Europe’s first dual fuel short-sea container ships

Dual Fuel Container Feeder

PKF maritime, Hamburg – 22. Januar 2014

Dr. Rowil Ponta, Managing Director Nordic Hamburg

I. Introduction

Executive Summary

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Project Concept

• Joint cooperation for realising 1.400 TEU ultra-modern dual-fuel container project

• Collaborative conception and optimisation of vessel´s design

• LNG operated vessels to substitute existing tonnage in Emission Control Areas (ECAs) by 2015/2016

Motivation

• For Containerships Oy:

Securing the vessel needed for future cost effective trading in Europe

Participation in the newbuild project at an early stage – high influence on vessels features

• For GNS / Nordic:

Long term employment of a new building project

Diversification of the existing fleet by developing a business sector with sizeable growth potential

• For Bank & Investors

New project with secured and predictable cash flows through long-term employment

Moderate Leverage

Interesting upside potential (historically low asset prices for ultra modern vessels)

Growth potential through diversification within LNG shipping sector

In the global world of container shipping it remains essential to understand the

requirements of each market segment.

Container Shipping 2015

I. Introduction

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ECA Zones are New Market Segments

NOx

SOx CO2

MARPOL Annex VI, Reg. 13

Tier III in ECA applicable from Jan-01, 2016

MARPOL Annex VI, Reg. 14

0.1%S in ECA applicable from Jan-01, 2015

MARPOL Annex VI, CH. E (Res. MEPC. 203(62))

EEDI applicable since January 1, 2012

Various other environmental regulations in force

and / or under discussion.

II. Business Case

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- The ECA in the Baltic and North Sea is a „game changer“ for ship owners and

charterers

- The ECA results in a significant cost increase for seaborne transport creating a push

for alternatives to the traditional HFO

- LNG is the alternative to liquid fuel for marine transport

The engine technology and the LNG are available

Significant reduction of bunker costs

Lowest possible emissions

Reduced costs in ports and other ancilliary benefits

Tier III compliance

No residuals, no disposal requirements

GNS / Nordic together with Containerships OY, Finland leading the drive to shift

the Baltic container trades to LNG driven vessels.

Assumptions:

Speed: 17kts / 7kts on Elbe & Kiel Canal

Total NM: 2.677 nm

Duration: 12,5 days (incl. port stays)

Price MDO: 530 USD per mt

Price LNG: 421 USD per mt

II. Business Case

Typical Operating Profile

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1.400 TEU - old design-

1.400 TEU - LNG design -

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

Fuel costs per round voyage LNG vs. MGO

II. Business Case Business Case – Operating Profile

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0

50.000

100.000

150.000

200.000

250.000

US

D

Fuel cost per round voyage LNG vs. MGO

Sietas 178 Wärtsilä

Price MGO: 530 USD/mt; Price LNG: 421 USD/mt

Δ abt. 62.000 USD per voyage (12,5 days)

12,5 days round voyage 1.400 TEU

old design

1.400 TEU

LNG design

LNG Consumption (mt) - 159,3

MGO Consumption (mt) 241,4 3,7

Bunker Costs (USD) 130.537,05 69.066,07

III. The Vessel

Anmination

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II. The Vessel

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Main Particulars

Type 1.400 TEU Dual-Fuel Containervessel

Length OA 169,95 m

Breadth 26,70 m

Design / Scantling draft 8,50 m / 9,25 m

Nominal container intake 1.368 pcs.

Container intake (14 t. hom.) 1.120 pcs.

45´ Container intake 631 pcs.

Reefer plugs 372 pcs.

Deadweight 16.900 tdw

Shipyard/delivery Guoyu Shipyard, China / 2016/17

III. The Vessel

Key Features

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• Eco design, high efficiency due to slow-speed two-stroke engine

• Capable of burning HFO, MDO and Liquified Natural Gas (LNG)

• Equipped with bow- and stern-thruster for excellent maneuverability without tugs

• Hydraulic hatch covers

• High cargo intake compared to other feeder tonnage

• Outstanding flexibility - 20´ , 30´ , 40´ and 45´ intake in all holds

Aktuelle LNG Projekte

IV. LNG as a Marine Fuel

Challenges & Opportunities

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• LNG infrastructure (terminals, bunker facilities)

• LNG engine technology (low pressure vs. high pressure concept)

• LNG handling and operations (regulations and procedures)

• Political factor of LNG supply

• LNG pricing and price development

• Cooperation between makers, shipyards, owners, operators required

• Investment model

Conversion of substantial parts of maritime trade to LNG propulsion!

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Dr. Rowil Ponta

Nordic Hamburg

GNS Shipping Cremon 32 - 20457 Hamburg - Germany

Tel. +49 40 377 07 9 74 Ponta@nordic-hamburg.de

Fax +49 40 377 07 9 89 www.nordic-hamburg.de

Thank you very much for your attention!