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NEWBUILDINGS

NEWSLETTER JUNE 2016

NEWS FROM FORUM OKRĘTOWE MEMBER COMPANIES

Double naming ceremony for Salish ferries at Remontowa ShipbuildingOn Thursday, the 3rd of June 2016, the official nam-ing ceremony of the further two intermediate class ferries under construction for BC Ferries took place at the Remontowa Shipbuilding yard, member of Remontowa Holding.Michelle Le Tourneau i Mrs. Jodi Gaudet, the God-mothers of the ferries smashed champagne bottles against the hulls of Salish Eagle and Salish Raven as the vessels marked another step toward their entry into the BC Ferries fleet.– It’s another very exciting milestone as we get closer to bringing these three Salish-class vessels into ser-vice - said Mark Wilson, BC Ferries vice-president, engineering.It’s worth recalling that the ceremony for the first Salish class vessel at the yard in Gdansk, Poland was held on November 24, 2015. The Salish Orca is in an advanced stage of outfitting.

– They are new intermediate class of ferries, that we plan to build more than just three of these - Mike Cor-rigan emphasizes. – They are going to be dual fuel which is important because it reduces our environmental footprint by over 50 percent and also potentially the cost of fuel for over fifty percent which has a huge im-pact on keeping fares down as well as making sure we have a clean environment as possible - he admits.The use of LNG will result in the reduction of an estimated 9,000 metric tonnes of carbon dioxide equivalent per year, the same as taking 1,900 passenger vehicles off the road annually, because natural gas is cleaner burning than traditional marine diesel fuel. The new ships will run on LNG as much as possible, almost com-pletely eliminating SOx (sulphur oxides), reducing NOx (nitrogen oxides) to a fraction of what we see from diesel fuel and nearly eliminating particulate matter.

From left to right: Piotr Soyka - president, Remontowa Holding SA; An-drzej Wojtkiewicz - president, Remontowa Shipbuilding SA; Godmothers (sponsors) of the ferries: Michelle Le Tourneau and Jodi Gaudet and Mike Corrigan CEO, BC Ferries.Photo: Piotr B. Stareńczak

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The ferries will operate every day, 365 days a year, serving the area between Victoria and Vancouver through the southern Gulf Islands providing essential service for the people living on those Islands.They measure approximately 107 metres and can carry 145 vehicles and up to 600 passengers and crew. The vessels will be constructed for a service life of approximately 40 years.The vessels, which will be the first in BC Ferries’ fleet to run on natural gas, are on budget and on schedule to begin service by summer 2017.

The video report from the christening ceremony of Salish Eagle and Salish Raven is available at: https://youtu.be/n-sm9e5Eqjk

SHIPREPAIRS AND CONVERSIONS

Installation of offshore cranes onboard Hanne Knutsen under conversionIn June, at Remontowa Shiprepair Yard, besides re-pair works underway on several vessels, spectacular transports took place as well. They involved floating cranes usage and were related to conversion of shut-tle tanker Hanne Knutsen into FSO in Martin Linge project. First onboard heavy-load deck cargo carrier Meri FTS was brought, i.e. main piece of equipment responsi-ble for transfer of produced oil to what is now named Hanne Knutsen. Within a few weeks the FTS will be placed onboard, in a special compartment built in the structure of the fore part of the vessel.Later a complex installation operation was carried out, using floating cranes REM 220 and Maja. Their task was to transport and install an offshore crane on a ship under conversion. The 120-tonne offshore crane jib assembled with slewing post was suspend-

ed under the jibs of floating cranes in a way facilitating the safety of transfer and ensuring best conditions for installation, i.e. placing the crane slewing post on a foundation. The crane was fastened in foundation with 108 screws. There will be more similar transport and installations. Soon, a helideck will be installed onboard, followed by further five deck cranes.Let us recall, the Hanne Knutsen called at Remontowa SA on September 30, 2015, but already prior to that date prefabrication of new structures to be installed on a future FSO had commenced.Remontowa SA converts tanker to the role of storing and initial processing of crude oil taken from produc-tion platforms. The unit will be able to stay on Martin Linge offshore field for as many as 12 years without the need for docking. Typical repair and maintenance works have already been completed on Hanne Knutsen, and conversions works are underway only. The conversion, among others, will involve installation of 35 kilometers of new piping.

The 120-tonne offshore crane during transport for installation onboard Hanne Knutsen.Photo: Jerzy Uklejewski

Gantry crane OHBC converted into self-unloading bulk carrier at VistalAnother ship has recently been converted into a self-unloading bulk carrier for SMT. The has ship arrived to Gdynia as Point Lisas Pearl. It has been converted into a self-unloading vessel at Wegierskie quay by Vistal Stocznia Remontowa / Vistal Marine Sp. z o.o. Prior to conversion, the vessel has undergone repairs and hull maintenance at Nauta shiprepair yard. Meanwhile, the ship has been renamed Bontrup Pearl.

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OFFSHORE

The owner is SMT Shipping, the Polish division of which is responsible for crewing and technical man-agement of the SMT fleet. After completion of the conversion the ship headed to Bremanger in Norway, where the export terminal for Bremanger Quarry AS is placed, for its first cargo of aggregates.Conversion of a wide-hatch bulkcarrier or OHBC (open hatch bulk carrier) also described as forest products carrier, formally (in class notation) classed as a general cargo vessel into a self-unloading vessel was designed in-house by SMT Shipping and exe-cuted by Vistal under supervision of Gdynia office of Bureau Veritas. The conversion has been carried out in a record time of just two and a half months.The ship has been fitted with internal conveyor sys-tem - the belt system, vertical cargo conveyor belt

tower - the loop system, and 83 m long discharging boom, allowing to dump the cargo on a quayside, at over 70 m distance from the ship’s side. The works commisioned at Vistal covered modifications to seven holds, while total weight of newly added steel structures amounted to 660 t plus 150 t in equipment items installed. After conversion, Bontrup Pearl offers discharge rate of 3500 t/h.The upgrade of the vessel enabled the owner, to sign a long-term agreement with Dutch client, regarding the transport of aggregates in Northern Europe.It has been already the 15th conversion of a ship performed for SMT in Polish yards.Bontrup Pearl - principal characteristics: IMO no. 5913315, registered owner Bontrup Pearl Ltd., manag-ing owner SMT Shipmanagement & Transport Gdynia Ltd. Sp. z o.o., building yard Sanoyasu Corporation, Mizushima, Japonia (newbuilding no. 1060), year of build 1984 (as Auk Arrow), conversion yard Vistal, Gdynia; LOA 187.50 m, LBP 180.85 m, max beam 29.04 m, moulded beam 29.01 m, depth 16.90 m, draft 12.306 m, deadweight 42 000 t (43 952 t according to other source), GT 27 962 t, NT 12 660 t, main engine 1 × 6RTA58 Sulzer, gen-sets 3 × T260L-ST Yanmar, emergency gen-set BF6L913C Deutz, bow thruster TC-200N, Vickers.

Bontrup Pearl - departing the port of Gdynia on June 14, 2016.Photo: Piotr B. Stareńczak

Another offshore fabrication project commenced at VistalVistal Gdynia SA has recently commenced work on its new project: construction and delivery of com-pletely fabricated (in one piece), painted and partly outfitted helideck. The helicopter deck is designed for new accommodation module being built by Ap-ply Emtunga in Sweden. After fabrication, the heli-copter deck will be transported to Apply Emtunga fa-cilities and installed on the accommodation module. Finally, the integrated single unit accommodation module will be transported to Trinidad & Tobago and installed on existing steel jacket type fixed offshore platform Mahogany B, owned by BP Trinidad and Tobago LLC.Vistal contract for helideck follows the mid Octo-ber 2015 announced EPC contract awarded by BP to Apply LQ & HD. The project includes delivery of an integrated single unit living quarters module to be

installed on existing platform Mahogany B. The contract is for delivery of a new 3 level living quarters with

Visualization of the Vistal / Emtunga helideck for Mahogany B platform in Trinidad and Tobago.Fig.: Vistal

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a total area of 1080 m² and a capacity of 70 POB. The living quarters includes helideck (to be supplied by Vistal), offices, galley, dining area, recreation areas, change rooms, central control room (CCR) and other facilities required for operations on the platform. The Module will be built in structural steel for offshore single lift installation. Delivery of the whole accommodation module is from Sweden first quarter of 2017.The supply of the new accommodation module is part of the Mahogany B platform upgrade in “debottle-necking” of the production facilities. Debottlenecking is the process of increasing the production capacity of an existing facility through the modi fication of existing equipment to remove restrictions hindering the flow of oil and gas.

OFFSHORE

MISCELLANEOUS

In Oslo not only on electric ferries...On May 24, 2016, at Oslo Hoyres Hus conference centre, Polish-Norwegian Economic Forum was held, discussing the opportunities for strengthening the co-operation ties between the two countries, also in the area of shipbuilding industry.The event was inaugurated by the president of the Republic of Poland, Andrzej Duda, who, accompa-nied by his wife, was paying an official visit to Nor-way during 22-25 May.The Forum was attended by representatives of Polish government, as well as shipbuilding, weapons manu-facturing and energy industries. Among topics discussed there has been the possible construction of a new gas pipeline, supposed to trans-port gas from Norwegian offshore fields, through Danish pipeline system on the Baltic (Baltic Pipe) to

Poland. The crisis and the future of the offshore sector has been discussed as well. Because of dropping oil prices, Norwegian upstream sector, along with associated industries, is undergoing a significant restructur-isation. Many of planned investments have been halted in this sector, including offshore fleet newbuilding projects.On the other hand, current crisis, resulting in less ships being ordered from yards, contributed to downward newbuilding prices trend. This in turn enables smaller owners, also Norwegian ones, to invest in smaller ships, including hybrid propulsion ferries or fishing vessels. Norwegians count on deepening the cooperation with Polish companies, including yards, also in regard to construction of innovative ferries, especially electrically driven. They would also welcome cooperation with Polish entities in the area of R&D for new, clean, marine technology, as well as in development and imple-mentation of joint projects in this sector.The Forum was attended by numerous representatives of Forum Okrętowe member companies. The organiz-ers of the event were: Polish Embassy in Oslo (Trade and Investment Promotion Section), Polish Ministry of Development, Innovation Norway and Norwegian-Polish Chamber of Commerce. The media partner for the event was PortalMorski.pl.

The video report on the event is available at: http://www.portalmorski.pl/tv/flmy/forum-polsko-norweskie-w-oslo/

The Forum was attended by numerous companies associated in Forum Okrętowe.Photo: Grzegorz Landowski

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General Assembly of SEA Europe in Gdansk

On 16-18 June 2016 in Gdansk the General Assembly of the organization SEA Europe was held. Delegates from 17 member countries together with their accompanying persons arrived in the city on the Motława riv-er to discuss the current situation in the global shipbuilding industry, with particular emphasis on industries operating in the member states of SEA Europe. In addition to meeting in working groups (SRMC), at the Hotel Gdańsk, participants and guests of the Assembly General also attended a rich program of accompanying events, including: tour of the European Centre of “Solidarity”, Oliwa Cathedral with organ concert, exhibition “Ships - our passion” at the Centre for Maritime Culture of the National Maritime Museum, the Sołdek museum ship, as well as a boat tour on the Motlawa river (during which the delegates had the opportunity to test their talents while singing famous songs with the help of a song-book specially prepared for the occasion), as well as a trip to the Kaszuby lake district. Guests also took part in the Gala Dinner preceded by a concert of Mocarta group. The organizer of the General Assembly was The Forum Okrętowe Association of Polish Maritime Industries in cooperation with the TEMAT Ltd., the publisher of PortalMorski.pl and professional maritime magazines..

SeaEurope delegates with accompanying persons in front of National Maritime Museum.Photo: Sven Gustaffson

Forum Okrętowe report 2015Owing to commitment and cooperation from Forum Okrętowe members, data has been collected, relating to sales and employment in the year 2015. The manager of the Forum Okrętowe office would like take this opportunity to express his thanks to everyone involved. The data collection covered all Forum Okrętowe members, including associate members as regards the em-ployment figures of maritime sector. On the basis of this information, along with other available sources, value of the whole Polish shipbuilding and ship repair sector was projected and estimated for 2015.

Overall dataset related to Forum Okrętowe members:- total sales value of all regular members of Forum Okrętowe is estimated at PLN 5690 m, of which PLN 4684 m is shipyard sector’s share;The following four categories of sales were deined:- newbuildings, - ship repairs and conversions,- ship and offshore structures design and R&D,- systems, equipment and services supplies.

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In total, the number of permanent jobs at Forum Okrętowe was slightly over 10 thousand: at least 679 at as-sociate members in maritime industry related divisions and 9346 at regular members, including almost 7300 persons are directly employed in shipyard sector. The survey included only the permanent job employment contracts and data on employment in other forms was not collected.

The total income of shipyard sector in Poland in 2015 is estimated at (according to own information and own estimation methodology) approximately PLN 11 028 million, including: the sales of newbuilding yards - some PLN 2070 m, repair yards and repair and newbuilding yards - approx. PLN 1947 m, companies sup-plying services and manufacturing equipment and systems - approx. PLN 7012 m.

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Information on fully equipped ships (with gross tonnage of 100 and over) delivered in 2015 (own information, conceived in cooperation with Portal Morski)

Ship type (GT of 100 and over)

Number of ships

Gross tonnage (GT)

Compensated gross tonnage (CGT)

general cargo vessels 2 5957 8815ro-ro vessels 1 5478 9025

fishing vessels 1 392 1665other non cargo carrying vessels 3 7035 14 059

TOTAL 7 18 862 33 564

KUKE supports purchase of a ship worth over PLN 200 millionAs announced early June, within its activity backed by the State Treasury, KUKE supported financing the purchase of modern, multi-purpose vessel by a Canadian shipowner. The vessel was built by the shipyard Remontowa Shipbuilding SA. This is consecutive example of KUKE’s commitment to the development of the Polish shipbuilding industry.„Remontowa is a shipyard with a long tradition, offering comprehensive technical solutions and quality known and respected around the world. This was the basis for the decision to order the ship from the Ship-yard. Also, the availability of long-term loan to the foreign buyer of the ship was an additional element which secured the decision. In turn, granting of such a loan to the buyer would not be possible without the partici-pation of KUKE, the Polish export credit agency”, said Marek Czerski, President of KUKE.This is a consecutive ship constructed by Remontowa Shipbuilding, whose purchase is financed through the buyer credit scheme insured by KUKE within the State Treasury backed activity. This time the insurance coverage relates to a loan to purchase a new vessel built under the contract signed by the shipyard with the Canadian shipowner - Secunda Canada, cooperating with one of the existing Norwegian clients of Remon-towa - Siem Offshore.Avalon Sea a multi-purpose offshore vessel (AHTS) designed to support offshore drilling in harsh Arctic conditions. The ship has been handed over for operation of ExxonMobil - one of the largest oil companies of the world - and serves supporting oil and gas fields offshore in the region of Labrador and Newfoundland. The task of the ship is primarily to monitor and control the status of freezing, and if necessary, appropriate correction of the exchange rate moving icebergs, thereby protecting the marine mining installations against possible collision with the „wandering” iceberg. Avalon Sea has also been used to transport a variety of car-go, to assist the ancorage of other units, to operate as an emergency tug, to transport staff on the platform, for eliminating the effects of oil spills and to protect the anti-fire and evacuation crews.KUKE secured the repayment of 12-year buyer credit granted by ABN AMRO Bank NV directly to the Ca-nadian shipowner. Insurance of a credit provided by the bank to a shipowner for purchase of a ship in Poland is an example of an instrument, which in addition to the traditional guarantee is also an important element of

KUKE’s support for the Polish shipbuilding industry.From 2003 to 2016 KUKE has covered 32 credits for a total sum of EUR 1,6 billion for financing 50 ships constructed in Polish shipyards. These types of credits are characterized by long repayment periods, usually spanning 10-12 years.

Letter of intent concerning possible construction of ferries for PolferriesOn Thursday, June 9, 2016, in a political show off (backing Polish government shipbuilding industry revival program), in presence of Polish prime minister Beata Szydlo, during the “International Maritime Congress” held in Szczecin, a letter of intent was signed by Polska Zegluga Baltycka (Polish Baltic Shipping Co. - Polf-erries), Fund of Development and PKO Bank Polski bank concerning the possible construction of two ro-pax ferries. The other parties involved, according to Szczecin local media, are “Remontowa yard from Gdansk, Nauta of Gdynia and Szczecin based Gryfia, as well as Szczecin Industrial Park operating on the premises of the former Szczecin Shipyard”.No further details are available and what is known was not possible to be confirmed at yards and Polferries yet. It is also yet not clear whether there would be a consortium of yards formed or any other mode of co-op-eration applied.According to other media reports, the cost per ship would be “more than EUR 100 m” or “PLN 440 m”.According to deputy minister for Maritime Economy and Inland Waterways, Pawel Brzezicki, quoted by local Szczecin media, the ferries will be “revolutionary” - the largest to be deployed on these routes (Poland to Southern Sweden) so far, will feature ro-ro lane length of “approximately 3000 m”, and will be dual fu-elled. They would be 224 m long. There will be an option of ordering the ferry with the railway tracks (so as it could be a car, passenger and railway ferry).The earliest possible date of delivery would be mid 2019 according to Brzezicki.

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The next - double - issue of the newsletter will be published at the end of August 2016.