Scandlines welcomes CEO Eric Grégoire

By | 2024 Newsletter week 28 | No Comments

Eric Grégoire started as CEO of Scandlines on 8th July. The Executive Management Team now consists of CEO Eric Grégoire, COO Michael Guldmann Jensen and CFO Mikael Koch. 

Eric Grégoire comes from a position as CEO of Goodpack Pte Ltd. in Singapore. He is an experienced business leader with a solid track record in business process improvements from several international companies such as General Electric and DuPont. 

Source: Scandlines 

Scandlines sees improvement

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Freight: After a slight but persistent negative trend in the freight sector due to geopolitical factors, Scandlines sees improvement. In the first half of 2024, truck traffic on the Rostock-Gedser route grew by 5 percent compared to the previous year, with signs of economic recovery in Denmark, Sweden, and the Benelux countries. 

Passengers in Coaches and Cars: Passenger transport in coaches on the Rostock-Gedser route increased by 5 percent in the first six months of 2024 compared to 2023. Although car traffic was slightly down in the same period, advance bookings for the summer season are promising, bolstered by the start of school holidays in Denmark. 

Passengers: The desire for group trips abroad is returning, contributing to the positive growth in bus transport. Car traffic is expected to increase significantly during the summer season, indicating a rebound in passenger numbers using Scandlines’ ferry services. 

Sustainability: Scandlines is making strides towards its sustainability goals, aiming for zero-emission ferry operations by 2030 on the Puttgarden-Rødby route and zero direct emissions by 2040. Investments include rotor sails, propeller optimizations, and the commissioning of the fully electric freight ferry “Futura” in 2024. Since 2013, EUR 400 million has been invested in these initiatives, with a target to reduce CO2 emissions by 60 percent by 2030 compared to 2008. 

Photo: Scandlines/Ulrich Wirrwa 

Scandlines selects supplier for electrification of Fehmarn Belt link

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Scandlines has taken a significant step towards electrifying its Puttgarden-Rødby ferry route by signing a contract with Wärtsilä on April 25, 2024. Wärtsilä will supply the electrical systems that will allow electricity to cover about 80% of the energy needed for each crossing.

This project is part of Scandlines’ larger plan, announced in late 2023, to convert two of its four ferries on this route to plug-in hybrid models. The goal is to operate the route without direct emissions by 2030 and to achieve zero direct emissions by 2040.

After a competitive tender, Scandlines selected Wärtsilä due to its extensive experience with hybrid ship retrofits, having completed numerous projects since 2012. Wärtsilä will not only supply the systems but also supervise their installation and commissioning.

The ferry conversions, set to begin in the second half of 2025, will involve replacing a diesel generator with a 5 MWh energy storage system.

Photo Matthias Tasler/Scandlines

Scandlines delivered solid performance in 2023

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Scandlines maintained 2023 revenue and earnings in line with 2022 levels in a challenging market environment. The ferry operator realised a record peak season for leisure, as an increased number of passengers (+5%) used Scandlines’ services (cars +3%).

Whilst freight volumes were down (-7%) from the record levels of 2022, Scandlines maintained its market share.

Scandlines maintained the positive momentum in 2023 with passengers continuing to return to the two ferry routes after years of negative impact from COVID-19 and related travel restrictions. The positive development drove moderate revenue growth of 1 percent to EUR 466 million and a solid result before tax of EUR 122 million.

Revenue from the two Germany-Denmark routes grew to EUR 369 million in 2023 from EUR 363 million in 2022 based on a solid development in total traffic volume.

Management expects revenue and profits to increase moderately in 2024 subject to realising the anticipated level of positive trends in the macro economy during 2024.

Management also expects a positive effect from the deployment of Scandlines’ new electric ferry on the Puttgarden-Rødby route in the second half of 2024.

The full annual report and the sustainability report for Scandlines Infrastructure ApS can be downloaded here.

Scandlines New Year’s reception in Kiel: Emission-free ferry operations begin in 2024

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From left to right: Managing Director of Scandlines Deutschland GmbH Heiko Kähler, President of the State Parliament Kristina Herbst, State Secretary Tobias von der Heide, CEO Scandlines Michael Guldmann Petersen, Ingo Gädechens MdB.

Photo: Marc Benkmann/Scandlines

Scandlines’ traditional New Year’s reception took place in Kiel in the presence of Schleswig-Holstein’s State Secretary for Transport, Tobias von der Heide.

Scandlines’ management highlighted the first fully battery-electric ferry and further plans for the electrification of the Puttgarden-Rødby route.

  • The electric ferry Futura is set to commence operations in 2024, operating entirely on electricity.
  • Initially, Futura will be charged with electricity only in Rødby, with plans to expand charging to Puttgarden by 2025.
  • The next phase involves converting the other ferries on the Vogelfluglinie to 80% battery operation before transitioning to entirely electric operation with zero direct emissions by 2030, with two of the four ferries on the Puttgarden-Rødby route making the switch by 2025.
  • Challenges related to fluctuating electricity prices in Germany are noted, with Scandlines hoping for support from German politics.
  • Digital solutions are being implemented to enhance the customer experience during booking, at ports, and on board.
  • While the freight segment experienced slight declines in 2023, Scandlines anticipates growth in the latter half of 2024.

Brittany Ferries welcomes move to allow French school groups to travel to UK on ID cards, rather than passports

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James Cleverly UK home office minister announced the changes in a statement to the House on 7th December 2023. Passports will no longer be a requirement for travel: French students under 18 years of age will be able to come to the UK on an ID card.

In 2023 Brittany Ferries carried just 41,061 French children on school trips – a fall of 55 per cent following the introduction of new post-Brexit border controls in 2021 (in 2019 91,764 were carried).

Scandlines orders new onshore charging solution from NES

By | 2023 Newsletter week 50 | No Comments

Scandlines has contracted Norwegian Electric Systems AS (NES) to deliver an onshore charging system to the ferry operator’s berth in Puttgarden, Germany. In April 2022, NES already signed a contract to deliver the shore power solution in Rødby on the Danish side of the route.

“With a battery pack of ten megawatt-hours, equivalent to the combined capacity of about 150 electric cars, the ferry’s battery capacity will be among the world’s largest on a ship. Rapid charging is essential for the ferry while it is unloading vehicles and should take about 12 minutes. Imagine charging 150 electric vehicles with one charger in 12 minutes only. While fast charging a car is one thing, handling this amount of energy is quite another matter,” says Jan Klokk, VP Sales at NES.

Scandlines to electrify two ferries for the Fehmarn Belt link

By | 2023 Newsletter week 50 | No Comments

In recent years, Scandlines has cemented its position as a green frontrunner with a wide range of initiatives, including the new FUTURA ferry. Now the plan is to electrify two ferries on the Fehmarn Belt.

Scandlines is investing in the following:

  • Large energy storage system on board both ferries
  • Charging facilities on board
  • Solar panels on board both ferries

The total investment in electrification of the Fehmarn ferries amounts to EUR 31 million. The German Ministry of Transport has awarded the project financial support as part of a funding programme covering sustainable modernisation of coastal vessels to reduce emissions, covering up to 40 percent of the conversion costs.

Scandlines expects to sign a contract on the conversion in early 2024. Subject to the final delivery time of equipment, the ferries will be converted in the beginning of 2024 till 2025.