for storage and distribution.

Ship owners are hesitant to convert to LNG before infrastruc-

ture is available”.

peter Justesen concurs:

“At this point it’s an open question”, he says. “If the infra-

structure is available, people will invest in LNG-powered

ships, it’s as simple as that. The key to making it happen is

to determine infrastructure requirements and many related

questions, and that was the focus of the project”.

Although natural gas is in some regards easier to handle than

heavy fuel, it presents storage challenges. If natural gas is

cooled down to minus 162 degrees Celsius, it becomes a liq-

uid (LNG – liquefied natural gas). Through liquefaction, 600

cubic metres of natural gas are condensed to one cubic metre,

which makes natural gas suitable for storage, transport, and

bunkering. Even so, it still takes nearly double the space of

heavy fuel and needs purpose-built cryogenic tanks - existing

fuel oil tanks cannot be used.

compliAnce options

“Vessels such as coasters, ferries, and ro/ro ships trading ex-

clusively within Northern Europe are more likely to convert to

LNG if the infrastructure is in place”, says Søren Berg.

“For ships operating outside this area, one answer with huge

potential may be dual fuel vessels that still burn heavy fuel on

open seas but have the ability to use LNG in emission control

areas once it is available”.

In any case, use of LNG will demand considerable invest-

ments - in new vessels or converting existing ones - on the

part of ship owners, for whom it’s a question of whether they

can bring costs down and get a better margin. It is a complex

question: theoretically, if the cost of compliance with the new

regulations, including investing in conversion to LNG, goes up

too much, the effect could be to create more overland truck

transport within SECA, which is not environmentally desir-

able.

For the time being, ship owners have three possible compli-

ance strategies: 1) continue as today but comply by switching

to low-sulphur Marine Gas Oil (MGO); 2) continue

o operate on high-sulphur fuel oil, but install scrubbers to

wash the sulphur from the exhaust gas; or 3) consider LNG

engines.

The investment cost for the marine gas oil strategy is limited,

but the oil is expensive, while the last two alternatives de-

mand large investments, but with the benefit of cheaper fuels.

“LNG is definitely an attractive alternative if the price is right”,

says Søren Berg.

“Like much else at this stage, the future price is market driven

and uncertain, but our best estimates - including a large add-

on for infrastructure development - show numbers that still

justify building ships for LNG or dual fuel, and even some ret-

rofits as well”.

twoFold interest

“As far as we’re concerned at Lauritzen Kosan”, says Peter

Justesen, “the answer is either scrubbers or LNG, if we want to

make a real change. we’re also looking at the potential market

for smaller LNG distribution ships, as the ships bringing LNG

to Europe are very large and can’t handle local distribution. So

If LNG development goes forward there will be a huge demand

for distribution ships and for bunker ships - presently nobody

knows how big the potential is, and we can’t build ships on

pure speculation. This uncertainty is also why at the moment,

as a shipowner, we favour the dual-fuel option of building

ships that have LNG capability, but are not solely LNG dedi-

cated. Whereas if we knew there was a market and an infra-

structure, we could build completely different types of ships”.

The project’s final report ends with 19 detailed infrastructure

recommendations encompassing the full LNG supply chain,

from LNG import terminals and liquefaction of natural gas

in Europe to ships as end-users. The recommendations also

cover “soft” areas such as the need for regulatory bodies to

formulate rules for LNG bunkering, crew training for LNG-pow-

ered vessels, and public communication.

“The challenge is what makes it interesting”, says Peter Jus-

tesen.

“It’s not a small task, but the report recommendations clearly

outline the requirements for setting up an LNG infrastructure,

what must be done to solve each problem, and who has to

do it. Taking part in the project also certainly gave us a better

understanding of decisions Lauritzen Kosan will be faced with

in the near future”.

Courtesy of J. Lauritzen

Lauritzen News - Issue17 - October 2012

KALUNDBORG LINESMEN APSDK-4400 KalundborgPhone: +45 20 32 93 11E-mail: [email protected]

WWW.KALUNDORGLINESMEN.DK

Kalundborg Linesmen wish our customers and business partners a Merry Christmas and a Prosperous New Year

KALUNDBORG LINESMEN APS


Forced to give up his life’s work

“When you are the object of a hostile takeover, you have all

the possibilities to defend yourself against it, as long as the

stock market price is not too high. If the stock market price

gets very high, you don’t really have any defense – there is

nothing you can do”, Lars Thrane states.

“But I still think it is somewhat strange to take possession of

the control in a company against the will of the main share-

holder, the founder and other shareholders. I have spent 30

years of my life developing the company to the size it has to-

day. To be thrown out of the company as it is the case here –

that’s a strange feeling”, Lars Thrane says.

The radio and satellite communication company Thrane &

Thrane is one of the crown jewels in the Danish maritime in-

dustry. Known in the entire shipping world for the company’s

advanced equipment for satellite and radio communication.

The company, which has its head quarter in Lundtofte north

of Copenhagen, employs more than 600 people, of which 200

are in the development department.

“To run a company at the level, on which we have run Thrane &

Thrane is not something that you just do. It is a very, very dif-

ficult task. It is no coincidence that we are the only company

within the satellite communication sector, which has earned

Forced to give up his life’s workLars Thrane was this spring forced away from the work of his life, the

electronics company Thrane & Thrane, when the British giant Cobham

carried through a hostile takeover of the Danish company. In this interview,

Lars Thrane for the first time tells the story about what happened to him in

the turbulent course of events.

By Martin Uhlenfeldt


money in all the years. No one else has done that. And this is

obviously because we are better at running the company than

they are”, Lars Thrane says.

Thrane & Thrane’s success has not passed unnoticed. The

big British supplier of electronic equipment for the defense

and air transport industry, Cobham, is one of the companies,

which has taken a keen interest in what has happened in Lun-

dtofte.

coBhAm shows interest

“I knew Cobham beforehand. They own a company, Chelton,

which has acquired a lot of companies – among others a

company in South Africa, with which we cooperated for many

years”, Lars Thrane says.

“I was once to a meeting in Chelton, it is several years ago, I

don’t really remember when it was. During the lunch the gen-

eral manager mentioned that they would also be interested in

acquiring us sometime”.

how did you reAct?

“I said the company was not for sale”, Lars Thrane states.

But that did not make Thrane & Thrane less interesting in the

eyes of Cobham.

“In August 2011 our chairman of the board, Waldemar

Schmidt, is approached by Cobham, who say that they are in-

terested in acquiring us. They ask me to find out whether I can

accept it or not. I spend two to three weeks considering and

then return to them saying I am not interested in selling, Lars

Thrane tells.

“It has nothing to do with money – I simply do not think that

Cobham is qualified to run the company”.

“The problem with Cobham is, from my point of view, that a

totally dominating part of their sales is military production.

If you have a company that works with military production,

you make contract development. Then you get a contract with

some specifications, and then you develop that product”,

Lars Thrane says.

“In contrast to that, in civil production, like in Thrane & Thrane,

you are at a competitive market. Here you develop products

for a group of customers, which is not defined beforehand. In

many cases neither you nor the customers know exactly what

needs they have. It is a question of having a gut feeling for

what will become a big seller”, Lars Thrane says.

“Experience also shows that companies that are working with

military production and try to make civil products fail. And

vice versa. Here I think Cobham has a problem. It is not really

their fault. They are just operating at a different market”.

The fact that Lars Thrane does not want to sell, does not

change Cobham’s wish to takeover Thrane & Thrane.

trouBle in the wind

During autumn 2011 the British private equity fund Jupiter As-

set Management begins to buy up shares in Thrane & Thrane.

One and a half month after Lars Thrane had said no to sell,

Jupiter announces that they own 9.5 per cent of the shares in

Thrane & Thrane. Five days later the portfolio is 10.8 per cent.

“Of course it sets the alarm bells ringing. A British private eq-

uity fund is not just rushing in like that buying 10 per cent of

the shares in Thrane & Thrane. Then I realized that there was

trouble in the wind”, Lars Thrane says.

During winter Cobham gradually raises the rhetoric towards

Thrane & Thrane. From being interested in buying to an-

nouncing to the board that they would make an offer regard-

less the position of the main shareholder.

On the 27 February 2012 an offer came down on the board’s

table. It has the form of a so-called non-binding undertaking

regarding making a bid on the company, provided that some

conditions are fulfilled. Among these that the board has to

support the sale. In return, Cobham is prepared to pay a price

which is significantly higher than the latest stock market price

of the shares.

So in order to watch the company’s and its stakeholders inter-

ests in the best way, the board of Thrane & Thrane decided to

get an external consultancy company to work out a strategic

review. A survey of what possibilities exist for developing the

company.

Forced to give up his life’s work 17Daily news on www.maritimedanmark.dk

PIRACYSomali piracy slowing down: Counter-piracy at sea is working

The work with the strategic review has hardly begun, when

Cobham on the 12 March withdraws its offer to buy. It hap-

pens with reference to the fact that the board of Thrane &

Thrane does not support the bid.

“To run a business is not just a question of satisfying the

shareholders. You have to take a lot into consideration. You

have your employees, your customers, your shareholders,

and then you have the society. Together they make up your

stakeholders. You cannot just show consideration for a single

group. You have to follow a more holistic view”, Lars Thrane

says.

coBhAm strikes

During Easter, Cobham purchased 25.6 per cent of the shares

in Thrane & Thrane – a block of shares, which was bigger than

Lars Thrane’s holding of well over 24 per cent – after which

Cobham on the 10 April resubmitted the offer of 420 DKK per

share, which they had withdrawn one month earlier.

“I think the board behaved professionally as well as correctly.

There was nothing to do. They were not just sitting on the

edge of their chairs to collect the money. The review, we had

started, showed that good possibilities existed so as to de-

velop the company forward-looking. However, – we could not

match the price that Cobham offered”, Lars Thrane tells.

On the 3 May Cobham raised the bid even further. This time

to the price 435 – corresponding to a total price for Thrane &

Thrane of 2.6 billion DKK. Hostile takeover or not, the price

was now so high that it was meaningless to resist. The board

therefore recommended a sale, and Lars Thrane sold his

shares to Cobham.

Why did you sell?

“I didn’t have any choice. They expected to be able to gather a

majority at an extraordinary general assembly and thereafter

remove the board. After that they would make life difficult for

the remaining shareholders. Sending out such threats is what

Somali piracy slowing down:

counter-piracy at sea is workingPiracy experts are holding their breaths at the moment: can it be true that the

problem is diminishing? So far, the European Union’s Naval Force, Operation

Atalanta, has reported the lowest number of attacks and hijackings in years –

and even if the problem is relocating to West Africa, the nature of the attacks

– cruel as they may sometimes be – is not one of Somali style hijacking.

The European shipowner’s anti-piracy comittee headed by

deputy director of The Danish Shipowners Association, Jan

Fritz Hansen, is cautiously optimistic:

“At the moment we see very few incidents. We are keeping

our fingers crossed that this is going to last as a result of

our symptom treatment. Shipping companies are sticking

to the recommendations in IMO’s Best Management Prac-

tice and armed guards protect ships – often without even

having to fire a single shot. On Danish vessels, we make

sure we show from a long distance that the ship carries

armed guards, thus deterring the pirates,” he says, add-

ing “If we can keep up this cadence, combined with the

strong naval engagement, we will be able to get control of

the problem at sea. But we must hold on for quite a while.

If we stop treating the patient with antibiotics too early, the

disease might pop up again. The much needed efforts on

land in Somalia are going to be a long term commitment,

building capacity and security. The main problem is that

criminals have a clear field on land. This must be coun-

tered,” he stresses.

signiFicAnt drop

In November 2012, a total number of 10 vessels with al-

together 141 crew were being held hostage by Somali pi-

rates. So far in 2012, 35 pirate attacks have been reported

(compared to 176 in 2011). Five vessels were hijacked this

year while 13 attacks were intercepted. The pirates’ suc-

cess rate is now 15%, according to EUNAVFOR, the Euro-

pean Union’s Naval Force Operation Atalanta.

tough conditions

Some crew members from merchant ships have been held

hostages for more than two years and several for more than

one year.

By Finn Bruun


PIRACYSomali piracy slowing down: Counter-piracy at sea is working

you do when you want to force people to sell. It was a hostile

takeover, and they behaved hostile”, Lars Thrane says.

You could have stayed and waited to see what would happen?

“Yes, but the problem is that they would no longer have any

obligation to buy my shares. I would then sit with my 24 per

cent of the shares, I would get no dividend, I would get no sal-

ary, I would get nothing”, Lars Thrane points out.

“Socially I think it is totally wrong to replace a high techno-

logical company with a bag of cold money. Perhaps there are

some happy shareholders here and there, but socially it is

a disaster. That the first to sell to Cobham were the pension

funds, where accountants were managing, was not a surprise.

Not any of the minor shareholders sold their shares until at

the end”, Lars Thrane says.

lArs thrAne will mAke A stArt AgAin

“I have been a nerd my whole life, and I will continue being

that. I will continue being engaged in communication, and the

maritime sector is my darling. I think it is one of the most im-

portant sectors we have at home”, Lars Thrane says.

How will that be reflected? Will you start a Thrane II?

“Yes – I probably will. But I don’t want to start from scratch

again. I don’t have time for that. Next time it will be a more

flying start”, Lars Thrane says.

“I will be part of something, where I can make a difference,

where I can see growth opportunities. Where it is possible to

make a healthy and reasonable business”, Lars Thrane says

without wishing to go into details with his plans.

“It should be something maritime, but not necessarily some-

thing to do with communications. But – I like communica-

tions”.

Will it be at home or abroad?

“I prefer to run a business in Denmark. I am a bit of a stay-at-

home type. I live here. Here I have my children and my grand-

children, family, and friends. So I stay here”.

The Danish film director Tobias Lindholm’s new movie “A Hi-

jacking” convincingly shows the tremendous stress that both

the crew members facing pirates’ MK47 rifles and the CEO

and his co-workers are under. A professional and experienced

consultant shows that it’s a game that – however potentially

deadly it might be – has to be played with the pirates and

their interpreter.

with your own eyes

The movie has received international recognition and has

just won the Golden Alexander prize at the Thessaloniki In-

ternational Film Festival. And Jan Fritz Hansen tells us that the

movie will now be presented to the European Parliament and

the Commission in Brussels.

“Anyone who has seen this film agrees that something must

be done to stop piracy and to prevent hijackings and hostage-

takings. We hope to create more awareness about the prob-

lem so that the international community will maintain its ef-

forts,” he says.

In Denmark the shipping companies are working with the

Ministry and the seafarers organizations to ensure that every-

thing is done to take care of the families of the hijacked crew

members, so they can maintain their living-standards.

Five steps

“We focus on two issues in case things go wrong: firstly, the

hostages should feel assured that someone is constantly

working on their behalf and that things are being taken care

at home. And secondly, upon their release we provide coun-

seling enabling them to get back on their feet through a sup-

portive network. We are working on a five-point plan which is

now almost completed,” he says.


Scandlines has a vision of green ferry services

CO2The ferry operator Scandlines plans to build four new and larger

ferries for the ferry service between Rødby in Denmark and Putt-

garden in Germany. The ferries should be absolutely emission

free, and the ferry operator has therefore in cooperation with Fu-

ture Ships, which is a subsidiary of Germanischer Lloyd, worked

out a project, which they call “Project Zero”. The project was

recently presented by Claus Nikolajsen, Vice President in Scand-

lines, at the conference “Environmental demands on shipping”,

which was held in Copenhagen.

-I will make no secret of the fact that the project has very much

to do with politics. At a hearing regarding the Fehmern Belt con-

nection we heard an expert saying that the construction of a

tunnel under the Fehmern Belt would cause the emission of 5-6

million tonnes of CO2. This is quite a lot. It made us think: what

if we made the assumption that there should be no emissions

from the ferry service, Claus Nikolajsen tells about the back-

ground for the project.

scAndlines’ kinder egg

The ferry operator will reach that goal by using new energy

sources and by reducing the energy consumption. Scandlines

imagines itself using a combination of fuel cells, solar cells as

well as the so-called Flettner System.

Scandlines plans to install solar cells at the top deck on an area,

which is not already used for something else.

-The solar cells will pay themselves back, if they are installed in

a long enough number of years, and if the area is not already

used for something reasonable, Claus Nikolajsen says.

Scandlines especially plans to use the surplus of power from the

many wind energy farms, located in the area, which is produced

by night. The wind energy from these farms should be used to

charge the fuel cells onboard the ferry.

Scandlines has a vision of green ferry servicesThe thought of having ferry services absolutely free of CO2 emissions as well

as other kinds of emissions is not just a futuristic dream. The ferry operator

Scandlines knows how it can become reality right here and now.

By Tina Altenburg


Scandlines has a vision of green ferry services

CO2-We will convert the wind energy into hydrogen for our fuel cells. It

will be a combination of energy, produced directly, and a reserve

in the form of a battery, Claus Nikolajsen says.

Moreover, Scandlines plans to install the Flettner System, which

consists of four rotating turbines on the top deck that use the wind

energy to propel the vessel. The Flettner System can replace up to

25 per cent of the ferry’s energy consumption.

reduced energy consumption

The energy consumption should, however, also be lower. By de-

signing hull, propellers, and other systems more optimally the

ferry operator will reduce the energy consumption, and the de-

partment plan will be optimized also.

-Today we handle 700 cars in and out in 15 minutes, but the new

concept operates with 850 cars in 10 minutes. It demands that we

no longer use two lanes from each deck at the ferry, but four lanes,

Claus Nikolajsen explains.

the diFFicult FinAncing

Scandlines will invest 500 million Euros in the project, if the politi-

cians on the other hand promise to delay the use of the new per-

manent connection under Fehmern Belt until 2030. And then, the

project still needs further financial support from for example the

EU, Germany, and Denmark as well as from strategic partners.

- We don’t think that the business case of the permanent con-

nection is good enough. The traffic will not develop as fast as

expected, and the tunnel is already delayed from 2018 to 2021,

and one or two more delays are probably to expect, Claus Niko-

lajsen says.

Scandlines’ green vision – Emission free ferries on Fehmarn Belt

2012

Project Zero

Zero emission of

- CO2

- NOx

- SOx

- new energy sources

- new energy carriers

- new energy converters

- consumption reduction

Simple and clear goal By exploring new pathways

The Flettner System can replace up to 25 per cent''

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FOB newbuilding sets new standards

The newbuilding FOB SWATH 2, which has just been deliv-

ered from the shipyard Danish Yachts in Skagen, will set new

standards within the fast-growing market for transportation

of staff to and from installations off shore. It is primarily to

and from wind farms, but work is also done to find other busi-

ness areas off shore. The concept and the construction of the

vessel secure a much better safety and comfort for the ser-

vicemen and craftsmen, who are being moved to and from

the wind farms, primarily in and around England, Germany,

and Denmark. Seasickness and similar discomfort have been

a growing problem, because the servicemen most often are

not seafarers, who are used to sailing with small vessels at

the ocean, and the FOB-SWATH newbuilding to a larger extent

solves this problem. It does not eliminate rough sea onboard;

the movements are, however, via the Swath principle (Small

Waterplace Area Twin Hull) and a special patented trimming

system, reduced significantly on FOB SWATH 2 and it thereby

gives better comfort for the people onboard.

Gert Laisbo, Laisbo Marine, who is representative for the 73

year old Norwegian shipowner Fredrik Odfjell, who has con-

tracted the vessel – and several sister vessels – via the com-

pany FOB SWATH AS, says:

“There is no doubt; FOB SWATH 2 will move the barrier for the

standard of this type of transportation at sea, especially for

the passengers, who will get very fine surroundings onboard.

Actually, we have reached the point where we have consid-

ered using a slogan such as: Business Class only. Meaning:

Only first class transports onboard our new vessel”.

FOB SWATH 2, which has been designed by Hauschildt Ma-

rine in cooperation with the shipowner, is equipped to the

class notation COMF-V (3) of Det Norske Veritas (DNV), which

secures that the vessel fulfills specific criteria for noise and

vibrations that influence the comfort for the passengers and

staff, just as it addresses the safety and operationality of the

vessel.

In the passenger saloon with room for 24 people, each person

has an airplane seat with leather cover like an airplane seat

on business class, which is equipped with tapping for head-

phones, so not everyone has to listen to the sound track to

the film, which is being shown on the large TV screen that ev-

eryone can see. The seats can be laid down in an angle of 45

degrees and they have built-in footstool. Further the saloon

is equipped with pantry for smaller refreshments. Emphasize

has been put to the fact that the windows in the saloon are

so large that the passengers have a view even when they sit

down. On the way to the saloon the passengers will pass a

changing room, where survival suits are being put out to dry

(if they are wet by rain or spindrift) and are being equipped

with drying tubes inside.

“With thought of the vessel’s working area we have done

much to think of large scale operation, when we designed FOB

SWATH 2 in cooperation with Hauschildt Marine”, Gert Laisbo

tells. That is, to think the features, which are known from the

larger ocean-going vessels into this much smaller vessels,

and this fact clearly improves the quality of the newbuilding.

FOB newbuilding sets new standardsBy Bent Mikkelsen

Photo: Skagen H

avn


FOB newbuilding sets new standards

FOB SWATH 2 is built as a passenger vessel and therefore ful-

fills the same security demands as other large passenger ves-

sels (such as Queen Mary 2)”, Gert Laisbo says.

The maximum staff at the newbuilding is up to five people,

of whom 3 have separate cabins and a double cabin, all with

own toilet and bath. And thereby FOB SWATH 2 can stay at sea

in up to a week (the amount of provisions and fuel that can

be onboard corresponds to this period) and thereby it is an

advantage for a charter. If for example servicemen and crafts-

men live onboard a hotel vessel near the wind farm, then FOB

SWATH 2 can stay in the neighborhood instead of sailing to

the base port, which is the case with a number of the existing

units that are used in the same service. They have, moreover,

own galley/mess with full facilities.

The hull for FOB SWATH 2 is built by composites – carbon

fibers on each side of a core material. It is done at Danish

Yachts. The choice fell on composites so as to reduce weight

in the construction, and by using composites the weight has

been significantly reduced, and it can be measured directly

at the fuel consumption and at the speed. With the design of

FOB SWATH 2 thought has been given to reduce the vessel’s

environmental influence, and the vessel is equipped with a

Clean Sea notation, among other things because the vessel’s

fuel tanks are not placed directly to the side, but are placed

between the two hulls, as emphasize has also been laid on

safe bunkering with a closed bunker system, with overflow

alarm tank and overflow tank through a central connecting

piece with pipe connection to all the tanks.

“The system with the SWATH hull works at FOB SWATH 2 sail-

ing with the two lowest pontoons in the surface of the water

in so-called catamaran mode during sailing to and from the

hotel vessel or port to the wind farm, and safely arrived at the

wind farm, the vessel is trimmed down in SWATH by adding

seawater in the pontoons, which thereby will come under wa-

ter, and the stability is increased significantly.

This system in combination with the patented trimming sys-

tem, where air is used to suck up/press water in and out of

four trim tanks (up to 1500 litres of water in three seconds) se-

cures further reduced movements in higher significant wave

height and reduces the critical situations, where the passen-

gers must leave the vessel to the wind turbine and/or other

vessels. A further special feature is that the composites hull

is slightly ice-strengthened in certain areas. It is not because

we are going to sail in ice or are going to be an icebreaker,

we want, however, to give a charter the possibility of working

during winter periods, where for example ice is broken in a

port or there is mild ice at the ocean, and we have therefore

chosen to strengthen the hull”, Gert Laisbo says.

Emphasize is also laid on the safety by having separate en-

gine rooms with main engines and auxiliary engines in each

room, which is coupled on with full redundancy, which again

means that the vessel can be self-supporting even if an en-

gine should drop out of service.

“With FOB SWATH 1, which already sails in charter for Siemens

and is of the same type, it is already proven that the vessels

can sail and operate safely in up to 2.5 metres of significant

wave height, and it is also proven that this can be done with

one engine in up to 2 metres of significant wave height”, Gert

Laisbo says.

FOB SWATH 2 and the following 3 sister vessels are already

from the delivery secured work for the next five years, as

they are taken in on bareboat charter by A2SEA A/S, which

is owned by Siemens Windpower and DONG Energy. The cur-

rent order is four units, at the moment, but the shipowner has

secured himself options for further newbuildings from Danish

Yachts, as there is an increasing awareness and demand for

these vessels, which day after day prove that they continue,

where other vessels in the sector must give up.

FOB SWATH 2 is, as mentioned, owned by FOB SWAT AS,

which operates the vessel via Offshore Windservice A/S, a

Danish company with address in Hvide Sande, which also is

the home port for the newbuilding. Fredrik Odfjell has since

the first pioneer days in the servicing of the wind energy sec-

tor chosen to operate his company under Danish flag and

from Denmark. It started in 2003 with the catamaran FOB Jr,

a small vessel, which turned out to be interesting with a car-

danic suspensioned working deck. It gave the servicemen a

stable platform. Frederik Odfjell in 2007 was in charge for the

first trimaran ever built for commercial use. It was FOB TRIM,

which is a newbuilding from the shipyard Hvide Sande Skibs-

& Bådebyggeri. It works for the moment in the German part of

the North Sea. The name FOB is composed by Fredrik Odfjell

and the wife Berit.

''FOB SWATH 2 will move the barrier for the standard of this type of transportation at sea


danish maritime magazine 5.2012

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