Interview with Dr. Ottmar Gast

Dr. Ottmar Gast, the chairman of the Hamburg Sud Group's executive board

Q. The trend toward greener ships is booming in the global shipbuilding industry. Are the new ships designed to be eco-friendly?

A. I think nowadays it is of course of crucial importance to have efficient ships. Efficient in terms of fuel consumption and in terms of environmental issues as well. And so far we focused very much on the design, on the one side the design of the engine, but even more important the design of the hull.

Nowadays the shipping lines apply slow steaming. The speeds are lower than in the past, and for ships which are optimized for slow steaming, then not only the engine has to be smaller, but also the hull has to have another shape, has to have another design.

And in so far we undertook very much efforts to optimize the hull and we created this sort of competition between various institutions to find out who can provide the most efficient hull design. And by doing this, we could improve the efficiency by another three or four percent contrary to more usual designs.

There are other important aspects like the engine. It's a modern engine with a low rep, with quite low power, because if you do not need the high speed then you can make use of smaller engines.

There are a lot of smaller features which are very environmentally friendly. And in so far we think we will get very cost efficient and environmental ship. For us, the criterion is to have lowest consumption per container carried.

We do not look on the consumption of the whole ship. The decisive (factor) is that the consumption per container and per mile is optimal, because we get the money from customers for shipment of one container, and therefore the container is the decisive criterion.

And therefore the size of the ships, the ships are as big as one can deploy ships in South America. There are operational restrictions and we went to the limits with this size of the ship, as far as length, width, and also draught is concerned.

Q. Hamburg Sud has had many ships built in Korean shipyards.

A. I think, nowadays, the best quality of ships one can get come from container ships (which) come from Korea. And we are ordering and building ships in Korea already since now more than 10 years. And at various shipyards, but with small differences, all ship yards deliver very good quality.

And I am very much convinced that here, especially at Hyundai (Heavy Industries) we will get excellent ships. I think the relation between value and price, value that you get for the price, is the best when you get ships from Korea.

Q. This is the first time that you have dealt with Hyundai Heavy Industries. Are you satisfied with dealing with HHI?

A. I just had a conversation with our site office manager and he confirmed that they made a very good experience up to now with Hyundai, the Hyundai yard here in Ulsan. Excellent relationship. Excellent quality. And we are looking to get very reliable and cost efficient ships.

Q. The merger attempt with Hapag Lloyd failed. Do you still think that there's a possibility for another attempt?

A. I think so. We are convinced that this would be good move for the benefit both companies. The competitiveness of both companies would improve. And if the industry will consolidate more on the future, then we would be in a very good position.

So far, the management of Hapag Lloyd and Hamburg Sud are very much supporting this attempt. But it remains to be seen at the end whether the shareholders, the owners of both companies will come to agreement. There are some hurdles and obstacles which have to be overcome. So far, the outcome is open.

Q. Is there anything you'd like to address to or say about the global shipping industry?

A. I think global shipping industry is very challenged by situation, by the fact that we are confronted still with overcapacities, and in so far the freight rates are under quite some pressure.

Unfortunately this will not change too fast because the overcapacity will remain for quite some time. Especially because shipowners have started to order new ships again already, although there is the overcapacity in the market still.

But the reason for it is that the ships which one can order now, they are optimized for the slow speeds, at the moment quite reasonable prices, and in so far it may make sense, notwithstanding the fact that overcapacity pertains. < 이경희 기자 khlee@ksg.co.kr >