FERRY FINANCE

By | 2018 Newsletter week 09 | No Comments

Tallink Grupp Earns Record Amount Of EUR 967 Million Revenue In 2017

According to the unaudited financial results, Tallink Grupp AS earned a record amount of EUR 967 million revenue in 2017. In addition, the group’s highest ever number of passengers in one year – over 9.8 million – significantly increased the revenue of the group’s restaurants and shops to nearly 537 million euros, taking the Grupp’s net profit for 2017 to a total of EUR 49 million.

Compared to the previous financial year, the Grupp’s turnover increased by 3.1% and the net profit by 11.8%.

The launch of the Grupp’s newest vessel, Megastar, on the Tallinn-Helsinki route early in the year increased the capacity of this route and improved the efficiency.

The most positive development in 2017 was the growth of the cargo business. The Cargo volumes increased in all geographical segments in total by 11.0%, the cargo revenues increased by 13.3% or EUR 13.8 million compared to last year and amounted to EUR 117.7 million in 2017.

New Ships For Finnlines, Which Had Its Best Year Ever In History

By | 2018 Newsletter week 09 | No Comments

Powered by a growing Finnish economy, Finnlines was able to achieve new records.
The full year 2017 result was EUR 82.7 (68.1), an improvement of +21%.The Finnlines fleet is being expanded.

  • As announced earlier, the ro-pax EUROPALINK re-joined the Finnlines fleet after five years in the Mediterranean Grimaldi fleet. Her introduction on Germany – Sweden made it possible to move NORDLINK to Sweden – Finland. As FINNSWAN she is the largest vessel ever on Naantali–Långnäs–Kapellskär.
  • Four of Breeze-class ro-ro vessels have been or will be lengthened. The lengthening programme should be finished by the end of April.
  • Finnlines has signed a letter of intent for three new 7,300 lane metre ro-ro vessels. Finnlines did not unveil any further details related to the shipbuilding order. However, Mr Grimaldi announced at his last EuroMed conference the intention to order environmental-friendly hybrid ro-ro’s, designed by Knud E. Hansen. Combustion engines would be combined with batteries, and the ships would be equipped with scrubbers. The so-called GG5G ships would be 235m long.

Photo: Knud E. Hansen

Fjord1 Continues To Invest In Modern Tonnage

By | 2018 Newsletter week 09 | No Comments

In the full year 2017 Fjord1 ASA has transported 21.1 million passengers and 10.4 million vehicles on 63 ferries. The revenue was NOK 2.8 billion.

Highlights of Fjord1’s Q4 ferry division:

  • Revenue NOK 623m
  • EBITDA NOK 234m (154.3m)
  • Result NOK 133.3m (153.6m)

Two fully-battery-operated ferries were introduced, the GLOPPEFJORD and EIDSFJORD, both built by Tersan.
In Q4, three ships were ordered at the Sefine Shipyard.
The company will finalize the contracts for another seven new buildings during the first quarter of 2018.

Keeping The Customer Happy Costs Money

By | 2018 Newsletter week 09 | No Comments

In its third quarter results for the fiscal year ending March 31, 2018, BC Ferries reported a net loss of CAD 14.8 million. (CAD 4 million in year before)
Net earnings for the nine-month period ended December 31, 2017 were
CAD 100.9 million, down from CAD 118.2 million.
The lower results can be explained by BC Ferries’ commitment to improve the customer experience. BC Ferries implemented service enhancements and provided additional round trips to accommodate the higher traffic volumes. The additional trips and the sea trials associated with the introduction of three new vessels in the nine months ended December 31, 2017 resulted in an increase in fuel consumption, labour and training related costs.

FERRY OPERATIONS

By | 2018 Newsletter week 09 | No Comments

New Tilbury River Berth To Increase Capacity Threefold By 2020

P&O Ferries has agreed with Forth Ports to move to a purpose-built GBP 150 million river berth on the Thames at the Port of Tilbury which will treble its freight capacity to 600,000 units a year by 2020.
Janette Bell, Chief Executive of P&O Ferries, added: “The river berth will also enable us to cut our crossing time by one hour (7 instead of 8), meaning that our customers will be discharged an hour earlier at 5am, enabling them to bypass the morning rush hour on the M25.”
The planned new terminal will be linked directly to the A13 via a new road, providing quick and easy access. It will also have a bespoke layout enabling customers to locate their unit promptly as part of a 30-minute gate-to-gate turnaround.

Photo: P&O Ferries

Port Of Ystad Continues To Strengthen Links With Poland

By | 2018 Newsletter week 09 | No Comments

Port of Ystad’s good relationship with Poland was further strengthened by the visit of CEO Björn Boström to Deputy Maritime Minister Grzegorz Witkowski in Warsaw.
The Swedish town is expanding its ferry port, which will benefit the connection to Świnoujście, and the Polferries newbuildings.
Ystad has been very good in bringing all politicians and actors together, in order to become a major port on the axe Sweden-Poland-Europe.
Import from Sweden to Poland is expected to increase by 27% by 2020, and export from Sweden to Poland by 40%. (Source: Gdynia Maritime Academy)

Photo: Mike Louagie

The Mismatch In LNG Requirements Between Buyers And Suppliers Is Growing, Says Shell

By | 2018 Newsletter week 09 | No Comments

The global LNG market has continued to defy expectations, growing by 29 million tonnes in 2017, according to Shell’s latest LNG Outlook. Based on current demand projections, Shell sees potential for a supply shortage developing in the mid-2020s, unless new LNG production project commitments are made soon.

The Shell LNG Outlook, now in its second year, highlights key trends in 2017 and focuses on future global supply and demand, and can be downloaded below.

Photo: Mike Louagie

TRADE ASSOCIATIONS AND OTHER ASSOCIATIONS

By | 2018 Newsletter week 09 | No Comments

Only Two Major Ferries Scrapped In The Last Quarter Of 2017

The French environmental organisation Robin des Bois (‘Robin Hood’) has published its 50th quarterly shipbreaking report. Since the start of the publications in 2006, more than 10,000 scrapped ships have been reported.
Some trends:

  • Overall, the tonnage of vessels demolished in the last quarter of 2017 shows a drop by 29%.
  • The Chinese Government has identified ship breaking as a major pollution risk. The end of the year was marked by the suspension of operating licenses for all but 2 or 3 facilities in Xinhui and near Shanghai. As a result, the tonnage of dismantled vessels fell sharply in China.
  • The Top 4 of recycled tonnage consists of 1) India, 2) Bangladesh, 3) Pakistan, 4) Turkey.

Only two well-known ferries have been reported as scrapped:

  • OLYMPUS (ROPAX 2, LÜBECK LINK, FINNROSE) was beached in Alang in late November. (see page 81)
  • MED STAR (LA PAZ STAR, STRADA CORSA, STENA TRANSPORTER, FLANDERS, PRIDE OF FLANDERS, NORDIC FERRY, MERZARIO HISPANIA, MERZARIO ESPANIA). On her way from Rhodes to Santorini, a fire broke out in the engine room in June 2017. She was beached for demolition in Aliaga on December 8. (see page 86)

Photo: P&O Ferries’ PRIDE OF FLANDERS in 1995 ©Mike Louagie