w w w. c o n t a i n e r s h i p s g r o u p. c o m CONTAINERSHIPS Alternative (Bio) Fuel

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1 w w w. c o n t a i n e r s h i p s g r o u p. c o m CONTAINERSHIPS Alternative (Bio) Fuel


3 Finnish Family Owned w w w. c o n t a i n e r s h i p s g r o u p. c o m

4 Current vessel fleet North Sea / Baltic Sea 10 Vessels operating between all major Ports around the Baltic Sea (SECA area). - Size between 800 and 1000 TEU s. - More than half of the fleet equipped with scrubbers. Vessel Fleet as per additional LNG vessels are added to our fleet with a capacity of 1400 TEU. We take care

5 w w w. c o n t a i n e r s h i p s g r o u p. c o m

6 We take care

7 LNG Investment.

8 Investment program - LNG powered ships Four Newbuildings ordered. Project started in 2016, first deliveries in LNG powered trucks Dual Fuel trucks in UK; 60 trucks converted to LNG. Full LNG trucks in FI & NL; about to sign contract for 15 trucks in NL. - LNG Fuelling Station in UK. Our investments in LNG technology reach up to MEUR 200. This includes four new LNG vessels, LNG powered truck fleet and infrastructure. We take care

9 Member states involved: Finland, Germany, United Kingdom and the Netherlands Implementation time: 16/02/ /06/2019 The project upgrades maritime links within the SECA, established between Helsinki, Rotterdam and Teesport in two ways: - environmental upgrade of new vessels, going beyond the requirements of legislation, and - the development of port infrastructure removing bottlenecks of inefficiency and investing in cargo handling capacity and infrastructure. 08/06/ EU-TM-0098-M 9

10 LNG as the future fuel?

11 Why did we go for LNG in 2016 with that many challenges? - Initial investment 25-30% more compared to old oil technology - Initial investment 20-25% more compared to old oil technology + scrubber. - Limited bunkering / re-fuelling possibilities. - More space required for fuel tanks on vessels. - No market price for LNG, so are we still competitive towards other shortsea shipping lines?. - No standards existing. - No best reasonable practises existing. We take care

12 Available solutions for vessels. Marine Gas Oil (MGO) or RMD-80 Designed for use in all diesel-fuelled engines Scrubber with Heavy Fuel Oil (HFO) Alternative fuels (methanol, biofuels) Available solutions for trucks Traditional diesel. CNG So ONLY solution for using low emission fuel for Door-to-Door deliveries was and still is LNG. We take care

13 Share of different vessel fuels in Baltics 2015 Sail Steam Source: Gasum Gas Oil We take care

14 We take care

15 Some say it is too expensive, we say it is the only reasonable choice.

16 What did we achieve?

17 What do we know about LNG in 2018? - Proven engine technology. - Environmentally friendly; strong marketing point towards customers. - Compliant with all current/anticipated regulations ready for bunker / emission exchange (CO2). - LNG infrastructure already in place and developing fast. Available around Baltic Sea and now starting even worldwide. - Ongoing construction and plans of several LNG terminals in Europe. We take care

18 LNG now available in our logistical working area.

19 LNG can be used for all our deliveries: - Vessel transport. - Truck deliveries. - Barge deliveries ( performed by 3 rd party suppliers ) For long distances. For short distances combined with city deliveries. Safe, clean and less noisy fuel. WITH TOTAL CONTROL With 15 vessels, own fleet of trucks and selected local partners we make sure our multimodal container transports are fast and reliable.

20 CUSTOMER PORTFOLIO 3,000 customers per year 1,300 customer bookings every month from various industries Food and beverage Cunsumables Automotive Forestry Other First major commercial contract has been signed based on the use of LNG for the full door-to-door traject. This shows that customers will more and more base their tenders not only on price but also on emission and are even willing to pay more to comply with these low emission transports. We take care

21 Operational / technical aspects to be considered in 2016 against current situation. - Selection of shipyard (experience with LNG?) Available. - Selection of Truck brand who can deliver trucks with enough power. Done. - LNG storage tank; type and location and space from the cargo. No issue. - Selection engine; Vessel can run 100% on LNG even during manoeuvring in the port. - Endurance with LNG / size of tanks. Full Baltic roundtrip no issue. - Total distance possible with LNG Truck: Acceptable range and getting better all the time. - Class and flag requirements. Arranged. - Port rules. Created. - Bunker supplier. Contracted and more are now on the market. - Bunkering port & terminal. No issue. - Re-Fuelling stations for trucks. Enough available for our truck fleet and number of station are growing. - Pricing mechanism of the LNG. Price agreements can be made. - Quality of the LNG. No issue. - Crew/driver training. Done - Hazids. All done with positive outcome. - Simops. Possible at most of the terminals in RTM. We take care

22 What next?

23 Bio Fuels? By using a full LNG network of vessels and trucks we are ready to use BIO-LNG and will definitely use this when: * infra-structure is ready. * prices are at same level as traditional LNG so competitive in our market situation. * fuel quality can be seen as workable. Putting the same energy into the Bio-Fuel network as we did in the traditional LNG we should be able to use Bio- Fuel much earlier than expected. We take care

24 Other (Non fosfile) Fuels? Using other energy is simply not yet possible due to: * infra-structure not ready. * storage of energy absorbs too much space. * cannot be used for all transport modalities. * investment costs are too high and risky. * not being able to use for long distance transports. * looking at the lifetime of a vessel & truck we have no time to wait another years before alternatives can be used in a competitive way; first earn your investments back. We take care

25 Any Questions