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ContentsMarketsMRs, recycling, forecasts

UK ReportStill a world forceRegistry gains vessels

Norway Report� Oslo comes in second� DNV looks into the future� Seagull adds to approvals

Satcoms� A plethora of choices

Piracy� Swarms a myth� SAMI’s programme� Mozambique move challenged � STCW amendments

56

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Technology30 Emissions Control�Abatement technology�Reducing SOx emissions�Fuel efficiency control�Negating carbon risk�Filling knowledge gap

Emergency Response� Salvage operations� ‘Stolt Valor’ at ASRY� PSC addresses fire safety

Shiprepair/maintenance� Goltens offers BWT services� Slow steaming survey� Castrol extends range� Mid East yards up and running

SeparatorsSaving waste fuel

STS TransfersData service offered

Tank Servicing� Tank linings examined� Company expansion

Conference ReportCoping with current issues

TANKEROperator � June/July 20122

COMMENT

Is shipping confidence really rising?

TANKEROperatorVol 11 No 7Tanker Operator Magazine Ltd2nd Floor, 8 Baltic Street EastLondon EC1Y 0UP, UK www.tankeroperator.com

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Somewhat surprisingly given the fundamentals,overall confidence in the shipping industryincreased in the three months ended May 2012,reaching the highest level since February 2011. This was the result of the latest quarterly confidence survey fromaccountant and shipping consultant Moore Stephens.

A number of respondents were upbeat about prospects for the market,despite admitting that any recovery would have to start from acomparatively low base. “If we are still alive now, after all the vesselsthat have entered the market and all the banks that have pulled out,there is a good chance that better times await us,” said one.

Some thought that a recovery in the markets could occur in the shortterm, typified by the comment from the respondent who noted, “Thevolume of business activity is expected to increase in the next quarter.”Most, however, were taking the longer view. “We will see theimbalance between tonnage supply and demand corrected in early2014,” said one. “Until then, we hope to see ship operators, cargointerests and charterers exercising good supply-chain values based onreasonable freight and timecharter rates in order to get the industrythrough these tough times”.

There was a high level of concern about the global economy andparticularly about problems within the eurozone. One respondent said,“The European economic crisis is worsening, leaving ship financing atthe crossroads”.

Two familiar causes of concern were again evident in the responsesto the survey, the first of which was summed up by the respondent whoemphasised, “There are too many ships coming onto the market”. Onerespondent foresaw a different kind of problem arising from the surfeitof tonnage, warning, “For the first time in a long while, shipping couldface a situation where newbuildings currently being delivered may berendered technically obsolete in five years’ time by new ships beingordered today which, due to technical innovations, may be up to 20%cheaper to operate.”

Meanwhile, despite the recent fall in global oil prices, andconsequently in the price of bunkers, fuel costs continued to be a worry.“The ultimate squeeze nowadays really comes from the cost ofbunkers,” said one respondent. “On top of the high price of oil,refineries are producing less and less marine product, putting furtherpressure on bunker prices”.

Turning to the prospect of making a major investment in the next 12months, one respondent said, “There will be excellent opportunities forcash buyers over the next 12 to 18 months, as banks increasingly

foreclose, or as distressed owners are forced to sell in order to survive”.Another noted, “There is an opportunity to invest in eco-friendlyvessels at very low cost.”

Overall, 40% of respondents thought that tanker rates would increase,as opposed to 35% last time. Charterers were the notable exception(surprise, surprise – Ed). Just 18% anticipated that rates would go up,compared to 35%. The number of owners anticipating higher tankerrates was up from 34% to 41% and of managers from 36% to 41%.

However, one respondent - without specifying any particular sector -complained, “Brokers are not fighting for the best rates. They need tofix so many vessels per day that they no longer care about the levels atwhich they fix and owners are suffering.”

Moore Stephens shipping partner, Richard Greiner, said, “Despite thefinancial woes in Europe, notwithstanding the slump in the freightmarkets and irrespective of tonnage overcapacity, our latest surveyrecords an increase in confidence in the shipping sector for the fourthconsecutive quarter.

“There is little new about the problems, which range from politicaland economic crises to the price of a good second mate. What isunusual is the severity of those problems, and their confluence at oneperiod in time. And, as is so often the case, each possible remedy bringswith it the potential for another difficulty. Fuel costs are a majorexpense, which shipping can do little to influence for the better.

“What it can do – and is doing already – is starting to explore thepossibility of a future based on eco-friendly ships powered by fuel otherthan diesel oil. But, as more than one respondent noted, that places apotential cloud over some of the ships now being built and delivered,which could be made redundant by new technology long before theyhave served a useful working life. Furthermore, some owners areclaiming that eco-friendly designs are being advanced by shipyards as amarketing gimmick to persuade companies to order more ships at atime when we already have too many.

“There is no end in sight, for example, to the political and economicstrife that is today’s eurozone. And new finance is very hard to comeby. Shipping is going to need the continuing support of the banks as itstruggles to emerge from its current difficulties. Some argue that thebanks have not done – and are not doing – enough. One leadingoperator has gone so far as to say that shipowners will have to becomebankers in order to survive. He has even coined a name for this newhybrid being – the ‘shanker’,” Greiner concluded.

I think I just might go out and buy a ship – Ed. Anyone like to join me? TO

INDUSTRY - MARKETS


MRs – does sizematter?

In the following pages, we look at MRs, recycling and publish a bank’s view of themarket going forward.

Starting with MRs, since thebeginning of this century, thelarger category has gone through amajor transformation.

The size of the MR fleet between 40,000 to55,000 dwt (MR2) has increased by more thanthreefold over the past 12.5 years from 344 to1,174 tankers. In contrast, the supply of25,000 to 40,000 dwt tankers (MR1, or socalled ‘Handies’) has remained fairly static,rising just marginally over the same period,reports Gibson Research.

The end result of these developments is thatthe larger MR fleet is now nearly double thesize of the smaller MR fleet, whereas, thesituation was the reserve back in 2000. Theinvestment in new tonnage is also dominatedby larger MRs, with around 80% of all ordersplaced since 2005. Here the emphasis has beentowards the 47-55,000 dwt size range, Gibsonsaid.

To those not directly involved in the day-to-day operations of such vessels, the owners’preference for larger MRs may appear to beunwise, considering that the smaller MR fleetis more balanced in terms of supply.

Both size groups will have a limited numberof deliveries over the next few years.However, the number of new additions in thesmaller segment will be even less than in thelarger category.

MR1s also have considerably morecandidates for scrapping. Near 13% of theexisting smaller MR fleet is still single hull,while 15% of the existing double hulls areover 15 years old. In comparison, just 4% ofthe larger MRs is single hull, while less than10% of the existing double hull vessels areover 15 years of age.

Another advantage of smaller over thebigger MRs is that they come at a lowerinvestment cost and with lower bunkerconsumption.

Despite all of these attractive points, thefundamental drawback in the 25-40,000 dwtsize range is that the trading opportunities arehighly restrictive. There is a vast market forthese units in the short haul trade within theNorth West Europe/Baltic and within theMediterranean. However, there is very littleMR1 business for the long haul trade out ofthe UK/Continent and the Mediterranean (eg,

transatlantic TC2 market) and the situation ismore or less the same in the Caribbean/USGulf, or Atlantic Coast markets, Gibson said.

In the Middle East and the Asia/Pacific, theMR market is also vastly dominated by largerMRs. Interestingly, although in the Far Eastand South East Asia the prevailing ‘reference’cargo size is 30,000 tonnes, in reality parcelsizes are bigger and vessels traded are by farwithin the 40- 55,000 dwt range.

Therefore, for a local European trader in aguaranteed local market for whom flexibilityis not important, the MR1 segment could bean attractive proposition - although limitedmarket opportunities are likely to translate intoa lower resale value.

However, for those looking for flexibilityand/or opportunities for longer haul trades,investment in the larger MR segment appearsconsiderably more attractive. Finally, for theowner, who wants to trade internationally,opting for a larger MR is really the onlyoption, Gibson said.

Posidonia is often the vehicle used toannounce the latest round of tankerinvestments. However, this year it wasominously silent. In the first five months of2012, Greek shipowners placed orders for justthree tankers resulting in a mere 300,000 dwtbeing added to the orderbook, according tofigures produced by Gibson Research.

During the whole of 2011, Greeks placed 32tanker orders amounting to 3.6 mill dwt. Sohave Greek shipowners lost their appetite fortanker investment in newbuildings, or are theybeing more selective in their approach?

In deadweight terms, Greek owners are setto take nearly 23% of the current tankerorderbook still under construction, whichconsiderably outweighs the contribution of anyother domicile nation. Greeks also appear tohave been more selective in their choice ofinvestment with more emphasis on specialistvessels, such as tankers fitted with dynamicpositioning (for the offshore sector) tied intotimecharter deals.

In addition, Greek orders for LNGCsnumbered 33 since the beginning of 2011 andSource - Gibson research

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INDUSTRY – MARKETS

several VLCC orders have been converted toLNGC orders to take advantage of a sectorwhere the supply situation is failing to keeppace with demand.

Greeks still appear to have cash to spend inthe sale and purchase market. Owners havetaken advantage of declining asset values andplundered yard resales, as well as conventionalacquisitions.

RecyclingDemolition Prices for elderly vessels havefallen by a quarter in 2012 to date. Owners areencouraged to dispose of recycling candidatessooner rather than later, warned MarkWilliams of Braemar Seascope.

Addressing the 7th Annual Ship RecyclingConference in London on 19th June, theBraemar Seascope research director tolddelegates that deflating international steelprices were likely to translate into lower offersfor recycling tonnage in the coming quarters.

Meanwhile, rapid reductions in the value ofthe Indian, Pakistani and Bangladeshicurrencies against the US dollar are causingdifficulties for cash buyers and end usersstruggling to pass on cost increases to theirown customers, despite long-term strongrecycled steel demand growth prospects in thesub-Continent.

Forex risk for recyclers has beencompounded by intermittent limitedavailability of credit. Buyers’ banks have beenchallenged by ‘sight LC’s’ – letters of creditthat must be honoured on sight, which can behampered by a shortage of hard currency.

Meanwhile, cash buyers paying hard

currency for recycling candidates are bearingthe forex and credit risk of selling in localcurrency to the recycling facilities.

Falling demolition price assessments, aspublished by the Baltic Exchange, are likely toinfluence secondhand vessel prices, saidWilliams: “For example, it could be arguedthat over-age oil tankers are now priced offscrap, which will lead to increased numbers ofyounger ships being sucked into the recyclingmarkets.”

Williams also presented the hypothesis thatspikes in scrapping are driven not only by lowfreight rates, or high scrapping prices, but bycredit crunches. “Credit crunches coincidedwith peaks in recycling in 1986 (the year theBiffex bottomed out at 550 points and bankshad stopped supporting technically bankruptowners following the savings and loan crisis),

1998 (the Asian financial crisis which led toan Asia-wide credit crunch and highscrapping, despite relatively low values perLDT) and 2008/09 (the global financialcrisis).”

DNB more positive DNB Markets has raised its tanker rateforecast, on average, by 20% for 2012, 23%for 2013 and 13% for 2014, since its lastreport published at the end of last year.

The bank said that it was more positive onthe tanker sector with utilisation estimated at90% this year, which took into account 20% oftankers slow steaming. With flexibility on thesupply side, DNB forecast tanker utilisation toremain at around 90% as strong rates will bemet by higher speeds.

For the next three years, DNB estimatedthat VLCC rates will be just shy of $30,000

Spikes in scrapping are driven not only by low freight rates, or high scrapping prices, but also by credit crunches. Source - Braemar Seascope.

DNB Rate Forecast

Type 2012 2013 2014 2015

VLCC 27,500 28,000 29,000 30,000

Suezmax 23,000 24,000 24,000 25,000

Aframax 14,500 19,000 19,000 20,000

Panamax 16,500 16,000 16,000 16,000

MR (TD2) 12,500 13,500 14,500 15,500

Source: DNB Markets.

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INDUSTRY - MARKETS

June/July 2012 � TANKEROperator

per day on average.Since the fourth quarter 2011 report, VLCC owners have slowed their

vessels down to 13 knots from an average of 13.8 knots, the bank said,despite a strong increase in rates into 1H12. This just confirmsshipowners’ incentives to slow-steam due to the favourable economics.

“We contend that slow-steaming limits downside risks, while itincreases the upside risk for short term spikes due to the tight marketbalance,” the bank said.

DNB calculated the current effective tanker utilisation at 90% takinginto account a 20% point rise in utilisation as a share of the fleet istrading at an optimal speed. If looking at the utilisation excluding speedoptimisation it would fall to 70%. Historically, about 90% tankerutilisation has been the point in the cycle where freight rates tend toovershoot, as witnessed over the past five months.

With flexibility on the supply side, DNB forecast tanker utilisation toremain at around 90%, as strong rates will be met by higher speeds. Inlight of the artificially tight market balance coupled with the total costof freight representing only 1.2% of the delivered cost of thecommodity, the bank said that volatility will be significant over theyears to come.

The bank said that it expected VLCC rates to range from $50,000 perday down to $10,000 per day, however, due to flexibility on the supplyside, DNB estimated that VLCC rates will be just less than $30,000 perday, on average.

Varying ratesVLCC rates tend to vary significantly depending on whichspeed/consumption assumptions are used in the voyage calculation.DNB’s tanker rate estimate is based on a VLCC forecast where the bankattempted to calculate what owners would actually earn based on slowsteaming and it adopted the voyage calculation by Poten & Partners,which gave the most representative and realistic assumption for astandard vessel.

“We contend that VLCC rates are not just VLCC rates as thedifference between that reported by Clarkson and Baltic Exchange in1Q12 was $12,500 per day. Our supply growth forecast is based onmid-year to mid-year and when taking slow steaming into account, weforecast zero effective supply growth over the next 12 months, 2% in2014 and 1% in 2015,” the report said.

Fleet growth may come in even lower than forecast as around 50 milldwt of the crude tanker fleet has an excess market value of less than $5mill of the scrap value, DNB said.

As for tonne/miles, the bank forecast crude tanker demand of 2.7%for 2012, 2.5% for 2013 and 2.2% for 2014. In its monthly tonne/miledemand model for the VLCC spot market, DNB forecast 29% year onyear growth for the first four months of this year, which partiallyexplains the stronger tanker rates seen in the first half of this year.

A modest 1% year on year increase in distances was seen in 1Q12,while the second quarter pointed towards an 11% year on year increasein the sailing distance. This, on top of the continued strong volumes,could lead to improving tanker rates continuing into the summer.

As for the chemical tanker sector, DNB forecast a market recoveryduring the second half of this year, instead of 2013, as originallyforecast. This is due to a very low orderbook, which equalled 11% whentaking the combined chemical/products market into consideration, or8% when taking into account chemical tankers alone.

The combined fleet growth is forecast at 2.2% this year and 2.4% in2013, while vessel utilisation is forecast at 89.4% for 2012, 90.6% fornext year and 91.9% in 2014, DNB said.

TO

INDUSTRY - UK REPORT


The UK-owned fleet has increasedby some 200%, and the UK-flagfleet – albeit from a very low base– has grown by more than six

times, the UK Chamber of Shipping reported. This turnaround was of major benefit to the

UK economy. Shipping revenue for 2010 (thelatest figures available) stood at £12.6 bill, ofwhich almost £9 bill came from overseastrading. The overall net contribution toBritain’s balance of payments was over £6bill.

Sea transport was fourth in the league tableof service sector export earners, with revenuestotalling £9.6 bill, equivalent to almost 6% ofthe UK’s total. As a headline figure, shippingnow earns just under £1.5 mill every hour ofevery day for the UK economy, the Chambersaid.

In employment terms, the number of newentrant officer trainees in 2009 increased tomore than 950, twice the level in 2000 and thehighest for at least 20 years. The growth intrainee officer recruitment rose twice asquickly as the number of UK-based ships (see).

Shipping, combined with not only majorUK maritime services but the broaderinterests, including shiprepair and marineequipment manufacturing, lay at the heart ofthe £56 bill turnover maritime cluster in thiscountry. There was every reason to expectthat the fleet’s current expansion wouldcontinue in the long term – ensuring that theUK remained Europe’s largest maritime centreand a global leader, the Chamber said.

To be sustained into the future, however,this success needed a stable and competitiveenvironment, not least in fiscal policy. Theadoption of tonnage tax by shippingcompanies was conditional on a 10-yearcommitment to trading and training in theUK.

The Chamber said that this requiredconfidence that the regime would not bemodified without good cause and adequate

notice – and that decisions in other policyareas would not reduce the attractiveness ofbasing shipping businesses in the UK and oftraining British seafarers.

That confidence has been shaken over thelast few years by a sequence of changes andreviews. The 2006 reform of the taxation offinance leases and proposed future changes tothe capital allowances regime broughtuncertainty, which prompted questionsregarding further potential fleet expansion and

investment in the UK. There were also challenges in other policy

areas – for example, the law concerning theemployment of foreign seafarers, currentlyunder consultation. Challenges may alsocome from outside the UK, particularly in theapplication of state-aids policy to tonnage taxby the European Commission.

It is essential that the Government re-establishes a strong focus on ensuring that itssuccessful shipping policy is actively sustained

UK shipping – still aworld leader

Since 2000, the owning and operating ships in the UK has seen considerable growth, as aresult of the Government’s positive policies in favour of investment, training

and the UK register.

UK Shipping turnover by ship type (£ bill). Source - UK CoS

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and that the conditions are right for furthergrowth of shipping operation and employmentin the UK, the Chamber stressed.

UK tonnage taxIn her inaugural speech last March, newChamber president Helen Deeble said that thisyear, the Chamber will be engaging in formalconsultations on the detail of the UK tonnagetax regime, as well as the EuropeanCommission’s consultation on the review of itsstate aid guidelines for the maritime sector.

How shipping will respond to the call toreduce its carbon and sulphur emissions andmeet required national targets, continues todominate, as a key policy area.

On carbon, she said that the Chamber was:� Committed to pursuing a global solution

for shipping on the measurement and reduction of carbon emissions, although it will be a long haul.

� International industry opinion remains divided over which economic measures shipping should use to reduce its carbon emissions and the debate at global level is not yet close to finding a solution.

� The Chamber is doing everything it can to lobby against a regional model, as this would be not be effective in reducing emissions, or work well for European shipping.

On sulphur:� The industry does not believe that

abatement technology will beavailable, or effective in time for the new regulations now less than threeyears away, particularly in an industry where assets may be replaced ona 30-year cycle.

� The industry believes that the increased cost of low sulphur fuel will

threaten short sea shipping and ferry services to and from the UK,causing a modal shift back to roads as longer sea routes becomeuneconomic.

� The report of the Transport Select Committee shows that they share ourconcerns over gold plating by the EuropeanCommission over and above the already exacting MARPOL standards.

Piracy in the Indian Ocean continues tothreaten the lives and wellbeing ofseafarers and the flow of world trade itself. Ithas risen in both political and publicconsciousness this year with increasing mediacoverage, the de-criminalisation of thecarriage of armed guards on board ships and ahigh profile conference on Somalia, called bythe UK Prime Minister.

She said that this year, it will be seen how

development work for Somalia progresses intackling the roots of piracy. The Chamber willalso be closely monitoring the politicalstatements on the payment of ransoms.

The Chamber will work with regulators toimprove standards wherever it can,recognising that it is the skill, training andexperience of the people in the industry thatmake the difference.

While the immediate concern over SMarTfunding for training UK cadets has fallenaway, UK shipping will still have to face up tonational cuts in education funding andcontinue to recruit new talent for the future.

With the current weak employment outlookfor graduates, UK shipping companies shouldbe promoting the opportunity for young peopleto gain a qualification, relevant workexperience and a rewarding maritime career atsea, or ashore, she concluded.

According to statistics providedby the UK Department ofTransport on seafarers for 2011,the key findings were: � In 2011, an estimated 27,000 UK

nationals were working regularly at sea.� About 15,000 held qualifications related

to handling ships or their engines, while the remainder were employed for other technical or customer service duties.

� The total number of UK seafarers active at sea was about 5% higher in 2011 than in 2002, the earliest year for which estimates are available for all groups.

However, the number of these withqualifications relating to ship and engine

handling was 15% lower over the sameperiod. � The estimated number of UK certificated

officers active at sea in 2011 was about 11,000. This was about 28% lower than in1997 after taking into account changes in the certification system and 2% lower than in 2010.

� The average number of officer cadets in training during 2010/11 was 1,820, compared with about 1,000 in 1999/2000.

� The number of UK officer cadet new entrants was 850 in 2010/11 compared with around 500 in 1999/2000 and 754 in 2009/10.

UK DoT Seafarer statisticsTO

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Of these new registrations 12 werenewbuilds, while the remainingseven transferred in from otherflags, the Maritime and

Coastguard Agency (MCA) reported.These new registrations came from a variety

of ship types and owners. The average age ofvessels flagging-in was six years, while theaverage age of vessels leaving the register was20.

As at the end of March 2012, the UKSRstood at 1,461 ships with a gross tonnage of17.8 mill.

The MCA has embarked upon theimplementation of wide ranging business planfor 2012-2016. This covers its entire mandatefrom Port State Control (PSC), UKSR,waterborne leisure activities through to its ownadministration costs.

In the sections likely to affect commercialshipping is a policy statement saying that theMCA will ensure the survey, inspection andcertification capability meets both domesticand international obligations as a flag andcoastal state.

Among the actions started are the making ofoptimum use of MCA surveyors’ time to fulfillthe international commitment in relation toPSC inspections and national obligations inrelation to survey, inspection and certification.

Survey work will be delegated whereappropriate and necessary, the MCA said. Bothstaff and customers will be provided withguidance regarding the implementation ofmaritime safety and environmental policy.

As for PSC, the MCA said that it wouldendeavour to meet the requirements of PSCDirective (2009/16/EC), which entered forceon 1st January 2011. This means theinspection of the required numbers of PriorityI and Priority II vessels to meet the UK’s ‘fairshare’ requirement of PSC inspections in agiven calendar year.

Seafarers will be examined and certificated

in accordance with the relevant Code ofPractice and statutory requirements. Therequirements of the STCW Convention andthe Manila amendments will be implementedthough the transposition of the revised EUDirective on the minimum level of seafarertraining.

Surveys, inspections and audits will beconducted and the appropriate certificates, ordocumentation, issued in accordance withstatutory requirements and to timescales thatare agreed with the clients in advance.

In addition, the work of recognisedorganisations (ROs) through audits and ROoffice inspection visits, will be monitored andfeedback will be provided and UK delegationpolicies confirmed at appropriate meetings.

Commitments under Directive 2009/15 ECfor recognising Lloyd’s Register and ABS willbe honoured by participating in EMSAinspections of these ROs.

The MCA also said that it would maintainISO 9001:2008 certification to ensurecompliance with quality standards required byPSC, flag state and RO directives. In addition,the agency said that it would increase itscustomer base of companies with ISO 9001.

The business delivery model for its surveyorand inspection services will be changed from aregional to a national basis, promoting greaterconsistency and exploring efficiencies in theway that the service is delivered.

UK RegisterTurning to the UKSR, the MCA said that itwill continue to support the shipping industryand will work constructively with owners andoperators to encourage compliance withregularity requirements and will also developpolicies to encourage quality vessels to jointhe UKSR.

Among the actions started is theimplementation of a strategy to make theUKSR the ‘flag of choice’ for quality

operators in specific shipping sectors. In particular, the MCA said that it will

implement a new customer service programmeto promote the flag and support the needs ofowners. This will emphasise business-to-business marketing techniques to existingowners/managers; new owners/managers,including UK-based companies; shipyards;financiers, marine lawyers, cargo brokers andinsurers.

A centralised system will be implementedfor the co-ordination of overseas surveys.Legislation will be amended whereby greaterpowers will be bestowed on the MCA torefuse to accept vessels into the UKSR, whichare not deemed to be in the best interests ofthe UK.

Potential quality customers will be targetedin key locations and sectors of the shippingindustry and the MCA will work with the RedEnsign Group (REG) administrations tomarket the flags as customer focused, qualityorganisations. Proposals were discussed at theREG meeting held on the Isle of Man in May,including the development of marketingopportunities.

As part of the overall plan for the UKSR,the average age of vessels registered should beless than 19 years and a proposal will bedeveloped for a fixed fee structure. To bringthe average age to less than 19 years, very oldhistoric vessels will be segregated and oldervessels will be targeted for inspection.

To lower the regulatory burden for theindustry, the MCA said that it would continueto work with the IMO and Europeanlegislators without compromising safety.

To that end, the MCA will continue toparticipate in the Red Tape challenge, whichaims to cut the overall volume of rules andregulations on the statute book by pursuing arisk-based deregulatory agenda and identifyingthose that can be safely completely, orpartially repealed, or revoked.

MCA embarks onwide rangingbusiness plan

During the first quarter of this year, 19 vessels joined the UK Ship Register (UKSR) witha combined gross tonnage of 102,582.



This will include checks to ensure that thereis no ‘gold plating’ of international standardswithin UK legislation. A work plan will bedeveloped to give effect to the final set ofrecommendations agreed by UK Ministers.

The MCA also agreed to contribute to the‘Moratorium’ of regulations on micro-businesses with fewer than 10 employees fromany new domestic regulation, whereappropriate. The agency also said that it willwork with key industry stakeholders toconsider the need for regulation, reducingexisting burdens on industry and identifyingviable alternatives where appropriate.

Policies and standards will be promoted thatempower shipowners to manage safe andcommercially efficient shipping operations,working closely with stakeholders.

The MCA said that it will ratify and updateinternational conventions and Europeandirectives by their stipulated deadline and noearlier, but without adversely affecting UKbusinesses. Where possible, the agency willencourage the reference to, or the directtransposition of, source text from conventions,or directives rather than the reconstruction as

specific UK provisions. Work on impactassessments and consultation processes willstart earlier in the development of potentialEU and international measures.

Finally, in line with the rest of the UKGovernment, the MCA said that it will reducethe cost of its administration by 33% through arange of measures aimed at: � Increasing efficiency and effectiveness in

the MCA operating model.

� Policy and regulatory development. � Procurement, estate, people and financial

management. � More effective working practices. � By ceasing some low priority activities. In particular, the closer working acrossGovernment Departmental Boundaries will beexplored to maximise the use of availabletalent.

REG is made up from the UK, the CrownDependencies (Isle of Man, Guernsey andJersey) and the UK Overseas Territories(Anguilla, Bermuda, British Virgin Islands,Cayman Islands, Falkland Islands, Gibraltar,Montserrat, St Helena and the Turks &Caicos Islands) which operate shippingregisters from their jurisdiction.Any vessel registered in the UK, a Crown

Dependency or UK Overseas Territory, is a‘British ship’ and is entitled to fly the RedEnsign flag.

The combined REG fleet represents a totalof 50.1 mill gt, which places it as theseventh largest flag state in the world by gt.

The REG recently held a meeting inDouglas, Isle of Man to discuss variousissues of concern. �

The Red Ensign Group (REG)

TO

TANKEROperator conferenceA

� Technology and methods for cost management in tanker operations

� Prime mover optimisation, spending prioritisation, simplifying onboard operations

SAS Radisson, Hamburg September 19 2012

Karl Jeffery, publisher and event organiserTanker Operator Magazine [email protected] 150 5292

Mel SkinnerSponsorship [email protected] +44 777 252272

Making money in a difficult marketMaking money in a difficult market

Contact

Produced in association with

Speakers:Stephan Polomsky, managing director of Offen Tankers (keynote speaker)Ulrich Paulsdorff, managing director, Wallem ShipmanagementMark Bull, loss prevention manager, Liberty One ShipmanagementJose Milhazes, business process manager, Stolt TankersJan Erik Rasanen, business manager, Energy Solutions, ABB MarineDimitris Lyras, director, Lyras Shipping (chair).

Free event - Register now to secure your placewww.tankeroperator.com/hamburg.htm

Improving economic resilience

INDUSTRY - NORWAY REPORT


Oslo ranked secondof the world’s

maritime capitalsA diverse portfolio of owners, managers and service providers, both technical and

commercial, gave Oslo second place in a recent survey of maritime capitals.

Menon Business Economicsrecently performed a snapshotanalysis of the major maritimecapitals, benchmarking 12

cities in four categories – shipowners andshipping operation, maritime finance, maritimelaw and insurance and maritime technologyand competence.

The report said that the top five maritimecapitals were, in order of ranking, Singapore,Oslo, London, Hamburg and Hong Kong.

While a strong player in all of the measuredcategories, in the report, Oslo was shown to bein the top position for maritime finance and onthe commercial side in terms of shipownersand shipping operations.

Sturla Henriksen of the NorwegianShipowners’ Association said, “We don’t viewthis so much as a competition between thedifferent cities but rather as a valuableindicator of the strengths of different areas.We believe that teamwork is key to success inthis very global business – internationalchallenges demand international solutions.Here in Norway, we hope to inspire others andto partner with others. Many Norwegianshipowners are, for example, also located inSingapore, where they have branches andregional headquarters.”

Erik Jakobsen, CEO of Menon BusinessEconomics explained the researchmethodology, “We wanted to use internationalstatistical data that is publicly available tokeep the results as neutral as possible, but atthe same time we recognised that this kind ofdata does not give the full picture on factorssuch as quality. So the analysis is based on a50/50 balance between objective andsubjective input.”

Made up of experts from every continentand from diverse areas of the business, anexpert panel was used to come up with thesubjective indicators in the report. These 28experts delivered results that differ to a degree

from the rankings produced by the statistics,which the report balanced for the final overallranking.

“The mismatch is due to perceptualdifferences resulting from which part of theindustry or which city an expert belongs toand due to the fact that the objective indicatorsare only partial indicators,” said Jakobsen.

Oslo week launchedFrom 30th May to 1st June, about 800maritime professionals gathered in Oslo forthe first-ever Oslo Maritime Week.

The organisers said that the Norwegianmaritime community was out in full force asthe event highlighted the area’s competency ina diverse variety of maritime services, such asinsurance, finance, design etc.

The Norwegian Shipowners’ Association’sTrond Kleivdal set the tone at the OpeningConference, saying, “Norway is the centre ofgravity in the global maritime community.”

Key international speakers, such as theMaritime Port Authority of Singapore’s TanBeng Tee, were also part of the event.Demonstrating the collaboration that existsbetween Norway and Singapore, she said,“We’ve made a lot of friends (in Norway) overthe years.”

Those taking part included the NorwegianShipowners’ Association, Skuld, YoungShip,Norwegian Shipbrokers’ Association, OsloShipowners’ Association, Bulkforum,Maritim21, DNV, BI Norwegian School ofManagement and Kongsberg Maritime, plusmany others.

Taking place every second year, OsloMaritime Week will alternate with Nor-Shipping.

As a top maritime capital, Oslo, with itsinternationally leading maritime servicessector, is a natural location for such an eventto take place, the organisers said. Oslo’sintegrated role in the complete Norwegian

maritime cluster also ensures access to keymaritime hubs, such as Bergen and Ålesund.

“The Oslo region has all segments of theshipping industry. Shipowners and operatorscan come to Oslo to get a ship designed,financed, classified, insured, chartered andmanaged,” said Odd Torset, who heads upOslo Maritime Week.

Torset added, “What is unique about OsloMaritime Week is that it provides anopportunity for the diverse Norwegianmaritime services industry to gather in oneplace. Having these key players all togetherthen makes the event naturally relevant to theirinternational colleagues.”

Nor-Shipping Director Vidar Pederstad said,“As part of our efforts to expand our supportof the industry, we are actively involved as akey Oslo Maritime Week collaborator. Thepowerful momentum created in the Osloregion by having both Nor-Shipping and OsloMaritime Week in alternate years will enhancethe international profile of the Oslo region andthe Norwegian maritime cluster as a whole.”

Nor-Shipping director Vidar Pederstad.

TO



The class society said that its taskwas to analyse the varioustechnology choices available to theshipping industry and how they

would be adopted. Rather than producingqualitative statements about how the globalfleet will absorb different types oftechnologies towards 2020, DNV developed alarge-scale simulation model to help answerthese and other questions.

The model predicted technology uptake inthe world fleet by simulating investmentdecisions, or individual ships given differentscenarios on regulatory requirements, worldeconomic growth and future fuel prices. Theresults reflected the response of individualowners with varying investment preferencesand technology costs. Other important factorswere learning effects and fuel price volatility.

Based on a most likely scenario approachfor 2020, the project has identified five keyfindings, highlighting important considerationsfor shipowners and operators in the periodleading up to 2020. The complete set offindings will be outlined in the final report.

However, DNV has given the industry apreview of five key findings analysed at lengthin the full report.

Finding 1: Summary - 30% of newbuildingswill be delivered with gas engines in 2020.

In DNV’s most likely scenario, the classsociety predicted a liquefied natural gas(LNG) price prevailing of some 30% lowerthan that of heavy fuel oil (HFO). In this case,DNV predicted that 1,000 newbuildings willbe delivered with gas engines over the nextnine years – around 10-15% of the expectednewbuildings.

These vessels will have either a pure gasengine, or a dual-fuel engine with theadditional flexibility to run on liquid fuel.

The global sulphur limit assumed to be

effective from 2020 will have a significantimpact on the implementation of gas enginesprovided the capacity and fuel supply are inplace.

In 2018-2020, about 30% of newbuildingswill be delivered with gas engines. Largervessels will see greater benefits from runningon gas than smaller vessels due to economiesof scale in installation and the sheer amount offuel used by these ships, DNV said.

Finding 2: Summary – In 2020, the demandfor marine distillates will be around 200-250mill tonnes

The current global demand for marinedistillates is about 30 mill tones annually. InDNV’s most likely scenario, the 0.1% limit inECAs will increase the demand to around 45mill tonnes towards 2015.

However, the big increase will be in 2020,with the introduction of the global sulphurlimit. This marks a huge increase in the need

for distillates to 200-250 mill tonnes.In the short term, the use of LNG and

scrubbers will only have a limited impact onthe need for low sulphur fuel. DNV estimatedthat the demand for LNG will be 10-15 milltonnes in 2020, which is about 2-3% of thetotal LNG consumption in the EU in 2011.

At the same time, the consumption of HFOwill plummet from about 290 mill tonnes in2019 to only 80-110 mill tonnes in 2020.

Finding 3: Summary – In 2020newbuildings will emit up to 30% less CO2than today’s ships, and the Energy EfficiencyDesign Index (EEDI) will be the driver fortwo thirds of this reduction.

In DNV’s most likely scenario,environmentally efficient designs willgradually improve throughout this decade anda newbuilding contracted in 2020 will,depending on type, emit 10-30% less CO2than a current but modern ship.

DNV looks into itsenergy saving crystal

ball to 2020Leading Oslo-based class society DNV has published a summary in advance of an

ambitious report analysing the likely emissions reduction and energy savingtechnology used by the world’s fleet in 2020.

Shipowners and operators are being faced with difficult choices. Source - DNV.

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The largest reduction will be on tankers,bulkers and container vessels, while offshoreunits only will reduce emissions by 10%. Thelatter are not included in the EEDI regulations.

One third of this reduction will be motivatedby cost-efficiency only and would beimplemented regardless of the EEDIrequirements. EEDI will be an importantdriver for the remaining reductions, inparticular from 2020 when Phase 2 of theEEDI kicks in, requiring new ships to be 20%below the IMO reference lines.

Until 2020, the EEDI is not expected to leadto any significant extra costs for shipowners.The necessary measures have a relatively lowcapital cost. However, speed reduction mayintroduce added commercial costs.

In 2020, more measures will have to beimplemented and the cost will increasesharply. Gas fuelled engines will become animportant feature, also because they haveadditional benefits of easily meeting NOx andSOx requirements.

Finding 4: Summary - LNG becomes acost-efficient option for vessels spending morethan 30% of their sailing time in ECAs.

When the 0.1% sulphur limit is enforced inNorth America and Northern Europe in 2015,about 40% of the world fleet will be affected.

Again in DNV’s most likely scenario, it ispredicted that large deepsea ships primarilytransiting the ECA areas to get in and out ofport will only be impacted to some degree.However, smaller tankers and general cargocarriers, which may spend all their time in anECA will be significantly affected.

The threshold for LNG being a cost-effective compliance option is when a vesselspends about a third of its sailing time in anECA. An even lower LNG price can reducethe time spent in an ECA to 20%.

Finding 5: Summary - Scrubbers are not asignificant option before 2020.

In the most likely scenario, DNV predictedthat scrubbers will have limited uptake -around 200 installations per year only - untilthe global sulphur limit is enforced in 2020.

The main reason for this is that a low LNGprice compared to HFO favours investing ingas engines rather than in scrubbers. Anotherpointer is that there is a limited proportion ofthe global fleet spending enough time in ECAsto justify a costly retrofit.

The relative HFO/LNG price is an importantparameter with this issue, however. The morefavourable the price of LNG is to HFO, thefewer vessels will be delivered with scrubbers.

The relative difference between MGO andHFO seems to be of less importance to theuptake of scrubbers, as long as MGO is more

than 50% more expensive than HFO. This canbe interpreted as scrubbers being a substituteto LNG.

After 2020, when the global sulphur limitenters into force the picture changes: Ships arerequired to run on low sulphur fuel, or cleanthe exhaust all the time. Scrubbers may thenpotentially be fitted to several thousand ships.

As this is a new a relatively immaturetechnology for marine use, there aresignificant uncertainties, particularly on costsand expected cost reductions, due to learningeffects, which are high in the initial stages oftechnology innovation.

Novel technologies are notoriously hard topredict, DNV warned.

The class society said that it used a six-stepprocess to come to the above conclusions.

1st Step: Megatrends andexternal drivers.

The project started out by identifyingmegatrends and drivers for internationalshipping. These were summarised in whatDNV perceived to be the four most importantareas that will affect the technology uptake inthe world fleet towards 2020.

The following four megatrends and driverswere selected:(i) The world economy and demand

for transport.(ii) Environmental regulations.(iii) Technology trends.(iv) Fuel trends.DNV then assessed the impact of these trendsand drivers on the selected markets – totalling13 different shipping segments - within themajor shipping markets; tanker, bulker,containership and offshore supply vessels.

2nd Step: Future scenarios.

Based on these assessments, DNV developedfuture scenarios. These scenarios describe fourpossible futures, depending on how the driversand trends develop towards 2020. Bothoptimistic and more pessimistic developmentoutlooks were considered.

Together with key industry players, the classsociety identified the most significantuncertainties for international shipping for theyears to come. Using its findings, DNV choseto base the scenarios on the following twouncertainties:(i) Economic growth (and implicitly fuel

prices, as well as fleet development assumptions).

(ii) Regulatory pressure.The scenario approach gives a range ofpossible outcomes and allows the implicationsof these outcomes to be considered. AlthoughDNV has selected what it finds to be the mostlikely scenario as the basis for the findings inthis executive summary, the final report willinclude a thorough discussion on otherscenarios and possibilities.

3rd Step: World fleet.In the project, DNV assessed the current andprojected world fleet based on SAI data. Thecalculations covered the current number ofvessels within the 13 segments considered inthis report – close to 50,000 ships in 2012, aswell as projected newbuildings and scrappingrates towards 2020.

As part of this project, DNV conducted asurvey among the world’s leading shippingcompanies in March 2012. The results wereused to quantify and/or qualify some importantassumptions that were made in the modellingpart of this report.

DNV said that it had thus taken the pulse ofthe industry with regard to which technologies

Source - DNV.



the shipping industry is most likely toimplement on its own vessels.

A different distinction was made betweenretrofits and newbuildings.

Important parameters used in the modellingwork have included shipowners’ investmenthorizons and required rates of return. Theirshare of the fuel expenses will be anotherfactor affecting the investment decisionsmade. Time spent in ECAs was yet anotherimportant parameter, which was included inthe model assumptions.

4th Step: Technology options.Forthcoming regulations will motivate and/orforce shipowners to implement technologiesthat can impact SOx and NOx emissions,ballast water and energy efficiency.

The complete report will present relevanttechnologies that are most likely to succeed insolving these challenges in the future. In total,23 technologies were assessed in quantitativeterms.

The technologies were quantified in termsof:(i) Costs/CAPEX and assumed energy and

emission reduction effect.(ii) Regulatory compliance.(iii) Compatibility and overlapping between

technologies.Some of the technologies have been assessed,but dismissed from the modelling andsimulation work as they are considered to beless cost effective, or too immature at themoment.

DNV has also been forced to make somesimplifications regarding the technologies, asdifferent stakeholders claim different effectsand operational characteristics.

5th Step: Modelling.The assessment of technology uptake wasbased on a stochastic simulation model

developed by DNV using the ExtendSimsoftware.

The approach taken was to simulatenewbuildings and retrofit technology decisionsfor a representative set of ships during thetime period from 2012 to 2020, usingregulatory compliance and economic valueadded as the main decision criteria.

In a simulation run, the model initiallygenerated a sample of individual ships thatwas representative of the operating fleet at theend of 2011. Each ship was assigned specifictechnical characteristics and owner preferencesdrawn from statistical distributionsrepresenting the diversity of the world fleet.

The model then processed each year until2020. Each year, newbuildings were added tothe fleet and older ships were scrapped. Foreach newbuilding, the model simulated thedecision to install one, or more technologies.

In addition, for each year and for eachindividual ship in operation, the modelsimulated the decision to retrofit one, or moretechnologies. The resulting technology uptakefrom a simulation run was as a result of thesedecisions. When a scenario was analysed, alarge number of simulation runs wereundertaken to ascertain the effect of uncertainfuel prices and the costs on technology uptake.

To simulate the decisions for each ship,technologies were ranked in terms of

compliance with the set of relevant regulatoryrequirements and in terms of their net presentvalue. Key drivers included:(i) Simulated fuel prices and investment costs.(ii) Reduced fuel costs (energy consumption

and fuel types).(iii) Time spent per year in an ECA.(iv) Share of annual fuel costs carried by the

owner.(v) Shipowners’ preferences in terms of

economic horizon and required return on investment.

An important feature of the model was that theoutcome of an investment decision was timedependent and may lead to technology lock-ineffects, as well as cascade effects, due to thetechnology adoption.

This was due to: � Simulated fuel prices were uncertain and

time dependent.� Technology decisions may limit available

options for later decisions due to technology incompatibility.

� The cost of a technology is reduced as more and more ships adopt it due to learning effects.

It was assumed that learning would occuracross fleet segments. This meant that theinitial cost reduction compared to the earlyadoption of a technology in one segment maytrigger a cascade of technology adoptionsacross the fleet.

6th Step: Reality check,interpretation and analysis.

As a final step, DNV carried out variousreality checks on the results derived from thesimulation model.

Beyond the obvious quality check ofinput/model/output parameters, sensitivitychecks were run to ensure the correctness ofthe results. DNV also compared the resultswith similar studies undertaken by the classsociety and other reputable organisations.

Discussions and workshops were organisedto assess the likelihood of the simulatedresults.

� Newbuildings in 2020 will emit up to 30% less CO2 than today’s ships - EEDI will be a driver for two-thirds of this reduction.

� 1,000 newbuildings will be delivered with LNG engines towards 2020 -assumes an LNG price that is 30% lower than that of HFO. This represents 10-15% of theexpected newbuildings (tankers, bulk carriers, containerships, offshore supply vessels).

� About 30% of sailing time in ECAs can justify an LNG-fuelled engine. � Distillate fuel is the most likely choice to meet ECA emission requirements -scrubbers not

a significant option before 2020. � In 2020, the demand for marine distillates will be 200-250 mill tonnes.

Shipping 2020 – DNV’s predictions

Source - DNV.



AssumptionsA wide range of assumptions were used in themodelling work, the most important being thefollowing:(i) The world fleet composition was based on

the updated IMO GHG study and IHS Fairplay World Fleet Database. The fleet is divided into 13 segments and includes all cargo carrying vessels, but excludes passenger ships and service vessels – in total almost 50,000 vessels in 2012.

(ii)The volume of newbuildings and scrapped vessels were based on forecasts developed by the Institute of Shipping Analysis (SAI).

(iii)Fuel price trends were based on forecasts by the EIA (US Energy Information Administration) and IEA (International Energy Agency) and analysis undertaken by DNV Research and Innovation. The uncertainty in fuel prices was analysed based on data for historical prices availablefrom the EIA (crude oil and LNG/NG) and

Clarkson (HFO/MGO).(iv)Technology costs were based on a wide

range of sources, from DNV experience data to manufacturers and literature research.

(v)Regulations were based on present and future IMO, regional and national requirements.

(vi)Time spent in an ECA was based on AIS data from Northern Europe and extrapolated to include the North AmericanECA. The ECA estimates were also verified against other similar studies.

(vii)The shipowner’s share of fuel costs and economic preferences were based on a questionnaire by DNV and verified by experience data from relevant projects within DNV.

At a presentation in Athens during Posidonia,DNV’s maritime president Tor Svensen saidthat owners were looking for a payback timeof between three and five years on money

invested on new technology. Addressing concerns over the availability of

LNG as fuel, he said that he was positive onthe development of LNG infrastructure, suchas bunkering stations, as several projects werealready underway.

He thought that the LNG price would de-couple from the oil price and for the report,DNV took the middle ground of around 30%less than HFO.

He also forecast a two-tier marketdeveloping once owners had invested in eco-vessels, which will result in more vesselsentering the market having lower operatingcosts than today’s counterparts.

It was generally thought that chartererswould help drive the introduction of more eco-vessels, as they begin to see theadvantages of lower vessel operating costs,which would impact favourably on their costsof shipping cargoes.

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DNV has unveiled another conceptual designproject, this time involving a Handysize bulkcarrier fitted with existing technologies. One ofthe aims of the designers was not to add costdriving technologies.

Although a bulk carrier, DNV said that this particular conceptualdesign would set a standard, which could be incorporated in othertypes of vessels, including MRs, in the future.

The design – called Green Dolphin – was created by the ShanghaiMerchant Ship Design & Research Institute (SDARI) anddevelopment partners DNV and Wärtsilä.

It was designed to meet all the current and expected air and wateremissions regulations. It is aimed at fuel efficiency and is claimed tobe maintenance friendly with a high operational flexibility.

The hull design was a combined effort by SDARI and DNV andwas conceived to improve overall performance at different loading

conditions, speeds and sea states. Propulsion efficiency will beincreased by the fitting of a wake equalising duct in front of a largediameter, slow rotating propeller. A rudder transition bulb and rudderfins reduce the bulb vortex and recover rotational losses.

It will be fitted with a Wärtsilä 2-stroke low speed RT-flex 50main engine, which will be Tier II compliant. It can easily beretrofitted to dual-fuel in the future. Multiple fuel tanks allow for thestrategic purchasing of HFO, low sulphur fuel and distillates.

“Design variants are available for fuel switching systems,installation of selective catalytic reduction and exhaust gas scrubbingsystems and, in the near future, the use of LNG as fuel,” explainedGiulio Tirelli, Wärtsilä business development manager- ship power.

“The concept design also includes shaft torque and exhaust gasmonitoring equipment to maximise the fuel consumptionoptimisation possibilities while constantly monitoring emissions,” hesaid at the design’s Posidonia launch. �

New concept design launched

TO



Computer-based training (CBT)specialist, Seagull, has beenawarded Norwegian MaritimeAuthority (NMA) approval for a

new, comprehensive ship security trainingpackage that is in full compliance with theManila amendments to the STCW Conventionand Code.

These new security training courses will beavailable during September of this year.

The revised STCW, which came into forcein January 2012, introduces more stringentrequirements for on board security training,with particular provisions designed to ensureseafarers are properly trained in case their shipcomes under attack by pirates.

Seagull has issued more than 10,000 ShipSecurity Officer certificates since 2003 andthese SSO certificates remain in force until 1stJanuary 2017.

Anders Brunvoll, Seagull senior courseinstructor, said: “Getting NMA approval isvery important for us, as we have in the pastissued Ship Security Officer (SSO) certificateson behalf of NMA, the Norwegian flag state.With the new Security On Board trainingsystem we offer three courses and, withcontinued NMA backing, shipowners can beassured that certification through these courseswill demonstrate the proficiency, as well as thecompetency, of their seafarers in securitymatters.”

The new courses have also been certified byclass society DNV through the SeaSkillprogramme. “This was a challenging process,which effectively required us to start againfrom basics and produce security trainingwhich has been fully checked by DNV againstthe revised STCW,” added Brunvoll.

Under the Manila amendments to STCW, allseafarers need approved ship security training,varying according to the level of responsibilityof the seafarer. All seafarers must receivegeneric security awareness and familiarisation

training, while those with specific securityrelated roles need appropriate training for theirrole.

Two training levelsTo ensure compliance, Seagull has developedtwo new CBT training levels - Level 1,covering security-related familiarisation andawareness, for all seafarers and Level 2 forseafarers with designated security duties. Ithas also updated its existing Ship SecurityOfficer (SSO) course, which is the designatedLevel 3 of the Seagull Security On Boardtraining system, in line with the Manilaamendments.

Level 1 includes two e-learning modules;one on security awareness and one on piracyand armed robbery. These are backed up by awork book with practical exercises and asecurity familiarisation checklist. Level 2comprises an on board course for personnelwith security duties, which includes the sametwo e-learning modules on security awareness,and on piracy and armed robbery. This issupported by a workbook with practicalexercises.

Level 3 training will comprise the same twomodules as Level 1 and 2, CBT 115 SecurityAwareness and CBT 156 Piracy and ArmedRobbery, with the addition of a specific SSOelearning module and workbook. This will bedelivered through the CBT 121 Ship SecurityOfficer course.

Brunvoll said: “A key concept of theSeagull Security On Board training is thatseafarers will be able to start at any of thethree levels, depending on their position andduties on board. If required they can theneasily move up to a higher level, withoutrepeating any of the elearning modules theyhave already taken. The training is alsodesigned so that seafarers are more or lessobliged to familiarise themselves with theparticular security requirements of the vesselthey are on and the company employingthem.”

The new NMA-approved Security On Boardtraining courses will be released in the thirdquarter of 2012. In the meantime Seagull’sexisting SSO course remains valid and anycertificates issued based on this course will beinternationally accepted until January 2017.

Seagull securitytraining gets NMAFlag State approval

Here we look at one company, although others are mentioned elsewhere in this issue,notably DNV, Maris and Jotun.

TO

June/July 2012 � TANKEROperator . 21

INDUSTRY – SATCOMS

Satcoms for all!!Satellite-based services have moved on at a considerable pace recently, illustrated by the

number of announcements from various companies at Posidonia.

In this article, we examine the rise ofsatcoms given the increased number ofservices on offer from the satellitecompanies and their various service

suppliers. Much of this growing interest hasbeen driven by crew comfort in an effort toretain seafarers and stop them moving to acompany/vessel offering greater incentives interms of email, internet access etc at little, orno extra cost to themselves.

FleetBroadband and VSAT seem to be themost popular satcoms services withshipowners who seem to be opting fordifferent systems at different levels. Forexample, a communications package that suitsone owner/operator does not necessarily suitanother. This is mainly driven by cost, but isalso obviously dependent on the size of thefleet and the area of operation, etc.

Apart from crew recruitment and retention,another attraction for owners and operators isthe increase in data transfer from ship to shoreand vice versa, as more and more vessels arebeing fitted with technology enabling theofficers and shore management team tomonitor the vessel’s operation. Much of thistraffic is handled by email.

Another is the escalating piracy situation offEast and West Africa, plus the Indian Ocean.For example, Beam Communications, awholly owned subsidiary of World Reach,recently announced separate satcoms piracysolution for Iridium and Inmarsat-based,secure communications on board a vessel.

Beam’s new PotsDOCK Extreme CovertPiracy Solution utilises the Iridium Extremesatellite handset and the Beam Covert Antennasystem to provide a dedicated system for asafe room, or citadel on board a vessel. Thesystem ensures that essential communications

on board the vessel, such as the ability to alertauthorities in the event of a piracy attack, canbe maintained even if all power orcommunication equipment has been cut off ordestroyed by pirates.

The system couples the Iridium Extremehandset and the Beam Extreme PotsDOCK toprovide the Master and crew with access tovoice communications, tracking and alertfunctionality from the system. In the event ofan attack, an alert can be raised and the vesselcan be tracked immediately.

Greg Ewert, Iridium’s executive vicepresident, global distribution channels said; “Itnot only works everywhere off the global,reliable Iridium communications network, butit is specially designed to enable connectivityfor vessels in dangerous situations.”

Ewart told Tanker Operator that ‘panic’buttons can be installed all over a vessel,connected to the system in the citadel and ashort code can be used to contact the Dubai-based UKMTO in case of an attack. Back uppower can also be provided in case of a shutdown.

“Over the past 18 months we have seen anincreasing demand for Beam’s piracy solutionswith the total number deployed getting closeto 500 units,” said Michael Capocchi,managing director, Beam Communications.“Safe and secure communication is extremelyimportant for addressing the growing concernof piracy attacks on both commercial andleisure vessels. Beam specialises in anti-piracycommunication solutions developed for themarine market and are certainly meeting theseneeds.”

The new PotsDOCK Extreme Covert PiracySolution was launched at Posidonia, wherekey Beam partners (AST, Marlink, Otesat

Maritel) were promoting the solution.Initial orders have already been received

and the new piracy solution will be distributedby all the major Beam resellers.

Beam is a strategic manufacturer of bothInmarsat and Iridium satellite products formultiple satellite phone providers.

Turning to the Inmarsat satellite network,Beam’s new Oceana 800 Covert PiracySolution provides a dedicated system for asafe room or citadel on board a vessel. TheBeam-designed antenna is intended for covertplacement and to be less likely to be spottedand targeted prior to an attack, the companyclaimed.

Oceana 800 operates with the InmarsatFleetPhone service. In the event of an attackan alert can be raised and then the vesseltracked immediately.

“As with maritime safety, communicationsduring a piracy situation can literally be alifeline,” said Peter Blackhurst, head ofmaritime safety at Inmarsat. “This solutionfrom Beam is a simple but effective covertdeployment of the Inmarsat FleetPhone servicethat will offer some reassurance to captainsand crews facing the threat of piracy.”

Iridium PilotIn addition, Iridium has launched a new fasterbroadband voice and data communicationssystem– Iridium Pilot. It is claimed to haveenhanced durability to withstand harshconditions and it is compatible with IridiumNEXT and is powered by Iridium OpenPort.

It is claimed to be a fully global operationwith a solid state design with no moving parts.For broadband it claims bi-directional dataspeeds of up to 134 kb per sec. It consists ofthree independent voice lines with separatedata link, all of which operate simultaneously.

The above deck equipment consists of asmall, lightweight, fixed, electronicallysteerable, phased array antenna, claimed to beideal for reducing maintenance costs and formaintaining connectivity.

For large commercial vessel, Iridium saidthat the new system has both Internet andemail access, VPN access to corporatenetworks, VSAT back up, shipboard PBXintegration, crew calling and crew email andInternet use.

Beam’s Inmarsat system can be seen on the left and Iridium’s is pictured on the right.


INDUSTRY – SATCOMS

Iridium currently has a 200 MB promotionprogramme until the end of this year, wherebythe price charged will be the same as for 100MB usage. This service is available for allcurrent and new Iridium Pilot maritimebroadband customers, the company explained.

As for the harsh conditions mentionedearlier, with the growth in the use of theNorthern Sea Route (NSR) across the Arctic,Iridium claims to be the only concern that cancommunicate in this region via satellite.

FleetBroadband popularRival Inmarsat said that 30,000 activeFleetBroadband terminals are now in serviceon vessels worldwide.

This milestone was reached with theinstallation of a FleetBroadband 500 on theOlympic Future, a Greek-flagged Suezmax, byInmarsat’s distribution partner Otesat-Maritel. Springfield Shipping, the vessel’smanagement company, selectedFleetBroadband as part of an integratedcommunications solution.

“This solution is an optimal match for ourICT needs and we are pleased with thecomprehensive service offering and first-classsupport that we have received from Otesat-Maritel,” the company said.

Frank Coles, president of InmarsatMaritime, said: “This is a significantachievement that yet again demonstrates thehigh regard and continued demand forFleetBroadband in the maritime industry. Wehave now seen more than 4,000 terminalsadded to our FleetBroadband installed basesince the beginning of the year.

“Shipowners and managers are attracted tothe global reach and reliability ofFleetBroadband, and they value the highquality service that they receive from Inmarsatand our partners, ” he said.

Otesat-Maritel CEO GeorgePolychronopoulos said: “Otesat-Maritel hasbeen a leading distribution partner forFleetBroadband since its launch, so we aredelighted to have activated the 30,000thterminal and help the service reach this majormilestone.

“Our partnership with Inmarsat has beenvery successful, bringing together thetechnical excellence of Inmarsat services withOtesat-Maritel’s insight into the globalshipping market and our high-quality customerservice,” he said.

At Posidonia, Marlink, claimed to be theworld’s largest maritime communicationsservice provider, presented its re-developedWaveCall standardised VSAT offering.

WaveCall services enable owner and

operators to choose affordable connectivityaccording to different requirements andbudgets, backed-up by Marlink’s multi-tiercustomer and technical support provided byexperienced engineers specialising instandardised and customised maritime VSAT,the company said.

“WaveCall services are already being usedaboard hundreds of maritime transport vesselsglobally and to ensure that we continue tomeet the changing requirements of ourshipping industry customers we have nowlowered the cost of entry even further andintroduced new capabilities in order to provideeven greater choice,” said Tore Morten Olsen,CEO, Marlink.

The new, expanded WaveCall portfolioconsists of two service packages. WaveCalloffers standard connectivity up to 1.5 Mbpsand starts at just $1,000 per month, whileWaveCall™ Premium, which, in addition tooffering up to 3 Mbps broadband connectivity,also offers flexible CIR to enable multiplevoice lines and the capability for businesscritical applications such as VPN, remotemonitoring and telemetry services.

“Regardless of the service chosen, our 25years’ experience in maritime satcoms andability to provide first-line support with ourown engineers and technicians, ensurescustomers can be confident in the availabilityof their communication services,” Olsen said.“Longevity and stability are also vital to ourcustomers and the fact that we own teleportsand are a specialist division within the majorsatellite company, Astrium Services, meansthat we are able to provide this key support.”

“WaveCall gives us highly competitivemaritime connectivity with fixed, low monthlyexpenditure based on the bandwidth andperformance required across our fleet,” saidGunnar Eide, surveyor maritime ICT &automation at Odfjell Ship Management; theleading parcel tanker concern that contractedMarlink to supply WaveCall to 40 vessels inMarch 2012.

“Our WaveCall services from Marlinkenable us to benefit from an easier to use,smarter and more flexible VSAT network. Wehave worked closely with Marlink to ensurewe have the right configuration for our fleetand the deployment process has beenstraightforward. We are able to interactdirectly with Marlink for service and supportand they ensure the service runs to oursatisfaction,” Eide added.

WaveCall is a low-cost of entry service forowners and operators wishing to providestandard office type facilities on board, such asemail and web browsing for seafarers in

addition to operational communication. WaveCall Premium offers the same, with

higher bandwidth and competitive pricing, butalso user-definable CIR and supports vesseland fleet efficiency by enabling the use ofcustom applications, such as those designedfor reducing fuel consumption and emissions,or improving service and maintenanceprocesses.

Commenting on Sealink, Marlink’scustomised services that was traditionally usedon more specialised vessels, the company saidthat with the growth in development ofbandwidth heavy technical IP applications forfleet management and efficiency and highlevels of flexibility required, some moretraditional vessel owners and operators areturning to customised VSAT to fulfill theirrequirements.

Marlink said that it is able to design itsSealink services specifically tailored to acustomer’s needs and feature detailed Qualityof Service guarantees.

“WaveCall standardised VSAT services areadvanced enough to cover the majority ofconnectivity applications for tankers and otherstandard type vessels, but the bandwidth,flexibility and scalability that has helpedSealink become established as the customisedVSAT service of choice for offshore, cruiseand ferry companies may also be relevant tosome maritime transport customers,” Olsen,said.

“The considerable throughput and globalavailability provided by our Sealink servicescan support large, or specialised maritimetransport fleets to ensure crew- and operationalcommunication and technical applications arealways available. Because all of our servicesmay be used by maritime transport customers,we work closely with them to ensure that theyhave the service that best suits their needs,whether based on WaveCall or Sealink.”

FlexibilityOlsen told Tanker Operator that the Ku-bandVSAT system was in his opinion the bestproduct, as it gave users more flexibility andobjectivity. For example, chemical tankeroperator UACC recently opted for a VSATservice from Marlink. Each vessel has around7,000 sensors fitted on board.

He said that in general, satcoms prices wereless that 1% of a vessel’s total operating costsand that a three-month free trial could beoffered. Olsen explained that Marlink had setout to lower the entry barrier by reducingcosts, offering a smaller antenna, thus makingthe fitting of satcoms “less costly and risky forvessel operators”.

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www.thomasgunn.com | +44 (0)1224 595045 | [email protected]

•Admiralty Vector Chart Service updates

•Admiralty Raster Chart Service updates

•Admiralty Digital Publication updates

•Admiralty BA NMs and Tracings update

• Digital loose leaf service

• UK M-Notices

• GIS Catalogue

• Route planning

• Vessel holdings management

• ENC Display

• Shipping Guides Findaport.com

• Regs4ships

•Admiralty information overlay

• Weather routeing (SPOS)

• Touch screen technology

•AtoBviaC

• Piracy data

INDUSTRY - SATCOMS


He agreed that satcoms were becomingmore influential in monitoring vesseloperational efficiency when machine-to-machine type data can be sent from ship-to-shore for remote support and monitoringpurposes.

Another vessel operator to take advantage ofMarlink’s offering was Maersk. The Danishgiant has installed Inmarsat FleetBroadbandthrough Marlink on 400 vessels, includingtankers. This contract included a definedvolume at fixed cost.

At Posidonia, Globe Wireless said that itlatest software R6 for Globe iFusion will belaunched in July 2012 and will be upgradedfree to all existing users.

The software will feature the followingenhancements: a fixed-multiple voice solutionfor FleetBroadband, VSAT auto-recovery toolsand a pre-paid/sponsored email solution.

R6 for Globe iFusion takes the existingGlobeMobile multiple voice lines, currently onover 1,000 FleetBroadband vessels, using it asa VoIP solution. This enables multiple callsusing Globe’s digital quality voice (DQV)technology on both the GSM and VoIP phonesover a standard FleetBroadband terminal.

The fixed-multiple voice solution allows upto five inbound and outbound calls over DQV,while the standard circuit switched voice lineremains free at all time for the Master’s use, orfor emergencies.

One of key features of the fixed-multiplevoice solution is the ability to assigninternational phone numbers from over 60countries to each phone line on board, thusreducing the cost to call the ship from shore asno 870 number is required.

Customers who have offices in the UK,Singapore, Italy, etc, can have a local in-country number that will be routed to thevessel and rate charged will be the same rate

as if they were making the call from ship toshore. The new software will support up toeight VoIP handsets on board the vessel andPOTs handset plugged directly into the i250.

Each handset is configured from the shorevia Globe iPortal allowing a simple name tobe assigned, an international inbound numberif requested, PIN codes to restrict outboundcalls and split billing for sub-accounts. PINscan be created as needed either fleet wide, orper ship. Even pre-pay PINS may be used thatare independent or tied to a GlobeMobileGSM account. In the case of a charteredvessel, the charterer would have a unique PINand all calls will be billed under a sub-accountin the customers invoice each month.

R6 for Globe iFusion also containsadditional VSAT features developed to keepVSAT terminals online, requiring less backupL-Band usage. Automated scripts monitor theVSAT system and will attempt to auto-recoverit with no intervention by technicians or crew.If auto-recovery does not work, the GlobeiFusion, via L-Band backup, allows the GlobeWireless VSAT technician remote access to allthe core components and systems on board.

“This new feature assures the customer thatover 95% of all outages are recoveredremotely. We have found that for every onevessel that does require a visit another 20-25vessels are brought back online remotely,saving the customer thousands of dollars permonth.” said Brad Rogers, director VSATengineering.

“With our live monitoring, typically withinone hour of any outage, our engineers arealready online checking the system andcoverage. If there is an issue, most vessels arerecovered within 15 minutes after remotelyaccessing the vessel,” he said.

R6 for Globe iFusion will also include apre-paid and sponsored email solution thatcustomers have been asking for. Via GlobeiPortal customers will be able to set upsponsored monthly quotas with message sizelimits, allowing the customer to control howmuch, sponsored email the crew can use.These settings can be configured fleetwide, orspecific for each crew member allowingofficers more usage for example, or as a bonusfor good work.

The pre-paid account can be tied to the crewmembers GlobeMobile GSM account allowingthem to share the pre-paid balance betweenGSM calls, pre-paid fixed-multiple voice,email and SMS. Crew members will be ableto pick up any fixed-multiple voice handsets,enter a PIN and password and pay the samerate as the GlobeMobile service. If a crewmember has a GlobeMobile number and uses a

fixed-multiple voice line, the end user onshore will see the GlobeMobile number on hisor her phone as the caller ID rather than thevessels phone number. If there is noGlobeMobile number associated with the crewmember then no number is displayed. Thesefeatures will be available on VSAT andFleetBroadband terminals.

David Kagan, president Globe Wirelesssaid. “We are providing unique voicesolutions, going far beyond what ourcompetition offers, as well as great VSATenhancements that have never been seenbefore in the market. This is just the start ofseveral new updates and features we haveplanned for Globe iFusion® and ourcustomers in the coming months.”

The new software is due to be launched inthe Philippines, go live at the end of thismonth and in full production during July.iFusion has already been installed on around750 vessels, which will get a free upgrade.

AntennasIntellian chose Posidonia to show its newVSAT communications technology.

The company unveiled the new Intellianv110GX 3-Axis Ku-Band VSATcommunications antenna with fully optimisedKu-/Ka- band antenna reflector and radome,enhanced to meet the RF performance andcapability required for the future.

The 1 m v110GX was designed from theground up to provide services for both currentKu-band services, as well as Inmarsat’supcoming Global Xpress service. The modularGX conversion kit includes the GX BUC/LNBassembly, GX feed assembly and GX ACUincorporating the modem.

The antenna’s functionality will easilytransform into GX high throughput broadbandservice globally when Inmarsat’s I-5 Ka-bandsatellites become operational in 2014, thecompany claimed.

Intellian’s new generation gyro-free satellitesearch function enables the v110GX to acquireand lock onto the satellite without requiringseparate input from the ship’s gyro-compass.The 3-Axis stabilised pedestal assembly offersunlimited azimuth, enhanced elevation rangeand cross-level to ensure service quality evenat high latitudes and extreme operatingconditions, the company said.

All Intellian antenna systems are designed,manufactured and tested to withstand thecompany’s standards for vibration and extremeshock in all sea states and weather conditions.The v110GX VSAT antenna system meetsDNV Standard No.2.4, Class C and MIL-STD-167-1A specifications. VSAT and 3-axis

Marlink’s CEO Tore Morten Olsen.

INDUSTRY - SATCOMS


TVRO warranties are now increased to twoyears for parts and one year for labour.

Intellian has also appointed Otesat-Maritelas a distributor and will include the company’sfull range of VSAT and TVRO antennas in itsequipment portfolio.

In addition, Otesat-Maritel will becommissioned as an Intellian service centre forSoutheastern Europe, Middle East, and Africa,the companies announced.

Imtech Marine and ITC Global haveentered into a long-term strategic alliance toprovide a maritime VSAT satcoms network.

Under the alliance, Imtech Marine willsupply, install and service shipboard maritimeelectronics and communications systems. ITCGlobal will design, supply and provideengineering support for the global satcomsnetwork.

Imtech Marine and ITC Global havedeveloped a global VSAT network that isclaimed to deliver a reliable satellitecommunications to the maritimeindustry. This network, the Imtech Marineglobal VSAT/Ku-band network, has automaticbeam switching along all of the majorshipping lanes.

Eric van den Adel, managing director ofImtech Marine, said: “Imtech Marine has anextensive global network and vast knowledgeand experience in the maritime market. ITCGlobal has extensive knowledge in setting upprivate, customised VSAT networks. Togetherwe are able to offer our customers in themaritime market unparalleled service andsystems.

“Our alliance with ITC Global means thatour maritime customers get the benefits ofhaving automatic beam switching andseamless connectivity for their vessels acrossthe globe. Connectivity packages are just oneof our global services. We also have thepossibilities to carry out remote monitoringand maintenance through our global technicalassistance centres, which are available aroundthe clock. In addition, our portfolio ofservices is supported by our global network,which now consists of 89 locations worldwide.Ultimately, all of our services aim to helpcustomers reduce their total cost ofownership,” he concluded.

Joe Spytek, CEO of ITC Global, said: “Weare delighted to have formalised our historicalworking relationship with Imtech Marine. Ourexpertise in building private, custom networkswill be highly complementary to ImtechMarine’s portfolio of shipboard services. Weappreciate the trust that Imtech Marine has putwith ITC Global, and look forward to continueworking together in the maritime industry.”

Turning briefly to satnavs in the shape ofECDIS, Thomas Gunn will offer Transas’Navi-Sailor 4000 ECDIS in the company’stotal navigation solution, while Transas will inturn offer Thomas Gunn’s paper chartmanagement service.

The latter includes Admiralty andinternational hydrographic office’s papercharts and publications as part of its ECDISpackage. The corrections and updates arenormally sent out by email compressed byabout 60%.

In addition to offering the Transas ECDIS,Thomas Gunn will also be able to benefit froma comprehensive service network throughmost of the major ports worldwide. Thecompany will also supply the TransasAdmiralty Data Service (TADS), includingofficial ENCs, SENCs, AVCS, ADP, and T&PNotices to Mariners.

Thomas Gunn is about to release itsVoyager 4 service package and said thatcurrently around 4,000 ECDIS were at sea.Around 2,000 vessels are currently using theVoyager service.

Performance standardsOn the eve of its latest product launch,maritime electronic navigation specialistMARIS has moved to reconfirm that itsECDIS solutions meet performance standardsset out by the International HydrographicBureau.

MARIS is due to launch its ECDIS900version 4.5.4.76 this month, with all of itsdistributors set to be notified when thesoftware is released so that they can down-load software from MARIS ftp-servers.

IHO has long expressed concern that someECDIS may not display certain combinationsof chart features and attributes correctly andon rare occasions may fail to display anavigationally significant feature. Accordingto IHO, “This appears to be caused byanomalous behaviour in some ECDIS

software, especially early versions.” In the run up to the launch of its 4.5.4.76

system, MARIS has responded directly to alatest IHO circular, issued in February andaddressed to hydrographers, which makesexplicit the intergovernmental body’sunderstanding of the scale of the problem.

The circular, ‘Update Report on IHO Actionconcerning ECDIS Software Issues’, signed byIHB director Robert Ward, cites an IHO ENCdata presentation and performance checkwhose findings were submitted to the IMOMaritime Safety Committee (MSC) in May.

IHO said that it had checked theperformance of systems from 15 out of 25recognised manufacturers of type-approvedECDIS, many of which included the mostwell-known brands in the industry. It reportedthat only one third of the systems scrutinisedfunctioned as expected.

MARIS technical director, Philippe Kah,said that it had been deemed critical that thecompany took swift action to ensure that itssoftware was acknowledged as meeting thestandards being set for ECDIS by the IHO,given that mandatory ECDIS will be phased inacross the industry from July, 2012.

“As part of the consultation process betweenIHO and ECDIS manufacturers, we have putour systems through the stringent tests set bythe IHO and submitted our report to them,along with the test support documentation andscreen dumps required in the latest circular,”he said. “The previous generation ECDIS900did not match the exhaustive criteria set out inthe IHO report in four minor areas, none ofthem critical, but we have been able to adviseour distributors that the new ECDIS900V4.5.4.76 is fully compliant with IHO tests.”

In its latest reports, IHO concluded that upto one third of systems failed to display somesignificant underwater features in the‘standard’ display mode. In a further third ofcases, the underwater isolated danger symbolwas not always used.

Transas’ Lars Wellerstedt (left) seen with Thomas Gunn (right) at Posidonia.

TO


INDUSTRY - PIRACY

Pirate swarm attacksare a myth - Risk

IntelligenceEvery summer shipping companies are warned about large swarms of pirate boats

off the Horn of Africa – mainly in the Southern Red Sea and the Bab el Mandeb (BAM) Strait.

The warnings are based on reportsfrom ships in the area and put outby both security companies andgovernments. The only problem is

that pirate swarms do not exist, according tothe Danish intelligence company RiskIntelligence.

“We have monitored these rather panickyreports since at least 2008, when a EuropeanNaval vessel reported swarms of up to 20pirate skiffs. But it is a misunderstandingevery year. The phenomenon can beunderstood and described as something elseevery time it is reported,” said Nis LeerskovMathiesen, chief analyst with RiskIntelligence.

The swarm attack reports always emergewhen the monsoon brings rough weather tolarge areas of the Arabian Sea and IndianOcean. The rough seas result in small boattraffic moving to more sheltered waters, mostsignificantly fishermen and smugglers. Boththese groups use small boats similar to thoseof the pirates. And both groups manoeuvre insuch a way that they that can frighten a masterof a merchant vessel.

Fishermen will move at high speed towardsmerchant vessels, either to protect their nets,or to benefit from the wake and wash of aship. Smugglers are often ‘jumping’ from shipto ship at high speed to stay hidden from radarsurveillance. Pirates are sometimes present inthe area as well. They hide in larger groups ofboats. They then attack and lookouts confusebackground traffic with pirate accomplices.

Fear mongering“We have never seen any proof that an attackis carried out by more than a small handful ofskiffs. So the repeated reports of 10 and 20strong ‘swarms’ is a question of wrongobservation in the heat of the battle and short-sighted analysis by those who put out thewarnings. The effect is fear mongering,”

claimed Mathiesen.To assess the reports and analysis of swarm

tactics as a new phenomenon, first we shouldlook at the reports themselves, then establishwhat the normal situation in the areas is, andfinally assess the tactical advantages anddrawbacks of such an attack style and to whatextent it would suit the Somali pirate modusoperandi, Risk Intelligence said.

It is worth repeating that the reports ofswarming attacks increase particularly in themonsoon seasons, with an emphasis on thesouth-west monsoon (June to September).During this period, Somali pirates are pushedout of the eastern Gulf of Aden, Arabian Seaand Indian Ocean by the high waves andstrong winds. Those pirates who can reach theRed Sea and BAM thus increase their effortsin the area. These are probably mainly thePuntland-based pirates and the currentlyinactive Sool-based Warsangeli clan pirates,for whom BAM is next door, the companyexplained.

Thus, the pirate activity in this area iscomparatively higher than in the transitionalseasons. Two-thirds of all incidents involvingfour or more skiffs in the area as recorded inMaRisk were reported during the south-westmonsoon months.

The lack of quality information alreadymentioned is further aggravated by thereporting body’s editing and omission ofdetail, especially notable when the reporting

body is not ‘at home’ in the Horn of Africaarea and fails to understand the importance ofsuch detail for assessing the highly dynamicSomali piracy situation.

Organisations with local specialisation suchas UKMTO, NATO’s operation ‘Ocean Shield’or EUNAVFOR ‘Atalanta’ attempt to weedout many reports, which they judge as lacking

credence. Evidence suggests that outsideanalysts and many security providers lack an understanding of what constitutes theeveryday activity in the sea area, RiskIntelligence said.

Risk Intelligence provides consultingservices to private and governmental clients onsecurity threats and risks.

The company has been specialising inanalysing threats from and interaction betweenpiracy, organised crime, terrorism, insurgencyand military conflicts since 2003.

It advises on preventing maritime securityincidents at both vessel and company level, aswell as providing maritime security analysis toprivate and governmental organisations.

Risk Intelligence takes a holistic approachto these threats and includes studies into thetypes of organisations and tactics, as well asthe root causes of their existence.

The company said it believed that athorough understanding of the threats incombination with insight into the clients'needs enables it to produce high-quality threatand risk assessments and consulting. TO

Yemeni fishing vessels deploying their nets in Southern Red Sea (Nato 2011).

INDUSTRY - PIRACY


In April, the Security Association for theMaritime Industry (SAMI) announcedthe first companies to successfully passthrough the initial stage of its

international private maritime securitycompany (PMSC) accreditation programme.

The three companies, which volunteered toact as a pilot group, were MIRIS International,Securewest International and Spirit SecurityServices.

Each company underwent a stringent duediligence check during Stage 1 of the SAMIprogramme. The checks applied to a range ofdifferent areas of the company’s operations, toensure compliance with a range of minimumstandards.

The checks are in line with guidelinesissued by the IMO and ensure that legal,compliance and quality issues have beenadequately addressed.

Later in the same month, IMSA joined a listof companies which have all undergonestringent due diligence checks during Stage 1of the SAMI programme.

The company volunteered to join the pilotprogramme to be checked against the SAMIStandard, the company was then checked byan independent third party organisation,National Security Inspectorate (NSI).

Following this, Ambrey Risk, Control Risks,Solace Global Maritime and Special TacticalServices LLC all passed through the initialstage of SAMI’s international private maritimesecurity company (PMSC) accreditationprogramme.

Cook said; “The fact that companies arenow accredited vindicates the work in settingthe standard and the mechanism and willincreasingly provide shipowners with thereassurance they need when contracting with asecurity provider.”

Eight companiesAmbrey Risk said that it was one of only eightcompanies to successfully gain the Stage 1accreditation. Some 40 concerns were selected

to apply for accreditation in the pilot scheme.Ambrey Risk commercial director, Shaun

Webber, said: “This is a sure step in the rightdirection by the maritime security industry andproves our commitment towards greaterregulation and compliance. This is somethingwe take very seriously and being one of thefirst eight companies to compete Stage 1accreditation shows we are a mature companyand have the necessary business processes andpractices in place providing our clients theassurance that they are engaging with arespected company employing a high level ofprofessional and ethical standards.”

The accreditation programme was launchedon 1st February this year and will seemaritime security providers, within theSAMI’s membership undergo a three-stageprocess of due diligence, systems checks andsite visits.

The programme is managed by SAMI, withaccreditations performed by an independentthird party certification body, the NationalSecurity Inspectorate (NSI).

Work on developing the standards andaccreditation programme had been ongoing forthe previous eight months, prior to its launch.Further guidelines under development as laiddown by industry and the IMO, theprogramme will assess the capabilities,experience, corporate standing and resourcesof PMSCs.

According to Cook, speaking at theFebruary launch; “It has been no mean feat toforge a united front from an industry, whichhas always followed its own path. We arepleased and proud to announce the launch ofwhat we believe to be a rigorous andsignificant means of assessing global maritimesecurity providers.”

The developments were led by SAMI andsupported by NSI who have been conducting apilot scheme that successfully concluded inJanuary 2012.

The three stages of the SAMI AccreditationProgramme build to form a full and complete

picture of the subject company. Stage 1 is adue diligence check, which focuses on thefinancial, legal and insurance elements of thePMSC. Stage 2 is an in-depth review of thecompany and involves a physical verificationof their premises, systems and documentation.While Stage 3 will see checks on deployedoperations.

During the development of the ProgrammeSAMI has worked in consultation with a rangeof leading marine insurers, flag states,shipping associations, seafarer welfareorganisations and with vital input from themaritime security industry.

InsuranceMeanwhile, security concern Sea Marshalsbecame the first company to gain an insurancepolicy, which complied with the requirementslaid down in BIMCO’s Guardcon contract.

Launched in March 2012, Guardconprovides an industry standard contract for theemployment of security guards on ships. Inparticular. it addresses concerns over therelationship between the Master and the headof the security team on board a vessel.

Sea Marshals signed documents for thepolicy at the end of March to ensure it wasalready in compliance with Guardcon beforeits industry launch.

Thomas Jakobsson, chief of operations forSea Marshals said: “Sea Marshals has workedhard to make sure we comply with Guardcon.Guardcon gives the whole industry a standardcontract when using guards on board ships. Itspecifies many things that a security providerhas to live up to and has set a minimumstandard for insurance.

“This ‘minimum standard’ is much higherthan most security providers currently offerbut we are pleased to have secured insuranceto make sure that we comply with all theregulations in the new Guardcon contract from the very first day,” he said.

SAMI’s accreditationprogramme up

and runningThus far eight companies have passed Stage 1.

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INDUSTRY - PIRACY


New MozambiqueChannel route

opposedThe International Chamber of Shipping (ICS) has opposed a new recommended route

for all ships through the Mozambique Channel.

At a meeting of the IMO’s Sub-Committee on Safety ofNavigation (held 2nd- 6th July) inLondon, the ICS opposed a move

to establish a new recommended route for allships in the Mozambique Channel that wouldbe around 1,000 miles long.

This proposal was made by Comoros,France, Madagascar, Mauritius, Mozambique,the Seychelles, South Africa and Tanzania,

having been given impetus by studiesconducted by the World Bank.

ICS director marine, John Murray said:“ICS is very concerned with this proposal fora new recommended route in internationalwaters, which will result in all vesselsfollowing the same proposed track.

“This will increase the risk of collision tothe hundreds of ships that would be using thescheme at any one time, particularly given the

current lack of Vessel Traffic Services in theregion. The concept could also set anunwelcome precedent for the management ofdeepsea navigation elsewhere and will requirevery careful consideration by IMO.

“The compelling need for this proposedmeasure remains clear and no statisticalevidence has been provided regarding shippingcasualties, or near misses in the MozambiqueChannel. This omission makes it particularly

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INDUSTRY - PIRACY

There are three levels - all crewwill have to undergo ‘SecurityAwareness’ training, as part oftheir basic training; those withspecific security duties willundergo additional training whileShips Security Officers (SSOs)will have training much as it isnow, explained Sean O’Keeffe,managing director of The-Training-Wing. He explained that The-Training-Wing recruitstraining staff based on their experience,qualifications and desire to develop students.The security instructors are recruited fromextensive military backgrounds and possess avast knowledge of both hostile andcommercial security.

“This experience enables The-Training-Wing to deliver all aspects of security trainingto the highest of standards. It is these

principles that have enabled us to grow rapidlyyet still offer professional and affordableservices that can be always tailored to theneeds of our respective students and clientsalike,” O’Keeffe claimed.The company is approved to conduct thefollowing training on a global basis:� Ships Security Officer (SSO).� Company Security Officer.� STCW 95 (4 Basic).� Security awareness training.� Port facility Security Officer. In addition, the following training is offered -� Static guard force security. � Anti-piracy.� Force protection.� Hostile environment. � Terrorism and the threats posed. � Counter abduction/kidnapping.Instructors can be deployed worldwide at shortnotice, the company claimed.

STCW amendments mean securitytraining

Armed guards have permissionto fire first to fend off Somalipirates, under new guidanceissued to UK-flagged ships.

UK Foreign Office minister HenryBellingham said the new advice was clearerthan earlier versions and was intended to

give security teams instructions on whenthey can act.

Bellingham told MPs: “The starting pointmust be our current common and statute law– which is pretty clear on what you can andcannot do.” �

UK says fire first

difficult to quantify the anticipated benefit thatthe proposal would deliver,” he said.

It has been advised that the main aim of theproposal was to reduce the risk of collisionand grounding in the Mozambique Channel.However, despite vessels favouring certainroutes, shipping currently is free to use theentire width of the Channel, which is ininternational waters.

The proposed measure would seek toconcentrate shipping into very restricted lanes

and could potentially increase the risk ofcollision, the ICS stressed.

Wide channelEven at its narrowest point, the MozambiqueChannel is over 200 miles wide and todaymany ships make use of this width to keepwell away from the routes used by transitingtankers and similar vessels.

“Piracy of course is a major problem in thisregion, and the implications to safety and

security of introducing such a routingmeasure, in effect bunching ships together asthey enter a high risk area, have also not beenaddressed by its supporters,” Murray said.

The ICS co-ordinated with its membernational shipowners’ associations to ensurethat governments attending the IMO meetingquestioned the proposal for such a routingmeasure in the Mozambique Channel.

Piracy of course is a major problem in this region, and theimplications to safety and security of introducing such a routing

measure, in effect bunching ships together as they enter a high riskarea, have also not been addressed by its supporters,

“

”- John Murray, ICS Director Marine

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Quantico Maritime Solutions (QMS) hasclaimed to have developed a single structurefor dealing with piracy, which does notinvolve putting armed guards on vessels.

QMS has taken technology previously usedprimarily in land based operations. This is anearly identification system of potential threatsat a distance of up to 25 miles from vessels.

This technology is combined with hardened,deployed assets that have the ability tointercept, evaluate and engage those threats, ifnecessary, before they can get within twomiles of vessels, the company said.

Since the QMS system is a totallyindependent operation, there are no securitypersonnel on board vessels. This eliminatesall potential liability for any security activityfrom the vessel owner or the ship’s Master.

The proactive and defensive nature of thesystem will ensure that there is no damage toa client’s vessel by preventing a threat fromever getting within firing range of that vessel.

Due to the advanced design of the system,it is anticipated that customers will receivesubstantial discounts on current War Zonesurcharges for their P&I and Hull coverage,based on current input from the insuranceindustry, QMS said.

QMS also said that it is currently bookingconvoy operations beginning in the thirdquarter of this year.

Quantico systemclaims to eliminatearmed guards onvessels

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TECHNOLOGY - EMISSIONS CONTROL


Technology studyconducted on product

tankerAt the 9th annual Green Ship Technology Conference held in Copenhagen recently, apaper was presented on a comparison study of abatement technologies theoretically

fitted to a 38,500 dwt tanker*.

The paper was written by ChristianKlimt Nielsen and ChristianSchack, both of Green Ship of theFuture/FORCE Technology,

Denmark. Three different abatement technologies were

compared to meet the forthcoming IMO ECAemission levels. The study is based onretrofitting the tanker and compared lowsulphur fuel, LNG as fuel and scrubbertechnologies. Various scenarios were discussedand a financial evaluation was madeconsidering the operational profiles, fuelprices, ECA and non-ECA operations.

The private Danish industry initiative GreenShip of the Future launched the new study inwhich a group of companies joined together to

compare various abatement technologies tofulfill the IMO regulations.

The study was put together with the help ofthe following Danish companies, which are allmembers of Green Ship of the Futureinitiative: � MAN Diesel & Turbo. � Alfa Laval. � Maersk Maritime Technology. � NORDEN. � Danish Shipowners’ Association. � Schmidt Maritime.� Elland Engineering.� Maersk Tankers. � Lloyd’s Register. � Green Ship of the Future.The objective of the study was to comparepotential solutions able to meet therequirements of the IMO regulations regardingSOx in an ECA in 2015 and globally in 2020.In 2015, the requirements within the ECAareas call for a reduction of sulphur content inthe fuel to 0.1 %, or alternatively theequivalent level measured in the exhaust gas.Similarly in 2020, the global requirements willbe a reduction of sulphur content in the fuel to0.5 %, or alternatively the equivalent levelmeasured in the exhaust gas. A scenario with aglobal sulphur cap entering in 2025 was alsoconsidered.

The three operational modes chosen toevaluate the technical and economicalfeasibility of a retrofit conversion were: Lowsulphur fuel (MGO) – base case scenario;scrubber technology and LNG operation.

The vessel chosen for this study wasNORDEN’s 38,500 dwt product tanker, NordButterfly, one of a series of eight similarvessels. The service speed at design draft,including a 15% sea margin, is 14 knots.

Data drawn for four of her sistershipsindicated that they operated on average 13%of their voyage time in an ECA with amaximum of 17% recorded.

The table below provides information on theassumed number of operational days per yearat sea and in port. In addition, for thepercentage of time sailing in an ECA, thecorresponding number of days is also shown.

The average daily fuel consumption of themain and auxiliary engines running on HFO,or MGO is outlined below. The average fuelconsumption was in the range of 60-70%MCR. M/e at seaHFO = 28.7 t/dMGO = 27 t/d

Aux at seaHFO = 3.7 t/d

Length, oa……………………………182.86 m

Length, bp……………………………174.50 m

Breadth, moulded……………………..27.40 m

Depth, moulded……………………….16.80 m

Draft, design……………………………9.55 m

Draft, scantling………………………..11.60 m

Deadweight, design…………………...29,000 t

Deadweight, scantling………………...38,500 t

Main engine………….MAN B&W 6S50MC-C

Power………...9,480 kW MCR @ 127 rev/min.

Source: NORDEN.

Principal Particulars Nord Butterfly

Non ECA ECA Total

Days at sea 110 110 220Days in harbour,idling 57.5 57.5 115Days in harbour, unloading 182.5 182.5 365

Vessel operation profile based on 50% ECA



MGO = 3.5 t/d

Aux in harbour, idlingHFO = 4.3 t/dMGO = 4.1 t/d

Aux in harbour, unloadingHFO = 4.3 t/dMGO = 4.1 t/d

All the scenarios considered were based on a10-year period spanning 2015-2025. Given thetentative date for the entry into force of theglobal sulphur cap of either 2020, or 2025, theearlier date was considered as part of the basecase, but 2025 was also considered for anumber of cases to determine the sensitivity ofinvestment decisions to this date.

Assuming the global sulphur cap enters intoforce in 2020, the base case scenario for ashift to MGO in an ECA is shown below.In case the global sulphur cap enters in 2025,the MGO fuel scenario for 2020-2024 would

change and be similar to the fuel scenario for2015-2019.

The scenario for installing a scrubbersystem would entail running on HFO at alltimes for both the main and auxiliary enginesis shown below.

The scenario for the use of LNG as fuel forthe main engine depends on whether or notLNG is used inside, or also outside, an ECA.

Due to limited capacity of the LNG tanks(total volume is 700 cu m, externally placedon the main deck), the range of the vesselwhen running on LNG is limited to around4,500 miles. This is based on a voyage fromSuez to the Baltic Sea.

If the vessel is trading in an area where thedistance between ports is less than this range,it is assumed that the vessel will run on LNGall the time and that the gas can be bunkeredin the various ports of call. For comparisonpurposes analyses are also made for conditionswhere LNG would be used only inside anECA.

The LNG scenario for LNG used in bothECA and non-ECA is also shown below,assuming the global sulphur cap is 2020. Incase LNG is used only inside an ECA, MGOwould be used for the main engine as of 2020outside the area.

A main factor in determining the use of

LNG is the cost: if the LNG price is less thanHFO, then the main engine will run on LNGoutside the ECA in the period 2015 – 2019.However, if and when the cost of LNG ishigher than HFO, then the vessel would run onthe bunkered HFO under the same conditions(the retrofit solution has left the HFO tanksintact).

Different cost scenarios were considered as- HFO = $650/t; HFO-MGO spread = +$100 -+$800/t; LNG = $450, $550, $650, $750/t.

In the financial analyses, it is assumed thatwhatever the selected price levels for thedifferent fuels, they remain constantthroughout the period 2015 - 2024. The costdifference between 0.1% and 0.5% sulphur isassumed to be negligible.

The cost of LNG will depend heavily onwhere it would be purchased, as there is noglobal LNG market/pricing yet and whether itis fixed relative to the oil, or gas price. Hencein view of the significant market uncertainties,values should be considered only as indicative.

Low sulphur fuelThe base case is defined as the referencetanker in original as-built condition; in case ofoperation in ECA, the vessel will shift to lowsulphur fuel (MGO) in order to comply withthe prevailing emission requirements. Lowsulphur fuel referred to in this study comprisesfuel with not more than 0.1% sulphur in thecase of ECA operation as of 2015.

In addition, it comprises fuel that willsatisfy the global sulphur cap of 0.5% as of2020 (or 2025). To keep it simple, all of these

Base scenario: MGO 2015 - 2019 2020 - 2024 Non

ECA ECA Non ECA ECA

Consumption at sea (ME) HFO MGO MGO MGO

Consumption at sea (AE) HFO MGO MGO MGO

Consumption at port, idling (AE's)

HFO MGO MGO MGO

Consumption at port, unloading (AE's)

HFO MGO MGO MGO

Base case fuel scenario.

Scrubber fuel scenario.

LNG operation fuel scenario.

Scrubber installation principle.



low sulphur fuels are referred to as MGO(marine grade oil, ie distillates). Theexpectation is that the price differencebetween 0.1% and 0.5% sulphur fuel will belimited.

No major modifications are required inorder to run on low sulphur fuel, but forextended operation on MGO, it will benecessary to install a fuel cooler to increaseviscosity to a sufficient extent. It should havea capacity of between 25 kW and 50 kW andcan be placed parallel to the fuel pre-heater ofthe main engine. The cooler’s cost is in therange of $30,000 – $50,000.

Attention must also be paid to lubricatingoil: depending on the duration of continuedoperation on MGO, it will be necessary toapply an appropriate type of system, or

cylinder oil for the main and auxiliary engines. The total adaptation cost is considered

negligible compared with the cost ofpurchasing MGO and is not taken into accountin the financial analyses of the differentscenarios when comparing with the option tofit a scrubber, or to use LNG as fuel.

Scrubber solutionThe exhaust gas scrubber system removessulphur oxides and particulates from theexhaust gas. It is a hybrid system beingcapable of operation both with freshwater andseawater.

The shift between these operational modescan be made as flying changeover while thescrubber is in operation controlled by a GPSsignal giving the position of the vessel. The running of a scrubber system will includethe following removal work necessary onboard the vessel:- Removal of funnel, deckplatforms and ladders, exhaust gas pipes andfree fall lifeboat.

As for the installation, this will include:- � Deck extension, pillars, ladder and

platforms.� Sludge tank (internal structure).� FW circulation tank.

� NaOH compartment and tank.� Scrubber.� Free fall lifeboat.� Exhaust gas pipes, scrubber water pipes,

etc.� Funnel top structure.� Scrubber auxiliary machinery and pipe

connections. The additional auxiliaries’ fuel consumptionfor the scrubber operation, including pumps isshown below. In case of an ECA operation, theauxiliaries will run on MGO.

Additional auxiliaries consumption

HFO at sea………………………0.8t/dHFO in harbour, idling…………0.2t/dHFO in harbour, unloading…….0.4t/d

The scrubber intended for the Nord Butterflyis designed for fully automatic operation andrequires only minimal attention from the crew.In the event of a breakdown, the exhaust gas issent through by-pass chimney until thescrubber is ready for operation.

Normal operation of the scrubber system isundertaken by using a control panel placed inthe engine control room. The scrubber can beoperated in automatic mode, or semi-automatic mode. When operating in automode, the ‘engines running’ signal starts thescrubber and the signals from the ship’s GPSdetermine whether the scrubber operates inseawater mode or freshwater mode in apredefined manner.

Normally the engine’s fuel flow indexdetermines the amount of sea water used in thescrubber and/or the caustic soda dosing to thesystem if in fresh water mode. Theperformance of the scrubber is measuredcontinuously and the adjustment of thedifferent operational parameters is controlledaccordingly.

According to the MEPC guidelines, thescrubber system will come with manualsapproved by the authorities, containinginstructions in the proper use of the exhaustgas cleaning system and how to report theperformance of the system to the authorities ifasked. The manuals in question is the SECAcompliance plan, SCP-B, Onboard MonitoringManual, OMM, and the EGC – SOx technicalmanual - scheme B, ETM-B.

These manuals provide the technicalinformation to ensure proper operation andreporting of the Exhaust Gas Cleaning unitinstalled on board in order to comply withMARPOL Annex VI regulation 14.4. Theymust be stored on board the ship for surveys.

Caustic Soda, or sodium hydroxide solution

is a strongly alkaline liquid, thus making itvery important to follow the health and safetyguidelines. Alkalis have a decomposing effecton proteins and it may gradually penetrate thedeep tissues unless the adhered alkali iscompletely removed. In particular, if the eyesare exposed to an alkali, great care should betaken since eye tissue is rapidly affected,causing a lowering, or loss of vision.

Operators that handle sodium hydroxidemust be required to observe the operatingstandard for safe operations. For this, it isnecessary to provide education and trainingconcerning safe handling of alkalis.

The emissions from the scrubber system arecarefully monitored and logged in order tocomply with current regional legislation anddemands of relevant classification societies.The scrubber control system will alarm theoperator of any exceeding limits.

During the operation of the scrubber infreshwater mode, the water cleaning systemwill generate sludge. This sludge can betreated as other normal sludge from ships’engine rooms. However, incinerating it onboard the vessel is not allowed.

If the “normal” sludge is not incinerated onboard, the sludge from the scrubber watercleaning system can be mixed with this sludgeand treated in the same manner, ie delivered tothe port waste reception facilities. The amountof sludge from the scrubber water cleaningsystem will amount to 2.5 liters/MWh engineoutput, which is around 10 % of the usualsludge. Scrubber water sludge will be 20%solid and 80% water.

The scrubber installation chosen for thisstudy is based upon the experience gained byAlfa Laval – Aalborg on the scrubberinstallation on board the Ro-Ro vessel FicariaSeaways, (ex Tor Ficaria) - a project which isalso a part of the Green Ship of the Future co-operative.

Today, the vessel has logged more than4,000 operational hours with the scrubberinstallation and it is still working as designedand installed.

Thus the study scrubber installation isexpected to be technically feasible and shouldnot cause any major problems in installationand operation on board the tanker. There willbe a need for crew training with respect tooperation and maintenance of the scrubberinstallation.

Lloyd’s Register has prepared a conceptualdesign review of the proposed installation andfound no undue problems. A more detaileddesign should, however be prepared beforeany firm conclusions on the class review canbe made.

Aft ship with scrubber installed.



LNG conversionConversion of the existing 6S50MC-C engineto ME-GI dual-fuel engine requires that theMC engine is first converted to a ME-B typewith electronically controlled fuel injection.This requires installation of hydraulicequipment for the electronically controlledfuel injection system and the replacement ofthe camshaft for the exhaust gas valveactuation.

A further benefit of converting the MC-Cengine to ME-B type engine includesimproved specific fuel consumption (SFOC)during Tier II mode operation. During theengine conversion, the additional GIconversion can also take place simultaneously.This requires the installation of new cylindercovers with gas valves and gas control blocks,with all ancillary piping, and the gas chainpipes to supply the engine with gas. Additionalcontrol systems and instrumentation are also

required to fully convert the engine to ME-B-GI type engine.

The retrofitting of a LNG system is a majorundertaking and includes the following workon board the ship: Removal of the followingequipment and structures: � Deck pipes and electrical cable pipes in

area for LNG storage tank foundation and deck houses for LNG equipment.

� Grating/platform in CL at A-deck in way ofnew LNG storage tank foundation.

Installation of the following equipment andstructures: � Foundations for LNG storage tanks.� Deck houses for LNG equipment including

foundation. � Rerouting/reinstallation of deck pipes,

electrical cable pipes and pipe foundations. � New grating, platforms and ladders for

LNG storage tanks. � Foundations for new LNG pipe system. � Main engine conversion from MC-C to

ME-GI. � Fuel gas supply system.

� Block and bleed valve arrangement.� Gas piping system. � Ventilation system. � Inert gas system. � Sealing oil system. � LNG tank. � Fuel gas supply system. � LNG piping system and valves. � Auxiliary systems. � Safety equipment.� Instrumentation and control system.

The fuel consumption for an LNGapplication for the main engine at sea = 21.9t/d HFO; for the MGO pilot fuel for LNGoperation = 1.4 t/d; for the auxiliaries MGOconsumption = 0.3 t/d.

The most crucial aspect for the futuresuccess of LNG as a fuel is theimplementation of, and adherence to, adequatesafety standards. Both the technical andhuman aspects of safety must be fullyaddressed, to ensure all persons involved inLNG handling are equipped with the correctinformation and can respond in the correctmanner.

For technical safety aspects, unifiedstandards and specifications can go some wayin ensuring safe LNG operation.Harmonisation of standards both for LNGbunkering (ISO 28460), and for LNG as a fuel(IGF code), will ensure consistent safetystandards for vessels operating with LNG.

On the human side, training of the crew inLNG handling and operation of LNG specificequipment is required, for example ME-GItraining courses will be available andequipment vendors will offer the same.Onshore staff will also require similar training,and in the case of LNG bunkering, theresponsibilities of personnel must be clarifiedto ensure a safe process. A further issue is thepublic perception of LNG, which is harder toaddress directly but nonetheless important tomaintain that LNG is a safe alternative fuel.

Availability of LNG is also an importantissue to consider when considering aconversion and many projects are underway todevelop LNG bunkering terminals at ports inthe European ECAs. However, should LNGnot be available, the conversion of the mainengine to ME-B-GI still allows for operationon conventional fuel oils. Full fuel flexibilityprovides operators with reduced risk withregard to fuel prices and availability withoutcompromising engine performance.

Operating LNGCs on gas is not new. Thereare many years of experience in operatingLNGCs on the ‘Boil off gas’ using steamturbines and dual fuel diesel electric (DFDE)engines. In these cases, the vessels will

operate on gas directly from a fuel tank, whichhas also been tested on smaller projects usingthe DFDE concept.

The ME-B concept for the main engine isalso proven technology and the ME-GIconcept, although developed, tested, andapproved by class in principle, is yet to beinstalled on a vessel. However, the GItechnology is not new, so the fitting of theME-B-GI engine will not introduce any majortechnical challenges. Furthermore, installationof gas tanks and auxiliary equipment will befamiliar to many shipyards and will smoothlyfacilitate vessel conversion.

Financial analysisIn the following, the two retrofit alternativesto the base case are considered from afinancial perspective. Based on the respectiveinvestment costs (CAPEX) and operatingexpenses (OPEX) of the retrofit options versusthe added operational cost of the base caseassociated with the shift to MGO, as requiredby the regulations, the net present value(NPV) and payback period are determinedwhen opting for the scrubber, or LNG solutioninstead of the base case.

Hence the NPV and payback results areprovided relative to the base case, ie if theNPV and payback are positive for a chosenalternative, then that solution could befinancially more attractive than the base caseunder the selected circumstances.

To calculate the NPV and payback time, adiscount rate of 9% is assumed and thesavings period is 10 years (2015 – 2024). TheNPV and payback results are presented as afunction of fuel cost spread between MGO andHFO and as a function of percentage ofoperating time within the ECAs.

Scrubber solution The CAPEX for the scrubber solution is basedon the quotes from three shipyards. The costof retrofitting a scrubber system is about thesame as the equipment investment costs.However, there will be a modest increase inOPEX due to the required pumping power andcaustic soda usage in the case of a closed loopoperation. The system could operate for aconsiderable period of time betweenmaintenance. From a financial perspective, the scrubberalternative is more attractive if the vessel wasto trade for a reasonable amount of time in anECA. Both the NPV and payback time aresensitive to the spread in fuel costs betweenHFO and MGO.

For a cost differential of around $350 pertonne, the payback time is around three years

Aft ship with LNG tanks.



for a vessel operating 100% in an ECA, a littleover four years for 75% ECA operation, six

years for a 50% ECA operation and eightyears for a 25% ECA operation.

If a payback time of around five years wasconsidered as acceptable, then the time spentinside an ECA must be more than 75%. For avessel spending 50% or less in an ECA, itwould be more financially attractive to switchto MGO, the report said.

For the Nord Butterfly with only a 13%ECA operation, the payback time would workout at nine years with a $350 per tonne spreadbetween HFO and MGO.

These figures have been worked out at anassumed HFO cost of $650 per tonne. Ofcourse, the actual costs prevailing at any onetime will have an affect on the NPV and thepayback time one way or another.

LNG SolutionTaking the option of converting a vessel toburn LNG as fuel, there are a number offactors that will influence this decision. Froma technical perspective, such a conversion isfeasible yet complex. From an operationalperspective, there are many other issues to beconsidered, including specially trained andqualified crew, LNG bunkering procedures,safety during operations and bunkering,bunkering locations, gas venting, a limitedmaximum range when running on LNG andcomponents’ maintenance.

Another main driver for choosing LNG isthe cost of the gas. The payback time isobviously very sensitive to the cost of the fuelat any given time. If the LNG can be

purchased for $100, or even $200 per tonneless than HFO, it becomes financiallyattractive for an ECA operation of at least50%, assuming a payback time of not morethan five years is acceptable.

If the LNG cost is comparable with the$650 per tonne benchmark for HFO, then itbecomes attractive for at least a 75% ECAoperation. If the LNG becomes moreexpensive than HFO, this option only becomesinteresting for vessels operating in ECAs for ahigh percentage of time.

For a spread of $350 per tonne betweenHFO and MGO and an LNG price of $100 pertonne less than HFO, the payback time isaround three years for a 100% ECA operation.

At 50% ECA operation, the payback time isabout seven years. If a payback time of fiveyears is deemed necessary, then theHFO/MGO spread would have to be $500 pertonne.

However, for the Nord Butterfly with her13% ECA operation, the payback time wouldexceed 10 years.

Any financial benefit will depend upon thecost spread between HFO and MGO. If thisoption were to be used purely as a fuel insidean ECA, then the payback time would be sucha length that it would only interest vesselsoperating more than 75% inside an ECA. Fora cost spread of $350 per tonne betweenHFO/MGO and with LNG at $550 per tonne,the NPV and payback time would be much thesame as for the scrubber alternative.

The vessel’s installed engine model is animportant issue when considering a conversionto LNG as fuel. Newer engine types withelectronically-controlled injection are cheaper- around $800,000 - to convert to LNGoperations, thereby reducing the CAPEX andshortening the payback period.

ConclusionThe report concluded that it is possible toreduce, or remove SOx by converting anexisting tanker. In the case of the NordButterfly, with her 13% ECA operation, thepayback periods will be long and the mostfavourable option from an economic viewpointwill be to switch to MGO when operating inan ECA.

A scrubber’s payback time is mainlysensitive to the HFO/MGO price spread andless sensitive to CAPEX and the absolute HFOprice. ECA operations of 50% and 100% givea payback time of three and six years,respectively, assuming the HFO/MGO spreadis $350 per tonne. If the global sulphur cap isput back to 2025, then the payback period willincrease by a further 1.5 years.

The LNG solution is around $1.7 mill more

expensive than installing a scrubber. If theLNG is used only inside an ECA, the paybackperiods will be long, except when the vessel is100% trading in an ECA

If the LNG is also used outside an ECA, thebusiness case becomes more interesting with apayback time of three to 4.5 years for 100%and 50% ECA operations respectively,assuming a price spread of $350 per tonne andan absolute HFO price of $650 per tonne, plusan LNG price of $550 per tonne.

As for the scrubber solution, the paybackperiod is most sensitive to the HFO/MGOspread. However, it is also sensitive to theprice of LNG relative to HFO. This pricedifferential is very difficult to calculate as theLNG infrastructure is still fairly unknown.This solution could be more attractive to thosevessels fitted with an ME type engine, as theconversion from MC to ME could save$800,000. It could also benefit a newbuilding.

Since the start of the ECA project, newtechnology is now available and the use ofmethanol in a dual-fuel engine and/or usingdimethyl ether (DME) based upon on boardmethanol conversion looks to be anotheralternative, the report said.

As a result, Green Ship of the Future is alsolooking at a comparison to the currentsolutions with both a methanol/dual fuelengine and a DME solution together with agroup of partners.

REFERENCES The authors acknowledged the following

references - - ECA Retrofit Technology – Scrubber

Retrofit Description, Schmidt Maritime / - Elland Engineering, Document no 2011-9008-02 – edition 0/1.

- ECA Retrofit Technology – LNG Retrofit Description- Steel work on upper deck, Schmidt Maritime / Elland Engineering, Document no 2011-9008-03 – edition 0/1.

- Green Ship of the Future - Emission Control Area Retrofit Technology Study - Conceptual Design Review of Scrubber Option & LNG as a Fuel Option, Lloyds Register, 24 November 2011.

- Technical Outline Specification of a LNG Fuel Gas Supply System for 2-stroke main engine TGE, 2011, 1.2575 TH11/TSP 0000/0011.

- Green Ship of the Future, SECA Project – ME-GI retrofit Description, MAN B&W, 2011.

- Green Ship of the Future - ECA RetroFit Technology Technical Report, Green Ship of the Future, 2012.

*See also DNV feature on page 15.

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CAPEX LNG installation.

CAPEX for scrubber installation Scrubber machinery and equipment 2,600,000 USD

Steel (150t) / pipe / electrical installations and modifications

2,400,000 USD

Design and classification cost 500,000 USD

Off-hire cost 20 days@17,000 USD/day 340,000 USD

TOTAL 5,840,000 USD CAPEX for scrubber installation.

TO

June/July 2012 � TANKEROperator . 37


The timescale for the reduction ofsulphur emissions were agreed andratified back in 2008 at the IMOand seem unlikely to be changed.

The company warned that shipowners shouldby now have strategies in place to complywith the new rules, but many havn’t.

There has been some resistance to the speedand scale of the reductions among EU memberstates, both from shipping lobby groups andfrom some politicians, especially in the Balticregion.

However, Alfa Laval said that it was veryunlikely that the new rules would be amended,or disappear, despite EU members states beingput under pressure from their shipowners’associations.

Given the advent of exhaust gas cleaningtechnology in many other sectors of industry,

it seems that this technology will inevitablybecome part of shipping’s environmentalcompliance.

Basically, shipowners are faced with threeoptions – MGO, LNG and exhaust gascleaning. The simplest option, according toAlfa Laval, is to switch to MGO. However,the cost will be high, possibly meaning that avessel’s fuel bill will account for 60-70% of itstotal operating costs, instead of up to 50% asof today.

The difference in price between HFO andMGO is currently around $300-$330 per tonneand in the past, this differential has climbed toas high as $500 per tonne. This price gap isextremely sensitive to the world’s economy,and although it is currently at a low ebb, it isexpected to climb again shortly. Should thisoccur, then the price gap will increase, Alfa

Laval said. In addition, analysts are predicting a

shortage of distillate fuels. Europe alreadyimports some 30 mill tonnes per year and,once the new regulations take effect, another50 mill tonnes per annum will be needed. Alsodistillate fuel for marine consumption willhave to compete with land-based fuelconsumption. Another problem is that thereare no refinery investments expected.

The second alternative discussed is the useof LNG as fuel. However, Alfa Laval said thatthe LNG market price is currently unrealisticand there are other drawbacks. There is noworldwide LNG bunkering structure in placeand the insulated tanks needed on board shipwill have to be three times larger than normalfuel tanks. The on board requirements are alsovery strict.

There is also some doubt being expressed asto the environmental impact of burning LNGas fuel. Although it is a clean fuel, if perfectcombustion is not achieved, there can be asmall release of methane, which is a relativelypotent greenhouse gas, Alfa Laval said.

The third option is to install an exhaust gascleaning system. While the maximum sulphurcontent in fuels used on board vessels will belimited to 0.1% from 2015, exhaust gascleaning systems that reduce SOx emissions tothe same extent are already IMO approved.

Alfa Laval claimed that this technologyallows shipowners to continue to operate onHFO instead of more expensive MGO, whilestill meeting the IMO guidelines on SOxemissions.

For newbuildings, installing exhaust gascleaning systems doesn’t present a problem.However, when it comes to a retrofit on boardan existing vessel, a number of factors must betaken into account. The major question iswhether it will be feasible to fit a system onboard a certain vessel, given its type, design

Alfa Laval studiesSOx emissions

reductionAlfa Laval has also produced a study paper on the methods of reducing SOx emissions to

0.1% in ECAs by 1st January 2015 and globally down to 0.5% by 1st January 2020.

Alfa Laval’s PureSOx process.



and size. Also important considerations are thevessel’s operating profile and annual fuelconsumption while sailing in an ECA.

In financial terms, the larger the vessel andthe more hours it operates, the more fuel itburns and the more attractive this propositionis in terms of saving on fuel bills, Alfa Lavalclaimed.

High costThe company acknowledged that the cost ofretrofitting a scrubbing system, including thevessel’s downtime involved, can be high.However, if the vessel regularly trades withinECAs then the payback time is said to be one,or two years.

Obviously, the opportunity to continue touse HFO is a highly positive factor in fuel costterms, thus allowing the owner to remaincompetitive in an extremely tough market. Afew owners have chosen to go down this routewith favourable results, Alfa Laval said.

The study then went on to explain thereasons why the take-up of exhaust gascleaning systems has been slow. Lobbying andother dissenting comments were onepossibility. In addition, shipowners were stillhoping for a reprieve from the new rules andthe uncertainty leads to a reluctance to invest.Some owners do not want to be seen as‘guinea pigs’ for the new technology.

Then there is the eternal triangle between

the shipowner, charterer and scrubbermanufacturer. If an owner expresses aninterest in purchasing a scrubber system, thecharterer will not pay any extra on the hire, ashe or she does not seem to be aware of theforthcoming legislation.

Today in many cases, the fuel bill exceedsthe charter fee. Therefore, Alfa Laval said thatan owner will be expected to install ascrubber, absorb the cost and maintain areasonable level of charter hire in 2015, inorder to safeguard a company’scompetitiveness in the long term.

Currently, this triangle appears to be indeadlock. Yet, it will come as no surprise tohear in 2015, a charterer say to an owner –“you expect me to pay double the price forfuel? Why is there no scrubber installed?”

Why invest now?Some shipowners reason that with a paybacktime of one, or two years, starting in 2015,why invest now? As usual, many owners arewaiting until the last minute and in 2014, AlfaLaval expects chaos to reign. Ballast watertreatment regulations will also be looming, sothey will need to change their BWT systems,as well as installing exhaust gas scrubbers.

By then, all the shiprepair yards will befully booked and scrubber suppliers will beunable to keep up with demand. The ownerswho have sat on the fence will be forced toswitch to expensive low sulphur gas oil whilewaiting for the equipment supply to catch upwith demand, the company said.

To enter the exhaust gas cleaning market,Alfa Laval introduced the PureSOx, another inits ‘Pure thinking’ range of environmentalequipment to cope with the swathe ofregulations.

With a cleaning performance down to 0.1%sulphur or less, this exhaust gas cleaningsystem is claimed to be the first multiple inletsystem to hit the market. This means that itcan be configured to utilise just one scrubberto clean the exhaust gases from the main, aswell as the auxiliary engines.

The system is based upon the inert gasequipment, which has been used by the tankersector for 40 years.

Rene Diks, Alfa Laval’s manager marketing& sales, exhaust gas cleaning, said; “For theretrofit market, where space and weight arecritical issues, it is beneficial to be able tosupply a single scrubber that handles exhaustgases from all the ship’s engines. Otheradvantages include lower energy consumption,less piping and lower maintenance costs.”

PureSOx can operate on either sea water orfresh water. The ability to operate with sea

PureSOx cut-away drawing.



water provides savings in caustic soda andfresh water consumption. In areas of lowalkalinity, the system will switch to freshwater mode. When operating with fresh water,the water used for cleaning the exhaust gas iscirculated in a closed system with nodischarge to the environment. Alfa Laval’shigh speed separation technology is used toclean the effluent to ensure compliance withwater discharge criteria.

To minimise the energy consumption of thescrubber, the water flow is automaticallyadjusted to the engine power. It is alsodesigned to vary the water flow depending onthe water flow of the fuel.

The company said that based on its ownexperiences, shipowners are slowly starting toconclude that installing a scrubber system isthe most viable alternative to deal with theupcoming low sulphur regulations.

Alfa Laval recently sold a system to aDutch-controlled drycargo vessel, whichnormally trades within the North EuropeanECA. The Spliethoff-managed ship has acombined engine output of 28 MW, making itsscrubber system the largest sold thus far.

Another system is fitted to DFDS’ Ro-RoFicaria Seaways, which treats the exhaustfrom a 21 MW MAN B&W main engine.Thus far, the system has completed more than4,000 operating hours.

The company admitted that exhaust gascleaning will not be the answer to everyshipowner’s prayers. In the future, newtechnology will be needed to make MGO and

LNG more financially viable and maybecompletely new fuel alternatives.

The clock is ticking, Alfa Laval concluded,as the scrubber manufacturers all agree thatthere will be a glut of orders for the systemsaround 2015, which will be difficult to handleand it should also be noted that the currentlegislation is unlikely to be postponed. TO

For the retrofit market, where space andweight are critical issues, it is beneficial to

be able to supply a single scrubber thathandles exhaust gases from all the ship’s

engines...lower maintenance costs

“

”Rene Diks, Manager, Alfa Laval



The company claimed that by usingthe FEC, savings potential onexisting vessels are in the range of20- 40%. Around six to 12% can

be achieved without installing costlytechnology, for example propellermodifications, DIMAR-TEC claimed.

The challenge is to measure the keyperformance indicators (KPIs) with anaccuracy of 1-3% in order to identify smallvariants in operational behaviour. From a dataquality standpoint, it is important todifferentiate the measurement tolerances in‘accuracy’ and ‘repeatability’ and their effect

on the system data. High ‘repeatability’ isimportant for data evaluation based ontrending, the company said.

Fuel consumption data must be comparedagainst a baseline to minimise the impact ofambient conditions, such as tropical, or Arctic.To achieve an acceptable accuracy, a fullcorrection, as per ISO 3046, must beundertaken.

Armed with the data in digital format,additional work for the crew can be avoided,as can human error when reading and/orwriting, transfer reliable data automaticallyfrom ship to shore and create automatic

reports for evaluation.To address the above and to ensure reliable

data collection and processing, DIMAR-TECdeveloped the FEC. Together with twoGerman partners, the company developed ashaft power sensor, which is also able tomeasure propeller thrust, as this is an essentialvalue to determine the propeller’s efficiency.

In order to realise and maximise fuelsavings, the operator must motivate the crewto use the information gathered from the datato improve the vessel operation. This can beachieved in two ways, either by dataevaluation by an operator (where the FEC

Data analysis via afuel efficiency

controllerFor the past few years, Singapore-based DIMAR-TEC has been working on fuel and

energy saving concepts, which has resulted in the launch of the Fuel Efficiency Controller (FEC).



provides the data), or decision support tools.which provide all the ready instructions to thecrew on how to optimise the vessel.

Today, it is good practice to work with theEEOI and have a SEEMP in place, thecompany said.

ReportingOne of the most basic on-board activities toachieve fuel savings is ship operator reporting.A small display on the bridge can lead to dailycommunication about fuel consumptionbetween the Chief Engineer and Master. Thisalone can results in a measurableimprovement.

Other opportunities are� Throttle optimisation -improve

SFOC/vessel speed.� Engine fine-tuning.� Vessel speed fine-tuning.� Autopilot settings optimisation.� Trim optimisation.The usual decision support tools tend tospecialise in one area and consist of highlycomplicated software with considerable costsattached. However, the return on investment

(ROI) should be considered. These are also mostly concerned with only

one aspect of the vessel operations, eg weatherrouting, vibration monitoring (of bearings,vans, etc), trim optimisation, rudderoptimisation, plus other systems.

Technical upgrades to realise fuel savingsalso need to be taken into account, such as:� Frequency inverter operation.� Seawater pumps.� Engine room ventilation.For load-depending operation giving savingsof 25-40%, the ROI is claimed to be betweensix and 20 months.DIMAR-TEC said that it can offer a completepackage, including installation, including:� Rudder design optimisation, eg Mewis

Duct.� Special coating systems, eg silicon paints.� DK Group’s Air Cavity System (ACS) (air

lubrication technology that delivers around 10% in fuel savings for tankers).

� Other systems.When asked what makes this system differentfrom the others in the market, DIMAR-TECsaid that the FEC is a device, which allows the

customer to receive a fully ISO 3046 correctedmeasurement of the engine’s fuel oilconsumption. This means that an 80-page ISO,which describes how engine manufacturerstest their engines is included in the software.

Other systems may consider temperatureand density correction, but only the fullintegration of the 80 plus pages & calculationscontained in ISO 3046 provides a reliablebaseline and therefore reliable benchmarkingof the operation. To guarantee the highestpossible accuracy and data quality of themeasurement results, a vessel-specific fuelsystem analysis is required, which enablescustomers to compare their vessels fleet wide.

The company said that it concentrates on thevessel’s fuel oil system; the data will beintegrated into existing customer databasesusing a higher level analytical software. EachFEC is tailor made for the specific fuel oilsystem fitted on board the vessel. Before theinstallation of the system commences,DIMAR-TEC analyses the fuel oil system andexisting sensor arrangements. “In this way wecan ensure our product quality and are able todefine the total system accuracy for the

�� CDISIRE

Port State ControlFlag State InspectionsClass Inspections

Ship Visit ReportsInternal AuditsNavi Audits

Marine Injury ReportsVessel/Cargo damagesMachinery damagesEnvironmental incidentsNear MissesNon Conformities

Fleet ReportsNear Miss Reports

Management Reports

Overdue Items ReportShip Reports

Oil Major Reports

Vetting Status ReportInternal vs. External Deficiencies

Key Performance Indicators

info�chemserve-marine.comwww.chemserve-marine.com

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vessel,” the company said.As is well known, the vessel’s fuel

consumption is influenced by a lot of differentfactors, for example, cooling watertemperature, temperature of fuel oil andambient temperature.

All these factors influence the Specific FuelOil Consumption (SFOC). Therefore, it isnecessary to include them in the calculationand specify the accuracy of the system to thecustomer.

FEC is also capable of integrating the directsignal outputs from different sensors. Theintegration of 4-20 mA, or pulse signals isstandard, MODbus integration is also anoption.

Furthermore, the system can be accessed viaevery PC in the vessel’s network, thuseliminating the need for additional cableddisplays. It is accessed by a touchscreen. It isalso designed for installation in the engineroom close to the sensors to minimiseinstallation and cabling concerns.

DIMAR-TEC developed the FEC’ssoftware, as a sub-system for other high-endsoftware with automated analysis features.“With very competitive costing, we expect tobecome market leader in the niche of accurate

fuel consumption measurement,” the companysaid.

The FEC provides the recorded data asaveraged CSV- files for easy integrationwithin the low daily volumes used in generalfleet management software, combined withmaintenance history, repairs, manuallyrecorded daily data, etc. The MODbus outputalso allows data integration into complextechnical analysis software.

For fleets without existing data reportingsystems, options are offered using partners,but the company stressed that it was not tied toany specific software house, or standard, butrather as sub-suppliers for these systems. “Wedo not want to dictate to our customers, whichdatabase or reporting system they should use.Often they already have one and theintegration of a new company software isalways connected with a lot of problems andeffort. If this is avoidable, we try to avoid it,”the company explained.

Thus far, DIMAR-TEC’s field testinstallations have been on container vessels.The company also offers online access via theinternet, so an owner can stipulate a weeklydownload (around 200 kB, depending on thechosen filing frequency), enabling data

analysis to be conducted within one workingweek.

The company explained that it is not usuallyinvolved in the data analysis. At the moment,data analysis is undertaken manually in thefield test installations. Data analysis is left tospecialised companies, who have investedmany man years in programming.

When asked if luboils could be included inthe data analysis, the company replied that oneof the advantages of the system is the optionto integrate additional sensors. “We arefocused on the fuel oil system, but that doesnot mean that we are not able to integrate awide range of other sensors. So it is alsopossible to integrate a device to measureluboils. But since this is a cost driver for theowner, we have investigated it in detail. Theproblem is that at the moment no reliablesensor is available to measure the specialconditions found in a cylinder lubricatingsystem with the requested accuracy,” DIMAR-TEC said.

The system is applicable for both 4-strokeand 2-stroke engine types; 4-stroke enginesrequire in comparison to 2-stroke enginesadditional humidity measurement for completeISO 3046 correction, the company concluded.



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Negating the carbon risk

Emissions control equates to operational efficiencies: this is a statement that is not newto the tanker sector, but one that is increasingly pertinent as fuel costs remain

high and charter rates weak*.



Owners and operators are facedwith the ongoing challenge ofsustaining operations. To survivein these conditions and adapt for

the future, streamlining is absolutelyimperative. A significant factor in achievingthis and securing your business for the long-term is measuring and managing your carbonemissions risk.

Carbon risk is an issue that demands promptaction. Given the EU’s latest announcementthat it plans to consider creating CarbonEmission Control Areas (CECAs), shippingcould be exposed to further carbon penaltiesand costs unless action is taken to measure andmanage emissions.

This risk comes from the need forcompliance, but also ensuring a competitiveadvantage and generating efficiencies. Togenerate these efficiencies, measuring yourcarbon footprint to understand your startingpoint and monitoring reduction methods on anongoing basis is essential.

Remaining competitive in the currentmarket requires an understanding of yourcarbon footprint – and this demand comesfrom all elements of the supply chain.Investors, financial institutions, charterers andincreasingly industry associations are allevaluating transparency of sustainabilityinformation, including carbon footprint andCSR initiatives and using this as a factor indecision-making. Moreover, charterers areincreasingly scrutinising the vessels that theyhire to ensure that they are contracting onlythe most efficient vessels.

Regulation is another driver and withmention of CECAs potentially adding toexisting regulation including EEDI, SEEMPand EEOI, shipping already has a foundationon which to base its actions. However,compliance with regulation should be seen asa minimum – shipping must go beyond theserequirements.

SEEMP in particular is a great example ofregulation that provides a foundation forcompliance with a monitoring and reporting

process, but developing this further byingraining the principles of measurement andmonitoring emissions and using this acrossyour organisation is the next step – a form of‘SEEMP Plus’ - and one that will benefitindividual companies and the industry as awhole.

Measuring, monitoring and reporting energyefficiency, as SEEMP stipulates, opens thedoor to industry-wide data transparency oncarbon emissions. This will be invaluable forthe successful selection of market-basedmeasures, given that a price on carbon is acertainty in the future. For individual tankeroperators, this process will promote bestpractice standards and enable fair and practicalbenchmarking for genuine emissionsreduction.

It is time to take emissions reduction backto basics and measurement is at the heart ofthis. Standardising measurement is essentialfor shipping to make progress in reducing itscarbon footprint. UNFCCC and EU guidelinesalready provide the foundation for amethodology to work with, citingcompleteness, consistency, cost-effectiveness,transparency and faithfulness as the principlesfor any effective measurement process.

Embedding measurement and thereforeemissions reduction as part of a process withinan organisation demands a level of expertiseand while there is a steadily growingawareness of regulation, abatement measuresand principles, shipping is still very muchundergoing an education.

Expert guidance is therefore necessary toenable you to create a comprehensive databaseof your historical emissions. This will providethe basis for ongoing monitoring on a dailybasis and in line with the Energy EfficiencyOperational Indicator (EEOI), which is atransparent and recognised approach to assessthe carbon efficiency of a vessel.

Experts can also assist you by conducting afull on board energy audit to assess eachvessel’s operational pattern, establish energyconsumption key performance indicators and

identify potential energy saving opportunities.A thorough cost benefit analysis of the varioustechnical and operational measures that willdeliver optimum emissions reduction can thenbe carried out to ensure that the most relevantmeasures for your organisation and fleet areused. Evaluating your baseline carbonfootprint and using this precious data to setrealistic reduction targets that can be met cost-effectively is at the heart of any emissionscontrol programme.

Finally, an outsourced provider can alsodeliver valuable training for on board andonshore personnel of SEEMP and itsprocedures, which will be crucial to trulyimplement energy efficiency measures andachieve reductions across your organisation.

There has been talk of the potential foroverspending on investing in new, superefficient vessels within the tanker sector, butin reality there are many different technicaloptions, including retrofit, that negate the needfor high newbuild capex to be an issue.Crucially, being able to identify thesemeasures and making an informed investmentbased on all potential options is anotherbenefit of conducting a thorough measurementprocess.

*This article was written by HelenaAthoussaki, CEO, Carbon Positive.

TO



The decisions that shipowners andoperators have to make in thesechanging times are unprecedented.When it comes to increasing

efficiencies, reducing operating costs andensuring regulatory compliance, cleantechnology has been dominating headlines.

However, the full spectrum of cleantechnologies is incredibly broad. And to acertain extent the viability and return oninvestment for specific technologies is notwholly clear. This lack of access toinformation makes decision making verydifficult.

But these are decisions that have to betaken. The impending regulations concerningsulphur limits in ECAs, which will be reducedto 0.1% from 2015, the mandatory need forvessels to show a ship energy efficiencymanagement plan (SEEMP), as well asnewbuilds complying with the EnergyEfficiency Design Index (EEDI), makes itunavoidable.

Shipping’s environmental and operationalefficiency clean technology options aresignificant. From scrubbers and ballast water,to hull coatings, emissions monitoringtechnologies, air lubrication, sails, the list goeson. How do shipowners and operators makeobjective decisions on which technologies touse for their fleets?

Ironically, clean technology is the one areawithin maritime where there isn’t a conciseproliferation of information. If you want toknow the current price of bunker fuels inSingapore, or today’s freight rates on thecontainer index there are many internet siteswhere this information is amalgamated.

Clean technology is different. Internetsearches might find various news articlesabout available technologies, or perhaps thecompany websites of some relevant providers.But what will appear is dependant on a lot of

variables – keywords in articles, the levels ofsearch engine optimisation on the sites andwith a high percentage of news articles it maybe that the search turns up a large percentageof newly developed technologies not yet readyfor market. It’s also clear that getting a fullpicture of all the available and applicabletechnologies through the internet would be along process if at all possible.

Proper analysisA significant drawback would also be thelikelihood of analysing the technologies in a‘rose tinted’ way. News releases and companywebsites will inevitably be weighted towardsthe positive aspects of the technology due tothe promotional messages delivered by thetechnology providers themselves.

Often there is little in the way of hard dataavailable for rigorous analysis within theseinformation sources. Even at tradeconferences, while face-to-face debate can befacilitated, you are more likely to be profferedwith marketing materials, or carefully plannedrhetoric that disguises the hard facts that willallow a clear comparison across thetechnology spectrum.

Another issue in deciding which route totake with clean technology is the pace ofchange and development, not just in newtechnologies coming to market, butdevelopments to existing ones; new research,new innovation. The market for cleantechnologies in shipping is constantlyexpanding and evolving, and yet while otherconstantly fluctuating areas of the market havedeveloped data portals to reflect that, up untilnow, there has been no such service fortechnology manufacturers or their customers.

That is why, following the success of ShipEfficiency: The Guide, Fathom embarked on a process to develop this much neededinformation portal for the clean

technology market. The result is CTech, a fully searchable

interactive database of clean technologies thatis constantly updated as developments takeplace. CTech builds upon all the informationthat was compiled for the Guide, updated andexpanded for this new digital medium. Thatmeans users get all the information that madethe guide a success, market readiness, returnon investment periods, and an interactivesavings calculator to estimate potential fueland emissions reductions. Further data is alsoprovided by news articles on the cleantechnology market.

Most importantly, CTech’s powerful searchfunctionality allows users to search using anumber of different parameters, includingspecific technology brands, technology areas,as well as what vessel type the technologiesare applicable to. For example, a producttanker owner can view, contrast and compareall the technologies, which are applicable tohis or her company, without having to filterout those technologies designed withcontainerships, or ro-ro vessels in mind.

CTech is constantly updated by Fathom’sresearchers and editorial team, to ensurecontinual accuracy of information. Technologymanufacturers can also upload – subject toFathom’s editorial policy – developments totheir technologies, case studies and otherimportant information.

Customers and users of technology will alsobe able to share their experiences andtechnologies to share data and case studies. Inessence, CTech is creating an onlinecommunity and forum that encourages debateand sharing experiences on technologies; whathas worked, where improvements can bemade. It is this interactivity and mutualcollaboration that can help to provide thefoundation for objective decision-making.

Filling the cleantechnology

knowledge gapIn this article, Alison Jarabo-Martin, managing director of Fathom, discusses the

importance of having access to the full spectrum of knowledge and insight on cleantechnologies in times of seismic change.

TO


TECHNOLOGY – EMERGENCY RESPONSE

In what is being seen as a keydevelopment in the expansion ofBraemar’s Technical Services (BTS)division, both companies have formed

Braemar Marine Salvage Support Serviceswhich will provide on-site distressed cargomanagement and salvage support services tosalvors, owners and insurers, together withadditional expert technical advisory servicesfrom within BTS, ranging from resolvingLNG operational problems to offshoreengineering solutions.

These services will include the subseasearching for, recovering and processing oflost and sunken cargo; the co-ordination andde-contamination of cargo, the disposal ofhazardous materials; the provision of specialcasualty representatives (SCRs); the supply ofexpert naval architectural services for vesseldamage assessment, re-floating and wreckremoval analysis; as well as pollutionresponse, prevention and tank discharging andcleaning prior to salvage.

Braemar Howells is a provider of incidentresponse, oil and chemical pollution clean-up

and the provision of MARPOL wastereception services. Braemar (IncorporatingThe Salvage Association) is an internationalmarine surveying and marine technicalconsultancy business providing advice to theglobal marine insurance, legal, shipping andoffshore industries.

It has been a busy year for BTS with all fivemember businesses of the Braemar parentcompany’s global marine and offshore servicesdivision undergoing a successfulamalgamation and unit re-branding. Braemar Shipping Services formallyannounced last October that it would boost itsoffering of marine consultancy and offshoretechnical services sectors by bringing togetherits technical business units under the umbrellacontrol of the BTS division. Since then, thevarious business units have been re-branded.

With effect from the end of January thisyear, Braemar Falconer changed its name toBraemar Technical Services (Offshore),(colloquially known as Braemar Offshore);while Braemar Wavespec changed its name toBraemar Technical Services (Engineering), or

Braemar Engineering for short; while BraemarSteege changed its name to Braemar TechnicalServices (Adjusting), or Braemar Adjusting.

Braemar (Incorporating The SalvageAssociation) and Braemar Casbarian, whichalso sit within the BTS division, will maintaintheir identities as before.

With 385 employees, BTS is the largestemployer in the Braemar Shipping Servicesgroup.

Leading consultancyQuentin Soanes, executive director of BraemarShipping Services, said: “The establishment ofBTS was part of Braemar’s continued plan tobe a world leader in marine consultancy andtechnical advisory services to the shipping,maritime legal, marine insurance and offshoreenergy sectors.

“The businesses within BTS are all pre-eminent in their fields and together offer evenmore comprehensive and integrated services totheir clients throughout the global marine andenergy sectors. This new initiative to providemarine salvage support services in tandem

Two Braemarsubsidiaries launch

salvage support Incident response and environmental clean-up specialist Braemar Howells and its sistercompany Braemar (Incorporating The Salvage Association) are to co-operate to provide

a 24-hour global response capability.

Man overboard safety and rescue is our concern and specialty

Hvaleyrarbraut 3 Hafnarfjordur, IS-220

Iceland Tel: +354 5651375 Fax: +354 5651376

Main partners:

UK: Energy Marine Ltd. USA: Marine Rescue Technologies Inc.

Markusnet Type MS is designed for man overboard recovery on all types of ships, offshore installations and dams with less than 40 metre height from water level upto rescue deck or platform.

Markus Scramble net Type SCN6 is a mobile light weight scramble-net / cradle recovery system for deck vessels and offshore installations with either rail or special fastenings inside bulwark where they are to be used. Less than 1/6 of the weight of traditional scramble-nets.

Markus MOB boat rescue-net is light, quick fastening, takes little space, provides easy and fast method to place the casualty in the net, is soft but firm around the casualty, provides easy lift by one or two persons and is easy to repack after use.

[email protected] - www.MarkusLifenet.com

Markus MOB boat rescue-net

Markus Scramble-net

Markusnet Type: MS

TECHNOLOGY- EMERGENCY RESPONSE


with sister company Braemar Howells furtherstrengthens BTS and its ability to service itsglobal client base,” he said.

At the launch of the new service in Athenslast month, Soanes told Tanker Operator thatthe new marine salvage support service wasthe only one that could offer a complete rangeof consultancy. He also said that parentBraemar was still in an acquisitive mood,despite buying several companies during thepast few years.

Braemar Howells can trace its history backto 1948 when the company became thepreferred marine contractor for the UK’sRoyal Navy and its marine support services,especially in and around Milford Haven.

Following the division’s involvement issuch famous casualties as Christos Bitos,Borga, Sea Empress, Ever Decent, Fedra,New Flame, Napoli, Yeoman Bontrup andmore recently the containership Rena, it wasdeemed a natural progression to partner withits sister company to form Marine SalvageSupport Services.

As well as attending casualties, BraemarHowells formed the Marine Pollution SalvageCentre in 1992. The division is a member of

Services offered

� Provision of SCRs.� Processing of recovered and distressed cargo.� De-contamination and waste disposal. � Handling of HNS and hazardous materials.� Naval architects to support salvors.� Naval architecture assessment for wreck

removals.� Project management of third party

contractors, including systems audit and accounts.

� Expert witness advice and review of claims. � Marine oil pollution response.� Pollution prevention and mitigation measures.� Deep cleaning prior to abandonment.� Distressed cargo surveys and documentation.� Marine engineering, naval architecture and

subsea solutions.� Underwater search and survey.� Detection, identification and recovery of

submerged cargo and containers.� Environmental classification and economic

disposal of hazardous and waste materials.

the International Salvage Union (ISU) andholds ISO 9001, ISO 14001 and OHAS 18001accreditations.

The Old Salvage Association, now part ofBraemar, was formed more than 150 years agoand now combines the expertise of navalarchitects Murray Fenton. This divisionprimarily undertakes work for marineunderwriters, P&I clubs, lawyers, localregulatory bodies, as well as shipowners.

This division has already been operatingalongside Braemar Howells in several salvagecases, including that of the Rena, which is stillongoing.

Perhaps Braemar’s most famous tanker casewas that of the Sea Empress, which groundedoff Milford Haven in 1996. Braemar wasappointed by the UK Government to providethe de-contamination and wash down facilityfor those vessels used in the counter pollutionrecovery operations, which took place at sea.

In addition, the division was responsible forthe disposal of waste, together with theprovision of salvage pumps in support of thesalvors and fenders for the ship-to-shipemergency lightening and cargo transferoperation. TO


TECHNOLOGY – EMERGENCY RESPONSE

ASRY acceptsdamaged tanker

challengeFire-damaged chemical tanker Stolt Valor has arrived at the Bahrain shipyard, where the

extent of the damage will be determined.

Vessels entering Paris and TokyoMoU Port State Control (PSC)zones this autumn will faceConcentrated InspectionCampaigns (CICs) on their firesafety systems.

The Paris and Tokyo MoUs have issued astatement saying: “The 43 MaritimeAuthorities of the Paris and the TokyoMemoranda of Understanding (MoU) on PortState Control will launch a jointConcentrated Inspection Campaign (CIC)

with the purpose to ensure compliance withSOLAS Chapter II-2/ Construction – fireprotection, fire detection and fire extinctionarrangements on board ships. This inspectioncampaign will be held for three months,commencing from 1st September 2012 andending on 30th November 2012.”

The CICs will mean that during a regularPSC inspection conducted under the regionalship selection criteria within the Paris andTokyo MoU regions, the fire safetyarrangements, maintenance records and otherapplicable documentation will be verified in

more detail for compliance with SOLASChapter II-2.

Port State Control Officers (PSCOs) willuse a list of 12 selected items to verifycritical areas for the shipboard fire safetysystems, some of which are related todocumentation, equipment and crewfamiliarisation.

For this campaign PSCOs will apply aquestionnaire listing a number of items to becovered during the concentrated inspection.Other MoUs may also carry out a CIC on thesame topic during this period. �

Paris and Tokyo MoUs to conduct jointcampaign on fire safety systems

The 2004-built, 25,268 dwtLiberian-flag chemical tanker StoltValor, has arrived at Bahrain’sArab Shipbuilding & Repair Yard

(ASRY) for repairs, following a fire andexplosion in one of her cargo tanks whiletransiting the Arabian Gulf on 15th March thisyear.

Stolt Valor arrived at ASRY on 28th June inconvoy with the three large tugs.

ASRY’s initial work will include a safetyinspection prior to any further investigation toensure the vessel has no outstanding safetyconcerns. She will then be transferredalongside for a detailed investigation to becarried out in conjunction with the owners todetermine the best course of action goingforward.

Commenting on the job, ASRY’s CEO ChrisPotter said: “Most importantly we arecommitted to protecting the safety, securityand the environment of Arabian waters, towhich Stolt Valor posed a risk. Therefore, asthe most experienced shipyard in the region,we see it as our duty to bring our 35 years ofexperience to bear on this challenging repair,where other yards were not willing.”

Commenting on the vessel’s passage into

Bahrain’s approach channel, Hassan Ali AlMajed, the director general ofBahrain’s General Organisation of Sea Ports(GOP) stated “We are satisfied with theoverall operation which entailed theinvolvement and cooperation of numerousGovernment agencies in ensuring the smoothand successful passage of the vessel intoBahrain’s waters and ASRY. I myself visitedthe ship today (28th June) as it docked inASRY and am confident that the salvagingprocess will be carried out under the higheststandards.”

Bahrain was identified as the bestdestination for the Stolt Valor due to thetechnical capabilities of both the GOP as aregulator and supervisor of maritime safetyand environmental matters in Bahrain and ofASRY’s capabilities and expertise as a worldrenowned shiprepair yard.

Stolt Valor, owned and operated by StoltTankers NV/Stolt-Nielsen Ltd, suffered acargo tank fire and explosion on 15th March2012 while 48 nautical miles south east ofFarsi Island, Iran. She was carrying 13,000tonnes of MTBE (Methyl Tertiary ButylEther), which had been loaded at Al Jubail inSaudi Arabia. MTBE is a volatile, flammable

liquid chemical and petrol additive. The cause of the explosion is still unknown.

Some 24 crew members were rescued by a USNavy destroyer and a US Coast Guard cutter.

Holland’s Smit Salvage was awarded thesalvage contract for the vessel, based onLloyd’s Open Form (LOF2011). Smit wasresponsible for the safe discharge of all cargo,fuel and ballast, prior to towing the vessel toBahrain.

Bahrain and Saudi Arabia were the only twocountries in the Arabian Gulf to offer StoltValor a port of refuge. There was no cargo orfuel oil spill following the explosion, or duringship lightening operations, it was claimed. TO

The extent of the damage can clearly be seen.


TECHNOLOGY- REPAIR AND MAINTENANCE

Based in Groningen, Holland, GGTwas established to helpshipowners meet the many newenvironmental regulations being

introduced in the maritime industry, first offby co-operating with Optimarin in theinstallation of BWT systems.

Complying with the imminent ballast watertreatment (BWT) convention is one of themost pressing issues in shipping and it is inthis area that GGT is focusing. CGT employs3D laser technology for scanning andmodelling to prepare for BWT installations.After making accurate 3D laser scans, theresults are converted into a 3D CAD program.Through this program, various BWT systemscan be compared allowing the shipowner toselect the right system.

Accurate fabrication drawings can also bemade and all of the necessary parts can beprefabricated. It also provides the shipownerwith the flexibility of being able to change thedesign during the process without doing a newsurvey.

Another advantage of using 3D scanningand modelling is that it can be used on sistervessels, greatly reducing the time taken forduel installations. This is one reason whyGGT is now pursuing agreements with entirefleets.

GGT business development manager,Jurrien Baretta said that while 3D modelling isa powerful technology, it needs to be properlyoperated in order to realise its full advantages.“Anyone can buy the technology, but it takesexpertise to use it properly. We have learned alot since we started using it and we now havededicated engineers who know how to use 3Dscanning to its full potential.”

Baretta said Optimarin’s ballast system, andUV systems in general, are effective andsimple and have been implemented with goodresults. But she emphasised that as anindependent player in this market, it is GGT’srole to scrutinise the suppliers and theirtechnologies.

The disadvantage of UV systems is that theyuse more power than many other technologies.This will cost more fuel and in some cases thatamount of extra power is simply not availableon board of the vessel.

“In order to provide the best service to shipowners we have decided to take on anindependent role. That means we have noaffiliations with equipment makers. Our goalis to simply be a knowledge resource for shipowners and assist them to upgrade theirexisting fleet to meet the impendingregulations. There is no single solution that isright for every vessel, so we aim to helpowners navigate the selection process and findthe solution that best fits their vessels andoperations, now and in the future” she said.

There are many variables to consider. Onething that has presented a particular problem isfinding a system that works effectively indifferent oceans with varying degrees ofsalinity. To resolve an industry wide lack ofexperience in this area GGT is heavilyinvolved in knowledge sharing networkgroups.

Market demand“There is a tremendous market demand for afull BWT service provider. GGT’s globalapproach and international team of engineers,technicians and managers, gives clients andshipowners specific engineering expertise anda high level of quality,” said Baretta.

The complexity of the issue and themarket’s underdevelopment has led touncertainty among shipowners as to whetheror not to install a system now or to wait. Onthe one hand the convention has not yet beenratified, so some shipowners see it as anunnecessary cost. But Baretta says the costwill be far greater for those who wait for theconvention to be ratified.

“At this stage it is a matter of when, not if,the convention will be ratified. So it is betterto start now. Shipowners who do so getcheaper prices not only for the system but also

for the associated engineering andinstallation,” she said.

GGT is expecting activity to ramp up in2016 and a last minute rush to come the yearafter. Obviously, this would not be a goodsituation for anyone, as it would lead to abottleneck causing system prices to rise anddowntime for vessels. To avoid such asituation, GGT is now aiming to form fleetagreements that allow for better planning forboth them and the shipowner.

“In order avoid a bottleneck in 2017, we areaiming to make agreements with entire fleets.Fleet arrangements allow both parties to betterplan BWT installations over a five-year periodand take advantage of economies of scale.There is a misconception about the time ittakes to install a BWT system, so shipownersneed to understand that now is the time to startplanning,” she concluded.

Tanker Operator spoke with GoltensWorldwide Group president Paul Friedbergwho explained: “In general, we are notlooking to tie up with many manufacturers andwe have not yet tied up with Optimarin in anyformal way or fashion. We are co-operatingwith Optimarin on certain projects and haveprobably done more projects (design andinstallation) with Optimarin equipment thanany other equipment.

“With respect to Ex proof BWT design (fortankers) this is not a specific field for us, butwe will familiarise ourselves with thistechnology as and when required.

“In general, Goltens Worldwide Group ofcompanies will have a somewhat dividedapproach when it comes to attacking the BWTmarket. From our GGT company in Holland,we will provide design, advisory engineeringand installation, which includes phototelemetry (3D mapping) of the existingdesigns, design engineering, planning andexecution of the installation of a BWT systemanywhere in the world.

“We will of course also be able to provideadvice on types of systems suitable for a

Goltens adds ballastwater systems to its

expertiseIn 2010, shiprepair specialists, Goltens, established GGT Green Technologies (GGT) as

an independent service provider to the ballast water treatment (BWT) market.


TECHNOLOGY – REPAIR AND MAINTENANCE

��

��

particular size and type of vessel. GGT willprovide an independent service, but will useresources in the group for installation of aBWT system as and when required.

“Separate to GGT, the Goltens Group ofcompanies plan to represent up to threeleading manufacturers/brands of BWT systemson a regional basis, which is purely for salesand after sales services. This is completelyindependent of the work GGT is carrying outand it is a firewall between the GGTorganisation and these representations,”Friedberg stressed.

Friedberg agreed that once owners started toinstall equipment in vast numbers, a largeservice market will open up. “We believe theretrofit market will be large, as well as theservice and after sales market. Through ourOEM representations, the target will be torepresent OEM’s for after sales service andspare parts,” he said.

Engine problemsA core business sector for Goltens is toprovide specialist diesel engine repair servicesand, in situ precision machining services. Withthe move towards slow steaming, moreemphasis should be put on engine maintenance

and monitoring. Friedberg said: “Over the last two years, we

have clearly seen a correlation betweenemergency breakdowns of diesel engines andwear and tear on engine parts and slowersteaming vessels.

“The other factor coming in here is ofcourse the newer generation engines utilisingmore sophisticated engine monitoring systems,which will give a better knowledge of theengine condition to avoid sudden emergencybreakdowns.

“In this context condition monitoring is alsomore widely used to plan the service andmaintenance programme as a consequence ofthe condition of the engine rather than therecommended running hours for engine spareparts replacement.

“For a company such as Goltens, the effectwill be more activity related to troubleshooting, engine condition monitoring servicesand as well as in general advisory services forshipowners and management companies. Inthis way we can also better plan the use of ourspecialist resources,” he said.

Turning to new business opportunitiesoffered by the large shipyards opening up inthe Middle East, Friedberg explained that

Goltens Dubai Maritime City (DMC) facility,currently under construction, will in the futureserve as the company’s regional centre ofexcellence for the whole of Middle East.

“Currently we undertaking work from Dubaiboth in Ras Laffan/Qatar and Duqm /Omanand we will continue to do so going forward.However, we will evaluate other servicestations both in the Middle East and elsewherein the world, as we see the need and inaccordance with the market developments,”Friedberg concluded.

Paul Friedberg.

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The purpose of the survey was toinvestigate the approach ofcontainer lines, bulker and tankeroperators to slow steaming,

retrofit, de-rating and upgrade measures takento maximise the return on slow steaming, andevaluation of the results of these measures.

Respondents were asked to answer 25multiple-choice questions and to attach freetext comments where relevant. They were splitinto two groups:1) The 38 respondents who had already

implemented one or more engine retrofit solutions, such as slide fuel valves, turbocharger cut-out, engine de-rating, or propeller upgrade.

2) The 111 who had either not implemented any of the above, but had implemented other solutions, such as hull cleaning.

The results indicated a clear difference inattitude to slow steaming among those whohad implemented engine retrofit solutions andthose who had not. The results obtained fromengine retrofit solutions proved that theoperators had a significantly more positiveunderstanding of the efficiency increases andsavings that can be obtained by taking steps tomaximise the return on slow steaming.

The overwhelming reason for adopting slowsteaming was the promise of fuel savings. Thesurvey revealed that engine retrofit, de-ratingand propeller upgrade measures delivered fuelsavings either as expected, or higher thanexpected. The survey also showed a positivereaction to slow steaming by a large majorityof the global shipping community.

In addition to fuel savings, the opportunityfor better utilisation of existing fleet capacityalso played a significant role in the decision toadopt slow steaming.

More than half of the bulker and tankerowners (54.4%) indicated that they were using

slow steaming in 50%, or less in their vessels,and 26.2% said that they were using slowsteaming in more than half of these vessels. Inthis sector, the number unable to answer wasconsiderably lower at below 20%.

A minority of respondents reported very lowengine loads below 30%, while more statedengine loads between 20% and 40%. Asignificant majority reported engine loadsbetween 30% and 50%, indicating that superslow steaming was not a priority. This wasparticularly evident in bulkers/tankers, eg 10-30%, 20-40%, 30-50%.

A majority of respondents combined slowsteaming with full-load steaming with only 6%employing slow steaming alone. This reflecteda broad need for flexibility, indicating major

interest in the possibility of turbocharger cut-out, or modification solutions.

Fuel cost savings rank as the overridingreason more or less equally between the two

segments – considerers and implementers.This is hardly surprising in the light of theirexpectations regarding bunker costs over thenext two years. Here, more than three out offour of those considering engine retrofitsbelieve that bunker costs will be higher than atpresent with just under three out of four whohave implemented engine retrofit solutionsconcurring.

Bunker cost Utilisation of capacity and avoiding idlingcosts were also important. Again, half as manyof implementers consider greater utilisation ofexisting capacity an important reason. Thereason could be that these respondents haverealised that slow steaming is an effective wayof achieving greater utilisation of capacity.

A significant number considered avoidanceof idling costs to be an important driver.Several customers also noted that a reductionin fuel consumption automatically meant adrop in CO2 emissions. This advantage isobviously of a secondary benefit, but was stillrated as the second-most important reason forslow steaming.

While slow steaming in itself obviouslysaves fuel and reduces emissions, it isinteresting to see to which extent extra gainscould be achieved. The supplier business casefor investing in solutions, such as engineretrofitting, engine de-rating and propellerupgrades appeared to hold water in the vastmajority of cases.

Fuel savingsThree quarters of the respondents reported thatthey had achieved fuel savings as expected byimplementing slide fuel valve and/orturbocharger cut-out solutions. Only 16.2%achieved lower thanexpected savings, whileabout 9% were not able to answer specifically.

Survey showsdifferent attitudes to

slow steamingIn late 2011, MAN Diesel & Turbo conducted a web survey among more than 200

representatives of the global container and bulker/tanker shipping segments. Of these,149 had implemented slow steaming.

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Main advantages of slow steaming asperceived by Considerers andImplementers (%) Respondents were ableto provide more than one answer.


TECHNOLOGY - REPAIR AND MAINTENANCE

The gains are even more pronounced when itcame to engine de-rating and/or propellerupgrades with 87.5% reporting expected fuelsavings and none less than expected. Here,12.5% were not able to provide a specificanswer.

These results confirm the conviction ofnearly one in three of those who have alreadyimplemented engine retrofits solutions of thebenefits of fitting slide fuel valves in oldervessels. Those still considering implementingengine retrofit solutions are less aware of thebenefits of slide fuel valves.

Engine upgrade measuresAnother potential source of savings related toslow steaming is the opportunity to save onexpensive lubricating oil by adapting dosageto the engine load. Here, slightly more thanone in five considerers and only one in siximplementers were seriously consideringcylinder oil optimisation as a means of savingcosts and optimising cylinder lubrication forlow-load operation.

The financial benefits of slow steamingmainly lie in fuel savings, which areadvantageous to the shipping line, or charterer.Indeed, customer perception of slow steamingwas mainly positive with 68.4% of slowsteamers considering the implementation ofengine retrofits stating that their customershave reacted positively. The situation was evenmore pronounced among those who haveimplemented engine retrofit solutions withnearly 73% reporting a positive reaction.

Customer reactionsInterestingly, just over one in four of thoseconsidering engine retrofits said that slowsteaming had no effect at all on shipping rates.Slightly fewer than one in four of those whohave implemented engine retrofit concurred.

Depending on vessel type and operationalpattern, substantial fuel savings can beobtained alone by reducing speed. The fuelsavings directly made a huge impact onemissions, making slow steaming a majorcontributor to compliance with environmentalregulations. Half as many respondents whosaw fuel savings as the main reason foradopting slow steaming also cited emissions.Fleets were doing a lot to limit emissions, butthe connection here is most likely that oflower emissions being a natural consequenceof slow steaming.

Some 78.5% of all respondents believed thatslow steaming made a significant contributionto environmental compliance. The fact thatthere were no significant differences betweenconsiderers and implementers was most likely

due to lower fuel consumption and not as aresult of experience. There were, however,some interesting divergences when it came toenvironmental regulations and how best toaddress these.

The striking difference betweenimplementers and considerers was thesignificantly higher investment ofimplementers in engine-related measures.Answers from implementers were consistentlysignificantly higher than those fromconsiderers. Two significant challenges werefouling of the exhaust gas boiler and sootdeposits on moving parts.

Implementers differed from considerers intheir approach to fouling of the exhaust gasboiler in that only 31.6% managed this viaproactive on board servicing against 41.4% ofconsiderers. Half of implementers also pointedto engine upgrade kits as a response to thischallenge against only 38.7% of considerers.

This might appear obvious in that it seemedto reflect the fact that considerers had not yetadopted engine retrofit, or de-rating. However,it pinpointed an important environmentalchallenge for those who have not yet reapedthe extra benefits from slow steaming offeredby engine upgrades.

The majority of considerers were ignoring away of achieving significant improvementsthat may be required by certain countries andthat offer a fairly short payback time. As forsoot deposits, implementers outdistancedconsiderers with half looking to engineupgrade kits as a means of limitingsoot deposits, while only one in threeconsiderers thought in the same way.

ConclusionSlow steaming has been adoptedincreasingly by the world’s shippingcommunity since 2007. Vesselengines were originally built to runconstantly at full load, which is nowtypically not the optimal operationalpattern.

This constituted challenges to theoperators in order to maximise theperformance and competitivenessunder these new market conditions.

Fuel costs were the driving factorwith a huge majority both of thosewho have not implemented engineretrofits, or upgrades and of thoseagreeing that it was the overridingreason for adopting slow steaming.

There are a number of ways offurther increasing the financial returnfrom slow steaming. These includeslide fuel valves, turbocharger cut-

out solutions, lubrication oil systemupgrading, engine de-rating and propellerupgrading.

Respondents in the survey who had adoptedone of more of these measures were clearlypleased with the results. These measuresenabled more efficient fuel consumption andlubricating oil, as well as increasing engineperformance, adding significant further gainsto the annual savings of millions of dollarsachieved by slow steaming.

Lower fuel consumption also meant feweremissions – a useful side effect in a worldwhere environmental regulations werebecoming ever stricter. Those who hadimplemented engine upgrades rated factorssuch as fouling of the exhaust gas boiler, sootdeposits in moving parts and correctlubrication as far more important focus areasthan those who had not.

Compliance with local environmentalrelations was also important for shipping linesrequiring access to certain countries and ports.There was a significant difference in theapproach to this question by those who hadalready implemented engine retrofits and thosewho had not.

Those who have implemented engineretrofits were more inclined to addressenvironmental compliance by investing inmechanical solutions that were certain todeliver the necessary advantages with areasonable payback time.

The Latest News is now available onTANKEROperator’s website atwww.tankeroperator.com and isupdated weekly. For access to the News just register byentering your e-mail address in thebox provided. You can also request toreceive free e-mail copies ofTANKEROperator by filling in theform displayed on the website. Freetrial copies of the printed version arealso available from the website.These are limited to tanker companyexecutives and are distributed at thepublisher’s discretion.

TANKEROperator

TO



Drawing on OEM reports and itsown engine performance tests,Castrol Marine has strengthenedits conviction that when slowsteaming, optimum performancecan only be achieved by having arange of cylinder oils available.The company said that its research anddevelopment, OEM recommendations, markettrends, legislation and, most importantly,customer feedback, have combined indeveloping its latest cylinder lubricant offer,based on the realities of slow steaming, fuelsulphur content and low feed-rates.

Its investigations show that each vesselshould use a cylinder lubricant based on itspredominant operating conditions and while40 BN cylinder oil suits vessels predominantlyoperating in ECAs, cylinder oils of 70 BN andabove are better suited to those vesselsregularly slow steaming, to ensure piston ringpacks and liners remain in excellent condition.

“The idea of a single, mid-range cylinder oilsolution for all vessels as sulphur limits arereduced may be seductive, but our fieldevaluation shows this does not offer the bestmargin of safety,” said Paul Harrold, CastrolTechnology manager marine & energylubricants.

“Slow steaming has complicated traditional

assumptions concerning engine performancebecause marine engines are not designed tooperate below 85% power for prolongedperiods. At lower loads, the cylinder oil’s feedrate is reduced, reducing the available BN toneutralise acids and reducing the oil filmthickness. This can mean lubricants degrade,increasing the potential for acidic corrosionand increased wear rates. Lower engineoperating temperatures caused by slowsteaming further increase the risk of coldcorrosion,” Harrold said.

For owners, this could mean unscheduledand costly maintenance. Severe cases mayrequire liner and ring reconditioning orreplacement, Castrol warned. “Replacingliners on a 14-cylinder engine could cost over$1 mill,” Harrold pointed out. “Higher BNlubricants provide greater neutralisation andhence better corrosion protection across thefuel sulphur range while slow steaming.”

OEMs confirmed that there is no need tochange the cylinder lubricant if operating in anECA for around 10 – 14 days. Castrol’sexperience has shown that using a high BNproduct for even longer is often acceptablewhen operating in an ECA, especially whenslow steaming.

Fears that high BN cylinder oils may lead todeposits and bore polishing may be

unfounded, the company added. “Reducingspeed by only 3 knots will have the sameimpact in ash reduction as changing from ahigh to a low BN lubricant. When you thinkthat operations in the ECA involve port visitscombined with the current climate of slowsteaming, most vessels will naturally reducetheir speed,” said Harrold.

On this basis, Castrol was confident thatowners specifying higher BN cylinder oils donot necessarily have to change lubricant whenvisiting an ECA. “We are not suggesting that aship has to carry a range of products,” Harroldexplained. “In fact, the majority will carryonly one, depending on their engine andvoyage operating pattern. We have a 40 BNfor prolonged operations in ECA, while ourexisting 70 BN cylinder oil has proven itself inintermittent ECA operation. For the mostsevere applications of optimised feed rates andslow steaming we would considerrecommending 80 BN cylinder oil for manycustomers.

“Our position is that only by having acomprehensive range of cylinder lubricants tochoose from can vessel operators maximisemachinery performance and provide thehighest margin of safety. Castrol will add an80 BN option to its already extensive range ofcylinder lubricants,” Harrold concluded.

Castrol extends lubricants range with slowsteaming in mind

Nakilat-Keppel Offshore &Marine (N-KOM) recently dockedseven LNGCs simultaneously atits Ras Laffan facility.

LNGC repairs have made up almost halfof the projects handled in recent months.

The seven LNG carriers (Al Jasra, AlBidda, Al Wajbah, Dukhan, Al Gharrafa , AlRayyan and Al Thumama) underwentdrydocking repairs, including theoverhauling of the main engine, valves,pumps and other general repairs andmaintenance.

Most of these vessels are jointly owned bya consortium of Japanese shippingcompanies: Mitsui OSK Lines (MOL),Nippon Yusen Kaisha Line (NYK),Kawasaki Kisen Kaisha (“K” Line), with AlGharrafa being technically managed byOSG Shipmanagement (UK).

Meanwhile rival Dubai-based Drydocks

World has announced that it has entered intoa global strategic alliance with Kuok Groupto form a Joint Venture between DrydocksWorld – SEA and Pacific Carriers.

The new venture will subsequently berenamed DDW-PaxOcean Asia and willcontinue to have its headquarters inSingapore.

“We are delighted to have Drydocks Worldas a joint venture partner,” said PacificCarriers’ chairman Teo Joo Kim. “WithPacific Carrier Group’s fleet of vessels andKuok Group’s two shipyards in Chinacoupled with the shipyard facilities andexpertise of the joint venture and DrydocksWorld, I see marvellous opportunity to createvalue for the benefit of the respectiveparties.”

DDW-SEA currently operates fourshipyards in Southeast Asia - the Tuasshipyard in Singapore, and the Graha,

Nanindah and Pertama shipyards located inBatam, Indonesia. Activities at the shipyardsinclude offshore, shipbuilding, repair andconversion. In addition, DDW-SEA also hasa shipping fleet of over 130 vessels.

The agreement is expected to becompleted within the third quarter of 2012.

Meanwhile, Oman DryDock Co located atDuqm, was due to officially open its doors atthe end of June, despite being operational forover a year.

In May, the repair yard received its largestvessel to date when the VLCC Alpha Gloryarrived for drydocking. The repair workincluded the replacement of a large quantityof steel in addition to cleaning the tanks.

At the same time, the yard also receivedthe LNGC Echigo Maru, managed by NYKLNG Management of Japan. The vesselunderwent general maintenance including thereplacement of a large quantity of steel. �

Middle East yards gain contracts

TO


TECHNOLOGY - SEPARATORS

Called PureDry, the new separatorhas the capability to recover re-usable fuel from waste fuel oil. Itrecovers energy by recycling the

heavy fuel oil fraction in the waste fuel oiltank, leaving only super-dry solids that can belanded as dry waste, the company said.

With its waste fuel recovery (WFR)capability, Alfa Laval claimed that a directsaving of up to 2% on fuel bills can beachieved. The company also said that theinvestment will also pay for itself within thefirst year of operation, as well as savingmoney on fuel.

Waste fuel oil is the result of settling andday tank drainages, leakages, filters andpurifiers and is currently collected in the wasteoil tank and subsequently landed ashore, orincinerated on board.

Alfa Laval’s new WFR concept involves theinstallation of two waste oil tanks – one forlube oil and the other for fuel oil. Thecompany pointed out that some vessels arealready fitted with this tank arrangement.

Although the waste fuel oil tank appears tojust contain black oil, it is actually pollutedwater containing 20-30% energy in the formof recoverable fuel oil. The remainder is 70-80% oil polluted water, while accumulating atthe bottom of the tank is about 1% suspendedsolids.

Claimed by Alfa Laval to be the first trulytechnology for waste oil treatment, thePureDry separator recovers the fuel oil fromthe oily water in the waste fuel oil tank, whichis then returned to the fuel oil tank afternormal treatment.

This process reduces the waste oil volumeby 99%, producing typically 5-15 kg per daynon-pumpable ‘super dry’ solids that can beput ashore as dry waste and disposed of in thesame way as oily rags and used filtercartridges. There are no oil losses, or

additional waste generated, the company said.The separated water, which has an oil contentof less than 1,000 ppm is pumped to the bilgewater system.

Quick paybackAlfa Laval calculated that once an existingvessel had been retrofitted with a PureDrysystem and the two separate tanks, during thefirst year of operation, the fuel savings willpay for the equipment and tank installations.For a newbuilding, theprofit is higher as thecapital cost mainly consistsof the separator system.

In addition to fuelsavings, there will also besavings on waste oilincineration and landing fordisposal, while in the caseof newbuildings, thevolume of the waste wateroil tank can be halved, thussaving space, the companysaid.

A second separatorsystem can also be installedfor waste lube oil to reducethe volume of waste andsave on incineration andlanding costs. However, ifthere is spare capacity inthe PureDry for waste fueloil, this could be used totreat the lube oil.

The system is alsoclaimed to be solve theproblem of the waste oiltank filling up, as the wasteoil is treated instead ofbeing stored forincineration, or landingashore.

If a vessel’s oily water separator (OWS)malfunctions, the bilge water goes into re-circulation and fills up the bilge water tank.When it is full, the content is usually pumpedto the waste oil tank. When the waste oil tankis full, the vessel has a problem, as theincineration of the waste oil means burning upto 80% water, adding to the cost of diesel fuelused in the process. In situations like this,environmental infringements may occur bydumping the waste oil at sea.

New separatorrecovers re-usable

fuel oilDriven by the fact that shipowners are now allowed to re-use waste fuel, Alfa Laval has

introduced a high speed separator, which is claimed to be able to save owners andoperators up to 2% on fuel consumed.

Alfa Laval’s PureDry separator.

TECHNOLOGY – SEPARATORS


In addition, there are issues with landingwaste oils ashore, as many ports still do nothave reception facilities. For example, inCalifornia, waste oil cannot be handled and iflanded, must be trucked to a neighbouringstate for disposal at cost.

In some ports, it is possible to sell the wasteoil for around $110 per tonne, although theprice will depend on the water content. Inthese cases, shipowners will end up getting

paid for oil that they originally purchased atthe full price. They are selling it on at a hugediscount when they could use it themselves,Alfa Laval said.

PureDry is claimed to have accurate flowmetering in the EPC 60 control unit. The feedis monitored, recovered oil and water ismetered, while a load cell registers when thedry solids container is full. The information isdigitally recorded for presentation to the

authorities for example,during a Port State Controlinspection. The fuel hasbeen recycled, but no oilywaste is missing from theOil Record Books, as therecovered oil has beenmetered and logged.

According to MARPOL –MEPC.1/circ 642, since2008, the recovery and re-use the HFO part of thewaste oil as fuel for theengines has been allowed.‘Regeneration of oil residueshould be an approvedmeans of disposal of oilresidue according to thesupplement to the IOPPCertificate’.

Another driver forPureDry’s development wasMARPOL Annex VI, whichprohibits the incineration ofoily wastes in ECAs,meaning that fewer ownerswill be fitting incineratorsand even larger waste oiltanks will be required.

Exchange kitIn parallel with PureDry’sdevelopment, Alfa Laval

developed a module-based maintenanceconcept – Maintenance and Service byExchange (MSE). The new separator comeswith the exchange kit, which includes a newseparator insert – rotor and disc stack, a newXCavator and a consumables kit. A majoradvantage of the separator is that it has nointernal moving parts, the company said.

The Xcavator is Alfa Laval’s patentedspiral-shaped device for transporting thesuper-dry solids to the base of the machinewhere they exit below into a container.

Following 12 months of operation, thevessel’s crew will replace the separator insert,as easily as replacing an insert in a filter andthe XCavator unit. The used parts will bereturned to the nearest Alfa Laval servicecentre and the shipowner orders a newexchange and consumables kit.

“The customer is not purchasing new parts –we supply the kit at an exchange price,” saidPauli Kujala, Alfa Laval’s senior businessmanager, oily waste treatment systems. ”ThePureDry separator remains under continuouswarranty. This is virtually all that needs to bedone to keep the equipment in good operatingorder. The aim is to give the customers theopportunity to budget and maintain a fixedoperating cost.”

CBM systemFor operational security, the separator isequipped with an integrated condition-basedmonitoring (CBM) system that recordstemperature and vibration through the EPC 60control unit. The system can give the crew anearly warning alert, or close down the wholeoperation, if the running conditions shouldsuddenly deviate from the specifications.

Action can then be taken based on theCBM’s recommendations, such as running theCleaning-in-Place (CIP) process, or exchangea component using the exchange kit.

The PureDry separator remains under continuous warranty. This isvirtually all that needs to be done to keep the equipment in good

operating order. The aim is to give the customers the opportunity tobudget and maintain a fixed operating cost.

“

”Pauli Kujala, senior business manager, Alfa Laval

TOCut-away for the PureDry separator.


TECHNOLOGY - SHIP-TO-SHIP TRANSFER

Justify yourdecisions, focus on

operationsFor various practical and commercial reasons, ship-to-ship transfer operations (STS)

have become remarkably popular lately, a situation which is likely to continue.

As a consequence, a number ofsafety and pollution issues wereconsidered and as result, the IMOresponded with a new regulatory

framework. Although STS operations haveproved to be safely conducted without anysignificant incident over a long period of time,undoubtedly they have the potential for a largescale pollution incident, should soundmanagement not be applied to all aspects ofsuch operations.

DYNAMARINe organised a sponsoredevent on STS on 19th May 2012 entitledINTERNATIONAL FORUM ON STS 2012.Panel speakers addressed issues related toshipowners’ liabilities, operational proceduresby STS service providers, statutorycompliance, screening and risk assessmentmethodologies that are currently being utilisedby shipowners engaged in STS operations.

The event was organised after the awarenessof delegates of the new MARPOL ChapterVIII of Annex I from the previous STS event

organised on 3rd March, 2011 jointly by theUK P&I club and DYNAMARINe.

Dr Alexandros Glykas representingDYNAMARINe in the welcoming speech tothe forum said: “Dynamarine was given themomentum to proceed further and inform themaritime community and associates key sectororganisations on their concept of screeningand risk assessment; a materialised conceptwhich started from an idea back in 2007 andwas eventually presented to the maritimecommunity after a long research anddevelopment period.”

Since 1st April this year, the new MARPOLChapter VIII Annex I has been implementedfor all participating vessels. The requirements,or facts introduced by the new regulations,directly or indirectly are the following:

Shipowners must have policies andprocedures in their STS plans, which havebeen approved by the flag administrations.

Records of STS operations must be retainedfor three years, thus they can be assessed, and

reviewed. The lessonslearned along withgood practices, will beincluded within theSTS plans. Requested charterers’clearances fromowners forparticipating vesselsbecame a standardpolicy, in order tokeep away from, orshare liabilities; anaction that has beensupported andstrengthened by thenew MARPOLchapter, sinceshipowners bear theliability for the safe

conduct of STS operations.OCIMF has issued proposed policies

towards STS service providers for self-assessment procedures and KPI’s. Therefore,the proposed quality assurance as perparagraph 2.5 of latest STS OCIMF/ICSguidelines will have to consider the policies.

POAC’s qualifications have been explicitlyprescribed in Manual on Oil Pollution, SectionI, “prevention of pollution”.

According to Dr Glykas, there are certainreservations, which have arisen from the newrequirements, such as:� Will the above mentioned requirements

complicate the STS operations for all stakeholders?

� What is the shipowner’s further liability and by what means and actions will this liability be covered?

� What is the associated risk that the shipowners’ take and how could this be mitigated?

� Do STS service providers envisage any change in their role, liabilities and logistics in their day to day job?

The theme of the new regulations is a clearstep towards the reduction of accidents andespecially towards reducing their effects onhumans, the environment, as well as assets, asmentioned by Panayiotis Mitrou of LloydsRegister Hellas. In practice, however,successful implementation requiresdemonstration of adequate care, or even better“sound management” by shipowners and thisis directly associated with the “prudentexercise of due diligence”.

Normally, in order for a decision to betaken, all alternatives should be reviewed anda complete risk assessment should be planned.However, such a risk assessment in the case ofan STS operation requires the examination andanalysis of historical records of past STStransfers. IMO resolution and Chapter VIII of

STS operational problems were addressed at a seminar in Athensrecently, organised by DYNAMARINe

TECHNOLOGY - SHIP-TO-SHIP TRANSFER


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MARPOL Annex I is clear; STS recordsshould be kept for three years. It is evident foreverybody that once records are available,these should be assessed and lessons, or bestpractices should follow.

Operations databaseIn order that shipowners can take advantage ofpast experiences in STS operations, theoperation must be recorded. For this reasonOSIS (Online STS Information System) wasintroduced and currently about 15 shippingcompanies participate in the scheme. AsDYNAMARINe’s Dr Stelios Perissakisexplained, “OSIS is a database enhanced withpolicies and procedures. It is a platform,which has a goal to support future safety andsound management, as well as decisionmaking activities. OSIS not only includesdata, it also includes the whole concept ofcollecting and validating the acquired datafrom STS operations.

“It incorporates the handling of the data andthe procedures and limitations of processingthem. OSIS is beyond a data collectionplatform, it is a complete assessment tool andits goal is to fully support assessment of STSoperations,” Dr Perissakis said.

One issue that was pointed out was thatOSIS’ data property issue. It was explainedthat all assessment data is commerciallysensitive and thus property remains with thecompany that enters the assessments intoOSIS. The only data that may be exchangedbetween the users is statistical andconsolidated data; not the assessmentsthemselves. An example of STS consolidatedassessment data may be found atwww.onlinests.net/index.php?option=com_overall.

OSIS has integrated all the automated andreliable procedures that are most likelyrequired. It is a complete assessment tool and

its function is to fully support the assessmentof STS operations. The assessments entered inOSIS take into account all parties involved inthe operation. Implementation is claimed to beuser friendly without adding any work toshore operators. Automatic notifications havebeen incorporated in case the findings needsupplementary action. KPI’s are also proposedand supported by the assessments.

Liability increasedFrom a legal point of view, the new regime inSTS operations will increase owners’liabilities in STS operations, as pointed out byGeorge Miltiadis Aspiotis of John G Hadjis &Partners.

Aspiotis said; “A basic principle is thatresponsibility during STS operation restsalways with the tanker owner involved in theoperation and could not be forwarded, orhoisted by any means to any sub-contractor, orother participant. Therefore, all tanker ownersshould exercise (and be able to prove theyhave in fact exercised) due diligence as far asa specific STS operation is concerned to thesatisfaction of their H&M and P&Iunderwriters.

“In order for tanker owners to do that, apartfrom the development of a proper andapproved STS plan, they must always performbefore an STS operation, a thorough screeningwith respect to the participating parties (ieservice providers/POACS/daughter vessels) toensure that these participants fully complywith the resolution requirements. Suchscreening of course can be made throughexperts who specialise in such matters,” hesaid.

Apart from liabilities associated with theshipowners, there were concerns expressed byCapt Bob Gilchrist from SAFESTS and CaptRaymond Ambrose from Shipload MaritimePte associated with the role of a POAC in the

STS operations under the new regime. Thereis specific wording in the POAC qualificationswithin the Manual on Oil Pollution, section 1,§ 6.2.1.2 that may initiate liabilities from thecoastal states for POAC’s.

Considering the logistics of the STSoperations, it is not practically feasible for thePOAC to have a thorough knowledge of bothparticipating vessels’ STS plans prior to thecommencement of the operation, or be able toensure various safety provisions that should beheld under the operational responsibility of theMaster of the vessel. Furthermore, if the STSplans are not followed, in addition to thevessels responsibilities, the POAC might beheld accountable by the coastal state for anincident.

For this reason and in order to protect theirliabilities, some STS service providers issueLOIs to their contractors, or shipowners, inorder to be indemnified in case of an accident.However, this practice is not accepted by theP&I Clubs that cover shipowners’ third partyliability as explained by Nick Milner fromThomas Miller UK P&I Club. In cases whereLOIs were passed onto shipowners, theyshould seek advice from their P&I Clubs.

The theme of IF STS 2012 addressedshipowners. “JUSTIFY YOUR DECISIONS,FOCUS ON THE STS OPERATION,SUPPORT YOUR REPUTATION”. As thereis no international regulatory body forcontrolling the performance of STSoperations, responsibility for safety remainswith the participating stakeholders. It is theirduty to ensure that sound management takesplace at all stages of the operation on aproactive, as well as post phase operation andbe able to prove that they do so.

Finally, DYNAMARINe representativessaid that they intend to organise an STS eventannually in different maritime hubsworldwide. TO


TECHNOLOGY - TANK SERVICING

Absorption/desorptionin tank linings

This paper, edited by Gard Reian of Jotun Coatings R&D department*, looks at theabsorption/desorption of different cargoes in two different no-volac epoxy tank linings.

Investigations show that the degree ofabsorption is highly dependent on thespecifc cargo and its chemicalfunctionality. It was also seen that

absorption/desorption testing alone cannothelp differentiate between the quality ofdifferent coatings.

Chemical tankers are built to carry a widerange of chemicals worldwide, includingpetroleum products, specialised chemicals andfoodstuffs. Some of the more specialist switchfrom one type of cargo to another in each port.It is important to try and understand theabsorption mechanisms in order to avoidcross-contamination and/or premature paintfailure.

It is also important to understand ifabsorption testing alone can tell us anythingabout the overall quality of a coating system.

Two different, two-component, novolacepoxy tank linings were investigated;

Novolac 1 and Novolac 2, as in contrast to‘standard’ epoxies, which are diglycidyl ethersof either bisphenol-A or bisphenol-F, Novolacepoxy resins are glycidyl ethers of phenolicnovolac resins. These generally have higherfunctionality and give more cross linking andsubsequently a better chemical resistance.

They were applied on Mylar® polyesterfilm for easy removal. After application, thecoating was cured for seven days at 23 deg Cand three days at 60 deg C. During theabsorption period, the coating squares wereimmersed in water (Artificial seawater wasmade in according to ASTM D 1141. Brackishwater was made mixing the artificial seawaterwith distilled water in the ratio 1:1), ordifferent organic solvents in closed containers.The samples were removed at intervals forweighing. All surface liquids were removedand samples wiped off with a dry paper towel.Weighing was performed using an analyticalbalance to ~0.1 mg.

During the desorption period, the coatingwas left to ventilate in about 23.1 deg C andweighed periodically until equilibrium wasreached.

For chemical exposure testing 150 x 75 x1.5 mm steel panels, with a surface profile of

70 um and a cleanliness of Sa 2.5 (ISO 8501-1:2007), were coated with Novolac 1 andNovolac 2, respectively. The dry filmthicknesses averaged around 300 um. Severalpanels of containing each paint were tested toensure authenticity.

DefinitionsSorption describes the combined processes ofadsorption and absorption.[2] Adsorption isthe physical adherence or bonding of ions andmolecules onto the surface of another phase.Absorption is the incorporation of a substancein one state into another of a different state.For the sake of this article it is assumed thatthe migratory process is purely absorptionaland all the molecules contributing to weightgain are incorporated in the free volume of thecoating film.

Desorption is a phenomenon whereby asubstance is released from or through a

volume. The process is the opposite ofsorption (that is, either adsorption andabsorption). This occurs in a system being inthe state of sorption equilibrium between thebulk phase and an absorbing volume (coatingfilm). When the concentration (or pressure) ofsubstance in the bulk phase is lowered, someof the sorbed substance changes to the bulkstate.

Some of the most important factorscontributing to the degree of absorption into acoating (and following desorption) are -temperature, functional groups and molecularsize of the absorbed substance.[3]

In high temperature conditions, theabsorption rate most often increases as doesthe desorption rate, due to increased molecularmovements at higher temperatures.

The absorption and diffusion of water inpolymeric materials, such as epoxy systems isrelated to the free volume[4,5] and the

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TECHNOLOGY – TANK SERVICING


polymer-water affinity[5,6]. It is natural to assume that this is also true

for other chemical species than water.Methanol and ethanol are related to water inthat they are both polar protic molecules (candonate a hydrogen to form a relatively stronghydrogen bond with the hydroxy and aminegroups in the polymer network).[7] 1,2-Dichloroethane (EDC) and tetrahydrofuran(THF) are slightly polar but they are aproticand cannot form hydrogen bonds. When thecoating is immersed in these chemicals theyfill the free volume.

Even though they cannot form hydrogenbonds, they can still disrupt the polymerchains as they show more affinity towards thelargest part of the polymer network, the partsnot containing hydrogen-bonding sites. Thesenon-polar link sites consist of alifatic chainsand aromatic rings. They have affinity towardsdipoles of the polymer chain through relativelyweak dipole-dipole forces or induced-dipoleforces. These forces are often called Londondispersion forces, or van der Waal’s forces.[8]An example of how the structure of an aminecured Novolac epoxy polymer network mightlook like is shown in Figure 1.

The amount of free volume depends on themolecular packing and is affected by both the

crosslink density (and therefore the extent ofcuring) and physical aging[9]. The polymer-water affionity is significantly influenced bythe presence of hydrogen-bonding sites withinthe polymer[10]. Water can sometimes beabsorbed without causing swelling; when thishappens, it is suggested that it remainsunbound to the polymer and is effectivelyaccommodated within the free volume[6].

On the other hand, bound water moleculesthat attach to the polymer through hydrogenbonds disrupt the interchain hydrogen bondsand induce swelling[10,11] and plasticise thepolymer. In a Novolac epoxy binder networkthe hydroxyl (-OH) groups shows goodaffinity with chemicals containing -OHgroups.

Other than functional group effects,molecular size plays an important role in theprocess of absorption. Molecules that arelarger than the “mesh” of the polymer networkwill not absorb into the volume at all. Somemolecules might adhere to the surfacestructure, but the weight increase caused bythis will, in the case of thick coatings, benegligible compared to the weight of the non-absorbing volume.

Results

In the absorption/desorption of water Novolac1 was immersed in water with different levelsof salinity. The results are given in Figure 2.From this, we see a clear link between waterabsorption and level of salinity. Tap water anddistilled are quite similar and give the highestweight change. Sea water shows the lowestabsorption and brackish water comes in-between.

During the second absorption cycle, we seethe same trend with sea water giving the leastweight increase, but the overall rate ofabsorption has slowed down a little, usinglonger time to ‘saturate’ the coating. No datawas obtained for brackish water during thesecond absorption/desorption cycle, as adamage in the coating caused rust to form,making the weight measurements unreliable.

Interestingly enough, the desorption rate isquite fast and most all the water left thecoating within 24 hours of ventilation. In otherwords, by using Novolac 1, a tank can be putinto service quite fast after sea trials, or afterwater washing. Water absorption/desorptionwas not tested for Novolac 2, but similarresults could be expected.

Different molecules have different size anddifferent affinity to the epoxyamine polymernetwork, and will subsequently absorb

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Figure 2: The two cycles of absorption-desorption of watersolutions with varying degree of salinity in coating “Novolac 1”.

Figure 3: The absorption-desorption curves of various organicsolvents in coating “Novolac 1”.

Figure 4: The absorption-desorption curves of various organicsolvent in coating “Novolac 2”. Figure 5: Novolac 1, methanol, 1st cycle.


TECHNOLOGY - TANK SERVICING

differently. In Figures 3 and 4 this effect canbe easily be seen. Both EDC and THF show alarge absorption relative to methanol andethanol for both coatings.

For methanol and ethanol a negative weightchange was observed during the desorptionphase. It was important to test if this netnegative desorption increased further during asecond absorption-desorption cycle as thiswould suggest a systematic breakdown of thecoating (or to be more exact, the coating’sorganic polymer network).

From the two absorption/desorption cyclesfor methanol and ethanol for Novolac 1, it canbe seen that the net negative desorption doesnot increase further, suggesting that asystematic breakdown is not taking place, butrather that some rest solvents and/ormonomers are extracted from the coatingduring the liquid immersion of the firstabsorption cycle.

This can be seen even more clearly by

splitting up the two cycles and shifting downthe abscissa of the second absorption-desorption cycle (see Figure 6). A GC-MSanalysis confirmed that the negative weightchange was due mostly to trapped solvents,extracted by the polar medium.

Comparing Figure 5 and Figure 6 it can beseen that net weight gain during the absorptionphase is larger in the second cycle. This is asexpected, seeing that unreacted componentswere extracted during the first absorption/desorption cycle, leaving more free volume inthe polymer network available for absorption.A promising result is that most all themethanol has left the coating after only oneday in air.

The fact that the net negative weight is quitesubstantial during the firstabsorption/desorption cycle, but not thesecond cycle, indicates that it might beadvisable to wash down a tank liningthoroughly with a polar solvent before it goes

into service, especially if foodstuffs are part ofthe cargo carried.

It is reasonable to assume that water willhave the same washing effect as a lowmolecular polar solvent like methanol. Forboth 1,2-dichlorethane and tetrahydrofuran thenet weight gain during absorption is quitesubstantial for both Novolac 1 and Novolac 2.The absorption curves seemingly reachesequilibrium after one to two weeks ofimmersion.

During the desorption phase however,Novolac 1 differs from Novolac 2.Interestingly enough, it seems that Novolac 1reaches equilibrium faster than Novolac 2during desorption. While Novolac 1 seems toreach equilibrium after just one to three daysdepending on the chemical, Novolac 2 has notreached equilibrium after 10 days, asfollowing this period, solvent is still trappedin the network.

While Novolac 1 seems to show a higherdegree of absorption, the desorption iscorrespondingly fast meaning that Novolac 1probably has a slightly more open network.

For long-term chemical immersion testing,based on the absorption testing describedabove, it could be thought that perhapsNovolac 2 is a better coating material, seeingthat the net weight gain during absorption islower for Novolac 2 than for Novolac 1 for allchemicals.

To further test this assumption, steel panelscoated with Novolac 1 and Novolac 2 wereexposed to different chemicals, including acyclic methanol fatigue test (5 days inmethanol - eight hours ventilation - two daysin water - eight hours ventilation; repeated forup to 10 cycles). The results are given below.

It can be seen from these results that there isnot much difference between the two coatings.They both withstand aggressive chemicals,quite impressively, for 180 days. However, formethanol fatigue, which is a maximum stresstest, Novolac 1 showed no sign of failurewhile Novolac 2 blistered and rusted severelyafter only two cycles.

So even though Novolac 1 shows asignificantly higher absorption than Novolac 2(compare Figure 3 and Figure 4), this alonedoes not tell us that Novolac 2 is a bettercoating. Quite the opposite, the methanolfatigue test shows that Novolac 1 is probably abetter coating.

One explanation for this is that Novolac 1has perhaps a slightly more open polymernetwork allowing for fast desorption, but isstill tightly cross linked enough to ensure agood chemical resistance. Novolac 2 mightsuffer from being too tightly cross linked, and

Chemical Novolac 1 Novolac 2

Methanol OK, 180 days OK, 180 daysEthanol OK, 180 days OK, 180 daysEDC OK, 180 days OK, 180 daysTHF OK, 180 days OK, 180 days

Distilled water, 60�C OK, 180 days OK, 180 daysMethanol fatigue OK, 10 cycles Fail, 2 cycles

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Long-term chemical exposure testing.

Figure 6: Novolac 1, methanol, 2nd cycle.

TECHNOLOGY – TANK SERVICING

The company has entered intoadditional agreements for itsEcoSOLUT tank cleaning productsin the maritime sector for a total

turnover of €1.6 mill. This came only fivemonths after gaining IMO approval for itsproducts.

Through its UK subsidiary, the group hassigned a distribution agreement for the tankcleaning products with Uniservice GermanyMarine Products GmbH. Uniservice Germanyis a licensee of Uniservice SA in Geneva, thefourth largest supplier to the shipping industrywith branches in over 785 ports worldwide.Also affiliated with Uniservice Germany areOslo Ship Service and Hansa Safety inRotterdam.

In addition, a distribution agreement wassigned with OSEC (Oil Spill EnvironmentalCleaning), a specialist in tank cleaning and oildisposal, with offices in Greece and thesoutheastern Mediterranean region.

Over the past few months EcoSOLUTproducts have been used by various shippingcompanies, including Maersk and Waterfront

and repeat orders have been placed. Demand for the products has increased

significantly, requiring the company to expandits international distribution network as amatter of priority. Together with the firstorders from Canada for the treatment of oilsands and drilling muds, total purchase ordersreceived during the second quarter of this yearamounted to €2.2 mill.

“With Uniservice Germany and OSEC wehave managed to secure two well known andexperienced partners in important markets forthe distribution of our products”, StephanRind, chairman of OTI Greentech said on theexecution of the two new agreements.

“Demand for our EcoSOLUT products, inparticular in the tank cleaning sector, hasexceeded our expectations. With our newpartners we are, however, well prepared tosatisfy this demand.”

Christopher Cappelen, managingshareholder of Uniservice Germany, said: “Iam very pleased to include the EcoSOLUTproducts in our product offering for ourdemanding clients in the shipping sector. The

products set new standards in cost efficiency,safety and environmental friendliness in thetank cleaning sector.”

OTI is an international clean technonolgyengineering group based in Switzerland. Thecompany provides environmentally friendlysolutions and a patented technology forcleaning, recovery and disposal of oil in awide variety of applications, including themarine sector.

Uniservice Germany Marine Products isheadquartered in Hamburg, Germany. It isprivately owned by Cappelen and is a licenseeof Uniservice SA, who own and control theUniservice trademark worldwide.

While Geneva-based Uniservice haslicensees covering 785 ports worldwide,Uniservice Germany has exclusive rights tothe Uniservice trademark in Germany.Moreover, Cappelen is a licensee to theUniservice trademark in nine other countries(Norway, Baltic States and CIS) through hisprivately owned Oslo Ship Service and HansaSafety Services.

Tank cleaning andwaste disposal firm’sEuropean expansion

OTI Greentech has increased its market presence in the maritime sector by signing further agreements.


TO

subsequently more brittle, and can thereforenot handle the same degree of chemical stress.

ConclusionsThis work has raised a lot of new questions,but it has answered some as well. First,it is evident that absorption/desorption testingalone is not enough to differentiate on qualitybetween different tank coatings. It was foundthat even though the relative absorption ofNovolac 1 was high compared to Novolac 2,Novolac 1 was the overall better performer inthat it had a faster desorption rate (fasterreturn to service) and a better overall chemicalresistance.

It was also shown that the degree ofabsorption is highly dependent on the specific

cargo and its chemical nature.

References[2]Sax, N.I.; Lewis, R.J.L. Sr. Hawley’s

Condensed Chemical Dictionary, 11th edition; Van Nostrand Reinhold: New York,1987.

[3]Abdelkader, AF.; White, JRJ Appl. Polym. Sci., 2005, 98, 2544.

[4]Duda, JL; Zielinski, JM In Diffusion in Polymers; Neogi, P, Ed.; Marcel Dekker: New York, 1968.

[5]Van der Wel, GK; Adan, OCG Prog. Org. Coat., 1999, 37, 1. 9

[6]Van Landingham, MR; Eduljee, RF; Gillespie, JWJ. Appl. Polym. Sci., 1999, 71, 787.

[7]Carey, FA; Sundberg, RJ Advanced OrganicChemistry, Part A: Structure and Mechanism, 4th Ed.; Kluwer Academic, New York, 2000.

[8]Zumdahl, Steven S Chemical Principles, 4th Ed.; Houghton Mifflin, Boston, 2002.

[9]Struik, LCE Physical Aging in Amorphous Polymers and Other Materials; Elsevier: Amsterdam, 1978.

[10]Adamson, MJJ Mater. Sci., 1980, 15, 1736.

[11]Wong, TC; Broutman, LJ Polym. Eng. Sci., 1985, 25, 529.

*Gard Reian M. Sc. Senior Chemist, R&DSpecialty Products, Jotun Coatings. Contact [email protected]

TO


TANKER OPERATOR CONFERENCE

Making money in atough market

In the second and concluding part of Tanker Operator’s Athens conference (see TankerOperator, May, page 63), speakers and panellists covered a variety of subjects aimed at

survival in today’s tough market.

This survival instinct comes at atime when investment in newtechnology has never been higher,mainly driven by regulatory

bodies. Innovation could be one of the keys tosuccess.

Emmanuel Vordonis summed up bysaying; “We have to cope with investments,which have cost a lot of money. We have to besmart enough to cope with the capitalenvironment.

“In the 1990s, when we wanted to cut costs,everybody was getting angry. We focussed onreducing mis-performance, for example,anchors lost, ships arriving late, just vesselsbreaking down.

“We had a campaign of reduction ofmistakes. We know we cannot achieve it withsmart ideas and young guys from Harvard. Weneed people on board to be committed andlove what they are doing. It is not an issue offinding the good people and managing themwell - it is an issue of managing the completeteam.

“Dinosaurs died because they had a very bigbody and a small brain. Every instrumentneeds to work efficiently.

“A factor of sustainability will be a trueinspiration. You can’t have an inspired man towork on the open seas, unless he feels he isimportant. The most important factor is tolove, respect and believe in the people - to bea strong team. This is should be the profile ofa company in the next five years,” he said.

“Innovation is useful - but is innovationonly about technology?” he asked.

He gave an example of a super chartererwho said, ‘I’ve sold to China 10 mill tonnes ofiron ore at $300 per tonne. Then I went toBrazil and bought 10 mill tonnes at $150 pertonne. I went and fixed 50 ships to move theiron ore at $80,000 per day and had $20 pertonne left for me.

‘Then the Chinese said, listen we cannotpay $300 mill per tonne anymore. We want topay $150 per tonne’.

Now everybody is chasing each other incourt.

This is where the word innovation canwork. This is teaching that our system is notadequate to sustain such huge shocks. Can wecontinue with antagonistic contracts? Or lookfor synergies with big shipping communitiescloser to cargo communities. Createsustainability for both.”

Vordonis continued; “We have been infectedby this environmental hyper activeness. Wehave been overdriven by Mr Gore. Noweconomies are suffering - are we now in aposition of overspending for these super-efficient ships, ballast water treatments, etc?Instead of remaining static, regulations aremoving too fast.

“Let’s do what is necessary to protect ourchildren but do not go too far, otherwisemillions of tonnes of steel will be scrapped forno purpose,” he concluded.

Lambros Babilis, CEO StealthGas said thata plethora of regulations, voluntary schemes,statutory requirements, vetting schemes,vendors of equipment and consultantsbombard shipowners and shipmanagementcompanies daily.

Today a management team has to contendwith ISPS, SEEMP, EEDI, ECDIS, EIAPP,NOx and Sox emissions, carbon footprint,BNWAS, MLC, ballast water treatment, ISO9001, ISO 14001 and ISO 50001.

All of these lead to various problems ofcompliance, adoption, cost control andefficiency. In a challenging marketing like theone we face today, the answer is neither easynor a simple one.

The credit crunch in the financial sectormakes the problem even worse while wrongdecisions may impose a heavy economicalburden to the shipping companies. In thisrespect hasty decisions should be avoidedwhile on the other hand lack of action is not aprudent decision either.

Early adoption of innovations is not alwaysthe best solution. It may be used as a

marketing tool to imply dedication to qualityand safety but there are plentiful occasionswhere adopted new, so called innovativesolutions do not prove themselves but have theopposite effects. Furthermore, it is quiteunderstandable that early adopters do carry theburden of R&D until new technology becomescommercially available and widespread.

One such example are ballast watertreatment systems. Currently there are about30 plus of approved systems. The more thatget approved the lower the price becomes.Unfortunately, there are companies that havebeen advertising their systems, which havefinally abandoned their plans without gettingtheir systems approved and there is also a realdanger of already approved systems becominga commercial failure and having to beabandoned within a few years after beinginstalled on board vessels, leaving the ownerstotally exposed.

Another example is the emergence of fuelefficient ships. Fuel efficient ships, comparedto the vessels ordered at the peak of themarket, do not only cost half the price of thoseordered during the boom but also havesignificantly reduced fuel consumption thatmay lead to a two-tier market provided fuelprices continue to rise.

In this case the long-term impact of thenewer generation of fuel-efficient ships couldbe significant enough to shorten the life of theexisting fleet even to 15 years.

This is true in the case of everything elsebeing equal with current market conditionsbecause in case of a sudden market upturn, theeffect could be the opposite and the newgeneration of fuel efficient ships may be in adisadvantageous position due to de-ratedengines, lower speeds and lack of horsepower.

Oil company concerns Oil companies worry whether they can trustowners when it comes to the quality of theirfleets, as they are increasingly concerned thatthe pool of owners with high quality tonnage



that they can do business with is shrinking dueto low earnings resulting in the slippage ofmaintenance checks.

The increased deficiencies found by oilcompanies during ship vetting means that farmore vettings are carried out than the numberof vessels ultimately fixed. This is an extraadministrative burden for oil companies whoare spending more time and expense trying tofind a ship that meets the required standard.

On the other hand, oil companies have torealise that this is not a one-sided problem, thesolution of which relies totally on owners’shoulders while prolonged low rates make theindustry unsustainable.

Worldscale is usually out of line with realitywhen it comes to compensating owners forrising bunker prices after the flat rate is set. Abetter co-ordination and co-operation betweenstakeholders is required in this respect.

Another issue mostly in good markets istime. “I believe any tanker operator in thisroom has faced the problem of requestingsome offhire time for planned, or preventivemaintenance, which the commercialdepartment of an oil company refuses to granthim, or her due to vessel’s hectic schedule.This usually occurs in good markets and iscontrary to the same oil company’s vettingdepartment typical advice for preventivemaintenance,” he said.

Paying a premium in today’s market forhigh quality tonnage would help to overcomethe problem and help owners to maintain highsafety standards. Without doubt, the marketwill find equilibrium but until this is reachedand through the transition period, the industrycannot afford a major accident, due to lowersafety standards.

So what is the solution? “I am afraid Icannot offer a silver bullet. The way I see it, Ibelieve that there is always some fat on theoperational budget without this beingnecessarily maintenance, or safety related.What someone should keep in mind is that thisfat is not static and may move among differentparts of the operational budget over time.

“What is needed is a constant very thoroughsurveillance of the running costs in ordercorrective actions to be taken on time. In thisrespect a tool for monitoring daily runningexpenses versus budget is required. This toolin many cases is quite different from the toolsused by the accounts departments and shouldrefer down to purchase orders instead of thefrequently late invoices that are used byaccounts departments,” he said.

“In an effort to reduce operational costsfurther, one needs to re-evaluate the option ofusing in-house specialists and technicians

against outsourcing and sub-contracting. Theanswer to this dilemma is obviously related toeach company’s size, commitment and internalresources, while the larger the company is, thehigher the economies of scale are for use ofin-house expertise.

“Furthermore what used to be the optimalanswer to this question three years ago, doesnot necessarily means it is still valid today,therefore frequent re-examination is required,”he stressed.

“On investment for the longer term, either

in new innovative tonnage, or in newtechnologies and retrofits, my suggestion isone has to be very cautious and self restrainedbecause hasty, or wrong decisions may proveextremely expensive. In this respect jumpingon the wagon of the newest technology, oridea is not always rewarding. It would bebetter to adopt technologies, or ideas that haveup to a point proved their merits even thoughthey are not globally adopted, “Babiliswarned.

As far as newbuildings are concerned,

Lambros Babilis.

Emmanuel Vordonis.



owners should consider carefully which ‘newtoys’ they want to outfit their vessels with. Theaddition of many fresh technologies on boardmay lead to a vessel which is harder for crewto operate, more expensive to maintain andpossibly less safe.

“Last but not least, I strongly believe thatworking closely with all stake holders,shipwners unions, shipyards, shippers,international regulatory bodies, classificationsocieties and flag states will improve theunderstanding of each other and will avoid

further introduction of unilateral, ill prepared,technically infeasible and contradictorylegislation and requirements that increasecosts, complexity and at the end of the dayreduce safety reliability,” he concluded.

Turning to the use of software, VickyMachera, director GL Maritime SoftwareSouthern Europe, gave a presentation on“Using advanced technologies to reduce costsand improve safety”.

She said that GL Maritime Software had putmuch focus on advanced software solutions in

the last few years. “Very often” Machera said,“cost reduction and safety improvements areseen as conflicting goals. Advancedtechnologies can resolve this conflict andenable improvements in both areas at the sametime.”

Using GLs advanced hull integrity solutionGL HullManager will lead to reducedmaintenance effort and steel repair costs, asproblems can be detected earlier andappropriate and timely maintenance canundertaken.

At the same time, the risk of structuralfailures can be reduced, which can lead tomajor pollution related incidents that candamage the company’s reputation. By thesystematic monitoring of the hull efficiencyand transparency company confidence will beincreased and compliance will bedemonstrated to the highest degree, resultingin building strong relationships with the oilmajors.

With GLs navigational decision supportsolution, GL SeaScout, efficiency is improvedby the optimisation of fuel consumption andvoyage schedule integrity while at the sametime protect the vessel, avoid sloshing, protectthe crew from injuries and ensure a safepassage. This system acts more than just aweather service provider, as it takes intoconsideration the vessel specific responses andtank fill levels, Machera explained.

Conference chairman Dimitris Lyras,director Lyras Shipping summed up by saying;”We can improve on co-ordination betweenthe shipping company and the oil companywith delivering spares to terminals,maintaining ships alongside, which would cutcosts.

“We’ve talked about ballast waterlegislation and come to a conclusion, which isperhaps workable to get our lobbyiests to pushthe dates back.

“Another major theme is an element ofleading - empowering our people, which willcarry us through to the next boom. Managingpeople isn’t new - there’s no science thathasn’t been tested in time,” he said.

*The pictures were taken from a videopresentation, which can be downloaded atwww.tankeroperator/conferences/athensapril2012/

Vicky Machera.

Dimitris Lyras.TO

Tanker Operator’s next conference will bein Hamburg on 19th September 2012. Ifyou are interested in participating pleasecontact Karl Jeffery –[email protected] (see page 13 for details).

TANKEROperatorTANKEROperator

Speakers:

Martin Shaw, managing director, Marine Operations and Assurance Management Solutions Ltd, ex-VPtechnical, fleet manager and vetting service manager, BP ShippingDimitris Lyras, director, Lyras Shipping and founder, Ulysses Systems (chair)Emmanuel Vordonis, ex executive director, Thenamaris Ships ManagementMads Friis Sørensen, branch manager, FURUNO European Branch OfficeTakis Koutris, managing director, Roxana Shipping and chairman, Marine Technical ManagersAssociation (MARTECMA)Captain Andreas Xapolytos, CEO, Tsakos Columbia ShipmanagementGeorge Vassiliades, commercial manager, Tsakos Columbia Shipmanagement

Download videos and presentations from ourApril 3rd 2012 Athens Conference

“Making money in a toughmarket”

at http://www.tankeroperator.com/toathapr2012.shtml

Celebrating our 35 Year of Operations.th

YOUR PREFERRED SHIP AND RIGREPAIR YARD IN THE ARABIAN GULF

ISO 18001ISO 28000 & 20858ISO 9001 & 14001ISO 27001 & ISPS Code

P.O. Box 50110, Hidd, Kingdom of Bahrain, Tel: +973 17 67 1111, Fax: +973 17 67 0236, E: [email protected], www.asry.net

TANKER OPERATOR MAGAZINE(JUNE/JULY2012)

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