Transcript Norwegian Shipowners Association

An industry’s perspective on
past, present and future
(regulation of) Arctic shipping
Lars Almklov
Director
Norwegian Shipowners’ Association
Tromsø, 31 October 2008
The Norwegian shipping and maritime
offshore industry
160 shipowning companies,
1.820 merchant vessels
MARITIME POSITION
Tonnage, by country of domicile
Source: ISL Bremen
18 0
16 0
50 Mobile offshore units
14 0
12 0
10 0
5% of the world merchant fleet
80
60
Norway's second largest export earner,
biggest service exporter
40
20
0
Gr e e c e
J a pa n
Ge r ma n y
National flag
Ch in a
No r w a y
Ko r e a
US
Foreign flags
Ho n g
Ko n g
Arctic shipping?
• Political thaw and
a warmer climate
•Trans-arctic Shipping
-The Northern Sea Route
-Trans-polar shipping
• Destination Arctic
Trans-arctic shipping
(Northern Sea Route)
What is the alternative?
Suez Canal Equidistance: Hong Kong – London
(Yokohama-Hamburg : 35% shorter distance)
Panama Canal Equidistance: San Francisco - London
Which cargo?
Manufactured goods from (to) North East Asia to (from) Europe
(Some) bulk commodities from Europe to NEA
Northern Sea Route
Draft restrictions (smaller vessels)
Ice conditions (more expensive vessels)
Higher operational costs
Cargo and marine insurance
Arctic skilled crew
Long ice season (unpredictable)
NSR not (yet) a commercial alternative
(will climate change change this?)
Arctic shipping
(Destination Russian Arctic)
Access and development of
resources in the High North
depends on maritime/
offshore technology and
maritime transportation
US Geological Survey’s estimates that 25% of global
undiscovered oil- and gas reserves are located in the
Arctic
Arctic shipping
(Destination Russian Arctic)
Which cargo?
- Export of rich natural resources' (energy and minerals) from
Russian Arctic
Import/domestic transport of goods to Arctic Russia
Will new (coastal) resources be developed?
What is the alternative?
New pipelines for oil and gas
New rail/land transportation
Destination Russian Arctic
Requirements
Lesser draft restrictions and shorter ice season
Investment in infrastructure required (ports, hinterland connections)
Availability of ice breaking services. Better monitoring/forecast of ice
conditions. Search and rescue
Clear and predictable (Russian and International) rules for international
shipping in the environmentally sensitive area
Shuttle model - (cabotage)
Arctic shipping will be necessary to develop natural resources in North West
and North East Russia
Exploration
Exploration
drilling
Field
construction
(subsea)
Seismic /
survey
Exploration
and Production
drilling
From drawing
boards to
installation of
pipelines and
other subsea
constructions
Production
Floating
Production
(FPSO)
Offshore Service Vessels
Transport
Shuttle tankers
Crude oil tankers
Gas Carriers
Ship-to-ship
Demolition
Heavy Lift
A vulnerable Environment – need for
regulation of Arctic shipping
• Support for strict international
regulation of Arctic shipping
(IMO Polar Code)
• Technical and operational
regulations for offshore
contracting activities should be
harmonized
• Accident preparedness.
Search and rescue capabilities