The BWT Bulletin

The BWT Bulletin
Corporate news & updates by Optimarin · 1/2014
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2013:
A challenging year
with hope on the horizon
AT LAST!
BWM ratification goal
in sight
FAST TRACK TO SUCCESS:
Optimarin wins
Deloitte Fast 50 Award
Moving development
for Optimarin
“We are perfectly positioned to
take advantage of a renewed
wave of interest in BWT.”
2013:
A challenging year with hope on the horizon
Optimarin made the most of what was a very challenging 2013 for the ballast water treatment (BWT) industry.
Our simple, flexible and reliable BWT systems found favour with a host of major players in the shipping industry,
across a diverse array of segments, ranging from bulk carriers, to container ships, ro-ro vessels and Offshore
Supply Vessels (OSVs).
Leading names such as Siem Offshore, Hapag Lloyd and Torvald Klaveness placed orders for Optimarin’s
Type Approved solution - also accepted as a US Coast Guard approved AMS in June - cementing our
position as the leading supplier of BWT units for vessels up to 60,000dwt. Overall, 80 new orders were
placed across the year for our system, pushing Optimarin’s total number of units ordered up to the 280 mark
at year-end. Of these, 140 systems are now installed, or commissioned for operation, across the global fleet.
So there’s much to celebrate, but it wasn’t easy.
A new market reality
In short, 2013 was not a vintage year for our industry.
On-going uncertainty over the ratification of the IMO’s Ballast Water Management convention, the MEPC
65 proposal – a resolution, now passed, relaxing the deadlines for the installation of BWT systems on
existing vessels – and a slow-burning global economic recovery combined to depress the market.
Understandably, fewer shipowners than expected subsequently placed BWT retrofit orders for their
fleets. In turn, this dearth of retrofit orders increased competition in the newbuild arena, as the
industry scrambled for every available contract.
All system suppliers, us included, felt a degree of pressure, with some suffering more than
others. In this climate, some opted to postpone the production of their own solutions until the
arrival of a more favourable industry outlook.
Consolidating for growth
However, despite the tough environment, Optimarin managed to retain its strong market share
and established position as a true technology leader.
We are now in the position where a solid backlog of orders on the books gives the company
a secure platform for growth as we head into, what we believe, will be a much more promising
twelve months for the industry (see the following article on the imminent ratification of the IMO
convention).
Internally, we have streamlined operations to adapt to the reality of the marketplace, focusing on
a leaner, more efficient structure now, with firm foundations in place for sustainable expansion into the
future. We strongly believe that, thanks to both the total support of our owners and the improving market
prospects, we are perfectly positioned to take advantage of a renewed wave of interest in BWT solutions.
Our customers, meanwhile, will be able to take advantage of the best system on the marketplace,
produced by a team with unrivalled expertise in this specialist, and increasingly important, shipping
industry segment.
Here’s wishing you all a prosperous and very happy 2014.
Tore Andersen, CEO, Optimarin
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AT LAST!
BWM ratification goal in sight
After a decade of waiting it’s difficult to know whether to laugh
or cry.
There have been many false dawns since 2004, when the IMO’s
Ballast Water Management (BWM) Convention was introduced, but
a wave of industry sentiment, alongside growing political will, clearly
indicates that 2014 will be the year of ratification.
Resistance is crumbling
Progress on the convention has been painfully slow. Despite the
transportation of around 10 billion tons of untreated ballast water
per annum, containing around 7,000 marine species on any given
day, flag states have shown real resistance to ratifying a regulation
tackling “the second biggest threat to global biodiversity after
climate change” (WWF).
It’s taken ten years to muster signatures from just 38 countries,
representing 30.38% of the world’s tonnage, which still leaves us
short of the 35% magic mark required. However, the passage of the
MEPC 65 resolution late last year looks as if it may have been the
catalyst for people to pick up their pens, as several key states (such
as Japan and Singapore) are rumoured to finally be on the brink of
signing.
Retrofit relaxation
MEPC 65 relaxes the deadlines for the installation of BWT systems
on existing vessels – recommending that ships built prior to
ratification need not install systems before their first renewal survey
after that ratification. This gives shipowners years of previously
unavailable breathing space to plan retrofit installations across their
global fleets.
Japan was key to the introduction of this resolution and, now it
has been adopted, there appears to be no further obstacles to their
acceptance of the convention.
Aside from the political manoeuvring, key industry indicators
also paint a telling picture. After a difficult year in 2013, especially
with regards to retrofitting, activity is now picking up, with key
engineering and installation firms currently in demand to assess
vessels and scope out the best BWT solutions for their specific
needs.
Optimarin’s type approved ballast system
Be prepared
A recent report from industry analysts Frost & Sullivan forecast that
the BWT industry is now set to grow at 21% per annum, with a peak
of retrofit activity in 2018. The same study reveals that the segment
earned global revenues of $466.6 million in 2013, but that this figure
should leap to around $3.14 billion by 2023.
From Optimarin’s perspective we believe that the convention’s
ratification – probably as early as the first quarter of this year – will
lead to a steady growth of orders from mid to late 2014, with a
further increase throughout 2015.
With such a wave of activity on the horizon we have clear advice
for shipowners – plan for installation of BWT systems across your
fleet, and begin planning now. The ratification has moved from a
probability to an inevitability and a rush to conform is sure to create
implementation bottlenecks. Make sure you schedule installation
into your on-going dry-docking plans to ensure compliance.
After waiting a decade for action on this, it’d be a real shame to
get caught out …
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“We are a genuine pioneer in
our field.”
Tore Andersen, CEO, Optimarin
FAST TRACK TO SUCCESS:
Optimarin wins Deloitte Fast 50 Award
Optimarin has won the Deloitte Fast 50 Award for the fastest
growing technology company in Norway, thanks to its
phenomenal growth between 2008 and 2012. In a special
awards ceremony In London, Optimarin was also recognised as
the fastest growing within its segment in Europe.
“It really is a proud achievement for us,” concludes Andersen,
“and one we couldn’t have managed without the huge efforts
from all of our team over the years and the great relationships
we’ve established with our agents, suppliers, the yards and all our
customers. Thank you to everyone!”
During the four-year period the firm boosted revenues from NOK
2m to NOK 136m, a leap of some 5534%. The second placed firm,
an Oslo-based biotech concern, lagged some way behind on (a still
very impressive) 4051%.
“This is wonderful news and a real endorsement of the success
of our technology within the BWT marketplace,” comments Tore
Andersen, Optimarin’s CEO.
Dedicated to delivering
Andersen admits that achieving the first place position in Norway
was unexpected but says that this is a surprise that has been a long
time in the making.
“We are a genuine pioneer in our field,” he notes. “Optimarin
installed the world’s first commercial BWT system in 2000, on-board
the Regal Princess, and since that point we’ve committed ourselves
to constantly refining our technology and our simple, flexible and
reliable systems.”
“We know the market, understand the needs of our customers
and are dedicated to delivering complete regulatory compliance
and, importantly, peace of mind. This is a proposition that takes time
to perfect and the award demonstrates, in the most eye-catching
way, that all that hard work has really paid off for the business.”
Top 20 success
Optimarin received the award from Deloitte at a gala ‘Winners
Dinner’ at Claridges in London on November 28th. Here, Eivind
Undergress, a partner at the accounting and consultancy practice,
commended the company on its “fantastic growth history” and
“impressive development.”
The Fast 50 national awards are a part of the wider Fast 500
initiative, focusing on businesses across the EMEA region that grow
as a result of self-developed technology. Optimarin also achieved
real success in this arena, ranking as the 20th fastest growing
firm in the entire area and the fastest growing business in the
‘semiconductor, components and electronics’ industry sector.
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Moving development for Optimarin
The Optimarin team has made the move into new, state-of-theart head office facilities overlooking the fjord at Forus, Stavanger
in Norway. The relocation comes just a few months ahead of the
company’s 20th anniversary – making it one of, if not the, longest
established ballast water treatment specialists in the shipping
industry.
Situated just a stones throw away from the previous facility, the new,
totally refurbished building is tailor-made for our operations, boasting
modern offices, spacious warehousing capacity and a bespoke test
area. This latter space is set aside to trial and demonstrate our market
leading BWT technology.
Optimarin CEO Tore Andersen says of the move: “This marks the
start of a new chapter for the business, providing the optimum working
environment for us to continue developing and marketing our system to
customers across the globe.
“We’re looking forward to making the most of the new market
opportunities, in our fantastic new home by the fjord.”
Optimarin gets USCG approval
Optimarin’s BWT system has been accepted for
the USCG’s Alternative Management System (AMS)
programme. This means that vessels fitted with our typeapproved solution are free to discharge ballast water in
US ports.
All newbuilds constructed after December 2013 must have
USCG compliant systems to perform this task, while existing
vessels with applicable ballast capacities will be required to
meet the same standards by their first major dry-docking after
January 1, 2014.
Optimarin is now in the final stage of evaluating the existing
test documentation relating to the IMO type approval and
performing a GAP-analysis versus USCG/EPA’s ETV protocol
requirements.
Optimarin’s simple, flexible and reliable BWT technology has
established a strong market position with both Japanese shipyards
and the country’s shipowners. As a result, the business has taken on
a full-time member of the staff in the country, Mr Hichyu Tei.
Tei, who is Taiwanese by birth but has lived and worked in Japan
for the last two decades, has been recruited in the role of Project
Engineer. His principal task will be bridging the gap between the
project managers and the customer, ensuring that the latter receives
first-class service, while the former operates at optimum efficiency
on every agreed project.
Martin Linder, President of Optimarin Japan, comments: “Hichyu is
a living proof of our commitment to provide excellent levels of service
to our global client base. Japan is an increasingly important market
for us, so it pays to have a dedicated expert on the ground with a real
understanding of both our operations and the clients’ businesses.”
Tei is fluent in both Japanese and English.
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The BWT bulletin
Corporate news & updates by Optimarin
Optimarin AS
Sjøveien 34
4315 Sandnes
Tel.: +47 51 11 45 33
Fax: +47 51 12 31 03
Email: [email protected]
Web: www.optimarin.com
Going the extra mile for our
customers … in Japan
Editor-in-Chief: Tore Andersen
Editorial production: Blue-C
Contributing writers:
Alan Johnstone
Mark Fuhrmann
Design & layout: DesignAid

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