Industry Insight: SGMF Membership Uncovered - An Interview with Tim Gifford, Managing Director, Graypen

Graypen is a leading independent ships agency company which specialises in the provision of high-quality port agency services to tanker vessels carrying liquid cargoes of all kinds, from crude oil, through clean and dirty products, chemicals, liquid petroleum gases (LPG) and over the last ten years or so, liquefied natural gas (LNG). Our expertise has ensured a high profile and our ability to innovate improved ship agency processes has seen us shape the way that most agency companies now operate. Many global energy players use Graypen's services and the close relationships which their support brings form the basis of our ongoing development.

Formed in 1969, Graypen has developed in every year since and we now have a network of our own offices and more than 120 people covering all ports in the UK, The Netherlands and Belgium. In the LNG sector this means our local offices handle large LNG/Cs calling at the terminal in Grain and both facilities at Milford Haven, as well as Gate LNG in Rotterdam and the Fluxsys terminal at Zeebrugge. Our Hub Agency Team handles business on a worldwide basis enabling Graypen to manage oil and LNG port agencies around the world for several major principals. A dedicated Ship- To-Ship (STS) Transfer Team also specialises in the management of the transfer of cargoes between vessels at locations throughout North West Europe which are licensed for such activities. Other group divisions handle Customs Clearance, Freight Forwarding and Logistics, Marine Surveying and IT Services.

In parallel with these activities we see a natural progression for LNG to become a key marine fuel. So that Graypen can become a pacesetter in this new market we joined SGMF, enabling a closer understanding of the various developments in LNG bunkering. Being a Member of the organisation also allows us to interact with other parties who are driving the concept, as well as work with SGMF as it shapes the high operating standards required in such a fragmented but evolving market.

Against this background, Graypen is involved in a collaboration to establish a LNG Bunker facility in the UK to complement those in Scandinavia, Antwerp and Rotterdam. As this project evolves we anticipate there will be a growing range of ship-operating clients whose new ships will use LNG as a fuel.

As ship agents, do you think you play an important role in the shipping industry?

Whilst business is always created by the principals, there are a range of critical support companies whose expertise is vital to the success and profitability of the venture. These include shipbrokers, cargo inspectors and insurers, but it is the ship's agent who is the party responsible for coordinating all physical in-port operations, from both a cargo- handling standpoint (arranging berth and all navigational support services such as Pilots, tugboats and mooring gangs) as well as from a ship-husbandry perspective (supplying the stores, water, repairs,crew medical needs, repatriations etc for the ship's owners). The Ship's Agent is therefore the central 'go-to' expert for everyone and anyone who is ever involved in a ship's port call.

Does a ship using LNG affect your business? If so, how?

LNG bunkers on ships does not yet represent a mass market but we anticipate a steady shift towards LNG because of its low environmental impact, compared to oil. As such, we see this as a growing aspect of the important support activity that we provide to our clients.

What is Graypen hoping to achieve in the next 5 years?

Graypen is in a position of continuous development and we are conscious that in a dynamic and rapidly changing shipping world we cannot stand still. Our objective is to combine progressive innovation of our services but always ensuring the new ways remain fully compatible with our traditional values of hard work, honesty and integrity. Our core values are Service, Efficiency, Accountability and Safety (SEAS) which we feel engender all that is good about our role and our philosophy.

Are there any projects that you are working on right now that you think will affect Graypen's standing in the shipping industry?

We have a number of ongoing projects but a key focus for us is to build quality and reliability into our organisation at all levels. Many organisations are under pressure to cut costs and that rarely produces any planned strategy in their selection of service providers. As such, our projects cannot change the current short-termism of some clients and though we recognize that austerity policies provide temporary respite, such a path will inevitably reduce their ability to perform well in future.

What advice would you give to your customers who haven't made their mind up about which ship's agent to choose?

We are qualified people working in a long- established profession and we strongly believe that it is our responsibility to preserve high standards of expertise. Around us we see competitors whose service levels often lack substance. Conversely, Graypen is confident that our investment in education, training and the fostering of team-spirit will return dividends for us and for our principals as the shipping markets rebound. Price reduction is always a consideration but we believe it remains vital to give and receive genuine value from companies like Graypen.

Why is corporate responsibility Strategy (CRS) so important to you and your employees?

Graypen is founded on 'doing the right thing right, first time; every time'. We have a strong conscience for responsible business practices and our role is central to a wider operational success in all the places where we are located. As such, we see our position as being a catalyst for change as we create new and better ways to do business and try to ensure these 'changes for good' have a lasting impact. Only through an awareness of our strengths and our weaknesses can we truly serve our clients well.

What are you doing to promote LNG?

We regard LNG as energy for the future, not only in mature carbon environments but globally. As a key player in the current handling of high volume LNG shipments worldwide we see the potential to become centrally involved as broader and smaller- scale use of LNG takes place, with LNG ship-bunkering being one area of potential substantial growth.

I want to use a ship agent, how do I get in touch with you and who do I speak to?

If you are a company with vessels or cargoes to be moved you need the services of a ship's agent to facilitate all the key requirements including liaison with all port and national authorities. Our website is: www.graypen. com and on the homepage there is a short video illustrating Graypen's history and the 24/365 services that we provide. All/any specific questions can be submitted by email to: LNG@Graypen.com.

Our company has global operations, can you help?

Graypen's covers north Western Europe through a network of own-offices and the work of our Hub Agency Team extends the range of our influence to ports outside Europe, so while our footprint is European, our shadow is global. In the 'out-ports' we work with a set of independent partner agents, many of whom we have worked with for more than twenty years and who operate to the scope of services that Graypen prescribes. In keeping with the continuous nature of global shipping our services are available round the clock and our expertise can be hired on an ad-hoc or contract basis, depending upon the client's requirements.

Why did you join SGMF?

Graypen joined SGMF because we have a strong belief in the long-term importance of LNG, together with the economic and environmental benefits of LNG as a fuel source for ships. As the world demands a lower emissions from all types of transport, LNG will emerge as a clean and acceptable solution so our view is to participate early in the process and combine our expertise with that of the wider marine industry under the overall stewardship of SGMF.

What are you hoping to get from being a member of SGMF?

Our interest in SGMF membership is three- fold. We are looking to:

1. Ensure we are up-to-date on all developments relating to LNG as a marine fuel
2. Become a recognized authority in our sector of the marine LNG business
3. Establish solid commercial relationships with other like-minded companies in this specialised business

If you could change one thing about the shipping industry, what would it be and why?

This is an interesting question! My change is not strictly a matter isolated to the Shipping or Oil & Gas industry but if it was possible to make one change, I believe it could bring significant progress. 'Inertia of thought'! That is to say that when asked why a certain process or procedure is always followed, the answer given is 'that's the way we have always done it' should be outlawed!

Too often it is said relying on 'habit' without thought to how things might be approached differently. Alternatives are not considered, so possible opportunities to achieve a better outcome are missed.

It is, of course, a human issue rather than an industry flaw; in such a dynamic global business where creative problem-solving minds prevail, although this fall-back reason is safe it is all-too-often a reluctance to challenge conventional thought and find the genuinely best solution.

On behalf of SGMF, Tim, thank you for your time.