Energy in the Maritime Industry - Stepping away from tradition

Tuesday, May 15, 2012

Energy in the Maritime Industry - Stepping away from tradition

KNUD E. HANSEN A/S has accepted an invitation to contribute to the EMEM 2012 course run by the ESCP Europe Business School and held at their London campus during April 2012 (writes  Mr. Giuseppe Tringali, General Manager of KNUD E. HANSEN A/S Greek office). 

The Executive Masters in Energy Management (EMEM) course is aimed at executives in the energy industry. The sector has long been segmented into upstream versus downstream, and oil and gas versus utilities, resulting in a high degree of specialisation. Yet today’s managers need to have a broader perspective with an integrated view of the various issues in order to cope with the complexity of the industry. They also need a clear understanding of the potential for conflicts of interest between participants, and to eventually be able to anticipate and design proper courses of action and strategies. 

The current approach to the evaluation and execution of large engineering projects in the maritime industry involves a substantial focus on the energy implications. 

Giuseppe Tringali stated that: “the rising cost of fuel and the geopolitical distribution of the remaining reserves of fossil fuel and natural gas are driving the maritime industry through substantial changes. These changes, together with stricter requirements dictated by governing bodies and the need to keep businesses profitable, are adding new layers of complexity to the realisation of these projects”. 

This contribution has given the students on the course the opportunity to gain an overview of an industry with a strongly traditional approach that has slowly started to react to these changes. 

Driving Factores

  • Constantly increasing cost of fuel
  • Negative economic conjunction
  • Slowing demand and overcapacity of fleet
  • Tighter regulatory framework and environmental issues
  • Increase competitiveness
  • Diversification

Energy Awareness

  • The costs of oil and personnel will grow in the future
  • There is an increasing awareness in society of the impact of emissions from the burning of fossil fuels
  • To obtain political and public acceptance, it is a must that energy consumption and emissions are reduced to an absolute minimum
  • Comply with future regulations
  • Need to become more competitive in slower economic conditions

Addressing Energy Efficiency – Past versus Current

In the past:

  • Tendency to copy previously successful vessels
  • Evolutionary development
  • Speed is the top priority
  • Maximum container intake required
  • Low initial building costs

Currently:

  • Focus now on lifecycle costs
  • Benefits of speed reduction (slow steaming) recognised
  • Larger ships
  • More specialised tonnage
  • Move to capitalise on the scrapping of old ships and to building more efficient vessels
  • Compliancy with stricter rules and regulations
  • New technologies available
  • EEDI (Energy Efficiency Design Index)

 

Dr. Kostas Andriosopoulos, co-director of the EMEM course and Executive Director of the Research Centre for Energy Management at ESCP Europe, said that the four hour seminar, which was complemented by a role play scenario in decision making, was widely welcomed by the attendants, and KNUD E. HANSEN A/S and ESCP Europe are considering repeating this experience in the future.

Design consideration model based on techno-economic evaluation.

Giuseppe Tringali says: "Shipping will always be a fundamental part of the transportation Matrix".

About ESCP EUROPE

ESCP Europe is both a high-level school of management with international scope and a large-scale European institution. It was founded in Paris in 1819 and, since then, has educated generations of leaders, contributing to the fine reputation it enjoys today. ESCP Europe’s ambition is to contribute actively to the development of a European economic culture. With five campuses in Paris, Berlin, London, Madrid and Turin, ESCP Europe is the School of Management for Europe.

Each year ESCP Europe welcomes 4,000 students and a similar number of top-level executives. It is at the cutting edge of a knowledge and immaterial economy; fosters innovation and accompanies business organisations in their change process; sustains a wide international partnership network reflecting its global ambitions; is actively involved in economic and societal debate on European issues. Students and executives come from around the world. The school offers them a model of management, which prepares them for the future in the respect of such humanist European values as creativity, history, culture, transversely and diversity.