Interview with

Olaf Danckwerts

InnoWaTr Centre of Expertise

99

Lars Stemmler

In a nutshell , our

tool tells a story

about the vessel ´ s

business in a

language that

bankers

understand .

„

CoE : What do you observe in terms of

finance for IWT vessels ?

Olaf : In the InnoWaTr project for Freight

Flow Coalitions ( FFCs ) , we observe there is

limited access to financing options for fleet

modernization , and if so , at higher interest .

CoE : Why do think do banks perceive IWT

as risky ?

Olaf : From the banks ´ perspectives IWT is

an uncommon asset class . The lack of

standardized assessment tools for IWT -

investments makes it difficult for banks to

properly assess them .

Do you have concrete examples ?

There are cases of family - run shipping

companies receiving significantly worse

interest rates compared to road transport

competitors . Or banks reject loan

applications of a Rhine fleet operator for

engine upgrades . In general , refinancing is

particularly difficult for older vessels ( 15 +

years despite proven operational records

How does HHX blue support FFCs ship

owners

As part of the EU Interreg InnoWaTr project

HHX blue is developing a standardized

assessment tool The aim is to assess the

bankability of the vessel A later version of

our tool also calculates cash - flows and

emission reductions .

How is the tool structured ?

The user completes a structured . Output is

delivered as a scoring system plus a cash

flow tool calculates financial metrics .

What data is required ?

The user must enter vessel specifications

and operational data , such as charter

rates and routes traded . The tool needs

operating costs , fuel consumption and

current financing data as well as past and

future maintenance .

What is the output ?

The cash - flow tool calculates total costs of

ownership over the vessel ' s lifetime . It offers

financial forecasts under various

operational scenarios . This is basis for a risk

assessment of different financing options .

The output also sheds light on the vessel ´ s

sustainability metrics . All this gets bank - like

documented for a loan application

What does the tool s output tell us

First of all the vessel s operational profile

determines available financing options

Core indicators are payback periods that

show amortization periods for investments

Here , industry benchmarks are important

comparators . But information does not

stop here . Our tool evaluates how

technological or operational changes

impact the bankability of the vessel . It

delivers an understanding how

sustainability improvements affect

financing terms .

What are the benefits ?

In a nutshell , the tool retells the business

case of the vessel in a language that the

banker understands . Using structured

questionnaires , we achieve consistency in

documenting the business ; and together

with the appropriate language , there will

be higher approval rates for loan

applications .

And even before talking to a bank , the

ship owner gains insights by using the

scenario analysis and benchmarks it

provides .

Olaf , tell us , what will change if the

FFC ship owner does not run the tool

Without using the HHX blue cash flow

checker and self assessment the ship

owner will have persistent difficulties in

securing competitive financing for the

vessel

We spoke to Olaf Danckwerts of

HHX . blue about business models in

IWT in general and financing for the

sector in particular .