AQUALIFE CONTAINERS for LIVE SEAFOOD TRANSPORT

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1 1 / AQUALIFE CONTAINERS for LIVE SEAFOOD TRANSPORT During ocean freight the container operates as a low surveillance transport unit with very little breakdown risk. The tanks and containers can operate for long term storage when connected to the docking stations and as individual transportation units. How does it work? (SEAFOOD PROCESSOR May 2008) Shellfish are loaded at a port-based docking station into specially adapted 40ft containers with 20 upright spherical holding tanks. These are all interconnected through a central piping system. During the voyage, the system operates automatically, re-circulating purified, membrane filtered water which removes dissolved substances. It is also chilled to maintain the shellfish in a state of semi-hibernation, which discourages the build up of ammonia during transportation. Oxygen, carbon dioxide, temperature and ammonia gas are all constantly monitored. The tanks are designed using special materials to make them easy to clean and maintain, while the advanced filter technology allows the system to comply with the strict environment and food safety regulations of the EU. When the ship docks, the containers are removed and plugged into a second docking station at the port, which ensures the shellfish are in perfect condition for onward transportation to the market, either by standard chilled transport, or by taking a container on a lorry.

2 2 / To avoid the spread of any shellfish diseases, all shellfish for transportation will be certified diseasefree, while filtered waste water undergoes a process to decompose and remove any potentially harmful bacteria, viruses or pathogens. Organisms and particles from an ecosystem in Canada must never be released into a different ecosystem, such as southern Europe, as it could cause all kinds of ecological devastation. Our technology removes all types of waste and keeps it in a closed system for safe disposal, explains Lars Nannerup, a managing director of Aqualife.. Features: Once the environment in the container is hibernating and is sterile the container can be released for ocean freight: the container can maintain the environment for up to 20 days. The containers are equipped with a double compressor system that through the container's piping system supplies air to the tanks during ocean freight. The piping system can operate individual tanks or interconnect with the whole system, the container connects with the docking stations from the outside. Temperature and flow is monitored and managed by the containers' PLC system, after ocean freight it is possible to read all temperatures and possible power-outs from the ocean freight. The container is labelled with special alert signs for crane operators and other handling personnel.

3 3 / Temperature can be maintained by the container during ocean freight. Alarm systems with GPS interaction alerting the responsible of power outs etc. DESIGN GUIDELINES Ocean freight is made possible in the Aqualife system by decreasing the animal s motabolistic activity during ocean freight and by assuring a sterile aquatic environment before, during and after the ocean freight. The heart of the system is a 40 ft container with 20 tanks, all interconnected through a piping system in the container. Each tank can contain 1,500 litres of water and up to 600 kg of live shellfish. One 40 ft container can carry up to 12 tonnes of live shellfish. The ocean freight of the containers takes place between two docking points and always in closely managed corridors. The supply chain is integrated all the way from the point of fishery, until the shellfish can be off loaded in the export country, for direct human consumption. Overall design objective : Achieve a stable aquatic environment during storage and transport and to integrate the supply chain into one close and stable system. Protect fauna and flora by operating strict risk management systems. The system secures the environment against pollution from the export of disease and invasive spices. Assure highest standards of food safety by using materials that can be easily cleaned and by exploring state-of-the-art filtration technologies.

4 4 / During the ocean freight the system must be able to operate securely and with no or little surveillance. During transport all flow functions are handled pneumatically and with no moving parts. Slow down the growth of ammonia during transport and at all times seek to increase biomass while decreasing mortalities. The Aqualife technology makes it possible for producers of shellfish to reach markets with live products across the globe by using container based ocean freight, markets most producers today are restricted from due to logistical issues. During the ocean freight the objective is to slow down the growth of ammonia, this is achieved in the following ways: The water is circulated with 600 litres per hour through the filter tubes during ocean freight; here filter components such as ammonia locks, static filters and PH regulators can be used. Removing all protein material from the water before shipping and allowing the animals to dispose of stomach content while docking. Achieving lowest acceptable hibernation temperature, both in order to minimize the stress of the animal and to slow down the biological activity in the water. Lowering and stabilizing the PH buffer in the water can slow down the growth of ammonia by up to 75%.

5 5 / SHELLFISH TANK The tanks and containers can operate for long term storage when connected to the docking stations and as individual transportation units. Features: The tanks will pneumatically create a flow through the filter tubes with 600 litres per hour trough built in airlifts Static and chemical filter components can be used in the filter tubes such as ammonia locks, PH regulators etc. The tanks are fitted with diffuser systems and oxygen management systems in order to avoid dead spots and epidemic mortality. The tanks can recover oxygyn levels after power outs to 100% saturation within 20 minutes. In case of high sea, the tanks are designed to withstand 45 celcius degrees tilt and roll and to be able to maintain full operations even at extreme conditions. Each tank is fitted with 14 half shelves that can be lifted out individually or as one furniture. In case of breakage or forklift damage, the tanks can be repaired.

6 6 / DOCKING STATION

7 7 / The supply chain for Mussels from Denmark to southern and central Europe Mussels are being harvested on the Danish Limfjord the Mussels will be landed straight from the fishing boat into the AQALIFE collection point. Mussels being cleaned and the tanks filled straight after landing The tanks are loaded straight into the marine shipping container after filling. The container piping system connects to the docking station. The shellfish in the marine containers are conditioned by the docking station. During this conditioning period all organic material is removed from the water and the shellfish is brought down to hibernation temperature. After conditioning the container can be released for transportation, hereafter the tanks are powered by the containers inbuilt air compressor system. The container can now be transported for up to 30days by Container ship, train or truck.

8 8 / LIVE SEAFOOD BY OCEAN CONTAINER - HALF THE PRICE AND 30 TIMES MORE ENVIRONMENTALLY FRIENDLY THAN BY AIR Shellfish production is amongst the fastest growing segments in the global aquaculture industry Shellfish is often bred in more remote parts of the world. Transport of live shellfish has been limited to environmentally unsustainable airfreight since shellfish has to be kept alive until hours before preparing. Worldwide the fresh fish segment has a growth of 8.8 percent against the industry s total of 3.3 percent growth. The Aqualife system can make a globalisation of the fresh fish industry by bringing an environmentally sustainable solution. Total export and import from the fishing industry in 2007 was US $75 billion, of which shellfish, representing 25 percent of the total volume has a value of US $30 billion and a continuing growth, says CEO Lars Nannerup, AQUALIFE. The price for our ocean freight of live shellfish is often 50 percent of the price by air freight which until now has been the only alternative. Further to this, measuring the CO2 emissions show that the CO2 impact per ton living shellfish is 120 kilograms for ocean freight against 3,600 kilo per ton cargo for air freight. A variety of environmental problems have been overcome by our freight solution. Besides the radically reduced CO2 impact in the big picture, one can detect more local benefits, such as less noise and traffic around airports and dense populated areas, Lars Nannerup says. We are very conscientious about the environment impact such as being selective in the breed of shellfish, the impact of freight, and the amount of waste produced.

9 9 / Aqualife to use Halifax as hub Date: August 26, 2009 Danish company to ship live shellfish to European markets Halifax Herald By TOM PETERS Business Reporter Wed. Aug 26-4:46 AM A Danish company is ramping up its operations in Halifax to increase exports of live shellfish from Nova Scotia to expanding European markets. Aqualife Logistics, in co-operation with Maersk Line, is moving live product in specialized containers to Europe through a pilot project. Lars Nannerup, Aqualife s CEO, is anxious to increase business. Mr. Nannerup said the specialized containers can keep lobsters alive for two weeks, well within the time needed to move the product to European markets. Lobster shipments are arriving in Europe with less than a one per cent mortality rate and maintaining very high quality. "At this point, we are moving lobsters on a weekly basis," Mr. Nannerup said Monday in a telephone interview from Denmark. Over time, he said he plans to increase the variety of shellfish being shipped to include mussels, clams and oysters, "products that today are too low priced for air freight." Mr. Nannerup said "there is a huge opportunity to increase the market for the production of those products in Atlantic Canada." The oyster market in Europe, for example, is more than 200,000 tonnes a year and growing. "We are also setting up a receiving facility in Asia, so later we will be able to ship products from Atlantic Canada to Asia as well, but to start with, we are looking at the European markets with a high level of consumption of shellfish, which is southern Europe and central Europe." What is attractive to the environmentally conscious Europeans is the fact that the products are travelling as marine freight and not air freight, which means a reduction in air pollution, he said. "The European consumers are buying into this because we have documented C02 reduction of about 90 per cent," he said. "So from a carbon-footprint point, we are reducing the C02 emissions. "This is something important to the European consumer, and increasingly so, particularly in northern Europe. So we really have to reduce the amount of trucking and handling as much as we can so we can sustain a strong green profile and pave the way, if you will, for a green lobster into Europe." Aqualife is making Halifax its transportation hub and is working with a local trucking/logistics

10 10 / firm to either use present infrastructure or erect its own facilities. "We want to increase our volume so we can handle more than four, 40-foot containers a week," he said. Aqualife wants a direct service out of Halifax to Europe. Its shipping partner, Maersk, operates a seasonal service out of Halifax, so product is being shipped by truck to Montreal and loaded onto Maersk vessels. Mr. Nannerup said there are discussions on different options, but solving the issue of a direct service to Europe on a year-round basis is an issue for Maersk. Aqualife gets its products in Nova Scotia, but that may change, he said. "To start with, we have had good and fruitful co-operation with the province and our emphasis for our activities is in Nova Scotia. As we develop, we will be able to collect product from Prince Edward Island, New Brunswick and other provinces, but our central hub will be Halifax." The live shellfish project fits nicely into the port s business development strategy and creating a niche market for temperature-controlled cargo. It s a niche the port identified in recent years, said Michele Peveril, a Halifax Port Authority spokeswoman. She said the port has developed an expertise in handling high value, temperature-controlled cargo and has invested in infrastructure. In the past year, the authority has installed additional electrical plugs to accommodate refrigerated containers and now has 1,000 total plugs at its two main container terminals. ( tpeters@herald.ca)