Page 13: of Maritime Reporter Magazine (September 1999)

Marine Business

Teekay Shipping: Staying One Step Ahead

Events of the past two years — head- lined by the Asian financial crisis, sup- ported by falling oil demand and punc- tuated by OPEC's production cutbacks to buoy per barrel pricing — have con- spired to throw and keep the tanker mar- ket into a historical abyss. In an indus- try renowned for its ups and downs, this was a "down" for the record books.

Consequences of poor rates for the transport of oil products have and will be debated for years, but relying on the cliche, "if it doesn't kill you, it will only make you stronger," it would appear that the companies left standing - those not acquired, merged or simply shut down - should be poised to capitalize on favor- able market conditions to come. None, perhaps, is so uniquely suited to prosper as Teekay Shipping.

Building the fortress

A quick glance at Teekay's recently released annual report does not immedi- ately give the reader the impression of a company moving forward. Net income, for example, plummeted from $70.5 million in 1998 to $45.4 million in 1999, and the company's operating cash flow per ship day declined from $12,682 to $11,171 in that same period. But alas, numbers alone cannot depict the full scope of Teekay's strengths, as the com- pany has initiated and completed an impressive array of projects — both inside the company and out — which are designed to ensure the profitability of the company, in good markets and bad, for decades to come.

Teekay was created in 1973, and cur- rently owns and operates the world's largest fleet of medium-sized (Aframax) oil tankers. Employing more than 2,700 people worldwide, Teekay is well regarded within the industry as a "quali- ty" owner, with a reputation for safety and excellence in transporting crude oil and petroleum products.

The previous year — barring all other good developments — was significant for the company in terms of building a long-term powerhouse with its acquisi- tion of Bona Shipholding, a move that significantly expanded the company's operation in the Atlantic

Basin. The transaction — which the company believes was carried out in the low part of the cycle — created a company that is three times larger than its nearest competitor, and gave Teekay 11 percent of the global Aframax market fleet.

While the Bona acquisi- tion was a significant move that otherwise would have taken many years through natural growth, it was not the only development dur- ing the past year, which was

Axel Karl- shoej,

Teekay's retired director and chairman.

Bjorn Moller,

Teekay's direc- tor, president.

Call for Papers

PROPELLERS/SHAFTING 2000

TECHNOLOGY FOR THE 21st CENTURY

The ninth propeller symposium is being planned by Panel M-16 (Modernization of Propulsion Shaft Systems) of the Society's Technical and

Research Program. This symposium will include the overall propulsion train, including propeller, bearing and shafting system. The symposium is planned for September 20 - 21, 2000 at the Cavalier Hotel, Virginia Beach,

Virginia, under the auspices of the Hampton Roads Section of the Society.

The original deadline for abstract submission was August 21st, 1999.

However, to broaden content and interest for the millennium, this deadline has been extended to October 15. Papers on the following subjects are par- ticularly desired, but other topics related to propulsion shafting, propellers and supportive components and techniques are welcome. • Propeller and Shaft Systems, Analytic Design Procedures, Experimental

Data, and Correlation of Design and Experience Related to:

Shafting Systems

Indoor / Outboard Sections

Conventional / Composite Materials

Shaft Alignment

Hydraulic, Mechanical and

Flexible Couplings

Lateral & Torsional Vibrations

Propellers

Fixed / Controllable Pitch

Contra-rotating, Highly Skewed

Overlapping, Cycloidal

Ducted, Podded Units

Composite and/or Metal Matix

Water Jets

Bearings

New Materials / Design • Manufacturing, Tolerances, Maintenance and Repair • Metallurgical Properties • Composite Materials • Failure Criteria and Economic Costs • New Technology for Reducing Costs

Those interested in submitting an abstract should submit both a tentative title and a brief abstract along with telephone and fax numbers and an email address (if possible) to:

Mr. Jerry Havel

Two World Trade Center 106 Floor

New York, NY 10048 212-839-5095 212-839-5214 (fax) [email protected]

Authors will be notified of acceptance by November 30th, 1999 and a draft of the complete paper will be require d by January 31, 2000.

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