Car Carrier Companies Conjoining

By Mark Edward Nero

Two car carrier companies, Norway-based Wilh. Wilhelmsen Holding and Wallenius Lines of Sweden said Sept. 5 that they’ve signed a letter of intent to establish a new, combined ownership structure.

The new entity, Wallenius Wilhelmsen Logistics ASA will, the companies said in a statement, “form a more efficient management structure and enable further synergies between the joint ventures.”

The letter of intent states that the parties will combine their ownership in three jointly owned entities: shipping company Wallenius Wilhelmsen Logistics (WWL) and American Roll-on Roll-off Carrier, of which they will own 100 percent; and EUKOR Car Carriers, of which they would jointly own 80 percent.

The parties have also agreed to merge the ownership of the majority of their vessels and affected assets and liabilities.

“Changing market dynamics and pressure on margins enforce a fundamental change in how we manage our joint ventures, especially within the shipping segment,” Wilh. Wilhelmsen ASA Chair Thomas Wilhelmsen and Wilh. Wilhelmsen Holding ASA Chair Diderik Schnitler said in a joint statement regarding the reasoning behind the proposed changes.

“The markets in which the jointly owned entities operate are going through rapid change and require a more agile and efficient business model,” Wilh. Wilhelmsen ASA President and CEO Jan Eyvin Wang explained. “In addition to establishing a common owner and governance structure, the proposed merger is expected to enable synergies between $50-100 million by combining the assets and harvesting economies of scale, including more optimal tonnage planning, and administrative, commercial and operational efficiencies between the entities.”

The final terms and ownership level are expected to be confirmed with the announcement of a final agreement by year’s end. The proposed transaction is expected to close in the first quarter of 2017.

Hueneme Welcomes 1st Post-Panamax Ship

By Mark Edward Nero

A paradigm shift in how the widened Panama Canal is expected to bring a new class of vessels to the Port of Hueneme was commemorated recently as Wallenius Wilhelmsen Lines company leaders and port officials greeted the port’s first post-Panamax ship.

Post-Panamax, or vessels that previously could not fit through the Panama Canal, is the new standard vessel size based on the width of new locks that recently opened at the Canal.

The Port of Hueneme says the maiden voyage of the M/V Thalatta marks a new milestone to support the port’s and its industry partners’ environmental agenda. Thalatta is one of newest high efficiency roll on/roll off HERO class vessels designed to increase capacity and flexibility while reducing emissions.

The ship is fitted with an exhaust gas cleaning system that reduces sulfur emissions to below 0.1 percent in compliance with environmental regulations and removes 70 percent of particulate matter, which also significantly reduces nitrogen oxide emissions.

Using a new scrubber based technology, the vessel generates a steam based release at berth instead of diesel exhaust, making the vessel one of the greenest in the global ro/ro fleet.

The Thalatta measures almost 200 meters (56 feet) long, 36.5 meters (120 feet) wide and features five liftable car decks, which allows for multiple configurations and a wide variety of customer cargo. The vessel can transport up to 8,000 car equivalent units. With the increased beam, the Post Panamax vessels carry an additional 2,000 ro/ro units.

Thalatta is the second in a total of eight HERO post-Panamax vessels that commenced service for WWL in 2015.

Thalatta’s sister ship Themis is anticipated to arrive at the Port of Hueneme in September.

WWL Extends Port of Hueneme Contract

By Mark Edward Nero

The Port of Hueneme and Norwegian/Swedish shipping and solutions company Wallenius Wilhelmsen Logistics have agreed to an extension of WWL’s contract that’s expected to keep the company at the port through the end of 2018.

News of the agreement came on the eve of WWL’s 26th anniversary as a tenant business at the Port of Hueneme.

“Wallenius Wilhelmsen Logistics is a vital long term community partner and a significant economic engine,” Harbor Board President Jason Hodge said. “Between the business it brings to the port, revenue contribution and local area workforce employment, WWL is a significant contributor to the port’s surrounding communities.”

Wallenius Wilhelmsen ships first began calling at the Port of Hueneme in late 1987. In 1991, WWL established Pacific Ro-Ro Stevedoring (Pac-Ro) to handle autos arriving at the port and Pacific Vehicle Processors (PVP) as part of a further expansion of the company’s logistics capabilities.

“WWL is pleased to continue its longstanding relationship with the port,” Len Mazzella, WWL America’s Vice President of West Coast Terminal Operations, said. “The Port of Hueneme represents a special part of our history as the first of WWL’s global hub ports offering ocean transportation, marine terminal and vehicle processing services.”

Vehicle Importer Renews POLA Lease

WWL Vehicle Services Americas (WWL VSA), a subsidiary of global shipping and logistics company Wallenius Wilhelmsen Logistics (WWL), has renewed its long-term lease with the Port of Los Angeles.

The Los Angeles Board of Harbor Commissioners approved the new lease in late November. According to the port, the agreement’s a reflection of a commitment to maintain a diversified cargo portfolio that makes use of land and water resources and promotes economic growth.

“WWL has been an important source of jobs and revenue at the port for years,’’ port Interim Executive Director Gary Lee Moore said in a prepared statement. “WWL is a unique facility at the port and we’re extremely pleased to extend our relationship.”

WWL VSA operates a 91-acre automotive processing terminal at the port that processes about 200,000 vehicles annually. The 10-year agreement provides for a five-year extension, an option that would allow WWL VSA to operate at its current home at Berths 195-200A through Jan. 1, 2027.

“WWL Vehicle Services Americas is pleased to extend its presence at the Port of Los Angeles,” WWL Vehicle Services Americas President and CEO John Felitto said. “The vehicle processing facility we’ve developed at the port plays an important role in WWL’s network, and is a key location and processing center for auto manufacturers serving the western United States.”

The WWL terminal specializes in receiving new cars shipped from overseas and preparing them for distribution and sale throughout the United States. The terminal also exports restored and vintage cars.

San Pedro Bay Ports Honor Air Quality Award Winners

The ports of Los Angeles and Long Beach recently honored five companies for their efforts in fighting harmful emissions during the 2013 Clean Air Action Plan (CAAP) Air Quality Awards in San Pedro.

The CAAP Air Quality Awards originated in 2007, after the ports approved the historic San Pedro Bay Ports Clean Air Action Plan. Port tenants and other port-related businesses are eligible to submit award entries, which are judged by a panel composed of port staff and representatives from the South Coast Air Quality Management District, California Air Resources Board and the US Environmental Protection Agency.

Awards this year were given in three categories, including:

Air Quality Leadership at the Corporate Level, where the recipients were global shipping and logistics company Wallenius Wilhelmsen Logistics (WWL); and container transportation, logistics and terminal company OOCL USA.

In 2012, WWL’s new, ultra-modern Salome vessel was the first to qualify for an incentive under the Port of Long Beach’s Green Ship Incentive Program, a voluntary clean air initiative that rewards ocean carriers whose ships are equipped with Tier II or III engines.

In 2012, OOCL signed a “green” lease with the Port of Long Beach pledging to reduce harmful emissions by 50 percent, even as the company plans to double growth.  OOCL says it plans to achieve this by using shore power to reduce emissions while at port, as well as by continuing its participation in the ports’ Vessel Speed Reduction Program, an initiative that involves the lowering of vessel speeds to reduce emissions when ships approach the port. Also in 2012, OOCL joined the Port of Los Angeles’ Environmental Ship Index incentive program, a voluntary clean air initiative that rewards ocean carriers for bringing their newest and cleanest vessels to the Port of Los Angeles.

The second category in which companies were honored was Innovative Air Quality Improvement Technologies, and the two recipients were Foss Maritime Co. and APL.

In 2012, Foss voluntarily retrofitted another tugboat for operation in the harbor as well, creating the world’s second hybrid tug.

APL, meanwhile, was the first company to install and test “seawater scrubber” technology on a container ship calling at the two ports. The technology involved the installation of a single low-maintenance seawater scrubbing device on the ship’s three auxiliary engines, which helped reduce contaminants in the exhaust stream and removed waste from the wash water prior to discharge overboard. The scrubber reduced SOx emissions by as much as 99 percent and 70 percent for PM when running on HFO (heavy fuel oil), and 97 percent for SOx and 78 percent for PM when using MGO (marine gas oil).

The third award category was Innovative Operations That Improve Air Quality. This award went to trucking company Knight Transportation.

Half of the company’s roughly 300 trucks operating at the two ports are 2010 or newer, which exceeds current requirements. Engines on the 2010 and newer trucks have reduced CO₂ emissions by about 18 percent and NOx emissions by 90 percent, according to estimates. Knight has also modified about 97 percent of its van trailers with blade technology that reduces fuel consumption by seven percent. In addition, 100 percent of its tractors are equipped with diesel-fired bunk heaters, thus reducing a driver’s need to idle trucks during the cooler winter months.

“Because of the innovative initiatives of our partners, overall diesel emissions are down by an amazing 75 percent, and we continue to advance toward our goal of zero emissions,” Port of Long Beach Acting Deputy Executive Director Noel Hacegaba said.  “We congratulate these companies whose initiatives are setting the standard for ports around the world.”