Greek shipping

as resilient as ever
Published in association with
N O V E M B E R 2 0 1 3
HELLAS supp 2013 cover 14/11/2013 11:41 Page 1
IFC Hellas13 ABS 12/11/2013 10:34 Page 1
1
Contents
3. Greek shipping leads the way
5. Owners invest over 12bn this year
Private Equity favours the Greeks
6. Sino-Hellenic newbuilding links
7. POSIDONIA UPDATE: a 4-page preview of the June 2014 event
11. China steps up port investment
13. Greek owners warm to third-party management
14. SPECIAL FEATURE: The Liberty Congress
Including a guest article on Enhancing
Co-operation, Sharing Responsibility
within Shipping, contributed by ABS,
principal sponsor of
16. Shakeout looms for ferry sector
CHAIRMAN: Chris Hayman
FOUNDER: Themis Vokos
Published in November 2013
as a supplement to
Seatrade magazine
PUBLISHER: Mary Bond
EDITOR: Bob Jaques
CHIEF WRITER: David Glass
CONTRIBUTORS: Ian Middleton,
Barry Parker
DESIGN & PRODUCTION:
Amanda Sebborn-Connelly
INTERNATIONAL SALES:
Luke Perry
GLOBAL SALES DIRECTOR:
Andrew Callaghan
HEAD OFFICE
Seatrade House, 42 North Station Road,
Colchester CO1 1RB, UK
Tel: +44 1206 545121 Fax: +44 1206 545190
Editorial: editorial@seatrade-global.com
Advertising: sales@seatrade-global.com
MIDDLE EAST
Trevor Perreira, General Manager Middle East
and Indian Subcontinent
email: trevor@seatrade-middleeast.ae
Richard Johnson, Sales Manager Middle East
email: rjohnson@seatrade-middleeast.ae
Tel: +971 4 324 5344 Fax: +971 4 324 5345
SINGAPORE
Helen Ong, Senior Regional Sales Manager,
South East Asia
Tel: +65 6294 2280 Fax: +65 6294 2780
email: helenong@seatrade-asia.com
HONG KONG
Mainak (Victor) Halder,
Regional Sales Manager Asia
Tel: +852 2293 2268 Fax: +852 2293 2344
email: mainak.halder@seatradehkg.com
SHANGHAI
Li Xiaoli, Executive VP, China
Tel: +86 139 1772 7671
email: lixiaoli@seatrade-asia.com
AMERICAS
Christophe Cahen, Regional Manager
Central and South America
Tel: +57 1866 1171
email: ccahen@infomaronline.com
Seatrade Communications Ltd 2013
Although every effort has been made
to ensure that the information in this
publication is correct, Seatrade
Communications Ltd accept no
liabilities for any inaccuracies.
Published in association with
Cover photo: George Christakis
With just six months to go until Posidonia 2014, welcome to the 2013 issue
of new annual publication Hellas maritime containing an exclusive preview
of the 24th edition of that biennial event taking place in Athens next June.
Greece remains the world's leading shipping nation but all too often its
complex workings remain a mystery to many overseas observers. Hellas
maritime aims to set that straight, explaining in clear terms some of the
Greek developments - and players - of most significance to the
international market.
Next year's edition of Hellas maritime will be published in June 2014,
exclusive to Posidonia, to coincide with the event that acts as showcase
of Greek shipping to the world. Happy reading!
A Greek Primer
N O V E M B E R 2 0 1 3
HELLAS_2013_edit 14/11/2013 13:13 Page 1
Gemak Hellas 13 30/10/2013 09:53 Page 1 02 Hellas13 Gemak 12/11/2013 10:35 Page 1
3
Greeks remain the worlds leading
shipowners controlling 260m dwt of tonnage,
ahead of the Japanese with 229m dwt,
Chinese with 161m dwt and Germans with
131m dwt, according to latest statistics from
Bremen-based ISL. And that Greek-owned
fleet has expanded by 85m dwt since the
start of 2009 an impressive growth rate of
10.4% pa in the face of the economic crisis
and contraction of ship lending by banks.
Such growth is explained in part by Greek
owners ability to adapt and take
advantage of change, as well as massive
new capital injections, demonstrating a
profound commitment to shipping and
investment in new eco and green vessels,
comments analyst Ted Petropoulos of
Petrofin Research.
As the following pages recount, Greek
owners continue to be prolific in the
newbuilding market, in many cases
diversifying into new types of tonnage
outside their traditional operating sector(s),
especially when it comes to containerships
and Very Large Gas Carriers.
The George Economou Group (DryShips,
Ocean Rig, TMS Tankers, TMS Bulkers)
continues to expand its fleet with some $3bn
worth of drillships on order; Economou is also
building 90,000dwt gas carriers.
Theodore Angelopoulos / Metrostar
Management is again building VLCCs, not
really a surprise, but a new fleet of container
ships is more unexpected.
Traditional operator of bulkers and
tankers, Nicos S Lemos / Enesel is now
taking delivery of a 10-ship series of
13,800teu container ships to be employed
by Evergreen.
Greeces largest owner, John
Angelicoussis (Anangel, Maran Tankers,
Maran Gas) is leading the rush for gas
ships with some 18 fuel-efficient vessels
still to be delivered by South Koreas
Daewoo and Hyundai. Peter G Livanos /
GasLog is building VLGCs at Samsung HI,
and other Greek ownerships building gas
carriers include Thenamaris / Dinos
Martinos; Dynagas / George Procopiou;
Dorian LPG / John Hadjipateras, a
newcomer to Oslos stock market; and
most recently Byzantine Maritime /
Marios Stafilopatis.
Gregory Callimanopulos continues to
diversify the Toisa Ltd fleet of offshore and
sub-sea support vessels having contracted
Korea's Hyundai HI to build a multipurpose
offshore construction vessel designed by
the Ulstein Group. The 17,000dwt MOCV is
largest vessel to date with an X-BOW and
will take the Tosia fleet to some 29 units. At
the same time, Callimanopulos Marine
Management Services is building a series
of kamsarmax bulk carriers.
Harry Vafias / Stealth continues to carve
out a formidable position in the LPG
market with prolific orders at specialised
Japanese yards.
Then theres Angeliki Frangou at the helm of
Navios, which now has a highly diversified
fleet of over 100 ships totalling more than
10m dwt including product tankers as well as
bulkers, plus considerable logistics holdings
in South America. In November, Greeces
First Lady of shipping announced she was
also entering the containership sector.
Fleet expansion programmes apart, Greeces
shipping community has also thrown its
weight behind efforts to bolster national
coffers, led by the Union of Greek
Shipowners (UGS), which agreed to promote
a tax on all vessels, irrespective of flag, in a
bid to raise funds for the Greek state.
Shipping can be the engine for growth and
jobs at the core of the Greek maritime
cluster, said Theodore Veniamis, president
of the UGS.
Addressing a Piraeus Marine Club working
luncheon on October 30, Greeces
Shipping and Aegean minister, Miltiadis
Varvitsiotis, commended UGS for the
stance it had taken. Support for its call to
pay extra tax had been strong, he
reported, with 90% of Greek-flag vessels
responding and 60% of foreign flagged,
Greek-controlled vessels following suit.
Indeed, three of the key people involved in
Greeces rescue, Prime Minister Antonis
Samaras, Finance minister Yiannis
Stournaras and National Bank of Greece
ceo Alexandros Tourkolias (a former ship
financier) now see the shipping industry as
a driving force behind Greeces new
extrovert economy and government efforts
to build infrastructure and create jobs.
Despite all the challenges, confidence in
Greek shipping is rising and most owners
believe a recovery is only but a matter of time,
concludes Petropoulos in Petrofins latest
annual study of the Greek maritime cluster.
Greek shipping leads the way
Despite Greece being in the sixth year of a recession, deepened
by spending cuts and tax increases linked to a e240bn
($325bn) bailout by the troika of the IMF, European Union and
European Central Bank, Greek shipping has not only displayed
remarkable resistance but an ability to expand regardless.
Dynagas 155,000cbm LNG newbuilding
HELLAS_2013_edit 14/11/2013 13:13 Page 2
4
04 Hellas13 MultiAd 13/11/2013 12:02 Page 4
5
Although its motivations differ from
those of bankers, alternative capital
has been welcome at a perceived low
point of industry cycles. In certain
deals, the mould has been one of a
blind pool, where financial investors,
funnelled into a PE fund, gain an
opportunity to link up with an
experienced shipowner.
An early deal saw the Pittas family, with their Euroseas
entity, team up with Eton Park and Rhone Capital, who
gained the first shot (right of first refusal) to invest in
smaller container vessels. Costamare did a similar hook-
up, on a larger scale, for up to $500m with York Capital
(see also p.13), a well known value investor (translation:
buy low-sell high, hopefully).
Greek owner Oceanbulk (Petros Pappas) has linked up with
Oaktree Capital best known for backing Peter
Georgioupoloss General Maritime and Genco Shipping to
build 9,000teu container vessels, and also to dabble in
secondhand bulkers. Star Bulk, chaired by Pappas with ex-
head of the Athens Stock Exchange Spyros Capralos as ceo,
has also benefited from Oaktrees largesse, with the Los
Angeles-based investor now owning 22% of the Greek-
controlled company.
Shippings most recent bright spot has been gas tankers. In
late October, the Eletson companies announced a huge
linkage with the Blackstone Group, where the two players
can invest up to $700m (including existing ships put in by the
Greek owner) in LPG tankers of 12,000cbm 22,000cbm
size. Also in this sector, Navigator Gas, now controlled by PE
titan Wilbur Ross, saw the Milonas family as investors during
an earlier, restructuring phase.
Private Equity favours the Greeks
At the Navios Limited Partners investor
meeting held in New York at end-October,
chairman and ceo Angeliki Frangou
responded to a question about Private Equity
(PE) as follows: In every shipping cycle, there
are always new types of investors who come
in, said Frangou. This time, the PE investors
are coming in, and filling a void left as the
banks have pulled back.
Athens-based boutique financier Eurofin keeps a close eye on
local and international shipping developments. In its last two
newsletters it notes some good news on the Greek economy
where the Government is
'broadly' on track to meet 2013
fiscal targets and internal
devaluation since 2009 has
restored three quarters of
the competitiveness lost in
the 2000s.
Although Greek shipping has
not suffered from the country's
financial crisis like other sectors
of the Greek economy, it has of
course been impacted by the
global financial crisis.
However, a strengthening of vessel earnings recently,
particularly in the dry bulk market, has led to a rash of Greek
newbuilding orders and secondhand purchases taking
advantage of low prices.
Eurofin says the Greeks have bought more than 300
secondhand ships this year - three times as many as their
nearest rivals China. Many owners have been deploying the
liquidity amassed during the boom years of 2003-2008. Eurofin
estimates that Greek interests have made capital investments in
the shipping industry amounting to more than $12bn this year
Shortage of traditional bank financing has posed a problem for
owners but they have found alternative financing via stock and
bond issues and joint ventures with cash-rich private equity
firms. Eurofin notes that the success of Greek owners in asset
play attracted the attention of private equity outfits and led to a
number of deals with reputable shipping families in the last
couple of years by the likes of
Oaktree, York Capital, Matlin
Patterson, Texas Pacific Group,
Perella Weinberg Partners, Kelso
and Carlyle and others (see below
for more detail).
Those few banks still in the
business target the same blue
chip owners, though helpfully
they are witnessing a reduction
in pricing for the first time in five
years, says Eurofin.
Meanwhile, given the continued overcapacity in traditional
shipping sectors the owners are diversifying into new
areas such as LNG, LPG and Offshore where earnings
have held up on the back of high barriers to entry and the
US shale phenomenon.
Owners invest over $12bn this year
Greece may have its domestic economic
woes but the Greek-controlled fleet seems
to be going from strength to strength, albeit
via a number of restructurings in this era of
low rates and trade contraction, holding on
to its position of controlling the worlds
largest fleet in terms of cargo capacity.
Angeliki Frangou
HELLAS_2013_edit 14/11/2013 13:20 Page 3
6
George Economou units Cardiff and Dryships
lead the field with at least 19 vessels of 3.3m dwt
on order between them in China, a mix of
tankers and bulk carriers, followed by Polembros
Shipping with 10 units of 2m dwt, all bulkers.
Part of the attraction for Greeks has been the
growing provision of Chinese finance for
newbuildings. Chinas EXIM Bank is thought to
currently have a shipping portfolio of nearly $1bn
worth of loans to a pantheon of leading Greek
owners including Palios, Angelicoussis,
Constantakopoulos, Coustas, Callimanopulos,
Procopiou, Laskiridis and Veniamis, while China
Development Bank has about quarter that
amount to the likes of Economou and
Bodouroglou.
Chinese banks have shown a certain
dynamism in shipping finance over the last few
years, partly because of the inability of traditional
shipping financiers to cover the market,
comments Athens-based ship finance
consultancy XRTC headed by George Xiradakis,
provider of the above figures.
However, the road is narrow and accessibility is
not easy for everyone, it adds.
For starters, the fact that only newbuilding
vessels are financed by Chinese banks shows
their appetite to support the nations shipbuilding
industry rather than expand banks financing
activities in shipping.
Also, banks have to comply with very strict
regulations imposed by Peoples Bank of China,
and for most ship-lending transactions to date
have required guarantees from the countrys
Export Credit Agency, Sinosure.
XRTC has advised on numerous Sinosure-
backed transactions and can attest that access
to Sinosure is neither a straightforward nor a fast
process and requires an experienced Chinese
bank/arranger. Only cherry-picked clients and
deals are approved and Sinosure requires deals
to be of a significant size. Other important factors
are the shipping sector in which the owner is
involved and their nationality.
The credit process at Sinosure requires the
lender to deeply analyse the borrowers capacity,
evaluate the risks and makes the relevant
presentation to the export credit agency. The
ultimate connection of the debt provider with the
local exporter plays an important role as it
proves that it has a direct knowledge of the
benefits of the national economy of the specific
export, comments XRTC.
The whole process is hugely time consuming
with approval times having lengthened from
three months in the past to nine months or
longer today. Also, approval of one deal does
not necessarily mean subsequent requests
involving the same owner will be approved.
On a positive note XRTC concludes that at
present we can say that Terms and Conditions
provided through Sinosure-backed loans are
acceptable internationally and comply with the
markets needs.
Greek owners involvement with Chinese newbuilding
yards has further intensified this year and as of end
September they were reckoned to have some 188
vessels of 16.6m dwt on order in the PRC. Of these 61
vessels of 5.8m dwt were ordered in just the first nine
months of this year.
Sino-Hellenic newbuilding links
The road to Chinese
finance is narrow
and accessibility is
not for everyone.
George Economou signs Offshore co-operation deal with CCS
S
O
U
R
C
E
:

X
R
T
C

(
A
S

O
F

E
N
D
-
S
E
P
T
E
M
B
E
R

2
0
1
3
)
HELLAS_2013_edit 14/11/2013 13:14 Page 4
Posidonia 2014: the maritime
industry's must-attend event
Greek newbuilding orders continue to flow, suggesting the countrys
owners have a more upbeat assessment of shippings future than
many international analysts - or perhaps a secret compass to help
navigate the industry towards economic recovery.
7
POSIDONIA UPDATE
Either way, few would deny that it is Greeces
proud seafaring tradition and wealth of technical
expertise that lie at the heart of its shipowners
sure-footed sense of direction.
For these reasons Posidonia 2014 will once again
act as a magnet for the entire global shipping
community, eager to renew links with the local
shipowning community and to gain insights into
efficient ship operations in todays difficult market
conditions. Taking place at the Metropolitan Expo
in Athens from June 2-6, it will be the 24th edition
of what is widely acknowledged as the worlds
most prestigious shipping event.
The Greek shipping tradition has been built
upon the pillars of ingenuity, innovation, acumen
and risk appetite, says Theodore Vokos,
executive director of Posidonia Exhibitions SA.
Todays robust Greek newbuilding orderbook in
the face of adversity is due to their willingness to
bet on the future of both traditional shipping
sectors and other types of sophisticated
tonnage such as offshore tonnage and LNG
carriers, the dominant mode of transport for
liquefied natural gas.
In the ten months to 31 October 2013 Greek ship
owners committed just over $8bn to ship
newbuilding projects, according to Newsfront
publication. On that day the outstanding
orderbook from 87 Greek companies stood at
392 ships of 32.3m dwt.
Make-up of the orderbook is impressive. As
expected bulk carriers top the list with 164 ships
on order, ranging from 208,000dwt down to
handysize, but when it comes to combined energy
tonnage there are also 96 tankers, including nine
VLCCs, plus 48 LNG carriers and 26 LPG carriers.
In addition, there are 48 container ships as well as
car carriers and a MOCV (multipurpose offshore
construction vessel).
It is worth noting that a total of 38 LNG carriers
worth US$7bn will be delivered to Greek
shipowners from 2013 to 2015, further boosting
the global share of the Greek-owned LNG fleet,
points out Vokos. Coupled with a multi-billion
dollar upgrade of the existing oceangoing fleet
and further investments in newbuildings, Greek
companies continue to play a dominant role in
global marine developments.
All of which means that the full gamut of
technical supplier companies such as
shipbuilders and repairers, engine and
equipment manufacturers, navigation and
software solution providers and more, as
well as key maritime service sectors such as
shipbroking, classification, finance, legal
and insurance, all have good reason to
Greece's then Prime Minister Panagiotis Pikramenos opens 2012 exhibition
HELLAS_2013_edit 14/11/2013 13:14 Page 5
POSIDONIA UPDATE
Must-attend event continued
maintain closest possible relations with the
Greek market.
Where better to network and meaningfully
engage with Greek owners and their technical
and operational managers than Posidonia 2014,
one of the worlds leading maritime trade
exhibitions and a proven venue for confirming
deals and creating synergies between sellers
and buyers?
Few events can match Posidonias scale of
international buyers, says Vokos. In 2012 the
stands of more than 1,870 exhibitors attracted over
18,500 buyers from 92 countries. Posidonia 2014
is the opportunity for all players in world shipping
to meet and review challenges, opportunities,
trends and innovations with the operators of more
than 4,000 vessels approaching 260m tonnes of
carrying capacity.
In addition the exhibition serves as a focus for
the traditional Posidonia Week now really
more like a fortnight of seminars,
conferences, sporting events, business
receptions and private dinners all taking place
in the sidelines.
Networking opportunities abound as the busy
Posidonia exhibition floor, sidebar sporting
events and unrivalled social calendar all serve
up exhibitors, visitors and delegates with a
truly sumptuous menu of onsite and offsite
meeting options.
Having earned itself a reputation as a
bellwether of trends and developments in the
international shipping industry, Posidonia also
serves as an impromptu think-tank for global
shipping decision makers, government
officials, policy makers and regulators who
gather in Athens to reflect on past issues,
current agendas and future solutions (see
article opposite).
When Athens welcomes the world
Next June the world shipping community will be beating a path to the door
of the Metropolitan Expo Centre, the exciting new venue at the Athens
international Airport complex to which Posidonia relocated in 2012. It is the
largest exhibition and conference venue in Greece with almost 50,000
square metres of space and flexible, multifunctional rooms suitable for
conferences and seminars.
"We will be welcoming visitors from a total of 92 countries stretching from China to the Cook Islands and
from the USA to the UAE," says Posidonia Exhibitions' Theodore Vokos. "It's a testament to Posidonia's
international appeal, and at the 2014 event we hope to set a new record attendance of over 20,000 visitors."
"Posidonia visitors and exhibitors contribute some e60 million to Athens' local economy," he adds, "in
sectors like transportation, hospitality and catering. This is something the local community has come to
expect, and the Posidonia event has been eagerly awaited every second year for more than four decades."
8
Posidonia Exhibitions chairman Themis Vokos addresses the opening session of the 2012 event
The Posidonia Cup regatta, on May 30, will
once again launch the start of Posidonia week
HELLAS_2013_edit 14/11/2013 13:15 Page 6
Posidonia 2014 will feature the most dynamic
and diverse schedule of sidebar conferences
and seminars in the events 45-year history, the
organisers have announced.
Ever since we introduced the Posidonia
Conferences and Seminars Programme, we
have seen an insatiable appetite for panels
discussing all facets of the shipping business,
says Theodore Vokos, executive director of
Posidonia Exhibitions. We are delighted to
confirm that next years programme will be
bigger and better than ever before, with the
participation of leading figures from the
international maritime community.
Designed to tackle far-reaching issues affecting
the maritime community from regulatory,
technological and financial perspectives, the
programme of conferences and seminars lined
up so far for the five-day shipping event will be
providing useful insight into all aspects of the
shipping industry.
Political and economic developments are
rapidly shaping a new operational environment
for shipping companies, which are a vital link at
the centre of the global supply chain, continues
Vokos. This means that shipping executives
must be updated and informed with the latest
developments on both the mega and the micro
scale and our programme sets out an agenda for
the whole global shipping industry.
The week-long packed programme will kick off
on Tuesday June 3 with the TradeWinds
Shipowners Forum, which proved a sell-out
start to Posidonia 2012. The Forum, comprising
two presentation and discussion sessions
combined with high-level networking breaks,
will once again provide a platform for interactive
discussion led by a panel of experts, with topics
chosen to reflect the industrys key priorities
and concerns.
The subject of Eco-ships and cutting-edge
technologies will be addressed in a seminar
organised by the Japan Ship Exporters
Association, on Wednesday 4 June, introducing
latest products of Japans shipbuilding industry
to the global shipping community.
Following the success of its Posidonia 2012
event, the Hellenic Marine Environment
Protection Association (HELMEPA) will also host
a conference on Wednesday entitled Strategies
for energy saving on existing ships.
Maritime leaders wanting to transform
IT/technology from a cost-centre to an enabler of
business intelligence and innovation at the heart
of their business cannot afford to miss
Futurenautics, a new addition to Posidonias
conference and seminars programme.
In other events SKF Hellas will host seminars on
Condition Monitoring and Environmental
Monitoring Systems; ALBA Graduate Business
School at The American College of Greece will
present a seminar on current trends in the
shipping industry; and NAMEPA (the North
American Marine Environment Protection
Association) will host a panel on the status of
environmental regulation including
implementation of recent changes to MARPOL.
Further additions to the Posidonia 2014
Conferences & Seminars Programme will be
announced soon. To see the continuously
updated programme please visit
www.posidonia-events.com
Shipsoccer, a highlight sporting event of Posidonia, will take place on June 1,
attracting five-a-side football teams from the global shipping community
Packed conference sidebar programme
POSIDONIA UPDATE
9
HELLAS_2013_edit 14/11/2013 13:16 Page 7
Posidonia 2014 is shaping up as a potent
reminder to the industry itself and the world at
large of what is on offer to help ensure world
trade is carried safely, on environmentally
friendly vessels employing the most up-to-
date methods and technology.
The role of Greeks in shipping is well known.
They comprise a large community, well versed
in maritime matters and are ready to lead from
the front, and are canny at mixing the
innovative with the traditional. This ability sees
them serving as a shipping industry barometer.
So its hardly surprising the interest in
Posidonia 2014, to be held 2-6 June 2014 at
the state-of-the-art Metropolitan Expo,
spanning some 50,000sq mtr within the Athens
international airport complex, is already high.
We have already had enquiries from
exhibitors from 92 countries and could have
more than 20 national pavilions says
Theodore Vokos, executive director,
Posidonia Exhibitions SA.
What is really interesting is the scope of
those expressing an interest in taking
exhibition space, he adds. With Greeks
among the most active group ordering new
ships as the fleet renewal programme
continues, manufacturers of equipment
developed to meet the need for greater
efficiency in ship operation while adhering
environmental requirements has seen the
introduction of new categories or products
and services in our exhibitor list, as the 88
categories we now have do not cover some of
the newer management and efficiency tools.
Likewise, as Greek shipping companies
have diversified into new sectors and are
ordering vessels to meet specific trades, like
gas carriers of all sorts, container ships from
the smallest to the very large, MOCVs
(multipurpose offshore construction
vessels), specialist equipment
manufacturers see Posidonia as an
opportunity to not only connect with Greek
owners, but with the wider potential
marketplace, says Vokos.
The Greek fleet
renewal and
diversification process
has seen a number of
Greek shipowners
entering new sectors,
such as Angelicoussis,
Procopiou, Veniamis,
Martinos, Palios, P.G.
Livanos, Embiricos
and N S Lemos have invested in ice class
ships, container ships and gas carriers,
while Economou and Callimanopulos
continue investing in the drillship and OSV
sectors respectively.
The current newbuilding and retrofit action,
spearheaded by the Greeks but followed by
other major players in the industry, has
resulted in the greatest number of shipyards
ever planning to participate in Posidonia.
From around the globe more than 300
shipyards from some 60 countries, ranging
from traditional Posidonia exhibitors like the
Japan Ship Exporters Association (JSEA)
and the Korean Offshore and Shipbuilding
Association (KOSHIPA) to latest additions
like Zamil Offshore and Oman Drydocks.
As Union of Greek Shipowners, president
Theodoros Veniamis has said Posidonia
provides world shipping with a platform for
commercial partnerships, to exhibit and
demonstrate technical innovation, and
solutions to environmental requirements
and sensitivities.
Veniamis also sees Posidonia as
contributing to re-establishing a climate of
optimism among the stakeholders of our
industry regarding the prospects of the
sector and its significant contribution to the
welfare of nations.
The success of a regular occurring event is
the number of repeaters.
Posidonia 2014 will be the 24th and some
companies have attended them all. One of
these is Norways classification society Det
Norske Veritas, having participated in
Posidonia since its inception. However, of
course this time it will be under the new guise
of DNV GL after having completed its merger
with Germanys Germanischer Lloyd, another
long-time supporter of Posidonia, making it
the worlds largest classification society.
Another impressive fact is that some long
time repeaters, like the Chinese and Dutch
national pavilions, keep constantly growing
and are expected to grow by 15% and 10%
respectively in 2014.
On the other hand, as a result of the
industrys needs to meet new challenges like
piracy, the list of exhibitors keeps growing
and diversifying. Not only are there new
technology providers who make shipping
environmentally safer and more cost
effective, there are also new service
providers such as maritime security
companies, as well as major shipping
companies which have chosen Posidonia to
promote their new image to the global
maritime community, such as Bahri, the
National Shipping Company of Saudi Arabia.
As industry representatives from over 90
countries prepare to gather in Athens in
June 2014, highlighting the resilience of
this important industry, Posidonia is
expected to not only showcase the
industrys latest achievements, but also add
momentum to a period of renewed
optimism for the maritime community.
POSIDONIA UPDATE
Shipyard presence next year
to be Posidonia's largest yet
Though shipping is still experiencing tough days, the journey is
not as rough as it has been over the past four years or so.
Indeed, as the planning for Posidonia 2014 moves to a higher
gear it is becoming clearer that shippings greatest biennial
gathering is being seen as the ideal opportunity to assess where
the maritime industry has been, and where it is going.
10
Theodore Veniamis
HELLAS_2013_edit 14/11/2013 13:16 Page 8
11
In late summer Prime minister Antonis Samaras
stepped in to end a stalemate that was
threatening to sour ever-more-cosy relations
between the Athens government and the
Chinese shipping giant. At issue was the
proposed expansion of the Piraeus Container
Terminal, which the Chinese subsidiary operates
under a 35-year concession worth $5bn.
We wish to strengthen our strategic relationship
with China, said Shipping and Aegean minister,
Miltiadis Varvitsiotis, after the government had
opted to sell the majority of shares in the facility.
The deal had been stalled over concern from the
European Union over possible infringements of
EU competition rules.
State privatisation agency TAIPED is also
anxious to expedite sale of the Thessaloniki Port
Authority, in combination with the sale of
Hellenic Railways operating company, Trainose.
Officials believe that selling off Greece's prime
northern port together with the rail concession
that serves it may prove a catalyst for success,
raising the value of both assets and the
revenues that will accrue.
Privatisation of the countrys two largest ports
has attracted considerable international interest
and their sale has long been seen as one of the
better deals the government will strike in its
massive privatisation programme.
Late September, the port sales received a boost
of sorts when former chairman of the Piraeus
Port Authority, Constantinos Maniatopoulos, 72,
was appointed president of TAIPED.
Athens has developed a close relationship with
China, Foreign ministry official Panayiotis
Michalos going as far as to say that the shipping
industry is a leading parameter of new
government agreements for the development of
Greek-Chinese relations in the business
environment and development of the economy.
However, Sun Liwei,
China's commercial
attach in Greece, has
called for less red-tape
and bureaucracy. He
says the country needs
to accelerate all
necessary measures and
procedures for
restructuring the country's investment and
development model in order to absorb
Chinese investments.
Sun Liwei notes how the investment by Cosco
Pacific in the two container terminals at the port
of Piraeus is benefiting Greece, adding that
there is strong Chinese interest in Greece. He
points out that China and Chinese investors
have always wanted equal rights in the profits of
both parties, and for this reason the Chinese
shipbuilding industry has made strides to
deliver good quality ships at competitive prices
to Greek owners.
Haisheng Zhou, general
manager of the China
Classification Society in
Greece, notes the rapid
penetration of Chinese
shipyards by Greeks and
their steadily increasing
acceptance of CCS. He
acknowledges the need
to improve services offered by China, saying this
remains an obligation for them, which will in turn
decide the future of Greek-Chinese relations.
Kyriakos Dermatis, chairman of Intermodal
Shipbroking, comments: A small country like
ours has the power of global shipping and this
can be our bargaining chip. In faraway China
we have found a friend and ally, we have
found a partner that by building our co-
operation can give a helping hand to the
economy of our country.
China steps up port investment
Shipping minister, Miltiadis
Varvitsiotis, addresses a
Piraeus Marine Club
working luncheon
With Greeces privatisation programme falling further and further behind its and the
countrys international creditors goals, the government is set on expediting the sale of
the Piraeus Port Authority (PPA). This follows an agreement in principle with Cosco
Pacific, the port terminals arm of the Cosco (China Ocean Shipping Co) Group, for a
e240m ($321.6m) expansion of container terminal facilities.
In faraway China
we have found a
friend and ally, we
have found a partner
that by building our
co-operation can
give a helping hand
to the economy of
our country.
HELLAS_2013_edit 14/11/2013 13:17 Page 9
Connecting the global
maritime community
at Posidonia 2014
Weve got it covered
have you?
Showcase
your business
by advertising
with Seatrade:
Unique print and online
advertising opportunities
for targeting specic maritime
sectors and markets.
No other publisher offers
you more selective coverage
around Posidonia!
Seatrade magazine
Ofcial international publication
with global circulation
Hellas Maritime
Ofcial Posidonia journal circulated to
targeted readers and at the event in
delegate bags and on conference seats
Seatrade Global
Ofcial online publication with
Live From event reporting
Posidonia Today
Ofcial Posidonia show daily
circulated to all event participants
www.seatrade-global.com
RESERVE SPACE NOW:
Ian Vernau,
ivernau@seatrade-global.com
[Seatrade magazine]
Luke Perry,
lperry@seatrade-global.com
[Seatrade Global and Hellas Maritime]
Marie Gresham,
mgresham@seatrade-global.com
[Posidonia Today]
or call: +44 1206 545121
Published by
Greek ship
as resilient as
T H E I N T E R N A T I O N A L M A G A Z I N E O F G R E E K S H I P P I N G
TT HH EE
magazine
Over 40 years of global maritime coverage
Issue 4 December 2013
the new normal?
Overcapacity:
Issue 4 Dec 2013 cover 23/10/2013 15:01 Page 1
GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGrrrrrrrrreeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeekkkkkkkkkkkkkkkkkkkkkkkk ssssssssssssssssssssssssssssssssssssssssssssssssshhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiipppppppppppppppppppppppppppppppppppp
aaaaaaaas rrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeesssssssssssssssssssssssssssssssssssssssssssssssiiiiiiiiiiiiiilllllllllllllllllllllllliiiiiiiiiiiiiiiiiiiiiiiiiiiiieeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnntttttttttttttttttttttttttttttttttttttttttttttttttt aaaaas
yy
e
S t d H ll 13 i dd 1 12/11/2013 16 14
12 Hellas13 Seatrade 12/11/2013 16:19 Page 1
13
However, that thinking may be changing as a
younger generation of owners is placing as
much emphasis on financing their
companies as they are on pure technical
management of vessels, which they are
prepared to countenance outsourcing, at
least in part.
A case in point is containership giant
Costamare, now run by Costis V.
Constantakopoulos following the passing of
his father, company founder Captain
Vassilis, in 2011. In early 2013 it announced
a partnership agreement with V.Ships, the
worlds largest shipmanager.
Under the deal V.Ships will service at least 25
of Costamares fleet of 56 vessels (including
eight newbuildings on order), the ships
existing handlers having moved to within the
offices of V.Ships Greece, overall manager of
the new operation. Later the intention is to
target third-party Greek business.
The co-operation will provide us flexibility
and presently allow us to pursue our growth
strategy more safely and efficiently,
Constantakopoulus told Seatrade. I think
being able to reduce or increase the size of
your operations almost instantly is of great
importance for every shipping company due
to the cyclical nature of the markets. The
deal also allows Costamare to benchmark
our costs and services in order to improve,
he added.
V.Ships group director shipmanagement,
Matt Dunlop, also pointed to each company
being able to call on the others extensive
network of suppliers and affiliate companies.
Then at end-May with the new technical
management agreement in place
Costamare announced a joint venture with
Private Equity firm York Capital Management
of the US. The new jv in which Costamare
will have a minimum 25% and maximum 49%
stake is to invest up to $500m in new
container business over the next six years.
The V.Ships deal is not the first tie-up between
Greek owner and overseas manager. In early
2010 illustrious Greek owner Capt. Panagiotis
Tsakos formed a joint venture with Schoeller
Holdings Cyprus-based unit Columbia
Shipmanagement (CSM), dubbed Tsakos
Columbia Shipmanagement (TCM). Before
that CSM had been providing Tsakos with
management services for many years,
relates md Capt. Dirk Fry, and the
chemistry was so good we felt it would be
beneficial to do a jv for the whole Tsakos fleet.
TCM is located in the Athens offices of
Tsakos but with its own separate entrance.
Several important benefits, such as joint
negotiation of prices, have already resulted.
With a fleet like Tsakos, which is mostly
tankers but also some bulkers, you cant cut
corners, comments Fry, but you can still
achieve some synergies. The two
companies also co-operate closely on
crewing activities with Tsakos for example
using CSMs crewing offices in East Europe.
Questioned if TCM is potentially open for
third-party business, Fry replies certainly it
took some time to set things up but now
were ready. In fact, TCM has already taken
on its first outside client, he discloses, and
we will continue on this.
Meanwhile, the Cyprus office of Bernhard
Schulte Shipmanagement (then called
Hanseatic) was awarded one of the first
Greek ships ever outsourced to third party
management the tanker Penelope
belonging to Capt. Tsakos in the 1980s.
BSMs Greek business has since gone from
strength to strength and the company
currently manages vessels for several
leading companies including Thenamaris
and Alpha Tankers. We are now expanding
the Athens office we opened in 2005 and
have to move to a bigger space, reports
BSM ceo Rajaish Bajpaee.
It has always been said that Greek owners are distrustful of
third party ship managers, preferring to run vessels
themselves and to avoid any alliances with companies that
could be considered competitors.
Greek owners warm to
third-party management
Costamare HQ
Capt. Panagiotis Tsakos (right) attends
Maritime Cyprus with Columbia's Capt. Dirk Fry
HELLAS_2013_edit 14/11/2013 13:17 Page 10
14
As we know, its a nice idea in principle.
Unfortunately intense competition and
sometimes misguided regulatory initiatives
are the underlying dynamics that tend to
shape the relationship between the owner,
the class society and, in the case of a
newbuild, the shipyard.
Such dynamics have been shaping these
relationships since time immemorial but that
should not mean they are immutable. If
there is a willingness to change, it can be
achieved. With regulation having such a
widespread impact on all our activities it is
natural to consider how increased co-
operation could improve things.
I suggest it starts with education. Some of
the significant legislative and regulatory
initiatives of the past few years have been
well intentioned reactions to high profile
casualties or initiatives on subjects that we
can agree must be tackled even if we
disagree with the approach.
At ABS we have been arguing for some time
that we all need to be much more proactive
with national administrations and the
European Commission. Where are our allies
within these bodies, providing a voice of
reason in the highly charged post-casualty
atmosphere or when measures are being
discussed that have unintended
consequences for shipping?
We need more of this type of proactive
thinking applied to the manner in which
industry requires class to develop and
maintain its standards. In the early days of
classification we actually rated vessels as
good, middling or bad. We dont do that
anymore class is a simple pass or fail test
and the class standard is the minimum
acceptable standard, not the highest. Are
we meeting the needs of the wider industry
with this approach based on a
simple pass or fail test to the minimum
acceptable standard?
Apparently not, because if we were, there
would be no charterer-inspired CAP
(Condition Assesment Program). It is telling
that the CAP3 standard roughly equates to
class minimum standards while top flight
charterers are demanding a CAP1 or at the
very least a CAP2 rating.
Much as we would like to impose a higher
required standard, rather than merely offer
an optional notation, it is practically
impossible to implement. One would think it
a straightforward task to adjust class
standards to address this, but again
commercial realities intrude. Shipyards are
driven by understandable profit motives
they build a ship to acceptable standards for
the best possible cost.
If one class society unilaterally imposes a
higher standard, the yards could hardly be
blamed for proposing another societys lower
and cheaper Rule set. Some ship owners may
welcome the higher
standard but
everybody wants a
level playing field.
The limitations to an
improved regulatory
and class regime
tend to be based on
the proprietary
nature of the
information to which
we have access,
whether it is the
condition of the ship,
as known to the
owner; its class
information, protected
by contract; proprietary data of vendors or
other information to which access is limited
and even class is excluded.
So despite the continuing debate, there
appears to be little commitment to adopting
industry-wide measures that would forestall
the continuing formal imposition of more
onerous, but generally necessary
regulatory standards.
Our aims appear to be the same to
promote increased safety of life and property
and greater protection of the environment
and to do so in a practical, technically sound
and cost effective manner.
What tends to get overlooked is that attaining
these goals, particularly if achieved through a
collaborative, industry-wide approach, can
lead to more efficient, less costly and more
profitable operations.
So is there a way forward? We believe so and
we have already seen this co-operation working
in practice. IACS is currently completing the
Common Structural Rules harmonisation
project, taking in a lot of lessons learnt from the
original development of the CSR.
This initiative is a great example of the
difference that an enhanced level of co-
operation and communication can bring to
maritime safety. The IMO set the
overarching structure with the adoption of
Goal Based Standards. Class stepped
forward to work collaboratively with industry
to develop specific criteria that will enhance
safety to the benefit of all.
This kind of collaborative effort could be a
template for the future. I have no doubt that
we can design, build and operate safer,
more efficient ships. But to do so we must
enhance our co-operation, so that we can
meet the shared responsibility of raising
standards, and in the process create a safer
shipping industry.
Kirsi Tikka is welcomed by Spyros Polemis, chairman and
convener of the first Liberty Congress
Enhancing co-operation,
sharing responsibility
The following article is by Kirsi Tikka, president and coo, ABS
Europe, based on a presentation given at The Liberty Congress
held aboard ss Hellas Liberty in Piraeus this June.
It is a refrain commonly heard from industry
conference platforms: to address the challenge
of an increasing regulatory burden, shipping
should practice greater collaboration and co-operation.
HELLAS_2013_edit 14/11/2013 13:18 Page 11
15
Hosted by Spyros Polemis, the recently
retired chairman of the ICS and president of
the ISF, the Naftiliaki-organised forum was
held in the refurbished hold of the ss Hellas
Liberty, one of the three remaining Second
World War Liberty ships (see below). It
brought together an impressive list of top
industry players including leaders of the
Baltic Exchange, Bimco, IACS, IMO,
Intertanko and Intercargo, as well as senior
representatives from shipping companies,
brokers, banks, law firms and class societies.
Efthimios E Mitropoulos, IMO secretary
general Emeritus, quickly pointed out "the
nature of the [shipping] business forces
competition between those in it". He
emphasised that the key to the industrys
strength is coordination and cooperation and
that this can be achieved through IMO
although he warned of the danger of regional
factions forming within the UN agency.
Mitropoulos and others pointed out that much
has been done to improve the image of
shipping, but that recent years have seen an
erosion of the Baltic Exchange motto on which
shipping is founded of my word is my bond.
You cannot rely on the counterparty
performing the way you did 20 or 25 years ago,
sadly, agreed Baltic Exchange chairman
Quentin Soanes. He went so far as to suggest
owner bodies like Intercargo and Intertanko
should "set up a vetting scheme for charterers."
Intertanko chairman Graham Westgarth
informed that his association is in the final
stages of drafting a proposed code of
conduct, which it would soon send out to oil
majors and other charterers. The fragmented
nature of the industry does not work in our
favour, he added. We need to adopt
common positions on key issues.
John Platsidakis, chairman of Intercargo, felt
a plurality of views within the industry to be
vital, but at the same time recognised a
need to work together, not in conflict.
Regarding regulators, Bimco president John
Denholm believed politicians were not
against shipping but just lacked
experience and needed to be engaged with
by the industry early and with energy.
IACS chairman Tom Boardley, marine
director at Lloyds Register, likewise felt
governments needed to liaise more
closely with shipowners, class societies
and shipyards, before regulations are
decided, or even before regulators
proposals are finalised and positions
become entrenched.
Based on an article that first appeared on
www.seatrade-global.com
Liberty Congress charts way forward
The ship recalls the 'Blessed 100' Liberties - all built in the US
to ABS class that were sold to Greek owners on
preferential terms at the end of WW2, thus founding the
nation's modern shipping fortunes.
Tsavliris Salvage Group was involved for over two years in
organising and partly sponsoring the transport operation,
which involved chartering the tug Poseidon to carry out
the epic 5,000nm tow from Norfolk, VA, Upon arrival in
Greek waters the companys salvage tug Megas
Alexandros went out to welcome and protect her. Tsavliris
says it remains immensely proud to have been a part of
this historic project given the profound impact that the
Liberties had on Greek shipping and the economy.
Dimitris G Capaitzis, president of the Federation of
European Maritime Associations of Surveyors and
Consultants (FEMAS) and of the Hellenic Marine Technical
Consultants Association (HMTCA), points out that Liberty
Replacements such as the SD14s and Freedoms - built
preminantly in the UK and Japan respectively - took over the
baton from the late 1960s onwards.
Both series fulfilled Greek shipping needs, he says, thanks to
close co-operation between yards and Greek shipowner
groups like Carras and Mavroleon that were involved in the
vessels design, with consultants acting as catalysts.
A need for the shipping industry
to improve co-operation
between its different members,
and to deliver a unified
message to regulators,
politicians and the public alike,
was the theme of the inaugural
Liberty Congress held in
Piraeus this summer.
In December 2008, under the auspices of the
Liberty Foundation, the historic ss Hellas
Liberty ex Arthur M Huddell was towed
from the US to Piraeus to be refurbished and
transformed into a floating maritime museum
and conference venue.
George Gourdomichalis presents the owners viewpoint
HELLAS_2013_edit 14/11/2013 13:18 Page 12
16
No sooner had the sun gone down on a long hot East Med summer than clouds appeared over
much of the Aegean and Ionian seas as the thousands of people who depend of Greeces
domestic ferry network again began mulling their future. And they had good reason to worry.
With 300 vessels serving 200 ports, the ferry
sector has been struggling for a number of
years despite a system of state subsidies for
the provision of public service links to far-flung
islands and only periodic major overhauls have
kept the network afloat. Now the countrys oldest
and most vital transportation system is again
feared to be on the brink of collapse.
Results this summer were not as bad as
predicted thanks to a greater influx of
overseas tourists. Combined first-half 2013
turnover of majors Anek Line, Attica Group
(operator of Blue Star Ferries and Superfast
Ferries), Minoan Lines and NEL Lines reached
e274.3m, compared to e283.9m for the same
period of 2012, while combined losses for the
four companies totalled e59.5m compared to
e93.5m a year before.
However, the latest results have to be added to a
cumulative deficit already racked up by the
sector of some e1.2bn, leading many to predict
that a radical restructuring is inevitable. The
economic crisis has led to decreases in
passenger numbers and spending power, while
bunker prices and other operating costs have
soared, they point out.
Deprived of their traditional source of working
capital and unlikely to attract overseas
investment because of the purely Greek nature
of the trade, some ferry owners may find it
difficult to survive. It can be remembered that GA
Ferries went bankrupt in 2009, when Gerassimos
Agoudimos claimed his eight-ship company had
collapsed because it was owed e6.18m by the
state under contracts to operate unprofitable yet
subsidised services, while the government
countered that the owner had not submitted
correct documentation.
This year the Shipping and Aegean ministry has
launched a string of initiatives to help boost
coastal shipping, where ferry companies are
seeking solutions to their liquidity problems and
opportunities to restructure their loans.
Shipping minister Miltiadis Varvitsiotis has said
that as far as direct steps for managing the
problem are concerned, the government is
focusing on restructuring subsidised services
and taking steps to transfer part of the
countrys coastal shipping fleet from Piraeus to
the port of Lavrion in southern Attica, a move
that would significantly contribute to the
reduction of fuel costs.
Shakeout looms for ferry sector
Visitors to Piraeus are cordially invited to visit the Hellenic Maritime Museum,
pictured here during the recent opening of the HELMEPA Junior art exhibition.
Located in Akti Themistokleous, the Museum generously lent some of its artefacts
to Posidonia 2012 for a display entitled '10,000 Years of Hellenic Maritime Tradition.
Companies have
racked up a
cumulative deficit
of over e1.2bn.
HELLAS_2013_edit 14/11/2013 13:18 Page 13
LAVNA corp.
Cf f i ces: London, Las FaImas, Shanghai, Vigo, Fusan, Madrid, SeattIe, Riga, VIadivostok and The FaIkIand IsIands
Head Cffi ce
Xeni as 5 8 Ch. Tri koupi
Athens 14 562
Creece
TeI : +30-210-6284200
Fax: +30-210-808710l11l12
Emai I :athens0I askari di s.gr
Fri goshi p Charteri ng CmbH, Hamburg
TeI : +4 40 38 60 54 0
Emai I : reefers0fri goshi p.de
Web: www.fri goshi p.de
Cperators of the worId's Iargest Ice CIassed
reefer fIeet. The worId's Ieaders in High Seas
frozen cargo transhipments and bunkering
operations.
Cur dedication and commitment to quaIity, our
team strength, ashore and onboard, is what
makes the difference.
30 years...
...Cn time
LA8KARD8 8HPPNG Co. Ltd.
IBC Hellas13 Laskarides 12/11/2013 10:35 Page 1
OBC Hellas13 Navios 12/11/2013 10:33 Page 1