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APRIL 2012 www.tankeroperator.com

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April 2012 � TANKEROperator 01

ContentsMarketsMoving sideways

ProfileThome’s Steffen Tunge

Middle East Report� Fujairah the new hub� Shiprepair giants square up� Owners hit by VLCC carnage

Classification Societies� IACS addresses CSR harmonisation� Russian Register progress� DNV’s Fuel saving guidelines � GL’s Greek meeting� LR’s ECA calculator

Piracy� Piracy down -ransoms up� West African problems escalate

Technology37 Asphalt/products tanker

Front cover Leading Bahrain-based shiprepairer ASRY has started the year well by handling three VLCCs. The company said that thus far,2012 had mirrored 2011 in that the yard has seen the return of the large tanker. Last year ASRY handled 13 VLCCs out of atotal of 52 tankers, which visited the yard in the 12-month period.

37

11

38 Ballast Water Treatment� Systems commissioned

41 Bilge Water Treatment� Alfa Laval claims breakthrough

43 Bunker Operations� FOBAS spells it out� P&I viewpoint� IBIA’s convention

48 Luboils� One fits all not the answer

50 Manning & Training� Competency manager tool� Germans sign ECDIS agreements� DNV approves Kongsberg� Admiralty to sponsor training

55 Tank Services� IPTA looks at IBC Code

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06

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TANKEROperator � April 20122

COMMENT

Have we learnt anything from theTitanic?

TANKEROperatorVol 11 No 5Tanker Operator Magazine Ltd2nd Floor, 8 Baltic Street EastLondon EC1Y 0UP, UK www.tankeroperator.com

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I was wondering how on earth I could get areference to the 100th anniversary of the sinking ofthe Titanic in Tanker Operator and then thoseinsurance boys and girls at Allianz answered myprayers.Allianz (AGCS) has come up with a report highlighting new shippingrisks and although it has greatly improved since 1912, key challengesstill remain, the insurer said.

It should be remembered that the sinking of the Titanic and thesubsequent enquiry spawned SOLAS - as major shipping disasters tendto spur the regulators into action – Exxon Valdez, Erika and Prestigebeing prime illustrations of this. In addition, the 1987 Herald of FreeEnterprise disaster helped to produce the ISM Code.

Down the years, apart from the two World Wars and the Iran/IraqWar, shipping losses have dramatically reduced, despite the world’sfleet trebling in numbers. However, Allianz said that the increase invessel sizes, not particularly applicable to tankers here, the ‘humanerror’ factor and Arctic navigation were the next hurdles to beovercome.

Since 1912, the world’s commercial shipping fleet has trebled to over100,000 vessels (actual figures may vary, according to the criteria), yetoverall shipping loss rates have declined from one ship per 100 per yearin 1912 to one ship per 670 per year in 2009.

While factors such as new technologies and regulations havetremendously improved marine safety, new risks have emerged.

AGCS’s comprehensive report, ‘Safety and Shipping 1912-2012:From Titanic to Costa Concordia’, based on research from CardiffUniversity’s Seafarers’ International Research Centre (SIRC), highlightsseveral key challenges for the industry including the growing trend to‘super size’ ships and cost pressures pushing shipowners to sourcecrews from emerging economies where standards of training andassessment can be inconsistent.

Other significant safety risks include reduced crewing numbers,which may compromise margins of safety and encourage ‘human error’risks; increasing bureaucracy on board ships; the continued threat ofpiracy off Somalia and elsewhere; and the emergence of ice shippingand its associated navigational and environmental complications.

Commenting on the findings of the report, Dr Sven Gerhard, AGCS’sglobal product leader hull & marine liabilities, said: “While the seas aresafer than ever today, the industry needs to address these new risks

proactively. For example, ultra-large ships pose challenges for insurersdue to their sheer size and value, while others raise concerns onstructural integrity and failure.

“While scale alone does not make these ships riskier, the increasedsizes introduce specific risks that need to be addressed, such as salvageand recovery considerations and emergency handling,” he warned.

Although the days of the ULCC appear over, the largest moderncontainerships under construction are so big that there is space belowdeck for a basketball court, a full-sized American football stadium anda spectator-filled ice hockey arena. Ships of this size raise questions ofadequate loss coverage in the event of an incident and of potentialstructural limitations, said AGCS.

Human error – the weakest linkThe report also highlights the continued challenge of human error in

maritime operations – a factor which remains critical despite 100 yearsof technological and regulatory improvements in safety.

Over 75% of marine losses can be attributed to a wide range of‘human error’ factors, including fatigue, inadequate risk managementand competitive pressures, as well as potential deficiencies in trainingand crewing levels.

Dr Gerhard explained: “As technological improvements reduce risk,so does the weakest link in the system – the human factor – becomemore important. This is where the industry should focus most closely,so that best practice risk management and a culture of safety becomessecond nature across the world fleet.”

While technologies such as Radar, or Global Positioning Systems(GPS) have driven improved safety, it has often been major accidentsthat have been the catalysts for key changes.

“Historically, high profile shipping disasters have led toimprovements in marine safety. And Costa Concordia is certain to beno different, whatever the result of the official investigations into thiscause will be,” said Dr Gerhard.

AGCS’ research boffins have come up with a list of key facts andfigures taking in the 100 years since an iceberg inadvertently changedmaritime history forever. � Since 1910, world fleet tonnage has increased by a factor of 23 and

has now approached one billion gross tonnes (2010 figures).� World seaborne trade has trebled since 1970 to over 8.4 bill tonnes

of cargo loaded per annum.

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COMMENT


� Professional seafarer fatality rates have fallen in many countries: for example, in the UK, in 1919 it was estimated that there would be 358 fatal accidents for every 100,000 seafarer years spent ‘at risk’ – a rate which had fallen to 11 by the period 1996-2005. However, this fatality rate is still 12 times higher than in the general workforce.

� Accident ‘black spots’ include South China,Indo-China, Indonesia and Philippines with

17% of total losses in 2001-2011, followed by East Mediterranean and Black Sea (13%), and Japan, Korea and North China (12%). The seas around the UK also show relatively high loss concentrations (8%).

� Technical innovations over the last 100 years include improved construction techniques, echo-sounding, Radar, Very High Frequency (VHF) radios, Automatic Radar Plotting Aid (ARPAs), satellite communications, GPS positioning finding,

and Electronic Chart Display and Information Systems (ECDIS – all of which have supported marine safety.

I have deliberately deleted reference topassenger vessels with apology to AGCS.However, the cost in both human andmonetary terms of a chemical tankerploughing into a 200,000 gt cruise vesseldoesn’t bear thinking about, let alone what the final total of the Costa Concordia sinkingwill be. �

For all those who find theshipping language baffling withits range of acronyms made upfor virtually anything, help is athand.In an attempt to explain the complexity of theindustry’s terminology in simple terms,Braemar, Incorporating the SalvageAssociation, surveying and technicalconsultancy arm, as the company likes to becalled, has published a second edition of itsGuide to Hull & Machinery.

For anyone baffled by jargon, the shippingindustry isn’t the best choice of workplace,Braemar acknowledged, a statement withwhich Tanker Operator’s Editor fully concurs.

Although primarily aimed at the marineinsurance industry, whose claims people haveto wade through piles of incident reportspacked with jargon, the book will be agodsend to anybody just starting out in theindustry.

It is essentially a reference book coveringsome of the common terminology used forships, their engines and related operations,which is often encountered in survey reports.

The first version of the Guide to Hull &

Machinery, released last year, was met withsuch enthusiasm by the marine insurancemarket that Braemar have now produced anew enhanced version, the company said.

Marine survey reports frequently containnautical and engineering technology, whichcan often be unfamiliar. Braemar drew onmaterial from 24 authoritative sources toproduce more than 70 pages of diagrams andexplanations of terms relating to the keyfunctions of ships and clear illustrations ofship components, which often figure ininsurance claims.

The Guide to Hull and Machinery has beenwelcomed by the industry. “This is a uniquesource of reference,” said John Hutley, vicepresident, P&C Claims, Swiss Re Services. “It will not only give support to theestablished claims professionals but also, withits considerable depth of information, to thosewho are new to the business.”

This second edition of the guide has beenupdated in response to feedback from themarine insurance market and includesadditional data, such as explanations on grossand net register tonnages, subdivision and load line, deck mooring fittings and lifting

appliances, while some useful guide formulasare included on selection of wires andsynthetic ropes.

In the machinery section, data can be foundon gear boxes, fuel and lube oil systems,purifiers and transmission systems, while thesheer scale of marine engines in comparison to a human body can now be appreciated onthe section of typical propulsion engines.

Dino Levantis, Braemar’s business directorfor the Mediterranean and Eastern Europeregion is the lead author of the publication.“The intention has been to keep it simple,” heexplained. “Targeted at experienced marineprofessionals and newcomers alike, it is notintended as an unwieldy dictionary ofterminology but as a quick reference tool with easily understood illustrations that covers the essentials in a user friendly way.”

Much of the book taken up with technicalexplanations on the left hand page with theright hand page left blank for note taking.

The guide is available in hard copy, or pdfformat and is free of charge to those workingin the marine claims and insurance industry, but will be a useful tool for othersectors of maritime life. �

Help – somebody get me a dictionary!



INDUSTRY – MARKETS

Are we on therebound?

As the first quarter of this year is consigned to history, it is clear that the tumultuoussituation seen 2011 was not a one-off.

Tensions between Iran and the Westare supporting rising oil prices andhave the potential to furtherdestabilise an already shaky

economy. Meanwhile, developments in Syria,Yemen and Sudan are also limiting oilsupplies, reported McQuilling Services in the‘Short Term Outlook’ report.

There have been some positive indicatorsout of the US, but other regional economiesremain under pressure. The debt crisis inEurope continues to cast a cloud over thecontinent and recently, the European Union’s(EU) statistics office released data confirmingGDP contracted by 0.3% in Q4 2011.

Compounding concerns, China’s officialeconomic growth target of 7.5% for 2012indicates that even the dragon economy maynot be formidable enough to halt the slide.

Against this background, the tanker markethas performed reasonably well and has evenslightly outperformed McQuilling’s Januaryforecast. Despite this development, the tankermarket will continue to be pressured byovercapacity and the currently high bunkerprices.

Liftings out of the Arab Gulf have comeunder some pressure from a more narrowspread between Dated Brent and Dubai thathas made West African grades comparativelycheaper.

During the January-for-February 60-daycycle, used by McQuilling to track fixtures,

spot charters increased strongly inthe middle of February, breachingthe upper threshold of the five yearrange for the first time during thisperiod, indeed since the May-for-June cycle in 2008.

This helped support rates, butafter gaining too much momentum,charterers pulled out of the marketand rates retreated. The February-for-March cycle has closelyfollowed the five-year average andthere has been much less activitybetween the middle and end of the fixingmonth.

The reduced fixing activity in this cycle hasalso likely been influenced by the rising priceof crude, which has been strongly influencedby sanctions surrounding Iran. These sanctionshave basically eliminated owner’s ability toacquire shipping insurance for Iranian liftings,as importing nations look for alternativesupply sources.

Suezmax fixtures were down sharply duringFebruary, but remained slightly above theprevious years’ levels. Fixtures from WestAfrica to the US Atlantic Coast wereunchanged at seven, but with Sunoco’sPhiladelphia refinery due for closure in July,an upward shift is unlikely.

Although supply security is a permanentissue in West Africa, a new crude stream fromthe Usan field off Nigeria’s coast is expected

to add 180,000 barrels per day into themarket by the end of 2012. In NorthAfrica, China recently inked a deal toimport 140,000 barrels per day ofcrude from Libya.

Following last year’s civil war,Libya’s oil production has steadilyrebounded and was reported at 1.4mill barrels per day in February.

In the Middle East, after severalweather related delays, the first of foursingle point moorings (SPM) isreportedly ready to begin operations atIraq’s southern port of Basrah. TheSPM has a capacity of 850,000 barrelsper day and is expected to initially

increase Basrah’s export capacity by 400,000barrels per day once operational, according toPlatts.

In the clean tanker market, with theexception of the LR2s, activity declined. Thedownturn was likely influenced by relativelyhigh levels of refinery maintenance. The mostnotable of these, McQuilling said was the290,000 barrels per day central distillationunit at India’s Jamnagar complex that wasoffline for three weeks for a plannedturnaround.

However, reduced US refinery throughputon the East coast and tight pipeline capacitycombined with the looming start of the drivingseason should allow activity to rebound in thenear-term.

MR2 fixtures recorded the steepest declinebut still remain above year ago levels. Thedrop in MR activity was influenced by theclosure of the St. Croix refinery in theCaribbean.

The expectation of continued deliveriesfrom previous orderbooks continues to limitimprovement in market sentiment. To date,McQuilling anticipated that 17% of itsforecasted deliveries and exits would havetranspired.

Market balancedAt the end of February, 27 tankers had beendelivered and 22 were sent to the breakers.This represented 12% of the consultancy’syear-to-date expected deliveries and 30% ofthe forecasted exits. As a result, at this pointin the year (mid-March), market fundamentalsSource - McQuilling Services.

* See page 7. Source - Gibson Research.

US products imports and exports*


April 2012 � TANKEROperator

are more balanced than had initially been anticipated. The exit profile of Suezmaxes has been robust with seven deletions

versus a forecast of four. All of the tankers sent to the breakers havebeen between 22 and 24 years old, highlighting the pressure owners ofolder tonnage are under.

With the exception of Panamaxes, delivery profiles have generallybeen below expectations. McQuilling expected a total of threePanamaxes to enter the trading fleet this year and to date two have beendelivered. The Nave Estella and SCF Progress were delivered to Naviosand Sovcomflot respectively from South Korean shipyards.

Looking forward, McQuilling expected rates to move sideways in thecoming months, as economic concerns will reign in demand and vesselsupply will continue to remain ample. The start of the US drivingseason should provide some support for clean tanker rates in theAtlantic Basin but demand may be capped by rising pump prices.

Despite high OPEC production levels as the producers group aims tolimit the impact of global supply concerns, crude and residual tankerdemand could be negatively impacted, if any other pressures occur.

Resilient MRsPerhaps, one of the clearest examples of the recent major changes in thetanker sector was the shift in trading patterns in the Atlantic Basin MRmarket.

The gasoline flow from Europe to the US has traditionally been thedominant route for MRs in the West.

However, the economic turbulence coupled with high oil prices hastranslated into a reduction in US gasoline requirements in recent years,with total gasoline imports down by 0.35 mill barrels per day from peaklevels in 2007 to 0.81 mill barrels per day last year, reported GibsonResearch in a report.

Imports have been even more sluggish over the past few months,averaging just 0.66 mill barrels per day since the beginning of 2012.

However, these bearish developments have not been reflected in theAtlantic Basin MR market. In contrast, we have seen quite a few majorspikes in rates in recent months, Gibson said.

TCE earnings for MRs trading UK/Continent - US Atlantic Coastrose to $23,000 per day at its highest peak on round voyage basis atdesign speed, while MRs in other regional markets in the West followeda similar pattern. This is in stark contrast to the East, where MRearnings have lately battled to remain above zero.

In terms of fundamentals, one of the key reasons for the firmerproduct tanker market in the West is the ongoing strong growth in USproducts exports. First, distillate exports out of US, primarily to LatinAmerica and Europe, have been on a rapid upward trend since 2007 andsurpassed in terms of volume the US gasoline imports seen last year.

This year, US distillate exports have seen further growth, withaverage daily shipments out of the country rising above 1 mill barrelsper day. US gasoline exports, almost solely to Latin America, have alsobeen rising fast, quadrupling since 2007.

As a result, gasoline trade out of US has reached 0.61 mill barrels perday this year, not far behind total gasoline imports over the same period,Gibson said.

INDUSTRY – MARKETS

Correction- Drewry Maritime ResearchOn Page 19 of the March issue of Tanker Operator, the sources quoted forthe graphics were inadvertently transposed.The top right graphic source should have read….Gibson Research, while thebottom left graphic should have been sourced to Drewry Maritime Research.We apologise for any embarrassment caused.

TO


INDUSTRY - PROFILE - SHIP MANAGEMENT


Steffen Tunge has taken on the roleas a director and new COO forThome’s tanker fleet and TankerOperator asked him about his

hopes and aspirations for the third partyshipmanagement industry and the tankersector in particular.

When asked, what were his priorities in hisnew position going forward, Tunge said thatquality and experienced tanker officers,particularly senior officers, are still in shortsupply and this is not likely to get much betteron the short term. Securing and retainingofficers will therefore continue to be apriority.

“We will also with our new organisationalstructure focus very much on dedicatedtankers procedures, which will improve ourquality going forward. We have noticed thatthe requirements to the tanker industry areever increasing and we intend to stay on topas a tanker manager,” he said.

He also said that Thome intended tocontinue to grow the tanker side of it’sportfolio as there is still a strong demand forquality shipmanagement and the company willcontinue to grow with existing clients, as well

Tanker expert headsup Thome’s new

wet divisionSingapore-based third party shipmanagement concern Thome Ship Management has

split its management portfolio into wet and dry divisions and appointed a new COO to run the wet operation.

as bring in new ones if and when there iscapacity to do so.

“We expect that we will grow but only in acontrolled way with due respect to ourexisting principals and to the requirements ofthe charterers,” he said. He estimated that thecompany could grow by another 10 – 15tankers, but this would be subject to timingand conditions, “….as we do not want tojeopardise our quality standards,” he stressed.

Talking of possible growth due to distressedtonnage in today’s economic climate, he saidthat most probably there is a potential, but sofar Thome has seen “…more talk and lessaction. We have noticed it is a complexsystem with many stakeholders, so we do notexpect a rapid change in the way the industryworks,” he said.

He admitted that the current demand forincreased safety is a never ending saga. Thedemands for reduced risks and improvedsafety will continue and every time there is amajor incident, it leads to new SOLAS orMARPOL regulation, or industry demands.

“This has been the nature of our industryfor several decades and is not likely tochange. We have identified a strong vetting

performance as our ticket to operate tankers,so we will maintain a very strong focus onkeeping, or improving our results. The samegoes for TMSA. A good result is needed tomeet the requirements of the commercialpeople in our industry,” he said.

All tanker typesThome currently manages all ranges of oiltankers, as well as chemical tankers, bitumencarriers, plus LPG and LNG carriers. Tungeexplained that the company was particularlystrong in the chemical tanker sector, because alarge number are under management.However, he stressed that all other tankertypes are also under management and therewas no particular preference.

Turning to InterManager’s KPI initiative,Tunge said; ”We like the InterManager KPI’s,but also believe we still have a way to go tomake the system operational.”

The question of third party shipmanagementremuneration is never far away when talkingwith the third party shipmanagementconcerns, especially today with increasingcosts and increasing pressure to reduceoperating costs.

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PROFILE – SHIP MANAGEMENT

April 2012 � TANKEROperator

Tunge countered; “This is a very competitive business and withshipping for the most part in a slump, there is not much appetite for anyincreased costs, including management fees. Improved productivity iswhat we have to strive for, but there is a limit of what can be achieved.

“We do however believe that the industry has to accept an increase ina not too distant future, as requirements continue to increase andcharterers expect a flawless operation, which unfortunately cannot bedone without cost. This of course also ties back to the charter hiresoffered and we believe any quality charterer will have to accept acertain level of operational expenditure, otherwise a quality operationcannot be delivered,” he warned.

Some shipmanagers, especially the larger companies, have alwayssaid the economies of scale kick in once a critical mass of tonnage isreached. “There is obviously an advantage of scale and bigger is oftenbetter. However, there is a limit how big it can go before other issuesbecome too complicated and may result in reduced performance.

“We are well aware of that and will be very attentive to our qualitylevel. We do believe that a critical mass is more needed than ever,mainly due to the depressed market and the need for a qualityoperation,” Tunge said.

Satcoms contractEarlier this year, Thome signed a contract with Inmarsat and itsdistribution partner AND group to provide Inmarsat FleetBroadbandand AND’s IPSignature2 communications software to its managedvessels.

Under the new framework agreement, AND group became theexclusive communications provider to Thome for InmarsatFleetBroadband and will deliver the FleetBroadband service through acombination of pricing packages, including the Very Large Allowance(VLA) package.

Tunge explained that the recent signing of the contract to offer theinstallation of FleetBroadband on board Thome’s principals’ vesselswas for varying reasons. “We have made a competitive package we canoffer to our principals, as we believe the future will belong tobroadband on board ships - both for professional and operationalreasons - but also to improve the communication our seafarers can havewith their families and friends. So the agreement serves severalpurposes,” he said.

Finally, he thought that going forward there will be consolidationamong owners and managers. “We believe there will be somemovements going forward, both from the owner side and perhaps alsoamong managers. We would expect that smaller tanker managers willfind it difficult to cope with the requirements and will perhaps also bein trouble in obtaining acceptance from certain charterers, which thenwill drive a certain consolidation in the manager industry,” heconcluded.

At the time of his appointment, Thome said that Tunge’s arrivalbrought on board a vast amount of experience from the tanker industryand he will add valuable hands-on experience from his many years inleadership positions at Stolt Nielsen, B+H Equimar and MSI inSingapore.

Tunge is an active member of Intertanko and sits on Intertanko’sChemical Committee and is a Council member representing Singapore.

As COO, his role has been created to head the tanker fleet and itreinforces Thome’s demand to uphold and deliver the highest level ofservice to its valued stakeholders, the company said.

Senior managementAt the same time, three other senior management positions were filledinternally. These included senior manager Yatin Gangla, who is the



INDUSTRY – PROFILE - SHIPMANAGEMENT

newly appointed COO in Thome’s bulkdivision.

In addition, Sandy Kumaran has beenappointed senior manager to head up thenewly created fleet services department. Thisdepartment was established to assist andsupport the Thome fleet in a range of servicesin response to the company recognising that amore stringent level of quality check andsupport system is required in order to supportthe operation successfully.

Finally, Atul Vatsa has been promoted tosenior manager in tanker operations and willbe heading the marine standard and vettingfunction.

At the time of the appointments, Olav EekThorstensen, group chairman & CEO, said:The appointment of Steffen, Yatin, Sandy andAtul demonstrates our commitment toservicing our client base in a consistent andprofessional manner.

“Steffen Tunge joins Thome after aremarkable career in some of the world’sleading shipping companies. I am delighted heis joining Thome as his experience will benefitour company greatly.

“I am particularly pleased we have been

able to promote Yatin, Sandy and Atul fromwithin. They are three senior managers whohave been with us for some time, theyunderstand our working culture, what is meansto serve Thome principals and the standardsthey must maintain. I am certain they willexcel in their new posts,” he said.

Managing director, Carsten Brix Ostenfeldt,said: “These four appointments show Thomeis moving ahead with the times and able toattract the very best experienced and talentedmanagers available. I am looking forward toworking with these four colleagues and Ibelieve that together we can take Thome to thenext level in terms of leadership in theinternational shipmanagement field.”

Not stopping there, Thome’s offshoreservices arm Thome Offshore Management(TOM) and Thome Oil & Gas (TOG) hasappointed John Sydness, as managing director,effective immediately.

Buoyed by the rising offshore markets, thecompany said that its offshore and energydivision is expanding its managementcapability to better support its activities andensure its service standards are maintained and improved.

Sydness took over from Claes EekThorstensen, who is moving into a group rolein TSMI – the holding company of the ThomeGroup of companies. In his new role,Thorstensen will be supporting thedevelopment of all the companies within thegroup, including commercial and marketing activities.

Steffen Tunge heads up Thome’s tankerfleet.

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INDUSTRY - MIDDLE EAST REPORT

Could tensions stiflegrowth?

With US and EU sanctions coming in against trading with Iran in a couple of months, alleyes have turned to the Straits of Hormuz, the strategic waterway that

commands the entrance to the Persian Gulf.

There has already been a certainamount of sabre rattling in the areawith the Iranian Navy exercisingin the Straits and threatening to

close the vital shipping lanes, while units ofthe US fleet resides in Bahrain and elsewherein the region.

If the Iranian oil ceases to flow, SaudiArabia and Iraq could plug the gap andindeed, both have ramped up their oilproduction recently with Iraq opening anoffshore export facility. Iraq could also look atthe pipeline option, thus bypassing the Gulfaltogether.

Qatar is awash with gas leading to hugeexport figures going through Ras Laffan. Mostof the gas is shipped in large LNGCs, whichhave seen charter rates soar recently on theback of huge demand.

In addition, the petrochemicals industry isexpected to grow significantly in the area withnew refinery capacity coming on streamcoupled with chemical and products storagefacilities springing up.

Down the years, the ports and terminalsstraddling the Gulf have spawned a massiveservice industry to cater for the tankers andgas carriers, plus other types of vessels, nowregularly calling in the region.

We have seen the growth of ports, such asSalalah in Oman, Jebel Ali, Khor Fakkan andFujairah in the UAE. There are plans toexpand others, such as those in Bahrain, Qatarand Iraq.

Taking Fujairah as an example, the watersoff the former small village have been used as

an anchorage for many years, long before theinfrastructure ashore was built. It isstrategically located just outside Hormuz andapart from the anchorage, which still playshome to around 100 vessels at any one time, ithas thriving bunker facilities, a large containerterminal, a drybulk loading terminal and anever growing number of product and chemicalstorage facilities.

Bunker hubThe port is today the leading bunkering hubafter Singapore and Rotterdam and plans tomore than double its oil storage capacity to 7mill cu m in the next two to three years. Bythe middle of this year, Fujairah will havebeen boosted still further with the opening ofa crude oil export pipeline connectingHabshan in Abu Dhabi to Fujairah.

The commissioning of the $3.3 bill, 370 kmHabshan-Fujairah pipeline is due to take placein April, or May and it will be ready totransport oil a couple of months after this.Once in service, the pipeline will handle up to1.5 mill barrels per day, although according tolocal reports, its capacity could increase to 1.8mill barrels per day at a later stage.

This will give Abu Dhabi direct access tothe Indian Ocean cutting out transiting the

Straits and avoiding loading tankers at theUAE’s oil terminals. The new pipeline is alsoexpected to lower shipping costs for theUAE’s oil exports, as a premium is charged, ifthe area is deemed a War Risk by insurers.

The conceptual design of the pipeline wascompleted in 2006 and the constructionrelated contracts were awarded in 2007 withthe actual building starting on 19th March,2008.

Again according to local reports, during thefirst year of operation, the pipeline will enablethe Abu Dhabi Company for Onshore OilOperations (ADCO) to export roughly half itstotal production. The pipeline is owned by theInternational Petroleum Investment Company(IPIC), an investment arm of the Abu DhabiGovernment.

The Murban blend crude will be carriedthrough a single 48-inch diameter pipe. Theproject comprises the pipeline, main oilterminal at Fujairah, offshore loading facilitiesand the ancillary services needed.

Under the plan, a strategic crude reservoirwill be set up in Fujairah. The pipeline willalso serve a planned $3.3 bill, 200,000 barrelsper day refinery to be built in Fujairah byIPIC, local sources said. Tank farms have sprung up throughout the

area.

Fujairah is now a major oil storage port.

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A.t Fujairah, there are already several oilberths. For example, three were commissionedin January 2006 (Terminal No 1) able tohandle up to 115,000 dwt tankers at 15 mdraft. Terminal No 2 was opened in June 2010and has four berths for vessels of up to180,000 dwt at 18 m draft.

According to the port’s website, another1,000 m of berths are being built dredgeddown to 20 m and a master plan is in place foranother 11 berths in the future.

Storage facilitiesThere are several independent storageconcerns in Fujairah, including VopakHorizon, which in 2010 decided to expand itsstorage area capacity for products by 606,000cu m.

The company said at the time, that thisexpansion project was on the back of thegrowing demand and development of arefining centre in the Middle East region. Asa result, Fujairah was developing from aregional hub into a global logistics hub. Thisin turn has led to an increase in internationaltrade flows that fostered a growing need for make-bulk and breakbulk services and blending.

After completion of the expansion project inthe first quarter of 2012, the total storage

capacity will be more than 2.1 mill cu m, thecompany said. The expansion consists of 20new tanks with sizes ranging from 20,000 cum to 40,000 cu m for the storage of fuel oiland clean petroleum products.

This year, a port spokesman said thatFujairah planned to raise its overall fuelstorage capacity by about two thirds, as tankoperators expand.

The port will raise tank capacity to 10 millcu m by 2014 from about 6 mill cu m today,general manager Mousa Murad said in aMarch 12 interview with Bloomberg. He alsosaid that the Emirate may also add powerfacilities and a natural gas import plant at thesite.

Fujairah is seeking to compete withSingapore and Rotterdam as a hub for bunkerfuel. Traders in Fujairah supply about 24 milltonnes of fuel a year, Murad said, reportedBloomberg.

Both the Vitol Group and Vopak lease fuelstorage capacity in Fujairah. In addition, StateOil Co of Azerbaijan (SOCAR) is building aterminal that should receive its first oil-product shipment by the time that TankerOperator goes to press.

Murad said that his forecast for growthassumes the completion of all tank terminalprojects planned in the Emirate. That includes

the potential addition of tanks on reclaimedland at the Vitol and Vopak sites.

The SOCAR facility has a storage capacityof 114,000 cu m, or about 640,000 barrels, ofoil. The 20 tanks will be able to store fuel oil,gasoline, naphtha, middle distillate productsand blending components. A plan to furtherboost its capacity to 350,000 cu m is also onthe drawing board, according to reports fromthe area.

Meanwhile, it was reported earlier this yearthat UAE-based trader Gulf Petrochem hadagreed to sell a 12% stake in its planned oilstorage terminal to the government ofFujairah, according to Reuters. GulfPetrochem has been building a $136.4 mill,412,000 cu m oil storage terminal in Fujairah..

Although outside the Straits of Hormuz,Fujairah Anchorage could become a ‘sittingduck’ for pirates. At as recent conference inLondon, it was said local coastguard patrols ofthe area were at best intermittent. There hadalready been a reported attack only 65 milesaway, or so.

Most vessels anchor with theiraccommodation ladders down ready to receivethe various supply boats operating out ofFujairah. In addition, the anchored vessels areusually floodlit as supplies and repairs arecarried out 24/7.


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INDUSTRY - MIDDLE EAST GULF

Shiprepair sector hasits ups and downs

The Middle East Gulf area is home to four major shipyard complexes and severalsmaller ones of varying capacities.

The four largest yards are ASRY,Drydocks World-Dubai, Nakilat-Keppel Offshore & Marine (N-KOM) at Ras Laffan, Qatar and

the newest -Oman Drydock Company, locatedat Duqm, Oman.

They have all experienced mixed fortunes,but for ASRY, the return of VLCCs has giventhe yard a welcome boost.

As for ASRY, the first quarter of 2012mirrors the year 2011 for the Kingdom ofBahrain’s Arab Shipbuilding & Repair Cowith the return of the large tanker market, acompany spokesman explained..

In the first three months of 2012 the PersianGulf-based repairer drydocked three vessels inexcess of 300,000 dwt for repairs, all ownedby the National Shipping Corp of SaudiArabia (NSCSA) and managed by Dubai’sMideast Shipmanagement – the 302,977 dwtMarjan, the 317,788 dwt Wafrah and the303,138 dwt Safwah.

Last year turned out to be an acceptable 12months for ASRY. Following the false dawnof an expected market upturn in 2010, theyear started slowly and then picked-up withthe Bahrain yard repairing a total of 200vessels to the end of 2011.

An encouraging trend was the large numberof tanker repairs undertaken during 2011,especially on VLCCs and LPG carriers. Thesevessels came from the fleets of Iraq OilTanker Co, Kuwait Oil Tanker Co (KOTC);NSCSA (Mideast Shipmanagement); VelaInternational Marine, Red Sea MarineServices, Springfield Shipping, Greece, SunEnterprises, Greece; Pratibha Shipping, India;MARCAS-V Ships, Monaco; NordicMaritime Services, Norway; OdfjellManagement, Norway; BW FleetManagement, Norway; Pakistan NationalShipping Co; Selandia Shipmanagement,Singapore and Thome Ship Management,Singapore;

The total number of tankers repaired atASRY last year was 52 – including 13VLCCs, seven large LPG carriers and 16chemical tankers. Noteworthy, according to

the company, was the return of the largetanker market, especially from Middle Eastowners.

During 2011, ASRY repaired some 13tankers of over 300,000 dwt, of which 10came from the Arab market and three from theinternational market. NSCSA/MideastShipmanagement led the way with fourVLCCs: the 303,115 dwt Harad, and the three300,361 dwt sisterships Ramlah, Ghawar andSafaniyah.

KOTC drydocked three large tankers – the317,250 dwt Kazimah III, 310,543 dwt AlSalheia and the 310,513 dwt Al Shegaya, thelatter being one of the largest repairs in termsof value during 2011.

Meanwhile Saudi Arabia’s VelaInternational Marine also docked threeVLCCs - the 316,808 dwt Pisces Star,316,476 dwt Aries Star and the 301,824 dwtAlphard Star.

Finally, the three VLCCs from theinternational market all came from Greekowners. Two vessels were stemmed bySpringfield Shipping - the 303,184 dwtOlympic Loyalty and the 302,789 dwt OlympicLegacy, while Sun Enterprises docked the301,824 dwt Chios.

In December of last year, ASRY completedits $188 mill expansion programme with theopening of a 1.38 km repair quay (see TankerOperator, January/February 2012, page 10).

N-KOMFurther north, last year, the giant N-KOM

shipyard received the first Qatargas-charteredLNGC Al Wakrah to drydock at the ErhamaBin Jaber Al Jalahma Shipyard, Qatar’s new,offshore and marine hub at Ras Laffan.

The 1998-built 135,300 cu m Al Wakrah,which is owned by a Japanese consortium ledby Mitsui OSK Lines and managed by MOLLNG Transport underwent generalmaintenance work, such as main andgenerator turbine inspections, cargo pumpoverhauling, main switchboard and highvoltage cargo switchboard maintenance,electric motor overhauling, main boilercleaning, and hull painting at the yard. The new yard was officially inaugurated on23rd November 2010. Previously, there wasonly a limited range of offshore and marineservices in Qatar. With the build up ofprimarily gas carriers calling at Ras Laffan,vessels will no longer have to wait fordrydocks to become available in Singapore,the UAE, South Korea or China for generalmaintenance work, the company said.

Nakilat’s fleet of LNG carriers is expectedto take up about 25% of the yard’s repair andmaintenance capacity at any one time, leaving75% free for other vessels on a commercialbasis.

Highlighting the yard’s potential, thecompany said that by 2020, some 4,000 shipsare expected to call at Ras Laffan port everyyear.

Dubai complexFurther south towards the entrance of the Gulf

NSCSA’s VLCC Wafrah seen undocking at ASRY.



INDUSTRY - MIDDLE EAST GULF

lies Drydocks World-Dubai. This huge facilityseemed to have been badly hit by theeconomic events in the UAE and Dubai inparticular.

The repair company’s parent DrydocksWorld (DDW) has been in discussions with itsmain group of lenders to restructure its debtobligations under its $2.2 bill syndicated loanfacility since late last year.

In a statement last month, the company saidthat significant progress had been made overrecent months in all aspects of therestructuring. As a result, DDW said that itwas confident that it would receive thesupport of a majority of its syndicated lendersto the terms of its debt restructuring.

Consequently, on 8th March 2012, DDWpresented the terms of its proposal and thesteps required to implement it’s plan alongwith the associated timeline to all itssyndicated lenders. DDW has targeted acompletion date of all aspects of itsrestructuring by July 2012, according toKhamis Juma Buamim, DDW and MaritimeWorld chairman.

“The Company remains extremely confidentit can gain support for its proposals and that itwill secure the necessary support of its lendersto successfully implement its’ restructuring.This will leave the group in a strong positionto continue to develop and implement itsstrategic plans,” said Buamim.

The company exceeded its budget in 2011 –the actual EBITDA for CY 2011 for Drydocksshowed an increase of 65% over budget.Strong growth has been witnessed by thecompany over the recent past and at this pointin time, Drydocks Dubai expected to close CY2012 with a higher EBITDA than budgeted.

Furthermore, the company has woncontracts totaling $255 mill since the turn ofthe year, which puts it in a strong position toachieve its 2012 business plan, Buamimclaimed.

The huge complex was designed and builtwith three giant drydocks in the mid 1970s ata time when it was envisaged that ULCCswere here to stay and a 1 mill dwt tanker wason the drawing board.

Today, the company has diversified into theoffshore and conversion fields, buildingsupply vessels, bunker barges, tugs andconverting older tankers and gas carriers intoFPSOs and FSOs.

Oman to openLocated outside the Straits of Hormuz atDuqm is the brand new shiprepair complex ofOman Drydock Company (ODC), which isdue to be officially inaugurated next month.

However, since it opened for business in April2011, ODC has been gradually ramping up itsoperations. Starting with the handling ofrelatively small vessels, ODC has sincehandled more than 32 vessels of varying sizes.

For example, last November, ODC receivedits first LNGC, the Muscat LNG, owned byOman Shipping Corp.

As part of its mid-life service, the vesselunderwent an 11-day docking period at ODCand was redelivered within the estimated 12days.

The repairs included the mechanicalcleaning of the main boilers and the fire sides.She was pressure tested and the LNG cargopumps, ballast pumps and the safety andmounting valves for the main boiler wereoverhauled.

In addition, the cable hangers and cableswere renewed at five locations and new cablesupports (20 sets) for the cable way wereinstalled during the passage and the core wireswere modified in tube type fluorescent light.As part of the regular maintenance work, thehull was recoated.

After docking at ODC, the ship loadedLNG at the Qalhat Terminal and left for theFar East.

DMC facilitiesAt the smaller end of the scale, DubaiMaritime City (DMC) recently signed a LandLease (Mustaha) agreement for 25 years withshiprepair and building entity, Dubai ShipBuilding.

The area of the land is over 11,196 sq mand is a shiprepair plot within DMC’sbusiness district.

“We continue to strengthen our operationsin Dubai Maritime City, since the formallaunch of the maritime district last year. Thispartnership will help us take greater strides atpromoting the region as a global maritimehub. We are keen to promote local andinternational players within the City, whichwill be a unique meeting point offering wide-ranging choices for the industry,” said KhamisJuma Buamim, chairman of Drydocks Worldand Maritime World.

DMC’s head Bader bin Mubarak, said,“Dubai Maritime City, being the mammothproject that it is, has been a part of our longterm planning for relocating our extensiveprojects. Being a part of the maritime historyof Dubai and representing the national spirit,we at Dubai Ship Building aim to partner withthe pioneering group of Drydocks World andMaritime World to further strengthen themaritime industry within the region and bringinto focus national proficiency.”

Maritime activity at DMC primarilyrevolves around the maritime and businessdistricts. The maritime district is built on148,989 gross sq m of land and will be centrefor marine and maritime related facilities andthe industrial precinct of the business districtwill cover a gross area of 519,780 sq m,consisting of industrial and retail facilities.

Another company to pledge its support forDMC was Goltens who last October carriedout a ground breaking ceremony of its newoffice and workshop facility in DMC.

Goltens, which has a strong presence in theMiddle East and across 21 locationsworldwide, has signed a long term Mustahaground development agreement with DMC fortwo plots within the complex. These are ofabout 23,000 sq m each and have been leasedto the company for 25 years.

“When we announced the opening of themaritime zone of the city in March 2011, wewere determined to develop Dubai MaritimeCity as part of the Strategic Plan of 2014. Thevast collection of amenities and facilitiesprovided by DMC to encourage business bysea is an opportunity for real growth anddevelopment of this vital sector. Infrastructuredevelopment is progressing rapidly and we seeheightened interest from companies all overthe world in this unique facility,” saidBuamim at the signing ceremony.

“The Middle East marine repair market isexpected to grow significantly medium to longterm and Goltens Dubai will for theforeseeable future be a large hub for theMiddle East and we especially see a futuregrowth within our specialist core disciplinesdiesel, in situ and mechanical”, said PaulFriedberg, president – Goltens WorldwideServices.

DMC has rapidly evolved since the launchof Phase 1 in early 2011 when 110 units ofdifferent sizes were constructed and declaredoperational. More offices, shops, showrooms,yacht manufacturing workshops, andwarehouse and workshop units will bereleased on completion of Phase II.


DDW chairman Khamis Juma Buamin.

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A few years ago, the Middle East countries started to invest in their own tonnage in aneffort to woo cargoes away from the independent companies’ hulls.

Gulf owners see abrighter future

emerging

This has met with only limitedsuccess mainly due to the generaldownturn in freight ratesexperienced for the past four

years, or so. However, with the build up of refinery

capacity and petrochemical plants in theregion, those companies investing inchemical/product tankers seem to have abrighter future than those opting for largecrude oil carriers. Several companies choseboth.

One, Dubai-based Gulf Navigation(GulfNav), could benefit from both the largeand the chemical/product sectors, as at thetime of writing, Asian refinery demand waspushing VLCC rates north again. However,whether this rise is sustainable in the wake ofan increase in the supply of vessels, remainsto be seen.

US and EU sanctions against companiesbuying oil from Iran has already led to Indianand Chinese oil importers seeking othersources of crude oil, which could give themarket for large tankers a further boost byincreasing tonne/miles, given that some oilwill be imported from West Africa, theCaribbean and the North Sea, despite otherGulf states ramping up their production.

GulfNav is also active in the IMO II andIMO III chemical sectors and in 2009, formedGulf Stolt Ship Management (GSSM), a jointventure company with Stolt Tankers, toprovide a more focused and complete range ofintegrated marine services. At present fourchemical tankers are managed by GSSM.

In addition, the company has two VLCCsand eight chemical tankers, plus two VLCCnewbuildings, due to be delivered next year.They are believed to have been fixed toChina’s Hainan Group for 10 years.

Also based in Dubai is Gulf EnergyMaritime (GEM). This tanker owner wasformed in 2004 as a joint venture shipping

company with Emirates National Oil Co(ENOC).

GEM currently has the fleet of 19 tankers,comprising eight modern Panamaxes andnine chemical/product tankers- six MRs andthree Handysize vessels. Two Aframaxes areto be delivered later this year from Samsung.

Profit downturnPerhaps illustrating the problems facing tankerowners and not only those located in the Gulfwas the annual consolidated financial resultsfor 2011 recently released by the NationalShipping Corp of Saudi Arabia (NSCSA).

Net profit totalled SAR287.8 mill,compared to a net profit of SAR414.9 mill for2010, a decrease of 30.6%. Earnings per sharefrom net profit (EPS) amounted to SAR0.91compared to SAR1.32 for 2010, the companysaid.

Gross profit totalled SAR339.2 mill,compared to SAR557.4 mill for 2010, adecrease of 39.1%, while operating profit wasreported as SAR229.5 mill compared toSAR453.6 mill, a decrease of 49.4%.

NSCSA CEO, Saleh Nasser Al-Jasser, saidthat the decrease in net profit last year wasdue to the following reasons:1) A decrease in average TCE rates in theVLCC spot market, due to excess capacity oftonnage resulting from the entry of newtonnage into the market.2) The expiries of three VLCC timechartercontracts during the year, which hadnegatively affected the results of crude oiltransport sector, in addition to the risingbunker costs.

He said that other sectors had shownimprovement in their net income results,which helped to minimise the negative impacton the overall consolidated net incomecompared to net income of last year.

The bunker subsidy item has beenreclassified, which impacted on the gross

profit and operating profit. Similarly,corresponding items in the consolidatedincome statement for the 2010 financial yearhave been reclassified for comparisonpurposes.

NSCSA currently owns a fleet of 17VLCCs, manages 20 chemical carriers andfour conros. In addition, another five 46,000dwt chemical carriers are due to be deliveredthis year, plus a larger 75,000 dwt chemicalcarrier to be delivered in 2013.

All of the chemical tankers are operated byNational Chemical Carriers (NCC), an 80:20joint venture company with SABIC.

In 2009, NCC entered into a 50:50 jointagreement with Odfjell and established anoperating concern in Dubai. The company alsohas a 30.3% stake in LPG carrier operatorPetredec.

Saudi Aramco subsidiary Vela InternationalMarine, also managed from Dubai, currentlyowns 15 VLCCs, one LR2 and five MRs.

According to its website, Vela also has up to40 tankers ranging from VLCCs downward oncharter at any one time.

There are other companies in the Gulf, suchas Kuwait Oil Tanker Co (KOTC), asubsidiary of Kuwait Petroleum Corp andNITC, which is the subject of muchconjecture at present.

Just outside the Gulf is Oman Shipping Co(OSC), which has 14 VLCCs, plus four moreon order; two LR2s; two methanol carriers;two chemical tankers and two product tankersin operation.

Middle East owners are strong in the VLCCsector


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INDUSTRY - CLASSIFICATION SOCIETIES


IACS to submit CSRharmonisation rules to IMO

The International Association of Classification Societies (IACS) has a busy year comingup, not least with the harmonisation of the Common Structural Rues (CSR).

The latest release of the IACS Blue Book packagecontinues and enhances our technical support to theshipping industry through IACS work on research

and development both at the classification and statutory level.

“

”- Derek Hodgson, IACS Permanent Secretary

At IACS Council’s winter meetingat the end of last year, themembers considered the currentposition regarding the important

project to harmonise the CSR.This will lead to the submission of the

harmonised rules to the IMO for verificationof compliance with the IMO Goal BasedStandards by the end of 2013.

During the meeting Industry representativesfrom shipowning and shipbuildingassociations were consulted and their inputassisted in the preparation of a robust,consistent and thorough set of rules, which itis anticipated will be well received, IACS said.

Council also took the opportunity tointroduce new quality measures, which willgreatly enhance the performance of theirAccredited Certification Bodies who havetaken over the auditing of the 13 IACSmembers.

Finally, under the leadership of RussianMaritime Register of Shipping’s PavelShikhov, IACS said that it was resolved tosupport the CSR harmonisation process withthe continuing substantial investment of time,finance and human force from its members.

In March of this year, IACS released anupdated version of its Blue Book. This is anelectronic library of technical resolutions (bothpast and present) adopted by IACS, as a resultof its technical work for the benefit ofinternational shipping since its establishmentin 1968. It contains - � IACS ‘Unified Requirements’, which IACS

members incorporate into their rules.� ‘Unified Interpretations’ of IMO

convention requirements, which members apply uniformly when acting on behalf of authorising flag administrations, unless instructed otherwise.

� ‘Procedural Requirements’ governing practices among IACS members.

� ‘IACS Charter’ and ‘IACS Procedures’, which define the purpose, aim and workingprocedures of the Association.

� ‘Recommendations’ relating to adopted resolutions that are not necessarily matters of class but which IACS considers would be helpful to offer some advice to themarine industry.

� ‘UR - Unified Requirements Status’ advising on implementation status.

� ‘UR HF & TB’ containing the history and technical background files for the Unified Requirements.

� ‘Quality Documents’ containing QSCS (IACS’ quality system certification scheme)description, quality management system requirements, audit requirements, ACB (accredited certification bodies) requirements and other quality procedures.

Improve accessTo improve access, speed and availability ofthe Blue Book at any time, the latest versionwill be made available for downloading fromthe IACS website.

Ship designers, shipbuilders, classificationsocieties, shipowners, shipbrokers, insurers,associations, accredited certification bodiesand the shipping industry at large will be able to download the package free of charge.

IACS permanent secretary Derek Hodgson said; “The latest release of the IACS Blue Book package continues andenhances our technical support to the shippingindustry through IACS work on research and development both at the classification and statutory level.” TO


TO

INDUSTRY – CLASSIFICATION SOCIETIES

Russian class societyspeaks its mind

Currently, the Russian Maritime Register of Shipping’s (RS) chairs the 13-memberInternational Association of Classification Societies (IACS). RS is represented by its

director of classification and development Pavel Shikhov.


Shikhov took over the chair fromClassNK’s Noboru Ueda at a timewhen the class societies have a loton their plate with several major

issues coming to the fore in the shippingindustry.

In a wide ranging interview, Mikhail GAyvazov, RS’ director general gave its viewson a number of topics affecting shippingtoday.

Perhaps the most urgent consideration is thefitting of ballast water treatment plants inview of the impending Ballast WaterManagement (BWM) convention, which at thetime of writing was very near to ratification.

RS said that it urged shipowners to installapproved equipment as soon as possible,ahead of the BWM convention ratification.“RS strongly recommends to shipowners to beaware of the development of the requireddocumentation and to choose the ballast watertreatment system for their ships with ballastwater volume less than 5,000 cu m,constructed in 2009, or later,” Ayvazov said.

This is to be done without delay for the

following reasons:1) According to rule B-3.3 of the BWM

convention, the first date of the Ballast Water Performance Standard D-2 application, in case of the BWM convention entering into force, will be defined for the above-mentioned vessels.

2) It will be difficult to fit the ships with the necessary equipment in such a short space of time.

In the near future, shipowners will have tomodify ballast water systems on their existingvessels. In the case of approved BWT systemsinstallation, the individual approach to everyvessel in service is required. However, theintegration of such systems on board vesselsunder construction is much easier, as thesystem can be designed into the vessel inadvance.

During the development of the projectdocumentation for BWT systems, forinstallation on existing vessels, the followingis to be assessed.A) Sufficient space in which to install the

system.

B) Adequate power within the electrical system on board.

C) The provision of the required ballast pump pressure in the event of a pressure loss in the ballast water treatment system.

D) The possibility of the BWT system installation subject to the existing ballast system structure (eg, ballast pumps are situated in different spaces, there are several discharge outlets, cargo tank is used as ballast water tank, etc).

In the event that there is not enough space toinstall the system and its pipelines, severaldecisions will have to be taken, such as toplace the system on deck in a container, or ina cargo tank with the installation of anadditional bulkhead. In this case, RS willreview the technical documentation forcompliance with the RS’ rules.

Integration of a BWT system at the shipdesign stage is an important issue for theshipowner together with the classificationsociety. For example, in most cases at theapproval of technical documentation stage, RSwill require the corresponding calculations to

RS has specialised in the classing of ice class shuttle tankers.


T

April 2012 � TANKEROperator . 19


prove the system’s compliance with that of theclass requirements.

Arctic considerationsTurning the increasing summer use of theNorthern Sea route (NSR), the shortestmaritime routes connecting NorthwestEuropean markets with the Pacific region passthrough the Arctic.

According to the experts, the NSR is about35% shorter than the traditional southernroutes (through the Suez Canal) and thereforemay become a new alternative navigationroute. In 2010 - 2011 about 20 large tankersand bulkers transited the NSR.

Moreover, the development of Russianoffshore fields in the Arctic requires aneffective transport system to supply offshoreoil and gas units and to safely ship energyresources.

One of the solutions is to extend thecapacity of the NSR. Its safe navigationshould be accomplished with the aid of apowerful icebreaking fleet, large Arctic ships,plus communications, navigation andhydrographic systems.

The icebreaking fleet is the basis for thesafe operation along the NSR, Ayvazov said.Nuclear powered icebreakers enable theefficiency of the NSR to be increased,

ensuring year round navigation in the westernpart of the Arctic. An icebreaking fleet isessential for ice navigation.

He confirmed that RS is currently involvedin all Russia’s icebreaker constructionprojects. Besides traditional hull designs, themost up-to-date icebreakers feature innovativesolutions. After the development of thedouble-acting (DAT) ships, the next step forice class is an asymmetric hull.

Under the Russian Federal TargetProgramme on ship construction, a newasymmetric icebreaker (a project developed byAker Arctic Technology) will be constructedto RS class by the Yantar shipyard(Kaliningrad, Russia) in co-operation withArctech Helsinki Shipyard.

The vessel will feature a patented obliquedesign with an asymmetric hull and threeazimuth propulsors, which will allow thevessel to operate efficiently ahead, astern andat other angles. The vessel will be able toproceed at a continuous speed in 1 m thicklevel ice both ahead and astern and in anoblique mode, the vessel will be able togenerate a 50 m wide channel in 0.6 m thicklevel ice.

In addition, the vessel will feature highmanoeuvrability during ice operations.Besides icebreaking, the vessel may be used

for environmental protection purposes. Theadditional functions of the asymmetricicebreaker will include firefighting and rescueoperations, as well as ability to deal with oil-spills on the sea.

In January 2012, RS took part in a keellaying ceremony for the two multi-functionalicebreaking supply vessels ordered by SCFSovcomflot at Arctech Helsinki Shipyard. Thevessels are intended for offshore supply andare being built as a result of an agreementsigned by SCF and Exxon Neftegas.

The vessels will be assigned dual RS/LRclass with the RS Class notation - KM(*)Icebreaker7[1] AUT1 EPP OMBO FF3WSDYNPOS-2 supply vessel.

In view of the growing interest/demand forexploration and transportation ofhydrocarbons from the Russian Arctic, mostof the research studies RS is now undertakingare aimed at the development of an adequateand efficient regulatory framework for thecommon use by all the parties involved,Ayvazov explained.

These activities could further the idea thatthe NSR could be an alternative seaway fromEurope to East Asia. The passage through theArctic Ocean is significantly shorter indistance, but there are still many challenges tobe addressed, with a lot of work ahead to




Russian Register CEO Mikhail Ayvazov.

make the navigation along the northern coastof Russia feasible, safe and economicallyeffective, he said.Today, with the growinginterest in hydrocarbons production andtransportation from the Russian Arctic, RSforesaw a significant increase in the numberof large ice class offshore units, oil tankersand LNG carriers designed to operate in heavy ice conditions.

Enhanced documentationBeing seriously concerned aboutcommunications improvement with RS’clients, the class society recently launched anoptimisation programme for documentationmanagement, which will speed up andsimplify the applications and requestsprocessing, thus increasing efficiency ofinformation exchange, management andaccess, as well as minimising its loss.

The class society explained that in recentyears, the number of applications and requestsfrom shipowners to RS had significantlyincreased. The uniform system will connectthe RS divisions in 34 countries.

“All the changes will significantly benefitour partners and clients and therefore areessential for the wellbeing of our society”,emphasised Ayvazov.

According to the class society, “RSannually processes around 60,000 documents.Timely implementation of the corporatedocument management system will providereliable and effective document control at allstages and will significantly benefit the RSclients”.

The first phase of the projectimplementation includes docflowautomatisation in 25 RS branch offices inEurope and St Petersburg.

In addition, RS plans to broaden the rangeof its services. Having gained experience inin-service survey of modern LNGCs, in 2012for the first time RS will provide technicalsupport during design and construction of thistype of vessel.

Two LNGCs of 170,000 cu m capacity eachwill be built by STX Offshore & Shipbuildingto a dual RS/LR class with RS acting as theleading society. The RS class notation will be- KM (*) Ice2 AUT1 OMBO EPP ANTI-ICE LI CCO ECO-S WINTERIZATION(-30) Gas carrier type 2G (methane).

The specific feature of these newbuildingsis a tri-fuel diesel-electric propulsion plantallowing the use of the LNG cargo carried asfuel. This will enable reduction of nitrogenand sulphur emissions to the atmosphere,which is an important step towards reductionof the maritime transport share in the

environment pollution.The agreement with STX Offshore on the

classification of the LNGCs triggered anestablishment of an additional RS office inSouth Korea, which will technically supportship design and construction, optimise co-operation with South Korean shipbuilders, aswell as develop services in the region.

The Centre was established in line with theRS’ strategic global expansion plans. Themain objectives of the newly establishedoffice are:� To foster closer contacts with clients and

partners within one time zone.� To provide technical support to RS

surveyors involved in newbuilding projectsat Korean yards.

� To render the full range of RS services in newbuilding for Korean market, including design review, surveys of ships during construction, certification of marine equipment.

� To liaise and hold joint seminars with representatives of the Korean maritime industry.

The official opening ceremony and eveningreception took place on 7th March 2012 inBusan. At the ceremony Ayvazov said: “Ourclients’ ambitious fleet construction planshave prompted us to expand our globalpresence, especially within the majorshipbuilding centres.

“The first RS office in the Republic ofKorea was established back in 1996 with themain focus on ships in operation. Since 2005,RS has continuously been involved in variousnewbuilding projects in Korea and has

acquired substantial experience of co-operation with the major Korean shipyards.

“The high-tech marine projects involvingRS participation in Korea range from Arcticshuttle tankers to state-of-the-art drilling units.These projects have enabled us to establishgood relationships with the local maritimeindustry,” he said.

Another office has been opened in Panamato facilitate the organisation of quality andtimely request performance in the Republic ofPanama, the US, Canada, Mexico, theCaribbean, Colombia, as well as Venezuelaand Ecuador. This forms part of RS’ strategicplans for the expansion of the class society’sworldwide presence.

For example, the RS Regional Office for theAtlantic Area, opened in December 2011 inHamburg co-ordinates all requests in Europe,plus North and South America.

RS is also heavily involved in maritimescientific research. On 19th December 2011,the class society held the annual meeting ofthe RS Scientific and Technical Council(STC) Presidium.

Leading scientists and experts in themaritime industry attended the meeting atwhich STC members summarised the 2011research results and prioritised futuredevelopments.

STC was established in 1915 for maritimesafety scientific research co-ordination. Nowthe council comprises about 300 leadingscientists and high-profile professionals within the industry, representatives of research institutes, design bureaus anduniversities. TO


DNV takes on a moreproactive role invessel operations

By now, the maritime world now knows that the IMO requires that CO2 emissions fromvessels be regulated starting with all vessels ordered from 1st January 2013.

Tankers will have to comply with aspecified Energy EfficiencyDesign Index (EEDI), plus a shipspecific Ship Energy Efficiency

Plan (SEEMP) containing operationalguidelines for the vessel’s fuel efficientoperation, which must be kept on board.

The EEDI will become more stringent forvessels ordered in future years. For example,it is required to be reduced by 10%, 20% and30% for vessels ordered from 2015, 2020 and2025 respectively.

This is likely to drive both vessel designersand equipment manufacturers to furtherdevelop energy efficient systems, which couldaffect the freight and secondhand market forvessels. For example, when future vessels are10 years old, they may be competing in thecharter market with newer vessels that are atleast 30% more fuel efficient.

To help shipowners, vessel designers, etc tocome to terms with this new index, DNV,together with the independent privately-ownedGerman Hamburg Ship Model testing facilityHSVA, has published ‘DNV Fuel SavingGuideline - for Tankers’. This is part of atrilogy of guidelines - the other two concerncontainerships and bulk carriers.

At the guide’s launch, DNV’s businessdirector Jost Bergmann illustrated this pointby saying recently MOL had sold a 14-yearold VLCC for recycling. Although the reasonsfor selling the vessel were unknown to DNV,Bergmann suggested that with today’s highfuel costs, the vessel might not be ascompetitive as when it was designed and builtin the mid 1990s.

With new designs offering up to 30% higherfuel efficiency is is expected that chartererswill focus more on fuel efficiency in thefuture, Bergmann warned.

DNV said that any measure considered forreducing EEDI must affect one or more of theindex’s equation’s parameters. For example,the most effective method is to reduce the

vessel’s design speed. A 10%reduction in the design speedresults in at least a 25% reductionin installed power, giving an EEDIreduction of around 20%. It is theinstalled power that reduces theEEDI and not the power demand,the guideline pointed out.

The Guideline listed some of thepossibilities on offer today forreducing EEDI, together with theparameter affected. DNV gave thefollowing examples;

M/e installed power reduction -the hull and propeller efficiencycan be improved and/or the speedreduction can be achieved by de-rating the engine.

Lower specific fuel consumption – switchto a more efficient engine/engine controltuning.

Increase the speed without increasinginstalled power – improved hull and propellerefficiency (ie, fitting Mewis Duct, prop bosscap fin, or other flow devices).

Fuel as an energy source with lower carboncontent - eg LNG, biofuel (no guideline inplace).

Innovative mechanical energy efficienttechnology – eg kites (no guideline in place)

Innovative electrical energy efficienttechnology – eg waste heat recovery.

Increase the capacity – larger vessels.In addition there will be compensation

when using shaft generators and applying icestrengthening. Other correction factors areunder development, eg voluntary structuralenhancements.

Some of the suggestions, such as kites andsolar panels, cannot provide the power neededall the time for the main engine and thus theEEDI will not be reduced. There are noguidelines in place for the use of thesemeasures to reduce EEDI, but they areexpected to be developed at a later stage,

DNV said.Propulsion efficiency devices are not expectedto reduce the engine power, but will enablethe vessel to attain a higher speed, while theuse of biofuels is not covered in the currentframework as their cargo content cannot easilybe ascertained.

Efficiency indicatorDNV said that it is essential to be aware thatEEDI is basically an indicator for the potentialfuel efficiency for a specific vessel for onesingle operation condition – speed, cargo onboard, draft, trim etc. For most vessels, highfuel efficiency over a range of conditions willbe preferred, based on the likely vesseloperations profile. This will requireconsiderations beyond what is required tomeet the IMO requirements.

The bottom line for fuel efficiency is verymuch influenced by the vessel’s operation.SEEMP can be regarded as a formality withminimum content to guide the persons onboard to fuel efficiency. However, it can alsobe an efficient and more detailed and practicalguide for those on board.

Updating SEEMP and the content’s

The Guide includes reference to hull coatings. Source - International Paint.




continuous improvement in line with TMSA isan opportunity for those who wish to useSEEMP as an active tool for the managementof fuel consumption, the guide said.

The guide then goes into the main fuelsaving elements and descriptions, such asreducing hull resistance and their measures,such as hull coatings, hull form optimisationand propeller polishing/hull cleaning, givingthe costs and benefits accrued for eachmeasure.

A part of the guide is given over toimproving the propeller’s efficiency looking atthe separation in the aft body, frictional losses,rotational losses, axial jet losses, hub vortexlosses, tip vortex losses and a combination ofseveral effects. This chapter analyses thevarious types of propellers and attachments on

offer, such as the manyducts and fins available.

Power plant efficiency isalso covered in depth,including the low load/partload performance, energyrecovery, other sources ofenergy and other measuresthat could be used for themain engine. They includeengine de-rating, electronicengine control, exhaust gasbypass, variable turbine area,

shaft generator and waste heat recovery.A chapter is included on operational

efficiency tasking in tactical speedoptimisation, weather routing and voyageplanning, trim optimisation, engine tuning andperformance monitoring.

Finally, the guide gives a summary intabular form of the upper bound of fuelsavings potential of the various measurescontained in the book, including thepercentage savings possible where applicable.

As for the future, DNV and HSVA said thatpromising technologies are already underdevelopment, which should be available soon,including added resistance to waves, shipperformance modeling in realistic conditionsand the development of lightweight, compositematerials.

Both of the publishers pointed out that theyhave advisory services available and the guidecomes with a ‘Return on Investment’ userguide tool, for which a password will beneeded.

FellowSHIP projectThe DNV led FellowSHIP project, involvingpartners Wärtsilä, and Eidesvik, has nowreached its third phase.

This entails introducing an energy storagecapability in the form of a battery pack onboard an offshore supply vessel already fittedwith a fuel cell and powered by LNG.

Although being tested on board an OSV,DNV’s principal researcher, maritime transportand FellowSHIP project manager Bjorn JohanVartdal told Tanker Operator that this hybridenergy system has the potential to be used onboard shuttle tankers, bunker and chemicaltankers, or any other type of vessel on coastalvoyages.

He also said a battery pack and fuel cellcould be installed on vessels for use when in,entering, or leaving ports and harbours whenfull power is not often needed. A battery packcan easily be re-charged in port, once thesuitable infrastructure is in place. It can alsomeet the requirements for redundancy.

The three-year old LNG-fuelled vesselEidesvik’s Viking Lady had already made



Eidesvik’s OSV Viking Lady is at the heart of DNV’s FellowSHIP project.




history by being the world’s first vessel to befitted with a fuel cell as part of her propulsionsystem. Once the battery is installed, thepartners claim that the vessel will be fittedwith a true hybrid system.

When the new system is complete, theoperation of the engine will be smoother andmore cost effective, giving further emissionreductions. For example, gas burning enginescan have a methane emissions problem, DNVsaid.

The OSV’s fuel cell, which generates anelectric output of 330 kW, was installed in theautumn of 2009 and has successfully run formore than 18,500 hours.

DNV said that once the battery pack is inplace, the ship will operate using a hybridsystem similar to that which has been installedin hybrid cars for a number of years. However,the potential emission reductions are higherand the return on investment period is shorterfor ships than it is for cars.

As for Capex, this involves the batteryenergy storage system and the size of thebattery will be fully dependant of the vessel’ssize. For those vessels trading along theNorwegian coast, Norway’s NOx Fund can betriggered, whereby an owner investing inenvironmentally friendly equipment can claima government grant towards the cost.However, in most cases it will be the chartererwho will benefit from cheaper fuel costs.

As for Opex, this is dependant on the typeof vessel and its trade, although the benefitswill include reduced maintenance costs and adherence to local emissions regulations. Both oil majors and other leading charterersare now looking for more environmentally

friendly ways of transporting cargo andoffering services, such as for the offshoresector.The primary potential benefits of the hybridenergy system for a vessel, such as the VikingLady are a 20%-30% reduction in fuelconsumption and CO2 emissions throughsmoother and more efficient operation of theengines and fuel cell. The reductions of otherexhaust components are even higher, it wasclaimed.

The whole shipping industry is currentlyfacing record-high fuel costs, which areforecast to go up to about $1,320 per tonne by2030, according to DNV. Based on theseactual costs, the return on investment periodfor the hybrid system is estimated to be lessthan two years.

Vartdal explained: “We know that the hybridsystem will reduce the energy consumption.When operating, for example, on dynamicpositioning, there will be a major fuel savingpotential. When in harbour, too, the shipshould be able to operate on the fuel cell andits battery power alone, which will reduceemissions significantly. For environmentallysensitive areas, this will be an essentialbenefit. Additional benefits are related toreductions in machinery maintenance costsand in noise and vibrations.”

A comprehensive measurement programmewill be carried out to verify the savingspotential. The hybrid system will also bemodelled in detail. Calibrated and verifiedprocess models will facilitate simulation andoptimisation of future hybrid systems forvarious types of vessels.

New DNV class rules for battery-powered

ships have been developed in parallel with thisproject. These are the first class rulesdeveloped to facilitate the use of batteries tobe used as part of a vessel’s propulsion energy- both as hybrid solutions and for ‘pure’battery-driven vessels.

The first phase of the project from 2003-2005 entailed a feasibility study into theinstalling of fuel cells on board ship. Thesecond phase (2006-2010) involved the designof the system and its installation on board theViking Lady, which took place in 2009. Thethird phase was implemented this year whenthe system will be tested onshore and thesimulation modeling will commence. Thewhole project is due for completion in 2013and on board testing and measuring equipmentwill be installed.

FellowSHIP is financially supported by theResearch Council of Norway, which put upsome 40% of the estimated NOK37 mill totalcost with the three partners picking up 60%.

Henrik Madsen has become CEO of theDNV Group.

Following the transfer of themajority shareholding in KEMA,DNV has established a groupstructure to manage the strongindustry positions it now holds. As of 1st March, DNV’s operations arecarried out through three separate companies -DNV Maritime and Oil & Gas, DNV KEMAEnergy & Sustainability and DNV BusinessAssurance. Each company in the DNV Grouphas a dedicated leadership team.

CEO Henrik O Madsen has become CEOof the DNV Group, which now has more than10,000 employees and has offices in 100countries. The company has a strong footholdin the US, where DNV has 1,700 employees,as well as in China where it has more than1,200 employees.

“Historically, DNV has been strongest inthe shipping industry and this is still truetoday. Our solid base in the maritime industryhas allowed us to branch out into the oil andgas sector, where we now have a firmlyestablished presence.

“From there, we have expanded intocleaner energy and built up our work incertification. Now we are further expandinginto the fields of power generation andtransmission, gas distribution and sustainableenergy use by joining forces with KEMA,”explained Madsen.

DNV Maritime and Oil & Gas,headquartered in Oslo, Norway, providesservices to DNV’s traditional core markets.The company has a strong foothold in theoffshore and oil & gas sectors. It is headed by

CEO Remi Eriksen, the former COO ofDNV’s Asian operations.

Tor Svensen continues in his role aspresident of the maritime and oil & gasdivision.

DNV KEMA Energy & Sustainability,headquartered in Arnhem, the Netherlands,provides services covering the entire energyvalue chain from energy source to end user.The company is headed by Thijs Aarten, theformer CEO of KEMA.

DNV Business Assurance, headquartered inMilan, Italy, has operated as a separate legalentity in DNV since 2010. It is one of theworld’s leading certification and is headed byLuca Crisciotti, the former director ofoperations of DNV Business Assurance,division Asia and Australia. �

DNV splits into three divisions

TO




This was the theme that ran throughthis year’s annual meeting of GL’sHellenic technical committee, heldin Athens on 8th March.

The dramatic increases in fuel prices, newregulations and an increased awareness of theimportance of protecting the environment areleading shipbuilders, designers and owners topush against the established boundaries,developing smarter ships for tougher times.

Every year, this meeting brings togetherrepresentatives from the Greek maritimecommunity to hear and discuss presentationsfrom both GL and external experts.

Dimitrios Korkodilos, the chairman of thecommittee and Athanasios Reisopoulos, GL’sarea manager for Southern Europe, joined withthe CEO of the GL Group Erik van derNoordaa to welcome the participants.

The shipping industry was still goingthrough a difficult period, Matthias Ritters,GL’s region manager Europe/MiddleEast/Africa noted.

Looking over the status and outlook for theshipping markets in 2012, the persistentweakness of the world economy and theoversupply in all segments would continue tohave a significant impact, Ritters said.

In shipbuilding, contracting at South Koreanyards had been relatively strong in 2011, hesaid, but even so there was significant capacitystill idle at both South Korean and Chineseyards.

Chinese yards had increased their capacityover the past years and were taking steps tofurther diversify their product portfolio, suchas large container vessels, LNG carriers andoffshore vessels.

The futureLooking ahead, he said, the impact of newenergy efficient ship designs would be felt,while over capacity would put furtherdownward pressure on newbuilding prices.

Fridtjof Rohde from GL’s consultingsubsidiary FutureShip in his presentation‘Chances of Improvement’ looked at how,even in the tight conditions facing the industrytoday, there are many opportunities for findingand exploiting efficiencies to save fuel andmoney.

He said that the use of new computationaltechniques has opened up the design space forshipping, both in the development of newdesigns and in the ability to makeimprovements during conversions or upgrades.

Upgrades to propellers, improving the wakefield and appendages, and installing new‘smart’ software systems such as FutureShip’sECO-Assistant, could significantly improve avessel’s performance. While in newbuildings,the use of computational fluid dynamic (CFD)techniques to optimise the hull form of anexisting design, selecting the right engine and‘smarting up’ auxiliary systems, could result inimproved competitiveness and a better bottomline.

Aristidis Efstathiou, GL businessdevelopment manager area Southern Europe,concluded the meeting with his presentationson ‘SEEMP: Introduction and

Implementation.’ Efstathiou, highlighted the fact that the

SEEMP will soon become mandatory for allvessels (larger than 400 gt) at their first IAPPrenewal, or intermediate survey after 1stJanuary 2013.

In order to support its clients, GL hasdeveloped a clear guidance on the form andimplementation of the SEEMP. He showedhow GL’s user friendly standardised templatesand energy management expertise could makeit easier for a vessel’s operators to create aSEEMP, either as a stand alone document oras an integral part of a broader managementsystem.

New members of the committee includedMichael Androulakakis, technical manager ofAvin International, Chondros Pantelis,technical manager of Efnav Co, GeorgiosKavounis, technical manager of AllseasMarine, Dimitrios Kyriakakos, technicalmanager of Goldenport Shipmanagement,Kostas Maounis, managing director ofPhoenix Energy Navigation, Spyros Psychas,technical manager of Odysea Carriers andStylianos Vatistas, technical manager ofNavarone.

GL discusses thefuture of shipping at

Greek meetingHamburg-based class society Germanischer Lloyd (GL) has said that its goal was to

identify and seize chances for improvement in a difficult business environment.

Hellenic Technical Committee Speakers (from left to right): Christian von Oldershausen (GLsenior vice president global sales), Matthias Ritters (GL region manager Europe/MiddleEast/Africa), Nicholas Skiadaresis (managing director of ENES Marine Service), AthanasiosReisopoulos, (GL area manager for Southern Europe), Dimitrios Korkodilos (managingdirector of Andriaki Shipping and chairman of the committee), Erik van der Noordaa (GLGroup CEO), Dr Tjerk de Vries(senior executive vice president classification) and FridtjofRohde (GL FutureShip).

TO


He said that owners were asking –how can I save money by usingthe new conventions? How do Iavoid a lot of additional expense

in complying with these conventions?Boardley noted that port state control was

increasingly looking at the managementsystems on board a vessel in an effort to checkthat the boxes are not just being ticked andthen forgotten about.

In ship design, gone are the days ofplanning for 10 years hence, as shipownerswant an eco-friendly, efficient ship now. Heexpressed fears that the EEDI calculationscould lead to the design of an underpoweredvessel.

LR is currently working on eco systems anddesigns as Boardley believed that buyerswould return to the shipbuilding market bynext year. More designers are looking atdesign systems, such as computational fluiddynamics (CFD), even for redesigns. Forexample, a lot more work is undertaken todayon optimising the vessels and their engines, hesaid.

Boardley will take the chair at IACS in Juneof this year and said that his agenda was topush the association into playing a more



Owners looking foreco-friendly vessels

At a recent presentation, Lloyd’s Register’s (LR) marine director Tom Boardley tried toanalyse the future of classification as he saw it in today’s difficult market environment.

significant leadership role at the IMO, as hefirmly believed that self-regulation worked inthe shipping industry.

“IACS needs to step forward again with alouder voice, since the EU has recognised theassociation as a legal entity,” he said.

New standardSpeaking of the new marinised ISO 50001standard, Boardley said that it delivered realpayback in terms efficiency, especially in thetanker sector in which OCIMF is developingguidelines. He described the new standard as“similar to SEEMP”.

Basically, the ISO 50001 standard enablesorganisations to improve energy efficiency byestablishing an energy management system.

Through LR’s certification, gap analysisand training services, the class society saidthat it could help an owner, manager, oroperator to gain certification to the standardand help ensure that the management systemmeets the requirements.

LR explained that ISO 50001 is a certifiablevoluntary international standard that enablesorganisations to ‘establish the systems andprocesses necessary to improve energyperformance, including energy efficiency, use

and consumption’. The requirements of the standard are similar

to any management system and can be easilyintegrated into a company’s existingmanagement system.

Implementation of an energy managementplan can help -:� Develop a baseline of energy use. � Actively manage energy use and costs. � Reduce emissions without negatively

affecting operations. � Continue to improve energy use/productoutput over time. � Incorporate specific energy efficiency plans

like the Ship Energy Efficiency Plan (SEEMP) into a corporate energy management system.

LR explained that the benefits of gaining acertificate can -� Cut costs through increased efficiency. � Reduce energy security risks through

improved energy performance. � Increase stakeholder confidence (eg oil

majors) and employee engagement due to organisational commitment to an integratedclimate change emissions reduction strategy.

� Create competitive advantage through the implementation of industry best practices, eg OCIMF energy efficiency guidance, TMSA.

� Improve productivity and compliance. � Formalise policies. � Integrate easily with existing systems and

Standards such as ISM, ISO 14001 and the SEEMP.

LR said that any shipping company regardlessof its size and range of activities can becertified against ISO 50001.

As for LR becoming involved, the classsociety said that it could – � Conduct a gap analysis to ensure that your

energy management system meets the requirements of the standard.

� Provide certification against ISO 50001 to enable an owner to increase his or her energy performance and reduce the

LR’s marine director Tom Boardley.


organisational energy security risk. � Provide training to help educate staff: LR

offers both public and in-company training,including customised training solutions.

Hector Sewell, LR’s head of marine sales andmarketing said that there was “a lot moreinnovation in the market and the technologistswere getting the ear of the financiers.”

Today, a class society needed to conductquick engineering appraisals at the pre-contract and contract stages. “Engineers knowthe envelope of existing rules and how to helpsatisfy those rules,” he said. He also thoughtthat risk assessments were no longer thecomplete answers.

He urged owners looking to order vessels toemploy class before the finance and contractstage to ensure the design process is a qualityoperation. By and large, he said that LR’sclients prefer to go by the rules in place whenconsidering a newbuilding.

ECA calculatorLR has also recently introduced an ECACalculator, a tool which is claimed to assistwith strategic planning for SOX compliancewith MARPOL Annex VI, Regulation 14.

At present, the majority of vessels choose tocomply with the current 1% ECA requirementby operating with a fuel of lower sulphurfigure content where required. In the majorityof cases this is residual fuel oil. In the future,

however, in order to meet the 0.10% and0.50% maximum allowable sulphur contentsrequired within an ECA from 2015 onwardsand in all other areas from 2020/2025respectively, distillate fuel is likely to be used.

Crucially, however, MARPOL Annex VIallows, under Regulation 4, the use of anequivalent compliance method, which is atleast as effective in terms of emissionsreduction as the levels required by regulation14 (which limits the sulphur content of fuel).One of these methods is the use of an ExhaustGas Cleaning System (EGCS).

As a result of the current and impendingsituation, (ie 2015 = 0.10% limit within anECA and 2020/2025 = 0.50% outside an ECA)operators may need to evaluate their positionin terms of SOX compliance costs andalternative options, LR said.

Decisions can be affected by a number offactors, including the size and type of the fleet,the time spent within an ECA, potentialintroduction of additional ECAs in the future,the relative cost of installing an EGCS (andpayback period versus age of the vessel), thecost of fuel and price differential betweenfuels of different sulphur contents and manymore.

In this complex environment, somedecisions may affect the viability of a vessel’sservice or operation. To assist with makingsuch strategic decisions (which may involve

either fitting an exhaust gas cleaning system,or operating on distillate fuels), LR developedthe ECA Calculator.

Assuming a core (but realistic) operationalscenario and using inputs, which are easilyavailable, the ECA Calculator projects the costfor the different scenarios in the future and, asthe reduced fuel sulphur content requirementsenter into force, allows for different fuel pricescenarios to be used.

Also, parameters which have increasedimpact on the decision making process and,quite often, are associated with a high degreeof uncertainty, can be easily adjustedproviding an instant update of the results. Withthe ECA Calculator, LR said that it aimed toprovide a tool to support a company’s strategicplanning.

Ultimately, however, the input and decisionsare left with the user of this tool. The toolshould be seen as a relative and comparativeguide for reference and not absolute in its finaldetermination.

The main output of the ECA Calculator is afuel cost projection using either exclusivelyfuel switchover (as per Regulation 14) or anEGCS (as an equivalent compliance method).The EGCS investment is also evaluated interms of Net Present Value (NPV) for whichthe payback period is calculated.

In addition to these main outputs, otheruseful information is calculated at differentstages of the tool, such as annual fuelconsumption figures, average cost breakdownsfor key periods, etc.

It essentially provides an estimate of theannual fuel consumption, taking into accountmachinery types and operational scenarios. Bycombining the annual fuel consumption with asimplified fuel price model (which isdependent on price scenarios and cost ofdifferent types of fuel required forcompliance), the future fuel cost is projected,based on present fuel consumption and prices.This is compared to the fuel cost using anEGCS. The EGCS investment is thenevaluated by considering potential fuel costsavings as positive cash-flows.

The ECA Calculator is designed toaccommodate up to six different cases,compared side by side. This allows quick comparison and evaluationof: � Different ships in the fleet; � The same ship but in different operational

scenarios and time spent within an ECA; � The same ship but with different EGCS

configuration or type; � A combination of the above.



ECA calculator mechanics. Source: Lloyd's Register. TO


O

INDUSTRY - PIRACY

The pirates have notgone away

In the face of less reported piracy attacks in the Indian Ocean/Gulf of Aden regionduring the last few months, experts have warned against complacency

saying that the problem has not gone away.

This was illustrated by the hijackingof a chemical tanker in March ofthis year. Although the number ofhijackings have been drastically

reduced – from March to December 2011there were just three- the ransom level nowdemanded is spiralling as the pirates becomemore desperate.

Capt Philip Haslam, Chief of Staff EUNAVFOR, at the recent Navigate/IPTAChemical and Product Tanker conference saidthat the use of private armed guards had madea difference by way of alerting the military toa vessel’s exact location when under attack, orthreat of attack.

He claimed that around 70% vessels passingthrough the area were adhering to BestManagement Practice (BMP) - others claimthe figure is nearer 80%. However, we warnedagainst what he called ‘tokenism’ that is justagreeing to comply with BMP withoutactually doing anything about it, or justaddressing it to a minimum, thus claiming tobe compliant.

He also said that the shipping industry,including the authorities, needed to weigh upthe cost of protecting vessels in the High RiskAreas (HRA) against the economics ofproviding such protection.

Vessels at designated anchorages wereproving to be cause for concern at EUNAVFOR. For example, one of the major

concerns is a possible attack in the FujairahAnchorage, where normally around 100vessels are gathered at any one time up to 25miles offshore.

A precedent has already been set with the

hijacking of the chemical tanker FairchemBogey while at anchor in Salalah, CaptHaslam said. In this particular case, both theCitadel and BMP proved to be ineffective.

Off Fujairah, vessels anchor with theirembarkation ladders down and are usuallywell lit. The local UAE Coastguard patrols ofthe area were of an unknown frequency andduration, he warned.

He said that in general, while port securitywas good, anchorage security was unknown inthe area. Illustrating his point, Capt Haslamsaid that last year there was a pirate attackreported within 65 miles of Fujairah. “Thestrategic effect of pirates in Fujairah isunthinkable,” he said.

He concluded by saying that the piracysituation as a whole needed legal closureaided by Masters’ testimonies. He also calledfor greater efforts to trace the ransom money,once it was paid.

Ashore, alternative livelihoods needed to bedeveloped to give the local people analternative to joining the pirate gangs.

EU NAVFOR has signed up to continuenaval patrols until at least 2014. This monththe force’s strength will be 10 naval vessels.

Speaking at the same conference, HarmutHesse, special representative of the IMO’ssecretary general for maritime security andanti-piracy programmes, said globally therewere 544 attacks in 2011, compared with 489the year before, a rise of 11.3%.

Total Average Number

2010 $79.8 mill $3.19 mill 25

2011 $146.2 mill $4.87 mill 30

2012* $9.4 mill $4.7 mill 2

Ransoms

Source - EU NAVFOR.

*To beginning of March.


EU NAVFOR - Captain Philip Haslam.


INDUSTRY - PIRACY

Looking at the figures on a regional basis, inSoutheast Asia and the Malacca Straits, therewere 113 and 22 attacks reported, comparedwith 134 and zero respectively in 2010.

West Africa saw the biggest jump to 61

attacks last year, compared with just 14 in2010.

As for East Africa, including the Gulf ofAden/Indian Ocean areas, there were 287 in2011 as against 172 the year before.

Speaking specifically at the IndianOcean/Gulf of Aden situation, he said that the2011 pirate success rate went down to 33 fromthe 50 recorded in 2010 (11.5%, comparedwith 29%). The number of vessels held bypirates fell from 45 as at January 2011 to just14 by November last year and falling by afurther one by the end of December.

Vessels heldAt the end of last year, 13 vessels togetherwith 261 seafarers were being held, comparedwith 28 vessels and 656 seafarers at the end of2010. As of March this year, the number ofseafarers held hostage had dropped to 246, butthe number of vessels remained the same.

Hesse, said that the reasons for the apparentsuccess in the Indian Ocean/Gulf of Adenregions were:- � Naval forces patrol. � LRIT data provision. � Improved guidelines and BMP

implementation. � Imprisonment of 1,000 pirates and several

hundreds lost. � The use of PCASPs on board ship. However, he warned that the consequences ofthese actions had lead to the pirates expandingtheir geographical reach, for example, up to

1,750 miles off the Somali coastline, or 2.8mill sq miles of ocean, plus the increased useof ‘motherships’ often captured vessels anddhows.

The increase in the number of attacks seen

since 2005 has led to several IMO and UNSecurity Council resolutions and the formingof the Contact Group on Piracy off the Coastof Somalia (CGPCS), the Gulf of AdenInternationally Recommended TransferCorridor (IRTC), the Djibouti Code ofConduct (DCoC) and the Kampala Process.

He explained that the DCoC was formed inJanuary 2009 and today 18 of the 21 states in

the region are members. Its aims are to co-operate in the investigation, arrest andprosecute suspected pirates; interdict andseize; rescue vessels, people and property; andto agree a conduct for any shared operation.

The so called ‘four pillars’ are theimplementation of national legislation;establish law enforcement/coastguardcapability; capacity development throughtraining and other technical assistance and theimprovement of maritime situationalawareness.

In addition, information sharing centres arebeing set up, such as the MRCC in Mombasa,RCC in Dar es Salaam, a regional securityinformation centre in Sana’a, Yemen and aregional training centre in Djibouti, which isdue to be opened by the end of this year.

He said that the IMO’s guidelines werecontinuing to be revised, as was BMP, now inits fourth edition, with more experiencegained. In addition, the IMO is working onguidelines to assist in the investigation ofpiracy and armed robbery against ships.

Interim guidelines on the use of PCASCs onboard ship in the HRA will be reviewed. Theyare split into three circulars aimed atshipowners, flag states and coastal states. Hesaid that around 25% of all vessels transitingthe HRAs embark armed guards.

Under MSC 89 the use of armed guards wasdeemed to be the sole responsibility of flagstates, although he said port states may havedifferent rules in place.

Future action by the IMO includes a


IMO - Harmut Hesse.

SAMI - Peter Cook.


INDUSTRY - PIRACY

ministerial DCoC signatory meeting in May ofthis year and a conference on counter-piracycapacity building. MSC 90 will include ahigh-level segment on arms on board ships.

He concluded that there were manyinitiatives taking place to bring Somalia intothe maritime and social internationalcommunity in an effort to dissuade its peoplefrom turning to lawlessness for a living.

Financial burdenPeter Cook, founder and director of SecurityAssociation for the Maritime Industry (SAMI)addressed the financial burden of Somalipiracy to the maritime industry last year.

He said that the total cost of anti-piracyinitiatives to the maritime industry in 2011was $5.3 bill. This was split between - � Total cost of increasing speed when

passing through an HRA = $2.71 bill.� Fitting of security equipment and hiring of

private maritime security companies = $1.11 bill.

� Extra insurance = $635 mill.� Vessel re-routings = $583 mill.� Ransom payments = $160 mill. � Labour costs = $195 mill. “And what of consequential losses”, he asked.

Costing the methods for countering piracytaken from figures taken from an OceansBeyond Piracy (OBP) report, he said that thethree naval coalition forces, plus other forcescost around $1.3 bill.

Taking around 80% of the 42,450 vesselstransiting the HRA each year utilise BMP 4effectively, including the use of citadels coststhe industry $4.2 bill, while a significant useof PMSCs for vessels transiting the HRA was$531 mill.

Currently SAMI has 130 members out ofthe more than 200 PMSCs claiming to offeranti-piracy solutions in and around the IndianOcean region. Cook said that the growth incompanies was expediential with about threeto five per week springing up.

Demand growth for PMSCs is running ataround 25% and Cook claimed that reputablefirms were having to turn away business, asaround 90% of the unsuccessful attacks weredeterred by armed security teams, accordingto EU NAVFOR and no vessel had beensuccessfully hijacked with an armed securityteam on board, thus far, Cook claimed.

The attraction for PMSCs is that they cansee their income grow by 350% per annum inthis fast evolving market. For example, SAMImembers conduct some 95% of the armed and5% of the unarmed vessel transits in the HRA,amounting to about 1,500 per month.

As for the question of regulating this

fledgling industry, Cook said that there was amajor drive by its membership for self-regulation, which he claimed “….would bemore nimble and responsive than a centralisedgovernmental organisation.”

The conference’s chairman Capt Ian Finleyof the IMO countered that any accreditationshould be undertaken by a legislative body, ashe said that a fleet may have vessels attachedto different flag states.

Cook said that the future lay in accreditingSAMI members giving potential contractorsthe ability to look at reports via theassociation’s licensing process. PMSCengagement contracts should be used, such asBIMCO’s GUARDCON.

He also saw the need to formulate a trainingand education structure for PMSC personnelto put the maritime security industry under amore professional footing. SAMI should alsorepresent this sector to industry bodies andnaval coalition forces to improve relations andto provide information exchange for betterintelligence gathering.

Also in the future, Cook saw the need tointroduce an equipment, technology &hardware (ET&H) division within theassociation to promote a more ’holistic’approach to maritime security and takeadvantage of new technologies designed tomitigate the risk of maritime crime.

He also stressed that the association was notjust trying to address piracy off East Africa, asthe volume of world trade is due to increaseby 50% over the next 20 years, while at thesame time, the strength of western navies willshrink by about 30%.

Offshore R&D is now taking place inalmost inaccessible areas, which will bedifficult to police and with the world’sincreasing population, cargoes will becomeincreasingly more valuable, putting hugepressure on ports worldwide to cope withsecurity.

Legal aspectsThe last word on piracy at the conference wasleft to Ince & Co’s Stephen Askins, himself anex Royal Marine.

He outlined the onus placed on the Masterwhen making a decision as to whether totransit the HRA and referred to the case of thebulker Triton Lark and CONWARTIME 1993,which was recently the subject of aCommercial Court decision.

In this particular case, the Court consideredthe true construction and implementation ofthe CONWARTIME 1993 clause in atimecharter on the NYPE form (Pacific BasinIHX Limited v Bulkhandling Handymax AS ).

Bulkhandling was represented by Ince & Co’sMichael Stockwood and Katy Hanks.

Triton Lark was chartered to carry a cargofrom Hamburg to China, via Suez and theGulf of Aden. The defendant owners refusedto proceed on that route, due to the risk ofpirate attack and instead proceeded via theCape of Good Hope. As a result, extra costswere incurred, which a Tribunal held shouldbe borne by the charterers. The charterers thenappealed.

According to the various articles writtenconcerning this case, this appeal centred onthe construction of sub-clause (2) ofCONWARTIME 1993, in particular as to:(i) The meaning of the words “may be, or are

likely to be, exposed to War Risks”.(ii)Whether on the facts owners had made the

reasonable judgment required by the clause.

(iii) Whether the clause gives owners a discretion and if so, whether they are obliged to make proper enquiries before exercising it.

The charterers’ appeal was allowed. Ownerswere required to show a ‘real likelihood’,based on evidence rather than speculation, thatthe vessel would be exposed to acts of piracy.A refusal of orders required owners to makean objectively reasonable judgment as towhether such a real likelihood existed. Inorder to do this, all necessary enquiries mustbe made. If owners make enquiries, whichthey consider sufficient, but do not make allnecessary enquiries, the judgment may still beobjectively reasonable.

The judge recommended that the award beremitted to the Tribunal in order for it toreconsider whether, in owners’ reasonablejudgment, there was a ‘real likelihood’ that thevessel would be exposed to acts of piracy.

When the question arises - do I have to go?- in the case of a Master refusing to transit theGulf of Aden, or Indian Ocean, according toConwartime – ‘War risks’ – includes acts ofpiracy. ‘The vessel shall not be ordered to or….through…any area….where it appears thatthe vessel in the reasonable judgement of theMaster and/or the owners, maybe, or are likelyto be, exposed to War Risks.’

A Master can refuse if in his/her reasonablejudgment it -“maybe dangerous, or are likelyto be or to become dangerous to the vessel,her cargo, crew….”

As to the question on whether to deviateaway from the area, thus prolonging thevoyage, here the key question is whether thereis a real likelihood that the vessel would beexposed to acts of piracy in the sense that theGulf of Aden will be dangerous on account of




INDUSTRY - PIRACY

the acts of piracy, as the judge said. (The case summary can be viewed on Ince & Co’s website).

Askins warned that any decision must bebased on evidence and not speculation, while‘dangerousness’ depends on facts and will turnon the likelihood that piracy might occur andowners can have regard to seriousness ofconsequences.

According to the BIMCO Piracy Clause-….’The Vessel shall not be obliged to proceed,or required to continue to or throughany….area or zone….which in the reasonablejudgement of the Master and/or owners isdangerous to the vessel…. due to any actual,threatened or reported acts of piracy…whether such risk existed at the time ofentering into the charterparty…..’

If an owner refuses to allow his vessel totransit an area deemed at risk, then thecharterer must give alternative voyage orders.However, if an owner consents to the passage,the charterer must pay any reasonable extracosts for protection and the possible use ofsecurity guards and pay for hire for lost time.If the vessel is seized by pirates, then the hireis payable for 90 days, under BIMCO’s clause.

Turning to the use of firearms, Askins

explained that in the UK, licenses and permitsfor the carriage of firearms are contained inthe Fire Arms Act of 1968. Under Section 5(Licensing), the applicant needs an existingcontract and will have to have carried out arisk assessment. Details of the weapons to becarried and the personnel delegated to carrythem need to be submitted. For Export Controllicenses, local end user certificates need to beattained.

He warned that when a company was facinga crisis management situation, its aim shouldbe to minimise financial losses and tosafeguard its assets. In addition, negativereaction needs to be minimised and anypersonal liability needs to be reduced.

The main areas of concern once a vessel hasbeen hijacked is the possibility of generalaverage being declared where there is morethan one cargo owner involved. Anotherconcern is the possible low value of the vesseltoday, compared with the ransom beingdemanded and also the exclusion of all thestakeholders in the negotiating process couldcause problems, Askins said.

He also said that choosing the right securitycompany is paramount. Here IMO Guideline1405 should be adhered to and the personnel

involved should have the relevant experience.All the parties involved should have a fullunderstanding of BMP and a knowledge of thecompany’s structure plus the extent of theinsurance cover.

Following an incident at sea involving apirate attack, possible issues for armed guardsto be conscious of, is damage to the vesseland/or its cargo, death or injury to the crew,death or injury to third parties, the possibilityof criminal liability and any delay to thevessel’s voyage directly caused by the securitycompany.

Askins was involved with the drafting ofBIMCO’s new GUARDCON clause. He saidthat the key areas in this particular clause werethe contractors obligations, the Master’sauthority, insurance and liability and what iscalled ‘knock for knock’.

He concluded by saying that a lot ofresponsibility is now being put on the owners’shoulders at a time when many stakeholdersare becoming involved in the anti-piracydecision making, such as whether to avoid thepiracy areas altogether, to put armed guards onboard, or to do nothing. “The cargo ownersand charterers have been given a bigger stickagainst the owners,” he warned. TO


INDUSTRY - PIRACY


According to Harmut Hesse, specialrepresentative of the IMO’ssecretary general for maritimesecurity and anti-piracy

programmes, also speaking at theNavigate/IPTA Chemical and Products Tankerconference, there were 61 attacks last year offWest Africa, compared with just 14 in 2010.

However, the Gulf of Guinea pirates aim istotally different in that their goal is to stealcargoes while vessels are at anchor and in thecase of tankers, transfer the cargoes in a ship-to-ship transfer (STS) operation, rather thanhold out for ransoms.

To illegally take cargoes using this method,medium size vessels are needed, most ofwhich come from Nigeria. Once transferred,the cargoes are then taken to Nigeria, orCotonou in Benin.

One analyst recently told Bloomberg thateight vessels were attacked last February,raising the total to 12 for the first two monthsof this year.

Tanker Operator talked with RichardMcenery of Ocean Protection Services (OPS)about the growing problem and howcompanies, such as OPS, can help.

He acknowledged that it is a lot more

difficult for vessels to enter the territorialwaters of the Gulf of Guinea with Westernsecurity guards. He said that in most cases,OPS uses local national navies. He alsowarned that many PMSCs would be trying tooffer the same services, as seen in the IndianOcean/Gulf of Guinea.

However, he said that the local navies havebeen doing a good job not to warrant PMSCsworking in the area. It is only in the lastmonth, or so that the situation started tochange in favour of the use of PMSCs.

Last resortCountering criticism that private armed guardswould only escalate the problem, he said thiswould only be a problem if PMSCs usedsecurity guards with no understanding of therules for the use of force, as firearms wouldonly be used as a last resort.

As with the Indian Ocean/Gulf of Guineasituation, Mcenery said that it would definitelyhelp by having PMSCs on vessels, as theycould liaise and co-ordinate operations withthe local naval forces. However, he said that atpresent, he would only recommend the use ofarmed guards on board those vessels already atanchor.

One commentator recently said that theNigerian vessels could be easily pinpointedusing LRIT and/or AIS, but as Mcenerypointed out, the pirates usually switch allcommunications off, including the AIS, duringan operation.

He said that he didn’t think that this areawould become as big a hunting ground forpirates compared with East Africa, as the Gulfof Guinea tends to be a congested area. Asthere will be more vessels in the area, the localnavies will have an easier task in identifyingthe pirates.

Mcenery recommended that all vessels havea risk assessment undertaken if they are toenter the Gulf of Guinea in much the sameway as vessels transiting the IndianOcean/Gulf of Aden.

He explained that thus far, BMP4 was onlymeant for protection against Somali pirates,however, many of the procedures could beused for vessels in the Gulf of Guinea. Thenew BIMCO clause GUARDCON onlyapplies to security guards on vessels and doesnot specify the area of operation. However,this may change, Mcenery said.

Surrounding countries could not solve theescalating problem unilaterally, but will have

Gulf of Guineaproblems hot up

While most of the world’s anti-piracy efforts seemed to have been focused on the IndianOcean/Gulf of Aden areas, problems in the Gulf of Guinea located on the other side of

the African continent have escalated.

��


april 2012 l TANKeROperator 33

industry - piraCy

to join together and create a unified naval

coastguard unit to tackle it, Mcenery said.

OPS is currently operating out of Lome,

Togo and Tema, Ghana and other countries are

being approached, but at present it is difficult

to get countries to allow PMSC operations on

their soil.

He said that future IMO initiatives should

include the helping of PMSCS open dialogue

with Indian Ocean bordering countries to

allow the free passage of armed guards

through their ports and harbours, which in turn

would make it cheaper for the owners using

their services.

Another factor working against the owners

is the cost of insurance. He said that OPS is

working with the insurance industry to

persuade insurers to offer a financial incentive

to those owners and operators using PMSCs.

“I can see this coming into effect soon,” he

said.

Finally, Mcenery thought that regulation

was needed to put maritime security

companies firmly on the map. He said that he

fully supported SAMI’s efforts to enable the

industry to be properly regulated, as he

thought that there were around 200 companies

operating unlawfully.

Call for action

Nautilus International has voiced concern

about an increase in violent attacks on

shipping off West Africa – and said that is to

urge shipowners to declare the area an official

high-risk zone.

The Union says it is disturbed by such

incidents as the recent hijacking of a reefer

vessel said to be the first case in which

Nigerian pirates have taken crew members off

the ship to be held hostage.

In another recent incident off Nigeria,

heavily armed pirates attacked an anchored

chemical tanker in Lagos roads and assaulted

the master before stealing his personal effects.

They forced the crew members to sail the ship

to a location around 80 to 100 miles south of

Lagos, where the pirates stole cargo from the

ship in a lightering operation.

Nautilus general secretary Mark Dickinson

said that the Union is calling for an urgent

meeting of the UK’s national warlike

operations area committee (WOAC) and is

also urging the International Transport

Workers’ Federation (ITF) to do likewise for

the International Bargaining Forum (IBF)

WOAC.

Following this, the IBF has declared a HRA

for the territorial waters of Benin and Nigeria.

The designation came into effect on 1st April

2012 in order to allow ship operators to make

any necessary preparations.

It affords the same benefits and protections

to seafarers in those areas as the HRA in the

Gulf of Aden and around Somalia, including:

the need for enhanced security measures;

advance notice of intent to enter the area; the

right to refuse to enter it; and a doubling of the

daily basic wage and of death and disability

compensation while within the area of risk.

The HRA provisions apply to all ships

operated under an IBF agreement. The ITF’s

Fair Practices Committee steering group will

decide on whether to also apply them to all

ships under non-IBF ITF agreements. IBF

agreements on high risk areas also provide an

indicator of good practice to national flag

registers. TO

It takes much the same successful formatas in previous years with a mixture ofmeetings, seminars and dinners, but notforgetting the social element.

Intertanko said that registrations for this year’sevent were still open.

“We sincerely hope that as many of you aspossible will join us in Singapore for thisyear’s main tanker industry gathering – a placeto see old friends and make useful newcontacts, and to catch up on what makes ourindustry tick,” the organisation said.

Despite rising costs for the hosting of suchevents year on year, Intertanko claimed to

have been able to control costs with the resultthat the cost to members will remain the sameas last year, with special discounts for thosebooking early.

Although the exact scheduling will beupdated regularly on both the weekly newsbulletins and on the association’s website, theinitial itinerary says that the executivecommittee meeting and council dinner, forcouncil members only, will be held onWednesday 9th May.

On Thursday 10th May the council meetingwill be held, followed by the annual generalmeeting, which will be open to all members

and associate members. This is followed bywhat for some is the highlight of the event, thegala dinner, which is open for all registereddelegates.

On Friday 11th May, the event concludeswith a tanker seminar and a tanker charteringseminar, complete with a tanker event tabletop exhibition.

Invited to open the seminar is Singapore’sMinister of Transport, Lui Tuck Yew andamong the latest confirmed speakers at thetanker market session are chairman Jack Hsuof Oak Maritime; Steve Christy, E A GibsonShipbrokers talking about the crude oil tanker


INDUSTRY- INTERTANKO EVENT

Intertanko membersset to invade the

Lion CityIntertanko is holding this year’s annual event in Singapore between 9th-11th May.


��

��

INDUSTRY- INTERTANKO EVENT


market; Geir Olafsen of Inge Steenslandtaking on the subject of the chemical and cleanproducts tanker market and Petter Haugen,DnB NOR Bank, who will tackle the subjectof slow steaming.

The session will also include a presentationon the oil markets. The Piracy session willinclude a speech by Commodore BruceBelliveau, deputy Chief of Staff Operations,NATO.

As for the technical session, this willinclude presentations and panel discussions oninnovations in technology to address the needsof the tanker owner and operator in meetingrequirements on the following areas:� Ballast water management.� Air emissions.� Greenhouse gases.Confirmed panel members include: Henrikvon Platen, Saudi Shipholding and chairmanof Intertanko ISTEC Committee; HiroshiIwamoto, senior shipyard representative and Sigurd Jensen, managing director,Hamworthy Krystallon.

Further speakers/panel members will be

announced shortly, the organisation said.

Interactive sessionAn all day tanker chartering seminar will alsobe offered in conjunction with theassociation’s tanker event. This will focus oncurrent issues relevant to tanker chartering lawand practice, including the use of mockarbitrations. These popular interactive sessionsillustrate key issues in a lively and thought-provoking way, Intertanko claimed.

The venue for the event is the ConradCentennial Singapore, where a number ofrooms have been blocked booked for delegatesand their partners.

Meanwhile, the 29th session of Intertanko’sNorth American Panel took place at Stamford,Connecticut coinciding with Shipping 2012,organised by the Connecticut MaritimeAssociation (CMA). Intertanko‘s panel eventproved highly successful with 50 attendeesmade up of members, associate members andguests.

Intertanko chairman, Teekay’s GrahamWestgarth, provided the panel with an

overview of the major issues that theassociation is addressing to assist members,the most important being the financialsustainability of the tanker industry.

Jeff Lantz of the US Coast Guard (USCG)also gave the panel a presentation on the latestUSCG issues affecting the tanker industry.

David Cotterell, OCIMF director, informedthe panel about the organisation’s most recentactivities, while Kathi Stanzel, Intertanko’sdeputy managing director, provided the panelwith a comprehensive update of environmentalissues on the association’s agenda.

Intertanko’s managing director, Joe Angelo,reported on the most recent developments atthe association’s Executive Committee andCouncil meetings and facilitated a livelydiscussion on piracy.

Finally, the panel said goodbye to Richarddu Moulin, who had served as panel chairmanfor the past 13 years. The panel thanked himfor his dedicated service and excellentleadership and then unanimously electedOSG’s Robert Johnston as the new panelchairman. TO



TECHNOLOGY - SHIP DESCRIPTION

Two MAN L27/38engines to power7,000 dwt tanker

Spanish concern Empresa Naviera Elcano has placed an order for two medium-speed engines.

The main engines form part of a propulsion package for anewbuild tanker. The MAN L27/38 engines will beconstructed at the MAN Diesel & Turbo facility inFrederikshavn, Denmark and will power a 7,000 dwt asphalt

and products tanker to be built at Sedef Shipyard in Turkey. The 6-cylinder main engines will each deliver 2,040 kW at 800

rev/min. Elcano has chosen the engines as part of a MAN Diesel & Turbo

propulsion package that also comprises an Alphatronic 2000 propulsioncontrol system, an MAN Alpha VBS Mk 5 CP propeller, and a double-reduction gearbox with multiple PTO clutches operating at 1,200 kW at1,200 rev/min.

Characterised by its heavy-duty propulsion and manoeuvring powerperformance, the robust L27/38 engine series is claimed to performwell over the entire load range, offering an immediate load responseand quick acceleration.

The L27/38 is smokeless at idling, part-load and full-load, isoptimised for high-torque layout and emits low levels of NOx whileminimising fuel-oil consumption, MAN said.

The Sedef Shipyard is located in Tuzla Bay, near Istanbul and is partof the Turkon Holding Group, a large international enterprise withinterests in shipping, tourism and shipbuilding, among others.

Based in Madrid, Elcano was founded in 1942 and is involved in theshipping of bulk products. These include both solids, such as coal, oresand grain, and liquids such as LNG, LPG, oil, oil products andchemical products.

Including its global subsidiaries, Elcano is the parent company of an

international shipping group that manages its own fleet of 27 vesselstotalling over 2.2 mill dwt and include LNGCs, oil andchemical/product tankers, LPG carriers and bulk carriers.

Principal Particulars- 7,000 dwt tanker

Type………………………………………Asphalt and products

Shipyard……………………………………………………..Sedef

Length, oa……………………………………………………110 m

Length, bp…………………………………………………105.7 m

Breadth………………………………………………………10.6 m

Draft, design………………………………………………….6.9 m

Deadweight at operating draft…………………………..7,150 t

Deadweight at scantling draft…………………………...8,450 t

Trials speed…………………………………..14 kn at 80% MCR

Main engine……………………………………2 x MAN 6L27/38

Rating………………………………2 x 2,040 kW & 800 rev/min

A schematic of MAN’s L27/38 medium speed engine. A model of the asphalt/products tanker to be built at Sedef for Elcano.

TO



TECHNOLOGY - BWT INSTALLATIONS

Nynas opts for AlfaLaval BWT systems

Swedish oil products supplier Nynas has commissioned four Alfa Laval PureBallastballast water treatment (BWT) systems ahead of the BWT’s convention’s ratification.

Two were fitted on board a pair ofnewbuilding bitumen tankers whiletwo type 2.0 EX were retrofittedon board another two bitumen

tankers that Nynas operates under bareboatcharter.

Explaining the company’s decision to installthe equipment now, Nynas project manager fornewbuilding Björn Karlsson said; “I think theconvention will be ratified quite soon, whichmeans that the international regulations willmost likely take effect within the next twoyears. We at Nynas began preparing forratification about five years ago when westarted investigating options for ballast watertreatment on board the bitumen tankers wecharter.”

He said that to be prepared was the mainreason why Nynas decided in 2008 topurchase and install Alfa Laval PureBallastBWT systems on board two newbuild tankers.However, he said that the decision to invest inthe system will end up saving the companymoney in the long run.

“Our vessels typically sail in waters tooshallow for ballast water exchange,” heexplained. “That’s why we decided to buyballast water treatment systems on board twonewbuild tankers. The vessels we charter havea ballast water capacity of less than 5,000 cu

m, so we didn’t have to comply immediately.But by doing so, we avoid the costs associatedwith retrofitting the vessels later.”

Selecting a ballast water treatment systemthat meets Nynas’ criteria for health, safety,security and the environment was alsoimportant. The company has a comprehensivepolicy in place and employs certifiedmanagement systems to ensure minimalimpact of its products and operations on thepeople’s health and the environment, Karlssonexplained.

“We assessed the other IMO-approvedballast water treatment systems available atthat time,” he said. “Nynas chose PureBallastbecause we believe that it was the best systemavailable. Treating ballast water with achemical-free system is better for theenvironment than the other systems. Plus,PureBallast came with Alfa Laval engineeringsupport, equipment quality, and spare partsand service availability in our trading area.”

As one of the first companies to installballast water treatment systems on boardtankers, Nynas claimed to have blazed the trailfor other tanker owners and operators. Trailblazing is never easy, but Karlsson noted it hasbeen made much easier with the support andservice of a reliable partner.

“Nynas has a solid long-term business

relationship with Alfa Laval that spans morethan three decades,” Karlsson said. “Weappreciate the engineering expertise andsupport that Alfa Laval brings to the table. Thetwo PureBallast 500 systems we ordered in2008 for the (newbuildings) Ardea andMergus, for instance, were not Ex-approvedbecause such systems did not exist at thattime. But together with Alfa Laval, wedeveloped a solution for our vessels.”

Alfa Laval adapted PureBallast to Nynas’requirements for operation in a hazardoustanker environment with cargo at temperaturesranging from 160 deg C up to 250 deg C.Rather than installing the PureBallast systembelow deck as on vessels carrying cargo that isnot potentially explosive, Nynas and AlfaLaval decided to build a pressurised structureon the vessels’ decks. A double-doorconstruction serves as an airlock and an over-pressurised ventilation system creates a gas-free zone to ensure safe operation. Thisenabled system certification by BureauVeritas.

Support beyond designAlfa Laval support and service, however,didn’t stop after the design and certification ofthe system but continued strong throughoutinstallation. In fact, said Karlsson, Alfa Lavalwas instrumental in allaying shipyard concernsabout installation.

“The Wuhan Nanhua Huanggang JiangbeiShipyard, which built the Ardea and Mergus,is a relatively small yard with no priorexperience in working with PureBallast,” saidKarlsson.

“Alfa Laval arranged a trip to the Maweishipyard where PureBallast was beinginstalled on another vessel so our shipyardworkers could see first hand just how compactand easy to install PureBallast is.

The old adage, “Seeing is believing,’ heldtrue in our case. The interaction between theshipyard crews was priceless. It provided ourWuhan Nanhua workers with full transparencyof the installation requirements for thePureBallast system. Alfa Laval went the extraThe Alcedo was retrofitted at Falkvarv




mile for us, which really helped us a lot”, hesaid.

Another advantage was that Alfa LavalShanghai provided a natural link toPureBallast experts in Sweden in addition toquick access to local support in China. Thisgives Nynas, as well as other western-basedshipowners, close contact with experts at theAlfa Laval head office in Tumba, Sweden,while the shipyard in China has the samedirect contact with Alfa Laval Shanghai.

According to Karlsson, Alfa Laval’s globalpresence and broad competence gives it acompetitive advantage over other BWTmanufacturers who only have local agentsnearby.

Alfa Laval Shanghai commissioned thesystems on board the two newbuildingbitumen carriers at the end of February 2012.

Turnkey retrofitsFollowing the order for the newbuildings, inJuly 2011, upon recommendations fromNynas, Swedish shipowner Frederiet placed anorder for two PureBallast 500 EX, generation2.0 - the second generation of the chemical-free PureBallast systems - to be retrofitted onboard the bitumen tankers Alcedo andPandion.

Rather take on the challenge of managingthese projects, Nynas placed the job ofretrofitting the vessels in the hands of AlfaLaval sub-contractor Marine EnvironmentalSolutions (MESAB) for design, class approval, project management, integration toon board systems, installation andcommissioning services.

“The advantages of having a turnkey partnerare obvious,” said Karlsson. “It was onlynatural that we place our trust in Alfa Lavaland MESAB, the people who know the systembest.”

Karlsson said that he appreciated having aturnkey ballast water treatment retrofit partner.MESAB dealt directly with the shipyardFalkvarv, where the ships docked for routineservice. The entire retrofit process, from pre-survey and engineering survey to installationand commissioning services, took about threeweeks from start to finish.

To determine the placement of equipment,MESAB conducted a pre-survey, whichresulted in a detailed written report and 3Ddrawing of the system layout. In contrast, theengineering survey produced a set of drawingsthat enabled pre-manufacturing of all majorpiping in order to minimise vessel downtime.Installation, startup and commissioningservices ensured proper function of thesystem.

Commenting on the co-operation withturnkey retrofit partner MESAB, Karlssonsaid, “Accountability speaks volumes.”

Back in 2008 when the PureBallast systemswere ordered for the newbuildings, Nynasasked Alfa Laval to develop an Ex version. Asa result, PureBallast 2.0 EX comes withadditional safety modifications for Zone I,group IIC and temperature class T4, making itsuitable for installation on board most vesselsthat carry ignition-sensitive cargo. It alsofeatures the 40% power savings and operating

advantages, such as automatic flow control.“The reduced power consumption of the

PureBallast 2.0 makes it easier for shipyardsto work with the designed power on board,”said Karlsson. “This is especially true for ourbitumen tankers where available power is at apremium.”

The PureBallast 2.0 EX’s modular designenabled the re-use of existing ship ballastwater equipment and pipe work, which isanother big advantage for shipowners.

When talking about the best way to handle

Source: Alfa Laval/Nyas.

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on board systems, Karlsson had three words -reliability, compatibility and convenience.

“That is the way we like to work with ouron board systems. At Nynas, we strive to haveas few suppliers as possible. It is better tohave a larger scope of supply from one partnerand then let them take complete responsibilityfor the reliable operation of the equipment orsystem,” explained Karlsson. “Reputation andreliability matter a great deal to us. We’re notjust buying equipment, we’re investing in apartnership and the knowhow, expertise,resources and support that comes with it.”

Other Alfa Laval equipment fitted on boardNynas’ operated vessels include purifiers, fueloil booster unit and fresh water generators.

For the time being, Karlsson did notanticipate the placement of new orders forPureBallast 2.0 EX system, or other AlfaLaval equipment. He said that he planned tokeep a watchful eye on the four systemscurrently in operation. He concluded that thelessons learned from installing and operatingthese systems put Nynas that critical stepahead and ultimately make them betterprepared for 2016.

More than 250 PureBallast systems havebeen sold thus far, including retrofits on morethan a dozen vessels. The system was typeapproved in 2008. Selected owners choosingAlfa Laval’s system include AP Moller-Maersk, MOL, NYK, CMA CGM, BernhardSchulte and Hamburg Sud, plus variousshipyards in 15 countries.

Alfa Laval said that the system is available to meet different vessel typescapacity requirements and that the installationwas backed by a global network of

support and services.BWT state of play

At the last MEPC meeting, a lack of asampling standard delayed the convention’sratification, as the meeting was not able tomake a decision, which in turn held back someof the major flag states from ratifying it,explained Per Warg, business manager,PureBallast.

Thus far, the number of flag states needed toratify the BWT conventions has exceeded theminimum, but the amount of tonnage had stillnot met the 35% target. The IMO’s BLGcommittee will need to ratify the convention atits next meeting and then present it thefollowing MEPC meeting at the end of thisyear, or beginning of next.

As for the US, the first USCG rules areexpected to be put in place very shortlyroughly in line with the IMO’s convention,however, the second phase due to enter force

in 2016 is described as very strict. Today, Warg said that Alfa Laval’s

intelligence thought that around 1,200 systemshad been sold worldwide, as last year saw amassive intake of orders. He said that around15% of all newbuilding orders had a BWTsystem specified in the design.

Although shipyards were responsible forinstalling and integrating the systems,shipowners were specifying which system touse and were increasingly querying the typeapprovals, as it has been found that systemshad been tested in brackish and salt waters butnot in fresh water, where different reactionscould occur.

As for Alfa Laval, he estimated that thecompany had a market share of around 22%with more than 250 systems sold and around60 already commissioned. Of the UV typemarket, Alfa Laval claimed 70% of thesystems operating at below 2,000 cu m perhour capacity.

At present, the company has a capacity tomanufacture some 500 systems per year at itsbase in Denmark, but was looking to expandinto Asia. The company was also looking atthe EX market for tankers.

The company said that there were filterproblems with UV systems and that supplier’swere finding it difficult to support shipyardswhen installing the systems. Once the rush tofit systems starts, there will be a bottleneckdue to lack of drydock availability, togetherwith a lack of welders, fitters etc, while theclass societies will be weighed down with theburden of approving all of the installationsneeded.

Warg said that most owners were orderingtwo systems and that it was not a problem forredundancy purposes. He claimed that therewas little maintenance needed once a system isinstalled.



Alfa Laval’s PureBallast system.

The retrofit took aound three weeks to accomplish.TO


DNV Clean Design class notation isa voluntary newbuildingspecification which covers mostaspects of ship design and

operation. For bilge water, Clean Designstipulates a maximum 5 ppm of oil remainingin the water after treatment, prior to pumpingoverboard. MARPOL regulations stipulate 15ppm.

In 2011, DNV introduced a 5 ppm typeapproval process for marine bilge waterseparators. Alfa Laval’s PureBilge was thefirst system to obtain the new 5 ppm DNVtype approval certificate, which has also beengranted the US Coast Guard Certificate ofApproval.

According to Alfa Laval’s Pauli Kujala,previously, shipowners specifying 5 ppm havehad to take the word of the equipmentsuppliers that the system really does meet thelimit. Unfortunately, this has not always beenenough. Some systems actually have problemsreaching even 15 ppm under real lifeconditions, claimed Alfa Laval.

While claiming that their equipment canmeet the limit, it is not unknown for suppliersto simply adjust the oil-in-water monitor downfrom 15 ppm to 5 ppm, so that it functions asan oily water alarm with automatic stop.

In such cases, the equipment is notremoving the oil down to 5 ppm, as it simplyprevents it from being discharged overboard.The bilge water then goes into recirculationand fills up the bilge water tank. When this isfull, it is pumped to the waste oil tank andwhen that has filled, then the ship has aproblem. It is in situations like these thatenvironmental infringements may occur, thecompany explained.

In May 2011, the DNV 5 ppm TypeApproval Programme No. 771.60 became

available for certification for Oily WaterSeparators (OWS) for the first time.

Alfa Laval’s PureBilge system was testedaccording to this procedure and in December2011 Alfa Laval obained Type ApprovalCertificate No. P-13965 for PureBilge 2005and 5005 (2.5 cu m per hour and 5.0 cu m perhour).

Since its release on the market in June 2009,PureBilge had been tested on board shipsunder real life conditions and consistentlyachieved results below 5 ppm, the companyclaimed. The system gained type approval on12th December last year.

Two notationsDNV Environmental Class notation reduces aship’s environmental impact due to airemissions, sea discharges and accidentaldamage to the ship’s hull. The notations awardowners and operators who choose to designand operate their ships in an evironmentallysustainable manner. The aim is to reduce theemissions from each ship so that the overallenvironmental burden from shipping isreduced.

DNV Clean notation stipulates that thevessel must be designed and operated inaccordance with current and future regulationsfor protection of the environment. Technicaland management processes and procedures forcollection, transfer and storage of waste mustalso be adopted.

This notation is based on the same cleangoals but is stricter. It stipulates that theconstructional design and operation of vesselsshould be such that it minimises their impacton the environment.

Clean and Clean Design class notations areboth voluntary environmental newbuildingspecifications. Important drivers of these

policies, especially for tankers, are the oilmajors’ environmental policies, which arebecoming increasingly stringent followingnumber of environmental disasters.

As cargo owners and charterers, the oilcompanies typically demand higher thannormal environmental compliance from theshipowners transporting their cargoes, such astanker owners and owners of offshore supplyvessels. The same applies to owners buildingLNGCs and other ship types.

DNV pointed out that the image of theindividual shipowner and operator will clearlyimprove with customers and authorities,“…since the notation demonstrates that thecompany’s policy is to be environmentallyproactive in order to prevent accidentalpollution as well”.

.Clean Design aspects

Clean Design notation stipulates requirementsfor controlling and limiting operationalemissions and discharges. These requirementscover the most important environmentalaspects: Fuel tanks’ protection from groundingdamage; handling of sewage and garbage;environmentally friendly antifouling;combustion machinery emissions (NOx andSOx); use of refrigerants; Green PassportInventory for recycling the ship; handling ofballast water; handling of fuel oil; handling ofbilge water.

As stated in DNV’s ‘Guidance for theEnvironmental Class Notations Clean andClean Design’, “….for Clean Design thevessel must have bilge water holding tanks asrequired for the Class Notation OPP-F, whichmeans that they must have required capacitiesdependent on the engine rating. Themachinery space bilges must not be dischargedto sea, but be discharged to shore. Clean

TECHNOLOGY – BILGE WATER TREATMENT


Alfa Laval leads theway in bilge water

treatmentShipowners seeking DNV’s Clean Design class notation can now specify a bilge

water treatment system that is certified according to the class society’s new 5 ppm type approval process.


Design requires oil content of bilge water tobe less than 5 ppm.”

However, meeting DNV’s Clean Designrequirements for bilge water takes more thansetting the oil-in-water monitor to 5 ppm. Thetreatment system must actually achieve 5 ppm,Alfa Laval said.

Current MARPOL legislation stipulates thatseparated bilge water containing 15 ppm, orbelow oil in water can be discharged intointernational waters. In reaction to increasingenvironmental awareness in the shipping andother industries, future legislation is expected

to be more stringent, requiring the limit to bereduced to 5 ppm. For vessels trading in theGreat Lakes area it is already 5 ppm.

Since a growing number of shipowners arespecifying it and DNV now has a 5 ppm typeapproval process for bilge water separators, aMARPOL 5 ppm limit may not be far away.

IMO’s resolution MEPC 107(49), effectivefrom 1st January, 2005, for type approval ofbilge water separators for 15 ppm, specifiesthat, in addition to the removal of oil frombilge water, bilge water separators must betested with a stable emulsion (including fine

particles and a surfactant chemical). What differentiates DNV 5 ppm type

approval testing from type approval testing for15 ppm according to MEPC 107(49)?

Actually, very little. It is the same basicprocess with one very important difference. Asstated by DNV, “…the 5 ppm bilge waterseparator must be designed to operate in eachplane that forms an angle of 22.5 deg with theplane of its normal operating position.” Thissimulates a ship listing 22.5 deg.

This testing process has gone some waytowards simulating real life operating

conditions at sea. Although Alfa Lavalbelieves that it could have gone evenfurther and simulated sea heave. Thecompany saw this as confirmation of itsassertion that centrifugal separation wasthe only effective technology for bilgewater treatment on board ships.

“The gyroscopic effect of the liquidcirculating at high speed inside theseparator bowl offsets pitching androlling,” said Kujala, senior businessmanager, oily waste treatment systems,Alfa Laval Marine & Diesel Equipment.“The result is sustained high separationefficiency. If traditional static systems wereto be tested with a realistic bilge water‘cocktail’ under conditions simulating arough sea state 24/7 for 20 days, theywould immediately be eliminated.”

Many suppliers claim to provide theDNV Clean Design performance standard,but only Alfa Laval with PureBilgecurrently holds the certificate.

PureBilge is the only system on themarket that provides a cleaningperformance in real life conditions of 0-5ppm oil content in the water withoutchemicals, adsorption filter or membranes.This cleaning performance is unaffected bysea heave, oil shocks or high solids loadingand no backflushing is required, thecompany said.

Similar to Alfa Laval’s fuel oil and lubeoil separators, it offers the full automationand remote control that will be required bythe unmanned engine rooms of the future.No manual engagement is required.

The system is supplied with the fullyintegrated tamper-proof BlueBox BilgeData Recorder, which locks in critical dataand encapsulates the whole sampling line.In combination with PureBilge’s certifiedperformance, the result is assuredcompliance – not only with IMO MEPC107(49), but with the wishes of all whodemand a greener profile, the companyclaimed.


TECHNOLOGY – BILGE WATER TREATMENT

TOAlfa Laval’s PureBilge system claims to go down to 5ppm.


TECHNOLOGY- BUNKER OPERATIONS


Bunker concernshighlighted

What are the major concerns in the bunker industry?

Despite many years of trying toovercome problematic bunkerissues worldwide, problemspersist and with current changes

in legislation, they still could have farreaching effects on bunker quality if nothandled correctly.

Speaking at the recent Navigate/IPTAChemical and Products Tanker conference,bunker testing and fuel management concernLR FOBAS’ principal specialist TimothyWilson said that another year has passed withincreasing uncertainty as to the favoureddirections the shipping industry will take inorder to meet the upcoming environmentallegislations.

The revised MARPOL Annex VI gives theroad map of the step-wise reduction in thesulphur content of the fuel; for both inside andoutside the special areas called ECA–SOx.Time will tell to what extent, the changingenvironmental legislation will impact, apartfrom other things, the quality of fuels that willbe available to the marine industry. Keeping aclose look at the quality trends and statisticswill help provide a better understanding of theeffects of these changes.

Based on the samples analysed by FOBASlast year, just under 4% of the bunkersexceeded the 95% confidence limit (>95R) ofat least one or more of the parametersspecified in table 1 or table 2 of ISO8217:2010. This figure is based on thecomparison of all the analysis results againstISO 8217:2010 regardless of the fact whetherthe fuel was purchased in accordance with thelatest or earlier ISO 8217 revisions.

Off-spec fuelsWhen it comes to off specification fuels(>95R), the FOBAS experience is very clearthat most of the off-spec fuels can still bemanaged safely on board the vesselminimising potential adverse effects on themachinery plant. The suitability of the fuel isdependent on a number of factors - the extentto which the specific fuel parameter is off-spec, the type and condition of machinery andabove all the effectiveness of the fuelmanagement systems on board to prepare thefuel for use.

Due to these multiple factors FOBAScontinued to stress the importance of correctprocedures and best practices being adoptedand applied at all times from the bunker order,delivery station through to the exhaust stack.

Comparing the results against the latest ISO8217:2010 specs, gave FOBAS the advantageto see a) how many bunkers did not meet thespecs for ISO 8217:2010 in 2011 and b) whichwere the main parameters failing to meet therequired specification and particularly, forlooking ahead, determine which are thequality concerns, that may be hindering thesupply of ISO 8217:2010 of compliant fuels.

The biggest contributor to the 4% off-speccases is the viscosity for residual anddistillates fuels at 33.5%, of which 0.5%related to distillate viscosity. A surge in theslight off-spec viscosity in the last two monthsof 2011 was seen, which may be as a result ofnew blending practices to meet the newMARPOL Annex VI 3.5% limit, effectivefrom 1st Jan 2012. Higher viscosity fuels,however, may be countered by the vessel’sfuel pre-heat capacity to achieve the requiredinjection viscosity therefore the same may becritical for some vessels but for others, thehigher viscosity might not be an issue.

Failure rateSome 15% of these off-spec samples failed tomeet the required maximum sulphur contentlimit of 1% m/m for use within ECA-SOx, asper revised MARPOL Annex VI regulation14.4.2. The samples which could not meet themaximum sulphur content of 0.1% for use atberth in EU ports equates to about 7%.

In total, the off-spec sulphur content, whichfailed to meet the ECA-SOx and the EU atberth requirements for residual and gas oilsrespectively, counted to around 22 % of the4%, which is high. However, no cases of off-spec fuels - in excess of 4.50 % m/m - werenoted. With the increasing restriction ofsulphur content of the fuel, such highpercentage of off-spec samples emphasises theimportance and necessity of strictly adheringto sampling procedures adopted.

Another concern for these off-spec fuels isthe presence of water in the fuel. Water inmost of the cases was not at excessive levels,

however, FOBAS identified just under 18% ofsamples where the water content did exceedthe required limits, of which just under 2%had high sodium content, suggesting theinduction of saline water in the fuel.

About 7% of the off-spec cases were due tothe presence of the abrasive catalyst fines ofAluminium and Silicon (Al+Si) exceeding therequirements of the ordered grade. Althoughthe Al+Si contribution of the off-specs is less,the severity of their consequence if they arenot reduced to the recommended levels forengine entry can be serious in terms of enginefuel system and cylinder component damage.

Abrasive reductionFOBAS data showed the average purifierefficiency is around 60%, which suggests thatat any levels above 40 mg/kg, the ships needto put special efforts in making sure that theabrasives are being reduced by the amountrequired to meet the recommended maximumat the engine inlet of below 10-15 mg/kg.

Just above 1% of the 4% off-spec fuelswere as a result of the fuel failing the TotalSediment test parameter. It must beunderstood that potential problems associatedwith sediments are based on the nature ofsediments present in the fuel and the stabilityof the fuel, therefore it is generally difficult topredict the extent and frequency of problemsthat might occur, if at all, during the use ofsuch fuels.

This year we have seen a slight rise of justabove 1% of the 4% off specification casescaused by the presence of used lubricating oils(ULO) which may be attributed to the strictercriteria to determine the presence of ULO inthe 2010 standard. This will need to bemonitored for a longer period in order todetermine whether this is the case.

Managing the unexpected by recognisingthat marine fuel quality will remain achallenge over this next one to two decades ascurrent statistics show some variants in trends.The bottom line is that it does not change thevariants in fuel quality that can be expected.

Finally, invest in an effective bunkermanagement programme and integrate it intothe Ship Energy Efficiency Management Plan(SEEMP), Wilson advised. TO



TECHNOLOGY – BUNKER OPERATIONS

Highlighting the problems thatstill exist over bunkers, NorthP&I Club’s risk managementexecutive Alvin Forster gave a

P&I clubs take on the subject at theNavigate/IPTA Tanker conference.

The main problems seem to have beenaround for years, such as a quantity shortageat the point of loading, incorrect specificationfuel ordered by the charterers, fuel remainingon board (ROB) incorrectly calculated at thetime of onhire/offhire, fuel quality and thephysical loading of the bunkers.

What is happening? Some vessels’ crew areagreeing to an amount of bunkered fuel lessthan what was loaded and signing the bunkerdelivery note (BDN) accordingly. There arealso reports of a ‘capuccino’ effect in bunkersloaded at Singapore.

How is this happening? These incidents arestill occurring due to bunker suppliers’ allegedtricks of the trade, including allegations ofinternally redirecting fuel, false soundingtables, split tanks and aerating the fuel toincrease its volume.

Prevention - a receiving ship’s crew shouldhave company issued procedures in place(ISM) and these should be followed eachtime, for example through bunker checklists.

Codes of practice should be followed andthe crew should exercise caution when signinga BDN. In addition, letters of protest shouldbe used in commercial and MARPOL AnnexVI related disputes.

A company’s proper procedures shouldinclude the taking of full sets ofsounding/ullages and temperatures of all fueltanks (whether nominated or not) on bothreceiving vessel and bunker barge. Thisapplies to both before and after the bunkeroperation.

On board quantities should be calculatedaccurately using volume correction factors,correct densities and allowing for trim, bunkerbarges should be checked for suspicious, orimproper piping and air blowingarrangements.

And if time allows, give the loaded fuel tanks time to settle before taking final soundings.

Incorrect specification - what is happening?

Prevention is betterthan cure

P&I clubs are often left to pick up the pieces in terms of claims when a bunker stem goes wrong for whatever reason.

- Alvin Forster, Risk Management Executive, North P&I Club

The success of any bunker quality orquantity dispute will depend upon the

quality of evidence collected in support of the claim...

“

”

Depending on the charterparty, either theowner or the charterer will be responsible forordering and supplying bunkers. There areinstances where the incorrect grade, sulphurcontent, or specification of fuel has beenordered

How is this happening? Fuel bunkers maybe being ordered and arranged by non-technical personnel and/or the charterpartylacks sufficient information as to whatbunkers should be supplied, such as onlystating the viscosity.

Include a well drafted clause that providesthat bunkers supplied must meet a particularspecification and be suitable and fit for theship in question. For example; � BIMCO fuel quality and liability clauses. � BIMCO sulphur content clause. � Specify ISO 8217:2010.� Ship’s crew to thoroughly check

nomination and spec before bunkering commences.

Incorrect ROB declaration - what ishappening? Disputes relating to the amount offuel ROB arise between the owner andcharterer when finalising on-hire charges uponcompletion of a charter period. Other disputescan include the determining of ownership ofon board bunkers.

How is this happening? By the incorrectcalculation and/or declaration of ROB bunkersat the start and/or end of a charter period, orthe incorrect calculation of loaded bunkers,Wilson explained.

To prevent this, an independent bunkersurvey should be taken when going on-hireand off-hire and also consider independentbunker surveys for bunkering operations.

However, during surveys the ship’s ChiefEngineer should not absolve all responsibility

to the attending surveyor and should carry outhis or her own calculations, while the ship’screw should maintain a clear daily record oftank contents and fuel consumption.

Fuel quality What is happening? The fuel can be receivedout of specification, or contaminated, leadingto potential damage to the main and auxiliaryengines, resulting in periods of off-hire and/ordeviation while repairs are carried out,resulting in a hull & machinery claim.

This could also affect a vessel’s speed andperformance, leading to breach in the terms ofa charterparty.

How is this happening? This can be causedby the incorrect, or contaminated bunkersreceived from the suppliers, coupled with thevessel’s crew not identifying potential fuelproblems in a timely manner, or poor on boardtreatment of fuel before use.

To prevent this occurring use on board fueltest kits to carry out basic tests at start andduring bunkering, send fuel samples to anapproved laboratory and refrain from usinguntil the test results are known.

There should be a charterparty clauseinserted to allow laboratory testing but bewareof supplier evidence clauses. The vessel’screw should follow the correct on boardtreatments, such as effective set up andoperation of purifiers, clarifiers and filtration,while clear and concise on board recordsshould be kept in event of a performanceclaim.

“The success of any bunker quality orquantity dispute will depend upon the qualityof evidence collected in support of the claim,”Forster said, before adding; “be proactive withevidence.” TO


This move was announced at IBIA’sAnnual Convention, held inBarcelona last November, by itsacting chief executive Trevor

Harrison who told delegates that theassociation would become more involved inthe ongoing discussions on LNG as a fuel atthe IMO.

The potential of LNG as a fuel forcommercial vessels has received considerableattention of late. Several speakers at theconvention referred to the issue whileaddressing industry concerns about the 2015implementation of the 0.1% sulphur contentcap in bunkers used within Emission ControlAreas (ECAs).

In addition, one session was entirelydevoted to the prospects for widespread use of

LNG. While there were some cautionary voices,

the focus on LNG reflected IBIA’s consideredview that now is the time for the bunkerindustry to become involved in thedevelopment of gas powered ships.

IBIA board member Nigel Draffin is towork closely with the Society of InternationalGas Tanker and Terminal Operators (SIGTTO)to provide input into the development ofIMO’s Code for Gas as Ship Fuel (IGF-Code).

The annual convention did, however, covermany other topics of concern to both bunkersuppliers and buyers. A record breaking 170delegates registered for this event, which wasspread over three days.

IBIA chairman Bob Lintott remarked: “Thishas been a highly successful convention. I am

especially pleased that there has been livelydebate from the first to the last sessions.”

While the debates were good natured,several of the issues covered werecontroversial, right from the keynote speecheswhich put forward opposing views on theimpact of the 2015 ECA regime.

ECA viewsManuel Carlier, director general of the SpanishShipowners’ Association (ANAVE) and adirector of the European CommunityShipowners’ Association (ECSA), expressedowners’ concerns. Arnaud Leroy, seniorproject officer, European Maritime SafetyAgency (EMSA), who was also working withthe European Commission (EC) on the MarineFuels, countered with the case for continuingwith its proposals, which in some respects



Nigel Draffin addresses the conference.

IBIA to engage inLNG issues

With the surge of interest in LNG as fuel, the International Bunker IndustryAssociation’s (IBIA) board took a formal decision last year to

“become more closely engaged in LNG matters.”



TECHNOLOGY – BUNKER OPERATIONS

exceed IMO ECA requirements. Carlier said that it was likely that bunker

costs for ship operators would increase bybetween 70% and 100% while operating inECAs and that there would be a total increasein operating costs by between 25% to 40%.He asked: “Can this cost be passed tocustomers in the freight market?”

Leroy emphasised the need to enforceregulations and also pointed to claimedenvironmental and health benefits of imposingstricter sulphur limits. He also noteduncertainties surrounding the impact of the0.1% sulphur cap. He was particularlydoubtful about predictions of a modal shiftaway from shipping.

He said: “Overall, the various studies offerdiffering conclusions as to whether a modalshift is imminent, which may in part, but notentirely, be explained by the difference inroutes selected for their analyses. While theSwedish, German and ECSA studies in theirhigh price scenario mainly foresee asubstantial shift from short sea shipping toland-based modes, the COMPASS studyacknowledges that there will be a cost increase

and a change in transport volumes, butconcludes that ‘it is not expected that changesin entry/exit points, or shifts in modal balance(SSS to land) will take place’.”

This sanguine view was certainly not sharedby Interferry’s executive director of EU andIMO Affairs, Johan Roos, who in a laterpresentation strongly challenged thesuggestion that there might not be a modalshift to land-based transport once the 0.1% capwas in force.

He said that ferry operators were “baffled”by the EC’s stance. He asked: “Who cannotsee that a 30% ticket price increase will notcause a modal back-shift?”

This year’s IBIA Annual Convention willheld in Dubai, with a provisional start date of7th November.

Later, following an election, IBIA appointedRobin Meech (Marine and Energy Consulting)and Ciric Cheung (Fratelli Cosulich BunkersHK) to its board from 1st April 2012.

They replaced previous IBIA chairmanMike Ball (Gearbulk UK) and MustafaMuhtaroglu (Energy Petrol) who have servedseven and nine year terms of office,

respectively. Trevor Harrison was re-elected toserve another term as acting CEO. Theannouncement was made at the IBIA AnnualDinner in London on 20th February this yearby vice chairman Nigel Draffin who becamechairman on 1st April.

Draffin took over as IBIA chariman 1st April

TO




OW Bunker has created a regionalmanagement structure for itstrading division within NorthernEurope. The model, which has proven successful inOW Bunker’s Asian operation, is designed toensure that as the company continues toexperience exponential growth and that thetrading division is fully optimised to continueto deliver bunkering solutions for customers ina dynamic and fast-paced way.

Commenting on the move, Götz Lehsten,executive vice president, OW Bunker, said:“OW Bunker has prided itself on its ability tomake fast decisions and provide customerswith a total bunkering solution that meets theneeds of their businesses. It means respondingquickly on quotes, and putting in place an end-to-end service that gets fuel oil to the customeron time, when and where they need it, and atthe right price.

“Northern Europe is a key region for OWBunker. And as we continue to grow at such arapid pace, it is vital that we invest in moreresource to ensure that we maintain the levelsof dynamism that we are known for andconsistently delivering the high levels ofservice for our customers that our business isfounded upon.

“The new regional structure within NorthernEurope will ensure that this happens by

creating an additional layer of experiencedmanagement within each Northern Europeanregion, who have the experience andresponsibility to ensure fast decision making ata local level,” he concluded.

The regions that come under the NorthernEuropean regional management structureinclude Aalborg, Copenhagen, Hamburg, theUK and the Russian desk.

Kristian Nielsen, the current manager withinthe worldwide trading division will becomeregional manager for Northern Europe,reporting to Lehsten. Jesper Schmidt will bemanager for Copenhagen, Rune Pejtersen forAalborg, Boris Gronenberg for Hamburg,Andrew Ananiev for the Russian desk andRobert Preston for the UK and India. All themanagers will report to Nielsen.

Fujairah expansionIn addition, OW Bunker has strengthened itsposition in Fujairah and the Middle East withthe appointment of Sahar Zarghamian as abunker trader.

Zarghamian rejoins OW Bunker MiddleEast, where she started her career as a bunkertrader before moving on to work as a traderfor a derivatives company in the region.

Jesper Jervild, OW Bunker’s regionalmanager for the Middle East and South Africa,said: “Strategically, Fujairah is a very

important area of operation, as one of theworld’s top three bunkering hubs and a rapidlyexpanding port. Having highly trained staffwith a forensic knowledge of local operations,and important local business relationships iscritically important to our continued success.

“With a global presence, influential localbusiness partnerships and a strong financialbacking, our team is able to provide customerswith competitive prices and tailored bunkeringand risk management solutions that meet theprecise needs of their businesses andoperations. We have experienced significantgrowth in the Middle East in the past year andI am confident that Sahar Zarghamian willplay an important role in contributing to ourcontinued development.”

Last year, OW Bunker Middle East movedto larger premises in Dubai due to its positiverate of growth.

� Another bunker concern to open up inDubai is Cockett Marine Oil, a member of theGrindrod Group.

The South African owned supplier andtrader opened of a new office in the Emirateon 26th March 2012.

It is being managed by Chris Fletcher, whopreviously working as a senior bunker traderin the UK. He is assisted by fellow bunkertrader, Arron Rayner.

OW Bunker continues to expand

Checking bearings for degradation andlubricationKittiwake Holroyd has launchedMHC Bearing Checker, a smallhandheld device designed toprovide an instant indication ofmachinery condition. The acoustic emission-based instrument is acost-effective solution to monitoring anunlimited number of machines on a periodicbasis, the company claimed.

Based on the detection of high frequencyactivity that is naturally generated bydeterioration in rotating machinery, the MHCBearing Checker is simple to use as itsDistress® parameter removes the need formachine specific interpretations.

If Distress® is greater than 10, the userknows there is a problem and can instigatefurther checks. A dB Level is also provided,giving an indication of the overall noise of thebearing - it increases with speed of rotation,but also with degradation of the bearing, or

inadequate lubrication.As the mechanical condition of machinery

deteriorates, energy loss processes such asimpacts, friction and crushing generate soundwave activity that spans a broad range offrequencies.

By detecting only the high frequency part ofthis signal with special acoustic emission (AE)sensors, it is possible to detect minisculeamounts of activity, for example a slight rub, abrief impact or the crushing of a single particlein the lubricant.

Each measurement takes in the region of 10seconds, requires no set-up, previous historyor knowledge of machine design details, suchas bearing type, number of balls or racediameters for example.

The same Distress® interpretation is appliedacross all machine types so by ‘deskilling’technology, all maintenance professionals areempowered to take a proactive approach to

predictive maintenance, making informeddecisions quickly and with confidence.

Martin Lucas, managing director, Kittiwakegroup explained: “The MHC Bearing Checkerprovides entry level condition monitoring at aprice that makes it a feasible addition to everyengineer’s back pocket. This is a simple, costeffective means of spotting problems inbearings, gearboxes, motors and pumps at anearly stage, ultimately saving the companymoney by avoiding downtime.

“If maintenance personnel are empoweredto monitor condition themselves, identifywhere action is needed and then check that theaction taken has solved the problem, then AEhas significant advantages of cost, speed,flexibility and ease of field application incomparison to other condition monitoringtechniques. The Checker’s real value stemsfrom collating historical data and trending,” heconcluded. TO

TO



TECHNOLOGY - LUBOILS

Answers sought on‘one fits all’ cylinder

oils boastLeading Chinese shipowners are seeking further guidance on claims from certainlubricants suppliers that a mid-range Base Number cylinder oil product can meet

critical challenges set by tightening environmental legislation on the sulphur content in fuel oils.

As regulations on emissions tightenover the sulphur permissible inmarine fuels, certain lubricantssuppliers have responded by

launching single solution cylinder oils thatthey claim will perform consistently well witha wide range of marine fuels.

While seemingly attractive, shipownersoperating in the key Chinese growth marketare already questioning whether the ‘one fitsall’ cylinder proposition will stand up to thefull range of operating conditions, particularlyin the context of the slower steaming that hasbecome commonplace across the industry asowners pursue cost savings.

The reservations were voiced by leadinglubricants supplier Castrol Marine, whichadopted what it termed a ‘distinct position’ inrecommending that a range of cylinder oils isrequired in order to enable a ship to operatemost efficiently, taking into account its fuelsulphur content, engine power and cylinder oilfeed rate. Customers need a cylinder lubricantthat can allow its ships to operate safely,without compromising engine performance, orrisking engine damage and achieve the largefuel cost savings and emissions reductionsenabled by slow steaming.

The development of slow steaming practicesis a new variable that has made the equation tocalculate which cylinder lubricants offer themost efficient cylinder lubrication solutionmore complex, according to Castrol.

From January 2012, the maximum sulphurcontent permitted by the IMO dropped from4.5% to 3.5%. The allowed sulphur content offuel has already been cut in predefinedEmission Control Areas (ECAs) - the BalticSea, the North Sea and the English Channel,with North American coastal waters due to

follow - from 1.5% to 1% in 2010 and is dueto be cut further to 0.1% from 1st January2015. The use of heavy fuel oil will still bepermitted inside ECAs, but only if ships arefitted with sulphur scrubbers.

The potential attraction of a ‘one fits all’lubricant that works with all bunker fuel typesis therefore easy to understand. However,Castrol said that if the appropriate cylinder oillubricant is not selected under prevailing slowsteaming conditions, engines operating on sub-optimal loads may face corrosion on pistonrings and cylinder liners. Using anappropriate cylinder oil lubricant is thereforevery important to ensure the vessel gets theoptimum balance between sulphur content,Base Number (BN) and feed rate, whichwill enable to vessel to operate mostefficiently and avoid the risk of enginedamage.

Recent engine inspections suggestthat the desire for simplicity, which isdriving consideration of the ‘one mid-range BN fits all’ lube, may compromisereliability and lead to engine damage,particularly under slow steamingconditions, the supplier said. It cites arecent service letter from a leadingengine maker advising that, when shipsare slow steaming, operators shouldincrease lubricant feed rates due toincidences of corrosive wear.

Castrol argued that increasing the BNin cylinder oil is a better alternative tohaving to increase federates for mid-range BN cylinder oils when usinghigher sulphur fuels. Only by having acomprehensive range of cylinder oils tochoose from can owners hope tomaximise machinery performance over

time across the board, Castrol said.

Chinese disquietOne of China’s largest tanker owners, ChinaShipping Development Co, indicated its intentto continue requiring a full range of cylinderlubricants from its suppliers. The company,which owns 79 tankers ranging between40,000 dwt and 110,000 dwt in size, as part ofa larger CSDC operation, estimated that 20%of the lubricants it uses are supplied by CastrolMarine.

Liu Xun Wei of China ShippingDevelopment Co’s Tanker Companymarketing department, shipping division, saidthat the owner considered a range of criteria

Castrol’s Paul Harrold.


TECHNOLOGY – LUBOILS


when selecting lubricants. He added that thecompany also set much store by developinglong-term relationships with its lubricantsuppliers, with Castrol having establisheditself as a supply partner supplier over a periodof two decades.

“When we choose the lubricants we use, weconsider three main points,” he said. “Ofcourse, we consider the competitiveness ofpricing, but we also need to be convinced thattechnical support and port coverage areavailable. The third, no less critical,consideration is that we can rely on a productthat is fit and right for purpose. We takeguidance from our trusted lubricants supplierson key performance indicators.”

Tommy Li, of SWS Ship ManagementMaritime Consultant Co, was more explicit inhis concerns about how effective a ‘one fitsall’ approach could be in satisfying the needsof ship operators under the new regulatoryregime. The company, which owns 10handysize bulk carriers, has been specifyingCastrol oils for over 15 years and has built upits usage of the supplier’s products to meet100% of its greases, hydraulic oils andcylinder oils needs.

“Clearly, as sulphur content levels arerestricted, the concept of a single solutioncylinder oil is quite appealing, but we aresceptical,” said Li. “It promises an effectiveand convenient resolution to a difficultproblem. But when it comes to a knowledge-based answer, we are of the view that differentsulphur content fuels will demand cylinder oilsfeaturing different BNs. We feel morecomfortable with the different types ofproducts that Castrol supplies.”

Paul Harrold, Castrol’s technology managermarine & energy lubricants, explained: “Undercertain high load conditions, a mismatchbetween low fuel sulphur levels and cylinderoil BN may lead to excessive deposits onpiston crowns, top lands and rings. These aredisruptive to effective lubrication of the linerand may ultimately lead to damage of thecylinder liners, bore polishing and scuffing.This can, however, be avoided by using anappropriate cylinder oil designed to counterthese problems.

“Castrol’s position is that the selection ofmid-range (50-60BN) cylinder oils as a‘single’ solution for all fuel types will notachieve optimal engine operations under all

load conditions. Opting for a mid-rangelubricant to cover all fuel types, could lead toincreased corrosive and/or mechanical wearwith consequent unscheduled and costlymaintenance costs.

“If a mismatch occurred between lowsulphur content fuels (1.0%) and BN, thenOEM guidelines suggest this would not beapparent in performance terms until after 10-14 days. However, if the mismatch were tooccur in the case of fuels featuring 0.1%sulphur content, then operational problemswould emerge more quickly,” he concluded.

CSDC’s Liu was in no doubt of how criticalit was for shipowners to be kept fully aware ofthe consequences for their fleets in selectingcylinder oils. “We develop partnerships withsuppliers like Castrol who believe in thefuture. When it comes to our newbuilds, wecan specify the type of new equipment thatwill operate efficiently in line with newlegislation. When it comes to our existingvessels we are particularly dependent onlubricants suppliers to help us to ensure thatour equipment is operating to its maximumpotential in the current regulatoryenvironment.” TO



TECHNOLOGY - MANNING AND TRAINING

Videotel has launched a newcontinuing competency managertool (CCM). In a hard hitting message, Nigel Cleave,Videotel Marine International CEO said“Continuing competency in the maritimeindustry should be at the very top of everyship operator’s agenda. The education and

training of seafarers is key and the morecompetent and well-trained the crew, the lesslikelihood there is of costly accidents orincidents.”

CCM is designed to identify and developthe skills essential to safe and efficientshipboard operations. It provides a one-stopsolution for training, assessment and recordkeeping that will allow companies to developcrew competence at every level, from juniorratings to Master, or Chief Engineer.

Seafarer competence impacts on everyshipping company and the implementation of acompetency management system is crucial toboth running a safe ship and maintaining acompetitive advantage.

“Our training is both top-quality and highlyauthoritative,” said Cleave. “All our materialis developed in conjunction with experts in thefield to make the learning process as effectiveas possible. We include interesting andinformative video, dynamic animated contentand a substantial range of randomisedquestions to really challenge seafarers to learnand remember.

“Our training is not easy – we don’t want itto be just a ‘tick-box’ exercise; we havedesigned it to increase skill, ability andonward development. That is certainly thereason why our training is endorsed by manyprofessional maritime organisations,” he said.

Forming what is essentially a circle ofcontinuing competency, the CCM systemprovides a CPD life cycle, which moves andprogresses with individuals and forms detailedcrew training schedules and reports ascompanies plan, train, assess, record andreport all their training activity.

Developed and perfected over five years, ituses cloud-based technology to providecontinuous training and assessment directlythrough Videotel’s web Fleet TrainingAdministrator (webFTA) portal. Thisempowers companies to take control of theirown competency solutions by giving themaccess to a range of blended training toolswhich are instantly available online, on boardand onshore.

Cleave concluded; “The challenge to themaritime industry is clear. The ManilaAmendments coming into force are intendedto make sure that the highest standards ofseafarer competence are maintained globally.

“The old days of prescriptive learning aregone, replaced by competency basedprograms, using continuous assessment againstbenchmarked standards. Videotel’s wide rangeof top quality training material deliveredthrough Videotel on Demand (VOD) and ournewly launched secure web-based VODOnline, delivers against that objective,ensuring safe, efficient and cost-effectiveoperation on ships the world over,” heclaimed.

USCG signs upOne of the latestconcerns to select VODis the US Coast Guard(USCG).

Videotel announcedthe deal at the recentCMA Shipping 2012event. USCG based inYorktown, Virginia,trains Port State ControlOfficers (PSCO) andhas taken delivery ofthree VOD units.The units are pre-loadedwith marine safety andoperational trainingvideos, computer-basedtraining materials (CBT)and instructionalcourses.

Comprehensive andinteractive, the trainingmaterial will be used bythe USCG to augmentexisting PSCO training. “We are delighted to besupporting the USCG’sefforts,” said Cleave.“Towards the end of last

year we worked with the US Department ofHomeland Security’s Customs and BorderProtection agency to develop a trainingprogramme, which offered a new and updatedapproach to US Port State Control. Wewelcome the opportunity to once againcontribute to the training needs within thiscomplex and important environment.”

Crew competency not a tick box exercise

TO

CEO Nigel Cleave makes a presentation toUSCG.

Videotel’s crew competency model.


TECHNOLOGY – MANNING AND TRAINING


German ECDIS trainers expand networksIn the rush to get approved ECDIStraining certificates, a couple ofGerman training concerns havesigned up with training centresand equipment manufacturers.ETC, the MSG MarineServe operated ‘ECDISTraining Consortium’, has reached agreementwith the Sir Derek Bibby Maritime TrainingCenter in Mumbai to act as its local partner.

MSG will provide its ECDIS trainingcourseware, ECDIS training systems andapproved train-the-trainer courses. In addition,MSG will provide 24/7 certificateauthentication and trainee database servicesfor reference by its partners, customers, PortState Control and other concerned authorities.

The Sir Derek Bibby Maritime TrainingCenter will deliver the training, which isconfigured on a single, comprehensive,training structure and methodology in order toguarantee the quality and consistency of thetraining.

This training centre is part of Bibby ShipManagement Group and was opened in April2006 in Mumbai to provide a cost effectivesolution to the global offshore and marineindustry’s increasing need for competentlytrained officers.

As a member of the International MaritimeContractors Association (IMCA), the Mumbaitraining centre is dedicated to delivering anddeveloping the industry’s best practicestandards with international infrastructure andfaculties experienced in their respective fields.

Commenting on the agreement, PrakashAgarwal, managing director of Bibby Ship

Management, India said: “Building on our 200years of heritage and maritime legacy, we areproud to provide a high classshipmanagement, crew management andtraining solutions to the global maritime andoffshore industries. We have been constantlyworking to extend the best training facilities tothe international seafaring community.

“We are glad ETC has chosen us, Sir DerekBibby Maritime Training Centre, as theirtraining partner in India for their worldwideconsortium,” he said.

MSG MarineServe, as the driving forcebehind ETC, is an established maritimetraining company providing training solutionscovering ISPS Code requirements, Germanand UK Flag State shipping law, loadingstability, English competence, radar andECDIS training.

MSG has been appointed to act as anapproved training agent and preferredequipment-specific training provider forDanelec Marine, ChartWorld, 7Cs, TransasMarine, JRC, Raytheon Anschuetz, SperryMarine and Imtech.

ETC is a consortium of leading traininginstitutes again located in the main shippingcentres offering ECDIS courses based on theMSG-courseware, standardised instructortraining and the MSG certification anddatabase facility.

One of the latest ECDIS manufacturers tojoin MSG and ETC was Danelec Marine,which signed up to be able to provide ECDIStraining services locally and worldwide.

The agreement with MSG includes ETC to

ensure that Danelec is able to offer a completeequipment training service in support of itsglobal customer base.

The training provided by MSG and its ETCpartners is configured on a single,comprehensive, training structure andmethodology in order to guarantee the qualityand consistency of the training while allowingDanelec to monitor content, quality standardsand record keeping through a single point ofcontact.

Commenting on the new collaboration,Hans Ottosen, Danelec CEO, said: “We arevery pleased with the partnership with MSGand ETC. We see a growing demand amongour customers globally for type-specifictraining for our ECDIS solutions.

“The partnership with MSG and ETC

Danelec’s CEO Hans Ottosen.


ensures that our ECDIS offering is fullysupported by high quality and approved type-specific training. With MSG’s trainingfacilities in nine countries around the worldoffering ECDIS training combined with theDanelec sales and service network in morethan 50 countries to support our user-friendlyECDIS, we feel very confident in meeting thetotal need for ECDIS for our customersglobally,” he said.

Web-based trainingMeanwhile, Safebridge, a specialist in web-based type-specific ECDIS training, hasteamed up with Japan Radio Co (JRC) todevelop type-specific ECDIS training for theJRC ECDIS. J

JRC joins a number of other ECDISmanufacturers in believing that online trainingis the key to meeting the huge numericalchallenge set by STCW 2010, as Safebridge

already holds agreements with SAMElectronics, Northrop Grumman SperryMarine, Imtech Marine, 7Cs, ChartWorld,Raytheon Anschütz and Transas Marine.

With the implementation of ECDIS as theprimary means of navigation, and the nowmandatory training requirements, Safebridgeand JRC will provide seafarers worldwidewith an effective and easy solution to trainonline and prepare themselves for their nextassignment.

Safebridge will develop the courseware foruse in its learning platform, which integratesthe central, server-based, learning content withJRC’s own ECDIS software running in realtime for delivery via the Internet.

This process results in a standardisedproduct that guarantees the quality andconsistency of the training while providingJRC with the transparency required on thecontent, which will, of course, be approved

in accordance with STCW and Flag State requirements.

Updates are simplified, as these areimplemented only on the central server.

Safebridge will also provide coursecertification on behalf of JRC and traineedatabase services for reference by Port StateControl and other authorities involved.

The courseware will be released in the latesummer of 2012.

Bas Eerden, product manager at JRCEurope, added, “It is expected that tens ofthousands of vessels will be required to installECDIS over the next six years and we aremore than pleased with the partnership withSafebridge. Effectively, with nowadays theimportance of the total cost of ownership, JRCis content with this new and innovative way ofoffering cost-effective JRC ECDIS typespecific training solutions to shipowners andseafarers.”



TO

Kongsberg expands in China- wins approvalfor cargo handling simulatorsKongsberg Maritime’s Chinadivision, Kongsberg MaritimeChina, has opened its newpremises in Shanghai. Staff and equipment were moved to the newsix-story, 5,060 sq m building during the firstquarter of this year while the official openingceremony took place on 15th March.

The facility features a state-of-the-art newtraining centre, which incorporates a trainingroom, simulator room and instructor room.This new facility is accredited as a DPoperator training centre in accordance withNautical Institute standards.

The existing premises, two kilometres awayfrom the new building, will be maintained forKongsberg Maritime product testing andfactory assembly.

Cargo handlingKongsberg has also won an approval forcargo handling simulation. It has beenapproved to the latest DNV standards.

The Class A approval, received early March2012, covers the ship models available withinthe system and joins recent DNV certificationfor Konsgberg’s engine room and navigationsimulators.

In addition to approval for its VLCC loadcalculator system, Kongsberg has receivedDNV certification for six ship modelsavailable in the cargo handling simulator.These are: LPG carrier, LNG-M (membrane),LNG-S (spherical), chemical carrier, productcarrier and VLCC.

“It is important to ensure all of oursimulators have approvals to the higheststandards. It supports us in meeting customerand industry demand for the highest qualitytraining tools while demonstrating that oursystems are designed to operate under themost up to date legislation,” said Terje


Heierstad, product & technology manager,Kongsberg Maritime.

The Kongsberg Neptune cargo handlingsimulator also meets the requirements ofSTCW section A-II/1, A-II/2, A-II/3, A-III/1,A-III/2 and A-V/1 that states the requirementsfor planning and ensuring safe loading, careduring the voyage and unloading of cargoes,as well as maintaining seaworthiness of the

ship regarding trim, stability and stress.All models within the cargo handling

simulator are based on real ships. Severaldifferent simulator configurations are availablewhere the cargo control room may berepresented by any combination of interactivemimic panels, operational panels, consolesand/or desk-top stations.

“Because Neptune is based on the same core

software, it is extremely flexible. It enablesour customers to specify the exactconfiguration they need and can be easilyupgraded, or expanded according to changingneeds,” explained Steffen Jensen, productadvisor, cargo handling simulators, KongsbergMaritime.

TO

Admiralty launches global ECDIS trainingsponsorship initiative Admiralty has taken a differentapproach to ECDIS training byoffering sponsorship to 100 bridgeofficers to undertakecomprehensive ECDIS training inmaritime colleges worldwide. This promotion offers bridge officers fromanywhere in the world the chance to win aplace on a generic ECDIS training coursebased on the IMO Model Course 1.27(operational use of ECDIS).

The courses, which will be available fromparticipating training institutions, will providebridge officers the opportunity to develop acomprehensive understanding of ECDIS-basednavigation, Admiralty said.

It is open to qualified bridge officers ofinternational trading ships, who can registeronline for their chance to win ECDIS training.

Admiralty said that it is launching thepromotion to highlight the need forcomprehensive ECDIS training. UKHydrographic Office CEO, Ian MoncrieffCBE, explained, “We believe the maritimecommunity needs to focus on mariner trainingand especially providing practical guidance on

using ENCs to make the transition to digitalnavigation successful.

“As an industry, we need to equip thousandsof mariners with the right skills to beconfident and competent in the use of ECDIS.We have a duty to support the mariner andcomprehensive training is the only way toovercome that challenge,” he said.

Admiralty said that the requirement forECDIS training is acute. Recent research bySIRC demonstrated that bridge officers wereleast confident about the use of ECDIS,compared against four other key bridgetechnology systems.

The research also showed that more thanhalf of respondents had used ECDIS beforecompleting any training ashore. In addition,the number of mariners who require training issignificant; estimates range between 140,000and 200,000 mariners to be trained in the nextsix years.

Moncrieff continued, “The first deadline forthe mandatory carriage of ECDIS comes intoforce in July 2012. We need to support bridgewatchkeepers to ensure they are prepared for anew era of navigation. Clear and properly

accredited training will ensure they have theskills to make digital navigation a success;improving both the safety of life at sea andbridge efficiency. We hope our promotion willcontribute by starting that process for 100mariners.”

The training promotion is part of a series ofinitiatives from Admiralty this year to helpdeliver ‘Digital Navigation Insights’, as theshipping industry is making preparations forthe mandatory carriage of ECDIS.

The initiatives are aimed to help themaritime community confidently, safely andsuccessfully, integrate digital navigation intoboth ship and shoreside operations as themandate comes into force on a rollingtimetable that begins in July 2012.

These initiatives also include thedevelopment of a training module to promoteENC knowledge, which will be offered tomaritime colleges around the world and aseries of free digital integration workshops.

The workshops were launched at Marintecin November 2011 and have already featuredat Asia/Pacific Maritime in 2012 and at lastmonth’s CMA’s Shipping 2012. TO




It had been recognised that if all theproducts in the IBC Code wereevaluated according to the currentcriteria a large number of products

would be affected, with a number of highvolume products moving to Type 1, some alsoto require carriage in independent tanks.

This would lead to serious shortages offreight. Accordingly, the IMO has looked atthe criteria which trigger these carriagerequirements in order to examine whether ahigher ship type and/or tank type isappropriate to the hazard in question.

It has been established that the primetriggers are acute inhalation and dermaltoxicity, and the recent session of BLGaccordingly agreed that saturated vapourconcentration and behaviour in water shouldbe taken into account – if the product has alow vapour pressure and is therefore unlikely

to be inhaled and evaporates, or sinks when incontact with water, then it should be possibleto apply less stringent requirements.

She reported that a small group of pilotmaterials is going to be used to test thisapproach, which may then lead to amendmentsof the criteria for assigning carriagerequirements in chapter 21 of the IBC Codeand subsequent amendments to chapters 17and 18 of the Code.

The initial indications are that this approachwould lead to a number of changes in carriagerequirements, including some products movingfrom type 3 to type 2, but would eliminate themore drastic changes that had previously beenindicated without compromising safety.

Turning to the agreement in principle of theapplication of inert gas systems (IGS) to newtankers of below 20,000 dwt and newchemical tankers, Strode explained that at

IMO’s FP 55 (July 2011), it was agreed thatthe lower size limit for this should be 8,000dwt and where appropriate vessels of less than20,000 dwt would be allowed to use shoresupplied inert gas, rather than install an IGS.

In order to address the different operationalrequirements on chemical tankers, thesevessels would be allowed to apply inert gas oncompletion of loading, but before thecommencement of discharge, with applicationto continue until completion of the tankcleaning phase.

AmendmentsText is being developed for amendments toSOLAS and the IBC Code to reflect these newrequirements and there will be a need forconsequential amendments to variousinstruments, such as Fire Safety SystemsCode.

TECHNOLOGY – TANK SERVICES


IPTA addressesseveral chemical

carrier issuesAt the recent Navigate/IPTA conference, Janet Strode, IPTA general manager, reported

that the concerns expressed by the industry in relation to the proposed review of the IBC Code were being addressed.



TECHNOLOGY - TANK SERVICES

The International Parcel TankersAssociation (IPTA) held areception at the Naval Club inMayfair on Wednesday 7th Marchto celebrate the 25th anniversaryof its founding. As well as IPTAmembers, the event wasattended by a wide variety ofindustry representatives and IMOdelegates. IPTA chairman, Hugo Finlay, managingdirector of Essberger Tankers, commented inhis address on the importance of recognisingthe substantial investment that chemicaltanker owners make in their sophisticatedvessels. He also noted that the organisation’saim remained the provision of soundrepresentation for the industry and a levelregulatory playing field under which IPTAmembers could compete in a free and openmarket.

In responding, the director of the IMO’sMarine Environment Division, StefanMicallef, referred to the significantcontribution IPTA had made to deliberationsat the IMO on a variety of issues, particularlyin the provision of data on this highly

specialised sector of the industry. The reception marked the close of the

annual Chemical and Product TankerConference organised in London by IPTA andNavigate Events, which in its fourth yearproved the most successful yet.

Some 180 delegates drawn from all sectors

of the industry gathered to hear analysis ofthe chemical, product and biofuel markets, getinformation on forthcoming regulatorydevelopments and discuss pressing issues,such as how to implement the MaritimeLabour Convention (MLC) and deal with thecontinuing threat of piracy. �

IPTA turns 25

Hugo Finlay, Essberger Tanker’s managing director and IPTA chairman; IPTA generalmanager Janet Strode; IMO’s marine environment division director Stefan Micallief.

It will also be necessary to giveconsideration to cargoes that require oxygen-dependent inhibitors and the implications ofthe inert gas requirements on such cargoes.With all this still to be done, Strode estimatedthat that the earliest date for entry into force ofany new requirements would be January 2016,but emphasised that this was purely anestimate.

Strode also reported that after a number ofyears discussing the implications of claimsmade by the UK and a number of other EUstates that tankers were often operating inconditions of reduced or zero residual stability,the IMO has developed guidelines for theverification of damage stability at both designstage and on board.

At the IMO’s SLF 54 (January 2012), it wasagreed that there should be a mandatoryrequirement for on board stability instrumentscovering both intact and damage stabilityrequirements for new and existing vessels,with associated performance standards. Textneeds to be developed for amendments toMARPOL Annex I and the IBC Code toreflect this, meaning that the earliest dateStrode estimated for entry into force is January2015.

With regard to the carriage of biofuelblends, Strode reminded the conference thatMEPC.1/Circ.7611 – Guidelines for theCarriage of Blends of Biofuels and Petroleum- is now effective and all such blends must becarried according the provisions of theguidelines.

Where the blend contains 75% or morepetroleum the cargo should be carriedaccording to the provisions of MARPOLAnnex I. The Oil Discharge MonitoringEquipment (ODME) on the vessel must beapproved for the carriage of the blend inquestion, although there is a waiver for thisrequirement until January 2016 providing allcargo residues are pumped ashore.

Where there is more than 1% but less than75% of petroleum in the blend the productshould be carried as an Annex II cargoaccording to a set of generic requirementsfound within the guidelines. These genericcarriage requirements are also in the latestedition of the MEPC.2/Circular and will beincluded in chapter 17 of the next edition ofthe IBC Code. In cases where there are 1% orless petroleum oil, the product is to be treatedas the Annex II product in the blend. Strode reported that the prohibition of the

blending of cargoes during the sea voyage, asset out in MSC-MEPC.2/Circ.8, is to bereflected in a new SOLAS regulation. Thedraft regulation makes it clear that physicalblending refers to the process whereby theship’s cargo pumps and pipelines are used tointernally circulate two, or more differentcargoes with the intent to achieve a cargo witha new product designation.

Cargo transfersHowever, it does not preclude the Master fromundertaking cargo transfers for the safety ofthe ship, or protection of the marineenvironment and does not apply to theblending of products for use in the search andexploitation of seabed mineral resources onboard ships used to facilitate such operations.

Strode advised that a clarification had beensought and confirmed that the prohibition doesnot apply where cargo is recirculated within itscargo tank, or through an external heatexchanger during the voyage for the purposeof maintaining cargo homogeneity ortemperature control, including when two ormore different products have previously beenloaded into the same cargo tank within portlimits. TO


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