Frederikshavn still has a number of maritime repair and supply companies servicing ships. A repair company has grown up from nothing in close cooperation with other maritime businesses in the old docks. Both yards have closed down leaving some 2,000 people unemployed. The picture shows the Norwegian controlled “Green Måløy” being repaired after an engine-room fire, and “Baltic News” is in for an overhaul, thus giving business to the companies in the area. PHOTOS: BENT MIKKELSEN

Frederikshavn, Denmark: A new beginning after the loss of two shipyards

The Port of Frederikshavn on top of Jutland was turned upside down over the last couple of years: the closure of two shipyards, massive job losses, the loss of a domestic coaster fleet, new ownership, and a new way of maritime life are just some of the recent events that have shaken Frederikshavn and its port. Despite all the negative developments, however, the town and its port have landed on their feet and are back in business, with everyone working hard to make up for the past losses. This involves new businesses in the maritime sector, new clients on the quayside, a new way of doing things on the landside and most importantly: a new ownership of the Port.

From state to local ownership
Previously until the year 2002, the Port of Frederikshavn belonged to the state owned company Statshavneadministration, which had their main office in Frederikshavn. In 2002, however, new legislation on port ownership and port business was passed, exposing ports to the threat of being sold out and breaking down the old structures. The Municipality of Frederikshavn then decided to buy the Port from the state, putting in new management and a new Board where the majority of the members had a background in commercial shipping.

Only two of the Board members are from the political scene. Head of the Board is the former Manager of DFDS, Frederikshavn Værft and B & W/Alpha-diesel Niels Bach. The next step was to find a commercial manager to ”sell” the port on a daily basis. Preben Reinholt was hired, a man who used to work for B & W/Alpha-diesel, one of the larger maritime business in Frederikshavn.

Preben Reinholt says:
– It was quite some task to tackle. The closure of Danyard and Ørskov Staalskibsværft with the loss of more than 2,000 jobs directly on the quayside had plunged the port into a depression. And during the new ownership, I must say, he adds, it has been a pleasant surprise to see and experience that the politicians have kept their fingers off the daily business. I feared that politicians would interfere as often is seen elsewhere, but they have turned out to be good partners in Frederikshavn.

	The recycling of old ships is now part of the activities in Frederikshavn. This business, which some years ago was still looked down on, now is a gold-mine. In this picture, the Danish submarine “Nordkaperen” is waiting to be cut up along with the Norwegian “Polarboy”, “Sør-Troms” and the tug “Actantus”.

New business
– Well, initially we had quite a number of companies in the maritime sector, and their number has even grown after the closure of the two new shipyards.

Today, there are 43 companies in the maritime industry operating from the Port. A part of this growth has arisen from the employees of the former shipyards. A number of people have started their own businesses, such as Marine Services founded by H.C. Studsgaard, who was Purchases Manager of Ørskov Staalskibsværft; ShipCon, founded by Naval Architect Erik Bøgh, who was Head of the design office in the same shipyard; furthermore Vestergaard Marine Service is another example of a fast-growing business. Morten Vestergaard left his position at Wärtsilä Diesel in Hirtshals and chose to start his own company in his home town. After a relatively modest start in 2000, the business has grown fast to employ 22 people in 2004.

The company also is a price winner, as the local Nordea Bank branch granted Vestergaard Marine Service a gazette price for being the company with the fastest growth rate in town. In terms of its activities, Vestergaard Marine Services is a machine workshop with expertise in all types of engines and engine parts.
Lately the company has also taken in repair jobs of propeller blades and shafts (aligning and general repairs of blades and propeller shafts).

	Steel scrap has become an interesting commodity as prices of scrap metal go sky-high. Frederikshavn has become a centre for the exports of scrap for the two largest companies in Denmark.

Networking
To increase the strengths of Frederikshavn and its maritime businesses, a study with a view to further expansion was launched.

The local Business Development Office (part of the Municipal administration) looked into establishing a Frederikshavn Service Company, an umbrella organisation that would offer the customers a one-stop service point to contact, no matter what type of service they required.

– This idea was not well received, says Bent Christensen, who conducted the study funded by Frederikshavn Kommune, Nordjyllands Amt and Erhvervs- og Boligstyrelsen in Copenhagen.

– Every company wants to hold on to their own clients, buying services from another company if required. They just don’t want give their clients’ telephone numbers to anybody, so it looks like the idea was not very successful. All those involved were happy about the prospects of new clients. We looked into the number of ships passing Frederikshavn and those that could call at the port with a minimum deviation.

– With the help of Søværnets Operative Kommando (SOK) that patrols the Danish waters, we got the figures concerning the number of ships passing Frederikshavn. That was 6,061 vessels a year (based on 1,279 vessels observed during the period 1 October 2003 till 16 December 2003). Of these 6,061 vessels, 54 per cent had a draft of less than eight meters, enabling them to call at Frederikshavn.
– This means great potential for the port, adds Bente Christensen, as the in 2003, 209 different ships called at the port a total of 609 times. Less than five per cent of the passing vessels call at Frederikshavn.

Part of the reason why Frederikshavn has lost business is the decreasing Danish coaster fleet. In former days with a number of coasters running from the Baltic to the North Sea and further out in the world, ships often called at Frederikshavn for coal and provisions before leaving Scandinavia. This has dwindled to only five coasters that regularly call at Frederikshavn, instead of some 100 vessels only 15 years ago.

More action on the quays
In their heyday only a few years ago, most of the quays at Frederikshavn were full of steel plates and components for ship-building. They now stand empty, as the building of new ships stopped at Danyard in 1999 and at Ørskov Staalskibsværft in 2003. One of the tasks for the new management has thus been to find suitable cargos to attract to Frederikshavn. Port Manager Preben Reinholt says:

– We have a couple of agents who are very eager to find new business. Let me mention Thomas Hesselby, who started his own business some years ago after a long-term engagement with Stena Cargo in Frederikshavn. He has managed to persuade several clients to use Frederikshavn. This is why our cargo volumes at Frederikshavn have gone up dramatically. During last year, they increased by some 45 per cent, now being 80,000 tons. This figure is not very high, but we started from almost nothing, Preben Reinholt adds.

– Most of the commodities are stone for roadwork and building materials, which are not high-profile categories of goods, but they represent a good, tangible start.

Recycling
Another low-profile commodity in the port is scrap and recycling products. Stena Metall has chosen Frederikshavn as their collection point for steel scrap from most of the Northern parts of Jutland. It is taken to their quayside plant for preparation before shipping it out directly from the quayside.

During the last few years, the higher prices paid for steel scrap have made it more and more interesting for recycling companies. From almost nothing, the price for a ton of scrap has gone up to be quite fair.

This fact has even given rise to competition on the quayside, as H. J. Hansen, an established and esteemed Danish-owned company, also chose Frederikshavn as their steel scrap port.

The good prices paid for steel scrap have attracted yet another type of a company to Frederikshavn: those engaged in the recycling of old ships. Orlas Produktforretning established a ship demolishing plant in Frederikshavn Ørskov Staalskibsværft’s old facilities. In other words, a berth that used to be the birth place for ships now has become their graveyard. The recycling – or scrapping – of ships is increasing, along with a certain amount of spare parts gained from the vessels sold for breaking up. Most of the business, however, involves cutting up steel and preparing it for being sold to a foundry.

– We are quite confident about the future of the Port of Frederikshavn, Preben Reinholt says.

– We have a number of well-run business, who in the future will find clients that will use the Port of Frederikshavn and we will provide the proper facilities to give the businesses the kind of backup they need. We have high hopes of achieving this, as we just sold off some 125,000 sq m of land to the Municipality of Frederikshavn for a new industrial estate. We can not sell the land, so the Land Office of the municipality takes care of that.

– But I am sure it will mean more business for the companies of the maritime sector in Frederikshavn, Preben Reinholt says.
He goes on to mention that the most of Ørskov Staalskibsværft’s former buildings were sold to a company called Lillebæltsgruppen as part of a development plan.

//Bent Mikkelsen

Latest update 18-10-2006 8:49

All material © Scandinavian Shipping Gazette.

Scandinavian Shipping Gazette | www.shipgaz.com | info@shipgaz.com | webmaster | Contact us | Cookie information