Crew Winter 2011

1

G r i e G S h i p pi n G G ro u p m aG a z i n e d e c e m b e r 2011

Superglue

In the capacity of superintendents, we are on duty 24/7 to assist the vessels if and when required.

Pages 8-9

Help uS Save energy!

The Grieg fleet is going through a number of measures to save energy, fuel, and the environment

6

SHipping life

– It’s not so hard if you know how to do it, claims Karl-Erik Nitter Foss talking about his job. – None of us will be able to replace him, say his colleagues.Pages 12-13

2

GrieG ShippinG Group maGazine december 2011

8 9


Visits on board are a very important activity; this is the only way we can meet face to face with our collegues. Last year we carried out 79 visits and so far this year we have completed 60. none the less, it is from the office we can serve the vessel best. Together with our collegues in the purchasing, Qa and operations departments we try to coordinate the day to day running of our ships. Ship operation is a team effort, not only on board, but also in the office.

as you all know, we have the overall responsibility for a number of our good vessels. We communicate more or less daily with representatives from various authorities, follow up on audit or vetting findings, correspond with suppliers and service personnel and make our best efforts to stay on top of everything that is going on. an increasingly important activity is to plan for the yard stay. in the later years,

we have changed from a 30 to 60 monthly yard schedule. at the same time, more system overhauls are being scheduled for the yard. Spare parts might have up to one year delivery time, so proper planning is of the essence.

nevertheless it is important that the ship management teams take active part in this planning, both by providing information and defining the needs and scope for the specification. in addition to the discussions we have during the regular visits and the resulting visit reports, amoS is a good tool for our common memory. once entered there, a work order will not disappear before we report the work done. Tom-egil is a great help to us all, keeping the system up and running.

in the office we have formed three groups. The general idea is that there should always be one superintendent present in the office

Our superintendents are responsible for cost effective and safe operation of 3 vessels each. An important part of their job is to visit the ships 3 times/year and to lead the work when the vessel is at the yard. In 2011 they have carried out 60 visits on board so far and attended our ships during 5 yard stays.

Superglue

Superintendents at work

In the capacity of superintendents, we are on duty 24/7 to assist the vessels if and when required. We are the “glue” between the ship management teams for our vessels and do our utmost to manage the ships in accordance with the company’s policies and goals.

from each group at any time. Sometimes, this is not possible, mostly due to travel activity. (at times, we also need some vacation and time with the family).

We are now starting to plan for taking responsibility for 12 newbuildings and have agreed to take on this challenge with the present staff. Therefore it will be increasingly important to continue the ongoing standardisation processes, to improve our communication abilities and to further define our common goals.

Stein AndersenFleet manager

From left: Ole-Jørgen Natås, Terje Monslaup, Tore Jensen, Kjell Inge Nilsen, Petter Melhus, Bjørn Egil Skogvoll, Anders Moseid, Stein Andersen, Trygve Arntsen, Roar T. Aastvedt (small photo), Leif Arild Herøy (small photo).

System Responsible for planned maintenance Tom-Egil Borgeteien is part of the group

our superintendents travel frequently. how do you combine this with having a family at home?

Leif arild herøy (44) has worked as a superintendent for 14 years. 90 days each year consist of traveling, and at home is a family consisting of wife and three children 4, 9 and 13 years.

- my wife knew what she was in for. When we got married i was working at sea and was away for even longer periods of time than i am now, he confesses. he also admits that all the traveling can be challenging. - We don’t have any relatives living nearby, but we can ask friends and neighbors for help. our kids are quite active, so there’s a lot of logistics being planned in our everyday life. We’re also lucky because my wife has a job that’s flexible and she can somewhat adjust her hours.

The traveling seldom ends up as planned, says Leif arild. Generally there are delays, for instance when a ship arrives late to the port. - it was really unfortunate this one year, when i had to leave december 19th and wasn’t back until the 23rd late at night. We had planned to celebrate christmas at our company’scottage at Geilo, but those plans fell through. The children shed some tears back then. another drawback concerning all the traveling is that Leif arild has to pay people to do the things that he otherwise would do himself if he wasn’t away, like if a bike is broken, or something in the house needs to be repaired.

Still, our employer understands that we have families and the superintendents gladly replace each other if it’s impossible for one of us to go. Leif arild does not plan to change his profession:- This is a job i can enjoy. We are our own bosses and can make decisions independent of others. You just need to try to maintain a normal life as possible outside your work.

Frank Tangencox

A job to enjoy

10 anInventor among us

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12 13


ultimo February Karl-erik will have his last workday within Grieg Star Shipping. a career that has lasted for almost forty years will come to an end. Foss started working in Star Shipping the fall of 1972, and was rather green as a legal practitioner. after graduating from the university of oslo in 1971 he worked for a while as a deputy judge, and got his license to practice as a lawyer, until his interest in shipping determined the rest of his professional career. – i wasn’t a complete stranger to the industry, tells Karl-erik Foss. – We had a family business where we worked as agents within transport and forwarding along the coast. When opportunity knocked in the form of Star, there was no doubt in my mind; after many years of studying and working in oslo, i wanted to go home to bergen.

On all levelsas a newcomer he got the opportunity to work in several different divisions, and he experienced the obligatory stay

abroad. however, it didn’t take long before he settled in at the head office, with responsibility for legal matters, claims, insurance and later also as hr manager.– back then we weren’t that many people. We only had fifteen ships, so many of us combined different responsibilities. Since i also was hr responsible, i hired many of the staff members who are now seniors in our organization.Karl-erik also became a member of the executive committee – so he really knows the work on all levels.

Looking for solutionsmaritime law is challenging and includes a lot of complex assessments. in addition english and to some extent uS law play an important role. - The majority of our cases relate to charter parties and contracts of affreightments problems and the challenge is to reach an acceptable solution supporting our commercial interests, Karl-erik tells. - in relation to the number of vessels and contracts in our system, conflicts that have

to be solved by arbitration or in courts are relatively few. in many ways it is a defeat if we cannot solve the conflicts ourselves. That may be true, but his colleague for many years, Jack birkenes, stresses how immense the importance of Karl-erik Foss’ knowledge has been for the company:- his knowledge of the legal aspects in shipping is vast, he is always accommodating and very solution-oriented. he has seen and experienced a lot, and there’s no one who can replace him completely the day he quits.

insurance of ships and cargo is also a complicated area:– The insurance companies offer to some extent standard products, says Foss. – Some insurance covers we need as a “ticket to ride”. Still, we have to evaluate every exposure, and decide what kind of risk we’re prepared to assume ourselves, and for which risks we need insurance cover.

Shipping lifeKarl-Erik Nitter Foss:

- It’s not so hard if you know how to do it, claims Karl-Erik Nitter Foss talking about his job. – None of us will be able to replace him, say his colleagues.

When customers complainanother area of responsibility for Foss has been claims – dealing with complaints from customers. – What could be the cause of a complaint?– it could be due to negligence, but it is not necessarily because of human error. There could be technical difficulties with the ship or weather conditions that lead to damage. We carry 12-14 million tons a year, so it’s impossible to completely avoid incidents. – do conflicts often occur between the company and the clients?– not really when we have in mind the thousands of transportation contracts we perform. in addition when our customers use their insurance company, we have a professional opponent. besides from that, there are international conventions and regulations which everyone acts in accordance with, like the haag convention. So a lot is already sorted out through regulations and convention.

Sharing his know-howKarl-erik nitter Foss characterizes himself as a “private” person who doesn’t reveal much about himself. one of his colleagues for more than 30 years, Thorleif n. Teigland, characterizes him as calm, a good listener and always looking for solutions. – he was the one that hired me to Star when i was only 21, tells Teigland. – he was then 35, and i looked upon him as an old man. he has not changed much since, one would not believe that he has reached the age of retirement. i learned to know him as a person with authority, but at the same time he is always polite, mild and kind. – he never would tell you that he disagrees with you, instead he says, “i will have a look at it”. When consulting him in a matter, he would repeat some of my words to show he was listening, and assuring me and himself that he understood. he is the lawyer that looks for practical solutions: rather than to maintain a firm position, he would seek to resolve a problem. he is always willing to

share his know-how with people around him. rather than solving the problems on behalf of a person, he would give advice on how matters could be resolved. “people have to learn how to handle their own challenges”, he often says.

it seems Karl-erik will be an active retiree with tennis, skiing and sailing on his list of leisure activities. moreover, he will have to prepare himself for a phone call from the people in Grieg Shipping Group once in a while – they might need to confer with him.

Frank Tangencox

shIppIng lIfe

10 11


Superintendent Tore Jensen in cooperation with Goltens, rotterdam has designed and built five hold cleaning machines. The proper use of these machines will greatly reduce the amount of people and time required for hold cleaning. as a matter of fact, the hold cleaning machine can be operated by one single person from the crane cabin. of course, a watchman will most likely be required.

The machine itself is connected to the turn table by the twistlocks. electrical power and signals are fed though the turn table control/power lines such that all control can take place from the crane cabin. bayonet fixed rotating brushes (of the same type which are used for pavement sweeping machines) are used for primary cleaning assisted by high pressure water that is supplied from an integrated water tank.

With new equipment like this, we will probably face start up problems, but the positive effect will be tremendous with regards to safety, rest hours and efficiency by taking this new tool into proper use. one machine has been delivered to rotterdam; the remaining four will be delivered in a few weeks time. once completed, Grieg Star Shipping will take over the responsibility for the maintenance and management of the equipment. as it looks now, two will be located in rotterdam and three in the uS gulf area.


We have an inventor among us!

Our gantry crane turn table is not designed to handle people, due to the fact that personnel hoists should be equipped with double set of brakes.

In order to provide this second “brake” all ships should by now have been supplied with a double set of fall protection equipment which shall be used when working in the holds, or indeed during any work aloft or outboard.

Safety first

Hold cleaning is a cumbersome task. Reported time usage for cleaning of nine holds of petcoke was 5 days with round the clock operation

Tore Jensen has invented a machine that reduces time and cost for cleaning holds onbaord our vessels. The machine is a welcome asset to the fleet.

A clean machine

superglue

16 17


Grieg Shipping Group is part of the Working Group 5 - WG 5 collaboration together with the following norwegian ship owning companies:• Wilh. Wilhelmsen • höegh autoliners• bW Gas • Klaveness • Solvang

during the period march 2009 to may 2010, the WG5 group participated in the execution of the energy management in practice (emip) project.

The main goal in the project was to establish a common platform and ability among the companies to collaborate within the field of energy efficiency in the years to come. in practical terms this means to measure effect of various energy saving measures and share experiences. a coordinated testplan, showing what measure each company has the intention to verify in real life, was also a key delivery from the project. it is this plan which we now plan to execute through the energy management in practice ii (emip ii) project. The scope in emip ii is transferred into what is called: “The Grieg Fleet energy efficiency program”.

Crucial building blocks – sensorsbefore we can do a real life testing, we have to get all building blocks in the total system in place. as all crew onboard our h/i/J vessels have experienced in 2011, we have had challenges implementing new sensors like the torque meters and coriolis fuel flow meters. We have also observed issues related to calibration of sensors. as the sensors are crucial building blocks in the overall system, we have to run a process to ensure that all sensors are working properly and continue to do so.

Speed Trials and onboard measuring of energy saving initiativesThroughout 2012, it is also planned that all h/i/J vessels (except Star istind) will get

installed the so-called Spm system (Ship performance monitoring). This system shows the instantaneous fuel consumption expressed as kg fuel/nm to the crew which gives possibility to monitor effect of various actions taken. as soon as the system is working properly, regular speed trails will be implemented on a regular basis. We do this to monitor performance and to verify effect of various energy saving measures. as an example we aim to fully verify the effect of:• mewis duct installations (h/i/J/L-

class) • propeller bos cap Fin – pbcF

(K-class)• innovative and new antifouling

systemsall required data to do these evaluations will be sent to our main office through the “always on” solution. The testing will as such not result in extra workload on crew.

Traininganother observation which has become quite clear is that the training we have provided in the use of the marorka energy management System has been insufficient and fragmented. We have therefore initiated the following two initiatives:• immediate hands-on onboard

training• establish a shore based training

package in manila • Ship energy efficiency management

plans SeempTo involve our crews in this important work, and to catch all the good ideas among all our seafarers, we aim to develop Seemp for all vessels which summarizes all actions which can/shall be taken to reduce the use of fuel. if we for example manage to reduce our fuel consumption with 20 % on one h-class vessel, the annual saving be in the magnitude uSd 1 mill. Savings in this magnitude seen from a fleet perspective will strengthen our competitive position, improve

environmental performance and be a part of Grieg Shipping Groups positioning for the future, a future with prospects for ever increasing cost of bunkers.

Management Team Grieg Shipping

Help us save energy! The Grieg Fleet Energy Efficiency program


Maritime collaboration

Research and development (R&D)We are deeply engaged in a series of research projects, in close cooperation with other shipping companies, sometimes taking leading roles. • EMIP I and EMIP II• EMISOL - Emission Reduction

Solutions and Impacts for Transport Systems

• Low Carbon Shipping• Maritim21 • WG5

Miscellaneous• Grieg Green is established

in order to contribute to environmentally friendly recycling of ships.

• Star Istind equipped and nominated as test-ship for energy-saving measures.

The planned duration is 2012/2013. To achieve success teamwork is of the essence and we are totally dependent on our seafarers.

Long time have elapsed since we were faced with the first ever Sulphur emission control area (Seca) in may 2006 in the baltic, setting a limit to the sulphur content in the fuel of 1,5 per cent.

This was international maritime organizations (imo) first step on the way to a cleaner environment. in The marpoL annex Vi they were giving a timetable for the shipping industry to follow in order to reduce any harmful emission from the vessels engines. First and foremost it was setting limits on the sulphur content in the bunker fuel that could be burned, but it is also setting limits on the emissions from the vessels stack. This gives the ship owners the alternative to either use cleaner fuel or to clean the exhaust gas in the stack in what is known as a “Scrubber”.

What has happenedas there has been a remarkable improvement in the air quality throughout northern europe, it was quite obvious that the measurements taken by imo and others were a step in the right direction.

Since 2006, we have now gone a few more steps on the ladder to cleaner air. The first Seca was extended to include the north Sea up to 62” north. The european community have introduced a strict regime as to what you are allowed to use in european ports, only 0,1 per cent sulphur content. The same goes for an area 24 miles off the coast of california.

Then in 2010, the sulphur limit was reduced to 1 per cent within the emission control areas (eca). Just around the corner, we have two major changes coming up, first in January 2012 the worldwide sulphur limit in all bunker fuels will be set to 3,5 per cent as opposed to 4,5 per cent today. Then in august the united States and canada will become an eca, with a 200 miles zone around the coast.

With all the trades we are running in and out of that area, this could prove to be a real challenge to us, both in respect of getting sufficient LSFo (low sulphur fuel oil), but also operational wise onboard the ships with the tank configuration they have.

Future challengesLooking further ahead, the next hurdle will be coming January 2015, when we are not allowed to use anything but fuel with a maximum content of 0,1 per cent sulphur within the eca’s, which in essence means that we have to use marine Gasoil. This will be quite a economical burden, but again, it means that we have to take a closer look at the tank configuration to make room for larger quantities of marine Gasoil. another viable option, is to install scrubbers, which according to many experts will be the only sensible solution, both economically and technically. The availability of such products in the quantities needed, on a world wide basis, will be problematic. This will be an even bigger problem in 2025, when all bunkers used will have to be below 0,5 per cent sulphur.

Terje W. Cookbunker manager

Cleaning the environmentThe sulphur limit in all bunker fuels will be drastically reduced. This will bring cleaner air, but also a multitude of challenges for the shipping industry that have to be solved.

Bahamas

Saint-Pierre & Miquelon

Hawaii (US)

The United States

Canada

Alaska (US)

New ECA:

East/West coast of USA. In force by August 2012.

help us save energy16

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Commercial corner

at the time of writing this article, the general dry bulk market is on its way down. We are now seeing the index around uSd 15,000 per day for the Supramaxes. our market view remains the same, ie. it will be tough through 2012 and well into 2013.

So far this year about 54 million dwt has been added to the dry bulk fleet - 73.5 million dwt delivered, against 19 million dwt sold for demolition. china has lately reduced their import of raw materials. and with the general lower demand, such an increase in the fleet does not look good from a market perspective.

For our bulk division we are well positioned for this development. We still have a lot of cargoes on contract, and will be in need for t/c vessels in the coming months. We will have two conventional newbuildings delivered next summer, which will help our overall scheduling. also, with our own tonnage it is easier to build up more long term trades.

cbcd is again delivering a fantastic result for 2011. Time will tell whether we have done things right also for the next year or two. however, if our market view proves to be right, the way we have positioned ourselves should indicate fairly good results in the future.

in the open hatch division the results are also very satisfactory for 2011, given the environment we are all part of. Looking ahead there will be a lot of capacity delivered in our segment the next three years.There are several new pulp mills being constructed in brazil and uruguay. but with the introduction of STX pan ocean in brazil, there will be an overcapacity in the open hatch segment in the years to come.

by having a bit longer horizon, there is no need to be too pessimistic towards the end of this decade. The order book is what it is, but with 2.5 to 3 percent growth annually for market pulp, it should be balanced out a year or two after all current ordered vessels are delivered.

in the meantime, we all just have to continue to work hard, and be focused on our current and new business.our newbuilding program will start with the first two open hatch vessels being delivered, in July and September next year.We are all looking forward to this expansion and “renewal” of the fleet. our focus might differ slightly from our historical concept, but we will still be in the parcel business. This operation demands a different setup and a different operation than the regular bulk trades.

it is the people that make this work. We have a fantastic organization with highly skilled people in all our branch offices, as well as in the headquarters. Thanks to all of you for extremely hard work and dedication to our business.

Thanks also to everyone onboard our vessels, for hard work and safe carriage of our cargoes.

merry christmas and a happy new Year!

best regards,

Tom Rasmussenpresident and ceoGrieg Star Shipping

Dear colleagues

When we talk about social media, we often refer to Facebook and Twitter. but social media are more: millions of people publish their own blogs, or comment on newspaper articles. Sometimes also Grieg Shipping group are mentioned. how should we, as employees, conduct when Grieg Shipping Group is mentioned in these media? When should we take part in discussions, and when should we leave to the management to answer?

New guidelines for social mediaThink twice before you comment on issues regarding Grieg Shipping Group in social media. And separate your role as a private person and an employee.

Grieg Shipping Group has now developed guidelines in order to assist our employees so that their conduct in this field of communication and marketing will be proper.

The HR Department

You will find the complete guidelines at the intranet, here is a short version:

1. as an employee of Grieg Shipping Group you are personally responsible for content that you submit to blogs, social networks, comments in internet newspapers or other user generated media. Thus, think twice before you make something public, and remember that what you post will be accessible for a long time.

2. if you make a statement about subjects that are within Grieg Shipping Group’s field of interest, identify yourself as an employee of Grieg Shipping Group, with your full name and title. always write in ”first person”, and emphasize that you are making a personal statement, not as a representative of Grieg Shipping Group – unless this has been made clear in advance.

3. respect copyrighted material and rules concerning financial communication. read and make sure you’re updated on Grieg Shipping Group’s Strategy of communication and the instructions that you find in the contract of employment.

4. it is ok to talk about your work and participate in a dialogue. however it is not ok to publish confidential information; that is everything which includes details about software, information about active and new projects, future dates of launching, financial information, trade secrets etc.

5. never share information which is intended for domestic use only within Grieg Shipping Group. if in doubt, ask your supervisor.

6. do not quote clients, partners or suppliers of Grieg Shipping Group without approval. if you make a reference to a source, always remember to link to the original source. be truthful, don’t write or comment anonymously, under a pseudonym or a bogus nickname. use your real name; be forthright about who you are, and that you work for Grieg Shipping Group.

7. be respectful when commenting. don’t use racist expressions, assault

people personally or conduct in other behavior that you otherwise wouldn’t approve of in your workplace. be respectful when it comes to the opinions of others, for instance in relation to discussions about politics and religion.

8. if you discover that you have made a mistake, be the first one to make it right. dishonesty will always be revealed. if you change a contribution/a quote, always indicate what changes you made.

9. Find others who blog or comment on the same subjects as yourself, quote them on your blog using a link, and comment on their blog. don’t comment just to comment though – you should have something relevant that you want to convey.

10. in a crisis, in relation to a considerable incident and when it comes to communication of the strategic kind, the management is always responsible for all domestic and external communication – also in social media.

Grieg Shipping Group’s 10 rules for social media

socIal medIa

The diversity of our organization

CreW is published by grieg Shipping group and grieg Star Shipping. all contributions to the magazine are written by employees unless other is noted.

editor in Charge: Berit Myklebusteditors Torill lunde [email protected] andellen Sundøy [email protected] from frank Tangen, Cox

layout and design:

Ole-Jørn Borum

Cover photo: Captain lee, Star HerdlaCreW is printed on environmentally friendly paper

Circulation: 1500

in norway and in many other countries, christmas is just around the corner - a time with many traditions and expectations from both children and adults, and a time for relaxation.

When it comes to crew we also have expectations. We want to show you the diversity of our organization, and we believe this issue of crew illustrates this very well.

it is all our helpers out in the organization whom we can thank for this. When we start working on a new edition of crew we meet in the editorial committee to gather information about what is happening in the organization and is of interest to our readers. We also receive articles from our correspondents worldwide, both ashore and at sea. based on this we make an overview of the articles that we plan to publish in the next edition.

This is when we ask for help from you. almost all articles that you read in crew are written by employees in Grieg Shipping Group who are experts in their fields. many of the photos in crew are also taken by employees. and this is what makes crew worthwhile reading. So ThanK You to all contributors!

When the editorial group gather to go through the first draft of crew we are very excited – how will it look this time. and each time we get surprised by the diversity and creativity in our organization.

in crew you can for instance read about an innovative solution from the Technical department, several environmental projects, new guidelines for social media, and different teambuilding events. Together with words from the management, we hope we are able to give you a better understanding of our diverse organization!

Seasonal greetings to all of you!

The editorial GroupBerit Myklebust

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3

and remember it is when going uphill that we climb higher!

Thank you, each and every one of you and your families, for your substantial contribution to our shipping group. Let us continue to let our vision guide us;

“Create lasting value through our common effort’’

i wish you all a wonderful christmas together with your families and a healthy new year filled with meaningful challenges and prosperity.

Warm regards

Camilla Grieg

Dear friends & colleagues – sailing and ashore. it is a tough world out there. We read in the papers daily about economic stress of companies and countries, record high jobless rates and social unrest as a result. in this unstable environment Grieg Shipping Group is still in a fortunate position with financial security, demand for our services in the market and good support from our stakeholders.

however, we are no doubt heading into some difficult years with increased competition in our open hatch niche, oversupply of dry bulk tonnage and an uncertain economic outlook worldwide. at the same time we have stretched our financial position with our big newbuilding program increasing our cost base accordingly.

This was however, expected when we made the investment decisions, and we still believe our fleet renewal program is crucial for our long term success. nevertheless, there will be challenging times ahead and our ability to work efficiently together, utilize all our resources, and be creative and dynamic is essential to stay ahead in the coming period.

our strategic positioning project, which we have invited you all to participate in through questionnaires, is part of our preparation for, and protection of, our future market position. We have to make sure that we have taken into account and listened to all the educated input from involved parties where our worldwide organization, our customers and suppliers are the most crucial. Thank you for participating in this process and giving us valuable evaluation of critical aspects of our business. it will give us a better fundament to manage our operation and hopefully steer in the right direction in this current turbulent world.

Let us not however, allow the current bleak economic environment to completely color our view of the coming years. The building process has begun and already next year 4 of our 12 new state of the art open hatch (10) and Supramax (2) vessels will join our fleet. new production facilities to serve our customers needs even better, with improved loading capacity, increased flexibility, reduced energy consumption and many other innovative improvements. They are our new generation of ships that will be the core of our business in the coming decades, together with all of you; our unique organization and competence base, both of which shall secure our existence also in the future! in the meantime we have to dig in our heels and do our outmost to protect our position and profitability through the bad market.

Words from the CEO

Common effort is essential in a turbulent world!

4


Commercial corner

at the time of writing this article, the general dry bulk market is on its way down. We are now seeing the index around uSd 15,000 per day for the Supramaxes. our market view remains the same, ie. it will be tough through 2012 and well into 2013.

So far this year about 54 million dwt has been added to the dry bulk fleet - 73.5 million dwt delivered, against 19 million dwt sold for demolition. china has lately reduced their import of raw materials. and with the general lower demand, such an increase in the fleet does not look good from a market perspective.

For our bulk division we are well positioned for this development. We still have a lot of cargoes on contract, and will be in need for t/c vessels in the coming months. We will have two conventional newbuildings delivered next summer, which will help our overall scheduling. also, with our own tonnage it is easier to build up more long term trades.

cbcd is again delivering a fantastic result for 2011. Time will tell whether we have done things right also for the next year or two. however, if our market view proves to be right, the way we have positioned ourselves should indicate fairly good results in the future.

in the open hatch division the results are also very satisfactory for 2011, given the environment we are all part of. Looking ahead there will be a lot of capacity delivered in our segment the next three years.There are several new pulp mills being constructed in brazil and uruguay. but with the introduction of STX pan ocean in brazil, there will be an overcapacity in the open hatch segment in the years to come.

by having a bit longer horizon, there is no need to be too pessimistic towards the end of this decade. The order book is what it is, but with 2.5 to 3 percent growth annually for market pulp, it should be balanced out a year or two after all current ordered vessels are delivered.

in the meantime, we all just have to continue to work hard, and be focused on our current and new business.our newbuilding program will start with the first two open hatch vessels being delivered, in July and September next year.We are all looking forward to this expansion and “renewal” of the fleet. our focus might differ slightly from our historical concept, but we will still be in the parcel business. This operation demands a different setup and a different operation than the regular bulk trades.

it is the people that make this work. We have a fantastic organization with highly skilled people in all our branch offices, as well as in the headquarters. Thanks to all of you for extremely hard work and dedication to our business.

Thanks also to everyone onboard our vessels, for hard work and safe carriage of our cargoes.

merry christmas and a happy new Year!

best regards,

Tom Rasmussenpresident and ceoGrieg Star Shipping

Dear colleagues

5

When we talk about social media, we often refer to Facebook and Twitter. but social media are more: millions of people publish their own blogs, or comment on newspaper articles. Sometimes also Grieg Shipping group are mentioned. how should we, as employees, conduct when Grieg Shipping Group is mentioned in these media? When should we take part in discussions, and when should we leave to the management to answer?

New guidelines for social mediaThink twice before you comment on issues regarding Grieg Shipping Group in social media. And separate your role as a private person and an employee.

Grieg Shipping Group has now developed guidelines in order to assist our employees so that their conduct in this field of communication and marketing will be proper.

The HR Department

You will find the complete guidelines at the intranet, here is a short version:

1. as an employee of Grieg Shipping Group you are personally responsible for content that you submit to blogs, social networks, comments in internet newspapers or other user generated media. Thus, think twice before you make something public, and remember that what you post will be accessible for a long time.

2. if you make a statement about subjects that are within Grieg Shipping Group’s field of interest, identify yourself as an employee of Grieg Shipping Group, with your full name and title. always write in ”first person”, and emphasize that you are making a personal statement, not as a representative of Grieg Shipping Group – unless this has been made clear in advance.

3. respect copyrighted material and rules concerning financial communication. read and make sure you’re updated on Grieg Shipping Group’s Strategy of communication and the instructions that you find in the contract of employment.

4. it is ok to talk about your work and participate in a dialogue. however it is not ok to publish confidential information; that is everything which includes details about software, information about active and new projects, future dates of launching, financial information, trade secrets etc.

5. never share information which is intended for domestic use only within Grieg Shipping Group. if in doubt, ask your supervisor.

6. do not quote clients, partners or suppliers of Grieg Shipping Group without approval. if you make a reference to a source, always remember to link to the original source. be truthful, don’t write or comment anonymously, under a pseudonym or a bogus nickname. use your real name; be forthright about who you are, and that you work for Grieg Shipping Group.

7. be respectful when commenting. don’t use racist expressions, assault

people personally or conduct in other behavior that you otherwise wouldn’t approve of in your workplace. be respectful when it comes to the opinions of others, for instance in relation to discussions about politics and religion.

8. if you discover that you have made a mistake, be the first one to make it right. dishonesty will always be revealed. if you change a contribution/a quote, always indicate what changes you made.

9. Find others who blog or comment on the same subjects as yourself, quote them on your blog using a link, and comment on their blog. don’t comment just to comment though – you should have something relevant that you want to convey.

10. in a crisis, in relation to a considerable incident and when it comes to communication of the strategic kind, the management is always responsible for all domestic and external communication – also in social media.

Grieg Shipping Group’s 10 rules for social media

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Technical corner

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We are pleased to see that ship management for our vessels the first five months of 2011 has been taken care of within budgets and without major incidents or off-hire (with the exception of collision with berth for “Star Hansa” during call to Japan). Also external audits so far this year have positive results.

We have just arrived back from manila after the second officers’ conference this year. an extensive agenda was prepared including among others general information, our leadership program, safe job analyses, root cause analyses and operational issues. all these subjects are important elements in our continuous improvement process. i was happy to see the good dialogue between the participants. Good and trustful communication is essential for making a good team.

We are now well into the budget preparation process for 2012. i am extremely pleased to see that we this year will manage to keep our expenses more or less within budgets prepared a year ago. Systematic and structured follow up of maintenance and prioritized focus during dry-dockings starts to pay off. planning and budgeting is the first stage of the job. if we are to succeed, the good work has to be followed up every day both onboard and ashore. i am also pleased to see that the budget proposals prepared for 2012 indicates a cost level below this year. We are in a challenging period for our industry and every dollar we manage to reduce is a dollar earned on our bottom line.

Steel cutting for our extensive newbuilding program has started both in Korea and china. We will have four new vessels delivered next year, two L-class open hatch vessels and two supramax’es. our site teams are already in place and we wish them good luck with their important task to ensure good quality and standards. We look very much forward to see the new vessels in operation.

in order to have sufficient tonnage available to carry the cargo committed we have

decided to extend the lifetime for our oldest vessels by 5 years. a thorough evaluation has been carried out by our technical department in order to ensure that this can be done at an acceptable risk level and without any increased safety exposure. required preparations for extended sailing periods are included in the scope of work for the forthcoming dry-dockings.

The Grieg Fleet energy efficiency program was introduced during our recent officers’ conference in manila. reference is also made to a separate article in this edition of crew.

energy efficiency shall have our continued focus going forward. implementing good procedures and training are key elements in this respect. We have an ambitious goal of reducing the energy consumption onboard our vessels by 20% by 2015 compared with the 2006-level. Several projects have been initiated aiming at reducing fuel consumption. one key project is the emip2 project together with five other leading norwegian ship owning companies. more will follow. our vessels have been upgraded with equipment and systems to monitor and measure our performance. Specific ship energy efficiency management plans (Seemp) will be developed for our vessels during the coming year. our improvements will have to be documented in the Seemp for each and every vessel.

Focus on optimum condition of our machineries will be further followed up. our systems will be improved in such a way that deviations from the optimal condition will be highlighted for all involved in operation (both onboard and ashore). The bunker oil price has risen drastically the

recent years and will for sure continue to increase. energy efficiency is thus not only good for our environmental performance but also for our economic performance.

Thank you all for a well done job during the year soon coming to an end!

christmas is just around the corner and i will take the opportunity to wish all of you the best for the holiday season.

Henry Svendsenceo Grieg Shipping

7

Sokrates Trilles, Mamerto adajar, gaudencio Banilar, Orlando Borja, Suha Joh, roman Oliva, rodolfo Cayabyab, narve Hoel and Kyung-Sup Kim

The steel cut ceremony for the first hull was taking place on 18th october 2011 at hyundai mipo dockyard, Korea. The site office was opened one day earlier by capt. rodolfo cayabyab as Site manager. The most of the internal site team members will arrive in the beginning of november. Full manning is expected during Jan/Feb 2012. all hull blocks will be fabricated in

Korea, while cargo hatch covers and cranes will be fabricated in china by cargotec (macgregor). We will have two supervisors present in china, one internal and one external. delivery of the first vessel is scheduled to 23rd July 2011.

Roar FanebustSenior project manager

from the left:Kyung Su guahk (Dnv), Sasan Javadi (Dnv), H. S. Kim (HMD), Henry Svendsen, roar fanebust, aage O. langeland, narve Hoel, Suha Joh, Kyung-Sup Kim, rodolfo Cayabyab, Joon park (HMD), Daniel Baek (HMD)

The building of the first L-class vessel has started

Steel cutting

The site office

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Visits on board are a very important activity; this is the only way we can meet face to face with our collegues. Last year we carried out 79 visits and so far this year we have completed 60. none the less, it is from the office we can serve the vessel best. Together with our collegues in the purchasing, Qa and operations departments we try to coordinate the day to day running of our ships. Ship operation is a team effort, not only on board, but also in the office.

as you all know, we have the overall responsibility for a number of our good vessels. We communicate more or less daily with representatives from various authorities, follow up on audit or vetting findings, correspond with suppliers and service personnel and make our best efforts to stay on top of everything that is going on. an increasingly important activity is to plan for the yard stay. in the later years,

we have changed from a 30 to 60 monthly yard schedule. at the same time, more system overhauls are being scheduled for the yard. Spare parts might have up to one year delivery time, so proper planning is of the essence.

nevertheless it is important that the ship management teams take active part in this planning, both by providing information and defining the needs and scope for the specification. in addition to the discussions we have during the regular visits and the resulting visit reports, amoS is a good tool for our common memory. once entered there, a work order will not disappear before we report the work done. Tom-egil is a great help to us all, keeping the system up and running.

in the office we have formed three groups. The general idea is that there should always be one superintendent present in the office

SuperglueIn the capacity of superintendents, we are on duty 24/7 to assist the vessels if and when required. We are the “glue” between the ship management teams for our vessels and do our utmost to manage the ships in accordance with the company’s policies and goals.

from each group at any time. Sometimes, this is not possible, mostly due to travel activity. (at times, we also need some vacation and time with the family).

We are now starting to plan for taking responsibility for 12 newbuildings and have agreed to take on this challenge with the present staff. Therefore it will be increasingly important to continue the ongoing standardisation processes, to improve our communication abilities and to further define our common goals.


from left: Ole-Jørgen natås, Terje Monslaup, Tore Jensen, Kjell inge nilsen, petter Melhus, Bjørn egil Skogvoll, anders Moseid, Stein andersen, Trygve arntsen, roar T. aastvedt (small photo), leif arild Herøy (small photo).

System responsible for planned maintenance Tom-egil Borgeteien is part of the group

9

Our superintendents are responsible for cost effective and safe operation of 3 vessels each. an important part of their job is to visit the ships 3 times/year and to lead the work when the vessel is at the yard. in 2011 they have carried out 60 visits on board so far and attended our ships during 5 yard stays.

Superintendents at work

our superintendents travel frequently. how do you combine this with having a family at home?

Leif arild herøy (44) has worked as a superintendent for 14 years. 90 days each year consist of traveling, and at home is a family consisting of wife and three children 4, 9 and 13 years.

- my wife knew what she was in for. When we got married i was working at sea and was away for even longer periods of time than i am now, he confesses. he also admits that all the traveling can be challenging. - We don’t have any relatives living nearby, but we can ask friends and neighbors for help. our kids are quite active, so there’s a lot of logistics being planned in our everyday life. We’re also lucky because my wife has a job that’s flexible and she can somewhat adjust her hours.

The traveling seldom ends up as planned, says Leif arild. Generally there are delays, for instance when a ship arrives late to the port. - it was really unfortunate this one year, when i had to leave december 19th and wasn’t back until the 23rd late at night. We had planned to celebrate christmas at our company’s cottage at Geilo, but those plans fell through. The children shed some tears back then. another drawback concerning all the traveling is that Leif arild has to pay people to do the things that he otherwise would do himself if he wasn’t away, like if a bike is broken, or something in the house needs to be repaired.

Still, our employer understands that we have families and the superintendents gladly replace each other if it’s impossible for one of us to go. Leif arild does not plan to change his profession:- This is a job i can enjoy. We are our own bosses and can make decisions independent of others. You just need to try to maintain a normal life as possible outside your work.

Frank Tangencox

A job to enjoy

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Superintendent Tore Jensen in cooperation with Goltens, rotterdam has designed and built five hold cleaning machines. The proper use of these machines will greatly reduce the amount of people and time required for hold cleaning. as a matter of fact, the hold cleaning machine can be operated by one single person from the crane cabin. of course, a watchman will most likely be required.

The machine itself is connected to the turn table by the twistlocks. electrical power and signals are fed though the turn table control/power lines such that all control can take place from the crane cabin. bayonet fixed rotating brushes (of the same type which are used for pavement sweeping machines) are used for primary cleaning assisted by high pressure water that is supplied from an integrated water tank.

With new equipment like this, we will probably face start up problems, but the positive effect will be tremendous with regards to safety, rest hours and efficiency by taking this new tool into proper use. one machine has been delivered to rotterdam; the remaining four will be delivered in a few weeks time. once completed, Grieg Star Shipping will take over the responsibility for the maintenance and management of the equipment. as it looks now, two will be located in rotterdam and three in the uS gulf area.


We have an inventor among us!

Our gantry crane turn table is not designed to handle people, due to the fact that personnel hoists should be equipped with double set of brakes.

in order to provide this second “brake” all ships should by now have been supplied with a double set of fall protection equipment which shall be used when working in the holds, or indeed during any work aloft or outboard.

Safety first

Hold cleaning is a cumbersome task. reported time usage for cleaning of nine holds of petcoke was 5 days with round the clock operation

Tore Jensen has invented a machine that reduces time and cost for cleaning holds onbaord our vessels. The machine is a welcome asset to the fleet.

A clean machine

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ultimo February Karl-erik will have his last workday within Grieg Star Shipping. a career that has lasted for almost forty years will come to an end. Foss started working in Star Shipping the fall of 1972, and was rather green as a legal practitioner. after graduating from the university of oslo in 1971 he worked for a while as a deputy judge, and got his license to practice as a lawyer, until his interest in shipping determined the rest of his professional career. – i wasn’t a complete stranger to the industry, tells Karl-erik Foss. – We had a family business where we worked as agents within transport and forwarding along the coast. When opportunity knocked in the form of Star, there was no doubt in my mind; after many years of studying and working in oslo, i wanted to go home to bergen.

On all levelsas a newcomer he got the opportunity to work in several different divisions, and he experienced the obligatory stay

abroad. however, it didn’t take long before he settled in at the head office, with responsibility for legal matters, claims, insurance and later also as hr manager.– back then we weren’t that many people. We only had fifteen ships, so many of us combined different responsibilities. Since i also was hr responsible, i hired many of the staff members who are now seniors in our organization.Karl-erik also became a member of the executive committee – so he really knows the work on all levels.

Looking for solutionsmaritime law is challenging and includes a lot of complex assessments. in addition english and to some extent uS law play an important role. - The majority of our cases relate to charter parties and contracts of affreightments problems and the challenge is to reach an acceptable solution supporting our commercial interests, Karl-erik tells. - in relation to the number of vessels and contracts in our system, conflicts that have

to be solved by arbitration or in courts are relatively few. in many ways it is a defeat if we cannot solve the conflicts ourselves. That may be true, but his colleague for many years, Jack birkenes, stresses how immense the importance of Karl-erik Foss’ knowledge has been for the company:- his knowledge of the legal aspects in shipping is vast, he is always accommodating and very solution-oriented. he has seen and experienced a lot, and there’s no one who can replace him completely the day he quits.

insurance of ships and cargo is also a complicated area:– The insurance companies offer to some extent standard products, says Foss. – Some insurance covers we need as a “ticket to ride”. Still, we have to evaluate every exposure, and decide what kind of risk we’re prepared to assume ourselves, and for which risks we need insurance cover.

Shipping lifeKarl-Erik Nitter Foss:

- It’s not so hard if you know how to do it, claims Karl-Erik Nitter Foss talking about his job. – None of us will be able to replace him, say his colleagues.

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When customers complainanother area of responsibility for Foss has been claims – dealing with complaints from customers. – What could be the cause of a complaint?– it could be due to negligence, but it is not necessarily because of human error. There could be technical difficulties with the ship or weather conditions that lead to damage. We carry 12-14 million tons a year, so it’s impossible to completely avoid incidents. – do conflicts often occur between the company and the clients?– not really when we have in mind the thousands of transportation contracts we perform. in addition when our customers use their insurance company, we have a professional opponent. besides from that, there are international conventions and regulations which everyone acts in accordance with, like the haag convention. So a lot is already sorted out through regulations and convention.

Sharing his know-howKarl-erik nitter Foss characterizes himself as a “private” person who doesn’t reveal much about himself. one of his colleagues for more than 30 years, Thorleif n. Teigland, characterizes him as calm, a good listener and always looking for solutions. – he was the one that hired me to Star when i was only 21, tells Teigland. – he was then 35, and i looked upon him as an old man. he has not changed much since, one would not believe that he has reached the age of retirement. i learned to know him as a person with authority, but at the same time he is always polite, mild and kind. – he never would tell you that he disagrees with you, instead he says, “i will have a look at it”. When consulting him in a matter, he would repeat some of my words to show he was listening, and assuring me and himself that he understood. he is the lawyer that looks for practical solutions: rather than to maintain a firm position, he would seek to resolve a problem. he is always willing to

share his know-how with people around him. rather than solving the problems on behalf of a person, he would give advice on how matters could be resolved. “people have to learn how to handle their own challenges”, he often says.

it seems Karl-erik will be an active retiree with tennis, skiing and sailing on his list of leisure activities. moreover, he will have to prepare himself for a phone call from the people in Grieg Shipping Group once in a while – they might need to confer with him.

Frank Tangencox

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our trainees work in various departments in our company to learn about different functions and activities. at the same time they participate in the maritime Trainee program run by the norwegian Shipowners’ association. We may also have trainees who follow only our internal trainee program. So far the trainees have been located in bergen or oslo.

The trainees can follow two different tracks, depending on education: commercial or Technical. So far we have had several trainees who have followed the technical track and become Superintendents, and currently we have two trainees following the commercial track in order to work in chartering, namely rong rong zhang and christoffer martinsen.

Following the commercial track the trainee spends 2 years in marine accounting and operation, before going into chartering. in addition the trainee gets a basic introduction to accounting, cargo handling, claims, and maritime and contract law. eventually, we would like the trainee to work 2-3 years abroad.

Following the technical track to become a superintendent, the trainee spends most of his/her time in the technical department working with other superintendents, sailing with the ships and attending dry docking. in addition the trainee spends time in the purchasing department, and learns about the amos system and different technical projects. We have just had one trainee, anders moseid, who has completed this program.

The trainees have their own mentor who follow and guide them during the program. in addition human resources follow up the program together with the responsible manager.

The maritime Trainee program is a two year program which runs over 35 days over 6 modules. attending this program our trainees get the opportunity to meet with

trainees from other shipping companies to learn about the shipping industry globally. Thus they become familiar with numerous functions within the maritime industry already at an early stage of their career. The trainees entering the maritime Trainee program are holding a master’s degree in economics, technology or law from universities in norway and abroad. You can read more about this here:www.maritimtrainee.no/?nid=2311crew Summer 2010 “a red sky in the night is a sailor’s delight”

Berit Myklebusthuman resource manager

Talents in the pipeline

The trainee program aims at recruiting young, talented people to Grieg Shipping Group and to qualify them for key positions in our company.

rong rong Zhang and Christoffer Martinsen

15

This autumn Grieg Shipping Group was represented at the annual career day at the norwegian School of economics (nhh) in bergen.The career day is an annual student-run event, organized by the business committee at nhh and is a forum for information exchange and contact making.

our stand was brand new and a lot of students visited us during the day. This was a very good opportunity to meet new candidates and inform about our business and opportunities in our company.

our company’s strategy is to visit some selected norwegian universities and colleges during the year to promote the students knowledge about Grieg Shipping Group in order to attract the “best heads” to future positions within our industry.

Future aheadCareer Day at NHH in Bergen

in extension of the career day 24 master students came to learn about the Grieg Group’s business areas.The students are taking a course in maritime economics that runs every autumn for master students. The visit to Grieg Gaarden was previously an annual event, and after a few years’ break the tradition is now taken up again.ole Steinar mjell, Senior Vp, hr wished the students welcome and held a short presentation about the Grieg Group organization and then the students were introduced to various companies within the Grieg Group.The students also got the opportunity to visit the office premises and to have a glance at all the lovely art displayed in the stairways.

We received good feedback from the students who highly appreciated the invitation to Grieg Gaarden.

Torill Lundehr department

NHH shipping students visiting Grieg Gaarden

Camilla reinertsen, financial analyst,

rong rong Zhang, Trainee

Thomas Johansen, Chartering

Manager

nHH students in the stairways

eli vassenden helds her presentation about Ship management

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Grieg Shipping Group is part of the Working Group 5 - WG 5 collaboration together with the following norwegian ship owning companies:• Wilh. Wilhelmsen • höegh autoliners• bW Gas • Klaveness • Solvang

during the period march 2009 to may 2010, the WG5 group participated in the execution of the energy management in practice (emip) project.

The main goal in the project was to establish a common platform and ability among the companies to collaborate within the field of energy efficiency in the years to come. in practical terms this means to measure effect of various energy saving measures and share experiences. a coordinated testplan, showing what measure each company has the intention to verify in real life, was also a key delivery from the project. it is this plan which we now plan to execute through the energy management in practice ii (emip ii) project. The scope in emip ii is transferred into what is called: “The Grieg Fleet energy efficiency program”.

Crucial building blocks – sensorsbefore we can do a real life testing, we have to get all building blocks in the total system in place. as all crew onboard our h/i/J vessels have experienced in 2011, we have had challenges implementing new sensors like the torque meters and coriolis fuel flow meters. We have also observed issues related to calibration of sensors. as the sensors are crucial building blocks in the overall system, we have to run a process to ensure that all sensors are working properly and continue to do so.

Speed Trials and onboard measuring of energy saving initiativesThroughout 2012, it is also planned that all h/i/J vessels (except Star istind) will get

installed the so-called Spm system (Ship performance monitoring). This system shows the instantaneous fuel consumption expressed as kg fuel/nm to the crew which gives possibility to monitor effect of various actions taken. as soon as the system is working properly, regular speed trails will be implemented on a regular basis. We do this to monitor performance and to verify effect of various energy saving measures. as an example we aim to fully verify the effect of:• mewis duct installations (h/i/J/L-

class) • propeller bos cap Fin – pbcF

(K-class)• innovative and new antifouling

systemsall required data to do these evaluations will be sent to our main office through the “always on” solution. The testing will as such not result in extra workload on crew.

Traininganother observation which has become quite clear is that the training we have provided in the use of the marorka energy management System has been insufficient and fragmented. We have therefore initiated the following two initiatives:• immediate hands-on onboard

training• establish a shore based training

package in manila • Ship energy efficiency management

plans SeempTo involve our crews in this important work, and to catch all the good ideas among all our seafarers, we aim to develop Seemp for all vessels which summarizes all actions which can/shall be taken to reduce the use of fuel. if we for example manage to reduce our fuel consumption with 20 % on one h-class vessel, the annual saving be in the magnitude uSd 1 mill. Savings in this magnitude seen from a fleet perspective will strengthen our competitive position, improve

environmental performance and be a part of Grieg Shipping Groups positioning for the future, a future with prospects for ever increasing cost of bunkers.

Management Team Grieg Shipping

Help us save energy! The Grieg Fleet Energy Efficiency program


Maritime collaboration

research and development (r&d)We are deeply engaged in a series of research projects, in close cooperation with other shipping companies, sometimes taking leading roles. • eMip i and eMip ii• eMiSOl - emission reduction

Solutions and impacts for Transport Systems

• low Carbon Shipping• Maritim21 • Wg5

miscellaneous• grieg green is established

in order to contribute to environmentally friendly recycling of ships.

• Star istind equipped and nominated as test-ship for energy-saving measures.

The planned duration is 2012/2013. To achieve success teamwork is of the essence and we are totally dependent on our seafarers.

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Long time have elapsed since we were faced with the first ever Sulphur emission control area (Seca) in may 2006 in the baltic, setting a limit to the sulphur content in the fuel of 1,5 per cent.

This was international maritime organizations (imo) first step on the way to a cleaner environment. in The marpoL annex Vi they were giving a timetable for the shipping industry to follow in order to reduce any harmful emission from the vessels engines. First and foremost it was setting limits on the sulphur content in the bunker fuel that could be burned, but it is also setting limits on the emissions from the vessels stack. This gives the ship owners the alternative to either use cleaner fuel or to clean the exhaust gas in the stack in what is known as a “Scrubber”.

What has happenedas there has been a remarkable improvement in the air quality throughout northern europe, it was quite obvious that the measurements taken by imo and others were a step in the right direction.

Since 2006, we have now gone a few more steps on the ladder to cleaner air. The first Seca was extended to include the north Sea up to 62” north. The european community have introduced a strict regime as to what you are allowed to use in european ports, only 0,1 per cent sulphur content. The same goes for an area 24 miles off the coast of california.

Then in 2010, the sulphur limit was reduced to 1 per cent within the emission control areas (eca). Just around the corner, we have two major changes coming up, first in January 2012 the worldwide sulphur limit in all bunker fuels will be set to 3,5 per cent as opposed to 4,5 per cent today. Then in august the united States and canada will become an eca, with a 200 miles zone around the coast.

With all the trades we are running in and out of that area, this could prove to be a real challenge to us, both in respect of getting sufficient LSFo (low sulphur fuel oil), but also operational wise onboard the ships with the tank configuration they have.

Future challengesLooking further ahead, the next hurdle will be coming January 2015, when we are not allowed to use anything but fuel with a maximum content of 0,1 per cent sulphur within the eca’s, which in essence means that we have to use marine Gasoil. This will be quite a economical burden, but again, it means that we have to take a closer look at the tank configuration to make room for larger quantities of marine Gasoil. another viable option, is to install scrubbers, which according to many experts will be the only sensible solution, both economically and technically. The availability of such products in the quantities needed, on a world wide basis, will be problematic. This will be an even bigger problem in 2025, when all bunkers used will have to be below 0,5 per cent sulphur.

Terje W. Cookbunker manager

Cleaning the environmentThe sulphur limit in all bunker fuels will be drastically reduced. This will bring cleaner air, but also a multitude of challenges for the shipping industry that have to be solved.

Bahamas

Saint-pierre & Miquelon

Hawaii (uS)

The united States

Canada

alaska (uS)

New ECA:

east/West coast of uSa. in force by august 2012.

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China – a leading wind power country

Wind power is considered as a major renewable natural resource utilized and developed under the background of global efforts of coping with increasing energy demand,

environmental protection and reducing greenhouse gases. Wind power industry is also seen as a strategic industry and economic driver.

High ambitions in Chinain china, the wind power industry went through a fast expanding period during the past five years especially driven by the favorable government subsidy program. Though the traditional coal thermal still dominates the total electricity output, it is evident that clean energy is necessary for a sustainable economic development. according to china’s 12th “Five Year plan”, the clean energy (including hydro

power, nuclear power and wind power) ratio shall rise to 23.7% in 2015 from 18.8% in 2009. in terms of newly installed capacity, the global wind power development focus has been shifted to north america and asia. in 2010, china’s newly installed wind power capacity has ranked first, with several chinese companies as Sinovel, Gold Wind, dongfang electric and Guodian united power entered into world top ten wind power suppliers in terms of installed capacity.

Facing challenges2012 is seen as the turning-point year for the chinese windmill industry. The industry is facing bottleneck for future growth and company profits are failing due to suspension of government subsidy and highly competitive market environment. The leading companies are aiming to enter new overseas market. having said that,

chinese companies do need to curb some problems to grow from big scale companies into internationally recognized companies, technically and marketwise. core turbine technology, quality control and after sales services are the challenges for their overseas ventures.

Looking at new areasas we know well, Grieg Star Shipping is actively participating in shipping windmill project cargoes from china to north america, thus playing a positive role to make the world “greener”. north america will continue to be an important growth area for windmill projects throughout year 2012. We hope the trend will continue, not only to north america, but also to other strategic areas we are currently looking at, e.g., South america and australia.

Kevin ZhangShanghai

Grieg Star Shipping is playing a role to make the world greener – by shipping windmills. The windmill industry has been rapidly growing in China, and North America will continue to be an important market.

LED lights saves money and the environment

- We wanted to see if we easily could change from ordinary light bulbs that we use today to Led bulbs, and started a project in april this year, says may britt bjørø from the purchase department.

- one of our suppliers of electrician articles went onboard Star hansa when they were in europe in July. after the visit they came up with a report and a quote for various types of Led lights. We placed an order for four pcs Led lights to both Star hansa and Star istind to try this out. This type correspond to a normal 500W bulb, but will emit much lower heat, last much

longer and consume much less energy. all these aspects will again give us a safer vessel, less maintenance for the crew, lower consumption of fuel and less emission to air. The conclusion is that we can save uSd 7.100 each year for the holds only for one vessel. This is not only a win-win situation, but a win-win-win-win.

The Led-lights will be delivered onboard Star istind beginning of november this year and to Star hansa in december this year.

May-Britt Bjorøpurchaser

light emitting Diodes (leDs) convert electric energy directly into light of a single color. leDs use “cold” light generation technology and deliver the the energy only in the visible spectrum. This mean leDs don’t waste energy in the form of non-light producing heat. in comparison, most of the energy in an incandescent lamp is in the infrared (or non-visible) portion of the spectrum. as a result, both fluorescent and HID lamps produce a great deal of heat.

LED lights?

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a grieg vessel vessel loading windmill towers at lianyungang port, back in the port yard, piles of coals stored for thermal power plants, reflecting the “old” and “new”. photo: James Wang

The Bund, a landmark in Shanghai. The city lights are part of the tourists scheme. Hopefully more light will be generated by cleaner power in future.photo: Kevin Zhang

Shanghai: The Bund

Loading windmills

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Grieg Green’s first steps towards recycling of MV Höegh Trotter

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The contract is based on a full package solution, including cash-buying, inventory of hazardous materials (ihm), supervision

at the recycling yard and other related services.

The vessel will be delivered at one of Grieg Greens pre-approved yards in South china 2nd december. The contract was awarded to Grieg Green against very strong competition from other bidders.

in the first phase of the recycling, our hazmat expert and Technical manager allan Gao and our Sales manager Lars Klaveness (as observer) sailed with the vessel for 4 days to undertake an ihm survey onboard. The purpose of carrying out an ihm survey, also known as Green passport, is to take samples of material which we suspect contains hazardous material such as asbestos and pcbs etc. This again will be used as a basis for making a ship recycling plan; how to cut the vessel without injury to people employed at the yard and without harming the environment.

We embarked the vessel in bremerhaven together with a representative from Germanischer Lloyd. in total more than

a hundred samples of painting, insulation, cables, concrete, oil, ceiling plates etc. were taken and sent to a pre-approved laboratory in Shanghai to check if they contained hazardous material.

after having received the results from the laboratory, we see that the vessel contains less hazardous material than expected. however, the result states that there is some asbestos onboard which needs to be taken care of in an appropriate manner. The nominated chinese yard will start cutting the vessel in december in accordance with imo’s forthcoming hong Kong convention for sound recycling of ships.

allan is currently preparing the recycling plan together with the yard. in this transaction Grieg Green is acting as a buyer of the vessel (cash buyer), but to decrease the risk to a minimum the vessel was immediately resold to the recycling yard. We look forward to taking delivery of the vessel at the recycling yard on the 2nd of december. Thereafter we will supervise the cutting process to make sure it will be done according to designated safety standards, ie. the hong Kong convention.

Lars KlavenessSales manager

Grieg Green has signed their first contract with Höegh Autoliners AS, where they will do a fully green recycling of the vessel “MV Höegh Trotter”.

The Hong Kong Convention

The Hong Kong international Convention for the Safe and environmentally Sound recycling of Ships, 2009 (the Hong Kong Convention), was adopted at a diplomatic conference held in Hong Kong, China, from 11 to 15 May 2009, which was attended by delegates from 63 countries.

The Convention is aimed at ensuring that ships, when being recycled after reaching the end of their operational lives, do not pose any unnecessary risks to human health, safety and to the environment.

The Hong Kong Convention intends to address all the issues around ship recycling, including the fact that ships sold for scrapping may contain environmentally hazardous substances such as asbestos, heavy metals, hydrocarbons, ozone-depleting substances and others. it also addresses concerns raised about the working and environmental conditions at many of the world’s ship recycling locations

allan gao, Technical Manager

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WWF in the PhilippinesWWF implement conservation and development projects in 11 provinces and at least 31 towns in the philippines aiming to: • provide practical solutions to climate

change• conserve local ecosystems • ensure food security • develop eco-tourism • empower communities to live low-

impact lives

one of the areas where WWF is active concerns the preservation of the Tubbataha reefs in the Sulu Sea. it is the home of a diverse marine wildlife, from corals, fish, sharks and turtles to sea grass and algae.

Today the Tubbataha reefs stand out as one of the best managed offshore marine protected areas in the country, but things have not always been like this. before it was declared a national marine park in 1988, Tubbataha’s residents suffered from exploitation, with generations of fishermen

gathering not just fish, but turtles and bird eggs as well. Later on, the reefs proved very vulnerable to climate change, and are threatened by extreme weather, higher sea surface temperatures and ocean acidification. Luckily, the efforts over the years to

protect and conserve the Tabbataha reefs have proved fruitful.

WWFs work in this area include obtaining data and monitor, survey and assess the possible effects from climate change on wildlife as well as humans. operating the research vessel m/Y navorca across the Sulu Sea is a vital part of their continued efforts. Grieg Shipping Group and Grieg Foundation are funding the upgrading and refitting of the vessel taking place this year, in order to ensure safe travel to staff, researchers and scientists. The vessel will once more be ready to explore and protect the mysteries of the Sulu Sea by the summer of 2012 onwards.

The Coral Triangle The coral Triangle, the global centre of marine biodiversity, is a 6 million km2 area spanning the philippines, indonesia, malaysia papua new Guinea, Timor Leste and the Solomon islands.

Within this nursery of the seas live 76% of the world’s coral species, 6 of the world’s 7 marine turtle species, and at least 2,228 reef fish species.

however, there are serious problems: rising temperature from global warming may cause higher rates of coral mortality and even local extinction in isolated, small populations. The 1997-98 el niño storms triggered the largest coral bleaching event ever recorded. an estimated 18% of the region’s coral reefs were damaged or destroyed. in addition, tuna, shark fin, turtle products and reef fish are being taken out of the water at unsustainable rates.

Ole Steinar Mjell Senior Vice president hr

Supporting environmental careEarlier this year we proudly announced Grieg Shipping Group’s partnership with WWF in Norway as well as the Philippines.

Grieg Shipping Group Receives Environmental Leadership Award

Grieg Shipping Group received the WWF environmental Leadership award for its support in rebuilding m/Y navorca; WWF-philippines’ only research vessel.

m/Y navorca provides research and transport services to WWF-philippines’ conservation work in the Sulu Sea, specifically in the Tubbataha reefs natural park and the island municipality of cagayancillo, which is about 180 nautical miles from the city of puerto princesa in palawan.

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Over a hundred bird species regularly visit the Tubbataha reefs. eight have been known to breed locally. Sadly, Masked Boobies (Sula dactylatra) were declared regionally extinct in 1995.

unfortunately, human waste such as plastic items often entangle, smother and kill many seabirds - including this doomed Crested Tern (Sterna bergii) at Tubbataha north isle. WWf plans to spearhead a campaign to minimize the usage of plastic bags.

Tubbataha Bird Islet

Silent Killers

Declared a World Heritage Site in 1993, the Tubbataha reefs are amongst the richest and most productive areas within the Coral Triangle – the earth’s centre of marine biodiversity. a healthy coral reef has about 30 to 40 metric tonnes of fish biomass per square kilometre.

WWf’s M/y (Motorized yacht) navorca plies the Sulu Sea to conduct research and to protect the vast reef complexes, now covered by a new law. The Tubbataha reefs natural park act provides more permanent local management structures, fiscal autonomy and steeper penalties for violations of the park’s rules. Today, the park stands at 97,030 hectares and is undoubtedly the most biologically productive in the country.

Coral Meadows

WWF Research Vessel M/Y Navorca

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in italy our branch office is based in Livorno. This location had sufficient draft available, and served for several years as a unique hub port serving the whole of italy from the north and south to Sicily.

The first vessel to call at port was Star clipper fully loaded with green lumber from bcWc. in the 80’s followed a service from uSGulf with expansion to other ports in italy. naples and Savona in 1978 and Venice in 1988. Venice was replaced with monfalcone in 1992.in addition to the italian ports we had calls to palamos (Spain), Sete (France) and piraeus (Greece). The other services from indonesia and brazil in 1995/96 resulted in expansion to the ports of marina di carrara, Tarragona (Spain), Koper (Slovenia) and then back to Sicily with lumber.

DevelopmentThe Livorno office main function has been to take care of import cargoes from other areas around the world except for smaller export cargoes like paper and railcars.We have been focusing on developing cargo care and improvement of production

by introducing new equipment both for the vessels and the shore side. For instance implementing the 70 mt mafis concept in our main ports.

We continuously run courses for stevedores and terminals operators on how to handle our cargo that needs particular care. This is important as more fluff shipments to italy has started.

New challengesToday we have two services into the mediterranean area. one from chile to palamos-Livorno-monfalcone, the other from uS Gulf to Sete-Savona-Livorno-naples-motril. The Livorno office together with bergen and Gotenburg are looking at opportunities to develop import/export cargoes from other than our traditional ports. Since last summer Gothenburg and Livorno offices in cooperation have been working to develop project cargo business. The first meetings resulted in great interest in our services, and this will be the new challenge.

Lucia FilippiVp and General manager

40 years in Livorno – always improvingOur activity in Livorno started in 1971, and we are still meeting new challenges.

The Livorno stafffrom left:

roberta digosciu Chartering/Operation assistant. assisting in chartering activities by collecting costs and information needed, and on the operation activities coordinating vessels calls.

lucia filippivp and general Manager.responsible for marketing, administration and management of the office. She is also involved in port- and stevedore contracts, in addition to general costs control.

ottavia cavaliere Marine accountant/Documentation.Marine accountant controlling all Da and expenses related to vessels calls. She also follows up operation and documentation.

maurizio giarola Operation and Technical Manager.responsible for operation activities like follow-up discharge operations, production and quality. involved in developing new equipment to improve quality handling and production, and maintaining equipment in use.

Livorno, Italy

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The construction of the Diga Curvilinea (Curvilinear Breakwater), located in front of the harbor built by the Medici family was started in 1858.The Diga Curvilinea represented an innovative work and became the emblem of the port of livorno. it is still working today and requires limited maintenance works.

Star Japan and the famous Livorno breakwater

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once again our office has seen an increase in business and everyone has been working exceptionally hard. our port captains have been spending a lot of time on the sea to sky highway travelling to Squamish. We have worked with each other for many years, and this year we celebrated our first annual Team building event with a ‘Sea Quest Scavenger hunt’ at the Sewell marina.

Creative teamsduring this event people were organized in teams of three or four and were given a variety of questions that needed to be answered. in order to answer these questions each team had to search the 12 square miles of howe Sound on their own speed boat.

From the moment that the race started all you could see was the speed boats speeding by. Teams answered the questions with a bumpy ride and had to quickly dock

the boat while someone jumped ashore. Finally 2 1/2 hours later each team came back with creative answers, drawings, and songs. The winning teams were rewarded with prizes and so was the team that came in last place. Finally the event concluded with dinner.

Building relationsThrough this event we learned more about everyone’s strengths and saw how we can achieve our goals by working together. by bringing everyone together helps extend relationships between different departments and enhance our team.

We appreciate everyone taking time out of their busy schedule to participate and make this event successful. and we hope everyone looks forward to next year’s event.

Judy Wu and Sundeep ThakurVancouver

Team building by speedboatFor the first time Grieg Star Vancouver and Squamish Terminals left the office behind to develop our team – at high speed.

Vancouver, Canada

‘Sea Quest Scavenger Hunt’ at the Sewell Marina.

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Cleaning the Shoreline Mayor gardner and ron anderson withSquamish Sparks.

Great Canadian shoreline

every September, canadians from across the country head to their shorelines to support the nationwide cleanup initiative known as the Great canadian Shoreline cleanup.

in its inaugural event, Squamish Terminals organized of a group of supporters and more than 100 volunteers to tackle the Squamish estuary along the shores of howe Sound. Kim Stegeman, manager of marketing & administration, championed the cleanup for Squamish Terminals with the help of erin Yeo, marketing & administration coordinator. Together, Kim and erin coordinated the cleanup followed by a volunteer appreciation bbQ. Squamish Terminals plans on making this an annual event.

900 kilos removedparticipants included Squamish Terminals administration, management and union staff, district of Squamish staff, home depot staff, the Squamish Water Trail Group, Squamish Girl Guides & Sparks and many more. in just 1.5 hours, the teams collected more than 85 bags of garbage and recycling, several buckets full of glass, a truck and a half full of metal items and a number of odds and ends. it is estimated that approximately 2,000lbs (900kgs) of waste was removed and that the event significantly increased awareness of the impact of litter on our shorelines.

Victorious Mayorin a challenge between mayor Greg Gardner and his district of Squamish (doS) team versus Squamish Terminals

president & ceo ron anderson and his Squamish Terminals team, team doS was victorious by collecting 6lbs more waste. Together the two teams collected approximately 120lbs of waste from the Squamish shoreline.

Great job to all the participants involved in this effort!

For more information on the Great canadian Shoreline cleanup, please visit their website at www.shorelinecleanup.ca

Erin Yeo Squamish Terminals

Nearly a ton of garbage was cleaned up by the people at Squamish Terminals, with a little help from their friends.

Top 5 Most Unusual Items Collected Computer3 BicyclesTent & Sleeping Bag3 Shopping CartsMetal Wheel frames/Discs

Top 5 Items of Concern to our Volunteers

CigarettesplasticsStyrofoamDog poop in Bags & not BaggedConstruction Material

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Looking at our cheerful smiles, you can’t tell the difference between a beach party back home and a grill party at the ship, (even though with mooring winches and files of ropes around), after the busy days of work in ports --at sea the officers and crew spent time to gather together at the “popa” poopdeck to have sumptuous dinner of “lechon” (suckling pig) escorted with some tasteful wines. everyone has wolfed at the “lechon” which is everybody’s favourite and usually resembles a grand celebration for Filipinos.

We were wrong to expect never-ending work on ships before we joined. We also socialize and create big parties here. aside from the grill and fishing, sport competitions are likely organized.

Star Japan: Let the fun begin!Who says that Seafarer’s life is dull and full of adversity?

1. fun BBQ party 2. Catch of the day3. The famous Star

Japan azkals. let the games begin!

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2

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Yeah, name your game and you’ll find a challenger. basketball? Try to be a michael Jordan during weekends in our basketball court. We as well smash ping-pong balls in our Table Tennis tournament. if you are a pacquiao fanatic, or a Tiger Wood aficionado — you can be what you want, choose your sport: boxing, golf, lawn tennis, bowling we have it all - courtesy of Wii sports (videogame), compliments of the welfare fund.

moreover, relaxing events are likely arranged during long voyages. Win a prize at the bingo party and chess competition. dull moment does not exist here because you can sing like bon Jovi and dance michael Jackson’s move to drive your worries away in our big screen during Karaoke nights at the recreation room. The fun is not limited there because internet on-board is ‘aLWaYS on’, we can chat in Facebook and Ym-- 24/7 during our free-time.

So, it is not all work here, the pictures speak for themself. We also play! come on guys, let the games begin…

Larry Feb Jamerlan Jim Carlo Elgario

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The last walk of the season went to rundemanen on the 25th October. The weather was fabulous, warm and sunny. it felt more like summer than late autumn. at this time of year we usually have snow in the mountains around Bergen. a great end to the walking season!

At long last – bright sunshinedespite a particularly poor summer this year, the hiking group has refused to be beaten by the rain and has managed a total of 27 walks in the mountains surrounding bergen.

The highlight of the season was the annual weekend trip to the islands of hovden and Kinn on the west coast of norway. We left after work on Friday and took the boat up to Florø and then another boat to a tiny island called Færøykavlen where we stayed in small cabins.

The scenery was spectacular and the weekend was a great success socially, but the hike the next day over Vemannsrøysa on hovden will go down in history as one

of the wettest trips ever. The rain bucketed down for hours on end and despite our expensive hiking gear we all ended up soaked to the skin. We couldn’t have been wetter if we’d jumped in a lake with our clothes on! but we warmed up a bit after drinking a medicinal toddy(!) and a very interesting visit to the 12th century church on the island of Kinn (population of 12 and namesake of the Star Kinn).

as is typical, the sun shone brightly the next day as we took the boat back to bergen.

Elizabeth Hornbergen

The hiking group beats the rain

Three girls in the rain enjoying the view The old church at Kinn from the 12th century

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Responsibility awarenessThe main topic, being the underlying focus for all discussions, group work and presentations was responsibility awareness. To have responsibility in each and every position in the company, both onboard and ashore, to take this responsibility and act upon same and to acknowledge this responsibility is vital for our success in the future.

We will fail if we are not able to accept responsibility and understand what is required by each individual person in the organisation. responsibility cannot be delegated.

Safety and compliancean important topic addressed during the conference was the fact that our focus on safety and compliance seems to be decreasing. We are not the best any more. The number of findings during port State controls increase, frequency of class findings increase – and number of findings during internal audits increase. The responsibility is on several hands, and all hands must take this seriously, whether onboard or ashore.

onboard everyone has a particular responsibility to focus on safety for himself and his colleagues. Good operational practice is the foundation for long-term safe operation of a ship.

everyone in the company, onboard and ashore, know our type of vessel best, and no one can operate our ships than us. We have the experience, the knowledge and the competence. We have been the best for so for many years, and all of a sudden, we are not. We have to turn this trend – and we have to improve now, because a poor market is not the time to have detentions, it is not the time to have low rating from

the class, it is not the time to receive particular focus from the authorities. in a poor market, we have to be the preferred carrier, we have to remain the chosen one, always be on time, passing any and all inspections with flying colours.

We worked hard together during several days at the conference, everyone put in a lot of their spare time to be present and to give valuable input to what it takes going forward, for which we are grateful.

Back on trackWe strongly believe that during 2012 we shall be able to come “back on track”, to take responsibility and focus on the important matters. The tool to be used is training, focus and taking responsibility. it is important that everyone knows his own role and what is expected. Self-confidence and willingness to ask when uncertain is vital to success.

and then, it is up to the management to develop a team spirit, working together with a common goal creates results. Good communication is of course critical. be clear, ask questions and never do anything without understanding why.

We must all join forces in order to improve. We must all take responsibility to get back on the level where we want to be. The conference was a good forum for these discussions, and the good discussions held will increase the focus.

We have challenging times ahead, but also positive and motivating times – 12 newbuildings will be delivered the next three years. The conference demonstrated that we are motivated, we are dedicated and we are willing. it is indeed positive to spend time together, not only for the presentations, the group work and the

discussions, but also to learn from our fellow colleagues, our fellow Griegorians. We are a company for the future, and together we shall achieve success!

Dedication and commitmentThe conference was this year extended into Saturday, when the 4 top officers, the Fleet managers and the Safety and Quality manager had a final session. Saturday evening was the time for joining all participants together, including our seven retirees who received a token of appreciation for their long and valuable dedication and commitment to the company.

as you all know, our colleague and friend captain azanza passed away just a few days after the conference. We all know that he would very much have liked to be a part of this conference, to be present and to meet you all again. We will always cherish the memory of him.

as a conclusion, i would like to take this opportunity to thank each and every one of you, onboard and ashore for the hard work, the commitment, the dedication and the support to the company that you have shown throughout 2011. may i send the best wishes for a peaceful christmas and a prosperous new Year to you and to your family.

Eli K. Vassendencoo/Grieg Shipping

Responsibility awarenessOfficers’ conference October 2011:

More than 90 officers participated on the autumn Officers Conference 26th till 29th October. Together with attendents from the Grieg offices in Manila, Shanghai and Norway, they made the days eventful and informative. Important and challenging topics were addressed and discussed from all angles.

“We are a company for the future, and together we shall achieve success!”

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The workshop started on Wednesday 26 october 2011, with a half day orientation on self-assessment and self-actualization. The next day, Lina bellosillo-Laigo, the former Secretary of the department of Social Welfare and development and uniceF consultant for the council for the Welfare of children, held a presentation on husband and Wife relationships, with particular focus on seamen’s families. The wives got a chance to share their thoughts and experiences, and address what they wanted to achieve in their relationship with their husbands.

on the last day of their seminar, marit Sanne, head of the maritime Section of the royal norwegian embassy in manila, presented the findings of her study on philippine seamen’s families. her study

was titled “it’s a Way of Life – it’s our Way of Life”. She touched upon many of the challenges and parts of life when living apart. She herself has lived with a seaman’s family in cebu for a period of time, where she also had the chance to meet many other seamen’s families.

as a natural move from the husband and Wife relationships, Lina bellosillo-Laigo moved on to discussing the parent and child relationships, and the challenges facing the children in seamen’s families. This was another topic where the ladies were able to share experiences and give each other advice. ending of the seminar on “Family Strengthening”, the ladies made a bulletin board with thank you messages to their husbands.

of course, the wives’ workshop would not be complete without numerous picture-taking sessions and lots of laughter. below is a picture of the whole group on the last day!

Jannicke Steenmaritime personnel coordinator

from left: Ms. reyes, Ms. Trilles, Ms. Oliva, Ms. leong, Ms. Damayo

Wives focus on family strengtheningDuring the last Officers’ Conference, 60 wives enjoyed a two and a half days seminar focusing on “Family Strengthening”.

Officers’ conference October 2011:

Social dinner:

from left: Ch.eng lacson, Capt. leong and his wife, Cheng reyeg, Capt. Baga-an, fleet Manager Stein andersen, insurance & Claims Manager Byoungil Kang, Superintendent Trainee anders Moseid, fleet Manager Terje Monslaup, Ch.eng Damayo and his wife.

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a radio conversation between a uS naval ship and Canadian authorities off the coast of newfoundland:

• uS Ship: please divert your course 0.5 degrees to the south to avoid collision

• CnD reply: recommend you divert yOur course 15 degrees to the south to avoid collision

• uS Ship: This is the captain of a uS navy Ship. i say again, divert yOur course

• CnD reply: no. i say again, you divert yOur course• uS Ship: THiS iS THe airCrafT Carrier uSS

COral Sea. We are a large WarSHip Of THe uS navy. DiverT yOur COurSe nOW!!

• CnD reply: This is a lighthouse. your call.

The lighthouse joke

Happy teamCaptain Burgos sent us this picture of his crew onboard Star grip. Shall we just say: “proud, Commited, Solid and Open - all in one shot” :-)

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1. Teams red Snappers and Blue Marlins ready for rumble games

2. Dinner at sea onboard Star Kvarven3. Ch.Cook a.anastacio making pizza

Life onboard Star Kvarven

1

2 3

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in September the accounting department in bergen arranged a meeting with participants from the accounting departments in all the offices (except rio) of Grieg Star Shipping, and from the iT department in bergen.

as the last meeting took place five years ago, a lot of changes have appeared during these years. From 2009 Grieg Star Shipping is a fully owned company in Grieg Shipping Group. new people have started in Vancouver, Shanghai and bergen and this always brings up the need to meet and discuss the way we are working.

The main purpose of the meeting was to discuss common procedures, controls and reporting. The company has also started the evaluation of a new and common accounting system with the other companies in the Group, and this was one of the other main reasons to bring the accounting and iT people together.

We had a visit from the company’s new bank, dnb, which presented their cash management solution. The change from nordea to dnb will take place 1st January 2012. in previous years dnb was also the vendor of cash management services to Grieg Star Shipping aS. in addition we had a visit from the iT vendor of dynamics who presented the accounting system, which is already in use by other companies in the Group. during the week we also looked into other systems as ocS (salary and travel) and eye-share (scanning).

reporting of accounting figures and results are important, and has become even more important being a part of a larger group. We have prepared a common template for monthly and quarterly reporting and budgeting, which shall secure that the same items are reported in the same way independent of which company that prepare the reporting. because of the way we are organized with offices around the world, an internal control checklist has

been prepared as a tool to contribute to common and reliable procedures.

it was a hard-working, but useful week and of course it was very nice to meet everyone.

accounting and iT people have fun together, i can assure you!

Atle NordbyVp accounting and control

Accounting and IT meet in Bergen

Grieg Shipping Group has started the evaluation of a new and common accounting system with the rest of the Grieg Group. An excellent reason for bringing accounting and IT people together.

front row from left: Sundeep Thakur, eillian Qian, Judy Wu, Hu K. KimSecond row from left: Kari T. Tepstad, akiyoshi itoh, John O’Keeffe, Mark gaynor, anders Holmquist, lucia filippi

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This year the human resources department made a twist to the meeting by inviting to a joint workshop with the technical department at Grieg Shipping. The focus of the workshop was teams and the leadership role, and combined different learning methods with some theory.

We got to refresh our navigational skills at the simulator at the naval academy and there were lots of interesting challenges thrown at us, but solved in an impressive manner being considered as “retired sailors”. it was a fruitful seminar and made us reflect in many ways that might not have been considered before.

For the operation meeting itself the main purpose is to discuss operational related matters and challenges we are faced with for different commodities around the world. putting all efforts into having high production versus keeping the cost down.

Some chosen topics were presented to start discussions around the table on how things are done in different parts of the world. We had changed the set up of the meeting to being a more discussion-based forum compared to what we have done in the past.

We shared experiences and had lots of good discussions, both on operational matters and also equipment that is used and for possible future investments.

it was a good meeting and also nice to meet both old and new colleagues from around the world.

Arnt Davangercargo handling manager

Cargo operation meeting in Bergen

It has been 18 months since we had our last cargo operation meeting and it was time to meet again in November.

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When we reach a certain age and retire from positions with many years of dedicated work, we enter a new period in life, which often contains a feeling of relief and, for some, a feeling of emptiness.

all the elements of our work: the challenge, the satisfaction (and sometimes frustration), the joy, the constant flow of information and the daily contact and cooperation with our colleagues are suddenly not there any more. even if most of us find new activities and interests when we retire, we all appreciate highly Grieg Group’s policy and initiative of continued social contact as well as frequent information about the Groups status and activities. it gives us the feeling that we still belong.

in march and october we meet representatives from the management who give us news and tell us about activities in

the various companies in Grieg Group. These meetings are followed by a very pleasant lunch in Grieg club with time for conversation with former colleagues. Last time 34 seniors participated.

in June a bus trip to places of interest in the district is arranged for us and our companions. This year 48 persons visited beautiful austevoll, a group of islands south of bergen with an impressive activity in fishing and industry. Lunch was served at the famous trading centre and museum at bekkjarvik. hallvard møgster, who was one of the first investors in billabong and a member of the stockholders’ committee, guided us. a very interesting and successful excursion.

in december a wonderful christmas dinner with music and entertainment is arranged for our companions and us.

Thanks and good wishes from a happy group of former employees of Grieg Group including ex Star Shipping.

Jacob Irgens

Retirement - what now?75 seniors from Grieg Group and ex Star Shipping are well taken care of.

Fine dining

from left: Berit and reidar

Haugland, Margun og Svein

ramm

from left: Olav ulveseter,

arne og anne Marie aamodt,

eldbjørg vågen.

Bekkjarvik harbour

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Christmas in Bergen500 gr. butter3 dl golden syrup6 dl sugar3 dl whipping creamappr.20 dl white flour1 ½ ts pulverized clove1 ½ ts pulverized pepper1 ½ ts pulverized ginger5 ts cinnamon3 ts baking powderWhite flour for the baking/rolling

mix syrup, sugar and butter in a kettle. heat it up until the sugar is melted.pull the kettle off the oven for cooling down. pour into the whipping cream and mix it. add flour and the various spice and mix it well. The dough must be quite compact so it want overflow during baking. cover the dough and keep it cool until next day. Stir the dough well and roll it out. make small figures of the dough with the figures sent you from the office. bake the ginger biscuits on 180 degr.c approx. 8-10 minutes. cool them down on a grid.

Ginger biscuits

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it was with deep sadness we received the message that captain cesar azanza passed away 3rd november.

captain azanza joined Grieg back in 1986 as chief officer onboard “Grieg Fighter”. he was promoted to captain in 1988. in the years to follow he served as captain onboard most of our vessels. due to his performance and knowledge he soon established himself as our most senior captain.

in 2005 cesar was asked to be our Site manager during building of “Star Java” at mitsui engineering & Shipbuilding in Japan. This job was taken well care of as always. When we ordered our K-class vessels at hmd in Korea, cesar was involved at an early stage in the design development and discussions with yards. he headed our Site Team also for these vessels until he, 15th February 2010, left for manila and a new position as Vice president with our newly established crew manning office, Grieg philippines Ltd.

i would like to quote per Grieg sr. who also knew captain azanza well:- i had the great joy of sailing with azanza for 8 weeks from Japan to europe with “Star herdla” on her maiden voyage in 1994. he was an exceptional person. he had all the abilities to be the perfect captain. Soft spoken but clear and decisive. Very humoristic and inclusive. as a seaman full of knowledge and with the quiet authority necessary in tense situations. he was a joy to be around, and it is very, very sad that he is gone. i shall long cherish his memory.

all who knew cesar will agree with these words. he will be deeply missed!

Henry Svendsenceo Grieg Shipping

In memory of Cesar Azanza

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anders røssevoldjoined grieg Shipping group, Bergen, as Claims adjuster in July.

CHriSTOffer MarTinSenjoined grieg Star Shipping, Bergen, as Maritime Trainee in august.

raSMuS HOlM lunDejoined grieg Shipping, Bergen, as Marine Superintendent in august.

cecIlIe dyngelandjoined grieg Star Shipping, Bergen, as Marine accountant in november.

new employees

for further information we refer to announcements on Crewnet

alex xujoined grieg Star Shipping, Shanghai, as port Captain in September.

Suelen Oliveirajoined grieg Star Shipping, rio de Janeiro, as administration/financial assistant in november.

anniversaries

KJerstIn elIn nerÅsjoined Billabong Ship Management July 1, 1981

Magne HJerTHOlMjoined Billabong Ship Management July 1, 1981

TerJe HJ. MiCHelSenjoined Star Shipping august 17, 1981

30 years

SigriD riSajoined Star Shipping november 10, 1986

25 years

40 yearsKeiKO HiraiJoined Star Shipping, vancouver, July 7, 1971

www.grieg.comwww.griegstar.com

MILJØMERKET

241 Trykksak 600

NORWAYberGen:

Grieg Shipping Group aSGrieg-Gaarden, c. Sundtsgate 17/19

p.o. box 781 Sentrumn-5807 bergen

Telephone: +47 55 57 69 50

Grieg Shipping aSGrieg-Gaarden, c. Sundtsgate 17/19


Telephone: +47 55 57 69 50

Grieg Star Shipping aSGrieg-Gaarden, c. Sundtsgate 17/19


Telephone: +47 55 23 96 00

oSLoGrieg Shipping Group aS

p.o. box 513 SkøyenKarenslyst allé 2

n-0214 osloTelephone: +47 23 27 41 00

SWEDENGoThenburG:

Grieg Star Shipping abSkeppsbroplatsen 1

Se-41118 GothenburgTelephone:+46 31 3395500

THE NETHERLANDSroTTerdam:

Grieg Star Shipping cargo handling dept. rotterdam

Streefwaalseweg 15, port no. 2810, 3195-Kn rotterdam-pernis, The

netherlandsTelephone: +31 (0) 10438051

Grieg Star Shipping Technical department, rotterdam

edisonweg 16nL-3208 Kb Spijkenisse

Telephone: +31 181 610998

ITALYLiVorno

Grieg Star Shipping S.r.l.u Via Salvatore orlando, 3a-2nd Floor

57123 LivornoTelephone: + 39 0586 851936

US/CAN.E.COAST & US GULFaTLanTa, Ga:

Grieg Star Shipping (uSa) inc.600 Galleria parkway – Suite 925

atlanta, Ga 30339Telephone: +1 770 226 5900

US WEST COASTLonG beach, ca:

Grieg Star Shipping (uSa) inc.1330 n. avalon blvd.

Wilmington, ca 90744Telephone: +1 310 233 2720

CANADAVancouVer, bc:

Grieg Star Shipping (canada) Ltd.9th floor

1111 West hastings StreetVancouver, bc V6e 2J3

Telephone: +1 604 661 2000

SQuamiSh, bc:Squamish Terminals Ltd.

p.o.box 1520Squamish, bc V8b 0b1

Telephone: +1 604 892 3511

BRAZILrio de Janeiro

Grieg Star Shipping comercio maritimo Ltda.

av. Gildásio amodo no. 55rooms 2006/2007

edificio centro da barrario de Janeiro

Tel: + 55 21 2493 7705

FAR EASTToKYo:

Grieg Star Shipping aS22F Toranomon Kotohira Tower

2-8, Toranomon 1-chomeminato-ku, Tokyo 105-0001, Japan

Telephone: +81 3 5501 1761

SeouL:Grieg Star Shipping aS

18th floor Kwanghwamun bldg64-8, Taepyungro 1ga

chung.ku, Seoul, Korea 100-101Telephone: +82 2 399 2880

maniLa:Grieg philippines inc.

G/F Legaspi Towers 200,107 paseo de roxas Street

1229 makati citiphilippines

Telephone: +63 917 511 9416

ShanGhai:Grieg Star Shipping aS

unit 2904-2917, office TowerShanghai central plaza

381 huai hai zhong roadShanghai 200020

peoples republic of chinaTelephone: +86 21 6171 1100

Crew Winter 2011

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Transcript of Crew Winter 2011