levels in shipping, 'excellence's' purpose is to talk about the simplest strategy
ever: .... the near future given the involvement German companies have with the ...
Edition 1 | 2013
excellence Partner Magazine of the BBC Chartering Group
26 page 2 | excellence
A message from Svend Andersen
‘Shipping is our passion – excellence is the fuel on our trip’
South America driving the game
On investments, investors and helpers
Project shipping in ‘Latam’
Challenges and opportunities for further growth
BBC = Best Business Centerfold
Values create value - excellence delivers
A glimpse behind the pearls
Two ships, two pearls - two names
‘BBC Congo’ series fully deployed – rejuvenation ongoing
Raising the bar
Our crew makes the difference
European Short Sea Services
Bringing heavy lift capacity to a regional market
BBC Chartering Russian Service Delivering crucial logistics to central Russia
More capacity on Caribbean service
Caytrans BBC adds ‘BBC Ocean’ to regional fleet
BBC Chartering events Q3-2013
Meet BBC Chartering representatives at upcoming events
Dear readers It’s great to be back with our new excellence magazine in 2013. It’s my personal pleasure to present you this excellence with lots of inspiring stories from BBC Chartering. Sometimes we have to make choices and in this issue our CEO Svend Andersen highlights what BBC Chartering has accomplished in the past year and how this aligns with our future strategy. As we will be at the Intermodal tradeshow in Sao Paulo this April, we highlight some South America topics. We will be present at the Transrussia in Moscow as well and take this as an opportunity to talk about our Russian service. And as the Breakbulk exhibition in Antwerp is coming in May again we wanted to have a closer look at our European Short Sea Services, too. As our last issue showcased some BBC Chartering activity in the offshore, oil and gas sector we have not specifically mentioned the contributions that are made by masters and crews onboard our vessels. We all know they are crucial and we know that coordinating between office and vessel is often a challenge, but we are more than happy when good cooperation delivers positive client feedback as you can see inside this issue and as this was the case of client McDermott. Today the world is changing quickly, and this is driven also by the way information travels in a technically savvy and
Imprint Responsible for content: Svend Andersen Raymond Fisch Contact and editing: Raymond Fisch [email protected]
globally connected community. Content is not only shared via analogue means (e.g. printed matters or telephone conversations) but also digitally. Everything travels faster than ever and we can reach wide audiences through this in no time. Today I am proud that this ‘excellence’ issue has a combined on- and offline distribution of some 25.000 copies globally! This is a great success, and we are pleased by the reputation of ‘excellence’ and the difference this publication makes. This we owe to you, and we would like to thank you for sharing the ‘excellence spirit’ in our global shipping community. As the BBC Chartering purpose is to raise performance levels in shipping, ‘excellence’s’ purpose is to talk about the simplest strategy ever: satisfied customers! I kindly wish you may get inspired by this issue proposing you may be ‘driven by excellence’. Very warm regards,
Raymond Fisch ‘excellence’ editor
Suggestions to: [email protected]
Published by: BBC Chartering & Logistic GmbH & Co. KG Hafenstr. 10b · 26789 Leer · Germany © BBC Chartering 2013 - All rights reserved
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Dear business partners and friends We hope you had a successful start in 2013 so far. It is a pleasure again presenting you this first excellence issue in 2013. Our ‘world in motion’ continues to grow together and with that our challenges are becoming more global, however, our mission stays the same: offering you highest levels of performance on your shipping project, for any cargo, at any port on any service. I like to take the opportunity of the first ‘excellence’ in 2013 to quickly highlight a few interesting facts about our business as this might give you a better understanding of what you can expect from us in the future. As partners to a global community we continue to upgrade our fleet for you and finish our recent new-building programs by taking delivery of all remaining heavy-lift vessels this year. Also we are proud to have just completed two other vessel programs (BBC Congo type this January and BBC Bergen type last year) which added to our vessel portfolio enable us to offer you an even younger and more economic MPV/HL fleet. Also we continue to grow our business by matching our fleet portfolio with market demands to ensure we continue to become your partner of choice in the future.
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Improving market access on a global scale continues to be a major theme for us this year as well. Easy access to fleet and services of BBC Chartering will bring leading shipping solutions to you in any corner of the world. Here we look forward to provide you the local service you need to manage and execute your transport efficiently and safe, adhering to highest quality standards. Our global network of professionals continues to be aware and alert as always for any business opportunity and prepares for this on a continuous basis. As the past has shown, we invite you to consider BBC Chartering as the place where innovative shipping solutions are developed and executed for any shipping request, no matter if this is on tramp, liner or contract services. ‘Energy’ continues to be the driving theme for many shipping projects and demand is driven by offshore, oil and gas, mining and infrastructure projects worldwide. Those sectors are busier than ever executing important assignments especially in emerging economies. BBC Chartering is pleased to support these projects on a global scale as we continue to provide tailor made solutions for our clients in any field directly or indirectly involved in such programs.
» At BBC Chartering shipping is our passion, and excellence is the fuel on our trip. «
We look forward to tackling industry challenges this year which we believe will give us plenty of exciting new opportunities – upcoming international events are important occasions for us to meet you and talk with you about how we can help to deliver your project within time and budget. As everyone knows, the shipping industry is about to recover from recent economic troubles, and many ship owners, operators and carriers had and have to take a blow in the ongoing aftermath of the crisis. This impacts and changes the competitive landscape and forces market participants to adapt to new situations albeit often in a ‘struggle for existence’. As a consequence we need to question existing patterns of thinking and behavior today more than ever, but at the same time we also like to give you confidence in our performance when we become your partner of choice. Our quest of delivering and raising performance levels is never ending and continues to drive us in this difficult economic environment. At BBC Chartering shipping is our passion, and excellence is the fuel on our trip. I like to personally thank you for staying connected with us in 2013 where I hope we have the chance to work together on many new projects. But
now, please enjoy this ‘excellence’ issue which I hope will be both, entertaining and inspiring for you, delivering some stories from the world of project shipping, the world of BBC Chartering. We hope to see you soon and catch up with you personally at one of our upcoming events, Intermodal in Sao Paulo this April, the Transrussia in Moscow or in Antwerp in May this year for the ‘Breakbulk Europe’. Hope to see you soon, no matter where!
Svend Andersen Chief Executive Officer
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South America driving the game On investments, investors and helpers Foreign Direct Investments into South America FDI stands for ‘Foreign Direct Investment ’ and represents the amount of money attracted by a country or region that is not funded nationally but internationally. Looking at foreign direct investments can tell us a lot about an economy and its attractiveness as a potential market. South America is a global driver of foreign investments and the purpose of this article is to highlight some of the dynamics the region faces. According to the United Nations Conference on Trade and Development (www.unctad.org) World Investment Report, FDI flows to Latin America and the Caribbean increased by 16% to a record $217 billion in 2011, driven mainly by increasing inflows to South America (up 34%). The inflows to Central America and the Caribbean excluding offshore financial centers increased by 4% while those to the offshore financial centers registered a 4% decrease. The high growth of FDI in South America was mainly due to its expanding consumer markets, high growth rates and natural-resource endowment. In 2011 Brazil remained by far the largest FDI target, with inflows increasing by 37% to $67 billion – 55% of the total in South America and 31% of the total in the region. The size of Brazil’s domestic market explains its attractiveness, as does its strategic position in South America, which brings within easy reach other emerging and fast-growing markets, such as Argentina, Chile, Colombia and Peru. Another important driver for FDI growth to South America has been the relatively high rate of return on investments in the region. Since 2003, South American countries have witnessed significant growth of income on FDI: from an annual average of $11 billion during 1994–2002, equivalent
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to 0.84% of the subregion’s GDP, to an annual average of $60 billion during 2003–2011, equivalent to 2.44% of GDP. In 2011, FDI income increased another 17%, reaching $95 billion. The rise in FDI income during the 2000s, in parallel with the increase in FDI stock (a nine-fold increase between 1994 and 2011) and share in GDP (from 11 to 28% share in current GDP), was in part driven by increased investment in extractive industries, which have enjoyed high profitability and have attracted a significant part of FDI inflows since the commodity price boom. The rates of return on inward FDI in the extractive industry in Argentina and Chile were about 20% in 2010 and 30%
in 2011, while those on all inward FDI were about 11% in 2010 and 14% in 2011. The importance of FDI income is evident in the high share of reinvested earnings, which represented 45% of FDI flows to South American countries other than Brazil in 2003–2011, compared with only 11% in 1994–2002. Although high and rapidly growing FDI profits boost investment in productive capacity in host countries, they also entail risks, where cash flows are available for repatriation or for short-term investment in local markets.
Where has the investment into Brazil come from? According to a 2011 study provided by Ernst & Young, the US continued to be the largest investor in Brazil in terms of projects (up 43% to 149%), value (US$12.4 billion) and
jobs created (35,195). This is largely explained by the geographic proximity and the development of trade agreements between the two countries. Historically US investors have primarily targeted the ICT, manufacturing, business services and financial services sectors in Brazil. The UK jumped from being the fifth largest investor in Brazil in 2010 to second in 2011 by project numbers with 45 and the total value of UK investment was nearly on a par with the US at US$ 12.2 billion. Although UK companies have been present in Brazil for many years, they are now looking to expand their investment across a wider array of sectors including business services, manufacturing, mining, metals, and ICT. Spain was the third largest investor in Brazil with Germany fourth in terms of projects numbers. Although the value of German investments
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remains low at US$3.0 billion this is likely to increase in the near future given the involvement German companies have with the infrastructure upgrades for the World Cup and the Rio 2016 Games. Both Germany and Japan, which ranks fifth and increased its FDI projects by 57% in 2011, are also beginning to invest heavily in the energy sector. China has emerged as the fifth largest investor in Brazil in terms of value of FDI with investment increasing six-fold since 2010 and a 70% increase in project numbers. It also ranks fifth with the number of jobs created at 9,049. The recent boom in the Brazilian consumer market has also led to an increase in investments by small and medium-sized Chinese companies in the country‘s manufacturing sector. In the future, Chinese investment is also expected to be directed at the areas of technology, logistics and infrastructure. The overall momentum across all sectors is also expected to increase as a result of a joint communiqué signed in 2011 to promote cooperation in trade and investment. As Jorge Menegassi, CEO, South America and Brazil at Ernst & Young explains, “Brazil is an attractive investment destination (…) thanks to its vast natural resources in oil, gas and minerals.”
A proud partner and helper Some of the largest projects in the world are underway in South America. BBC Chartering is ‘indirectly’ involved in most of them and continues to be an important pillar for the logistics of these projects. BBC Chartering vessels have been involved in delivering components and equipment for the many mining ventures for Iron ore, Copper, Nickel, Coal, Gold, Uranium and Lithium in Argentina, Brazil, Bolivia, Chile, Colombia, and Peru. Also the energy sector requires heavy lift and multipurpose tonnage from BBC Chartering which can handle mission critical energy and power equipment and components. Moreover the transport and infrastructure industry requires partners that can reliably deliver logistic equipment (e.g. harbor cranes or rail cars) to South America. Today BBC Chartering covers South America with one of the most extensive liner networks for project cargoes in the world. For the past 12 years the carrier not only brought important equipment and machinery to South America, BBC vessels are also helping the continent’s export industry to stay competitive. Due to the unique force of the BBC Chartering network, there are plenty of options for shippers to make use of attractive market opportunities on a BBC Chartering service. With established regular services BBC covers both coasts, first with the Americana Line in the East, and second with the Andino Express Line in the West. Embedded in a global network, there is a North American Service, a European Service and a Far East Service. Also a regular service to
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the Middle East and a service from the Mediterranean is available. Depending on the connection, the carrier’s service frequencies vary from one to four sailings per month. Svend Andersen is proud that South America follows its path and states, “The future holds its challenges but we are confident that the hosting of the soccer World Cup in 2014 and the Rio 2016 Games will more than contribute to the ongoing success and development of Latam and Brazil. It may help to attract significant additional investments into the country which will in turn require the world to work together to get things done. In this respect, BBC Chartering considers itself a proud partner to South America: in the past, today and in the future.”
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Project shipping in ‘Latam’ Challenges and opportunities for further growth
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BBC Chartering holds a strong footprint in Latin America (Latam) due to an early focus on serving the continent’s logistical needs. Being there for over 12 years the first regular liner connections to West coast and East Coast destinations were introduced back in 2005. Since then BBC Chartering has expanded upon its position and today offers an important network of shipping services for project cargoes in South America. Almost one fifth of BBC Chartering’s current global staff works in South America, in offices located in Brazil, Argentina, Chile, Peru, Colombia and Ecuador. Today Brazil Intermodal 2013 stages South America’s most important sector event and brings together major players in the logistics industry, cargo transportation and foreign trade. The show plays a major role also in BBC Chartering’s event calendar and we like to take this opportunity to talk to Washington de Barros and Natalie Jones, BBC Chartering’s ‘Latam’ project cargo veterans and local spearheads about current industry trends and how they believe BBC Chartering can create value in the emerging economies of South America and Brazil in the future. How has the economic crisis impacted business in South America? How has the market been faring there in the past few years? Washington de Barros (WdB): The economy of Brazil, as a whole, stayed behind expectations in 2012. I think that the growth rate of ‘only’ 2.7 % in 2012 is a result of a reduced volume of goods manufactured by the industry, smaller profits and subsequently a cut in investments that would normally extend the country’s production capacity. Also for South America as a whole, expectation for 2013 are moderate after a growth of 4.5% in 2012, the overall projection for the continent is only 2.7% according to UN’s global outlook. Also the devaluation of the Real currency compared to the US Dollar caused Brazil to lose the 6th place among the largest economies in the world, and we now rank again behind England.
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What were specific draw-backs in Brazil and what should be improved? WdB: The oil and gas sector got hit worst. Tenders to explore deposits were suspended back in 2008 because of changes in legislation. As a consequence, projects were delayed significantly, some even indefinite. An example is the Comperj-Petrochemical complex in Rio de Janeiro. The complex should have been operational already in 2011, but its first refinery shall not be ready before 2015. We hope the government will undertake further measures providing frame parameters for sustainable growth. With that we should be able to reinforce confidence and trust in Brazil’s economy and underline its growth ability attracting further foreign investments. How do you see growth prospects in the future and how would they impact breakbulk shipping?
Spanish companies e.g. Isolux Corsán, Acciona and Copasa are very active. The project portfolio of these companies include four lots of Rodoanel Trecho Norte de Sao Paulo, the power transmission line between Macapá and Manaus, the BRs 116 and 324, Line 4 of the São Paulo Subway and the breakwaters of the Açu superport. Certainly this list will increase with the new tenders on highways, railways, ports and airports, which were launched in the second half of last year. How is BBC Chartering perceived in South America? NJ: BBC Chartering has expanded significantly since its beginning in South America and continues to believe in the market. We feel the market becomes more and more aware of our efforts, our fleet quality and the level of performance that we can deliver.
Natalie Jones (NJ): We think the projections for Brazil’s economy are more positive for 2013 and consecutive years. The progress seems a result of the infrastructure works for the world’s two largest sporting events: the World Cup 2014 and the Olympics 2016. Large projects require the handling of all types of breakbulk cargoes for the construction and maintenance of roads, improvements in public transport, ports, airports, stadiums and arenas for these events.
BBC Chartering currently has about 13-18 vessels alone at the Brazilian coast per month. Besides enjoying premier connections for project imports, this gives Brazilian shippers many opportunities to move export cargo to any port in the world. Our experience is that clients are excited about BBC Chartering when they hear about us. Still there is a large share of the market that is not educated about our service offerings. Building our brand, increasing awareness of our possibilities is an ongoing job and there is much to do.
To what extent are foreign construction companies involved in that?
In your opinion, what are further challenges that need to be tackled to foster growth in Brazil?
WdB: We see many European companies taking major shares of the pie here. They already have contracts exceeding R$ 10 billion and there is appetite for more.
WdB: We feel that current port infrastructure is one of the biggest obstacles to the expansion of the maritime industry in the country and the continent. Productivity of
Washington de Barros
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Brazilian ports limits the potential of the shipping sector and shows huge catch-up potential. This also represents an obstacle to the growth of exports and imports. In reality we face extremely congested terminals and surrounding areas. Moreover, the lack of sufficient intermodal road and rail-connections hinder the transportation of cargoes from their origin to ports and vice-versa. This increases time-losses, operating cost, and slows supply chains and growth of services. Unfortunately, this often may derail the shipper’s choice of selecting less economic road transportation over maritime transport through a misperceived door-to-door differential. Are there any services of special interest that you would like to highlight for the East Coast of South America? NJ: We have introduced a Mediterranean-Brazil route, operating regularly in ports of Turkey (Izmir) and Italy (Genoa and Marghera). Here we have two ships per month. In addition, new export contracts for the Persian Gulf were signed which now allow us to serve this route directly every two to three months. In general we look for business to increase the number of contracts requiring regular shipments where BBC Chartering has a competitive advantage. Regarding the capacity increase on your WCSA Service from Houston – would you care to expand upon this? Similarly, what was the reasoning behind your recent Caribbean expansion? WdB: South America has always been an important market for us. We were one of the first shipping companies that saw the tremendous potential of ‘Latam’
as an emerging market. Today it is still one of our most important strategic growth markets. Our network of liner connections to and from South America is subject to constant changes. Adapting to more demand for our services prompting us to increase capacity on the WCSA trade is good news to share. We are proud to be the only carrier that can offer this weekly service. The same goes for the service we offer through CaytransBBC (a joint venture service we have with DanGulf Shipping): seeing the demand there, we wanted to offer the market regular sailings to Venezuela and Trinidad as well. How do your client’s needs differ in South America to the rest of the world? NJ: Responding to differentiating client needs is certainly a strength of BBC Chartering. We think on one hand it is about technical aspects, planning, safe execution and flexibility regarding the project delivery, and on the other hand it is about a direct personal relation with a client. Each interaction and transaction is different and we strive to maintain both a productive working relationships and a solution oriented attitude on any project. With that we can resolve most issues and create mutually beneficial outcomes on any assignment. Our goal is to make it work with them and for them as it is our mission is to raise performance standards in the industry. This is what our clients appreciate around the world.
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Values create value excellence delivers
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A glimpse behind the pearls Two ships, two pearls - two names You may have seen in our last excellence issue a centerfold picture where the ‘BBC Pearl’ was transporting the ‘Black Pearl’. We thought this was an interesting coincidence and take this as an opportunity to come up with this unique essay honoring the two floating devices. Did you know that the ‘Black Pearl’ was originally called ‘Wicked Wench’? According to the fiction, the ship was registered to the East India Trading Co. and owned by Cutler Beckett, the EITC Director for West Africa. Jack Sparrow captained the ‘Wicked Wench’ for Cutler Beckett for about a year, hauling various cargoes, but he refused to haul slaves. Hoping to recruit Sparrow as one of his many ‘operatives’, he had dispatched Sparrow on a mission to find the lost island of Kerma in order to perk up a treasure trove there. But Sparrow followed his own agenda, double-crossed his employer and claimed he couldn‘t locate the island. Suspicious that Sparrow had indeed found both the island and the treasure, but had not informed him, Beckett determined to browbeat the captain into obedience, demanded that the young captain transport a cargo of slaves to the New World. Initially Sparrow agreed, but when he realized that he was betraying the ‘Wicked Wench’, as well as himself, he rebelled and freed the slaves by taking them to Kerma for safe asylum. Furious that Sparrow had flouted his orders and stolen from him, Beckett had Sparrow thrown into jail. After allowing him to languish for a couple of months, he had him transported to the ‘Wicked Wench‘s’ anchorage, about a mile from the coast of West Africa, near Calabar on the Bight of Benin. There, after personally branding Sparrow with the ‘P’ brand (so he‘d be forever branded a pirate) Cutler Beckett gave the order to abandon his own ship, the ‘Wicked Wench’, in order to totally demoralize his prisoner.
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Sparrow attempted to rescue his burning, foundering ship, but he was too late. The ‘Wicked Wench’ turned into an inferno; she sank and took Jack with her. But, while dying, Sparrow called upon Davy Jones, a character in charge of ferrying souls who died at sea to the ‘other side’, and struck a bargain with him: his soul and one hundred years serving aboard the ‘Flying Dutchman’ in return for a continued human existence of thirteen years as captain, plus saving the ‘Wicked Wench’ and transforming her into the fastest, most
dangerous pirate ship sailing the seven seas. Jack christened his resurrected ‘Wench’, now a black vessel with an angel figurehead, ‘The Black Pearl’. It will be difficult to come up with a similar story for the ‘BBC Pearl’. However there is a commonality as ‘BBC Pearl’ is the second branded name of this vessel which also runs under the name ‘North Sea Carrier’ for her owners. As exciting adventures today, she is employed to face the logistical challenges of a globalized world
and carries project and heavy-lift cargo and occasionally story-loaded cargo, such as the ‘Black Pearl’. It’s not due to our lack of creativity that we confidently wish that above story should be avoided and that all parties involved, i.e. captain, crew, owner and last BBC Chartering as operators have good reason to work together…. working for our clients, raising performance levels in our industry.
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Mission accomplished ‘BBC Congo’ series fully deployed – rejuvenation ongoing BBC Chartering has one of the most recognized heavy lift fleet modernization programs in the project shipping industry underway. As part of this the company announces the completion of a vessel program which is known as the ‘BBC Congo’ series.
Chartering. Like her six sister vessels she is a 17,000dwt vessel and features 2x 250mt and 1x 80mt lifting capacity. This vessel can be seen as a modernized heavy lift successor of the popular 17,500dwt ‘BBC Ems’ type series which only featured 3x 80mt cranes.
It was this January when the last and seventh member of this program the ‘BBC Danube’ left the shipyard in Xingang, China and commenced her service for BBC
The BBC Congo is a multipurpose vessel with conventional design. The 143.14m long vessel has a bulbous bow, a wheelhouse in the aft and an open water type
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stern, single rudder and a single fixed propeller driven by a slow speed diesel engine. The vessel’s cargo holds have been constructed with a double skin, a double bottom strengthened for heavy cargoes (up to 20mt/m²) and side tanks. The cargo hold area is divided into two parts by a vertical HFO tank arrangement contributing to the torsional strength of the 22.8m wide hull. Cargo hold #1 is 35.00m long and has a minimum beam of 13,21m and a maximum beam of 18,60m. Cargo hold #2 is 52,50m long and 18,60m wide. Both holds are box shaped and designed to carry tween-deck hatch covers but are also laid out for the carriage of containers. The vessel is fitted for the carriage of dangerous goods of all IMO classes. As reported earlier BBC Chartering is also engaged in two other new building heavy lift fleet programs. The programs
under way are first the 14 unit counting 14,360dwt ‘BBC Amber’ series, featuring 2x 400mt lifting capacity, and second, the eight unit counting 9,300dwt ‘BBC Everest’ type with 2x 350mt lifting gear. Both programs are expected to be completed in the course of 2013. So far this year, BBC Chartering took delivery of the ‘BBC Moonstone’ this January, the ninth new-building of the 14 unit series, and last December of the ‘BBC Vesuvius’, the seventh new-building of the 9,300dwt series. Meanwhile sixteen of 22 vessels are operational and BBC Chartering’s CEO Svend Andersen states, ‘We are proud of our fleet and the new vessels. With them we raise the bar in a competitive industry where we help our clients with an unrivaled level of performance and tailor-made MPV / HL shipping solutions worldwide.’
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Raising the bar Our crew makes the difference In July 2011 oilfield services firm McDermott International Inc. won the subsea contract for deepwater offshore engineering, construction and installation on the Macedon project. The SURF (Subsea, Umbilical, Riser and Flowlines) contract is McDermott‘s first SURF project in Australia. The work scope includes detailed engineering, procurement, fabrication, transportation and installation of a 48-mile-long (77-kilometer-long), 20-inch-diameter pipeline, as well as the installation of subsea umbilicals and flexible flowlines in waters measuring up to 591 feet (180 meters) deep.
As we reported earlier, BBC Chartering was contracted to support the logistics and coordinate all aspects of this unique assignment through it`s project division. The shore based team was aware of the fact, that loading and transporting cables of that magnitude requires much attention to detail, a high level of commitment and a quality attitude. And realizing such a project successfully also needed good collaboration and open communication not only with the client, but also with vessel and crew. For the BBC Chartering office team it was an exciting experience to work on this project that also represented a ‘first of its kind’ for BBC Chartering. The team was asked to deliver a ‘turnkey project’ coordinating all works throughout the process of planning, engineering, manufacturing, and executing the transport. The project team started with calculating and planning the required sea-fastening elements ensuring their design was sufficient and worked the first time. Delivering the job however is crucial and managing the interaction of client, crew and suppliers during loading and unloading operations represent ‘the moments of truth’ for any project. In this case operations had to be managed over various locations in Europe and as stated before, the ‘BBC Nordland’ was discharged in Batam (Indonesia)
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Crew of BBC Nordland
where the umbilical was spooled over a triple banking operation onto McDermott’s ‘North Ocean 102’, a DP2 construction support vessel. The BBC Chartering team reports it enjoyed an excellent direct working relationship with the crew onboard the ‘BBC Nordland’ who did an exceptional job. Also with zero incident reported this mission was highly successful. For the same project, in a different lot, the m/v Dollart was the selected standby vessel involved in various supply missions to McDermott’s DP2 cable lay vessel ‘North Ocean 105’. For both vessels, the client was pleased with the crew’s performance and the general handling of the project.
We are proud of all accomplishments made throughout this project and we would like to say thank you for an excep-tional project delivery and engagement to Capt. Sergey Tregubov and Capt. Sergei Mikhaylov and their crew on the BBC Nordland. Although the M/V Dollart has left the fleet, we extend our thanks to Capt. Igor Tretyakov and Capt. Yury Gordienko and their crew for executing the offshore supply mission in the Bay of Exmouth. We look forward to seeing much more of such exemplary co-operation in the future, both on land and on board our vessels and hope to prove over and over again: The best strategy is a satisfied customer!
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European Short Sea Services Bringing heavy lift capacity to a regional market Clearly there are a few considerations when geared project carriers are employed for short distances and the value needs to be visible for clients if the decision is in favor of such a solution. The reasons that normally speak against the employment of such vessels on local trades, especially in the North Sea and Baltic are their higher charter rates compared to smaller coaster tonnage and barge transports which are widely available there. The higher rates for geared vessels seem justified as these are more investment intense than their un-geared competitors plus they often need to be mobilized from their global trades to North European waters. The question rather is: What for? Especially if offering such a service for a single client would not work, as utilization of the vessel may not be sufficient either. Normally the operator may decide to leave such vessels in their respective international trades.
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Hence, deciding to position a vessel is a risk, but also an opportunity. Theoretically there is enough business to go for – but practically marketing the service’s value to the relevant customers becomes the crucial task to get the business and make it really work. BBC Chartering has made the call and meanwhile employed already a few geared vessels in regional trades in North European waters. So the market is there and the innovation was worth pursuing for BBC so far. Mainly driven by the oil and gas industry but also by the offshore wind business there is activity of specialist fabrication yards in the Scandinavian countries and consolidation at the northern coast of the European continent. Next to shipping, handling, and storing often suitable lifting equipment is required to manage logistics of oversized yard output. The niche comes through the equipment and hence the value which geared BBC Chartering vessels can create in total cost comparison to clients. As one of the most prominent examples BBC Chartering supplied the BBC Germany to deliver transition pieces on a contract basis from Bremen to Cuxhaven – a 100 mile distance, a perfect match in the logistic strategy for the project’s heavy supplies. Other cargoes were contracted in between and mainly aim at helping clients consolidate their cargo for further international dispatch. Jens Meilvang, Chief Chartering Officer of BBC Chartering explains the value behind the European short sea service in this way: ‘At BBC Chartering we support our clients with vessels that are suited to access ports with low draft characteristics and yet offer the ability to handle very heavy and oversized cargo. Other advantages we bring to the table are our capabilities to respond to clients HSEQ requirements and also to deliver transport engineering if this is required.’ Mr. Meilvang adds, ‘The global network of BBC Chartering makes things work, irrespective of the shipping challenge! For instance helping to consolidate the cargo for clients and then helping again to ship consolidated cargo to other international destinations is a unique value our clients appreciate having through one supplier.’ Excellence in shipping means to ‘move and improve’ also in creating market opportunities for regional and interfacing shipping solutions. We like to congratulate on this successful service design and the delivered value to our customers. We can conclude that a critical assessment of any short sea solutions and interfacing international logistics can mean no harm – but it may add significant value if you talk to BBC Chartering.
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BBC Chartering Russian Service Delivering crucial logistics to central Russia Praxair, Inc. is the largest industrial gases company in North and South America, and one of the largest worldwide, with sales totaling $11 billion in 2012. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. It was back in 2011 when Praxair Rus, a subsidiary of
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Praxair, won a contract to supply oxygen, nitrogen and argon to NTMK, a division of the EVRAZ Group, a leading global steel company with its main steel production facilities in Russia. 3,000 tons per day of industrial gases need to be delivered to NTMK in Nizhniy Tagil, located in the centre of the industrial region of Sverdlovsk in central Russia. For this Praxair had to build new, energyefficient air separation plants. Managing its logistics for
the project Praxair contracted Agility Logistic, a global leader in integrated logistics. The plants are scheduled to start production this year and aim to replace older air separation plants. Together with the LOGIS Group, BBC Chartering was contracted by Agility for the shipment of two complete sets of air separation units and other plant components providing integrated marine logistics for this important project in 2012. BBC Chartering was in charge of the ocean seariver transport and the barging share of the transport was managed by LOGIS. The project comprised the shipping of over 20,000 frt including 21 pieces of heavy lift cargo. A large share of this shipment was delivered on board the BBC Summer on her maiden voyage from Shanghai to Mariupol. In Mariupol the cargo was trans-shipped onto four Russian sea-river vessels that then took the cargo to Nizhnekamsk (heavy lift cargo) and to Perm (general cargo) for discharge. The heavy lift cargoes shipped to Nizhnekamsk were loaded onto two ro-ro river barges. These two ro-ro barges made five voyages to Verkhnechusovskiy Gorodki (Chusovaya river) where they were discharged over ro-ro ramps. Following their unloading, the heavy lift items got rolled of the barges and were trucked to their final destination, Nishniy Tagil by the client. Next to the cargo of the BBC Summer in Mariupol, a second shipment of about 6,000 frt needed to be loaded in Antwerp onboard two Russian sea-river vessels. Routed via Gibraltar these vessels were going to Rostov-on-Don in the Azov Sea first for custom clearance. From there they progressed for unloading in Nizhnekamsk and Perm. Before the cargoes were delivered at their final destinations, the whole logistic execution took more than two months starting with the arrival of BBC Summer in Mariupol. This included 33 days for barging and ro-ro operations and it was finished ‘just-in-time’ on October 27, 2012, 3 days before the Kama River got closed for navigation in the winter. BBC Chartering’s office in St. Petersburg was instrumental in performing this project and with that demonstrated the carrier’s execution capabilities and administrative expertise on its Russian service. After successful completion of the project the client expressed his satisfaction about a job well done, thanking for ‘an excellent performance over all stages of the project.’ Also BBC Chartering’s local spearhead in St. Petersburg, Sergey Timofeev stated ‘We are proud we could help to realize this project with our ‘BBC Russian Services’ and like to thank all partners involved for their trust and the delivered performance.’
From its roots in emerging markets, Agility brings efficiency to supply chains in some of the globe’s most challenging environments, personal service, a global footprint and customized capabilities in developed countries and emerging economies alike. As publicly traded company, Agility is one of the world’s leading providers of integrated logistics with close to $6 billion in annual revenue and more than 22,000 employees in 550 offices across 100 countries. Agility‘s commercial business, Global Integrated Logistics (GIL), is headquartered in Switzerland. Agility GIL provides supply chain solutions to meet complex and traditional customer needs. GIL offers air, sea and road freight forwarding, warehousing, distribution and specialized services in project logistics, fairs and events, fuels and chemicals. Agility‘s unique collection of portfolio businesses includes Agility Defense & Government Services, a logistics provider to governments, ministries of defense and international organizations. Agility‘s Infrastructure group of companies manages commercial and industrial real estate and offers solutions in customs optimization and clearance, waste management and recycling, aviation services, remote infrastructure and life support. www.agilitylogistics.com
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More capacity on Caribbean service Caytrans BBC adds ‘BBC Ocean’ to regional fleet Dan-Gulf Shipping announced that the m/v BBC Ocean joined the CaytransBBC fleet in February this year. The BBC Ocean is a 6,150dwt tween deck multipurpose vessel with 329,450cbf bale capacity featuring 120mt lifting capacity. The BBC Ocean is now operated by CaytransBBC which offers a weekly break-bulk liner service between Houston and Mobile to the North Coast of South America, the Caribbean and Central America. The larger vessel and the increased capacity allow the line to provide higher levels of service to clients.
‘Adding a larger vessel to our fleet reflects our positive outlook on the market and is a direct result of the continued growth of our service. We believe that the BBC Ocean will allow us to offer better options for larger parcels into and out of the North Coast of South America’ said Mac Bruton, Vice President for Sales and Marketing at Dan-Gulf. Caytrans BBC LLC is a joint venture between BBC Chartering & Logistics GmbH & Co. KG and Caytrans Project Services (Americas) Ltd. The CaytransBBC Service is managed by Dan-Gulf Shipping. With sales jointly handled by BBC Chartering USA and Dan-Gulf, the service has enjoyed a steady and healthy growth over the years thanks to its customer service, its operating professionals and its competitive pricing. CaytransBBC operates between five and six box shaped multipurpose tweendeckers between 3,500 and 6,150dwt with lifting capacity of up to 120mt. The service has the ability to quickly tap into the large fleet of multipurpose tweendeckers operated by BBC Chartering, giving access to vessels with lifting capacity of up to 800mt.
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BBC Events Q3/2013 Extemin, Arequipa Staged every second year, EXTEMIN is a major Peruvian industry event, representing the leading meeting place for global suppliers of the local mining industry. More than 1,000 companies are present and over 30,000 professionals are expected at this event which is again framed by the meetings, talks and conferences of the 31st edition of the PERUMIN Mining Convention. Event date Sep. 16 - 20, 2013
Location Centro de Conventiones Cerro Juli; Arequipa, Peru, Booth# 427/428
Breakbulk Americas, New Orleans Breakbulk Americas is the largest and most important gathering in North America for companies involved in the shipping of heavy-lift, project cargo and traditional breakbulk cargoes. Over 4000 participants and about 280 exhibitors attended the Breakbulk Americas event in 2012. The audience consists of professionals from leading carriers, forwarders, ports, terminals, and packers all of which offer the expertise and resources to handle non-standardized and oversized cargoes. Event date Sep. 24 - 26, 2013
Location Ernest N. Morial Convention Center New Orleans, LA USA, Booth# 701
Gallimarkt, Leer The city of Leer, the second largest German shipping hub, today is a vital supporter of lifeblood to global trade through its ship owners, its shipping people and the services provided by them worldwide. For the 16th time in a row BBC Chartering takes the city’s annual Gallimarkt, introduced some 505 years ago in 1508, as an opportunity to invite business partners to enjoy a unique dinner party with employees in BBC Chartering’s hometown. Event date Oct. 10, 2013
Location ‘The Shipping Tent’ ad-hoc dining hall and ballroom; Leer, Germany
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