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Pressing ahead

Ordering remains strong, although smaller vessels lose out, says Helen Hill

While some sectors of the maritime industry are riding with the peaks and troughs of the economic climate, the heavylift sector appears to be on a much steadier course.

Beluga newbuilds on course

BigLift is ordering with an eye to the long term

Heavylift giant Beluga Shipping does not seem to have got cold feet and is pressing ahead with its ambitious fleet expansion programme. The Bremen-based company is continuing with its intense focus on the “super heavylift” sector, and intends to expand its fleet to 75 units, with crane capacities of up to 1,400 tonnes by 2011. Beluga has a strategic focus on the super heavylift sector and this fleet size is regarded as an “ideal strategic strength,” say Niels Stolberg, president and chief executive officer of Beluga Shipping.

At the time of writing, Beluga Persuasion, the first of Beluga’s new P1-series, was due to arrive any moment. This vessel will have crane gear that can independently lift cargo weighing up to 800 tonnes. Beluga Bremen, scheduled for delivery in December this year, will become the first Beluga vessel with crane gear of 1,400 tonnes.

In total, 10 P1-series vessels and 14 P2-class units will be delivered over the next few years. These multipurpose heavylift project carriers are specifically designed to serve the super heavylift segment. “The P-class vessels represent a joint development achievement of engineering offices, shipyards, suppliers and our experts in the newbuilding division,” says Stolberg.

Fairplayer, one of the latest additions to Jumbo’s fleet

These vessels offer tonnage capacities of 19,100 dwt (P1) and 20,000 dwt (P2). Crane capacities reach a maximum of 800 tonnes (all P1 and four of the P2 class) and all the other P2 series have a 1,400 tonnes capacity in tandem use. They also have extra large hatches and are built to ice class E3.

Changing opportunities

Stolberg stresses that there have not been any changes to the firm’s newbuild programme as a result of the economic crisis. “All our planned and ordered newbuildings are fully financed on a very solid basis.” Nevertheless, he stresses that this does not mean that the company has been unaffected. The company does feel the negative effects of the global crisis because merchant shipping has been “hit hard by the letter of credit problem, by some restrictive financiers and customers, and by a general retreat”.

BigLift’s Happy River en route to Poland

By being involved in the relatively stable, niche project and heavylift market where long-term contracts dominate, in contrast to the consumption-related container shipping market, the heavylift sector has been granted somewhat of a blessing in disguise. However, there is a “massive slump” in the cargo segment below 200 tonnes of crane power, Stolberg adds. The 350-400 tonnes segment is becoming more and more stable and the sector above the 800 tonnes “remains a highly interesting field with several large projects”.

The oil and gas segment, port expansion, power plant construction, and development in the offshore wind industry, represent some of the fields in which the companies involved still invest because they are well-positioned financially despite the global meltdown, Stolberg stresses. “We have adapted to the new situation by an even stronger focus on the highly attractive super heavylift segment.”

He admits that the company “had to slightly reduce our expectations with regard to the annual accounts, yet we will keep being a future-orientated company on course for reasonable expansion”.

Flexibility boosts Fairstar

Fairstar Heavy Transport (FHT), based in Rotterdam, saw its new vessel, Fjell, complete its maiden voyage in Sicily. The Fjord and Fjell were amongst the world’s largest semi-submersible barges but they were converted into self-propelled heavy transport vessels by FHT. By June, the Fjell was loading large offshore components in Lobito, Angola for an FPSO under construction. These were then transported to the DSME yard in Okpo, Korea. Components, including riser and mooring protectors, are being built in Angola and integrated in Korea.

The offshore market remains strong

Mario Kerssens, FHT’s director of sales and marketing, says because the vessels are relatively wide, with a limited draught, they are very flexible and can load and discharge at quaysides, where most of FHT’s competitors cannot. A recent job exemplifies this, he says. The Fjord was in Abu Dhabi where the channel is fairly limited and then it had to transport onshore modules to Escravos River, Nigeria where it can comfortably sail over the sandbar there. “The fact these vessels used to be barges is being turned into an advantage.”

Kerssens says at least for the moment, there do seem to be a lot of jobs around, both in the spot market and for longer-term work. One area the company is looking at is moving onshore modules for LNG projects in Australia, such as the Gorgon project. It is much easier for FHT’s vessels to access remote sites, he comments, given their limited draught.

He does expect fewer offshore construction projects in 2010-2011 but having said that, he is not deterred. Lower steel and fuel prices mean that some developers are tendering again. “If a project cost $600 million in August 2008, it could now be down to $400 million.” The delivery dates have not changed and at the same time, there are some very hungry yards out there keen to do business, so projects are not expected to dry up, he adds.

Rates on the spot market still seem to be holding up, he says, and this is combined with a drop in fuel prices. Mr Kerssens is certainly not pessimistic about prospects. “The ‘odd’ characteristics of our vessels work to their advantage and it creates our own niche,” he says.

Jumbo keeps growing

One of Jumbo’s VBL barges in action

Unlike many other sectors, heavylift is still ordering and welcoming fleet additions. In June, Jumbo Shipping added the Jumbo Jubilee to its fleet, the fourth in its J1800-class series. The vessel is currently at Huisman Equipment in Schiedam, the Netherlands where its two 900 tonnes mast cranes will be installed. At 13,000 dwt each, the J-class vessels have 1,800 tonnes lifting capacity. Two of the four, the Jumbo Javelin and Fairplayer, are outfitted with a DP2 propulsion system, making them suited for offshore transportation and installation projects, as well as the traditional heavylift sector.

BigLift signed on the dotted line this year, ordering five so-called D-4 vessels at 800 tonnes capacity. Due to be delivered mid-to-end 2010, BigLift sees these as very much the workhorse of the industry and placed the order looking at the next 20 years, says Arie Peterse, BigLift managing director. The Amsterdam-based firm is still very busy but perhaps things will get a bit slower towards the end of the year, he comments. But he is confident in the longer term, adding “The industry still has to find new oil, develop new fields and power generating equipment”.

Stolberg too, seems confident of the future. “We have to carefully watch factors we cannot influence, like the letter of credit, and we have to work hard as a team, optimise internal processes, even intensify our direct customer’s approach and believe in the global economic stimulus packages to be successful – then, I am convinced, we will overcome the crisis.”

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