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APRIL 2012 www.tankeroperator.comTANKEROperatorFront cover April 12_Front cover.qxd 29/03/2012 14:46 Page 1 w l ae ho r au s in ku O o t e l b a l i a vva a s yys a wwap x eex l a c o l d n a p ld l r o wwo e h t d n u o3 n I . d e h c t a m n ue r d n a e g d e l w ov o r p o t y t i l i b a r u . s rrs e b m e m os i e s i t rr e pt o p s - e h t - n os tts r o p 0 5 3e s n o p s eel a c o l e d i v IFC-TO April 2012_Front cover.qxd 29/03/2012 14:48 Page 1April 2012 TANKEROperator 01ContentsMarketsMoving sidewaysProfileThomes Steffen TungeMiddle East Report Fujairah the new hub Shiprepair giants square up Owners hit by VLCC carnageClassification Societies IACS addresses CSR harmonisation Russian Register progress DNVs Fuel saving guidelines GLs Greek meeting LRs ECA calculatorPiracy Piracy down -ransoms up West African problems escalateTechnology37 Asphalt/products tankerFront cover Leading Bahrain-based shiprepairer ASRY has started the year well by handling three VLCCs. The company said that thus far,2012 had mirrored 2011 in that the yard has seen the return of the large tanker. Last year ASRY handled 13 VLCCs out of atotal of 52 tankers, which visited the yard in the 12-month period. 371138 Ballast Water Treatment Systems commissioned 41 Bilge Water Treatment Alfa Laval claims breakthrough43 Bunker Operations FOBAS spells it out P&I viewpoint IBIAs convention48 Luboils One fits all not the answer50 Manning & Training Competency manager tool Germans sign ECDIS agreements DNV approves Kongsberg Admiralty to sponsor training55 Tank Services IPTA looks at IBC Code606082817TO April 2012 Contents p1_p1.qxd 29/03/2012 14:49 Page 1TANKEROperator

April 2012 2COMMENTHave we learnt anything from theTitanic?TANKEROperatorVol 11 No 5Tanker Operator Magazine Ltd2nd Floor, 8 Baltic Street EastLondon EC1Y 0UP, UK www.tankeroperator.comPUBLISHER/EVENTS/SUBSCRIPTIONSKarl JefferyTel: +44 (0)20 8150 [email protected] CochranTel: +44 (0)20 8150 [email protected] SALESMelissa SkinnerOnly Media LtdTel: +44 (0)20 8950 [email protected] year (8 issues)195 / US$320 / 2202 years (16 issues)300 / US$493 / 336Subscription hotline:Tel: +44 (0)20 7017 3405Fax: +44 (0)20 7251 9179Email: [email protected] CheungTel: +44 (0)20 8150 [email protected] by PRINTIMUSUl.Bernardynska 141-902 BytomPoland I was wondering how on earth I could get areference to the 100th anniversary of the sinking ofthe Titanic in Tanker Operator and then thoseinsurance boys and girls at Allianz answered myprayers.Allianz (AGCS) has come up with a report highlighting new shippingrisks and although it has greatly improved since 1912, key challengesstill remain, the insurer said. It should be remembered that the sinking of the Titanic and thesubsequent enquiry spawned SOLAS - as major shipping disasters tendto spur the regulators into action Exxon Valdez, Erika and Prestigebeing prime illustrations of this. In addition, the 1987 Herald of FreeEnterprise disaster helped to produce the ISM Code. Down the years, apart from the two World Wars and the Iran/IraqWar, shipping losses have dramatically reduced, despite the worldsfleet trebling in numbers. However, Allianz said that the increase invessel sizes, not particularly applicable to tankers here, the humanerror factor and Arctic navigation were the next hurdles to beovercome. Since 1912, the worlds commercial shipping fleet has trebled to over100,000 vessels (actual figures may vary, according to the criteria), yetoverall shipping loss rates have declined from one ship per 100 per yearin 1912 to one ship per 670 per year in 2009.While factors such as new technologies and regulations havetremendously improved marine safety, new risks have emerged. AGCSs comprehensive report, Safety and Shipping 1912-2012:From Titanic to Costa Concordia, based on research from CardiffUniversitys Seafarers International Research Centre (SIRC), highlightsseveral key challenges for the industry including the growing trend tosuper size ships and cost pressures pushing shipowners to sourcecrews from emerging economies where standards of training andassessment can be inconsistent.Other significant safety risks include reduced crewing numbers,which may compromise margins of safety and encourage human errorrisks; increasing bureaucracy on board ships; the continued threat ofpiracy off Somalia and elsewhere; and the emergence of ice shippingand its associated navigational and environmental complications. Commenting on the findings of the report, Dr Sven Gerhard, AGCSsglobal product leader hull & marine liabilities, said: While the seas aresafer than ever today, the industry needs to address these new risksproactively. For example, ultra-large ships pose challenges for insurersdue to their sheer size and value, while others raise concerns onstructural integrity and failure. While scale alone does not make these ships riskier, the increasedsizes introduce specific risks that need to be addressed, such as salvageand recovery considerations and emergency handling, he warned.Although the days of the ULCC appear over, the largest moderncontainerships under construction are so big that there is space belowdeck for a basketball court, a full-sized American football stadium anda spectator-filled ice hockey arena. Ships of this size raise questions ofadequate loss coverage in the event of an incident and of potentialstructural limitations, said AGCS. Human error the weakest linkThe report also highlights the continued challenge of human error inmaritime operations a factor which remains critical despite 100 yearsof technological and regulatory improvements in safety. Over 75% of marine losses can be attributed to a wide range ofhuman error factors, including fatigue, inadequate risk managementand competitive pressures, as well as potential deficiencies in trainingand crewing levels.Dr Gerhard explained: As technological improvements reduce risk,so does the weakest link in the system the human factor becomemore important. This is where the industry should focus most closely,so that best practice risk management and a culture of safety becomessecond nature across the world fleet.While technologies such as Radar, or Global Positioning Systems(GPS) have driven improved safety, it has often been major accidentsthat have been the catalysts for key changes.Historically, high profile shipping disasters have led toimprovements in marine safety. And Costa Concordia is certain to beno different, whatever the result of the official investigations into thiscause will be, said Dr Gerhard. AGCS research boffins have come up with a list of key facts andfigures taking in the 100 years since an iceberg inadvertently changedmaritime history forever. Since 1910, world fleet tonnage has increased by a factor of 23 and has now approached one billion gross tonnes (2010 figures). World seaborne trade has trebled since 1970 to over 8.4 bill tonnes of cargo loaded per annum.TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 1TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 2COMMENTTANKEROperator

April 2012 4 Professional seafarer fatality rates have fallen in many countries: for example, in the UK, in 1919 it was estimated that there would be 358 fatal accidents for every 100,000 seafarer years spent at risk a rate which had fallen to 11 by the period 1996-2005. However, this fatality rate is still 12 times higher than in the general workforce. Accident black spots include South China,Indo-China, Indonesia and Philippines with17% of total losses in 2001-2011, followed by East Mediterranean and Black Sea (13%), and Japan, Korea and North China (12%). The seas around the UK also show relatively high loss concentrations (8%). Technical innovations over the last 100 years include improved construction techniques, echo-sounding, Radar, Very High Frequency (VHF) radios, Automatic Radar Plotting Aid (ARPAs), satellite communications, GPS positioning finding, and Electronic Chart Display and Information Systems (ECDIS all of which have supported marine safety.I have deliberately deleted reference topassenger vessels with apology to AGCS.However, the cost in both human andmonetary terms of a chemical tankerploughing into a 200,000 gt cruise vesseldoesnt bear thinking about, let alone what the final total of the Costa Concordia sinkingwill be. For all those who find theshipping language baffling withits range of acronyms made upfor virtually anything, help is athand.In an attempt to explain the complexity of theindustrys terminology in simple terms,Braemar, Incorporating the SalvageAssociation, surveying and technicalconsultancy arm, as the company likes to becalled, has published a second edition of itsGuide to Hull & Machinery.For anyone baffled by jargon, the shippingindustry isnt the best choice of workplace,Braemar acknowledged, a statement withwhich Tanker Operators Editor fully concurs. Although primarily aimed at the marineinsurance industry, whose claims people haveto wade through piles of incident reportspacked with jargon, the book will be agodsend to anybody just starting out in theindustry.It is essentially a reference book coveringsome of the common terminology used forships, their engines and related operations,which is often encountered in survey reports. The first version of the Guide to Hull &Machinery, released last year, was met withsuch enthusiasm by the marine insurancemarket that Braemar have now produced anew enhanced version, the company said. Marine survey reports frequently containnautical and engineering technology, whichcan often be unfamiliar. Braemar drew onmaterial from 24 authoritative sources toproduce more than 70 pages of diagrams andexplanations of terms relating to the keyfunctions of ships and clear illustrations ofship components, which often figure ininsurance claims.The Guide to Hull and Machinery has beenwelcomed by the industry. This is a uniquesource of reference, said John Hutley, vicepresident, P&C Claims, Swiss Re Services. It will not only give support to theestablished claims professionals but also, withits considerable depth of information, to thosewho are new to the business.This second edition of the guide has beenupdated in response to feedback from themarine insurance market and includesadditional data, such as explanations on grossand net register tonnages, subdivision and load line, deck mooring fittings and liftingappliances, while some useful guide formulasare included on selection of wires andsynthetic ropes. In the machinery section, data can be foundon gear boxes, fuel and lube oil systems,purifiers and transmission systems, while thesheer scale of marine engines in comparison to a human body can now be appreciated onthe section of typical propulsion engines. Dino Levantis, Braemars business directorfor the Mediterranean and Eastern Europeregion is the lead author of the publication.The intention has been to keep it simple, heexplained. Targeted at experienced marineprofessionals and newcomers alike, it is notintended as an unwieldy dictionary ofterminology but as a quick reference tool with easily understood illustrations that covers the essentials in a user friendly way.Much of the book taken up with technicalexplanations on the left hand page with theright hand page left blank for note taking. The guide is available in hard copy, or pdfformat and is free of charge to those workingin the marine claims and insurance industry, but will be a useful tool for othersectors of maritime life. Help somebody get me a dictionary!TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 3TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 4TANKEROperator

April 2012 06INDUSTRY MARKETSAre we on therebound?As the first quarter of this year is consigned to history, it is clear that the tumultuoussituation seen 2011 was not a one-off. Tensions between Iran and the Westare supporting rising oil prices andhave the potential to furtherdestabilise an already shakyeconomy. Meanwhile, developments in Syria,Yemen and Sudan are also limiting oilsupplies, reported McQuilling Services in theShort Term Outlook report. There have been some positive indicatorsout of the US, but other regional economiesremain under pressure. The debt crisis inEurope continues to cast a cloud over thecontinent and recently, the European Unions(EU) statistics office released data confirmingGDP contracted by 0.3% in Q4 2011. Compounding concerns, Chinas officialeconomic growth target of 7.5% for 2012indicates that even the dragon economy maynot be formidable enough to halt the slide.Against this background, the tanker markethas performed reasonably well and has evenslightly outperformed McQuillings Januaryforecast. Despite this development, the tankermarket will continue to be pressured byovercapacity and the currently high bunkerprices.Liftings out of the Arab Gulf have comeunder some pressure from a more narrowspread between Dated Brent and Dubai thathas made West African grades comparativelycheaper.During the January-for-February 60-daycycle, used by McQuilling to track fixtures,spot charters increased strongly inthe middle of February, breachingthe upper threshold of the five yearrange for the first time during thisperiod, indeed since the May-for-June cycle in 2008. This helped support rates, butafter gaining too much momentum,charterers pulled out of the marketand rates retreated. The February-for-March cycle has closelyfollowed the five-year average andthere has been much less activitybetween the middle and end of the fixingmonth. The reduced fixing activity in this cycle hasalso likely been influenced by the rising priceof crude, which has been strongly influencedby sanctions surrounding Iran. These sanctionshave basically eliminated owners ability toacquire shipping insurance for Iranian liftings,as importing nations look for alternativesupply sources.Suezmax fixtures were down sharply duringFebruary, but remained slightly above theprevious years levels. Fixtures from WestAfrica to the US Atlantic Coast wereunchanged at seven, but with SunocosPhiladelphia refinery due for closure in July,an upward shift is unlikely. Although supply security is a permanentissue in West Africa, a new crude stream fromthe Usan field off Nigerias coast is expectedto add 180,000 barrels per day into themarket by the end of 2012. In NorthAfrica, China recently inked a deal toimport 140,000 barrels per day ofcrude from Libya.Following last years civil war,Libyas oil production has steadilyrebounded and was reported at 1.4mill barrels per day in February. In the Middle East, after severalweather related delays, the first of foursingle point moorings (SPM) isreportedly ready to begin operations atIraqs southern port of Basrah. TheSPM has a capacity of 850,000 barrelsper day and is expected to initiallyincrease Basrahs export capacity by 400,000barrels per day once operational, according toPlatts.In the clean tanker market, with theexception of the LR2s, activity declined. Thedownturn was likely influenced by relativelyhigh levels of refinery maintenance. The mostnotable of these, McQuilling said was the290,000 barrels per day central distillationunit at Indias Jamnagar complex that wasoffline for three weeks for a plannedturnaround.However, reduced US refinery throughputon the East coast and tight pipeline capacitycombined with the looming start of the drivingseason should allow activity to rebound in thenear-term. MR2 fixtures recorded the steepest declinebut still remain above year ago levels. Thedrop in MR activity was influenced by theclosure of the St. Croix refinery in theCaribbean.The expectation of continued deliveriesfrom previous orderbooks continues to limitimprovement in market sentiment. To date,McQuilling anticipated that 17% of itsforecasted deliveries and exits would havetranspired.Market balancedAt the end of February, 27 tankers had beendelivered and 22 were sent to the breakers.This represented 12% of the consultancysyear-to-date expected deliveries and 30% ofthe forecasted exits. As a result, at this pointin the year (mid-March), market fundamentals Source - McQuilling Services.* See page 7. Source - Gibson Research.US products imports and exports*TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 5April 2012

TANKEROperator are more balanced than had initially been anticipated. The exit profile of Suezmaxes has been robust with seven deletionsversus a forecast of four. All of the tankers sent to the breakers havebeen between 22 and 24 years old, highlighting the pressure owners ofolder tonnage are under. With the exception of Panamaxes, delivery profiles have generallybeen below expectations. McQuilling expected a total of threePanamaxes to enter the trading fleet this year and to date two have beendelivered. The Nave Estella and SCF Progress were delivered to Naviosand Sovcomflot respectively from South Korean shipyards.Looking forward, McQuilling expected rates to move sideways in thecoming months, as economic concerns will reign in demand and vesselsupply will continue to remain ample. The start of the US drivingseason should provide some support for clean tanker rates in theAtlantic Basin but demand may be capped by rising pump prices.Despite high OPEC production levels as the producers group aims tolimit the impact of global supply concerns, crude and residual tankerdemand could be negatively impacted, if any other pressures occur.Resilient MRsPerhaps, one of the clearest examples of the recent major changes in thetanker sector was the shift in trading patterns in the Atlantic Basin MRmarket. The gasoline flow from Europe to the US has traditionally been thedominant route for MRs in the West. However, the economic turbulence coupled with high oil prices hastranslated into a reduction in US gasoline requirements in recent years,with total gasoline imports down by 0.35 mill barrels per day from peaklevels in 2007 to 0.81 mill barrels per day last year, reported GibsonResearch in a report. Imports have been even more sluggish over the past few months,averaging just 0.66 mill barrels per day since the beginning of 2012. However, these bearish developments have not been reflected in theAtlantic Basin MR market. In contrast, we have seen quite a few majorspikes in rates in recent months, Gibson said. TCE earnings for MRs trading UK/Continent - US Atlantic Coastrose to $23,000 per day at its highest peak on round voyage basis atdesign speed, while MRs in other regional markets in the West followeda similar pattern. This is in stark contrast to the East, where MRearnings have lately battled to remain above zero. In terms of fundamentals, one of the key reasons for the firmerproduct tanker market in the West is the ongoing strong growth in USproducts exports. First, distillate exports out of US, primarily to LatinAmerica and Europe, have been on a rapid upward trend since 2007 andsurpassed in terms of volume the US gasoline imports seen last year. This year, US distillate exports have seen further growth, withaverage daily shipments out of the country rising above 1 mill barrelsper day. US gasoline exports, almost solely to Latin America, have alsobeen rising fast, quadrupling since 2007. As a result, gasoline trade out of US has reached 0.61 mill barrels perday this year, not far behind total gasoline imports over the same period,Gibson said. INDUSTRY MARKETSCorrection- Drewry Maritime ResearchOn Page 19 of the March issue of Tanker Operator, the sources quoted forthe graphics were inadvertently transposed.The top right graphic source should have read.Gibson Research, while thebottom left graphic should have been sourced to Drewry Maritime Research.We apologise for any embarrassment caused. TOTO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 6INDUSTRY - PROFILE - SHIP MANAGEMENTTANKEROperator

April 2012 08Steffen Tunge has taken on the roleas a director and new COO forThomes tanker fleet and TankerOperator asked him about hishopes and aspirations for the third partyshipmanagement industry and the tankersector in particular. When asked, what were his priorities in hisnew position going forward, Tunge said thatquality and experienced tanker officers,particularly senior officers, are still in shortsupply and this is not likely to get much betteron the short term. Securing and retainingofficers will therefore continue to be apriority. We will also with our new organisationalstructure focus very much on dedicatedtankers procedures, which will improve ourquality going forward. We have noticed thatthe requirements to the tanker industry areever increasing and we intend to stay on topas a tanker manager, he said.He also said that Thome intended tocontinue to grow the tanker side of itsportfolio as there is still a strong demand forquality shipmanagement and the company willcontinue to grow with existing clients, as wellTanker expert headsup Thomes new wet divisionSingapore-based third party shipmanagement concern Thome Ship Management hassplit its management portfolio into wet and dry divisions and appointed a new COO to run the wet operation. as bring in new ones if and when there iscapacity to do so. We expect that we will grow but only in acontrolled way with due respect to ourexisting principals and to the requirements ofthe charterers, he said. He estimated that thecompany could grow by another 10 15tankers, but this would be subject to timingand conditions, .as we do not want tojeopardise our quality standards, he stressed.Talking of possible growth due to distressedtonnage in todays economic climate, he saidthat most probably there is a potential, but sofar Thome has seen more talk and lessaction. We have noticed it is a complexsystem with many stakeholders, so we do notexpect a rapid change in the way the industryworks, he said.He admitted that the current demand forincreased safety is a never ending saga. Thedemands for reduced risks and improvedsafety will continue and every time there is amajor incident, it leads to new SOLAS orMARPOL regulation, or industry demands. This has been the nature of our industryfor several decades and is not likely tochange. We have identified a strong vettingperformance as our ticket to operate tankers,so we will maintain a very strong focus onkeeping, or improving our results. The samegoes for TMSA. A good result is needed tomeet the requirements of the commercialpeople in our industry, he said.All tanker typesThome currently manages all ranges of oiltankers, as well as chemical tankers, bitumencarriers, plus LPG and LNG carriers. Tungeexplained that the company was particularlystrong in the chemical tanker sector, because alarge number are under management.However, he stressed that all other tankertypes are also under management and therewas no particular preference. Turning to InterManagers KPI initiative,Tunge said; We like the InterManager KPIs,but also believe we still have a way to go tomake the system operational. The question of third party shipmanagementremuneration is never far away when talkingwith the third party shipmanagementconcerns, especially today with increasingcosts and increasing pressure to reduceoperating costs. l86 $0$1l88ll l8l86fKoperweg 3 2401 LH Alphen aan den Rijn The Netherlands Phone: +31 (0j 172 41 80 08 Fax: +31 (0j 172 24 08 23lnternet: www.cryonormprojects.com E-mail: [email protected]

LNG Fuel Tanks LNG automatic bunker connections Re-gasificationsystem (coldbox) Controlsystem l86 $0 0$ l 8ll 88 886f l l 88 111 1 3 g e w r e p o K t e N e h T n j i R n e d n a a n e h p l A H L 1 0 4 2 3c e j o r p m r o n o y r c . w w w : t e n r e t n l h P s d n a l r e h tm - E m o c . s t c ao Gc rm en o C s k n a TTa l e u F s n o i t c e n n o c ) x o b d l o c ( m m e t s y s l o r t nTO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 7PROFILE SHIP MANAGEMENTApril 2012

TANKEROperator Tunge countered; This is a very competitive business and withshipping for the most part in a slump, there is not much appetite for anyincreased costs, including management fees. Improved productivity iswhat we have to strive for, but there is a limit of what can be achieved. We do however believe that the industry has to accept an increase ina not too distant future, as requirements continue to increase andcharterers expect a flawless operation, which unfortunately cannot bedone without cost. This of course also ties back to the charter hiresoffered and we believe any quality charterer will have to accept acertain level of operational expenditure, otherwise a quality operationcannot be delivered, he warned.Some shipmanagers, especially the larger companies, have alwayssaid the economies of scale kick in once a critical mass of tonnage isreached. There is obviously an advantage of scale and bigger is oftenbetter. However, there is a limit how big it can go before other issuesbecome too complicated and may result in reduced performance. We are well aware of that and will be very attentive to our qualitylevel. We do believe that a critical mass is more needed than ever,mainly due to the depressed market and the need for a qualityoperation, Tunge said.Satcoms contractEarlier this year, Thome signed a contract with Inmarsat and itsdistribution partner AND group to provide Inmarsat FleetBroadbandand ANDs IPSignature2 communications software to its managedvessels.Under the new framework agreement, AND group became theexclusive communications provider to Thome for InmarsatFleetBroadband and will deliver the FleetBroadband service through acombination of pricing packages, including the Very Large Allowance(VLA) package. Tunge explained that the recent signing of the contract to offer theinstallation of FleetBroadband on board Thomes principals vesselswas for varying reasons. We have made a competitive package we canoffer to our principals, as we believe the future will belong tobroadband on board ships - both for professional and operationalreasons - but also to improve the communication our seafarers can havewith their families and friends. So the agreement serves severalpurposes, he said.Finally, he thought that going forward there will be consolidationamong owners and managers. We believe there will be somemovements going forward, both from the owner side and perhaps alsoamong managers. We would expect that smaller tanker managers willfind it difficult to cope with the requirements and will perhaps also bein trouble in obtaining acceptance from certain charterers, which thenwill drive a certain consolidation in the manager industry, heconcluded.At the time of his appointment, Thome said that Tunges arrivalbrought on board a vast amount of experience from the tanker industryand he will add valuable hands-on experience from his many years inleadership positions at Stolt Nielsen, B+H Equimar and MSI inSingapore.Tunge is an active member of Intertanko and sits on IntertankosChemical Committee and is a Council member representing Singapore.As COO, his role has been created to head the tanker fleet and itreinforces Thomes demand to uphold and deliver the highest level ofservice to its valued stakeholders, the company said. Senior managementAt the same time, three other senior management positions were filledinternally. These included senior manager Yatin Gangla, who is theTO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 8TANKEROperator

April 2012 10INDUSTRY PROFILE - SHIPMANAGEMENTnewly appointed COO in Thomes bulkdivision. In addition, Sandy Kumaran has beenappointed senior manager to head up thenewly created fleet services department. Thisdepartment was established to assist andsupport the Thome fleet in a range of servicesin response to the company recognising that amore stringent level of quality check andsupport system is required in order to supportthe operation successfully. Finally, Atul Vatsa has been promoted tosenior manager in tanker operations and willbe heading the marine standard and vettingfunction. At the time of the appointments, Olav EekThorstensen, group chairman & CEO, said:The appointment of Steffen, Yatin, Sandy andAtul demonstrates our commitment toservicing our client base in a consistent andprofessional manner.Steffen Tunge joins Thome after aremarkable career in some of the worldsleading shipping companies. I am delighted heis joining Thome as his experience will benefitour company greatly.I am particularly pleased we have beenable to promote Yatin, Sandy and Atul fromwithin. They are three senior managers whohave been with us for some time, theyunderstand our working culture, what is meansto serve Thome principals and the standardsthey must maintain. I am certain they willexcel in their new posts, he said.Managing director, Carsten Brix Ostenfeldt,said: These four appointments show Thomeis moving ahead with the times and able toattract the very best experienced and talentedmanagers available. I am looking forward toworking with these four colleagues and Ibelieve that together we can take Thome to thenext level in terms of leadership in theinternational shipmanagement field.Not stopping there, Thomes offshoreservices arm Thome Offshore Management(TOM) and Thome Oil & Gas (TOG) hasappointed John Sydness, as managing director,effective immediately.Buoyed by the rising offshore markets, thecompany said that its offshore and energydivision is expanding its managementcapability to better support its activities andensure its service standards are maintained and improved.Sydness took over from Claes EekThorstensen, who is moving into a group rolein TSMI the holding company of the ThomeGroup of companies. In his new role,Thorstensen will be supporting thedevelopment of all the companies within thegroup, including commercial and marketing activities.Steffen Tunge heads up Thomes tankerfleet.TOTO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 9April 2012 TANKEROperator 11INDUSTRY - MIDDLE EAST REPORTCould tensions stiflegrowth? With US and EU sanctions coming in against trading with Iran in a couple of months, alleyes have turned to the Straits of Hormuz, the strategic waterway that commands the entrance to the Persian Gulf. There has already been a certainamount of sabre rattling in the areawith the Iranian Navy exercisingin the Straits and threatening toclose the vital shipping lanes, while units ofthe US fleet resides in Bahrain and elsewherein the region. If the Iranian oil ceases to flow, SaudiArabia and Iraq could plug the gap andindeed, both have ramped up their oilproduction recently with Iraq opening anoffshore export facility. Iraq could also look atthe pipeline option, thus bypassing the Gulfaltogether. Qatar is awash with gas leading to hugeexport figures going through Ras Laffan. Mostof the gas is shipped in large LNGCs, whichhave seen charter rates soar recently on theback of huge demand. In addition, the petrochemicals industry isexpected to grow significantly in the area withnew refinery capacity coming on streamcoupled with chemical and products storagefacilities springing up. Down the years, the ports and terminalsstraddling the Gulf have spawned a massiveservice industry to cater for the tankers andgas carriers, plus other types of vessels, nowregularly calling in the region. We have seen the growth of ports, such asSalalah in Oman, Jebel Ali, Khor Fakkan andFujairah in the UAE. There are plans toexpand others, such as those in Bahrain, Qatarand Iraq. Taking Fujairah as an example, the watersoff the former small village have been used asan anchorage for many years, long before theinfrastructure ashore was built. It isstrategically located just outside Hormuz andapart from the anchorage, which still playshome to around 100 vessels at any one time, ithas thriving bunker facilities, a large containerterminal, a drybulk loading terminal and anever growing number of product and chemicalstorage facilities. Bunker hubThe port is today the leading bunkering hubafter Singapore and Rotterdam and plans tomore than double its oil storage capacity to 7mill cu m in the next two to three years. Bythe middle of this year, Fujairah will havebeen boosted still further with the opening ofa crude oil export pipeline connectingHabshan in Abu Dhabi to Fujairah. The commissioning of the $3.3 bill, 370 kmHabshan-Fujairah pipeline is due to take placein April, or May and it will be ready totransport oil a couple of months after this.Once in service, the pipeline will handle up to1.5 mill barrels per day, although according tolocal reports, its capacity could increase to 1.8mill barrels per day at a later stage. This will give Abu Dhabi direct access tothe Indian Ocean cutting out transiting theStraits and avoiding loading tankers at theUAEs oil terminals. The new pipeline is alsoexpected to lower shipping costs for theUAEs oil exports, as a premium is charged, ifthe area is deemed a War Risk by insurers. The conceptual design of the pipeline wascompleted in 2006 and the constructionrelated contracts were awarded in 2007 withthe actual building starting on 19th March,2008. Again according to local reports, during thefirst year of operation, the pipeline will enablethe Abu Dhabi Company for Onshore OilOperations (ADCO) to export roughly half itstotal production. The pipeline is owned by theInternational Petroleum Investment Company(IPIC), an investment arm of the Abu DhabiGovernment. The Murban blend crude will be carriedthrough a single 48-inch diameter pipe. Theproject comprises the pipeline, main oilterminal at Fujairah, offshore loading facilitiesand the ancillary services needed. Under the plan, a strategic crude reservoirwill be set up in Fujairah. The pipeline willalso serve a planned $3.3 bill, 200,000 barrelsper day refinery to be built in Fujairah byIPIC, local sources said. Tank farms have sprung up throughout thearea.Fujairah is now a major oil storage port.TTTTTTTTTTTTTTTO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 1A.t Fujairah, there are already several oilberths. For example, three were commissionedin January 2006 (Terminal No 1) able tohandle up to 115,000 dwt tankers at 15 mdraft. Terminal No 2 was opened in June 2010and has four berths for vessels of up to180,000 dwt at 18 m draft. According to the ports website, another1,000 m of berths are being built dredgeddown to 20 m and a master plan is in place foranother 11 berths in the future. Storage facilitiesThere are several independent storageconcerns in Fujairah, including VopakHorizon, which in 2010 decided to expand itsstorage area capacity for products by 606,000cu m. The company said at the time, that thisexpansion project was on the back of thegrowing demand and development of arefining centre in the Middle East region. Asa result, Fujairah was developing from aregional hub into a global logistics hub. Thisin turn has led to an increase in internationaltrade flows that fostered a growing need for make-bulk and breakbulk services and blending. After completion of the expansion project inthe first quarter of 2012, the total storagecapacity will be more than 2.1 mill cu m, thecompany said. The expansion consists of 20new tanks with sizes ranging from 20,000 cum to 40,000 cu m for the storage of fuel oiland clean petroleum products. This year, a port spokesman said thatFujairah planned to raise its overall fuelstorage capacity by about two thirds, as tankoperators expand.The port will raise tank capacity to 10 millcu m by 2014 from about 6 mill cu m today,general manager Mousa Murad said in aMarch 12 interview with Bloomberg. He alsosaid that the Emirate may also add powerfacilities and a natural gas import plant at thesite.Fujairah is seeking to compete withSingapore and Rotterdam as a hub for bunkerfuel. Traders in Fujairah supply about 24 milltonnes of fuel a year, Murad said, reportedBloomberg.Both the Vitol Group and Vopak lease fuelstorage capacity in Fujairah. In addition, StateOil Co of Azerbaijan (SOCAR) is building aterminal that should receive its first oil-product shipment by the time that TankerOperator goes to press.Murad said that his forecast for growthassumes the completion of all tank terminalprojects planned in the Emirate. That includesthe potential addition of tanks on reclaimedland at the Vitol and Vopak sites.The SOCAR facility has a storage capacityof 114,000 cu m, or about 640,000 barrels, ofoil. The 20 tanks will be able to store fuel oil,gasoline, naphtha, middle distillate productsand blending components. A plan to furtherboost its capacity to 350,000 cu m is also onthe drawing board, according to reports fromthe area. Meanwhile, it was reported earlier this yearthat UAE-based trader Gulf Petrochem hadagreed to sell a 12% stake in its planned oilstorage terminal to the government ofFujairah, according to Reuters. GulfPetrochem has been building a $136.4 mill,412,000 cu m oil storage terminal in Fujairah..Although outside the Straits of Hormuz,Fujairah Anchorage could become a sittingduck for pirates. At as recent conference inLondon, it was said local coastguard patrols ofthe area were at best intermittent. There hadalready been a reported attack only 65 milesaway, or so. Most vessels anchor with theiraccommodation ladders down ready to receivethe various supply boats operating out ofFujairah. In addition, the anchored vessels areusually floodlit as supplies and repairs arecarried out 24/7.TANKEROperator

April 2012 12TOINDUSTRY - MIDDLE EAST REPORTTO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 2TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 3INDUSTRY - MIDDLE EAST GULFShiprepair sector hasits ups and downs The Middle East Gulf area is home to four major shipyard complexes and severalsmaller ones of varying capacities. The four largest yards are ASRY,Drydocks World-Dubai, Nakilat-Keppel Offshore & Marine (N-KOM) at Ras Laffan, Qatar andthe newest -Oman Drydock Company, locatedat Duqm, Oman. They have all experienced mixed fortunes,but for ASRY, the return of VLCCs has giventhe yard a welcome boost. As for ASRY, the first quarter of 2012mirrors the year 2011 for the Kingdom ofBahrains Arab Shipbuilding & Repair Cowith the return of the large tanker market, acompany spokesman explained.. In the first three months of 2012 the PersianGulf-based repairer drydocked three vessels inexcess of 300,000 dwt for repairs, all ownedby the National Shipping Corp of SaudiArabia (NSCSA) and managed by DubaisMideast Shipmanagement the 302,977 dwtMarjan, the 317,788 dwt Wafrah and the303,138 dwt Safwah.Last year turned out to be an acceptable 12months for ASRY. Following the false dawnof an expected market upturn in 2010, theyear started slowly and then picked-up withthe Bahrain yard repairing a total of 200vessels to the end of 2011. An encouraging trend was the large numberof tanker repairs undertaken during 2011,especially on VLCCs and LPG carriers. Thesevessels came from the fleets of Iraq OilTanker Co, Kuwait Oil Tanker Co (KOTC);NSCSA (Mideast Shipmanagement); VelaInternational Marine, Red Sea MarineServices, Springfield Shipping, Greece, SunEnterprises, Greece; Pratibha Shipping, India;MARCAS-V Ships, Monaco; NordicMaritime Services, Norway; OdfjellManagement, Norway; BW FleetManagement, Norway; Pakistan NationalShipping Co; Selandia Shipmanagement,Singapore and Thome Ship Management,Singapore; The total number of tankers repaired atASRY last year was 52 including 13VLCCs, seven large LPG carriers and 16chemical tankers. Noteworthy, according tothe company, was the return of the largetanker market, especially from Middle Eastowners.During 2011, ASRY repaired some 13tankers of over 300,000 dwt, of which 10came from the Arab market and three from theinternational market. NSCSA/MideastShipmanagement led the way with fourVLCCs: the 303,115 dwt Harad, and the three300,361 dwt sisterships Ramlah, Ghawar andSafaniyah. KOTC drydocked three large tankers the317,250 dwt Kazimah III, 310,543 dwt AlSalheia and the 310,513 dwt Al Shegaya, thelatter being one of the largest repairs in termsof value during 2011. Meanwhile Saudi Arabias VelaInternational Marine also docked threeVLCCs - the 316,808 dwt Pisces Star,316,476 dwt Aries Star and the 301,824 dwtAlphard Star. Finally, the three VLCCs from theinternational market all came from Greekowners. Two vessels were stemmed bySpringfield Shipping - the 303,184 dwtOlympic Loyalty and the 302,789 dwt OlympicLegacy, while Sun Enterprises docked the301,824 dwt Chios.In December of last year, ASRY completedits $188 mill expansion programme with theopening of a 1.38 km repair quay (see TankerOperator, January/February 2012, page 10). N-KOMFurther north, last year, the giant N-KOMshipyard received the first Qatargas-charteredLNGC Al Wakrah to drydock at the ErhamaBin Jaber Al Jalahma Shipyard, Qatars new,offshore and marine hub at Ras Laffan. The 1998-built 135,300 cu m Al Wakrah,which is owned by a Japanese consortium ledby Mitsui OSK Lines and managed by MOLLNG Transport underwent generalmaintenance work, such as main andgenerator turbine inspections, cargo pumpoverhauling, main switchboard and highvoltage cargo switchboard maintenance,electric motor overhauling, main boilercleaning, and hull painting at the yard. The new yard was officially inaugurated on23rd November 2010. Previously, there wasonly a limited range of offshore and marineservices in Qatar. With the build up ofprimarily gas carriers calling at Ras Laffan,vessels will no longer have to wait fordrydocks to become available in Singapore,the UAE, South Korea or China for generalmaintenance work, the company said.Nakilats fleet of LNG carriers is expectedto take up about 25% of the yards repair andmaintenance capacity at any one time, leaving75% free for other vessels on a commercialbasis. Highlighting the yards potential, thecompany said that by 2020, some 4,000 shipsare expected to call at Ras Laffan port everyyear. Dubai complexFurther south towards the entrance of the GulfNSCSAs VLCC Wafrah seen undocking at ASRY.TANKEROperator

April 2012 14TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 4INDUSTRY - MIDDLE EAST GULFlies Drydocks World-Dubai. This huge facilityseemed to have been badly hit by theeconomic events in the UAE and Dubai inparticular. The repair companys parent DrydocksWorld (DDW) has been in discussions with itsmain group of lenders to restructure its debtobligations under its $2.2 bill syndicated loanfacility since late last year.In a statement last month, the company saidthat significant progress had been made overrecent months in all aspects of therestructuring. As a result, DDW said that itwas confident that it would receive thesupport of a majority of its syndicated lendersto the terms of its debt restructuring. Consequently, on 8th March 2012, DDWpresented the terms of its proposal and thesteps required to implement its plan alongwith the associated timeline to all itssyndicated lenders. DDW has targeted acompletion date of all aspects of itsrestructuring by July 2012, according toKhamis Juma Buamim, DDW and MaritimeWorld chairman.The Company remains extremely confidentit can gain support for its proposals and that itwill secure the necessary support of its lendersto successfully implement its restructuring.This will leave the group in a strong positionto continue to develop and implement itsstrategic plans, said Buamim.The company exceeded its budget in 2011 the actual EBITDA for CY 2011 for Drydocksshowed an increase of 65% over budget.Strong growth has been witnessed by thecompany over the recent past and at this pointin time, Drydocks Dubai expected to close CY2012 with a higher EBITDA than budgeted.Furthermore, the company has woncontracts totaling $255 mill since the turn ofthe year, which puts it in a strong position toachieve its 2012 business plan, Buamimclaimed. The huge complex was designed and builtwith three giant drydocks in the mid 1970s ata time when it was envisaged that ULCCswere here to stay and a 1 mill dwt tanker wason the drawing board. Today, the company has diversified into theoffshore and conversion fields, buildingsupply vessels, bunker barges, tugs andconverting older tankers and gas carriers intoFPSOs and FSOs. Oman to openLocated outside the Straits of Hormuz atDuqm is the brand new shiprepair complex ofOman Drydock Company (ODC), which isdue to be officially inaugurated next month.However, since it opened for business in April2011, ODC has been gradually ramping up itsoperations. Starting with the handling ofrelatively small vessels, ODC has sincehandled more than 32 vessels of varying sizes.For example, last November, ODC receivedits first LNGC, the Muscat LNG, owned byOman Shipping Corp.As part of its mid-life service, the vesselunderwent an 11-day docking period at ODCand was redelivered within the estimated 12days.The repairs included the mechanicalcleaning of the main boilers and the fire sides.She was pressure tested and the LNG cargopumps, ballast pumps and the safety andmounting valves for the main boiler wereoverhauled.In addition, the cable hangers and cableswere renewed at five locations and new cablesupports (20 sets) for the cable way wereinstalled during the passage and the core wireswere modified in tube type fluorescent light.As part of the regular maintenance work, thehull was recoated.After docking at ODC, the ship loadedLNG at the Qalhat Terminal and left for theFar East.DMC facilitiesAt the smaller end of the scale, DubaiMaritime City (DMC) recently signed a LandLease (Mustaha) agreement for 25 years withshiprepair and building entity, Dubai ShipBuilding. The area of the land is over 11,196 sq mand is a shiprepair plot within DMCsbusiness district.We continue to strengthen our operationsin Dubai Maritime City, since the formallaunch of the maritime district last year. Thispartnership will help us take greater strides atpromoting the region as a global maritimehub. We are keen to promote local andinternational players within the City, whichwill be a unique meeting point offering wide-ranging choices for the industry, said KhamisJuma Buamim, chairman of Drydocks Worldand Maritime World. DMCs head Bader bin Mubarak, said,Dubai Maritime City, being the mammothproject that it is, has been a part of our longterm planning for relocating our extensiveprojects. Being a part of the maritime historyof Dubai and representing the national spirit,we at Dubai Ship Building aim to partner withthe pioneering group of Drydocks World andMaritime World to further strengthen themaritime industry within the region and bringinto focus national proficiency. Maritime activity at DMC primarilyrevolves around the maritime and businessdistricts. The maritime district is built on148,989 gross sq m of land and will be centrefor marine and maritime related facilities andthe industrial precinct of the business districtwill cover a gross area of 519,780 sq m,consisting of industrial and retail facilities. Another company to pledge its support forDMC was Goltens who last October carriedout a ground breaking ceremony of its newoffice and workshop facility in DMC.Goltens, which has a strong presence in theMiddle East and across 21 locationsworldwide, has signed a long term Mustahaground development agreement with DMC fortwo plots within the complex. These are ofabout 23,000 sq m each and have been leasedto the company for 25 years. When we announced the opening of themaritime zone of the city in March 2011, wewere determined to develop Dubai MaritimeCity as part of the Strategic Plan of 2014. Thevast collection of amenities and facilitiesprovided by DMC to encourage business bysea is an opportunity for real growth anddevelopment of this vital sector. Infrastructuredevelopment is progressing rapidly and we seeheightened interest from companies all overthe world in this unique facility, saidBuamim at the signing ceremony.The Middle East marine repair market isexpected to grow significantly medium to longterm and Goltens Dubai will for theforeseeable future be a large hub for theMiddle East and we especially see a futuregrowth within our specialist core disciplinesdiesel, in situ and mechanical, said PaulFriedberg, president Goltens WorldwideServices.DMC has rapidly evolved since the launchof Phase 1 in early 2011 when 110 units ofdifferent sizes were constructed and declaredoperational. More offices, shops, showrooms,yacht manufacturing workshops, andwarehouse and workshop units will bereleased on completion of Phase II. April 2012 TANKEROperator 15DDW chairman Khamis Juma Buamin.TOTO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 5INDUSTRY - MIDDLE EAST REPORTA few years ago, the Middle East countries started to invest in their own tonnage in aneffort to woo cargoes away from the independent companies hulls. Gulf owners see abrighter futureemergingThis has met with only limitedsuccess mainly due to the generaldownturn in freight ratesexperienced for the past fouryears, or so. However, with the build up of refinerycapacity and petrochemical plants in theregion, those companies investing inchemical/product tankers seem to have abrighter future than those opting for largecrude oil carriers. Several companies choseboth. One, Dubai-based Gulf Navigation(GulfNav), could benefit from both the largeand the chemical/product sectors, as at thetime of writing, Asian refinery demand waspushing VLCC rates north again. However,whether this rise is sustainable in the wake ofan increase in the supply of vessels, remainsto be seen. US and EU sanctions against companiesbuying oil from Iran has already led to Indianand Chinese oil importers seeking othersources of crude oil, which could give themarket for large tankers a further boost byincreasing tonne/miles, given that some oilwill be imported from West Africa, theCaribbean and the North Sea, despite otherGulf states ramping up their production. GulfNav is also active in the IMO II andIMO III chemical sectors and in 2009, formedGulf Stolt Ship Management (GSSM), a jointventure company with Stolt Tankers, toprovide a more focused and complete range ofintegrated marine services. At present fourchemical tankers are managed by GSSM. In addition, the company has two VLCCsand eight chemical tankers, plus two VLCCnewbuildings, due to be delivered next year.They are believed to have been fixed toChinas Hainan Group for 10 years.Also based in Dubai is Gulf EnergyMaritime (GEM). This tanker owner wasformed in 2004 as a joint venture shippingcompany with Emirates National Oil Co(ENOC). GEM currently has the fleet of 19 tankers,comprising eight modern Panamaxes andnine chemical/product tankers- six MRs andthree Handysize vessels. Two Aframaxes areto be delivered later this year from Samsung. Profit downturnPerhaps illustrating the problems facing tankerowners and not only those located in the Gulfwas the annual consolidated financial resultsfor 2011 recently released by the NationalShipping Corp of Saudi Arabia (NSCSA).Net profit totalled SAR287.8 mill,compared to a net profit of SAR414.9 mill for2010, a decrease of 30.6%. Earnings per sharefrom net profit (EPS) amounted to SAR0.91compared to SAR1.32 for 2010, the companysaid.Gross profit totalled SAR339.2 mill,compared to SAR557.4 mill for 2010, adecrease of 39.1%, while operating profit wasreported as SAR229.5 mill compared toSAR453.6 mill, a decrease of 49.4%.NSCSA CEO, Saleh Nasser Al-Jasser, saidthat the decrease in net profit last year wasdue to the following reasons:1) A decrease in average TCE rates in theVLCC spot market, due to excess capacity oftonnage resulting from the entry of newtonnage into the market.2) The expiries of three VLCC timechartercontracts during the year, which hadnegatively affected the results of crude oiltransport sector, in addition to the risingbunker costs.He said that other sectors had shownimprovement in their net income results,which helped to minimise the negative impacton the overall consolidated net incomecompared to net income of last year.The bunker subsidy item has beenreclassified, which impacted on the grossprofit and operating profit. Similarly,corresponding items in the consolidatedincome statement for the 2010 financial yearhave been reclassified for comparisonpurposes.NSCSA currently owns a fleet of 17VLCCs, manages 20 chemical carriers andfour conros. In addition, another five 46,000dwt chemical carriers are due to be deliveredthis year, plus a larger 75,000 dwt chemicalcarrier to be delivered in 2013.All of the chemical tankers are operated byNational Chemical Carriers (NCC), an 80:20joint venture company with SABIC. In 2009, NCC entered into a 50:50 jointagreement with Odfjell and established anoperating concern in Dubai. The company alsohas a 30.3% stake in LPG carrier operatorPetredec.Saudi Aramco subsidiary Vela InternationalMarine, also managed from Dubai, currentlyowns 15 VLCCs, one LR2 and five MRs.According to its website, Vela also has up to40 tankers ranging from VLCCs downward oncharter at any one time. There are other companies in the Gulf, suchas Kuwait Oil Tanker Co (KOTC), asubsidiary of Kuwait Petroleum Corp andNITC, which is the subject of muchconjecture at present. Just outside the Gulf is Oman Shipping Co(OSC), which has 14 VLCCs, plus four moreon order; two LR2s; two methanol carriers;two chemical tankers and two product tankersin operation.Middle East owners are strong in the VLCCsectorTANKEROperator

April 2012 16TOTO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 6INDUSTRY - CLASSIFICATION SOCIETIESApril 2012 TANKEROperator 17IACS to submit CSRharmonisation rules to IMOThe International Association of Classification Societies (IACS) has a busy year comingup, not least with the harmonisation of the Common Structural Rues (CSR).The latest release of the IACS Blue Book packagecontinues and enhances our technical support to theshipping industry through IACS work on research and development both at the classification and statutory level. - Derek Hodgson, IACS Permanent SecretaryAt IACS Councils winter meetingat the end of last year, themembers considered the currentposition regarding the importantproject to harmonise the CSR.This will lead to the submission of theharmonised rules to the IMO for verificationof compliance with the IMO Goal BasedStandards by the end of 2013. During the meeting Industry representativesfrom shipowning and shipbuildingassociations were consulted and their inputassisted in the preparation of a robust,consistent and thorough set of rules, which itis anticipated will be well received, IACS said.Council also took the opportunity tointroduce new quality measures, which willgreatly enhance the performance of theirAccredited Certification Bodies who havetaken over the auditing of the 13 IACSmembers.Finally, under the leadership of RussianMaritime Register of Shippings PavelShikhov, IACS said that it was resolved tosupport the CSR harmonisation process withthe continuing substantial investment of time,finance and human force from its members.In March of this year, IACS released anupdated version of its Blue Book. This is anelectronic library of technical resolutions (bothpast and present) adopted by IACS, as a resultof its technical work for the benefit ofinternational shipping since its establishmentin 1968. It contains - IACS Unified Requirements, which IACSmembers incorporate into their rules. Unified Interpretations of IMO convention requirements, which members apply uniformly when acting on behalf of authorising flag administrations, unless instructed otherwise. Procedural Requirements governing practices among IACS members. IACS Charter and IACS Procedures, which define the purpose, aim and workingprocedures of the Association. Recommendations relating to adopted resolutions that are not necessarily matters of class but which IACS considers would be helpful to offer some advice to themarine industry. UR - Unified Requirements Status advising on implementation status. UR HF & TB containing the history and technical background files for the Unified Requirements. Quality Documents containing QSCS (IACS quality system certification scheme)description, quality management system requirements, audit requirements, ACB (accredited certification bodies) requirements and other quality procedures.Improve accessTo improve access, speed and availability ofthe Blue Book at any time, the latest versionwill be made available for downloading fromthe IACS website. Ship designers, shipbuilders, classificationsocieties, shipowners, shipbrokers, insurers,associations, accredited certification bodiesand the shipping industry at large will be able to download the package free of charge.IACS permanent secretary Derek Hodgson said; The latest release of the IACS Blue Book package continues andenhances our technical support to the shippingindustry through IACS work on research and development both at the classification and statutory level.TOTO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 7TOINDUSTRY CLASSIFICATION SOCIETIESRussian class societyspeaks its mindCurrently, the Russian Maritime Register of Shippings (RS) chairs the 13-memberInternational Association of Classification Societies (IACS). RS is represented by itsdirector of classification and development Pavel Shikhov. TANKEROperator

April 2012 18Shikhov took over the chair fromClassNKs Noboru Ueda at a timewhen the class societies have a loton their plate with several majorissues coming to the fore in the shippingindustry. In a wide ranging interview, Mikhail GAyvazov, RS director general gave its viewson a number of topics affecting shippingtoday. Perhaps the most urgent consideration is thefitting of ballast water treatment plants inview of the impending Ballast WaterManagement (BWM) convention, which at thetime of writing was very near to ratification. RS said that it urged shipowners to installapproved equipment as soon as possible,ahead of the BWM convention ratification.RS strongly recommends to shipowners to beaware of the development of the requireddocumentation and to choose the ballast watertreatment system for their ships with ballastwater volume less than 5,000 cu m,constructed in 2009, or later, Ayvazov said.This is to be done without delay for thefollowing reasons:1) According to rule B-3.3 of the BWM convention, the first date of the Ballast Water Performance Standard D-2 application, in case of the BWM convention entering into force, will be defined for the above-mentioned vessels.2) It will be difficult to fit the ships with the necessary equipment in such a short space of time.In the near future, shipowners will have tomodify ballast water systems on their existingvessels. In the case of approved BWT systemsinstallation, the individual approach to everyvessel in service is required. However, theintegration of such systems on board vesselsunder construction is much easier, as thesystem can be designed into the vessel inadvance. During the development of the projectdocumentation for BWT systems, forinstallation on existing vessels, the followingis to be assessed.A) Sufficient space in which to install the system. B) Adequate power within the electrical system on board. C) The provision of the required ballast pump pressure in the event of a pressure loss in the ballast water treatment system.D) The possibility of the BWT system installation subject to the existing ballast system structure (eg, ballast pumps are situated in different spaces, there are several discharge outlets, cargo tank is used as ballast water tank, etc).In the event that there is not enough space toinstall the system and its pipelines, severaldecisions will have to be taken, such as toplace the system on deck in a container, or ina cargo tank with the installation of anadditional bulkhead. In this case, RS willreview the technical documentation forcompliance with the RS rules.Integration of a BWT system at the shipdesign stage is an important issue for theshipowner together with the classificationsociety. For example, in most cases at theapproval of technical documentation stage, RSwill require the corresponding calculations toRS has specialised in the classing of ice class shuttle tankers.TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 8TApril 2012 TANKEROperator . 19INDUSTRY CLASSIFICATION SOCIETIESprove the systems compliance with that of theclass requirements.Arctic considerationsTurning the increasing summer use of theNorthern Sea route (NSR), the shortestmaritime routes connecting NorthwestEuropean markets with the Pacific region passthrough the Arctic. According to the experts, the NSR is about35% shorter than the traditional southernroutes (through the Suez Canal) and thereforemay become a new alternative navigationroute. In 2010 - 2011 about 20 large tankersand bulkers transited the NSR.Moreover, the development of Russianoffshore fields in the Arctic requires aneffective transport system to supply offshoreoil and gas units and to safely ship energyresources. One of the solutions is to extend thecapacity of the NSR. Its safe navigationshould be accomplished with the aid of apowerful icebreaking fleet, large Arctic ships,plus communications, navigation andhydrographic systems. The icebreaking fleet is the basis for thesafe operation along the NSR, Ayvazov said.Nuclear powered icebreakers enable theefficiency of the NSR to be increased,ensuring year round navigation in the westernpart of the Arctic. An icebreaking fleet isessential for ice navigation. He confirmed that RS is currently involvedin all Russias icebreaker constructionprojects. Besides traditional hull designs, themost up-to-date icebreakers feature innovativesolutions. After the development of thedouble-acting (DAT) ships, the next step forice class is an asymmetric hull. Under the Russian Federal TargetProgramme on ship construction, a newasymmetric icebreaker (a project developed byAker Arctic Technology) will be constructedto RS class by the Yantar shipyard(Kaliningrad, Russia) in co-operation withArctech Helsinki Shipyard.The vessel will feature a patented obliquedesign with an asymmetric hull and threeazimuth propulsors, which will allow thevessel to operate efficiently ahead, astern andat other angles. The vessel will be able toproceed at a continuous speed in 1 m thicklevel ice both ahead and astern and in anoblique mode, the vessel will be able togenerate a 50 m wide channel in 0.6 m thicklevel ice.In addition, the vessel will feature highmanoeuvrability during ice operations.Besides icebreaking, the vessel may be usedfor environmental protection purposes. Theadditional functions of the asymmetricicebreaker will include firefighting and rescueoperations, as well as ability to deal with oil-spills on the sea. In January 2012, RS took part in a keellaying ceremony for the two multi-functionalicebreaking supply vessels ordered by SCFSovcomflot at Arctech Helsinki Shipyard. Thevessels are intended for offshore supply andare being built as a result of an agreementsigned by SCF and Exxon Neftegas.The vessels will be assigned dual RS/LRclass with the RS Class notation - KM(*)Icebreaker7[1] AUT1 EPP OMBO FF3WSDYNPOS-2 supply vessel.In view of the growing interest/demand forexploration and transportation ofhydrocarbons from the Russian Arctic, mostof the research studies RS is now undertakingare aimed at the development of an adequateand efficient regulatory framework for thecommon use by all the parties involved,Ayvazov explained. These activities could further the idea thatthe NSR could be an alternative seaway fromEurope to East Asia. The passage through theArctic Ocean is significantly shorter indistance, but there are still many challenges tobe addressed, with a lot of work ahead toTO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 9TANKEROperator

April 2012 20INDUSTRY CLASSIFICATION SOCIETIESRussian Register CEO Mikhail Ayvazov.make the navigation along the northern coastof Russia feasible, safe and economicallyeffective, he said.Today, with the growinginterest in hydrocarbons production andtransportation from the Russian Arctic, RSforesaw a significant increase in the numberof large ice class offshore units, oil tankersand LNG carriers designed to operate in heavy ice conditions. Enhanced documentationBeing seriously concerned aboutcommunications improvement with RSclients, the class society recently launched anoptimisation programme for documentationmanagement, which will speed up andsimplify the applications and requestsprocessing, thus increasing efficiency ofinformation exchange, management andaccess, as well as minimising its loss. The class society explained that in recentyears, the number of applications and requestsfrom shipowners to RS had significantlyincreased. The uniform system will connectthe RS divisions in 34 countries.All the changes will significantly benefitour partners and clients and therefore areessential for the wellbeing of our society,emphasised Ayvazov.According to the class society, RSannually processes around 60,000 documents.Timely implementation of the corporatedocument management system will providereliable and effective document control at allstages and will significantly benefit the RSclients.The first phase of the projectimplementation includes docflowautomatisation in 25 RS branch offices inEurope and St Petersburg.In addition, RS plans to broaden the rangeof its services. Having gained experience inin-service survey of modern LNGCs, in 2012for the first time RS will provide technicalsupport during design and construction of thistype of vessel. Two LNGCs of 170,000 cu m capacity eachwill be built by STX Offshore & Shipbuildingto a dual RS/LR class with RS acting as theleading society. The RS class notation will be- KM (*) Ice2 AUT1 OMBO EPP ANTI-ICE LI CCO ECO-S WINTERIZATION(-30) Gas carrier type 2G (methane).The specific feature of these newbuildingsis a tri-fuel diesel-electric propulsion plantallowing the use of the LNG cargo carried asfuel. This will enable reduction of nitrogenand sulphur emissions to the atmosphere,which is an important step towards reductionof the maritime transport share in theenvironment pollution.The agreement with STX Offshore on theclassification of the LNGCs triggered anestablishment of an additional RS office inSouth Korea, which will technically supportship design and construction, optimise co-operation with South Korean shipbuilders, aswell as develop services in the region. The Centre was established in line with theRS strategic global expansion plans. Themain objectives of the newly establishedoffice are: To foster closer contacts with clients and partners within one time zone. To provide technical support to RS surveyors involved in newbuilding projectsat Korean yards. To render the full range of RS services in newbuilding for Korean market, including design review, surveys of ships during construction, certification of marine equipment. To liaise and hold joint seminars with representatives of the Korean maritime industry.The official opening ceremony and eveningreception took place on 7th March 2012 inBusan. At the ceremony Ayvazov said: Ourclients ambitious fleet construction planshave prompted us to expand our globalpresence, especially within the majorshipbuilding centres. The first RS office in the Republic ofKorea was established back in 1996 with themain focus on ships in operation. Since 2005,RS has continuously been involved in variousnewbuilding projects in Korea and hasacquired substantial experience of co-operation with the major Korean shipyards. The high-tech marine projects involvingRS participation in Korea range from Arcticshuttle tankers to state-of-the-art drilling units.These projects have enabled us to establishgood relationships with the local maritimeindustry, he said.Another office has been opened in Panamato facilitate the organisation of quality andtimely request performance in the Republic ofPanama, the US, Canada, Mexico, theCaribbean, Colombia, as well as Venezuelaand Ecuador. This forms part of RS strategicplans for the expansion of the class societysworldwide presence. For example, the RS Regional Office for theAtlantic Area, opened in December 2011 inHamburg co-ordinates all requests in Europe,plus North and South America.RS is also heavily involved in maritimescientific research. On 19th December 2011,the class society held the annual meeting ofthe RS Scientific and Technical Council(STC) Presidium. Leading scientists and experts in themaritime industry attended the meeting atwhich STC members summarised the 2011research results and prioritised futuredevelopments.STC was established in 1915 for maritimesafety scientific research co-ordination. Nowthe council comprises about 300 leadingscientists and high-profile professionals within the industry, representatives of research institutes, design bureaus anduniversities. TOTO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 10DNV takes on a moreproactive role invessel operationsBy now, the maritime world now knows that the IMO requires that CO2 emissions fromvessels be regulated starting with all vessels ordered from 1st January 2013. Tankers will have to comply with aspecified Energy EfficiencyDesign Index (EEDI), plus a shipspecific Ship Energy EfficiencyPlan (SEEMP) containing operationalguidelines for the vessels fuel efficientoperation, which must be kept on board. The EEDI will become more stringent forvessels ordered in future years. For example,it is required to be reduced by 10%, 20% and30% for vessels ordered from 2015, 2020 and2025 respectively. This is likely to drive both vessel designersand equipment manufacturers to furtherdevelop energy efficient systems, which couldaffect the freight and secondhand market forvessels. For example, when future vessels are10 years old, they may be competing in thecharter market with newer vessels that are atleast 30% more fuel efficient. To help shipowners, vessel designers, etc tocome to terms with this new index, DNV,together with the independent privately-ownedGerman Hamburg Ship Model testing facilityHSVA, has published DNV Fuel SavingGuideline - for Tankers. This is part of atrilogy of guidelines - the other two concerncontainerships and bulk carriers. At the guides launch, DNVs businessdirector Jost Bergmann illustrated this pointby saying recently MOL had sold a 14-yearold VLCC for recycling. Although the reasonsfor selling the vessel were unknown to DNV,Bergmann suggested that with todays highfuel costs, the vessel might not be ascompetitive as when it was designed and builtin the mid 1990s. With new designs offering up to 30% higherfuel efficiency is is expected that chartererswill focus more on fuel efficiency in thefuture, Bergmann warned. DNV said that any measure considered forreducing EEDI must affect one or more of theindexs equations parameters. For example,the most effective method is to reduce thevessels design speed. A 10%reduction in the design speedresults in at least a 25% reductionin installed power, giving an EEDIreduction of around 20%. It is theinstalled power that reduces theEEDI and not the power demand,the guideline pointed out. The Guideline listed some of thepossibilities on offer today forreducing EEDI, together with theparameter affected. DNV gave thefollowing examples;M/e installed power reduction -the hull and propeller efficiencycan be improved and/or the speedreduction can be achieved by de-rating the engine. Lower specific fuel consumption switchto a more efficient engine/engine controltuning. Increase the speed without increasinginstalled power improved hull and propellerefficiency (ie, fitting Mewis Duct, prop bosscap fin, or other flow devices). Fuel as an energy source with lower carboncontent - eg LNG, biofuel (no guideline inplace).Innovative mechanical energy efficienttechnology eg kites (no guideline in place)Innovative electrical energy efficienttechnology eg waste heat recovery. Increase the capacity larger vessels.In addition there will be compensationwhen using shaft generators and applying icestrengthening. Other correction factors areunder development, eg voluntary structuralenhancements. Some of the suggestions, such as kites andsolar panels, cannot provide the power neededall the time for the main engine and thus theEEDI will not be reduced. There are noguidelines in place for the use of thesemeasures to reduce EEDI, but they areexpected to be developed at a later stage,DNV said.Propulsion efficiency devices are not expectedto reduce the engine power, but will enablethe vessel to attain a higher speed, while theuse of biofuels is not covered in the currentframework as their cargo content cannot easilybe ascertained. Efficiency indicatorDNV said that it is essential to be aware thatEEDI is basically an indicator for the potentialfuel efficiency for a specific vessel for onesingle operation condition speed, cargo onboard, draft, trim etc. For most vessels, highfuel efficiency over a range of conditions willbe preferred, based on the likely vesseloperations profile. This will requireconsiderations beyond what is required tomeet the IMO requirements. The bottom line for fuel efficiency is verymuch influenced by the vessels operation.SEEMP can be regarded as a formality withminimum content to guide the persons onboard to fuel efficiency. However, it can alsobe an efficient and more detailed and practicalguide for those on board.Updating SEEMP and the contentsThe Guide includes reference to hull coatings. Source - International Paint.April 2012 TANKEROperator . 21INDUSTRY CLASSIFICATION SOCIETIESTO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 11continuous improvement in line with TMSA isan opportunity for those who wish to useSEEMP as an active tool for the managementof fuel consumption, the guide said. The guide then goes into the main fuelsaving elements and descriptions, such asreducing hull resistance and their measures,such as hull coatings, hull form optimisationand propeller polishing/hull cleaning, givingthe costs and benefits accrued for eachmeasure. A part of the guide is given over toimproving the propellers efficiency looking atthe separation in the aft body, frictional losses,rotational losses, axial jet losses, hub vortexlosses, tip vortex losses and a combination ofseveral effects. This chapter analyses thevarious types of propellers and attachments onoffer, such as the manyducts and fins available.Power plant efficiency isalso covered in depth,including the low load/partload performance, energyrecovery, other sources ofenergy and other measuresthat could be used for themain engine. They includeengine de-rating, electronicengine control, exhaust gasbypass, variable turbine area,shaft generator and waste heat recovery.A chapter is included on operationalefficiency tasking in tactical speedoptimisation, weather routing and voyageplanning, trim optimisation, engine tuning andperformance monitoring. Finally, the guide gives a summary intabular form of the upper bound of fuelsavings potential of the various measurescontained in the book, including thepercentage savings possible where applicable. As for the future, DNV and HSVA said thatpromising technologies are already underdevelopment, which should be available soon,including added resistance to waves, shipperformance modeling in realistic conditionsand the development of lightweight, compositematerials. Both of the publishers pointed out that theyhave advisory services available and the guidecomes with a Return on Investment userguide tool, for which a password will beneeded.FellowSHIP projectThe DNV led FellowSHIP project, involvingpartners Wrtsil, and Eidesvik, has nowreached its third phase. This entails introducing an energy storagecapability in the form of a battery pack onboard an offshore supply vessel already fittedwith a fuel cell and powered by LNG. Although being tested on board an OSV,DNVs principal researcher, maritime transportand FellowSHIP project manager Bjorn JohanVartdal told Tanker Operator that this hybridenergy system has the potential to be used onboard shuttle tankers, bunker and chemicaltankers, or any other type of vessel on coastalvoyages. He also said a battery pack and fuel cellcould be installed on vessels for use when in,entering, or leaving ports and harbours whenfull power is not often needed. A battery packcan easily be re-charged in port, once thesuitable infrastructure is in place. It can alsomeet the requirements for redundancy. The three-year old LNG-fuelled vesselEidesviks Viking Lady had already madeINDUSTRY - CLASSIFICATION SOCIETIESTANKEROperator

April 2012 22Eidesviks OSV Viking Lady is at the heart of DNVs FellowSHIP project.TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 12INDUSTRY - CLASSIFICATION SOCIETIESApril 2012 TANKEROperator 23history by being the worlds first vessel to befitted with a fuel cell as part of her propulsionsystem. Once the battery is installed, thepartners claim that the vessel will be fittedwith a true hybrid system.When the new system is complete, theoperation of the engine will be smoother andmore cost effective, giving further emissionreductions. For example, gas burning enginescan have a methane emissions problem, DNVsaid. The OSVs fuel cell, which generates anelectric output of 330 kW, was installed in theautumn of 2009 and has successfully run formore than 18,500 hours. DNV said that once the battery pack is inplace, the ship will operate using a hybridsystem similar to that which has been installedin hybrid cars for a number of years. However,the potential emission reductions are higherand the return on investment period is shorterfor ships than it is for cars.As for Capex, this involves the batteryenergy storage system and the size of thebattery will be fully dependant of the vesselssize. For those vessels trading along theNorwegian coast, Norways NOx Fund can betriggered, whereby an owner investing inenvironmentally friendly equipment can claima government grant towards the cost.However, in most cases it will be the chartererwho will benefit from cheaper fuel costs.As for Opex, this is dependant on the typeof vessel and its trade, although the benefitswill include reduced maintenance costs and adherence to local emissions regulations. Both oil majors and other leading charterersare now looking for more environmentallyfriendly ways of transporting cargo andoffering services, such as for the offshoresector.The primary potential benefits of the hybridenergy system for a vessel, such as the VikingLady are a 20%-30% reduction in fuelconsumption and CO2 emissions throughsmoother and more efficient operation of theengines and fuel cell. The reductions of otherexhaust components are even higher, it wasclaimed.The whole shipping industry is currentlyfacing record-high fuel costs, which areforecast to go up to about $1,320 per tonne by2030, according to DNV. Based on theseactual costs, the return on investment periodfor the hybrid system is estimated to be lessthan two years.Vartdal explained: We know that the hybridsystem will reduce the energy consumption.When operating, for example, on dynamicpositioning, there will be a major fuel savingpotential. When in harbour, too, the shipshould be able to operate on the fuel cell andits battery power alone, which will reduceemissions significantly. For environmentallysensitive areas, this will be an essentialbenefit. Additional benefits are related toreductions in machinery maintenance costsand in noise and vibrations.A comprehensive measurement programmewill be carried out to verify the savingspotential. The hybrid system will also bemodelled in detail. Calibrated and verifiedprocess models will facilitate simulation andoptimisation of future hybrid systems forvarious types of vessels.New DNV class rules for battery-poweredships have been developed in parallel with thisproject. These are the first class rulesdeveloped to facilitate the use of batteries tobe used as part of a vessels propulsion energy- both as hybrid solutions and for purebattery-driven vessels.The first phase of the project from 2003-2005 entailed a feasibility study into theinstalling of fuel cells on board ship. Thesecond phase (2006-2010) involved the designof the system and its installation on board theViking Lady, which took place in 2009. Thethird phase was implemented this year whenthe system will be tested onshore and thesimulation modeling will commence. Thewhole project is due for completion in 2013and on board testing and measuring equipmentwill be installed.FellowSHIP is financially supported by theResearch Council of Norway, which put upsome 40% of the estimated NOK37 mill totalcost with the three partners picking up 60%. Henrik Madsen has become CEO of theDNV Group.Following the transfer of themajority shareholding in KEMA,DNV has established a groupstructure to manage the strongindustry positions it now holds. As of 1st March, DNVs operations arecarried out through three separate companies -DNV Maritime and Oil & Gas, DNV KEMAEnergy & Sustainability and DNV BusinessAssurance. Each company in the DNV Grouphas a dedicated leadership team.CEO Henrik O Madsen has become CEOof the DNV Group, which now has more than10,000 employees and has offices in 100countries. The company has a strong footholdin the US, where DNV has 1,700 employees,as well as in China where it has more than1,200 employees.Historically, DNV has been strongest inthe shipping industry and this is still truetoday. Our solid base in the maritime industryhas allowed us to branch out into the oil andgas sector, where we now have a firmlyestablished presence. From there, we have expanded intocleaner energy and built up our work incertification. Now we are further expandinginto the fields of power generation andtransmission, gas distribution and sustainableenergy use by joining forces with KEMA,explained Madsen.DNV Maritime and Oil & Gas,headquartered in Oslo, Norway, providesservices to DNVs traditional core markets.The company has a strong foothold in theoffshore and oil & gas sectors. It is headed byCEO Remi Eriksen, the former COO ofDNVs Asian operations. Tor Svensen continues in his role aspresident of the maritime and oil & gasdivision.DNV KEMA Energy & Sustainability,headquartered in Arnhem, the Netherlands,provides services covering the entire energyvalue chain from energy source to end user.The company is headed by Thijs Aarten, theformer CEO of KEMA. DNV Business Assurance, headquartered inMilan, Italy, has operated as a separate legalentity in DNV since 2010. It is one of theworlds leading certification and is headed byLuca Crisciotti, the former director ofoperations of DNV Business Assurance,division Asia and Australia. DNV splits into three divisionsTOTO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 13TANKEROperator

April 2012 24INDUSTRY - CLASSIFICATION SOCIETIESThis was the theme that ran throughthis years annual meeting of GLsHellenic technical committee, heldin Athens on 8th March. The dramatic increases in fuel prices, newregulations and an increased awareness of theimportance of protecting the environment areleading shipbuilders, designers and owners topush against the established boundaries,developing smarter ships for tougher times. Every year, this meeting brings togetherrepresentatives from the Greek maritimecommunity to hear and discuss presentationsfrom both GL and external experts. Dimitrios Korkodilos, the chairman of thecommittee and Athanasios Reisopoulos, GLsarea manager for Southern Europe, joined withthe CEO of the GL Group Erik van derNoordaa to welcome the participants.The shipping industry was still goingthrough a difficult period, Matthias Ritters,GLs region manager Europe/MiddleEast/Africa noted.Looking over the status and outlook for theshipping markets in 2012, the persistentweakness of the world economy and theoversupply in all segments would continue tohave a significant impact, Ritters said. In shipbuilding, contracting at South Koreanyards had been relatively strong in 2011, hesaid, but even so there was significant capacitystill idle at both South Korean and Chineseyards. Chinese yards had increased their capacityover the past years and were taking steps tofurther diversify their product portfolio, suchas large container vessels, LNG carriers andoffshore vessels. The futureLooking ahead, he said, the impact of newenergy efficient ship designs would be felt,while over capacity would put furtherdownward pressure on newbuilding prices. Fridtjof Rohde from GLs consultingsubsidiary FutureShip in his presentationChances of Improvement looked at how,even in the tight conditions facing the industrytoday, there are many opportunities for findingand exploiting efficiencies to save fuel andmoney. He said that the use of new computationaltechniques has opened up the design space forshipping, both in the development of newdesigns and in the ability to makeimprovements during conversions or upgrades.Upgrades to propellers, improving the wakefield and appendages, and installing newsmart software systems such as FutureShipsECO-Assistant, could significantly improve avessels performance. While in newbuildings,the use of computational fluid dynamic (CFD)techniques to optimise the hull form of anexisting design, selecting the right engine andsmarting up auxiliary systems, could result inimproved competitiveness and a better bottomline.Aristidis Efstathiou, GL businessdevelopment manager area Southern Europe,concluded the meeting with his presentationson SEEMP: Introduction andImplementation. Efstathiou, highlighted the fact that theSEEMP will soon become mandatory for allvessels (larger than 400 gt) at their first IAPPrenewal, or intermediate survey after 1stJanuary 2013.In order to support its clients, GL hasdeveloped a clear guidance on the form andimplementation of the SEEMP. He showedhow GLs user friendly standardised templatesand energy management expertise could makeit easier for a vessels operators to create aSEEMP, either as a stand alone document oras an integral part of a broader managementsystem.New members of the committee includedMichael Androulakakis, technical manager ofAvin International, Chondros Pantelis,technical manager of Efnav Co, GeorgiosKavounis, technical manager of AllseasMarine, Dimitrios Kyriakakos, technicalmanager of Goldenport Shipmanagement,Kostas Maounis, managing director ofPhoenix Energy Navigation, Spyros Psychas,technical manager of Odysea Carriers andStylianos Vatistas, technical manager ofNavarone.GL discusses thefuture of shipping atGreek meetingHamburg-based class society Germanischer Lloyd (GL) has said that its goal was toidentify and seize chances for improvement in a difficult business environment.Hellenic Technical Committee Speakers (from left to right): Christian von Oldershausen (GLsenior vice president global sales), Matthias Ritters (GL region manager Europe/MiddleEast/Africa), Nicholas Skiadaresis (managing director of ENES Marine Service), AthanasiosReisopoulos, (GL area manager for Southern Europe), Dimitrios Korkodilos (managingdirector of Andriaki Shipping and chairman of the committee), Erik van der Noordaa (GLGroup CEO), Dr Tjerk de Vries(senior executive vice president classification) and FridtjofRohde (GL FutureShip).TOTO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 14He said that owners were asking how can I save money by usingthe new conventions? How do Iavoid a lot of additional expensein complying with these conventions?Boardley noted that port state control wasincreasingly looking at the managementsystems on board a vessel in an effort