Executive Summary:

The 7thFramework Program under SST.2008.5.2.1 Innovative product Concepts

Innovative surface transport products and system concepts (vehicles, vessels and
infrastructure) strengthen the competitiveness of European industry meeting customer
requirements, changing markets and environmental challenges and to develop projects and
technological advances for a more sustainable and competitive surface transport.

The project EU-CARGOXPRESS presents a proven and convincing answer to the call
through an innovative and competitive VESSEL Concept connecting maritime and fluvial
intermodal port.

EU-CARGOXPRESS developed eight promising and challenging technological

breakthroughs:

 General arrangement in form of a Catamaran Cargo-Vessel

 High stability without ballast water
 Electric drive system with tanks and machinery in modular containers
 Sustainable propulsion support by a large Sail-Wing and Solar Panels
 On-board Ship-to-Shore Crane to handle container and XXL cargo alike
 Fast turn-over in small coastal and fluvial port-towns to reduce road-transport
 Fulfilling the Clean Ship-Concept (North Sea Foundation and T&E Brussels)
 Lightweight hybrid hull design and Serial construction

The vessel's energy efficiency results in more than 50% reduction of fuel consumption and
CO2 emission, using LNG piston machines only 36% of the time.

Short sea shipping is an industry with a bright future, considering the ever-increasing
attention to environment and the improved logistics versus congested roads. The
cargo/container vessel fleet has come to an age, in general, where renewal is required. EU-
CARGOXPRESS will represent a necessary leap forward for more industrialized and
environment friendly maritime transport.

The next natural step is the construction of a full - scale experimental prototype to serve
normal coastal cargo - traffic and gain experience in daily operation at sea and in port.

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Project Context and Objectives:

1.1 Basic motivation for the Project

The motivation for the Grant-Proposal were:

The 7thFramework SST.2008.5.2.1 Innovative product Concepts

The plans and actions of the European Commission to move a substantial part of the road
traffic towards the Motorways-of-the-Sea, containing Short-Sea-Shipping (MoS) maritime
links.

The White Paper for Transport.

The iniciative LEADERSHIP 2015 of the EU-Commission proposing the construction of new
standard vessels.

The fact, that the current European cargo-fleet for MoS cannot offer the necessary capacity
and uses outdated and energy intensive technologies.

From a cost- and time efficiency standpoint the existing vessels cannot compete with the large
series of road cargo vehicles like MAN, SCANIA or Mercedes.

The limitations, that a major part of the current CARGO-VESSELS lack the capability to
enter small and medium sized ports as the vessels draught exceed safe maneuvering water
depts.

Further that a large proportion of European and African ports lack proper ship-to-shore cranes
and cargo handling systems and will not install them due to small cargo volume.

The idea to repeat the success story of Ryanair, a very efficient airline, which has developed
service to hundreds of small airports throughout Europe and moved airtraffic from the large
Terminals to these destinations, which are generally faster and cheaper for the customer. The
proposed project aims to provide a feasible vessel for medium and small maritime or fluvial
ports to shorten considerably the remaining road-transport.

The objective of EU-CARGOXPRESS was to develop a new generation of competitive

CARGO-VESSEL for accelerated maritime and fluvial shipping using innovative concepts
and technologies; in order to support the greening of surface transport and prepare for fast and
efficient modal shift in the ports.

1.2 The context and the expected operations theatre for the projected vessel

The Consortium of scientists, engineers and economists based their R+D effort in the context
known during the Grant-Application, the changes experienced in the 32 month project
elaboration and the expected operations theatre (future context) between 2015 as first launch
of the new technology and 2030 as possible end of this product generation.

The different contexts could be grouped as follow:

A: Policy of the EU Commission

 The White Paper for Transport.

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  The iniciative LEADERSHIP 2015 of the EU-Commission proposing the
construction of new standard vessels.

B: Background of knowledge of potential efficiency reserves

MARINTEK elaborated a list of relevant technological drivers for a sustainable and

competitive vessel. This list represented the state of knowledge and expectation for potential
efficiency reserves to achieve the goals of the project.

Literature research produced 50 technology drivers and possible alternatives. All areas of
action from propeller blade design over ballast water reduction and wind-propulsion with
expected savings ranging from 2-70% were evaluated.

Resuming the results of the project the ranking had slightly changed.

Most success was obtained in Propulsion Technology with the combination of electric drives,
large batteries and a 700kW sail-wing.

The second ranking would be the elimination of ballast water all together.

The third is a novel on board Ship-to-Shore crane apt for container and XXL cargo alike.

C: The partial saturation and jamming of road-transport around the large Container Terminals
due to increasing Inter-EU-Cargo-Transfer and insufficient funds for general road-
infrastructure.

Backed by strong support from the Commission all efforts undertaken had to be seen in this
context. Maritime transport can only alleviate road-traffic within a distance of 200km along
the coastal or navigable fluvial line and around the large over-sea Container Terminals.

The project studied over 1200 ports in Europe and Africa and found 560 port/towns without
any maritime cargo-transport, but apt for small cargo vessels having proper loading gear to
serve these towns and the hinterland.

This is a market of 36 million to 64 million of humans with all their buildings, industries,
agriculture and recycling needs. The direct delivery by see or river into the heart of the town
would reduce substantially coastal road-transport.

Port of Rethimnon, Crete:

41.687 inhabitants; 126,5 km2 hinterland

The conditions to select the 560 candidates from the list of 1200 were:

 Min 200 m quay or berth length

 Min 2000 m2 space behind the quay

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  Access to regional road-system
 Min water-depth in low tide 5m
 Eliminating ports over 150.000 inhabitants

The projects advance has to be seen too in the context of the success-story of the Ryanair,
serving hundreds of small airports in a very cost efficient manner. CargoXpress could become
the Ryanair of the sea.

D: The expected faltering fuel supply due to overexploitation of reserves and exploding
demands of the newcomers India and China for their huge population and demand on
mobility and progress.

Although there is still some discussion on the speed and impact of fuel resource depletion, the
general scientific forecasts points clearly towards higher prices per ton of liquid fuel. These
forecasts do not anticipate the rising competition for the remaining resources, because some
transport sectors like road and air-transport have very little chance to employ sustainable
energies and will pay prime prices to keep working. Maritime transport on the other hand can
rely on wind or solar power.

In this context the R&D work of the project has been very successful.

E: The restrictive environmental regulation due to the excessive emissions of CO2, NOX and
SOX by current energy converting technologies. The most challenging regulations affect the
SOx and NOx emissions, which have to be reduced in the ECA regions already by 2015 and
globally by 2020. If the non-compliance will be charged with additional costs, the whole
cargo-fleet has to be refurbished by adding cleaning devices or by changing to LNG or
replaced, a task impossible to fulfil within the following years. Otherwise the competitive
advantage to road-transport is reduced.

The CO2 reduction, a strong EU-Goal, requires simply the partial or total replacement of
fossil fuels by sustainable energies. During the project execution this context gained further
importance as shown in the changing objectives for the 8th Framework-Programme.

F: The on-going crisis in the shipping market brought during the project a different
background to the project. Hundreds of vessels were scrapped or laid idle and the rates for
chartering halved. In this context proposing bold changes for technology is not an easy task.
Although the nature and regularity of shipping-cycles described by M.Stopford are well
understood, the pessimistic investment environment prevailed.

G: The outdated current vessel-fleet as a defining context was discovered late during the
project. More than 10.000 vessel of the fleet of (500-25.000GT) container and cargo vessels
are over 15 years old, 6.500 of them over 25 years. All these vessels were built before the
fuel-crises and environmental awareness. All are at the end or over their expected live span.

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Their fuel efficiency is very low and maintenance costs are mounting, because of outdated
equipment and corroding steel-constructions.

1.3 Objectives for this EU-Project

Within this context, the project concentrated on issues, which have the major impact on future
sustainable and green maritime transport in line with EU strategy. It investigated alternative
energy forms, usage and conversion, best low resistance hull forms, materials to lower the
lightweight of the vessel, innovative cargo loading equipment and port interface processes.
This Concept promises to be very competitive to the ever growing road transport in coastal
areas.

The broad usage of this standard CARGO-VESSEL (Truck of the Sea) is planned between the
Years 2015 and 2030. This period will implement stricter environmental regulations, forcing
the use of less and partly sustainable energy in order to reduce greenhouse gas emissions as
well as to follow the Clean-Ship-Concept avoiding ocean contamination 4.

The objectives of the DOW were amplified by focusing on the replacement of the outdated
current vessel fleet and not just competition to road-transport. Replacing outdated
technologies generally saves on fuel and reduces emissions.

In the Description of Work (DOW) the proposal EU - CARGOXPRESS set-out to deliver an

innovative Concept of a new generation of intermodal and competitive CARGO-VESSEL -
defined to such a detail, that a group of engineers and operators can build a full scale
CARGO-VESSEL serving as an experimental prototype without further investigation or
studies.

Competitive and sustainable concept means cutting down on transport cost per cargo unit
(TEU), on emissions in coastal Towns and to outbid the competing road transport.
Furthermore to reduce excessive lead time between supplier and customer and shortening the
time consuming port - road interfaces.

The EU-Commission has specific goals about maritime transport; on these we have based our
design and desirable performance.

By 2050 reduce EU CO2 emissions from maritime bunker fuels by 40% (if feasible 50%)

30% of road freight over 300 km should shift to other modes such as rail or waterborne
transport by 2030, and more than 50% by 2050, facilitated by efficient and green freight
corridors.

This ambitious goal would need around 2,000 - 3,000 new vessels. The current fuel
consumption of 5 MW vessels is around 6.000 tons per year, depending on the ratio
travelling/port-time. For 3,000 needed vessels, this would account for 18 Mt per year.

EU-CARGOXPRESS will include sustainable energy and will reduce fuel consumption for
some transport scenarios >25 % compared with conventional solutions.

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Around 4,5 Mt of fuel per year using a competitive innovative technology compared to
traditional vessels.

Around 4,0 Mt of truck-fuel per year of shortening road transport due to accessing small
ports.

Around 1,8 Mt of truck-fuel per year for generally replacing part of road transport by
maritime transport.

Total fuel savings goal is 10,3 Mt/year which accounts for 0,63 % of total EU25 energy
consumption per year.

(EUROSTAT 1637MT/2005 for EU25). These numbers do not include other fuel savings by
less highway construction etc.

The objective was to develop a vessel-concept prepared for the time between 2015 and 2030,
the expected increase in fuel-prices and planned environmental restrictions ready for a
standardised serial production.

Objectives extracted from the White Paper on Transport 2011:

 Make transport more sustainable

 Cut down oil dependency. Challenge is to break transport system dependence on oil
without compromising mobility.
 By 2030 the goal from transport is to reduce GHG emissions to around 20% their
2008 level.
 New technologies for vehicles will be key to lower transport emissions.
 Establish a system that supports European economic progress, and enhance
competitiveness.

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Project Results:

2.Main S&T Results / Foreground

Introduction

After 32 months of R+D work, the Engineers, scientists and economist of EU-
CARGOXPRESS are proud to present various innovative breakthroughs for the maritime
transport industry.

The concept of a new container and general cargo vessel is the sum of various innovations
and can be manifested in one serial vessel all at once or implemented in parts into the broad
maritime design of new cargo vessels.

The following headers separate the innovative concepts:

 General arrangement of the Catamaran Cargo-Vessel

 High stability without ballast water
 Electric drive system with tanks and machinery in modular containers
 Sustainable propulsion support by a large Sail-Wing and Solar Panels
 On-board Ship-to-Shore Crane to handle container and XXL cargo alike
 Fast turn-over in small coastal and fluvial port-towns reduce road-transport
 Advancing the Clean Ship-Concept
 Lightweight hybrid hull design and serial construction

2.1 General arrangement plan of the Catamaran Cargo-Vessel

The Situation

The design of maritime vessels for passenger transport and the cruising industry has
undergone a technological quantum leap in the last decade. This change resulted from
different hull forms, efficient propulsion systems, use of different lightweight materials and
modern surface design.

The same can be observed in the development in the offshore and service ship industry. The
new designs and technologies are vastly advanced compared to the time before 1990.

In contrast, the building of cargo and feeder vessels suitable for the Motorways of the Sea
(MoS) has undergone only a weak technological development in the last decades. Besides
some minor improvements, the naval industry mainly copied existing designs.

The reasons can be found in the general risk-adverse maritime construction, tight regulatory
framework and a University culture, where naval design means stability of the vessel and
regulations. Economic performance and modern serial production issues receive less
attention.

The Challenge

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Develop a new class of small and medium Container and general Cargo Vessels in multihull
configuration with large cargo-bay and on-board Ship-to-Shore crane able to serve small
ports.

The General Solution

The consortium developed a 200 TEU catamaran type CARGO-VESSEL able to access small
coastal and fluvial ports. This allows distributing the containers from the large international
Terminals into the fine fibre of the coastal network. Goal is to reduce considerably the current
road-transport with heavy trucks or trailers, which jams the mostly poor traffic infrastructure
of those regions.

The innovative CARGO-VESSEL is equipped with a Superstructure carrying a cantilevering

crane and bridge. The crane is integrated into a 1200 m2 Sail-Wing, which can be lifted by
hydraulic means to act as a sail in conditions up to 30 knots of wind. Superstructure, bridge
and Sail - Wing are mounted onto a table which moves along the vessel's centreline. The
Superstructure turns 360 degrees in the z - axis, allows the crane to cover the whole vessel
and perimeters and adjust the Sail - Wing to optimum wind - angles.

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Important R&D achievements

A: Innovative hull configuration and tank testing

Multihull vessels present a special challenge for the design of the hulls. The stability of the
vessel increases considerably and in this case ballast water is not needed. Disadvantages are
increased wetted surface, higher construction cost and Gross-Tonnage (Port and Channel
fees).

The Consortium did build three scale models to test the towing tank resistance in different
speeds, hull-forms, with self-propulsion and different heel-angles to simulate the conditions
while sailing with side-wind.

More models have been build and tested in NTUA-Athens, where the main simulations have
been performed.

Resistance values were very good and gave input data for dimensioning the energy and
propulsion concept.

Sea-keeping test results over 13kn speed were not good, a typical result for short vessels. As
the vessel is planned for max 4m waves and max 30kn of wind, in bad sea-state, speed has to
slow down to 10kn.

B: general Arrangement Plan of a catamaran container vessel

SDC, the partner for Naval Architecture Calculations develloped the general arrangement
plan and stability and longitudinal stress calculations for the new vessel.

Trim, heel and inpact stability were investigated considering the HSC Rules. The
requierements of the HSC Code were fullfilled and the functionality assured.

In various special meetings with DNV the general design questions were discussed and
optimized. During 2 Hazid workshops the possible risks for the new functions, like the
movable Superstructure and the large Sail-wing and actions to eliminate those risks were
investigated.

The original goal to produce a vessel with under 4m draught has not been reached fully due to
large propeller diameter and low resistance hull configuration (low fuel consumption).

Investigating 560 possible small ports, the consortium found generally sufficient channel
depth to accommodate this vessel.

2.2 High stability without ballast water

The Situation

Current mono-hull feeder or general cargo-vessels have an underwater-body in V or U-Form

and need ballast tanks and ballast water to stabilize the vessel, even with full payload.

Larger Ro-Ro vessels with high decks are having an active ballast water-system pumping
ballast to stabilize when in high sea.

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This ballast system needs special surface protection, pumps, sensors and filters and periodical
inspection and maintenance. Considerable expenses amount over the lifetime of the vessel.

Besides these costs the added draught due to the weight increases the hydrodynamic
resistance.

One tone of extra weight adds up to 15-18.000 fuel-costs over lifetime considering current
fuel prices.

Additional constrains are the new rules on bio-contamination requiring expensive ballast-
water treatment procedures.

The Challenge

Assure sufficient stability for the new Cargo-Vessel while loading and in “sailing conditions”
with strong side wind.

Important R+D achievements

The new concept spaces the Demy-Hulls 14m apart for the 84m vessels, which gave enough
stability in the occurring load-moments for trim and heel.

Trim loading: All cargo-vessels over 80 m length have a load-distribution calculator on board,
which assures the perfect desired trim.

Trim sailing: With the sail-wing up and especially during aft-wind, a momentum of around
2400tm tends to produce a negative bow-trim. This will be corrected by moving the whole
Superstructure with the sail-wing some meters towards stern.

Trim general: This innovative concept allows trim-corrections during the voyage by replacing
cargo in longitudinal direction with the on-board crane and/or moving the superstructure
along centreline.

Heel loading: Cantilevering the crane over the quay and loading a 32t container plus 10t
spreader plus the weight of the crane-plume generates a heel of 2-3 degrees, well under the
max 5 degrees recommended.

Heel sailing: With the sail-wing up and specially during 30 kn side-wind, a heel of maxim 8-
10 degrees was calculated, well under the common heel of the former large clippers up to 30
degrees.

Towing-tank tests measured the resistance during 8 degrees of heel and showed an increase of
10%, but the wind-energy is free of charge, so the losses do not matter.

The simulations and following tank-test assured the viability of the No-Ballast-Water Concept
and it was interesting to observe other development-teams starting to design similar solutions.

This conceptual change of vessel-stability needs intense training of the naval design sector.

Source ILCX.

The main advantages are less fuel consumption and CO2 emissions and savings on
inspection, maintenance and front-up investment in ballast-water systems.

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CARGOXPRESS fulfils the Clean Ship Requirements.(North Sea Foundations Utrecht and
T&E Brussels)

2.3 Electric drive system with tanks and machinery in modular containers

The Situation

Current Mono-Hull vessels have the main machine and fuel tanks located deep down and aft
in the hull. This allows for short direct connection via shaft to the propeller and adds ballast
weight to the deepest possible location.

Furthermore, the machine rooms are not fit for cargo storing, because they are located
beneath the superstructure and not accessible by loading gear.

This design-principle requires the investment in a fully equipped machine room fit for longer
human presence mostly in a multiple level arrangement in a narrow and dangerous working
environment.

The basic consequence beside the cumbersome installation and time needed for completion in
the yard is the rigid and change adverse system. Technology and energy-supply are changing
fast and after 5-8 years after choosing the system to design and build, the vessel will start
running with sub-optimal equipment or energy-form. (2 years lost already before sailing due
to long design and building period.)

This requires after 12-15 years a major overhaul of machinery and tanks - opening the steel-
decks, removing the superstructure etc. The cost for this dry-dock work and the loss of
income is considerable.

Current systems need highly skilled repair and maintenance crew and engineers or technical
officers on board, difficult to find and train in the future due to the rising shortage of sea-
farers.

The direct shaft drive has shown to be a very simple and reliable energy conversion system
with 4-6% better efficiency as azimuth or electric drives. They are very efficient for long
voyages with steady load conditions, but less efficient reacting to load-changes during voyage
and they cannot combine with sustainable energies. For the goal of flexible small port
operations, they will need always a back up with smaller auxiliary machines.

The Challenge

A: Develop a flexible energy and energy conversion system, which can include sustainable
energy and adapt easily to load-changes.

B: Develop a system easy to install, maintain and change, which allows the operator to adapt
to changes in technology and energy availability.

Important R&D achievements

A: Electric drive system with input of around 50% of sustainable energy

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A range of possible energy converters and means of energy storage has been investigated and
a hybrid solution including LNG Gensets, Solar Panels, Sail-Wing, electric Shore Connection,
Battery packs and Azimuth thrusters was recommended. Permanent magnet generators
(PMG) and motors (PMM) enabling a direct electric propulsion line without frequency
converter will be used to reduce electric losses.

The main reasons for the recommended systems are:

 The combination of variable energy-input from sustainable resources (wind and sun)
and uses of conventional energies demands a highly flexible system, reacting rapidly
to the different load conditions.
 The buffering of energy in large battery-sets (>1MWh) recharged by surplus energy
and on board produced as well as onshore produced green energy.
 The conversion of conventional energy (LNG) by 2 Gensets with permanent magnet
generators.
 The flexible energy and conversion system for different operators in different climate
and load conditions (custom-built).

The proposed system has a 4-6% lower direct transmission efficiency machine to propeller as
direct drives, but the overall efficiency is vastly superior taking into account the sustainable
input (next chapter).

AC______ DC______ LNG______

B: Modular containerized energy storage and conversion

Due to the high stability of the Catamaran solution and the electric connection machine-
propeller, the concept allows for placing the energy storage (tanks and batteries) as well as the
energy-conversion (Gensets) on a higher, easy accessible level.

Furthermore the desire to get interchangeable units and reduce considerably the construction
time in the shipyards, guided the engineers to develop a set of modular containers with the
respective equipment ready to use inside. These containers can be lifted to their location on
board and connected (plug-and-play). In case of maintenance or repair, the container will be
interchanged in port with a second unit.

The modules come pre-assembled and tested from the supplier, no lead-time in yard.

Modules are easily interchanged, when the energy market or changes in machine technology
are promising a better overall efficiency.

No need for specialized crew on board, because all maintenance and repair is done separated
from daily operations on-shore.

This is a novel approach to resolve multiple problems at once and will require more detailed
investigation, especially on secure mounting and vibration problems and interchange of full
LNG tanks instead of refuelling by hose connection.

Electric drives are adaptable to modular equipment installations, meanwhile direct mechanical
drive between LNG engines and propellers would require deep in the hull the traditional
machine room.

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2.4 Sustainable propulsion support by a large Sail-Wing and Solar Panels

The Situation

In the summary description of project context and objectives the sub-chapters C and D
showed:

A: The expected faltering fuel supply due to overexploitation of reserves and exploding
demands of the newcomers India and China for their huge populace and demand on mobility
and progress.

B: The restrictive environmental regulation due to the excessive emissions of CO2, NOX and
SOX by current energy converting technologies.

Currently the international publications show many ideas how to power a vessel with the
energy of wind and sun. Many of these articles have little scientific background, the expected
output from to be installed sails or solar panels do not seem to bring a savings potential over
5%.

The EU-CARGOXPRESS did set out from the beginning to install a system, simulate and test
the obtainable results and investigate the consequences of such installations on-board.

The Challenge

Develop, quantify and test the usage of sustainable energy on-board and study the total
systems requirements resulting from this equipment.

Important R&D achievements

A: Proposal of an innovative, easy to handle sail-wing for harvesting wind-power

Already the visionary proposal for the Grant-Application mentioned the use of a large sail
with the on-board crane combined.

During the project this sail-wing was enlarged and exposed to multiple simulations in the
ETSIN-Madrid. For this endeavor it was necessary to study the average wind-conditions in 6
operations-areas from the African West-Coast to the Baltic Sea and plot the results against
anticipated shipping routes occurrences.

Different profiles of the sail-wing were developed and checked for performance.

Combining both calculations produced a list of average achievable thrust in kN, which gave
the sustainable wind-power in kW and the percentage of occurrence.

The important fact is, that this sail produces in 50% of the voyages 700kW - pure propulsion
power - without losses by energy conversion in the piston machine, in the drive train or
propeller.

700kW coincide with the measured towing-tank resistance for a 75% payload run at 12 knots.

The simulated results were compared in a wind-tunnel test and basically confirmed.

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The next step was the design of an easy to handle sail-wing, hinged in the superstructure and
lifted by means of telescopic hydraulic cylinders.

This opportunity to install a 700kW wind-harvesting machine needs detailed further

investigation during the building of the first vessel.

In the project the momentum and forces applied to the platform and gliding table were
calculated and structural evaluations performed. The structural parts have been submitted to
FEM-analysis and confirmed in weight and strength.

Nevertheless in the following detail planning especially the sail-wing must be recalculated:

 Allowable deflection in wind-gushes and while cantilevering with maximal load

 Minimizing weight, to reduce the whole Super-Structure weight for reasons of
stability and mass during moving and turning.
 Minimizing construction and maintenance costs
 Maintenance procedures of gliding elements between platform-ring and Table /
Table-Top Rail.
 Behavior in extreme cross-sea and wind-conditions.

The future development of this 700 kW machine will require top-engineering effort and
special attention from Class, because this is a total new area for traditional shipbuilding.

Ample tank testing with waves and wind should be performed to evaluate the limits of
security and economic use.

The innovative sail-wing provides at once the following functions:

 Wind-propulsion
 Carrier of 1200m2 Solar-Panels for energy harvesting as an option in southern
operations areas.
 Hatch-cover for the cargo-bay
 Crane-plume for STS-Crane
 Lid on cargo-bay in extreme weather conditions to improve overall resistance.

B: Proposal of covering the sail-wing with solar panels

The possibilities of on board production of green electric energy from sun are limited
depending on the operation area. Therefore, supply of electric energy from onshore green
sources is included. Such on board and onshore green energy will be used for charging the
batteries.

It will be desirable to have an extra battery-set of around 500kWh located in the

Superstructure to avoid losses of energy-transmission through the platform-table set-up.

The large on-board energy storage in battery-sets allows to access small ports without
emissions.

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The current efficiency of solar panels is around 160W/m2. With increasing efficiency the
operators can chose to outfit the vessel with those panels and add a small Genset for back-up
to the on board-battery.

By going to slow steaming, 7-8kn, many hours during daylight can be done by solar plus
battery-power only, an interesting alternative for southern regions.

2.5 On-board Ship-to-Shore Crane to handle Container and XXL Cargo alike

The Situation

All mayor and middle-sized Container Terminals are equipped with these gantry cranes, in
large terminals hundreds of them. They are exclusively handling standard ISO Containers
from quay to the vessel and reverse.

For large Container vessels various cranes are working in parallel.

Their main advantages:

 Transfer time ship to shore on average around 1,5 min.

 Huge throughput per day due to precise container positioning
 No turning of containers due to parallel handling pattern
 Safe and reliable process.

Their main disadvantages:

 Investment cost up to 7M per STS crane

 Costs of moving one container around 50-200 depending on the port or Terminal
 Port based trained personnel needed
 Unable to lift XXL-Cargo due to their limited with.

For EU-CARGOXPRESS these cranes define how containers are placed parallel to the vessel
length, because part of future cargo for the new vessel will come as feeder service to and from
these ports and will possibly be loaded into the vessel by these gantry-cranes.

On smaller ports quay-based mobile cranes are working in jib-mode turning and reaching into
the vessel and some current feeder vessel are equipped with 2 on-board jib-cranes. All jib-
cranes are much slower and less efficient to work with, than gantry-cranes due to the turning
of the crane plume and the cumbersome repositioning of the container.

The difference averages 11 movements per hour and converts (using single cranes) to:

 Additional port time of 4,2 hrs. with 100 movements (around 170 TEU, depending on
the mix 40/20-foot container)
 Additional port fees, depending on the port
 Additional shore-manpower and energy

These numbers multiplied over the lifetime of the vessel diminishes the operator's benefits.

But in time of rising fuel-prices, the operator loses additionally the flexibility for lower
vessel-speed to the next port and thus saving on fuel. Depending on the vessel-hull form, size

15
and payload, reducing the speed from 13 to 11 knots, (3,7 km/h less) the hydrostatic
resistance (Pe) is 47% lower, which reduces fuel and CO2 emission accordingly.

For the objective of the EU-Project small ports need to be developed for direct cargo-flow
into the port-town. They need ways to handle container and general cargo from ship to shore
and back.

Because of relatively low cargo-demand, those ports cannot afford to install STS cranes and
have permanent crew for managing these operations and to order mobile cranes is to costly
and time consuming.

The Challenge

To develop an on-board STS-Crane as efficient as a shore-based STS-Crane with loading

capabilities for containers and XXL Cargo alike.

Important R&D achievements

A: Proposal of an on-board Ship-to Shore crane-loading container in gantry mode

The crane moves over the whole length of the cargo-bay, not being disturbed by a traditional
Superstructure. This permits to serve and retrieve cargo even in very confined small coastal or
fluvial ports, working over Bow, Stern or sides.

A novel three-point attachment crane allows handling very large and cumbersome project
cargo without support from shore-based crew.

Especially interesting to transport of-shore equipment like piping and profiles or prefabricated
houses for emergency operations.

The combination of the four functions of the Sail-Wing-Solar-Hatch Cover-Crane unit saves
on weight and building costs, but poses at the same time a bigger engineering challenge to
satisfy the needs of each function. In the detail-phase of the preparation of the first vessel,
special attention will be placed on this development

The crane rails serve at the same time to support the thrust-power of up to 80t from the sail
and form the structural backbone of the whole construction.

In current feeder vessels the investment of on-board jib-cranes is around 10% of the total. For
CARGOXPRESS the first investment calculation went up to 21% of the total. These added
costs will have a payback-time of less than 3 years due to the savings on fuel and port-time.

2.6 Fast turn-over in small coastal and fluvial port-towns reduce road-transport

The situation

Currently a few big and medium container terminals receive the containers and deliver the
last leg of the voyage to the final customer by truck (10 to 500km of distance) or for larger
distances by train.

16
This leads to partial saturation and jamming of road-transport due to increasing Inter-EU-
Cargo-Transfer and insufficient funds for better road-infrastructure.

Maritime transport can only alleviate road-traffic within a distance of 200km along the coastal
or navigable fluvial line, but this area has special needs, because the coastal road-
infrastructure is deficient and should serve other purposes, like tourism and neighborhood
development.

Currently all small and most medium sized port-towns, if not on an island, receive and deliver
their cargo (container or general cargo) by road-transport.

Backed by strong support from the Commission all efforts undertaken had to be seen in this
context.

The Challenge

Develop maritime cargo delivery into the heart of the small port-town to reduce substantially
coastal road-transport.

Important R&D achievements

A: Defining the possible volume of additional maritime transport

The project studied over 1200 ports in Europe and Africa and screened them for their ability
to be connected by maritime transport. The results were 560 port/towns without any maritime
cargo-transport, but apt for small vessel with proper loading gear to serve these towns and the
hinterland:

 Mostly ports with few fishing vessels or leisure vessels

 No cargo-loading infrastructure
 Surrounding port town with an average of 65000 inhabitants
 Additional hinterland from 0-100.000 inhabitants
 An average traffic of 50-150 TEU per day, depending on the town and industry

This is a market of 36 million to 64 million of humans with all their buildings, industries,
agriculture and recycling needs. For the R+D dimensioning process a goal 50 TEU/day and
port was extracted, 25 imports, 25 exports (could be partially waste for recycling).

Subsystems in normal Container Terminals with all used equipment and processes and their
impact on total costs and lead-time are:

 Ship-quay Loading/Unloading Subsystem

 Internal Handling and stacking Subsystem Yard
 Land Reception-Delivery Subsystem

For all three systems the project proposed procedures apt for this new maritime transport
market.

B: Proposal of a novel Ship-Quay Loading/Unloading Subsystem

17
Using the results from Task point 5.6, the processes at the Ship-quay Loading/Unloading
Subsystem was studied and developed. It showed clearly the advantage of an on-board STS-
Crane. Unlike a jib-crane, it can unload parallel to the whole vessel length and thus reduce
considerably the port time without waiting for port support.

Placing and storing containers or trucks parallel to the cargo-vessel allows for uncoupling the
vessel-operation from the yard-system.

The vessels can load/unload at night up to 60 TEU, without clearing the quay area. This
lowers costs and reduces port-stay of the vessel.

Direct loading of trucks from the vessel speeds-up the cargo-delivery and eases port
operation.

C: Internal Handling and stacking Subsystem Yard

Large and medium container terminals require immense storage places for unloading a
10.000TEU vessel. The storage time reaches easily 6 days and a special organization is
needed to locate the containers. As small ports do not receive large quantities at once, the
internal handling can be planned much easier.

Most of the containers should be loaded directly onto trucks or stationed in front of a Port-
Distribution-Centre, PDC, where they will be emptied and the cargo regrouped for the last leg
of transport into town, see next point. The whole process should be organized for fast
throughput without delay to eliminate the disadvantage of maritime transport the long port-
delay.

It would be good to have in the port a waiting place for empty containers.

The only equipment needed will be a standard reach-stacker to transport containers from the
place besides the vessel to load trucks or to place in front of the PDC.

The selection of feasible small ports used a restriction of a minimum space of 2000m2 for
these activities.

D: Land Reception-Delivery Subsystem

The location of Port-Distribution Centres (PDC) and partly warehouses right in the port area
within the reach of the yard equipment would be the perfect logistic solution. The reach-
stacker could transport the container within the distance of 100m to the PDC, where the cargo
will be taken from the container and commissioned for storage or immediate delivery by
small truck into the town or to out-of-town facilities.

The problem in most small ports is the reduced available space:

 Expensive space in prime locations.

 Obsolete warehouses or utility buildings occupy space on or near the quay.
 Missing urban concept for a logistic port.

These problems could be overcome seeing the advantage of revitalizing the port and with
subsidies to reduce road-transport towards the town.

18
There will be two main possible material flows towards the final customer, full containers on
large trucks or split-cargo on small town-delivery vehicles.

Small ports will have to install a closed area for security and safety reasons. A gate with
supervision will check on truck entrance and exit. Before the gate a waiting area will allow
for some 10-20 containers trucks to park.

The reach-stacker loads the container from the place besides the vessel directly onto the truck.
This can happen while the vessel unloads or afterwards.

With a strong agro- or industrial structure of the port or hinterland, more full-container will
leave or enter the port using the quick-delivery system.

Ports with mainly touristic or leisure population will receive more split-cargo deliveries.

A simple PDC-Building of 500 m2 can be used to regroup the cargo from the container and
load into the smaller town-trucks.

The reach-stacker carries the full container towards the ramp of the PDC, where the container
will be emptied.

The PDC collects cargo from the town or hinterland for delivery to other destinies.

Besides the normal flow of commercial items or cargo the ever increasing volume of
recycling material can pass through this port and be delivered via maritime transport towards
a coastal or floating recycling centre. This volume of recycling transport by road could be
reduced efficiently.

Furthermore the final leg towards the customers ramp was investigated and the need of a new
and intelligent Swap-Body like container postulated.

The conclusion of all the above-mentioned potential improvements showed the need to study
more deeply processes or equipment in port-customer interchange not covered by this EU-
Project. A list of needed follow-up projects was elaborated and will be discussed in the final
meeting and later presented to the EU-Commission for inclusion in future calls.

2.7 Advancing the Clean Ship-Concept

The Situation

The naval industry, design, construction and operation are exposed to imminent restrictive
environmental regulation due to the excessive emissions of CO2, NOX and SOX by current
energy converting technologies. The most challenging regulations affect the SOx and NOx
emissions, which have to be reduced in the ECA regions already by 2015 and globally by
2020. If the non-compliance will be charged with additional costs, the whole cargo-fleet has
to be refurbished by changing to LNG or replaced, a task impossible to fulfill within the
following years.

The CO2 reduction, a strong EU-Goal, requires simply the partial or total replacement of
fossil fuels by sustainable energies. During the project execution this context gained further
importance as shown in the changing objectives of the 8th Framework-Programme.

19
More and more ports require the vessels to switch to cleaner fuel and avoid noise
contamination.

Oil-spills and bio-contamination by ballast-water and tank cleaning in high sea are more
strictly monitored and controlled.

The Challenge

The concept of an innovative container vessel EU-CARGOXPRESS - must implement all of

current required and planed environmental performances towards a Clean Ship.

Important R&D achievements

A: General reduction of fuel consumption in the new vessel concept

The project followed three mayor lines to reduce fuel consumption and with this goal the
equivalent reduction of emissions:

 Reduction of lightweight and ballast of the vessel

 Employment of partial sustainable energy,
 Allowing to go “slow steaming” by reducing port-time.

Total daily consume is calculated by assuming two of these 12hrs cycles.

Batteries are charged in port preferable with green electricity and during voyage by excess
Genset energy. No solar input considered.

During wind harvesting the Gensets are stopped and approximately 50-100 kW are fed from
the battery to the propellers to assure proper steering.

This operation model of fast port interchange and slow steaming shows promising results. For
the final customer the delivery time stays the same, but costs go down strongly.

In different operation areas, with different customers and delivery needs, the operator can
choose to vary voyage speed depending on wind and current. In this manner the operator can
optimize the vessel's performance and reduce considerably fuel consumption and CO2
emissions.

B: Using of stored green energy for port operations/accessing and smoothing of load peeks
by the hybrid concept

The goal of EU-CARGOXPRESS is to serve small and medium coastal and fluvial port-
towns. Many of them are located within areas of Natural Protection or dense population. The
requirements of protecting these areas from noise, air pollution and wake effects are rising
constantly.

CARGOXPRESS is prepared to travel in these areas and the manoeuvring process accessing
the berth with reduced speed by on-board battery power. The loading/unloading procedures
and other port activities are either executed by shore power connection or if not installed by
the on-board battery.

The electric drive fuelled by different energy sources (LNG, Wind, Sun, and Battery) allows
for very flexible reaction on load requirements. Gensets like all diesel machines run at best

20
efficiency around 75% of peak power. All current vessel concepts loose efficiency, when the
main engines have to slow down, they are starting to run suboptimal.

The hybrid concept of CARGOXPRESS allows for a perfect synchronization of the energy
output with the load requirements.

This concept requires a more intelligent machine control system than used in current vessels,
but promises huge savings on fuel and CO2.

C: Changing to LNG Fuel

CARGOXPRESS will be in line with the latest modernization of many vessels towards LNG
fuel.

The advantages are widely known and need no further explanation.

The shown LNG consumption includes the benefit of wind harvesting and slow steaming due
to fast port turn over.

CO2 reduction per year will be around 3270 tons, NOx reduction 66 tons per year and SOx
will be eliminated altogether.

D: Less surface maintenance through modern materials

As to be explained in 3.8, the new vessels hull will be made from composite material and in
industrial controlled production process.

Surface smoothness would be an optimum, reducing hydrodynamic resistance and the need of
constant repairing and re-painting.

The process of cleaning oxidised steel surfaces is a major contaminant of ocean water, which
should be eliminated altogether.

E: Less cargo loss in high sea due to protected cargo bay

Current vessels, coming into bad weather or heavy sea states, are sometimes loosing on-deck
cargo. Floating containers or other large objects pose tremendous safety risk for maritime
transport, and are increasing the insurance rates.

Closed systems like CARGOXPRESS will keep the cargo safer and avoid contamination of
the ocean and the shoreline.

2.8 Lightweight hybrid hull design and Serial construction

The Situation

Cargo-Vessels are built in European and other global shipyards mostly as one-of-a-kind
projects or in very small series, if any. The predominant hull material is steel; cut and 2D
bend or rolled. 3D forms are not economically feasible with the used sheet-material thickness
and production numbers.

Building from multiple pre-cut and pre-formed sections requires heavy logistic preparation
producing extra lead-time and manpower.

21
The results are hull forms, with suboptimal hydrostatic performances and heavy constructions
due to welding and structures supporting. The shipyards suffer from lack of know-how
accumulation, low productivity and high cost for retrofitting.

Only some European shipyards are successful in very special orders or maintenance activities.

The project established already in the beginning the orientation value of 1 ton of additional
weight = 15-18.000 over lifetime with current fuel prices.

Aluminum is somewhat lighter in the final weight, but required too lots of manual labor,
difficult welding processes, grinding and retrofitting.

3D Bulb-Noses or heavily formed stern lines are very cumbersome to produce from many
small cuts and pieces.

As the shipyards do generally build the whole vessel at their site, parallel work is very
reduced and overall lead-times are long, 1,5-2,5 years. It is very common, that 95% of the
vessels costs are already spent, but cannot be converted into operational income for the ship-
owner, because some minor retrofitting within the machine-room takes months to complete.

The Challenges

Develop a hull construction technology with lower lightweight and better hydrodynamic
performance.

Develop a concept of serial production to specialize the yards and cut down of construction
lead-time, thus making the vessel less capital intensive and improve competition to road-
transport.

Important R&D achievements

A: Designing, building and testing a Aluminium-Composite hybrid construction

The consortium investigated multiple combinations of material for the outer shell and
supporting structures based on the experience of the participating shipyards Kockums and
Fjellstrand-AS. These variants were calculated on weight and production costs and it was
decided to build a hybrid form of a composite shell and aluminium structures.

Different structures from extruded Aluminium and sheet-material were evaluated. Ample
work was invested in the problem of connecting shell and structure by gluing and mechanical
fixing.

A series of tests with glue-only and glue-mechanic connections in medium sized

demonstrators were executed and presented.

A Hazid workshop with Det Norske Veritas (DNV) on these questions revealed, that no
standards existed and DNV recommended going to the secure way by using a glue-
mechanical fix connection.

It showed in a real scale the effects of the hybrid- construction and informs about production
time, costs and needed technologies. This demonstrator will be used for dissemination
activities and for future follow-up projects.

22
A final place of exposing this great piece of modern technology will be discussed with the
project-officer.

B: Proposals and plans to build future serial vessels copying the Airbus-Concept

The project EU-CARGOXPRESS is clearly dedicated to develop a future serial vessel. After
markets study (see next chapter), an average of 50-80 vessels are planned to be constructed
yearly during the period of 2015-3030.

This would need a reorganization of European shipyards towards copying the Airbus-
Concept. It should be the end of one-yard-one-ship system and the beginning of specialized
yards or auxiliary companies dedicated to one of the main groups or elements:

 Demy-Hull Bow and Stern

 Middle-Hull sections
 Cargo-bay with top-rails
 Table, platform
 Sail-wing
 Energy-Modules
 Bow-Bridge Modules including navigation.
 Safety-gear

These groups will be shipped by maritime transport to final assembly yards, which will
connect pre-checked units to the whole vessel and bring them to water including testing.

Serial production of composite hulls and units requires expensive large molds and tooling,
expenses only possible in few sites.

The benefit would be a more technology-oriented production, much less welding and
improvement in know-how and quality.

Advantages of the new system:

 Optimal 3D Hull forms possible, perfect Hydrodynamic efficiency

 Serial production in large molds
 Perfect finish without excessive man Power needed
 High quality surface with low maintenance

The demy-hulls will be cut into manageable units, around 12m long. Although large
composite hulls up to 60m have been built, it does not comply with the requirement of serial
production. To obtain standardized sheets of composite shells, maximum dimensions of some
12 by 10 m are already barely manageable. The requirement of numerical cutting machines
over those dimensions would inflate the tooling investment unnecessary.

All sheets should be molded in vacuum-injection without any low-quality manual addition of
frames or rips. Easy training of the operation and maintenance crew can be obtained with
serial repetition, a good opportunity for jobs for low qualified labor.

The Consortium is aware of the drastic change required in the naval construction industry and
will dedicate much attention to training and dissemination of the new and beneficial
approach.

23
Serial construction means to recover the competitiveness of the European naval industry.

The processes and technology exist in Europe, but only by thinking in replacing the outdated
current vessel technology the necessary capital for Investing in tooling, molds, CNC
equipment, quality control and investing in production R&D can be allocated.

24
Potential Impact:

3. The potential impact and the main dissemination activities and exploitation of results

3.1 The general strategic impact

EU-CARGOXPRESS developed a groundbreaking innovative concept of a future

standardized and serial Cargo-Vessel. It aims at more green transport and decongesting
European roads. The project fulfilled the goals of the 7FP SST.2008.5.2.1 Innovative Product
Concepts in the AREA: 7.2.5.2 Competitive surface transport and services.

To quantify the expected impact, the expected volume of vessels to be built in the planning
horizon had been set. Different from the DOW, where the main objective was replacement of
road-transport through new vessels, the general replacement of the outdated cargo-vessel fleet
was additionally studied and added to the expected impact.

3.1.1 Expected Volume of new vessels

The description of the impact has to be distinguished between replacement of current vessels,
which serve already to replace road-transport but contaminate more than EU-
CARGOXPRESS (IMPACT A). From new vessels to serve small ports, so far not accessed
plus new vessels to fulfill the plans of the EU to move cargo to maritime transport (IMPACT
B).

Both numbers together show the potential to revolutionize the Short Sea Shipping in the
Motorways of the Sea sector. Already during the project some partners have taken partial
results into their daily design and planning projects to produce a new generation of Cargo-
Vessels. There was a rise of general awareness of the less polluting and less maintenance
technology produced by the project.

3.1.2 New logistic philosophy for Short Sea Shipping (MICRO FEEDER)

Currently a few big and medium container terminals receive the containers and deliver the
last leg of the voyage to the final customer by truck (10 to 500km of distance) or for larger
distances by train.

This leads to partial saturation and jamming of road-transport due to increasing Inter-EU-
Cargo-Transfer and insufficient funds for better road-infrastructure.

Maritime transport can only alleviate road-traffic within a distance of 200km along the coastal
or navigable fluvial line, but this area has special needs, because the coastal road-
infrastructure is deficient and should serve other purposes, like tourism and neighborhood
development.

Currently all small and most medium sized port-towns, if not on an island, receive and deliver
their cargo (container or general cargo) by road-transport.

Following the concept of the Low-Cost Airline Ryanair serving many small airports, the
project developed maritime cargo delivery into the heart of the small port-town to reduce
substantially coastal road-transport.

25
This will create a total new market (Niche Market) for Short-Sea-Shipping (Micro feeder
Market).

The project studied over 1200 ports in Europe and Africa and screened them for their ability
to be connected by maritime transport. The results are a list 560 port/towns without any
maritime cargo-transport, but apt for small vessel with proper loading gear to serve these
towns and the hinterland.

In the Baltic Sea alone, 63% of all ports do not receive currently container by sea, but by
road. This road-transport damages considerably the coastal infrastructure. The same is true to
the Norwegian coasts and African coasts, where road-transport is very difficult due to lack of
infrastructure.

This is a market of 36 million to 64 million of humans with all their buildings, industries,
agriculture and recycling needs. For the R+D dimensioning process a goal 50 TEU/day and
port was extracted, 25 imports, 25 exports (could be partially waste for recycling).

The vessel technology concept had been custom tailored to serve these ports besides the
normal maritime and fluvial ports.

Once the concept enters mainstream design and shipbuilding through the exhaustive
dissemination and building of a first demonstrator, Europe will reap benefits from several
advantages:

 Transportation will become cheaper and cleaner, enhancing the living conditions of
the coastal and fluvial population.
 Europe will become leader in new high-tech shipping technology prepared for the
upcoming low-fuel, low CO2 society.
 The Shipyards will be prepared to produce serial equipment and gain special know-
how in environmentally friendly products.

The expected impact will be clearly demonstrated with the first vessel serving port-towns,
which never got maritime cargo.

3.1.3 Impact as innovative boost on ship-design, production and operation

SST.2008.5.2.1 Innovative product concepts called for Innovative surface transport products
and system concepts to strengthen the competitiveness of European industry meeting
customer requirements, changing markets and environmental challenges.

EU-CARGOXPRESS is presenting to the maritime industry an innovative concept of a whole

cargo-vessel or essential parts of it, which offers to revitalize the European shipbuilding
industry and opens a brand new market serving hundreds of small coastal and fluvial ports.

The Consortium presents a new class of sustainable and competitive feeder vessel with less
than 50% of comparable vessels fuel consumption and emissions.

Customer expectations are fully met by having a main operator -ACCIONA-

transmediterranea - as coordinator leading the efforts.

The project laid the basis for a new design paradigm for the European shipbuilding and
operating industry improving its global position and regaining competitiveness. Some

26
solutions, like the modular Energy-Containers and the hybrid hull technology will
undoubtedly create new spin-offs for naval construction.

In many meetings with design offices, shipyards, operators, maritime clusters and conferences
the novel approach was discussed and generally openly accepted.

EU-CARGOXPRESS developed eight promising and challenging technological

breakthroughs:

 General arrangement in form of a Catamaran Cargo-Vessel

 High stability without ballast water
 Electric drive system with tanks and machinery in modular containers
 Sustainable propulsion support by a large Sail-Wing and Solar Panels
 On-board Ship-to-Shore Crane to handle container and XXL cargo alike
 Fast turn-over in small coastal and fluvial port-towns to reduce road-transport
 Fulfilling the Clean Ship-Concept (North Sea Foundation and T&E Brussels)
 Lightweight hybrid hull design and Serial construction

The vessel's energy efficiency results in more than 50% reduction of fuel consumption and
CO2 emission, using LNG piston machines only 36% of the time.

Although the whole impact as combination of all eight breakthroughs was kind of
overwhelming and will need further explication, several detail achievements are meeting open
interest and acclamation.

The solution without ballast water, the modular energy-concept and the on-board STS crane
were easily acceptable.

The large 1200 sqm Sail is easily accepted by industry-partners with own sailing experience,
but needs further tests and a full-scale model to convince the remainder.

Already during the project consortium members and the Classification Society DNV started
to copy parts of the project into their own work.

The impact on technology development will be further augmented during the building of the
first vessel. Already now links to SMEs for hybrid construction are forged and plans for
cooperation are drawn. These SMEs will become specialists in different technologies and
create new start-ups for future markets.

As the project presents lots of hard data on tank testing and wind tunnel testing as well as new
economic ways to calculate life-cycle costs, it will generate a boost of knowledge to the EU-
Industry and Operators.

Already the publication of the photos of the full-scale demonstrator of hybrid-construction

Aluminum-Composite raised a lot of interest in the Industry, showing, that EU-
CARGOXPRESS is a pragmatic result oriented project.

3.1.4 Impact from the resulting serial construction of the standardized vessel

27
EU-CARGOXPRESS presents the first modular and serial vessel for the maritime cargo-
industry.

Results will be already during design and building of the first prototype a tendency to
specialization and standardization.

Once reasonable production numbers have been reached, the impact will be further cost
savings through industrial production processes with adequate tooling and forms.

This will help to give European Maritime Industry a lead in high-tech, high-investment
construction and assure market positions against low-tech countries with abundant cheap
human resources.

Standardized and modular vessels will improve maintenance procedures and crew-training
likewise.

It will strengthen the maritime transport against the highly standardized truck-industry.

3.1.5 Impact on energy savings, the environment, CO2 reduction and climate change

A: Positive impact on energy savings versus the current vessel technology

As shown in Point 3.7 of this report the replacement of a current diesel-powered comparable
feeder with the innovative EU-CARGOXPRESS powered by LNG Genset, Sail-Wing and
Large Batteries together with slow steaming due to fast port-turnover mounts to 2,7 ton of
fuel per day or 950t/year.

For 660-1100 vessel being replaced (only a tenth of the whole outdated fleet) with this new
technology this would amount to 0,6-1M tons of fuel per year.

B: Eliminating road-transport especially around large terminals, coastal and fluvial areas

What means competitive to road-transport?

This number depends on the mix 20 versus 40foot containers and the empty transports.

Detailed impact of using one vessel instead of 100 trucks:

Resuming, one vessel compared to 100 trucks saves:

 80% of fuel
 96% of CO2
 98% of NOx

And still arrives around the same time.

The difference between 100 trucks on a 1000 for a 2,9 day journey over 1850km and the
delivery by EU-CARGOXPRESS is around 45t of fuel. Working 300 days per year, these are
4.655t/year.

Multiplying with the expected number of vessels saves 1-1,5 M tons of diesel per year.

28
Total Impact A&B

Taking both effects together we expect the following quantities:

 Fuel savings between 1,6 and 2,5 Million tons/year

 CO2 reduction between 4,4 and 6,7M tons/year
 NOx reduction between 60 and 90k tons/year

These numbers fall short of the envisioned goals of the Grant-Application (DOW) because
this expectation was oriented towards the year 2050. The Consortium decided to limit the
expectation period to 2030, because during the project the very poor forecast data became
apparent and would produce highly speculative numbers. But following a further progressive
grows on demand to move to maritime transport, the envisioned goal will be reached.

A second reason was the very conservative calculation of:

 Replacement of outdated vessels estimated only 6-10% of the needed volume

 No additional savings through partial employment of the findings had been calculated
 For the small-ports/hinterland traffic over 150km distance only 16% was expected to
go maritime transport

The consortium did not want to exaggerate results data, because the general quality of
available statistics on transport within Europe over 150km distance is very poor.

The conservative approach comes from the learning-experience, that the Maritime Industry is
very risk adverse. Before the promoters of the concept cannot show with a functioning
prototype the benefits of CARGOXPRESS, the industry will not convert to the new design
culture.

In the final conference two shipyards already confirmed their interest to apply parts of the
results in the following projects.

C: Positive impact for small maritime and fluvial port-towns and surroundings

As small ports tend to be in the periphery of the countries their and their hinterland is often in
a more depressed economic environment. Apart from touristic and some fishing income, few
industrial activities take place.

Converting these ports as vital entrance terminals for cargo as the project describes would
create many spin-off effects like:

 Port-distribution and collection of cargo

 Sending regional produce to the larger EU-Market
 Recycling activities
 Value-adding factory work on products for the hinterland or even the central region.
 Vessel maintenance and outfitting

As the coastal road-transport will be alleviated from heavy traffic, tourist-industry will get a
big support. This is especially evident in Northern Countries, where the coastal roads are part
of the beauty of the land, but not apt for heavy trucks.

29
On the other hand the large Sea-Terminals with their millions of containers handled each year
will get a relief of surrounding and terminal accessing transport, if more containers will be
directly shipped by CARGOXPRESS to the final customer port.

This impact is difficult to measure, but all interviewed persons explained high interest to
alleviate those roads, bridges and tunnels leading from and to the terminal. This is especially
true for Hamburg and Rotterdam.

An additional impact of this vessel concept will be the revitalization of small port-towns
creating new opportunities for service industry and logistic distribution centers.

CARGOXPRESS will reach touristic ports in natural protected areas with electric power on
board. First operators are interested for Formentera, Ibiza and other protected areas.

Current vessels have to switch to marine diesel instead of heavy-duty fuel.

D: Revitalizing European Shipyards and design Industry

The innovative concept multiplied with the conservative market forecast will produce
shipyard workload of 5mhrs/year till 2030. This amounts for 11 medium sized shipyards for
advanced technologies, composite, Aluminum and sail-production. The workload for the
equipment manufacturers is not included. Naval design and outfitting activities will rise
likewise.

It is desirable to start early with preparations and experiments of the new hybrid technology
before the Asian competition will catch-up.

E: Crew-demand on regular maritime routes

The project estimates a reduced crew-demand due to a different concept with modular energy-
equipment. The additional vessels for the new market of small port-towns will offset this
reduction from 12 to 6 crewmembers.

The planned automation will eliminate needs of highly specialized technical crew on board,
which alleviates the expected shortage of seafarers of higher training.

F: Reduction of truck-drivers due to more maritime transport

One vessel of 6 crewmembers will reduce the needed 100 truck drivers for the long haul. For
final delivery in the port-towns and hinterland no long-distance drivers are needed, because
the routes will be maximal 50km wide. The driver can be home at night with his family and
the employment of female drivers will be much simpler as today.

Nevertheless, there will be less driving on roads and the effect will be partial unemployment
of the current headcount.

30
This will be offset by employing less drivers from countries out of the EU and the expected
rise in volume of transport altogether.

3.2 Main dissemination activities

A: Overview

The result of the project presented in The Final-Conference shows a very promising concept
with reductions of 50% and more of fuel-consumption with equal or improved processes in
the ports.

The results surpass the expectations of the promoter of an innovative cargo-vessel converting
the original vision in a proven and studied concept.

The next natural step is the construction of one or two full-scale experimental prototypes to
run a normal coastal cargo-traffic and gain experience in daily operation at sea and in port.
Only by using those prototypes for demonstration and marketing of the findings, the broad
dissemination can be guaranteed.

Dissemination of these results is driven by strong commercial interests to spread the

knowledge and to reap benefits from the R&D results:

 Selling licences from the main concepts IPR

 Selling licenses from singular IPR
 Building and selling serial vessels with modern technologies
 Building and selling components with modern technologies
 Running logistic chains from door-to-door with these vessels and alleviating road
transport
 Investing in innovative and sustainable technologies and preparing for the Low-CO2
society

General dissemination of those results will serve this market-driven approach.

It guarantees wide distribution and application of the findings and as such improves the
efficiency of the Motorways-of-the-Sea and reduces road-transport accordingly.

It will prepare European maritime industry for the transition into the low carbon fuel society
and improve the shipbuilding sector with new and competitive technologies apt for the high-
wage workforce society and becoming again competitive against the low labor producers
from Far-East

B: Dissemination activities

http://www.cargoxpress.eu is oriented to 5 target-groups receiving general information and

specifics for their interest.

Flyers, we elaborated a flyer, (see addendum in 6 different languages and distributed in

conferences and meetings.

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Full prospectus is assembling all information from the web-page and from current
publications. The work on this booklet is ongoing and will be completed with the business-
Plan for exploitation.

Videos are all shown in http://www.cargoxpress.eu because the data transfer by mail is
cumbersome due to the size of the files. Six main videos had been elaborated and shown in
the conferences hells in April and May 2012.

A scale model 1:100 was elaborated in 3D Instant Prototyping converting the existing 3D
files in manageable dimensions. The model shows the functions of the gliding and turning
superstructure and lifts the sail-wing by mock-cylinders. It serves for meetings with operators
and ship-owners as well for the design of the first demonstrator to give a more tangible result
than videos.

A large demonstrator scale 1:1 of a main frame-section of the hull and cargo-deck in hybrid-
composite-aluminum construction was build.

Press releases have been edited in 6 languages and distributed to the newspapers.

Conference papers see below in listings.

Conference speeches see below in listings.

Promotion tour will start July 9th from Madrid to Hamburg aiming at convincing operators
and investors to join the EEIG (See exploitation)

3.3 Exploitation of results

The results of the project are backed by sound science and test-results. In the sum of all
achievable success the concept comes easily into the corner of being too fantastic, especially
in an industry, where efficiency improvements of 3-5% are considered a big success.

The only final convincing argument will be a fully functional scale 1:1 prototype sailing the
fluvial and coastal routes, serving small ports and documenting real-world results. This
prototype will be the best marketing instrument, visiting European ports and demonstrating its
functions.

Building of the prototype was not included in the EU-project and the consortium as such
ceases to exist as a legal entity after project ends. So a new carrier of the exploitation has to
be formed.

The promoters and the Technical Officer are creating a new EEIG (European Economic
Interest Group) for the building of the first vessel following the projects results. This EEIG
will be open for all partners of the EU-Project for joining and getting the benefits of the
exploitation.

The promoters expect the creation of a Spin-off company with an initial crew of 25
employees.

In the addendum we show the concept and a plan to finance this Endeavour.

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The most pressing objective is to get contracts or letter of intends (LOI) of some operators to
operate this vessel.

Two possible candidates are already in discussion and the signature of their commitment will
be the starting point of all following activities.

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Objectives of the Company

The creation of The Company aims at establishing a solid and promising institutional
platform for the commercial exploitation of the extraordinary knowledge and know-how
generated by a groundbreaking EU project for the development of a new maritime transport
technology.

In light of this endeavour, the participants of will:

a) financially benefit from the successful implementation of this revolutionary

innovation;
b) achieve significant image effects through the involvement in Greenhouse Gas
reduction;
c) find new business fields both in manufacturing and services.

Background

The 7FP-EU-Project: EU-CARGOXPRESS (Project Nr.: 233925) will be officially finished

in April 2012. As of today, most R&D results are presented. The status of the very
encouraging results and performance predictions can be accessed in
http://www.cargoxpress.eu.

The goal of the project, to produce a concept of a future competitive and sustainable container
vessel for small ports, has been more than fulfilled.

From the beginning of the EU-Project the promoters aimed at building a working vessel after
this concept as a 'Prototype' or 'Experimental Platform'. Now is the time to start with this
phase of verification.

The Company scope

EEIG CARGOXPRESS Maritime will be a new European Economic Interest Grouping

(different from the EU-Project Consortium), which will exploit the acquired knowledge of the
EU Project and background IPR for this new vessel.

EEIG CARGOXPRESS Maritime will be formed in accordance with the rules described
under the framework of the Council Regulation (EEC) No 2137/85 of 25 July 1985 on the
European Economic Interest Grouping (EEIG)

First, The EEIG will:

 Define the project scope and establish the budget for the first vessel
 Acquire financial resources to build and outfit the first vessel
 Implement project management procedures to control and report on the progress.
 Subcontract relevant work like detailed ship design, naval architecture, and class-
approval.
 Emmitt tenders for the construction in one or multiple places.
 Supervise the construction, test-runs and approvals
 Charter the operative vessel to a selected operator
 Scientific control of short and long-term behavior
 Coordinate the execution of changes and improvements as needed

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  Gather new IPR during operation
 Retire and sell for recycling the vessel at the end of its lifetime

The EEIG will be the owner of this first vessel with all IPR, benefits and risks.

Second, The Company will:

 Publish and market the results of the first full operations

 Sell vessels or parts of the main technology
 Plan serial production on different sites (similar to Airbus)
 Contract with long-term production partners
 Organize the logistical chains for the final assemblies
 Guaranty a permanent improvement and quality-control
 Develop further variants and sell into market

In the long term The Company will become a main actor in the market of sustainable and
competitive maritime transport.

Estimates of production costs

Within the EU-Project a prudent analysis of the price per Prototype or Serial Vessel has being
made. This estimation has the following tolerances:

A: Prototype

This concept has very innovative solutions, for which references from former constructions
can be used:

-The Concept of a hybrid hull-construction from Aluminium profiles and preformed

composite panels fastened and glued to them is new in this industry. Some shipyards do have
experience with vessel made entirely from composite material and could provide numbers for
the prototype calculation, but no experience for the expected simpler method of hybrid design
exists

 The moving superstructure with the large Sail-Wing are an Engineering challenge,
 Modular energy equipment without traditional machine rooms are not used currently
 LNG fuel systems are slowly entering in the industry, but many questions are still
open

Insecurity with new solutions tends to increase the price. Only after a profound detail design,
better cost estimates will be available.

B: Serial Product

Civil shipbuilding is simply not used to serial production at large scale. Building 5-10 vessels
out of one design is already considered great, even, if these builds are spread over a longer
period and the last vessel will be quiet different already from the first one.

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Planning a yearly production of over 50 vessels in the way Airbus is planning their series,
would be a total novelty to the maritime industry. It would allow shipyards to specialize on a
large component (Hull, Bow, Sail-Wing, Table etc) and develop cost saving tooling and
logistics. These savings can easily account for 40% of reduction in labor and 15-20%
reduction in material and overhead.

3.4 IPR

The basic European-Patent of the new vessel: EP 1 955 943 B1 Transportschiff, insbesondere
Frachtschiff will be part of the exploitation concept.

At this moment, foreground has not been protected yet.

Knowledge culminated at the end of the project and patenting takes time, resources and need
of verification, before setting the claims. That will be done but we do not have application o
IPR numbers yet. There are not patents submitted regarding to the foreground generated
during the project.

Future Patent-applications will be:

A: Guidance and handling of sail-wings on cargo and passenger vessels

Inventor: Innovacion Logistica SL (ILCX), Ferrol, Spain

Abstract:

Description of a novel sail-wing construction attached to a moving and revolving

superstructure-base and the technique to open and close it, the possibility to apply torque and
overload-protection and the use for other means as hatch-cover and on-board STS-Crane
support.

Basis and references:

Europe Patent/Application no: 07 016 019.7 / EP07016019 'Frachtschiff'. Owner of

background is the Director of said entity Volker Rosenkranz.

 Gebrauchsmuster Nr. 20 2007 011 455.9 'Transportschiff', Owner of background is

the Director of said entity Volker Rosenkranz.
 Copy right for 'Nuevo buque portacontenedores Euro-Freighter' Reg. 03/2006/619 in
the Registro General de la propiedad intellectual A Coruña/Spain. Owner of
background is the Director of said entity Volker Rosenkranz.

Status of application:

The IPR is in preparation, no formal application has been submitted due to:

 On-going Background research

 Designing of the drawings
 Texting of claims
 Intend to clarify some details more precisely before submitting

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  Intent for not wasting the 18 month international grace-period before the application
is ripe.

ILCX expects to submit the application: 'Guidance and handling of sail-wings on cargo and
passenger vessels' end September - beginning October.

B: Multi-point rail-system of a Ship-to-Shore crane with an independent control-cabin

Inventor: Innovacion Logistica SL (ILCX), Ferrol, Spain.

Abstract:

Description of a novel on board or on shore Ship-to-Shore crane with more than two rails and
independent multiple runners on those rails able to handle containers and XXL-Cargo alike in
a multiple point fastening, improving handling safety and efficiency and being guided by an
independent manned or automatic control-cabin with the ability to lower the controller to the
cargo level for safe and rapid manipulations of cargo gear.

Basis and references:

Europe Patent/Application no: 07 016 019.7 / EP07016019 'Frachtschiff'. Owner of

background is the Director of said entity Volker Rosenkranz.

-Gebrauchsmuster Nr. 20 2007 011 455.9 'Transportschiff', Owner of background is the

Director of said entity Volker Rosenkranz.

Status of application:

The IPR is in preparation, no formal application has been submitted due to:

 On-going Background research

 Designing of the drawings (partially done)
 Texting of claims
 Intend to clarify some details more precisely before submitting
 Intent for not wasting the 18 months of international grace period before the
application is ripe.

ILCX expects to submit the application: 'Multi-point rail-system of a Ship-to-Shore crane

with an independent control-cabin' end September - beginning October.

C: Hybrid construction from metal-structures and composite claddings for large surface-
elements in ship-building and other areas

Inventor: Members of the consortium, possibly SDC, F-AS, KAB, Swerea-Sicomp, ILCX.
(The group of inventors will be defined in meetings Hamburg 11.7.12)

Abstract:

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Description of a novel hybrid construction system from metal-structures and composite
cladding to form large surfaces in serial production eliminating time consuming welding and
finishing processes by combination of adhesive and mechanical bonding with solutions to
improve quality and stress-resistance of the bonded elements.

Basis and references:

None named so far.

Status of application:

The IPR is still in discussion of best ways to protect and on studies within the 7th or 8th
Framework program.

A decision is not expected before end of 2012.

3.5 Time Frame

End of EU-Project: April 2012

Forming of The Company: September 2012

Funding assured (promises): December 2012

Detail-Design: January- October 2013

Building the first vessel: 2014

Test-run and debugging: July 2015

Start of operating: September 2015

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List of Websites:

http://www.cargoxpress.eu/

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