The Road to Excellence
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1 The Road to Excellence Current Trends in the Polish Ship Management Industry Radoslaw Stefaniak Polish Ship Managers Association Secretary
2 Point of Departure
3 ships - belonging to Polish shipowners usually modern vessels of various types Polish flagged ships owned by Polish shipowners but only 22 are Polish flagged and they are mostly old vessels not used in international trade
4 Cause? Lack of vision regarding the role of maritime economy in Poland resulting in: Lack of proper regulation not suitable to trends in modern shipping (especially in the field of seafarers taxes & social security contribution) Diminishing role of largest Polish ship owners Reflagging of remaining Polish-owned vessels
5 Initial Conclusions Polish flag as it is today is unattractive not only to foreign shipowners but also to Polish companies Seafarers tax issues Seafarers social security contribution issues Considering present market conditions & aforementioned problems mean that it is impossible for Poland to return to the status of major ship-owning nation in the short and medium term perspective The view that the Polish Flag should be a goal in itself still has many supporters in Poland but this view is out of date and hampers further development; Polish Flag shall be treated as a way to achieve goals (e.g. increase of financial budget revenues) instead
6 Meet the Alternative Development of ship management industry in Poland
7 Number of ships managed by the Members of the Polish Ship Managers Association 204 vessels [mostly ocean-going, significant number of offshore vessels average tonnage of managed vessel DWT in total nearly 2,4 mln DWT Remark The aforementioned number does not include ships managed by ship managers non-members of PSMA Comparison Polish owned fleet 96 ships 2,4 mln DWT
8 Median Number of Ships Managed by Polish Ship Manager PSMA Member > > > > NUMBER OF SHIP MANAGING COMPANIES
9 Polish Ship Management - Present Form Transformation of ship management services in Poland By Type of Activity As defined by the (2009/C 132/06) - Communication from the Commission providing guidance on State aid to shipmanagement companies From Crewing Agencies =====> Crew Managers From Crew Managers From Technical Managers =====> Full Management Commercial Management (parts)
10 Polish Ship Management - Present Form Transformation of ship management services in Poland (continued) By type of relationship between Ship Manager and Ship Owner In-house management model ===> hybrid management model ===> full third party management model Polish Ship Manager Position on the Market Ambition & Potential Remark Most Ship Management Businesses in Poland were created after 2008 from transforming Crewing Agencies
11 Re-Shaping of Triangle of Responsibility
12 Triangle of Responsibility Traditional Model Owner Upkeep & Daily Operations Employment Ship Crew
13 Triangle of Responsibility Dominant Model Owner Shipmanagement Contract Fees Shipmanagement Contract Ship Manager Upkeep & Daily Operations Employment Ship Crew Skillful separation of ownership and management activities is the key to improved economic performance
14 What are the reasons behind successful transition from a ship owning nation to a ship management center?
15 WHY POLAND?
16 Strong Point #1 Convenient Location
17 Within approx. an hour of direct flight by budget airline from major shipping centres in Europe
18 Ports capable of accomodating large and very large ships Gdańsk Gdynia Szczecin Świnoujście All of them with potential to expand capacity 2 or even 3 fold
19 Source: Ministry of Maritime Economy & Inland Navigation This club will soon be joined by Elbląg
20 Strong Point #2 S h i p y a r d s a n d S h i p r e p a i r Y a r d s
21 Poland holds second place in Europe (after Germany) and fifth in the world with regards to values of shiprepair and shipbuilding contracts respectively Szczecin Shipyard
22 Strong Point #3 Highly qualified personnel
23 Poland ranks among nations contributing a fair share of work force entering the maritime job market At least Polish seafarers are employed on ships owned by foreign ship owners & ship operators From 30 to 60% of crews employed by Polish shipmanagers come from Poland Seafarers are employed via labour agencies with registered office in Poland It is also worth mentioning at least Polish Managers & Superintendents working abroad Should conditions become appropriate they are eager to come back to Poland and use their skills & experience for the benefit of the ship management industry
24 Strong Point #4 T r a i n i n g F a c i l i t i e s a n d C l a s s i f i c a t i o n S o c i e t i e s
25
26
27 Strong Point #5 R&D Facilities
28 Strong Point #6 Low Cost
29 Why employ Poles on Owners countries conditions? When it is far more economical to contract work to Poland and employ Polish staff here one of the strategic goals of the Polish Ship Managers Association is to assist newcomers in establishing themselves in the Polish market
30 Strong Point #7 N o n - e x i s t e n t d i s t a n c e f a c t o r Nearly all R&D entities, training facilities, shipyards and spare part providers are located in the Tri-City (Gdańsk, Sopot, Gdynia) or Szczecin Region
31 What can we offer? To Foreign Ship Owners & Ship Operators the same [or even better] quality; in the heart of Europe for much lower prices
32 What can we offer? To Poland Instant benefit gradual increase of tax revenues via VAT, CIT and possible tonnage taxation Long term benefit revitalization of crucial branches of the Polish maritime economy shipbuilding, shiprepair, spare parts production, assistance in both legal and insurance field etc. Know how back in country experience acquired while working for foreign shipowners and shipmanagers may be used to create new promising shipmanagement businesses to the benefit of all parties involved
33 POLAND overall picture Convenient location in the heart of Europe Ports capable of accomodating even largest vessels Modern and successful shipyards Highly qualified and experienced personnel 3D Training Facilities R&D Facilities Low Cost
34 SHIP MANAGEMENT CHAIN SPIN-OFF JOBS Ship Owner Contract of Ship Mngt Investors, Bankers Ship Financing Ship Management Monthly Mngt Fee Legal and Acctg Retainer Agreement Commercial Services Agreed Monthly Fees Crew Management Monthly fee per head Technical Management Supply Contracts IT, Acctg Services Agreed Monthly Fee Chartering, Post Fixture Dealing with Cargo Crew Agent Provides Crew Various Suppliers Materials, Services Also other Services Telecom, PMS, etc
35 P o m e r a n i a n S h i p M a n a g e m e n t C e n t e r Key to the future of the Polish Maritime Economy A safe haven in times of unprecedented crisis of shipping Singapore of the Baltic Sea
36 Few words about us
37 MEMBERS OF THE ASSOCIATION Green Management sp. z o.o. Inter Marine sp. z o.o. Seatrans Ship Management Poland sp. z o.o Kopervik Ship Management Poland sp. z o.o. V Ships (Poland) sp. z o.o. NGT Services Poland sp. z o.o. (part of Navigator Gas PLC) Cargo Shipping sp. z o.o. Det Norske Veritas Polska sp. z o.o. Hartmann Crew Consultants sp. z o.o. SIEM Ship Management sp. z o.o. Academy Maritime Services Ltd sp. z o.o. Lloyd s Register Polska sp. z o.o. SMT Shipmanagement and Transport Gdynia sp. z o.o. Technical Ship Management sp. z o.o. POLARIS Usługi Morskie sp. z o.o. Polskie Ratownictwo Okrętowe sp. z o.o. Arriva Shipping Polska
38 SUPPORTING MEMBERS OF THE ASSOCIATION WILLIS TOWERS WATSON S.A. AHB SERVICE sp. z o.o. NET MARINE Marine Power Service sp. z o.o. ROMEKO marine sp. z o.o. Wilhelmsen Ships Service Polska sp. z o.o. STEFSHIP sp. z o.o. sp.k. MEDICA ASSISTANCE S.A.
39 For more information President of the Management Board (Mobile): Secretary (mobile): OR VISIT OUR WEBSITE:
40 Thank you for your time and interest And looking forward to assist you in your endeavour towards modern, safe & efficient management of your vessels
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