The Road to Excellence

Current Trends in the

Polish Ship Management Industry

Radoslaw Stefaniak

Polish Ship Managers’ Association

Secretary

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Point of Departure

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1989 – 247 ships - belonging to Polish shipowners usually modern vessels of various types Polish flagged

2017 - 96 ships owned by Polish shipowners but…only 22 are Polish flaggedand they are mostly old vessels not used in international trade

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Cause?

Lack of vision regarding the role of maritime economy in Poland

resulting in:

Lack of proper regulation – not suitable to trends in modern shipping (especially in the field of seafarers’ taxes & social security contribution)

Diminishing role of largest Polish ship owners

Reflagging of remaining Polish-owned vessels CopyrightPSMA 2017

Initial Conclusions

Polish flag – as it is today – is unattractive not only to foreign shipowners but also to Polish companies

Seafarers’ tax issues

Seafarers’ social security contribution issues

Considering present market conditions & aforementioned problems mean that it is impossible for Poland to return to the status of major ship-owning

nation in the short and medium term perspective

The view that the Polish Flag should be a goal in itselfstill has many supporters in Poland but this view is outof date and hampers further development;

Polish Flag shall be treated as a way to achieve goals (e.g. increase of financial budget revenues) instead

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Development of ship management industry in Poland

Meet the Alternative

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Number of ships managed by the Members of the Polish Ship Managers’

Association

The aforementioned number does not include ships managed by ship managers

– non-members of PSMA

Polish owned fleet

96 ships2,4 mln DWT

204 vessels [mostly ocean-going, significant number of offshore vessels

average tonnage of managed vessel – 9-11.000 DWT

in total – nearly 2,4 mln DWT

ComparisonRemark

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4

8

12

16

20

24

200 400 800600 1600

40 >80

140 >40

450 >20

1500 >10

NUMBER OF SHIP MANAGING COMPANIES

Median Number of Ships Managed by Polish Ship

Manager – PSMA Member

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Polish Ship Management - Present Form

Transformation of ship management services in Poland

From Crewing Agencies =====> Crew Managers

From Crew Managers

From Technical Managers =====> Full Management

Commercial Management (parts)

By Type of ActivityAs defined by the (2009/C 132/06) - Communication from the Commission providing

guidance on State aid to shipmanagement companies

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Polish Ship Management - Present Form

Transformation of ship management services in Poland (continued)

Most Ship Management Businesses in Poland were created after 2008 from

transforming Crewing Agencies

In-house management model ===> hybrid management model ===> full third party management model

Polish Ship Manager Position on the

Market

By type of relationship between Ship Manager and Ship Owner

Ambition & Potential

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Remark

Re-Shaping of ”Triangle of Responsibility”

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Triangle of ResponsibilityTraditional Model

Ship Crew

Owner

Upkeep & Daily Operations Employment

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Triangle of ResponsibilityDominant Model

Ship Crew

Owner

Ship Manager

Employment

Shipmanagement Contract

Upkeep & Daily Operations

Shipmanagement Contract Fees

Skillful separation of ownership and management activities is the key to improved economic performance

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What are the reasons behind successful transition from a ship owning nation

to a ship management center?

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WHY POLAND?

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Strong Po in t #1

Conven i en t Loca t i on

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Within approx. an hour of direct flight by budget airlinefrom major shipping centres in Europe

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Ports capable of accomodating large and very large ships

ŚwinoujścieGdańsk Gdynia Szczecin

All of them with potential to expand capacity 2 or

even 3 fold

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This „club” will soon be joined by Elbląg

Source: Ministry of Maritime Economy & Inland Navigation

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Strong Point #2

S h i p y a r d s a n d S h i p r e p a i r Y a r d s

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Poland holds second place in Europe (after Germany) and fifth in the world with regards to values of shiprepair and shipbuilding

contracts respectively

CopyrightPSMA 2017Szczecin Shipyard

Strong Point #3

Highly qual i f i ed personne l

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It is also worth mentioning at least 10 000 Polish Managers &

Superintendents working abroad

Poland ranks among nations contributing a fair share of work force entering the maritime job market

At least 35 000 Polish seafarers are employed on ships owned by foreign ship owners & ship operators

From 30 to 60% of crews employed by Polish shipmanagers come from Poland

25-26 000 Seafarers are employed via labour agencies with registered office in Poland

Should conditions become appropriate – they are eager to

come back to Poland and use their skills & experience for the

benefit of the ship management industry

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Strong Po in t #4

T r a i n i n g F a c i l i t i e s a n d C l a s s i f i c a t i o n S o c i e t i e s

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Strong Point #5

R&D Fac i l i t i e s

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Strong Po in t #6

Lo w Co s t

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Why employ Poles on Owners’ countries’ conditions?

far more economical to contract work to Poland and employ Polish staff here

one of the strategic goals of the Polish Ship Managers’ Association is to assistnewcomers in establishing themselves in the Polish market

When it is…

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Strong Point #7

N o n - e x i s t e n t d i s t a n c e f a c t o r

Nearly all R&D entities, training facilities, shipyards and spare part providers are located

in the Tri-City (Gdańsk, Sopot, Gdynia) or Szczecin Region

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What can we offer?

To Foreign Ship Owners & Ship Operators

the same [or even better] quality;

in the heart of Europe

for much lower prices

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What can we offer?

To Poland

Instant benefit – gradual increase of tax revenues via VAT, CIT and possible tonnage taxation

Long term benefit – revitalization of crucial branches of the Polish maritime economy – shipbuilding, shiprepair, spare parts production, assistance in both legal and insurance field etc.

”Know how” back in country – experience acquired while working for foreign shipowners and shipmanagers may be used to create new promising shipmanagement businesses to the benefit of all parties involved

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POLAND – overal l p ic ture

Convenient location in the heart of EuropePorts capable of accomodating even largest vesselsModern and successful shipyardsHighly qualified and experienced personnel 3D Training FacilitiesR&D Facilities Low Cost

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Ship OwnerContract of Ship Mngt

Ship Management

Monthly Mngt Fee

Commercial Services

Agreed Monthly Fees

Chartering, Post Fixture

Dealing with Cargo

Crew Management

Monthly fee per head

Crew Agent

Provides Crew

Technical Management

Supply Contracts

Various Suppliers

Materials, Services

IT, Acctg Services

Agreed Monthly Fee

Also other Services

Telecom, PMS, etc

Legal and Acctg

Retainer Agreement

Investors, Bankers

Ship Financing

SHIP MANAGEMENT CHAIN – SPIN-OFF JOBS

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Singapore of the Baltic Sea

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A safe haven in times of unprecedented crisis of shipping

Key to the future of the Polish Maritime Economy

P o m e r a n i a n S h i p M a n a g e m e n t C e n t e r

Few words about us

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Det Norske Veritas Polska sp. z o.o.

Hartmann Crew Consultantssp. z o.o.

SIEM Ship Management sp. z o.o.

Green Management sp. z o.o.

Inter Marine sp. z o.o.

Seatrans Ship ManagementPoland sp. z o.o

Kopervik Ship ManagementPoland sp. z o.o.

V Ships (Poland) sp. z o.o.

NGT Services Poland sp. z o.o.(part of Navigator Gas PLC)

Cargo Shipping sp. z o.o.

Academy Maritime ServicesLtd sp. z o.o.

Lloyd’s Register Polskasp. z o.o.

SMT Shipmanagement and Transport Gdynia sp. z o.o.

Technical Ship Managementsp. z o.o.

POLARIS Usługi Morskiesp. z o.o.

MEMBERS OF THE ASSOCIATION

Polskie Ratownictwo Okrętowesp. z o.o.

Arriva Shipping Polska

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WILLIS TOWERS WATSON S.A.

NET MARINE – Marine PowerService sp. z o.o.

„AHB” SERVICE sp. z o.o.

ROMEKO marine sp. z o.o.

STEFSHIP sp. z o.o. sp.k.

SUPPORTING MEMBERS OF THE ASSOCIATION

Wilhelmsen ShipsService Polska sp. z o.o.

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MEDICA ASSISTANCE S.A.

President of the Management Board

(Mobile): +48 514-851-712

itk@greenreefers.com

Secretary (mobile): +48 697-054-648

rstefaniak@gmail.com/sekr@pzzs.com.pl

OR VISIT OUR WEBSITE: WWW.PZZS.PL

Fo r mo r e in f o r ma t i o n

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Thank you for your time and interest

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And looking forward to assist you in your endeavour towards modern,

safe & eff icient management of your vessels