FERRY SHIPPING

By | 2020 Newsletter week 37 | No Comments

Stena RoRo’s E-Flexer GALICIA Delivered to Brittany Ferries – with Higher Passenger Capacity

GALICIA, the first of three ships in the E-Flexer class ordered by Brittany Ferries was delivered on September 3. The vessel is the third E-Flexer of nine ordered by Stena RoRo from the Chinese shipyard CMI Jinling (Weihai). The Galicia will be chartered by Brittany Ferries on a long-term basis and has been especially adapted to the wishes of the French ferry company:

  • The basic model car deck on Deck 7 has been converted to cabins. This, in combination with the deckhouse having been extended on both Decks 7 and 8, has enabled the number of cabins to be increased from 175 to 343.
  • Two scrubbers, one for each main engine
  • Two extra lifeboats added due to the ferry’s increased passenger capacity
  • The public spaces on Decks 7 and 8 have been partially given over to other functions compared to the basic model, but largely follow the E-Flexer standard.

“GALICIA is special because she is the first in the E-Flexer series to be delivered to an external customer,” says Per Westling, CEO for Stena RoRo. “The design has been adapted to Brittany Ferries’ special requirements and the yard has been able to deliver according to schedule despite the ongoing pandemic, which we are very happy about.”

Stena RoRo has an agreement with Brittany Ferries for long-term charters of two more vessels in the Stena E-Flexer series. Both will be powered by LNG, are under construction and will be delivered in 2022 and 2023, respectively.

International Charter Market and Bad Summer Affect Hellenic Coastal Shipping

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The Hellenic Coastal Shipping ends the summer season with:

  • A reduction of EUR 300 million in turnover
  • An average of 40% reduction in passenger traffic
  • Disappointing forecasts for 2021.

Greek ferry operators have mainly pinned their hopes on August, which unfortunately did not materialise:  -40% to -50% traffic.

September is also expected to be a bad month, as there are no reservations.

Color Line Takes Action to Save Costs and Enhance Efficiency

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Color Line will meet the challenging situation in connection with the pandemic with a comprehensive program for cost savings and efficiency. “The plans will secure jobs and future profitability,” says CEO Trond Kleivdal (photo).

Preliminary analyzes show a need to reduce costs by +/- NOK 300 million. This will lead to a reduction in the number of employees both on board and on land by approx. 300 man-years. In addition, measures will be taken to reduce other operating costs.

“Color Line plans to use as many voluntary schemes as possible in connection with the

downsizing,” says CEO Trond Kleivdal.

Color Group AS – Successful Placement of Perpetual Hybrid Bond Issue

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Color Group AS has successfully completed a new subordinated perpetual hybrid bond issue of NOK 500 million with first call date in December 2024. Net proceeds from the new bond issue will be used for general corporate purposes.

Arctic Securities, Danske Bank, DNB Markets, Nordea and SEB acted as Joint Lead

Managers in connection with the placement of the new bond issue. An application will be made for the bonds to be listed on Oslo Børs.

In total, Color Group has approximately NOK 3 billion outstanding in the bond market.

Source: Oslo Stock Exchange 9 September 2020

First Estonian Hybrid Ferry Returns to Service

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Customers of the Virtsu-Kuivastu line can now enjoy travelling on Estonia’s first hybrid passenger ship.

Ferry TÕLL has been retrofitted with battery packs at a cost of EUR 1.6 million.

This will reduce the consumption of MDO by 20%, a reduction of 1,600 tons of CO2 annually.

Jaak Kaabel, Chairman of the Management Board of TS Laevade said that his company aims to abandon fossil fuels. “This conversion is a big step and more ships will follow if the solution gives satisfaction.”

Retrofit: Baltic Workboats

Batteries and system: Corvus Energy, Norwegian Electrical Systems and a peak-shaving hybrid solution designed by LMG Marin.

DFDS Launches Ambitious Climate Action Plan – Climate Neutral in 2050

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DFDS decided to become climate neutral by 2050 and is aiming for a relative reduction of Greenhouse Gas emissions by 25-35% (between 2019 and 2030).

Three key climate plan actions:

  • Next 10 years: 29 technical initiatives aim to reduce emissions from the ferry fleet: bulb and propeller modifications, anti-fouling, decision support systems for fuel performance…
  • Long-term: zero emission fuels to replace fossil fuels. The new fuels are sustainable as they consist of renewable energy stored in the form of ammonia, hydrogen, or methanol.
  • Reduce emissions from third-party haulier trucks, own trucks and equipment used in port terminals

In 2019, the network emitted around two million tons of CO2 of which 90% was from ferries and the rest mainly from logistics operations.

Border Restrictions Halve International Ferry Travel from Denmark

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Organisation Danish Shipping (Danske Rederier) has calculated that the total number of passengers for Scandlines, Fjord Line, ForSea and DFDS in June, July and August has largely been halved compared to the same period last year.

“The bad summer comes on top of a lost spring, and it would be naive to think that Danes, Germans, Swedes or Norwegians will start traveling as usual in the coming months. The situation at the borders is completely unpredictable, so the shipping companies are facing some challenging months, ”says Jacob K. Clasen, Deputy CEO.

At Scandlines, CEO Søren Poulsgaard Jensen believes that it is the border closure in particular that caused an impact.

Like other Danish ferry companies, Scandlines has used the government’s help packages to send employees home for salary compensation and help to cover fixed expenses. But the bad summer will still cost jobs in the shipping company, says Søren Poulsgaard Jensen to Søfart.

Overview Godby Shipping RoRo Charters

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The chartering situation of the Godby Shipping Fleet is as follows

  • BALTICA unemployed in Mariehamn
  • MIDAS Wagenborg liner traffic Riga-Oxelösund until September 2020
  • MISTRAL t/c to Smyril until October 2020 + options
  • LINK STAR t/c to UPM-Kymmene until December 2020
  • MIMER t/c to CMA CGM December 2021
  • MISANA t/c Sea-Cargo December 2021 + options
  • MISIDA t/c to P&O until October and thereafter t/c to Sea-Cargo until December 2021 + options

The First Two Havila Voyages Ships Have Been Launched

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The first two of Havila Voyages’ four new coastal ships, HAVILA CASTOR and HAVILA CAPELLA, were launched at the Tersan shipyard on Saturday 5 September.

Arild Myrvoll, CEO of Havila Kystruten said that because of the pandemic, the first two ships will not be ready for the new year as originally planned.  “It looks like delivery may take place during Q1 of 2021,” he said.

In anticipation of the new ships, Havila Voyages has received approval for two replacement vessels, but the demand for the coastal route between Bergen and Kirkenes is currently very uncertain, and the need for capacity at the start of the new contract on 1 January 2021 is under evaluation.

Havila Voyages has an agreement with the Norwegian Ministry of Transport to operate four of the eleven ships that sail the classic coastal voyage between Bergen and Kirkenes from 2021 to 2030. The seven other ships will be operated by Hurtigruten.

It is unclear when ships number 3 and 4 will be delivered, as the Spanish yard went bankrupt.

The ships will have LNG propulsion and the world’s largest battery packs.

Technical Launch of RFI’s New Ferry IGINIA Successfully Completed in Italy

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The new ropax ferry ordered by Rete Ferroviaria Italia (Rfi) at San Giorgio del Porto and T. Mariotti shipyards, was successfully launched a few days ago with a load-out and float-off operation.

The ferry, suitable for the transportation of railway carriages, wagons, passengers and vehicles, will be deployed in the Strait of Messina.

The hull of the new unit is now heading from San Giorgio di Nogaro to Genoa, under tow by tug GIANEMILIO C. (MarineTraffic).

The construction will be completed in the coming months.

The hull is already equipped with engines, generators, propulsion machinery and systems.