Mon 12 May 2014, 14:33 GMT

Dual-fuel short sea ships ordered


New container vessels will be able to run on LNG, distillates and fuel oil.



Containerships Ltd Oy, GNS Shipping/Nordic Hamburg, and Arkon Shipping have announced that they have ordered two state-of-the-art, dual-fuel engine-technology container ships.

Containerships will be chartering the vessels over the long term, the owner and technical manager will be GNS Shipping/Nordic Hamburg, while Arkon will be the commercial manager and the charter broker.

The ships, both of which are scheduled be delivered during the course of 2016, will use liquefied natural gas (LNG), but will also be able to burn conventional distillates and intermediate fuel oil (IFO).

Containerships claims that, following delivery of the ships, it will become the first short-sea container operator in Europe to run vessels on LNG. "The new container ships will offer the most efficient and environmentally friendly option for transporting containers by sea, and will not just meet but exceed environmental standards in the Sulphur Emission Control Area (SECA) in which Containerships operates," the company said.

Explaining the reason for its decision to run LNG-powered ships, Containerships said: "There are three ways to ensure that sulphur emissions from ships operating in the European SECA do not exceed 0.1% m/m (the limit for sulphur emissions from 1 January 2015 on): use low-sulphur fuel oil, or higher-sulphur fuel together with abatement technology (scrubbers), or LNG.

"According to a recent survey, most shipping lines operating in the SECA area will use gas oil when the SECA regulations come into force, but industry studies indicate that, in view of the significantly higher cost of fuel oil, over time investments in LNG technology or scrubber technology will predominate. Containerships’ strategy is to stay ahead of the curve when it comes to environmental regulations, and to be a pioneer in eco-friendly shipping while continuing to offer its customers the best value for money.

"LNG makes the best ecological sense: it is the cleanest fossil fuel on the market. Burning it emits no sulphur or particulate matter. Using it in these new ships will also allow Containerships to reduce emissions of CO2, a greenhouse gas, by 25%, according to Gasum."

Commenting on the company's decision to invest in the dual-fuel engine technology, Kari-Pekka Laaksonen, CEO of Containerships, remarked: "We are a short-sea operator that is in it for the long haul—and these state-of-the art ships are just one part of our long-term strategy. In addition to offering the most ecologically sustainable solution, the intake capacity of these ships will allow us to keep meeting growing customer demand. And we’re confident that both of our partners on this project have the know-how and the experience to deliver.”

Dr. Rowil Ponta, managing director of GNS Shipping and Nordic Hamburg, said: "It is our investment strategy to focus on modern, economical and environmentally friendly ships and cooperate with experienced charterers to develop our new building projects. These ships will be the new benchmark for the European feeder trades in terms of environmental and economical efficiency."

Arkon Shipping’s Ole Gabs noted: "Every crisis creates opportunities. Today, after 100 years of using IFO fuel as the main product for running ship engines, and with the upcoming introduction of new SECA regulations, we are facing a paradigm shift. Energy-efficient, eco-friendly ships are the future of shipping.

"We are delighted, and proud, to be co-initiators of one of the first LNG container-ship projects in Europe together with two strong partners.

"We are confident that this project is the right step at the right time. It has been developed in consultation with SMB Naval Architects, under the stewardship of Hans Karel Stam, with whom we have developed other ships in the past."


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