aegean news€¦ · summer 2003aegean news3 8 pantelis kapros, chairman of rae, discusses current...

Southeast Europe

An Energy Map

RAE Chairman

Pantelis KaprosAn Interview

Greece'sEU Presidency

A Recap

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Aegean NewsSUMMER 2003

T H E Q U A R T E R L Y M A G A Z I N E O F A E G E A N

BunkeringA Strong Aegean Presence

SUMMER 2003 AEGEAN NEWS 1

Greece's six-month EU Presidency has concentrat-

ed a great deal of attention on Southeast Europe and

Greece's role in the political, economic, and business

spheres. One of the primary areas that the Presidency

focused on was energy. As the entire Balkan region de-

velops, energy demands will grow accordingly and a

new set of political and economic relationships will

emerge. An interconnected energy network will ensure

that supply is uninterrupted so that consumers' needs

are met. The energy sector's major growth, however,

will be the result of private investment and initiative.

AEGEAN has been following energy trends in the consumer and business

market as well as in the all-important shipping sector. We are responding not only

to new dynamics within the market but to new regulations and standards so that our

presence is forward looking and in the best interests of our partners and customers.

Our strategies for growth and improved services reflect the opportunities in an en-

vironment that will be radically different in a few years.

In addition to providing the best products and services to our customers,

AEGEAN believes that community involvement creates relationships that help all of

us develop. For this reason, we have been active in supporting commercial projects,

cultural events, and NGOs in a variety of ways. AEGEAN will continue to support

worthwhile efforts so that our community and the AEGEAN family become better

acquainted.

The tragic loss of Takis Kapsomenakis was a blow to all of us at AEGEAN. Takis

will always be in our thoughts and prayers and will always be part of our family.

∆Ô honor his memory and to remember him on a daily basis, we renamed the newly-

acquired, double-hulled D/X ANAHUAC 32000 DWT “CAPTAIN TAKIS.”

I wish everyone a safe, happy, and joyful summer season and look forward to re-

newed cooperation in the autumn.

editorial

DIMITRIS MELISSANIDIS

RetailMore than 280 gas stations through-

out Greece proudly display the AEGEAN

logo, and our network is growing every

week. AEGEAN's market share in Greece

is 4.5%.

ShippingAEGEAN manages a fleet of 26 tankers,

ranging from 3,500DWT to 100,000

DWT, that transfers and delivers oil to

our clients throughout the world. All

ships meet ISM standards.

BunkeringIn Piraeus, Gibraltar, Venezuela, and

the United Arab Emirates, AEGEAN is a

leader in providing the best bunkering

services available. In Piraeus AEGEAN

is the market leader in bunkering.

Agency ServicesShips from throughout the world rely

on our agency services at Piraeus and

Gibraltar 24/7, from loading and dis-

charging, to spare parts and supplies.

LubricantsAEGEAN exclusively stocks and sells

ChevronTexaco automotive lubricants

throughout its retail network.

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AegeanCore Activities


8 Pantelis Kapros,Chairman of RAE,discusses currentenergy topics at atime of swift change.

12 Aegean News exploresenergy connectionsthroughout theBalkans.

18

Summer 2003Aegean News is published quarterly by AEGEAN

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contents

4 AEGEAN UPDATE

6 FLOWS & CURRENTSTrends and News in the oil and energy fields

8 INTERVIEWPantelis Kapros, Chairman of the Regulating Authority for Energy, speaks to Aegean News

11 GIBRALTARAn Important Location for Aegean

12 SOUTHEAST EUROPE ∞n Energy Map

16 A WIN-WIN RELATIONSHIPAn interview with George Kandylis, Managing Director of ChevronTexaco Greek Affiliate

18 CONTINUED GROWTH IN MARKET SHAREKonstantinos Poursanidis on the Domestic Market and Aegean's New Policies

20 BUNKERING Gregory Robolakis on Fluctuations in Platts' Prices and the importance of Sulphur in Fuels

22 AGENCY NEWSNikolaos Firippis with an Agency Update

23 HELLENIC SLOPSMaintaining Environmental Standards

24 AEGEAN PEOPLE

25 STATION OF THE MONTH

26 EU NOTEBOOKGreece's Presidency

28 MARINE TRADITIONSThe Ancient Trireme

29 FORUMPaul Psomiades, President and CEO of the Aspis Group of Companies

30 TRAVELHalkidiki: Forests and Seas Meet Under the Mediterranean Sun

31 THE AEGEAN IMAGEProducts that say "We're different"

32 AEGEAN PROFILE

Aegean's new vaninitiative is aimed at guaranteeing thequality of productsand services.

4 AEGEAN NEWS SUMMER 2003

A E G E A N U P D A T E

Aegean Marine PetroleumSponsors Conference Reception

Aegean Sponsors Andrew Natsios PresentationAegean sponsored the presentation ofAndrew Natsios (photo-L), Adminis-trator of USAID, who spoke at anAmerican-Hellenic Chamber of Com-merce event on May 22 at the AthensHilton. USAID (the U.S. Agency for In-ternational Development) provides eco-nomic, development and humanitarianassistance around the world in supportof the foreign policy goals of the UnitedStates. Mr. Natsios discussed opportuni-ties that Greek companies have to par-

ticipate in the reconstruction of Iraq andspoke about a variety of programs thatUSAID sponsors in Southeast Europe. Dimitris Melissanidis (photo-R),Chairman of Aegean, met with Mr.Natsios prior to the official presentation,and reviewed the current environmentin Iraq and Southeast Europe.

Aegean Marine Petroleum sponsored the openingreception at the 2nd International Shipping andBunkering Conference held June 3-5 at the AstirPalace Resort in Vouliagmeni. Industry leadersaddressed a number of wide-ranging issues thatthe bunkering and shipping industries face. Inshipping, discussions focused on the cruise andfreight markets and legal implications of ship andport safety codes. Bunkering issues included legalcase studies in the event of business failures,

technical and credit topics, and face-to-face ses-sions with international ship owners, suppliers,traders, and brokers.

Aegean Sponsors IPA Event in AlexandroupolisThe Hellas Section, Region of Alexandroupolis, of the International Police As-sociation (IPA) hosted a meeting in Alexandroupolis on June 6 and 11 at whichthe Police Force of Larnaca, Cyprus was inducted into the IPA. Aegean was asponsor of the events at which the leadership of the Cypriot Police Force andrepresentatives of the Cypriot Ministry of Justice attended. Ioannis Pistolis wel-comed the more than 50 delegates on behalf of Dimitris Melissanidis, Chair-man of Aegean, to Aegean's facilities in Alexandroupolis and was honored bythe delegates at the formal ceremony. Mr. Pistolis is manager of the Aegean of-fice in Alexandroupolis. The IPA was formed in 1950 as a non-partisan association to promotefriendship, cooperation, and solidarity among police officers throughout theworld. Greece has been a member since 1966. Michael Pitiakoudis is Presi-dent of IPA's Alexandroupolis branch and Dimosthenis Marinididis is Secre-tary General.

Panayiotis Kapsomenakis 1965-2003

Panagiotis "Takis" Kapsomenakis died June 2in a traffic accident in Peristeri. Takis wasOperations Manager at Aegean since 1998.Dimitris Melissanidis, Chairman of Aegean,said, "Takis was one of the best employees in the

company and his energy, smile, and cooperative spirit will be sorely missed.Everyone at Aegean extends their heartfelt condolences to Takis' family duringthis very difficult period and all our prayers are with them." Mr. Kapsomenakisleaves a wife, Elena, his parents, and a brother.


Holidays 2003The GuideHolidays 2003: The Guide is the title of a 64-pageguide to summer in Greece and beyond, an insert inthe June 22nd edition of Eleftherotypia on Sundaythat was sponsored by Aegean. The summer guide of-fers information on Greece's islands, alternative holi-days that include rafting, trekking, and rock climbing,and a guide to chartering a yacht for independent sail-

ing vacations. The compact booklet makes a handy companion for those whowant to explore Greece's many wonderful beaches, mountains, and resorts.

Aegean SupportsConcertVasillis Lekkas, one of Greece's mostadmired interpreters of the music ofManos Hatzidakis, was to perform at the Ancient Agora on July 27.Aegean is supporting the concert,organized under the auspices of theMinistry of Health.

Aegean Tops GrowthFor the third consecutive year, Aegeanled in the growth of fuel sales in Greece.According to figures released by theMinistry of Development, Aegean'ssales of gasoline and diesel (automotiveand heating) grew to 355,010 MT in2002, up from 282,798 MT in 2001,an increase of 25.6%.

Logging OnCustomers and associates of Aegeanmay visit the company's web site[www.aegeanoil.gr] to learn about thecompany's activities. Bunkering cus-tomers may register online to conductbusiness and maintain contact withthe bunkering department.

In the June 15th issue of BIMAgazino, the weekly magazine of the Sunday Vima newspaper,

Aegean sponsored a full-size wall map of Greece insert that shows Greece's highway, railway, and

marine network as well as numerous attractions such as camping areas, historical sites, and nat-

ural wonders. The map featured the slogan Aegean: Fuel with low prices and high quality and is

part of Aegean's campaign to introduce the Aegean brand as the company's retail network

grows. It is expected that by the end of 2003, there will be more than 300 Aegean stations in

Greece, reflecting a 20-25% growth rate.

More than 250 Athenians of Pontian origingathered at the Grande Bretagne Hotel June25 to inaugurate the Pontian Associationof Athens (Euxinos) dedicated to preserv-ing the rich Pontian heritage and integrat-ing it into the Athenian political and cul-tural landscape. Many Pontians are promi-nent members of Athenian society and areleaders in business, the arts, politics, sci-ence, athletics, and community affairs.Dimitris Melissanidis, Chairman ofAegean, is President of the Association'sprovisional Executive Committee. Duringhis address to the members, Mr. Melis-sanidis noted that the Association will playa vital role to promote Pontian history,recognize the significant achievementsthat Pontians have made in Greece, and fill

a vacuum that has long existed in Athens.Harry Klin, Achilleas Aslanidis, TakisLoukanidis, Elias Atmatzidis, Alkis Pas-salidis, Pavlos Kontoyiannidis, KostasNestoridis, Savvas Kalenteridis, AnonisAntoniadis, Polychronos Enepekidis, SofiaIordanidou, and many other Athenians ofPontian origin attended the event whichfeatured Pontian dance and music.

Association of Pontians in Athens

Map of Greece in VIMAgazino

Athens Declaration Adopted Euro-Mediterranean Energy Agreement SignedEnergy ministers from the EU, including the 10 countries to join in 2004, and ministers

from 10 other Mediterranean countries signed the Athens Declaration for Euro-Mediter-

ranean Cooperation. The Athens Declaration, according to Development Minister Akis Tso-

hatzopoulos, "is a political framework that aims to create an integrated and inter-connect-

ed energy market" among the signatory nations. Within the agreement, the nations agree

to promote common policies in oil, natural gas, and electricity.

One of the principal aims of the agreement is to establish an attractive environment that

will attract private investment. In addition to the 25 EU member states, other countries in-

clude Turkey, Algeria, Morocco, Tunisia as well as the Palestinian Authority.


T

Greece hopes to establish closer energy ties with FYROM according to a state-ment by Development Minister Akis Tsohatzopoulos who said that better energyrelations would help complete Greece and FYROM's connection to the trans-European energy networks for oil, natural gas, and electricity. The minister,speaking to reporters in Skopje, said the neighboring countries are also examin-ing ways to promote the environment while developing new energy projects.

Greece Seeks Closer Energy Ties With FYROM Bad Weather TravelThe Ministry of Mercantile Marine stat-

ed that there would be no changes to

procedures governing the prohibition of

travel for passenger liners in bad weather.

The following points apply:

ñõõõ The priority of the Greek transport

industry at sea is safety and quality

ñõõõ õGreece is the only country in the

world that prohibits travel for sail-

boats in bad weather

ñõõõ In 2003, the current IT system will

be updated to apply regionally

ñõõõ The prohibition does not apply to car-

go and Ro-Ro ships over 75 meters

ñõõõ Should a passenger liner not carry

passengers but cargo only, then rules

for cargo ships apply

Shipbuilding and Repair Zone of Piraeus Oil Tankers to be MonitoredThe Merchant Marine Ministry

announced plans to monitor tankers

at points where they enter the Aegean

Sea, in order to keep track of all

movements and to be on the alert for

potential accidents and oil spills.

The ministry will install an electronic

Vessel Traffic Services (VTS) system

that is currently in operation in the

country's main ports.

F L O W S & C U R R E N T S

The Ministry of Merchant Marine announced that ithas completed measures to support and modernizethe shipyards of Piraeus. A newly created company,Piraeus Shipbuilding and Repair Zone S.A., has beenformed to advance the interests of shipbuilding andrepair in the greater Piraeus area. The principal shareholder in Piraeus Shipbuildingand Repair Zone S.A is the Piraeus Port AuthorityS.A., and will take measures to attract more investorsin the newly-formed company. Piraeus Shipbuildingand Repair Zone S.A will organize, develop, manage,and commercially promote the interests of shipbuilding and repair enterpriseswithin the zone, which has been officially designated an industrial area.

Safety Committee for Boats and Ports A committee for the Observation of Safety Measures for Boats and Ports(EYMAPL) was formed. The committee’s task will be to prepare proposals onpreparing and implementing new safety requirements applying to boats and port fa-cilities that are set out in orders by the SOLAS Board of Directors, and to proposeall necessary administrative measures that should be taken by MMM. The committee will collaborate with specialized security and project managementconsultants, who will provide the services required to accomplish the task.


Efthimios Mitropoulos Elected New IMO Secretary-GeneralThe International Maritime Organization's 40-member Council elected Efthimios Mitropoulos

of Greece to be the IMO's new Secretary-General. Mr. Mitropoulos will assume his new duties

at the end of the year when the incumbent, William O'Neil of Canada, steps down.

The IMO is the specialized agency of the United Nations with responsibility for safety of ship-

ping and the prevention of maritime pollution by ships.

Mr. Mitropoulos, speaking after his election, said "Although I interpret the Council's vote as a

vote of confidence in the particular individual, I cannot see the honor that goes with the vote

as not reflecting on my family, my family's home town, and my country, all three with deep

maritime roots, of which I am very proud."

Mr. Mitropoulos, 64, has been in the maritime industry since 1957 and has been part of the

IMO since 1965, when he was first became a member of the Greek delegation.

In a communiqué issued following a recent EU ministerial meeting, the IEA(International Energy Agency) said: "Meeting the long-term challenges of main-taining a secure, efficient, and safe energy system will require near-term action.Substantial new investment will be needed to provide secure supply, to reducedgrowing energy-related greenhouse gas emissions and to overcome the lack ofaccess to electricity for more than a quarter of the world's population." Speaking after the meeting, Development Minister Akis Tsohatzopoulos said"We find that apart from the IEA, the correct stance of the OPEC memberscontributed to an easy and effective handling of the situation during the Iraqicrisis, adequate supplies and security for consumers. Today we see a steady fall inprices, and the outlook is that with Iraq's resumption of supplies relatively soon,there will be a further downward stabilization of prices."

IEA Says New Action Needed to Maintain Safe Energy System

Under the Greek Presidency 2003, theMinistry of Mercantile Marine (MMM)created a new website to make infor-mation on matters pertinent to theshipping industry available to the pub-lic: www.mmm.gov.grThe new website is a dynamic andmodern information gateway servingthe citizen "without boundaries." It willmake information more accessibleworldwide, using the latest technologyto achieve MMM objectives and ad-dress shipping policy issues.

The new website will compliment theexisting MMM website (www.yen.gr),which will continue to function as thecentral website of the Ministry.

New Website for the Ministry of Mercantile Marine

Ministers Pledge Speedy Transport LinksEuropean Union Ministers have

pledged to re-start a program

designed to improve transport

among EU Member States and the

10 accession countries. Ministers

from five countries—Greece,

France, Portugal, Italy, and Spain—

signed a separate accord to develop

"supersealanes" for short-haul

freight traffic.

Greek SatelliteLaunchedHellas Sat, Greece and Cyprus's first

satellite, was launched May 13

aboard a Lockheed Martin ATLAS

V rocket from Cape Canaveral,

Florida. The $178 million project

will permit complete coverage of

the 2004 Olympic Games and will

provide a broad array of services

for Greece and Cyprus, including

satellite Internet, two-way

broadband, and complete

telecommunications services to

Greece's islands and remote regions.

Five companies are part of the

Hellas-Sat Consortium: the Hellenic

Telecommunication Organization

(OTE), the Cypriot company

Avacom Net, the Cyprus Bank

of Development, the Hellenic

Aerospace Industry, and Telesat,

from Canada.


R A E I N T E R V I E W

Law 3054/2002, that applies to the organization of the petrole-um product market in our country, has recently been voted in.What opportunities does it offer to companies in the market?The new law of 2002 gives companies in the market greateropportunities than they had in the past, facilitating expan-sion and allowing them to become more competitive. It alsogives them the opportunity to become vertically integrated.That is, they may acquire licenses allowing them to deal inmarketing, service stations, and resale. The law especially encourages the merger of small compa-nies within a scaled economic framework so that they mayacquire a pan-Hellenic scope; they may acquire storage de-pots in order to have more practical reserves and are there-fore not simply resellers dependent on the refineries.

How does the Regulation for Reserve Observation, which consti-tutes a core element of the law, facilitate competition? A key factor for the smooth operation of the market in anenvironment of free competition is that all fuel importershave access to the storage depots of the refineries. Suppose that someone imports petroleum products, whomust observe a 90-day safety reserve for these petroleumproducts, as is required by the new law, does not have certi-fied storage spaces. He turns, therefore, to the refineries thathave reservoirs. What happened until recently? The re-fineries allowed only those with whom they had fuel supplycontracts to use their depots. In other words, it was neces-sary to be a customer of the refinery to observe the safetyreserves requirement. The European Court condemned ourcountry for this practice, since it damages competition andessentially prevents imports by those who do not have theirown storage space. In practice, only the refineries made im-ports, with the result that prices given to dealers were set

Pantelis Kapros, Chairman of the Regulating

Authority for Energy, on the new rules

and regulations in the petroleum market.

New Rules in the Fuel Market Game Facilitating Expansion and Competition

The new law regarding the petroleum product market bringshigher competition and lower prices for the consumer. The Chairman of the Regulating Authority for Energy, professorPantelis Kapros, speaks to Aegean News about the new rules inthe fuel market. For example, whereas each importer must nowmaintain safety reserves of 90 days, all importers now have unfettered access to storage depots in refineries. Mr. Kapros points out that, essentially, the previous administra-tion regime prevented the import of fuel and petroleum prod-ucts by companies that did not have their own storage space."Thus, only the refineries made imports, with the result thatthe prices that were given to traders were higher than whatthey could have been," he says. These anomalies are dealt withunder the new law. At the same time, vertically integrated com-panies have been given the green light, and a new system forawarding licenses is being established for each sector—refine-ment, transport, marketing, and retail.

PPaanntteelliiss KKaapprrooss || RRAAEE CChhaaiirrmmaann


very high. From now on, the refineries will be required tolease storage space to all companies that import fuel, whichenables them to observe the requirement for 90-day re-serves. For example, ELPE, which has very large storagespaces, will not be able to deny some smaller player in themarket that imports fuel the lease of their storage space,who is then, of course, required to observe safety reserves. In this way, the safety reserves will be increased and conse-quently the price of fuels—that which interests consumers—will be much lower than.

What does the law make provisions for, however, with regards toits contravention? The tariffs for leasing of storage space will be publicized.Moreover, they will be checked. For example, ELPE will notbe allowed to assign storage space free of charge to theirsubsidiary company that deals in the fuel market and at thesame time lease space to a third party at high prices. Some-thing like this would constitute contravention of the law. Infact, the new law allows RAE to propose a maximum tariffat any given moment to the Minister of Development shoulda case of profiteering be brought to light.

Do you believe that competition in the Greek petroleum productmarket today is functioning correctly? When we talk about competition, we refer to the profit mar-gin of companies who import raw material and not to thetraders that buy refined oil for resale to service stations.Many times I hear people say "In Greece we have so manycompanies distributing oil, the price of petrol should belower." However, all these traders are essentially resellers ofthe same product after buying it from the same supplier. Akey element of the new law is imports. The importation ofoil by traders will be that which will henceforth regulate thefluctuation of prices in retail. Only then can we speak of thehealthy performance of competition in Greece. I believethat the day that this will happen will soon come. So, com-petition means that all companies in the fuel market canimport oil. Not, as it stood in the past, buying from the threeexisting refineries and subsequently quibbling over their in-dividual profit margins!

RAEThe Market ReguatorThe Regulating Authority for Energy (RAE) is the independent

administrative authority that was formed under law 2773/99,

whose role is to make proposals to facilitate free and healthy

competition in the deregulated energy market.

RAEinititates proposals regarding prices, the licensing of

private investors, and for the long-term energy strategy of

Greece.

Within this framework, RAE has delivered an interesting pro-

posal for the "Long-term Energy Plan" of the country to the

Minister of Development, AkisTsohatzopoulos, that addresses

basic policy aspects that Greece should follow until 2010. Ac-

cording to this plan, ú10 billion need to be invested over the

next few years to ensure that the country’s energy supplies

remain sufficient.

RAE "photographs" all the likely dangers that apply to strate-

gic planning in the energy market and proposes solutions. It

also points out that, provided that the necessary investments

are made, by 2010 Greece will have acquired a much more

modern and competitive energy system, which will provide

the consumer with clean, sufficient and, most important, af-

fordable energy.

RAE’s task is also to propose changes to law 2773/99, on

deregulating the energy market, to make the institutional

framework more efficient and welcoming to private investors.

RAE has already made concrete proposals to help "unblock"

the investment plans of private investors that amount to ú1.5

billion. The construction of thermoelectric generating plants is

needed, and yet today, two years into a free market, the plans

for the plants remain neglected.

The lack of interest from investors stems from the absence of a

suitable institutional framework which will enable them to be

competitive in the production and sale of electricity. One of the

main reasons that private competitors with the national elec-

tricity provider, DEH, do not pursue their investment plans, ap-

pears to be that lignite, used to generate 70% of electricity, is

supplied to DEH free of charge. The cost of natural gas, which

would be used by private investors, is naturally greater by far,

and entering into competition with the sole-provider of electric-

ity today would not be feasible.

"A key factor for the smooth operation of the market in an environment of freecompetition is that all fuel importers have access to the storage depots of therefineries."


How are today’s prices determined? Prices are determined in a logistical way and not on the ba-sis of supply and demand. We begin with the FOB Med in-ternational prices (the prices that apply to fuel sold in theEastern Mediterranean) and begin to add a margin of profitfor the refinery, transport costs, a margin of profit for thedistribution and delivery of fuel by companies and servicestations, and we reach a final price. This is not acceptable,especially in the context of a free market. Normally, priceswould be determined on the basis of supply and demand.Therefore, in order for competition to function properly, thefree importation of fuel must be allowed.

Do you believe that the ELPE-Petrola agreement will help to createhealthier competition? Absolutely. For a long time, I have been of the opinion thatthree refineries are too many for a country the size ofGreece. On the other hand, for many years now Petrola hasfocused on diesel. At the same time, however, it did not doas much as it could have, given the opportunity in this sec-tor: It remained in the sector of general refinement; it wasnot modernized, nor were any large investments made.Therefore, the merger has been beneficial indeed. Here Iwould like to mention a very sensitive issue because as theRegulating Authority we are concerned and may intervene.

It has to do with the enormous storage spaces of the newlyformed company. If the administration of the new companyuses the reservoirs in a way that contravenes the new lawand denies their lease to smaller companies, RAE will nothesitate to intervene since something like this would harmcompetition. We must be very careful when dealing withthis issue.

With regard to the organization of petroleum products, the newlaw also provides for the establishment of special measures(KEDAK) with increased powers of control. Do we have any resultsfrom these control measures as yet? From the first day of operation, the Control Measures forDistribution and Storage of Fuel has inspected, on average,four service stations per day and has found that 10%-15%adulterate the product and evade taxes. The tax evasion isowed to the fact that, for example, certain syndicates "bap-tize" diesel used for heating, which has a lower tax, asdiesel for motors, which is sold with a higher tax, so thatthey pocket the difference.

This also happens with shipping fuel that is sold as diesel,and with unleaded fuel that is "baptized" super. In anycase, today tax evasion amounts to 25% to 30% of totalturnover in the petroleum product sector.

Oil to Remain the FavoriteThe advantages of oil in terms of calorific value and ease of use

readily explain its rapid breakthrough in the western economies in

the immediate post-war period. Its properties gave rise to road

transport 99% dependent on oil. With greater of lesser speed it re-

placed coal for heating and then for the production

of electricity.

Although oil is being phased out of our

economies to a certain extent, as a result of the

oil crisis, it remains an essential economic com-

ponent in the Member states, primarily in trans-

port. Transport currently accounts for more that

half of oil consumption. While the oil market is a

high-tension market, whether this be due to producer-consumer

dialogue, prices on the international market, quantities available,

its impact on the environment or accidents at sea with wide media

exposure, it has to be said that it continues to enjoy the favor of

the public opinion.

Consumption in Europe will increase, with a higher growth rate

in applicant countries, because of their need to catch up in the pas-

senger and goods transport sectors.

More than 70% of the world’s oil reserves are located in the

member states of OPEC. In 2020 OPEC will cover 50% of the

Unions’ needs with production at 55 million barrels a day, compared

to 32 million barrels a day in 2000.

Factors likely to affect price levels include the economic growth

rates of importing countries, the progress made in

curbing demand, the addition of new reserves, and

the tightening of environmental protection stan-

dards. Technological developments will pose the

principal threat to OPEC namely; new production

techniques, non-conventional oil, and the develop-

ment of new fuel substitutes.

In 1989 the countries of the former Soviet

Union were producing more than 11 million barrels a day, and pro-

duction could double from 7.8 million barrels a day in 2000 to 14

million in 2020. The known reserves in the Caspian Sea basin (25

billion barrels) are roughly the same as in the North Sea and the

USA. Potential reserves could exceed 200 billion barrels, i.e. 25%

of known reserves in the Middle East.

R A E I N T E R V I E W


B U N K E R I N G

The historic rock is also one of thebusiest bunkering ports in theMediterranean and Aegean is

well-established in Gibraltar, whereAegean Bunkering (Gibraltar) Ltd.supplied 12% of the market in 2002.

It was not until 711 A.D. thatGibraltar became inhabited, during theMohammedan invasion led by Tariq-ibn-Zeyed. In 1462, the Spaniards cap-tured the six-square kilometer outpost,which it lost to the Anglo-Dutch forcesin the war of Spanish Succession in1704. Since then, it has been in Britishhands and today is a British DependentTerritory. It is self-governing except formatters relating to foreign policy, forwhich it relies on Great Britain.

The strategic island is the welcomingbeacon for ships entering the Mediter-ranean from the Atlantic and accom-modates all kinds of vessels, includingcruise liners. Vessels calling for bunkerscan be berthed at the Western Armwhere the outer side is 490 meters longand has a draft up to 9.6 meters. Ships

of deeper draft can be accommodatedaccording to the tide.

Bunkering continues to grow atGibraltar, where 3.3 million tons ofbunkers were delivered in 2002, com-pared with 0.84 million tons in 1990.

Within the port, bunkering is now theprimary commercial activity and morethan 6,000 vessels are served annually.

Aegean Bunkering (Gibraltar) Ltd.has three bunker tankers with a totalcapacity of 13,000 tons at the Port ofGibraltar, where the vessels deliver fuel

for Aegean Marine Petroleum S.A.The port has responded to the de-

mands of servicing a large number ofvessels and has also placed itself as acenter for tourism. Among the island'sattractions are St. Michaels cave, theBarbary Apes Den, the Moorish Castle,and the City Under Siege exposition.Diving, sailing, and dolphin watchingare popular activities on the island,where many visitors spend just a shorttime, either passing through or on daytrips from Spain or North Africa.Some of Gibraltar's Port Provisions:● Red Ensign Category 1 ship register● Three dry docks up to panamax,

including the largest covered drydock in the Mediterranean

● Wide range of repair facilities● State-of-the-art cruise facilities● International Airport● Cargo handling facilities● Off-limits services● Provision of charters● Compass adjusting● Three yacht marinas with 450 berths

Sitting at the crossroads of the Atlantic Ocean and the Mediterranean Sea, Southern Europe

and North Africa, Gibraltar is one of the busiest ports in the Mediterranean.

"The historic rock is alsoone of the busiest bunkeringports in the Mediterraneanand Aegean is well-established in Gibraltar,where Aegean Bunkering(Gibraltar) Ltd. supplied 12%of the market in 2002."

GibraltarAn Important Location for Aegean


The growth of the Greek energymarket will depend to a largeextent on the dynamics of in-

ternational markets, and on condi-tions and developments in SoutheastEurope.

The turnover of the Greek energymarket today is estimated to beroughly ú7 billion annually and is ex-pected to increase significantly,mainly because international net-works originating in Central Asia(Iran, Turkmenistan, Azerbaijan, andKazakhstan) will go through Turkeyand Greece before connecting to thelarger markets of Western Europethrough a nodal intersection in Italy.

These networks include new oil andgas pipelines and electric network

connections, which will facilitate theconveyance of fuel from the sources ofproduction to Europe. Initial esti-mates of the projects bring the cost toroughly ú22 billion. However, as theMinister of Development, Akis Tso-

hatzopoulos, and the CommunityRepresentative, Loyola de Palacio,emphasized at a recent congress inAthens, the essential requirements forthe projects' materialization are polit-ical stability and inter-country col-laboration, so that private capital isattracted.

Projects with a direct interest forGreece include the Burgas-Alexan-droupolis oil pipeline, as well as thenatural gas pipelines from Turkey toGreece and Italy, from Turkey toGreece and the western Balkans, andfrom Turkey to Bulgaria and theEastern Balkans, all with a final des-tination of Europe. Also of interestare the electricity networks linkingGreece with Turkey, Yugoslavia, and

Bulgaria, as well as a Cypriot pipeline,since it transports gas from Egypt toLebanon and Syria, and terminates inCyprus.

These developments are importantnot only for the Greek economy but

also for raising Greece’s diplomaticstanding in the region. In addition tooil, natural gas is a primary playerthat will shape the future energy mapof the Balkans and Europe.

Pipelines The need for the transportation of gasfrom the East (Caspian Sea, Iran) tothe West will shortly lead to the man-

ufacturing of pipelines. All possibleroutes go through either Russia orTurkey. The pipelines through Russia(many of which already exist) do notthreaten to decrease supplies from thiscountry, which will continue to providesupplies to the European Union.

Turkey will inevitably be the maintransit country for natural gas fromIran and the Caspian Sea to Europe.The principal route westward for gasfrom Turkey is via Greece. Agreementsand planning have already been com-

The Energy Map Southeast Europe

Energy and the energy network that will go through Greece constitute perhaps the greatest

challenge for the Greek economy in the next few years.

S O U T H E A S T E U R O P E

“The turnover of the Greek energy market is estimated tobe roughly ú7 billion annually and is expected to increasesignificantly, mainly because international networks will go through Turkey and Greece.”

EElleeccttrriicciittyy NNeettwwoorrkk

OOiill NNeettwwoorrkk

NNaattuurraall GGaass NNeettwwoorrkk


pleted, and the manufacturing of apipeline connecting the networks ofTurkey and Greece will begin shortly.

Two different routes are being stud-ied for the transportation of gas viaGreece to Western Europe. The princi-pal route is via Italy, through an un-derwater pipeline 180 kilometers long(Otranto - Parga), which will connectto a pipeline on land 330 kilometerslong through Greece. The capacity ofthe pipeline will be 6 bcm/year andthe total cost is estimated to be ú1 bil-lion. The feasibility study of thepipeline is expected to be completed bythe end of the year. Greece will, in allprobability, function as the transitcountry for natural gas in the immedi-ate future. Investments exceeding ú1billion are required for this purpose.

Electricity Over and above the international elec-tricity networks that exist in theBalkans, the deregulation in the Greek

electricity market will play a decisiverole in the configuration of a new mapfor the region in this sector, but themarket also presents difficulties. Theprimary reason for the difficulties inthe development of independent elec-tricity generating stations is that pri-vately owned stations are not viable aslong as Greece's PPC (DEH, the na-tional electricity company), charges itscurrent low tariffs. Despite the rapidincrease of demand (at 4% annually), itis estimated that the existing DEH sta-tions and those under construction, to-gether with imports, will cover demand

until 2007, especially if the hydroelec-tric units are used more rigorously.

The deregulated market formallycame into effect on February 20,2001. From this date, the productionof electric energy in the establishednetwork of the country was opened tocompetition, and the roughly 7,500consumers that are connected to thenetwork in high and medium capaci-ties (discerning customers which rep-resent 34% of demand), acquired theright to choose their supplier. Untilnow, the Ministry of Development, inconsultation with RAE, the state reg-ulatory agency, has granted seven li-censes for the construction of largenatural gas stations with a total outputof 2,750 MW, but construction hasnot begun on any of them, since allface the problem of finding finances.Five licenses have also been given forthe importation of 1,343 MW, butuntil now the imports (DEH aside)have amounted to a small part of totalconsumption.

OilThe prospect of manufacturing theBurgas-Alexandroupolis pipeline, aspart of a more general plan for thetransportation of oil from the CaspianSea to European markets, is important

S O U T H E A S T E U R O P E

The New ELPE Protagonists in the Balkans The business marriage of Hellenic Petrole-um and the Latsis group changes a varietyof factors in the refining and marketing ofpetroleum products. The new company, which is currently takingshape, while absorbing the strategic ambi-tions of the two groups, will play a more ac-tive role in the natural gas market and inelectric energy, both in Greece and abroad. In the sector of refining, the new compa-ny—with four refineries (three in Greeceand one in the Former Yugoslav Republicof Macedonia) and depots that can store5.9 million tons of oil—is by definition thesovereign power in the domestic market,while its expansion into the Balkan coun-tries and the Eastern Mediterranean cre-ates other dynamics. The company will also play a leading rolein the natural gas market through DEPA,Greece's national gas company, in whichELPE holds 30% of the stock. This markethas already entered the developmentstage, and natural gas has begun to enterthe network of the Gas Distribution Com-pany (51% is owned by DEPA), not onlysupplying businesses but also the house-holds of Attica. Business opportunities in the natural gassector do not lie only in retail sales: The pipelines for transportation requireinvestments of many billions of euros.


The Caspian Sea and the Role of GreeceIt has been estimated that there arepotentially 235 billion barrels of oil in theCaspian Sea region. This wealth is found incountries at considerable distances fromworld markets. The distance of thesecountries from the markets and their lack ofinfrastructure to facilitate the transportationof oil and gas have attracted the attention oflarge oil companies and those withtechnological know-how to the region. Thetransportation of oil to the markets of theWest or East will not serve energy interestsonly, however. Wider economic and politicalinterests will also be served, such as thebuilding of roads that will provide access tothe pipelines. In an effort to decrease theinfluence that Russia has in the region,Caspian countries are seeking alternativeroutes that will bypass the existing Russian

transportation network. A similar bypassexists serving American interests in thetransportation network in Iran. Greece isseeking to be a player in this market and it isprecisely for this reason that American andRussian diplomacy has been at work toinfluence Athens. However, will Greece beable to take on this pivotal role—diplomatic,political and economic—in the region? Towhat extent have Greece's industrial andpolitical leaders fully realized the role thatGreece can play in the Balkans, the EasternMediterranean, and the Black Sea-CaspianSea region, a role centered around energyresources? These are questions that stillhave not been answered.

for the oil transport sector. Undoubt-edly, if this pipeline is manufactured,it will raise the geopolitical standing ofGreece significantly. It is important tonote that Greece is capable of produc-ing surpluses from refineries, as aremost European countries. The totalcapacity of the four Greek refineries(ELPE Aspropyrgos, EKO, Motor Oil,and Petrola) amounts to 22.2 milliontons annually against a total demandof 18.4 million tons. Moreover, theHellenic Petroleum-Petrola agreementchanges the status quo, not only in theGreek oil market but also in that of theBalkans and Europe.

Natural gas Developments in the natural gas mar-ket in Greece and neighboring coun-tries will be determined by the largedeficit of natural gas that exists inWestern Europe and by the need tosupplement it using new suppliers,namely Iran and the Caspian Seacountries. Total demand for natural gas in West-ern Europe amounted to roughly 380billion cubic metres (bcm) in 2000 andthis demand has increased by roughly3% annually. It is expected to reach500 bcm by 2005 and to exceed 730bcm by 2020. Imports of gas in 2000

covered roughly 40% of demand (150bcm). This percentage is expected toincrease rapidly due to the increase indemand and the decrease in produc-tion, and the small reserves of WesternEurope (5,200 bcm) suffice only for18 years at the current rate of produc-tion (290 bcm annually). Two suppliers provide 95% of importsof natural gas in Europe: Russia(58%) and Algeria (37%). To decreasethe dependence on these two countries,the European Union encourages di-versification in sources. With this inmind, the EU has turned to Iran andthe countries of the Caspian Sea andCentral Asia. Iran, with 16% of theworld’s reserves (23,000 bcm), is thesecond richest country in natural gasafter Russia. All the countries of theregion are eager to deal in exports ofnatural gas in an effort to supporttheir economic growth.

Greece’ s Energy ConsumptionGreece consumes roughly 400,000 barrels of crude oil daily, about 210,000 barrels refined atHellenic Pettoleum and about 190,000 from the refineries of Petrola and Motor Oil. Total annu-al consumption reaches 12.8 million tons, while the strategic reserves of the country amountto roughly 3.8 million tons. Greece's increase in GNP and improved standard of living translates into a continuous increasein oil requirements, a trend set to continue during the next 30 years. For the country to secureenergy resources until 2010, for economic competitiveness, and for the benefit of consumers,investments of many billions of euros in the Greek energy market are essential.Greece, more than any other member-state of the EU, depends on energy from oil. The totalannual consumption of oil for energy in Greece equals 67.95%. The EU average is 49%. Nat-ural gas covers a large part of Europe’s energy requirements—24.2% on average—while inGreece it covers 2% of total annual energy consumption. According to EU legislation, every country should observe reserves of at least 90 days. Duringthe Iraq crisis, Greece had roughly 2.5 millions tons in reserves, enough to last 105-110 days.

What have been the greatest advantages to the Texaco Chevronmerger for the company in Greece?Because of the previous limited presence of Chevron in theGreek market, no considerable short-term advantages can beseen resulting from the Chevron-Texaco merger. However, aChevronTexaco Greek affiliate, drawing on an extended foun-dation of know-how and an expanded business portfolio, canplan its future progress on the basis of a profitable, sustainable,and high-tech infrastructure relying on considerable re-sources. From this standpoint, there is a multitude of medi-um- and long-term advantages that we anticipate will furtherenhance our presence in the areas where we operate.

Many of your products are produced in, and exported from,Greece. How do you view Greece as a base for regional operations?ChevronTexaco Greek affiliate is the ideal supplier of lubri-cants to a number of destinations. It is not only the geograph-ical position of our plant that makes us the supply-point ofchoice, it is also our vast experience in the export trade, wherewe have the flexibility to customize our service to perfectly fitour customers’ needs. These assets were immediately identi-fied as our strong points, and from the moment the merger wasannounced every month has been a record month for our ex-port business. In fact, there is even more export potential since

a little more time is needed for business units in other coun-tries to rationalize their logistics and change their pattern ofsupply. The future for our export business is very promising.

You have a strong relationship with Aegean. In what ways is this awin-win partnership?It is clearly a win-win business relationship. Texaco secures

its presence in a fast-growing retail network throughoutGreece that conveys a profound message: "Texaco is still here."The Aegean network, with its superior design and expand-ing presence nationwide, is the right strategic partner to

achieve this goal. Apart from that, the alliance offers Texa-co and its customers an additional channel for providingTexaco's products and services. This allows our strategy tobe flexible and customer-friendly. It also generates a rev-enue stream adding to our bottom line results.

Aegean, on the other hand, is creating a value-addedprofile to the end user by utilizing Texaco's brand, whichhas been for decades synonymous with exceptional qualityand superior technology. Through this cooperation Aegeanassures itself access to a universal lubricants environment,keeping pace with all new developments in the industry andsharing years of lubricant retail sales experience. Aegean has in hand a strong competitive advantage over otherGreek companies and can face multinational competitors. Ourcollaboration is a powerful marketing tool to use in the fierce-ly competitive fuels and lubricants retail business in Greece. Itis, of course, a profitable cooperation for Aegean as well.

Aegean and ChevronTexaco A Win-Win Relationship

I N T E R V I E W

George Kandylis, Managing Director of

ChevronTexaco Greek affiliate, speaks to

Aegean News about the Texaco lubricants

that Aegean offers to its customers.

"The Aegean network, with its superiordesign and expanding presence nationwide, is the right strategic partnerto achieve this goal."


What superior technologies do Aegean and ChevronTexaco cus-tomers benefit from and what can we look forward to in the futureregarding technologies in lubricants?Technologies developed are directed mainly via two channels:a) technologies for upgrading lubricants quality and perfor-mance according to OEM requirements and b) technologiesfor monitoring lubricants condition and servicing, resulting ina Technical Consulting Service orientation. EveryTexaco cus-tomer and Aegean customer will take advantage of both.

Technology for producing synthetic lubricants is availablein a wide range of Texaco products from petrol and dieselengine oils to synthetic gear oils, in addition to products de-signed for industrial applications. Hydrocracked productsare also available, as well as conventional oils with the latestadditive technology which creates outstanding performancemeeting all OEM guidelines. Our patented technology incoolants should also be mentioned. Havoline XLC is an ex-ample of a product that can last much longer than any oth-er type of antifreeze product in the market.

Technologies having to do with monitoring and servicinginclude a series of used-oil analysis and maintenance mon-itoring programs such as OilCheck, TexCheck, and Compu-tex. These tools not only provide immediate assistance tothe customer regarding lubricant condition but also serve asa guide to reach the final goal—cost reduction of lubrica-tion. If you add to these the experience and expertise re-quired (technologies are not stand alone tools) by highlytrained professionals, the result is high-quality TechnicalConsulting which each Aegean customer can enjoy.

In terms of the future, it is really hard to predict sinceOEM requirements dictate technology upgrading. It ap-pears, however, that we are moving to lower consumptionof more expensive lubricants supported by much more so-phisticated programs, resulting in an overall cost reductionin lubrication.

What kinds of incentive programs do you offer station owners andhow do you keep the owners abreast of product news?Our team directly cooperates with Aegean Sales Representa-tives to provide customers with updates on our products andservices. We identify market needs and create promotionalprograms according to our marketing plan. Of course I cannot reveal our plans, but there are promotions designed toserve the needs of all intermediaries, the retailer, and the enduser. Last March, for example, we successfully launched apromotional campaign primarily targeted at retailers thatprovided incentives to the gas station owner to introduce ourhigh quality engine oils to customers. I have to say this

CLEAN SYSTEM ADDITIVE promotion was a success,and we will create more this year. As I said, we have a strongcooperation with Aegean Sales Reps. We exchange thoughtsand ideas and I'd say we have prospects for a bright future.

What is your "Eco response" in Greece? What programs do youhave in place to ensure that environmental protection is part ofyour corporate culture?Texaco Greece, as part of ChevronTexaco Global Lubri-cants, fully conforms with the Corporate HES (Health,Environment, Safety) policy. This is implemented throughan integrated Management System in compliance with ISO14001 standards and Corporate Operational ExcellenceSystem Requirements.

Apart from operational specifications, separate HESobjectives and targets are set at the beginning of each year,and are implemented through "environmental or safety pro-grams" in which resources and responsibilities become allo-cated and monitored through the year. This process is aprescribed cycle of actions integrally linked to the businessplanning process. Our Business Unit accomplished severaleco-programs the last year:● Monitoring groundwater pollution● Construction of a new wastewater treatment unit for

reaching effluent composition standards of ChevronTexaco,which are far more strict than Greek law requires

● Management and disposal of every waste stream of theplant, according to the requirements of ChevronTexacopolicy and European Standards

● Launch of a paper recycling scheme for both plant andoffice paper streams

● Launch of a battery recycling scheme

Nowadays, we are in the middle of a project to initiate tworecycling schemes for our customers, one for used-oils andone for used-packaging. Every good idea that can lead usone more step forward is included in our yearly programs. This drive for continual environmental improvement is notan ad-hoc action. Texaco Greece wants to lead the world insafety, environment, health, reliability, and efficiencythrough the use of robust processes. We are committed tocreating superior value in these fields and we strive to showthat in our everyday business.

"Aegean has in hand a strong competitiveadvantage over other Greek companies and can face multinational competitors."


How is the retail market developing?During the last few years the competi-tion in the market has become far moreintense. One main reason is that cus-tomers are becoming better informedand are demanding higher quality prod-ucts and service. In addition, customerswant service stations that are attractive,clean, and pleasant.

Another primary characteristic of themarket is that during the last five yearsmultinational companies have been los-ing market share and domestic compa-nies have been gaining market share. In1998 multinationals had 44% of the re-tail market whereas today they have35.5% and the market share of Greekcompanies has increased from 56% to64.5%. So we have seen a shift by cus-tomers toward Greek companies for the

reason that Greek companies offer thesame product at a more attractive price.

Has the market been growing?Yes. For instance, during 2002, therewas a growth of 4.3% in domestic sales.At the same time, Aegean grew by25.6%, the largest increase in sales in thecountry by any company. And, firstquarter results indicate that this trend iscontinuing into 2003. This is in a marketwhere there are 20 companies competingfor the loyalty of domestic consumers.

How do you view the future of petroleumsales in the domestic market?Indicators show there will be a contin-ued growth in the market and as cus-tomers see an improvement in serviceand quality by Greek companies, withthe understanding that the quality ofall petrol is essentially the same, willshow a preference for Greek brands.The market should grow by just slight-ly less than it did in 2002, let's sayaround 3%-3.5%, but I believe thatAegean will continue to lead thegrowth rate by far, with a rate between20% and 25%. Aegean's network con-tinues to grow and should include wellover 300 stations by the end of theyear. Primarily, we are now expandingour network in the south— in Attiki,the Peloponnese, and Western Greece.

Aegean invests a considerable amount ofmoney in its network and stations. Up to now, we have invested roughly ú6million in our stations and retail networkand until the end of 2004 we will investanother ú4 million, for a total of ú10million. We believe that having highquality stations with clear signs, efficientpumps, and protective canopies shows ourcustomers that we take their needs intoaccount. Customer service is and stationquality is at the top of our priority list.

You have recently initiated a new inspectionand control program with a mobile inspec-tion van. What is the function of the van?

Konstantinos Poursanidis, Aegean's Domestic Market Manager, discusses the programs, prospects,

and strategies of Aegean as it becomes a leading player in the retail gasoline market.

Continued Growth in Market Share New Aegean Van Program

D O M E S T I C M A R K E T


"I believe that Aegean willcontinue to lead the growthrate by far, with a ratebetween 20% and 25%."


The new van initiative is aimed at guar-anteeing the quality of our product andservices. The van is a mobile inspectionunit operated by a highly qualifiedtechnician. Without warning, the vanvisits stations in our network and ana-lyzes a station's fuel on the spot to de-termine if it has been altered in anyway. In this way, Aegean continuallymonitors its fuel to ensure that fueltampered with from any source is notsold at Aegean stations.

If the fuel is found to be as it should, a

written certificate is issued. If the fuel isfound to have qualities outside Aegean'sspecifications, it is immediately re-placed, the reasons are investigated, andany infractions are dealt with in thestrictest way. All measures are taken toensure that the reputation of the com-pany is maintained and that further in-fractions are prevented.

This program is one that we are veryproud of since it strongly supports thethree pillars of Aegean's credo: lowprices, aesthetic superiority, and quality

of services and products. Aegean willcontinue to initiate innovative projectsthat ensure we maintain the higheststandards in customer service, qualitycontrol, and environmental protection.

1998 1999 2000 2001 2002

GREEK COMPANIES FOREIGN COMPANIES

30

40

50

56,1

43,9

41,8

58,2

70

60

�

60,6

39,4

63,9

36,1

64,5

35,5

Konstantinos PoursanidisDomestic Market ManagerKonstantinos Poursanidis heads the

domestic market operations at AEGEAN.

Mr. Poursanidis studied business man-

agement and received his university

degree from the University of Piraeus.

He has been active in the oil sector for

25 years. He spent 23 years at Texaco

and a year and a half at Shell. Since

April 2002 he has been at Aegean.

His primary respon-

sibilities include the

retail station net-

work, programming

fuels from the

refineries, and

negotiating with

the government.

"The van is a mobileinspection unit that visitsstations in our network andanalyzes a station's fuel on the spot."

Retail Market Share: Greek and Foreign Companies


Fluctuation in Platt's Prices

B U N K E R I N G

From the beginning of 2003, Platt's prices have been highly unstable

for fuel and gas oil products in the Mediterranean, as seen in the table.

When prices continually rise,or fluctuate widely on a dai-ly basis, the selling process

becomes extremely challenging and dy-namic. It is not easy to forecast theproper time to buy or sell, for eitherbuyer or supplier, and maximize or evenensure profits in bunkers.

It is vital, therefore, to be continuous-ly informed and up-to-date with mar-ket events and conditions, to communi-cate with customers for an understand-ing of market levels, and to analyze pricetendencies daily. Risk is a constant ele-ment, but being on top of the market ismandatory to minimize risk.

The customer, an integral piece ofthe bunkering puzzle, must be care-fully selected and serviced. The sup-plier must make well-informed deci-sions about to whom the product issold and must assess numerous vari-ables: credit line, payment terms, and

the like. Likewise, customers do theiranalysis and take into account notonly competitive prices but aspectssuch as quality, service, and estab-lished business relationships thatcome into play in the event of diffi-culties in supply.

Aegean is dedicated to excellenceand is committed to providing thehighest level of customer servicethrough its able and experiencedstaff. Moreover, Aegean can providesupport to all its customers who pur-chase petroleum products in eachport it serves.

by Gregory Robolakis

Fuel13/02/03 178-185 $/MT

25/04/03 123-127$/MT

19/06/03 142-146$/MT

Diesel05/02/03 270-275 $/MT

10/03/03 370-375 $/MT

19/03/03 230-235 $/MT

0

2/1/

2003

16/1

/200

3

30/1

/200

3

13/2

/200

3

27/2

/200

3

13/3

/200

3

27/3

/200

3

10/4

/200

3

24/4

/200

3

8/5/

2003

22/5

/200

3

5/6/

2003

19/6

/200

3

3/7/

2003

17/7

/200

3

50

100

150

200

250

300

400

350

GASOIL

FUEL10/3/03

13/2/03

13/2/03

5/5/03

DATE

PRIC

E (S

/TN

)

Platt’ s Prices 2003 (High CIF Med)

Industry experts know that minimizing the number of lubricants used on a vessel simplifies

the lives of the people that use and order lubricants.

The Importance of Sulphur in FuelsChoosing the Right Lubricant

SPRING 2003 AEGEAN NEWS 21

Many main engines are builtthat require a specific typeof lubricant and the use of

that lubricant is vital to the longevityof the engine. In other words, thequality of the fuel burned is of utmostimportance to how well an engineperforms and for how long. The typeof fuel used—MGO, MDO, of MFO—is a primary criterion, due to the sul-phur content, which differs dependingon the category of the fuel. Duringcombustion, SO2 or SO3 are createdwith the presence of water, and sul-

phuric acids emerge, which are highlycorrosive.

The essential characteristic thatdetermines the correct lubricant insuch cases is its alkalinity (TBN). Thisbasically represents the capability ofthe lubricant to neutralize acids thatdevelop during the duration of com-bustion.

Depending on the type of engine,the type of fuel, and the percentage ofsulphur, the following categories oflubricants should be used.The recommendations of the engine

manufacturer should always be fol-lowed to determine the final choice ofthe lubricant.

by Gregory Robolakis

Engine Slow Speed Medium Speed Medium/High Speed High Speed

Fuel 3-5%S 3-5%S 0,5-3%S 0,2-1,5%S

LLuubbrriiccaanntt M/E: 5-8 10-40 6-30 6-16

TBN CL=70

Gregory RobolakisDirector of Marine SalesGregory Robolakis earned a master’sdegree in chemical engineering at the CityUniversity of New York. His career beganat Shell Hellas in 1988 and in 1994 hetook over as Director of Marine Sales ofAgip Petroli Spa in the Athens offices. Mr. Robolakis joinedAegean as lubricantsmanager and fuels contract negotiator andis currently Director of Marine Sales (Fuelsand Lubricants).

Shipping

According to statements by Aegean Shipping, Aegean is closely moni-

toring the developments in the industry and the European Union re-

garding the regulations for the phasing out of single-hull ships. New

EU regulations state that all ships that transport heavy oils must be

double hulled vessels. Regardless of whether the company agrees with the regulations,

they are here to stay and it must be prepared and comply. Aegeanacquired two double hulled vessels several months ago which itintends to use in its bunkering operations and it is now looking atother double hulled vessels to purchase.

Recently Aegean acquired the Mexican-flagged ANA HUAC, a30,000 DWT double side vessel that it intends to convert into adouble-double hull. This vessel will be used to service the contracts

Aegean has in the EU. During the last several months the company hasbeen rejuvenating its fleet with the purchase of other vessels includ-ing two OMI tankers from the United States and at the same time hasbeen selling older vessels.

As Aegean continues to reorganize its fleet it is seeking to expandon the bigger side with the purchase of two 80,000-100,000 tonAframax vessels.

Modernizing the Aegean Fleet


A G E N C Y

Aegean Agency has signed acontract with the NationalGas Company to supply ships

that deliver natural gas in Greece, fur-ther strengthening its position in gen-

eral shipping services and ship chan-delling services in Greece.

Aegean Agency supplies services toships in all Greek ports as well as to shipsthat harbor in the port of Gibraltar.

According to Nick Firippis, AegeanAgency Manager, Agency personnelhave more than 25 years of experienceand provide its customers with highlevel services at competitive prices.The group has managed to increasethe number of ships it supplies everyyear. Aegean Agency offers servicesto large shipping companies, bothGreek and foreign, and offers servicesto ships of every size and type such asVLCC, tankers, cargo vessels, reefervessels, OBO, and containers, in load-ing and offloading, fueling, repairs,water supplies, delivery and receipt ofships, and payment transactions.

Since 2002 it has been a member ofthe international organization IN-TERTANKO. Mr. Firppis says thatAegean constantly strives to improvethe quality of services to its customersand at the same time increase its cus-tomer base.

¡ikolaos FirippisDirector of Aegean AgencyNikolaos Firippis has been at Aegean

since 1996 and is Director of Aegean

Agency. He a graduate of the London

School of Foreign Trade where he

received his degree in shipping.

Mr. Firippis is an

avid supporter of

Olympiakos

Football Club and,

in addition to

football, enjoys

fishing and the

cinema.

Aegean Agency Signs New Contract

W A S T E T R E A T M E N T


Hellenic Slops S.A. is Greece'stop company that collects,transports, and treats oily

waste waters, sewage, and toxic andhazardous ship-generated wastes, aswell as wastes originating from land-based industrial units. Hellenic Slops,based in Piraeus, has installations inports throughout Greece and is able toservice any region that needs wastemanagement.

According to Managing DirectorPanagiotis Stamatogiannis, the compa-ny treats liquid wastes and residues(slops) from vessels calling at Piraeus,Elefsis, Patras, Corfu, Souda Bay,Alexandroupolis, Igoumenitsa andKavala, as well as other ports and doesso in full compliance of EU legislationas well as according to the standards ofISO 9002 and 14001.

Mr. Stamatogiannis says "We operatea variety of facilities that ensure allwaste is treated promptly and complete-ly. We have dedicated tankers, barges,auxiliary vessels, and tank trucks tocollect residues that are transferred to

state-of-the-art treatment facilities.Hazardous waste is treated with the ut-most concern for safety of personnel andthe environment, and we are fully li-censed to deal in such materials. Upondelivery, we provide a certificate of law-ful handling."

Ship generated waste, such as oilytank washings, fuel residues, and oilybilge waters are transferred to SLOPSX, the company's floating treatmentfacility. Wastewater and sewage istreated in the wastewater biologicaltreatment plant.

The SLOPS X has a total storagecapacity of 52,000m3 and can processup to 700m3 per hour, including heavyviscous liquids. The SLOPS X also hastank cleaning services on board and afully-equipped oil spill combatingstation with oil containment booms,skimming systems, oil sorbents andabsorbents.

In addition to servicing vessels at sea,Hellenic Slops handles waste at landunits for the Public Power Corporation(DEH), Skaramangas Shipyards, Elefsis

Shipyards, Syros Shipyards, CronosGlassworks, and Coca-Cola and othercompanies and organizations.

Hel lenic Slops i s a member ofH ELM EPA, EU RO SHOR E, andIAPH.

Good Treatment at Hellenic Slops

Collecting and treating marine and industrial wastes has become one of the major concerns

for the public and private sectors. EU legislation stipulates that waste disposal must be carried

out in accordance with community standards and regulations.

Panagiotis StamatogiannisManaging DirectorPanagiotis Stamatogiannis has beenManaging Director of Hellenic Slops foreight years and coordinates the efforts of all employees to make the companythe frontrunner in the protection ofGreece’s marineenvironment andto provide servicesin harborsthroughout thecountry.

For more Informationcontact Panagiotis Stamatogiannis at

HHeelllleenniicc SSllooppss:: [email protected]/ www.slops.gr


A E G E A N P E O P L E

One of the best sayings we have,"It's never too late," is often atthe heart of success . For

Roula Kakkou, a secretary at Aegeansince 1995, time appears not an ob-stacle, but rather an ally. After the na-tive of Nikea completed her studies atthe Technical Institute of Athens(TEI) with a major in Public Health,she took the rigorous exams for med-ical school. Roula, who is married, hadgiven birth to her first child justmonths before taking the exams. Nev-ertheless, she passed the entrance ex-ams and was accepted to the medicalschool at the University of Patras. "I always wanted to be a doctor, andam determined to complete my med-

ical studies, regardless of any diffi-culties. Since Patras is not very conve-nient for me, I have applied for atransfer to medical school in Athensand hope to begin my studies as soonas possible." Roula would like to studypediatrics and is undeterred by thefour years of study ahead of her. " Ilook forward to attending medicalschool and am very appreciative of thesupport I have received from Aegean.The company has allowed me to beflexible with my work hours so that Icould attend classes and prepare forthe exams." For Roula, making time an ally hasbeen the best strategy for success andone that would serve all of us well.

Making Dreams Come True

Efstratios Panagiotokopoulos,who has been working atAegean's accounting depart-

ment since 2001, in June completed hisfirst year of an MBA program at theUniversity of Piraeus, where he is con-centrating in finance and accounting.Eight hours of work followed by four

hours of classes has been the regularschedule of Efstratios throughout thepast year, a demanding but not un-

pleasant schedule for the 23-year oldAthens native who would eventuallylike to earn a Ph.D. degree.

"Aegean is helping finance a part ofmy studies and that helps a lot. It alsodemonstrates the positive attitude thecompany has toward its young employ-ees and toward education."

Efstratios also has a positive atti-tude toward education. He earned hisBA in economics in 2001 (graduating

3rd in his class) and has received nu-merous scholarships, including one fora semester at the University ofOsuabrueck in Germany. In additionto being a native speaker of Italianand Greek, Efstratios is fluent inEnglish and German. He hopes topursue an MSc in Decision Science atthe Economic University of Athensand hopes his training will lead to asuccessful career at Aegean.

"The supportive and positive envi-ronment at Aegean has helped me de-velop personally and professionally. Iam able to initiate projects and my ideasare received openly, something that hasbeen a valuable experience."

In his "spare" time, Efstratios enjoysbasketball, baseball, swimming, andtraveling.

Determined to be a Doctor

A Studied Approach

"The supportive and positive environment at Aegean hashelped me develop personally and professionally. I amable to initiate projects and my ideas are received openly,something that has been a valuable experience. Aegean ishelping finance a part of my studies and that helps a lot."


Overlooking the bay of Elefsina inLoutro Pyrgos at the 30th kilo-meter of the Athens-Corinth

National Highway, Mr. Tragoumanidis'sAegean "operation" today employs morethan 30 staff—14 at the gas station, 12in the mini market and cafeteria, andfour in the accounting office. Sitting on15 stremmata (5 acres), the "30th Kilo-meter" Aegean, as it is called, is a hive ofactivity, with cars, trucks, and motorcy-cles constantly pulling up to the pumpsas they leave greater Athens for trips toPatras, Sparta, Tripoli, Nafplio, Kalama-ta and all destinations in the Pelopon-nese and western Greece. "On Fridaysand Saturdays, it is amazing to see thenumber of customers who stop at thestation. We have thousands and thou-sands of customers each week. In fact,our station is the largest in Greece interms of volume of gas pumped," saysMr. Tragoumanidis, who has been in thebusiness for 14 years.

The station offers multiple pumpsfor full and efficient service and has a

team of young men that quickly re-spond to the needs of each customer,24-hours a day, seven days a week,365 days a year. Drivers can have anoil change or a car wash and relax inthe large cafeteria/snack bar with hotor cold refreshments including sand-wiches and toasts. The mini market

carries a wide range of necessities andsmall gift items, as well as toys for tots.Mr. Tragoumanidis wife is an activepart of the station management and hisdaughter Toula is becoming generalmanager of all operations. "The busi-ness is our life and we all do our bestto make it the best. All of us workingtogether is a great joy and source ofsatisfaction."

According to Mr. Tragoumanidis,

"Our relationship with Aegean is excel-lent. It is based on friendship, but themost important characteristic of ourbusiness dealings is the mutual respectthat we have for each other. I see that Ja-cob Melissanidis and the entire team atAegean look after our needs and I sup-port the company every way that I can."

Mr. Tragoumanidis has built a top-of-the-line business enterprise but iseager to do more. In September, he willrenovate the entire station so that hiscustomers will enjoy the best possibleservice of any gas station in Greece.Business is always on the increase, andin the future he may build a hotel on theland above the station, offering a uniquecombination of services at the "30thKilometer" Aegean.

"The station offers multiple pumps for full and efficientservice and has a team of young men that quickly respondto the needs of each customer, 24 hours a day, seven daysa week, 365 days a year."

When Dimitris Tragoumanidis began his gas station outside

Elefsina in 1990, it was a small operation with a few

employees. Today, his Aegean station is one of the busiest in

Greece and Mr. Tragoumanidis sees room for more growth.

S TAT I O N O F T H E M O N T H

The "30th Kilometer" Aegean24 hours a day, seven days a week


E U P R E S I D E N C Y

After years of discussions, a so-lution was found that estab-lishes a tax framework in

which minimum rates of tax apply onfuel. The objective of this framework isto save energy and to protect the envi-ronment without creating excessive taxburdens that will affect the competi-tiveness of the industry.

The framework was one of the pri-mary concerns of the economic policypromoted by the Ministry of Financeand Economy in the six-month periodof the Greek presidency, and was pre-sented by Nikos Christodoulakis,Minister of Economy.

Based on the proposed compro-mise, which the Greek presidency putforward and was adopted by the re-maining member countries, the impo-sition of fuel tax will increase gradu-ally over the next few years, so that theincrease in fuel prices does not createproblems in production or consump-tion. Greece has in fact ensured atransitional period until 2010 in orderto adapt to the new plan.

Other issues that the Ministry ofFinance dealt with in the six-monthperiod of the Greek presidency were:

Taxation on Savings Putting into effect the community di-rective on charging tax on depositsthat have "emmigrated" to tax havensin Europe is estimated to yield poten-tially ú300 million of profit annuallyto the Greek economy. The directiveanticipates that all member-states willautomatically exchange information,which will be gathered by the bankinginstitutions where deposits are made,and transmitted to the relevant au-thorities of member states. Owing to

banking confidentiality, Austria, Bel-gium, Luxembourg, and third-worldcountries will put the directive of re-taining taxes (up to 35%) into effectduring the transitional period. Theinvestor’s country of residence will

collect 75% of the income from thistax. The objective of this directive isto crack down on tax evasion and toincrease competitiveness in the moneymarkets of the Union. The solutionwas reached after tough negotiationsbetween the Greek presidency andLuxembourg and Austria, who reactedstrongly to such measures, while simi-lar reactions came from countriesoutside the EU, including Switzerland.

The directive wil l apply from1/1/2005, and Greece and Portugalhave exercised the right to a transitionalperiod of 8 years.

The Eurogroup & Budget PoliciesAfter negotiations lasting severalmonths, an agreement was reached re-garding the need to observe the Stabil-ity Pact, while at the same time flexi-bility (circularly adapted deficit, de-pending on a county's economic situa-tion) was promoted. The agreementanticipates that in periods of an eco-nomic boom, it is the responsibility ofmember-states to create margins intheir budget policy and to follow amore relaxed budgetary policy in peri-ods of a slow-down, without, however,exceeding a deficit of 3%. The need forbudgetary discipline becomes evenmore crucial given the fact that most

Policies The Greek Presidency

The proposal for imposing common taxation in energy

was just one of the economic policy issues that the Greek

presidency was asked to deal with.

¡¡iikkooss CChhrriissttooddoouullaakkiiss || MMiinniisstteerr ooff EEccoonnoommyy


"A small country proved that it is able to guide the EU. I congratulate you because you proved that a six-monthrotation enriches [the EU] and is, in fact, a creativeelement for the Union."

Johannes Voggenhuber, MP, Germany

states of the European Union will facethe problem of increased social securityexpenses due to an ageing population.

Governing Lines in Economic PolicyThe 15 member states decided to giveweight to policies focusing on a morecompetitive, dynamic, and economicinformation base, to boost competitionin the markets of goods and services.The states also decided to emphasizereforms in the job market and to reviewpolicies of the social service systems.

Regional PolicyThe planning and the framework ofthe Fourth Community Support pro-gram were also initiated in the six-month period of the Greek presidency.Greece is expected to collect a signifi-cant part of its funds from this newpackage and the financing will beginin 2007-2008.

Financial MarketsSteps were taken for the faster unifica-tion of European Stock markets. Theeconomic and political uncertainty ofthe last few months highlighted morethan ever the need for a much fasterpace in the unification of Europeancapital markets, so that transparency

of transactions is also improved. An important parameter con-

tributing to unification was the grad-ual application, since 1999, of theAction Plan for Financial Services.

According to recent studies of theEuropean Committee, the procure-ment of financial services is expectedto yield significant profits in all sec-tors of economic activity. In all coun-tries, calculations forecast an increaseof 1.1% in GNP, of 0.5% in employ-ment, of 6% in investments, and of0.8% in private consumption. Busi-ness profits will be generated as muchfrom the reduction of transactioncosts as from financial costs, and alsofrom the increase in the variety of fi-nancial products available.

The History of "Green" TaxDiscussions on charging a "green tax"in member-states of the EU go backmany years. Until today, each countryfollowed its own policy on the issue. Infact, 11 European countries havebeen charging tax to industries thatpollute the environment, in additionto a fuel tax, while in industries thatused ‘clean’ forms of energy, employercontributions and other taxes weredecreased accordingly.

In Greece—where in 1992 the

"tal iro" (five cents) on fuel wascharged in order to contribute to anenvironmental fund—both membersof parliament and major social insti-tutions (such as the National WorkersUnion of Greece) expressed fears ofthe consequences that this measuremight have on the economy. "A mea-sure that can have a very positive im-pact on the environment should notdamage the economy or society," theystressed. Minister Christodoulakis hasalso stated in the past: "Whatever thechanges, they must be supported bycorresponding economic, social andenvironmental parameters."

Experience has shown that thegreen tax in some countries was in-troduced with greater success (as inthe Scandinavian countries and inHolland), whereas in others there weresignificant consequences. In Ger-many, for example, the imposition ofthe green tax in 1999 led to fuel pricedoubling, which significantly affectedpeople with lower incomes.

Among the countries that have im-posed a fuel tax on motorists and tax-es on energy consumption fromsources that affect the environmentare Norway, Finland, Sweden, Den-mark, Spain, United Kingdom, Ger-many, and Italy.

28 AEGEAN NEWS ∞¡√π•∏ 2003

Built for speed and mobility, thetrireme was 37 meters longwith an overall beam of 5.5

meters, had 170 oarsmen in 3 files oneach side (top file 31; middle and bot-tom 27; one man per oar), and wasable to cover 184 nautical miles atabout 7.5 knots.

The vessel had a large square sailthat allowed it to cruise at an estimat-ed maximum of 14 knots in favorableweather conditions. Greece had manynatural harbors, and some were usedexclusively for triremes.

The resources required to build andmaintain a fleet were tremendous. Al-though it would not have fared verywell in open seas because of its design(the bottom row of oars were only 18inches above the waterline), it was veryfast and maneuverable for short, close-in battles. The crew consisted of 203men: 170 oarsmen, 14 spearmen, 4archers, and 25 officers and sailors.

Putting oarsmen over each other wasan ingenious idea. This design featureraises the center of gravity that threat-ens the stability of a very low-draugh-ted ship, while at the same time keep-ing the surface area inside the water ata minimum. In battle, the trireme was

but a stripped-down water-borneprojectile, propelled by human musclepower. The most common engagementtactic by both sides was to get veryclose to the enemy ship and either ramit or brush along side it and snap all theoars off, leaving it disabled and at themercy of the attacking ship.

The trireme's design made it a for-midable ramming device. When not

used in battle, the trireme was used asa cargo ship. For reasons of economy,the number of oarsmen was kept to aminimum, providing more space forthe cargo. When preparing for battle,all unnecessary weight—including thesail—was left ashore.

In 480 BC, after the Persian armyhad conquered most of Greece andthe Greek navy anchored in the Bay ofSalamis was left to determine the fateof the nation. In the famous battle ofSalamis, 1,200 Persian galleys weresent to deal with 450 Greek triremes.During the fierce engagement, morethan 200 Persian ships were lost andmany more captured and the Persianssuffered a terrible defeat.

After the victory of Salamis ,Athens led the Delian League, an al-liance of Greek states created to keepthe Persians out of the Aegean. TheDelian League was later to becomethe mighty Athenian Empire.

In the 5th century BC the Greek navy was one of the most powerful in the Mediterranean,

and the Athenian trireme was one of the most dangerous and effective weapons of its time.

"In battle, the trireme wasbut a stripped-down water-borne projectile, propelledby human muscle power."

The Ancient TriremeNimble Projectile of the Ancient Greek Navy

M A R I T I M E T R A D I T I O N S


F O R U M

Changes in the banking, finance, and insurance industry havebeen dramatic in the previous three years. What are the most im-portant trends to emerge in these industries that have an effecton businesspeople? I would not call the changes in these industries dramatic. In

the last few years, our country, as a member of a united Eu-rope, has taken significant steps in the finance industry, inte-grating into the second largest economy in the world. The eu-ro has become the chosen currency of exchange after the dol-lar by third world countries, countries that for the last 30years kept all their reserves in dollars.

In the banking industry, competition has sparked improve-ment in all services, from those for large enterprises down tosavings accounts and loans. I believe the Greek banking clienthas been deprived of neither products nor services, comparedwith other European citizens.

September 11th had very serious repercussions in the insur-ance industry on a global level and the consequences are evi-dent in the sector's financial figures. I believe that the stormhas passed and now we find ourselves well on the path towardrecovery. After the attacks and the compensation that insur-ance companies paid, people became more aware of the ad-vantages of being insured, which is ultimately a guarantee,despite the necessary increase in premiums.

In the new deregulated economic environment,which sorts of advice do you believe business-people would be best to follow regarding financialplanning and allocation of resources, especiallywith regard to business growth? I believe that after the recent deregulation ofconsumer credit by the Bank of Greece, clientswill show more interest in credit institutionsincreasing the limit of consumer loans. Withregard to business growth, I believe that it isthe right time for expansion, something sup-ported by the latest reduction in interest ratesby the U.S. Federal Reserve. The low cost ofbusiness loans helps to modernize outdatedpremises and to investing in new technology.

What sorts of products exist on the market today that small- andmedium-size businesspeople can take advantage of—productsthat were not available a few years ago? As I mentioned, banks have become more in tune to theirclients' environment, anticipating their needs and offeringtailor-made products.

Investment services, previously unknown, appeared afterthe introduction of the euro. Bankassurance products are alsoconsidered a novelty.

In the loan sector, small, medium, and large enterprisescan chose between loans with fixed or variable repayment pe-riods and interest rates, depending on financial needs andcash flows. Interest rates are based either on the institution’sown basic interest rate on borrowings, or on the interest rateof the European central bank, plus a margin depending onthe credit rating of each client.

How effective has the deregulation process been in the financialmarketplace and what changes or improvements are still neededin your opinion? Deregulation in the finance industry was immediate and, Iwould say, a precondition for our country to join the Euro-zone. In a short period of time, Greece managed to adopt newEU measures.

Many analysts believe that the energy sectorwill play a major role in global growth in thenext decade. Do you believe energy markets willchange dramatically during the next ten years? I believe that your question is of vital im-portance, especially since the war in Iraqput the country back on the energy map,given the amount of oil that Iraq exportsand the large oil reserves that it has. Con-sidering the influence that oil has had onthe international economy and on interna-tional politics over the last 40 years, I be-lieve that energy will be one of the key is-sues that will play a major role and leave amark on each new decade.

An interview with Paul Psomiades, President and CEO

of the Aspis Group of Companies

The Aspis Group

The Aspis Group of Companies

is active in insurance, banking,

investment, and real estate ser-

vices. The Group is a key player in

Greece and is developing a signifi-

cant presence in other European

markets. Aspis has been active for

60 years and bases its continued

success on extensive knowledge

and experience.

Financial ServicesModern and Made-to-Order

30

The main peninsula terminates inthree smaller ones: Kassandra,Sithonia, and Mount Athos, bet-

ter known among Greeks as AghionOros—the Holy Mountain. Halkidiki'slandscape offers a stunning variety: longsandy beaches in Kalamaria, Nikiti,Toroni, and Ierissos; alternating rocksand trees in Sithonia; picturesque smallbays in Vourvourou; and impressive rocksat the Capes of Kassandra, Sithonia andAthos. Halkidiki does not have any rivers,one of the reasons why the sea surround-ing it is one of the clearest in Greece.

Although the superb sandy beachesand aquamarine sea are the primaryattractions for holidaymakers, the regionoffers many more things to see and do.The cave of Petralonas stretches for twokilometers and has impressive stalag-mites and stalagmites. Excavators founda 260,000 year-old human skull in thecave, providing evidence of pre-histori-cal habitation.

Polygyros, the capital of theprefecture, is home of the ar-chaeological museum, which

houses finds from the peninsula’s an-cient sites. It includes artifacts from thesanctuary of Zeus at Aphytis and fromthe ancient city of Akanthos, sites thatare also worth a visit.

Ancient Olynthos dates to the 7thcentury BC, and toward the end of the4th century BC was the capital ofHalkidiki. The mosaics there are theoldest in Europe. In 348 BC, Philip II,King of Macedonia razed the city to theground. Ancient Stageira was the birth-place of Aristotle, the most renownedphilosopher of antiquity and tutor ofAlexander the Great. The remains ofthe ancient city and its fortifications canstill be admired.

The famed peninsula of MountAthos, home to 20 monasteries and1,700 monks, is a semi-autonomousstate. It is shielded from modern civi-lization and technology, and offers aplace of recluse and prayer to maletravellers and pilgrims.

Throughout the region, pic-turesque towns with Macedon-

ian or monastic architecture

buzz with activity. Visitors can find artsand crafts on sale, authentic tavernas,and warm hospitable people. Halkidikihas 12 thermal springs, two of which arerecognized by the state for their thera-peutic properties.

Luxury hotel complexes such as PortoKarras, which hosted the EU summitmeeting in June, 2003, offer casinos,horseback riding, golf, tennis, and wa-tersport facilities, where one can swim,canoe, scuba-dive, and fish off thecoast. Towns such as Arnaia, nestled onforest-covered mountain slopes, are analternative to the coast, where visitorsencounter rustic architecture, storesselling handmade crafts, and friendlyBed and Breakfast accommodations.

For ªore InformationCentral administration (Polygyros)

www.halkidiki.gov.gr

23710 23192, 23710 39265

Halkidiki Hotels Association

www.halkidiki-hotels.gr

e-mail: [email protected]

2310 429 020, 2310 429 022

Halkidiki, a three-fingered peninsula located roughly in the center of Macedonia, juts deeply

into the Aegean Sea, creating the longest stretch of coastline, estimated to be more than 500

kilometers long, in mainland Greece.

T R A V E L

AEGEAN NEWS SUMMER 2003

HalkidikiForests and Seas Meet Under the Mediterranean Sun

Aegean is proud of the contemporary image of its petrol

stations. Station personnel enhance the "Aegean Look"

through clothing and products that reflect a commitment

to quality and customer service.

A look that says

“We ‘re different”

T H E A E G E A N I M A G E


AegeanAEGEAN is a diverse group of companies active in the energy and ship-

ping industries and is committed to providing its clients with the best

products, services, and solutions to meet their needs. The AEGEAN

group markets fuels and lubricants in the bunkering and retail sec-

tors, is a leader in top-quality bunkering services, provides

marine transport through its fleet of 26 tankers, and of-

fers 24/7 shipping services to trusted clients through-

out the world.

SERVICE AND PRICEFounded in 1990 by Dimitris Melissanidis, the

company's Chairman, AEGEAN is committed to

providing its customers with unmatched ser-

vices at the most competitive prices. It has grown

in just over a decade into a dynamic force in the

industry and from its headquarters in Piraeus,

Greece AEGEAN directs its domestic and interna-

tional operations. The company is privately held and

100% Greek owned.

A DYNAMIC GROWTH STRATEGYThrough a strategy of responding to market needs,

AEGEAN has successfully grown to be an industry

leader that is committed to excellence in customer

satisfaction, environmental awareness, and over-

all quality. The company is ISO 9002 accredit-

ed, its ships meet ISM standards, and AEGEAN's

bunkering operations are on the FOBAS White

List. AEGEAN employs more than 1,000 profes-

sionals who are the foundation of the company's

success. In 2002, turnover reached $1.5 billion. In

addition to its headquarters in Piraeus, the company has

offices in Thessaloniki, Greece and an international pres-

ence in the United Arab Emirates, Venezuela, Russia, Bulgaria,

Gibraltar, and the United States.

FULLY-EQIUPPED FACILITIESAEGEAN has two fully equipped depots to handle its fuel needs. The

depot in Alexandroupolis serves clients and customers in northern

Greece and southeast Europe. The company's depot in Aspropyrgos

serves southern Greece and the important port of Piraeus.

www.aegeanoil.gr

aegean news€¦ · summer 2003aegean news3 8 pantelis kapros, chairman of rae, discusses current...

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