Greece plots a gilt-edged future

May 2012 · Issue 34
Horizons
News and information for the marine industry
A Lloyd’s Register magazine
In this issue:
The Middle East just
keeps on growing
Flair and enterprise in Qatar and UAE
Pages 30–37
The Olympic
dream factory
Scientists plot gold-medal glory
Pages 48–51
Greece plots a
gilt-edged future
How its know-how and expertise
lead both globally and locally
Pages 8–29
Horizons May 2012
Issue 34
Horizons is the journal for Lloyd’s Register
Marine clients and employees, delivering
news and analysis on our global activities.
Contents
Contents
The Horizons team are:
Cover story
Editor: Christopher Browne
[email protected]
T +44 (0)20 7423 2305
What is the future
of Greek shipping?
Marine Communications Manager: Nick Brown
Staff Photographer: Mat Curtis
Design and production: Columns Design
Horizons is produced by Marine
Communications. Care is taken to ensure the
information it contains is accurate and up to
date. However Lloyd’s Register accepts no
responsibility for inaccuracies in, or changes to,
such information.
Lloyd’s Register is a trading name of the Lloyd’s
Register Group of entities. Services are provided
by members of the Lloyd’s Register Group.
For further details please see our website:
http://www.lr.org/entities
Lloyd’s Register EMEA
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Lloyd’s Register Asia
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08
Horizons asks some leading shipowners about such key issues as fuel efficiency, environmental
change and future ship design
08
News focus
02
Latest events from around the world
including the building of the UK Queen’s
Diamond Jubilee rowbarge
Changing faces and places 05
06
Two notable centenaries – the sinking of the
Titanic and the anniversary of the world’s
first diesel-powered merchant ship
The Middle Eastern growth factor
38
Lloyd’s Register’s Fleet Services Manager and
Head of Classification discusses her life, times
and career with Christopher Browne
The great fuel debate
Promotions and relocations around the
world
History focus
The Horizons interview: a life in the day of Joanna
Townsend
41
How shipowners can achieve the delicate
balance between energy efficiency,
sustainability and environmental footprint
when choosing their fuels of the future
41
30
30
Professor Ajit Shenoi, Director of the
Southampton Marine and Maritime
Institute (SMMI) talks to Horizons
The Olympic dream factory
48
The extraordinary techniques scientists
and engineers from the University of
Southampton are using to help Team GB’s
elite performers win gold medals at the
London Olympics
Safety, garbage and noise 52
control head the IMO agenda
A Horizons special on the latest shipping
industry legislation
The United Arab Emirates and Qatar just
keep on expanding. A group of leading
owners and operators discuss such key
issues as LNG as fuel, ship technology
and forging a greener future
22nd Floor, Dah Sing Financial Centre,
108 Gloucester Road, Wanchai,
Hong Kong, SAR of PRC
Southampton, Silicon Valley, 47
then the world
The pride of Posidonia
56
A unique preview of Posidonia 2012, the
Posidonia Cup and many of the year’s
major events
Retrofit review wins a green 44
seal of approval
56
When Lloyd’s Register studied three
alternative fuel options, it found
reassuringly few problems
Lloyd’s Register Americas, Inc
T +1 (1)281 675 3100
F +1 (1)281 675 3139
[email protected]
1330 Enclave Parkway, Suite 200,
Houston, Texas 77077, USA
Joint industry project probes 46
rudder cavitation
A three company link-up investigates a
disturbing trend on container ships and
LNG carriers
www.lr.org/horizons
1
Horizons May 2012
News focus
Greek owner adds super fuel-saver to its fleet
Royal rowbarge
heads Diamond
Jubilee convoy
A 24 metre long wooden rowbarge is
heading a flotilla of craft bearing the
Queen’s trumpeters and invited guests
on the River Thames for the UK Queen’s
Diamond Jubilee celebrations on 3 June
this year.
The Gloriana, as the barge is known, has
been built in London and supervised by Lloyd’s
Register’s Southampton-based UKI Marine
Operations Team. Keith Vernon, Lloyd’s
Register’s Principal Specialist, said: “While
the vessel will not be classed it will be
certified as an MCA Class V Passenger
Vessel. To achieve this level of certification
it has been our responsibility to ensure that
the hull was built in accordance with the
approved plans and that the machinery and
electrical aspects comply with our special
service craft rules.
Gloriana: an artist’s impression
“It has been a very interesting project
because of its unique character. Our initial
concerns centred around Lloyd’s Register’s
limited experience of wood boat-building
construction. Fortunately we were able to
recruit a wood specialist for the duration of
the project. The Special Service Craft Rules
(SSC) do no specifically deal with wood
Greek ship operator Delphin Shipping
has taken delivery of a 57,000 dwt
supramax bulk carrier that burns 14%
less fuel oil than similar bulkers of the
same capacity.
The vessel, Aquila, which was based on a
SDARI design, has a de-rated main engine,
a new propeller design specially optimised
for the de-rated engine and a Mewis Duct,
a propulsion improvement device for ships.
The design appraisal, build and sea trials
were supervised by Lloyd’s Register.
construction so the preceding rules
(yacht and small craft rules from 1969)
were adopted,” he told an Horizons reporter.
Apart from a team of 18 oarsmen, the craft
can move silently through the water with
the aid of twin propellers driven by electric
motors. The power will be drawn from a
bank of lithium iron phosphate batteries.
“While the motors are not very powerful,
they could be upgraded later on for
operation in the lower reaches of the
River Thames,” said Keith.
The barge, which was launched on 19 April,
is the first royal barge to be built for almost
100 years. Post-Jubilee it will be used for
more royal occasions and for corporate
events by the Mayor of London. ■
the vessels to be more eco-friendly and
more fuel efficient than previous ones.”
Nick Brown, Lloyd’s Register’s Area General
Manager and Marine Manager, Greater
China, said: “Owners and operators are
looking for efficiencies and now shipyards
Owners and operators are looking
for efficiencies and now shipyards
and designers are responding to
this demand.
and designers are responding to this
demand. Emissions regulation and higher
energy prices are the two leading factors
changing our industry. New technologies
and innovation will play a vital role in the
immediate and long-term future of shipping.
This new ship is evidence of the shift towards
new eco designs.” ■
Fuel consumption at ballast draught and a
speed of 14 knots dropped from 29.4 tonnes
to 26 tonnes and at design draught and 13.5
knots it fell from 29.8 tonnes to 26.3 tonnes.
The engine’s output has been reduced by
almost 1,000 kW to 8,500 kW.
The vessel, which is the first in a series, was
built by Chinese shipyard Jiangsu Hantong,
for the New York-based Greek owner.
Commenting on the delivery, Meng Cheng
Jun, President of the Jiangsu Hantong Group,
said: “Based on the SDARI design, Hantong
completed the design optimisation and the
tank test independently, which also brings
us the patent right of our own part. Hantong
is taking note of the market environment
requests and listening to the owners’ needs
on vessels. Now therefore Hantong will keep
on strengthening the optimisations of
our vessels and is endeavouring to build
Zhuang Tian, Lloyd’s Register Surveyor in Charge, Nantong; Captain Yuriy Gotovkin,
Aquila’s Master; Tae-Bok Kwak, Lloyd’s Register Project Manager; Xiaofeng Yang,
Lloyd’s Register Site Office Team Leader
SMMI marks the start of a golden era
The UK’s Minister for Universities and
Science, David Willetts MP, unveiled an
official plaque at the launch of a unique
project between Lloyd’s Register and
the University of Southampton – the
Southampton Marine and Maritime
Institute (SMMI) – on 27 March this year.
Lloyd’s Register’s CEO, Richard Sadler,
Marine Director, Tom Boardley, the
University of Southampton’s Vice Chancellor,
Don Nutbeam, and SMMI Director, Professor
Ajit Shenoi, were among an audience of 500
including Lloyd’s Register senior executives,
leading clients and representatives of marine
academic, technology and research institutions.
Richard Sadler told the BBC that the
collaboration was about “having access to
greater levels of technology understanding”.
He said the project “grew from an idea
initiated by myself and the (U-of-S)
Vice-Chancellor and we realised what
fantastic potential it would have if it brought
in Lloyd’s Register’s international expertise
and our practical engineers, especially in the
areas of marine and energy”. After looking
at universities in the UK and overseas, they
concluded that the University of
Southampton had the “best facilities,
capabilities and geographical location to be
a long-term strategic ally in the project”.
Southampton in a new Global Technology
Centre (GTC) which is being built on the
university campus. ■
ᏵᏵ See profile of the SMMI Director,
Professor Ajit Shenoi, and how
ship science is driving Team GB
at the Olympics on pages 47-51.
Tom Boardley told the launch ceremony:
“The SMMI has an important future to
further our understanding of the impact
of our use of our oceans and we are proud
to be associated with this important initiative
and pledge our full support. Collaborative
initiatives such as the SMMI and our Group
Technology Centre are clearly the way forward
for British industry. When you combine the
strengths of business and academia for research
purposes, you stimulate the kind of practical
innovation that supports sustainable industry.”
Lloyd’s Register’s marine team will link
up with SMMI and the University of
Gloriana: shortly before her April launch
2
www.lr.org/horizons
3
Changing faces and places
Horizons May 2012
Professor John
Houlder – a man
of many parts
Chandris joins energy
efficiency elite
As a prelude to the introduction of
the Ship Energy Efficiency Management
Plan (SEEMP), Piraeus-based ship
manager Chandris (Hellas) has chosen
Lloyd’s Register to provide a wide range
of ship energy efficiency services.
John Houlder: a passion for design
Lloyd’s Register General Committee
member Professor John Maurice
Houlder, who died in February this
year, designed one of the first and
most successful diving support vessels
(DSVs) of the 1980s.
The DSV which, aptly enough, was
christened Uncle John is still operating in
the Gulf of Mexico and won John the CBE.
A trained shipbroker and a director of the
famous Houlder shipping company, John
had a passion for design. Another Houlder
creation was the DSV Orelia which has
operated in the North Sea for the past
25 years.
Chandris’s aim is to enhance its in-house
capacity to identify appropriate key
performance indicators and application of
suitable energy efficiency measures. The
scope of the work will enable the company
to adopt industry best practices in a solid
energy management policy, while achieving
reductions in fuel consumption and securing
other fleetwide operational savings.
This will provide a platform for effective
adoption of the SEEMP – soon to be required
under MARPOL Annex VI – and an Energy
Efficiency Operational Indicator (EEOI). The
close collaboration of Lloyd’s Register and
Chandris, including gap analysis studies,
training for shore- based staff and crew and
The professor joined Lloyd’s Register’s
General Committee in 1961 – his father
also served on the committee – and was
a member of the Board for six years.
He attended his last General Committee
meeting in November, 2010.
A keen pilot and a member of the exclusive
Air Squadron (AS), John liked to tell people
he was a member of the two best clubs in
the world – Lloyd’s Register and the AS.
He is survived by his fifth wife, Rody, two
sons and a daughter and a number of
grandchildren and great-grandchildren. ■
4
Covering a range of areas such as regulatory
background and requirements, training of
staff, implementation of specific energy
efficiency measures and their applications
to each ship, Lloyd’s Register is working in a
tailored approach with its clients in the
energy management sphere at levels that
best suit their business needs and philosophy.
Ioannis Iakovou, Lloyd’s Register Marine
Management Systems EMEA Manager,
commented: ‘‘Lloyd’s Register is fully
aligned with the cornerstones of the above
co-operation. Working in partnership
secures a solid deliverable that goes
beyond legislation to reveal the
advantages of aiming to perform well
above the industry’s average at all levels
in the company, from its management
across the whole fleet operation.”
Chandris (Hellas) specialises in the
management and operation of tankers and
bulk carriers. All vessels are managed from
the Piraeus office. The fleet is owned by
individual companies and most vessels are
registered under the Greek flag. ■
After developing specialist equipment
for the Normandy landings in the Second
World War, John rejoined the family
business and pioneered the building of
the world’s first fleet of bulk carriers – with
the bridge in the aft – and the UK’s first LPG
carrier fleet.
He described Uncle John, which he
conceived in 1977, as “a floating
constructor’s yard with a helipad”. It won
him two industry prizes, the Institute of
Marine Engineers’ Gold Medal and the
President’s Award from the Society for
Underwater Technology. He said he drew
up the idea for Orelia on the back of a
cigarette packet in a London pub.
other key activities, will create an effective
system and ensure Chandris’s SEEMP is a
practical and coherent framework to capture
operational efficiencies.
Changing faces
and places
Sam James
Sam is Lloyd’s Register’s
new Head of Fire and
Safety, Marine. Sam
currently manages the
Statutory Support Group,
Classification, and will
assume his new role as the
London marine division
transfers to the Southampton
Group Technology Centre.
Oceanis, a Samsung Heavy Industries built
tanker delivered to Chandris (Hellas) in 2011
Soon after winning a Lloyd’s Register
scholarship, he served as a lieutenant in the
Royal Navy during the second word war.
After the war, he joined Lloyd’s Register’s
Research and Investigations teams and then
headed up the Research department.
George Dilaverakis
Lloyd’s Register’s Area
Technical Performance
Manager in Piraeus, Greece,
George recently retired after
almost 33 years with Lloyd’s
Register, shown here with
his wife Marietta.
Luis will focus on Lloyd’s
Register’s backbone segments
– containers, gas, tankers and
bulk carriers. The role marks a
move to a more globalised
professional marketing function.
His key role was to improve
technical performance and port
state control (PSC) standards
and training and developing his
technical colleagues. George
was known for his ready wit
and words of wisdom.
Dalibor Vlasic
Senior Specialist, Lloyd’s
Register’s Strategic
Research Group, Dalibor
retired after 17 years with
Lloyd’s Register on 2 May.
David Philip
Lloyd’s Register’s Project
Manager for the Royal Navy
nuclear submarine HMS
Astute, David retired in April
this year after more than 30
years of service with Lloyd’s
Register. He was based in our
Naval Liaison Office in Bristol.
Soo Young Lee
Following Luis’s
appointment, Soo Young
Lee was promoted to Chief
Representative and Marine
Manager for Korea. Soo
Young was one of the first
Korean nationals to join
Lloyd’s Register when he
started in 1980 and has
demonstrated his skills in
managing large and
complex operations in
Korea and China.
Bryan Hildrew:
a pioneering engineer
Bryan Hildrew, a pioneering engineer
who worked on the building of HMS
Dreadnought the UK’s first nuclear
submarine, was Managing Director of
Lloyd’s Register from 1977 to 1985.
Luis Benito
Former Marine and Country
Manager in Busan, Luis
became Strategic Marketing
Manager in April this year.
He is now based in Singapore
and is part of our Global Sales
and Marketing team.
His engineering skills were recognised when
he was appointed Lloyd’s Register’s Chief
Engineer Surveyor in 1967 and Technical
Director three years later. Bryan was a
founder-member and later Chairman of the
Council of Engineering Institutions and he
was awarded the CBE in 1977.
A keen orienteer, Bryan also ran marathons,
including the London marathon, well into his
seventies. He died peacefully on 11 January
this year aged 91. He is survived by his wife
Megan, two sons and a daughter. ■
www.lr.org/horizons
5
Horizons May 2012
History focus
The curious case of
Lloyd’s Register, The
Times and the Titanic
Sir Andrew Scott’s letter to The Times
The stories, some true, some half-true and others pure
fantasy, continue to abound about the sinking of the Titanic
100 years ago. Here, Christopher Browne reports on one
of the more unusual tales
Original drawing of the
apparently ‘unsinkable’ Titanic
The message was brief and cryptic:
“Struck an iceberg and sank in latitude
41.16 N, longitude 50.14 W”. It might
have been just another daily entry in
Lloyd’s Register’s Casualty Returns.
But it hid perhaps the most infamous
event in shipping history – the sinking
of the Titanic.
That was 100 years ago – on 14 April 1912
to be precise. Since then a flurry of historians,
scientists, investigators, conspiracy theorists
and media pundits have pondered and
puzzled over just why this great and
‘unsinkable’ vessel should founder on
a lone iceberg.
A spectacular array of events are being held
this year in the seven European and North
American cities involved in the mighty ship’s
last voyage. However behind the ritual and
razzamatazz are some curious post-disaster
stories including one about the role of
Lloyd’s Register.
loss). But in justice to this society and to those
who rely upon its classification, it is felt to be
only right to dispel the erroneous impression
which might be created regarding the
standard of classification of Lloyd’s Register
for such vessels if the statements referred to
remain uncontradicted.”
A few days after the incident, the national
press wrote a series of reports suggesting
the Titanic had been built ‘considerably in
excess of the requirements’ of Lloyd’s Register.
Although we had not classed the vessel, and
the information was patently wrong, you
could argue it was a form of faint praise by
association. Although our Secretary at the time,
Sir Andrew Scott, didn’t quite see it like that.
A pithy riposte indeed. As Andrew Scott points
out, we were not involved in classing the
Titanic, however we did approve her anchors
which still lie intact on the seabed of the North
Atlantic Ocean. We also classed the passenger
liner Carpathia which arrived to assist the
sinking ship a few hours later, saving 705 men,
women and children from the Titanic’s lifeboats.
“I am directed to say that these statements
are inaccurate. On the contrary, in important
parts of her structure the vessel as built did
not come up to the requirements of Lloyd’s
Register for a vessel of her dimensions,” he
wrote in a letter to The Times of London (see
top left-hand image opposite).
Lloyd’s Register’s Secretary:
Sir Andrew Scott
6
“I do not for a moment suggest that this
circumstance had any bearing whatever
upon the loss of the vessel and therefore, for
obvious reasons, this letter has been delayed
until after the close of the Inquiry (the Mersey
Committee set up in the UK to investigate the
The first page of J T Milton’s letter
(see article below)
Diesel – a 100-year-old
history lesson
Lloyd’s Register celebrates another
global first with the 100-year-old
anniversary of Selandia – the
first merchant ship to be fitted with
diesel engines.
The tragedy with its disturbing death toll of
1,523 had an important sequel. In 1914, the
impact of several inquiries in the UK and USA
led to the setting up of the first International
Convention for the Safety of Life at Sea
(SOLAS), its aim to improve maritime safety
and help prevent any future catastrophes.
SOLAS’s principles – robust lifesaving
appliances and lifeboats, improved vessel
design and equipment, better fire protection,
effective satellite communications, rescue
planes and helicopters and properly trained
personnel – have been the major safety code
for the global marine industry ever since. ■
Lloyd’s Register’s Chief Engineer Surveyor
J T Milton was on board during the
epoch-making trial of the ship and its twin
Burmeister & Wain 1,250 hp engines.
In February, 1912, he reported back to the
Lloyd’s Register Committee: “The engines
worked admirably throughout the trial, the
vessel being manoeuvred from and to her
moorings with as much certainty and as
quickly as an ordinary steam vessel.”
He then ended on a prophetic note: “There
is every reason to expect that the engines will
give equal satisfaction in regular running, and
if this anticipation is realised there is no doubt
that many oil engined vessels will be built for
trading in parts where oil fuel can be
regularly obtained.”
Of course the industry has changed markedly
since then with many sophisticated and
experimental sources of power. But we
still owe a huge debt to the engineers
and designers who pioneered the first
diesel-powered vessel. ■
The near-complete hull of the Selandia
www.lr.org/horizons
7
Horizons May 2012
TBC
Greece – a nation of mariners
Greece –
a nation of
mariners
▲
Greece is one of the greats of global shipping.
Here, in the following pages of this special Posidonia
2012 issue, we show how Greek ideas and
technology in ship design, environmental change
and fuels of the future, lead where others follow
8
www.lr.org/horizons
9
Horizons May 2012
Greece – a nation of mariners
Greece plots
a gilt-edged
future
Apostolos Poulovassilis,
Regional Marine Manager, EMEA
Apostolos (left) receives his Manager
of the Year award from Professor
Dimitris Lyridis of the National
Technical University of Athens (NTUA)
and Professor Andreas Merikas of
Piraeus University
With its huge axis of interests and expertise,
the mainland and island archipelago will
play a pivotal role in helping to mould a
fuel-efficient and environmentally active
future. The President of the Union of Greek
Shipowners, Theodore E. Veniamis, and
Lloyd’s Register’s Regional Marine Manager,
Apostolos Poulovassilis discuss, the key issues
Theodore E. Veniamis
President of the Union of
Greek Shipowners, says:
The period 2009–2011 was undoubtedly
one of deep crisis and major upsurge for
the entire planet. We just need to
remember the spreading of the piracy
threat, the Fukushima disaster, the
turbulence in the eastern Mediterranean
with events in Syria, Egypt and Libya,
the phenomenal economic crunch and
the subsequent diminution of strong
economies in Europe and in the US.
The crisis has massively affected sea transport
too with a reduction in worldwide trade and
financial scarcity, consequences of unknown
length and unforeseen intensity.
In this negative climate, Greek shipping
continued its impressive course over recent
years. It conserved and further strengthened
the power of its fleet and its vessels
continued their work disregarding the charter
market volatility and management
controversies. In 2011, Greek-managed
shipping demonstrated a satisfactory
performance. Suggestively we mention that
the Greek-owned fleet represents 41%
of the tonnage of the European and 14%
of the worldwide fleet. ■
10
Apostolos runs Lloyd’s Register’s Marine
Business for Europe, Middle East &
Africa (EMEA) covering a vast region
from western Africa to Pakistan in the
East and Scandinavia and Russia in the
north to Cape Town, South Africa and
the Arabian Peninsula.
“
Greek vessels continue
their work disregarding
the charter market volatility
and the management
controversies.
“
Based in Piraeus, his biggest shipowner/
shipmanager market is Greece, but his
teams manage a wide variety of clients and
challenges. “Life is always interesting, that’s
for sure,” he says. “We have an incredible
variety of operating philosophies and cultures
within the EMEA region. While we have
experts in every required language we all
have in common the language of shipping.
“Here in Greece we are particularly close
and responsive to the market demands
and changes. With 140 staff in our Piraeus
building we provide a high level of support
to clients in the area. And our support for
Greek owners worldwide is additionally
helped by the diaspora of our Greek nationals
(see pullout on pages 28–30). But across the
region, with, for example, design support
offices in London, Rotterdam, Hamburg,
Madrid, Trieste and Piraeus we provide a
depth of service that is hard to match.”
Lloyd’s Register Quality Assurance
(LRQA) is a leading global provider of
management system certification,
verification and training. Its unique
business assurance approach helps clients
reduce risk and improve operational
performance. As well as providing
certification for the ISO 50001 Energy
Management System Standard
for marine clients.
www.lr.org/horizons
Asked about the big challenges facing
the market he cites the need for greater
efficiencies and help in meeting new
regulatory requirements, while managing
in the overall global economic downturn.
“We can help shipowners – as well as
designers, manufacturers and shipbuilders –
to meet the need to improve energy
efficiency. An important area, where we
have pioneered a new approach for shipping,
is in the application of the ISO 50001 energy
management system standard for the
shipping industry. Although we are marine
experts, Lloyd’s Register’s leadership in
providing quality assurance through our
LRQA business enables us to provide and
deliver a broader and integrated range of
services in a holistic manner for the
maritime community.”
Emissions regulation and higher energy
prices are the two leading factors changing
our industry. New technologies and
innovation will play a vital role in the
immediate and long-term future of shipping.
At Lloyd’s Register we believe that we stand
on the brink of a new era.
We have talked about this as a ‘new
paradigm’. Any evolution will be gradual
but at Lloyd’s Register we can already
see changes happening.
New fuels, new engines and new designs are
becoming available.
Manager of the Year
Apostolos was recently named ‘Manager
of the Year’ at the annual Efkranti Awards
organised by the magazine Naftika Chronika
and the Hellenic Association of Maritime
Economists (ENOE).
The awards are presented to the eight
individuals, companies and organisations
in the Greek shipping community that made
the most significant contribution to the
industry during 2011.
In his acceptance speech, Apostolos said:
“It is a great honour for me to be receiving
this award and I feel quite humbled to be
included in this distinguished group of
awardees, amongst so many great figures
of Greek shipping. I would like to thank all
the key stakeholders of the Hellenic maritime
community for their support and trust
over the years, without which we wouldn’t
be able to achieve our vision and
strategic objectives.
“I would especially like to thank my
colleagues for their contribution to the
fulfilment of Lloyd’s Register’s mission and
for helping transform the Piraeus office into
an important hub of our global organisation,
as well as their personal support over the
years. I firmly believe that this award belongs
to the whole team – after all, the human
assets of a company are the most important
components of success.”
So what do you think needs to be changed
and the likely shape and pace of these
changes? In the following pages, key industry
players in Greece, Turkey, the UAE and Qatar
give answers to four interesting questions
about the future. ■
11
Horizons May 2012
Greece – a nation of mariners
Facing
the future:
questions
and answers
from Greece
On the following pages you will find some
interesting answers to questions put to
industry players in Greece – and also in
the UAE and Qatar.
▲
We also look at a new standard for energy
management, an area where Lloyd’s
Register is providing a vital framework for
owners to help them better manage their
fuel efficiency and overall energy needs
12
www.lr.org/horizons
13
Horizons May 2012
Greece – a nation of mariners
Redesigned vessels, retrofitting and vigorous energy
management are the three key ways Greece’s leading
shipowners believe they can face the challenges and
the rapid pace of change in the global shipping industry,
a special Horizons survey reveals.
“
They also see the need for economically-sound solutions
to cope with steadily rising fuel prices and increasing
freight and charter rates in their efforts to achieve a
more dynamic and environmentally aware maritime sector.
“
Speed limits exist on roads for cars and, for those
of us who remember, speeds were lowered in the USA
and in Europe to cut down consumption in the 1970s
and 1980s. Why not do the same at sea? One knot of
speed would make a huge impact.
Alexander Panagopulos, President of Arista Shipping
Here is a selection of their replies and solutions.
It’s a fascinating read!:
What are the key
changes your company
and the industry can
make to meet the
challenges of new
regulations and high
energy prices?
Alexander
Panagopulos
Alexander Panagopulos, President
of Arista Shipping:
The industry could potentially self-regulate
the operational speed of vessels to the needs
of each particular case and market: this could
be a way to tackle over-capacity as well. This
is a global market and industry issue which is
naturally quite far from any company’s own
decision or selection.
Mr Panagopulos added: Speed limits exist on
roads for cars and, for those of us who
remember, speeds were lowered in the USA
and in Europe to cut down consumption in
the 1970s and 1980s. Why not do the same
at sea? One knot of speed would make a
huge impact.
The industry must put together a package of
financial and other incentives for shipowners
to proceed in a new direction and abandon
old-fashioned practices. Positive financial
incentives should provide a material way of
monetising the reduction of carbon and
other emissions.
Greece has
John Coustas
Our company is evaluating all fuel saving
methods from ability to super slow steam,
trim optimisation, weather optimal routing,
silicon paint systems, propeller redesign,
turbocharger cutout, engine retuning etc.
We are convinced that the already significant
investment in ships has to be optimised
before we build new ships that despite being
more economical will destroy the demand
supply balance in the industry.
Nikos Makris
Polys Hajioannou
The industry should concentrate on
extracting savings from the existing fleet and
classification society support in this respect
is not only welcome, but required. As far as
regulations are concerned the low sulphur
fuels will pose additional safety concerns
which have to be addressed.
Nikos Tsakos
ship managers
and operators
14
Nikos Makris, COO of Eletson
Corporation:
Mr Makris, whose company built the world’s
first double-hulled, double-bottomed tankers
in 1986, said today’s newbuilds should be built
with dual-fuel engines, optimised hull design
to reduce fuel consumption, treat garbage
produced onboard, instal performancemonitoring equipment and reduce volatile
organic compound emissions (VOCs). “What
the industry should do is to make available gas
bunkering facilities worldwide so that such
high investment (vessels with dual-fuel engines
and LNG support equipment and research) is
worth adopting,” he said.
Referring to VOCs, Mr Makris said: “Even
though system and lines are compulsorily
installed for years on vessels, I can hardly
remember when they were last used. A vast
amount of hydrocarbons are released into
the atmosphere during loading operations.
We want to see shipping terminals receiving
these products, thus being able to treat and
safely dispose of them.”
In the June 2010 issue of Horizons we
referred to the environmental impact of
VOCs – hydrocarbon gases emitted during
the loading and carrying of crude oil cargoes.
We showed how Norwegian VOC emission
reduction systems have helped cut shuttle
tanker emissions on the Norwegian shelf
from 160,000 tonnes in 2002 to 25,000
tonnes in 2009.
Polys Hajioannou, Chairman
of Safe Bulkers:
The change will come through the charterers,
not by being proactive, but by responding
naturally to the availability of new eco
designs over a period of time.
Nikos Tsakos, CEO of Tsakos Energy
Navigation (TEN):
For the existing fleet, compliance with the
new regulations as far as possible with the
particular aim to save fuel and reduce
emissions. This would be achieved by a
number of improvements and capital
expenditure as related to engines,
underwater painting (fuel economy), hull
appendices affecting propeller efficiency.
Applying virtual training assistance,
monitoring weather conditions, vessels’ trim,
daily consumptions and applying Ship Energy
Efficiency Management Plan (SEEMP). We
really value Lloyd’s Register’s exceptional
technological support in this respect through
a number of initiatives such as the Hellenic
Technical Committee under the chairmanship
of our own Vassilis Papageorgiou. A key
development has been the establishment of
the Environmental Sub-Committee which
examines and makes proposals on all the
technical and operational measures and
options that are available now and in the
future for shipowners.
Continued
▲
1,150
John Coustas, President and CEO
of Danaos Corporation:
There is no doubt that high energy prices
are having a significant impact on not only
the way that ships are now designed and
built but also on the operational aspects that
affect consumption.
Environmental surveys show that VOC
emissions from the crude transport sector
can be reduced by 1–2 million tonnes a year,
reducing the industry’s carbon footprint by
about 5%.
www.lr.org/horizons
15
Horizons May 2012
Greece – a nation of mariners
“
An interim solution
could be older gas
carriers to be positioned
at strategic locations for
bunkering vessels.
“
Nikos Makris, COO of Eleston Corporation
Will your ships be
burning HFO in 2020?
And, if not, what fuel
will they be using?
Evangelos Marinakis
Harry Vafias, President and CEO
of StealthGas:
Based on the current trend for lower sulphur
content in fuel there is a strong possibility of
our vessels burning MGO in 2020. LNG and
LPG as a fuel for maritime transportation will
be an option that may gain momentum but
due to required infrastructure changes, these
alternative fuels may not get a substantially
increased share by 2020.
Nikos Makris: For newbuilding projects
between now and 2020, there will be great
interest in using LNG and LPG as a fuel on
the machinery. The introduction of gas has
substantial emission benefits and is expected
to be cheaper than MDO and MGO. While
gas is the fuel of the future, the establishment
of bunkering facilities and supplying terminals
is an issue requiring attention and solutions.
Anthony Comninos
Stavros Hatzgrigoris
Nicholas Comninos-Xylas
16
Nikos Tsakos: Yes, RMG380 or RMG500,
as the machinery arrangement in our vessels’
engines is in a position to burn RMG500.
In the meantime, for our newbuilding plans
the use of LNG may be considered, subject
to availability and that the technical/safety
issues are solved in time.
Evangelos Marinakis, President and
CEO of Capital Maritime & Trading:
We hope to be in a position to voluntarily
switch all our vessels to burning low sulphur
fuel oil (LSFO) prior to the mandated deadline.
However, our ability to do so is fully dependant
on refineries investing in and producing low
sulphur fuels which meet the new MARPOL
requirement at reasonable prices. In the
event such fuels are not made available in
sufficient quantities, our vessels will either
have to burn MGO, significantly increasing
the price of fuel per ton, or be retrofitted
with new abatement equipment.
Stavros Hatzigrigoris, Managing
Director of Maran Tankers:
The availability of bunkers will depend a lot
on what decisions the oil majors will make
concerning the availability of 0.5% sulphur
HFO. Since we are not operating ships
exclusively in ECA areas our options are more
than what other operators have. For the LNG
ships we are already burning gas in port and
this solution has been accepted by the EU.
My feeling is that the environmental effect of
the alternatives to low sulphur fuels (i.e. the
use of scrubbers) has not been studied in an
adequate way. From an initial review it seems
that scrubbers present a number of technical
and environmental challenges that have
to be studied in more detail.
Polys Hajioannou: In our company we have
been very cautious in tackling this issue and
our aim is to be able to operate ships that
have the infrastructure to adapt to the
upcoming changes. Namely, we have suitable
tank and piping arrangements to satisfy the
range of autonomy required to sail within
ECA-SOx areas after 2015 as well as
machinery adequate to switch from HFO to
MGO, providing there are no restrictions to
our vessels in terms of ports of call which will
offer our charterers the best possible service.
How can other
stakeholders in the
shipping industry –
class, shipbuilders,
charterers, insurers
and banks – best help
operators to manage
the challenges of
the future?
Nikos Makris: We are exhausted by the
number of inspections carried out on vessels
by class, major oil companies, terminals,
charterers, P+I clubs, port state controls.
Class, whose main role is on statutory and
classification matters, should, after all, be
nominated and authorised by ‘all’ to carry
out the inspections on the vessels. Further
on, we need to see class in the front line,
opening up in new, innovative and efficient
ship design solutions.
Concerning class, shipbuilders should accept
the concept of tripartite agreements
between owner-class-shipbuilder and
abandon the current regime that class will be
employed and contracted from the builder.
Stavros Hatzigrigoris: First of all I feel that
our industry has to face equally serious
challenges such as the fleet overcapacity, the
lack of qualified officers and crew, the
burden of new and not well studied and
prepared regulations etc. As far as energy
efficiency is concerned our target is to
improve the hydrodynamic performance and
the efficiency of the ships. We will also try to
apply weather voyage routing and slow
speed as much as possible. For new ships the
effort will be to meet the EEDI requirements
well in advance of the IMO implementation
dates. On the operations front, compliance
with the SEEMP requirements and ISO 50001
certification will help a lot.
Katharine Palmer, Lloyd’s Register’s
Environmental Team Manager, says: At a
time when the industry is facing low freight
rates, oversupply of tonnage, lack of quality,
skilled officers and crew and complex
regulations, as quoted by Stavros Hatzigrigoris,
Chairman of Maran Tankers, high fuel prices
are adding a new dimension and the focus
on energy management is where Greek
shipowners are leading the way and
recognising energy efficiency as a
differentiator to enhance operating
standards, drive continuous improvement
and reduce costs.
www.lr.org/horizons
Maran Tankers and Capital Product Partners
are the first Greek companies to have
ISO 50001 accreditation.
In the same way the industry established
an effective safety management system
to reduce oil pollution and improve the
quality of available tonnage to address
the stakeholder concerns of a ‘safe ship’,
the Greek industry is driving the operating
standards in energy efficiency to enhance
stakeholder confidence. John Coustas,
President of Danaos, makes reference to
an energy culture in the same way we have
created pollution awareness.
Nicholas Comninos-Xylas, Owner
of Phoenix Energy Navigation:
Classification societies should provide
professional guidance by keeping statistical
data on the efficiency of different methods;
shipbuilders should promote designs and
innovative systems that will conserve energy;
banks/financiers should subsidise to a certain
extent energy-friendly designs by offering
better finance terms; charterers should
widen their preference for energy-efficient
ship designs.
John Coustas: The same way that we have
created a pollution awareness for the sea,
we must create an energy culture as well.
Implementing pollution control was easy
by punitive measures, however for the energy
part a reward-based system should
encourage saving and meeting the targets.
Continued
▲
An interim solution could be elder gas
carriers to be positioned at strategic locations
for tankering vessels.
Anthony Comninos, Chairman
of the Target Group:
HFO is by far the most efficient fuel. LNG
or other gas has a very low caloric value so
storing volumes are high and not suitable
for vessels other than the LNG-adapted
ones presently.
Average age
of the Greek fleet
is 13 years*
*vessels of 500 gt or more
We have seen the adoption of the ‘easy
quick wins’ concept as the norm in
operating standards such as slow-steaming
and trim optimisation, as cited by Nikos
Tsakos, CEO of Tsakos Energy. Now the
shift to greener designs and innovative
technologies is evident to achieve the
maximum savings, Nikos Makris, COO of
Eletson Corporation, says the standard for
today’s newbuilds should be dual-fuel
engines and optimised hull design. Integral
to this is the need to provide safe high quality
tonnage and the human element interfaces
– all balanced together to drive a sustainable
business model.
17
Greece – a nation of mariners
Horizons May 2012
Do you believe that
ships built before
2012 will still be
competitive by 2021?
John Coustas: From our estimates a
new generation containership designed
for lower speed will be about 6% better
than a 2011 built vessel which has been
optimised with turbocharger cut-out,
engine retuning, and a new propeller.
In a typical 6,500 teu vessel travelling at
18 knots the difference is about 5 to 6
tons of fuel a day.
Polys Hajioannou: “Older vessels will
face difficulties both in complying with
new regulations and in competing with
modern vessels. Furthermore, compliance
with regulations might prove to be very
costly, increasing dramatically the
operation expenses of the older ships.
Regarding the commercial aspect, older
vessels will be significantly less efficient as
the increased fuel oil consumption in
combination with soaring fuel oil prices
will burden the ship operators with a hefty
daily extra cost.
Anthony Comninos: Yes, after appropriate
modifications to powering equipment and
depending on market charter rates and
national regulatory conditions.
Stavros Hatzigrigoris: All ships can slow
speed and reduce carbon emissions. Most
of the ships that will be delivered well into
2013 will not meet the starting EEDI
requirements. The hydrodynamic
efficiency of existing ships can be
improved, better coatings can be used and
the power plants can be optimised to save
2%-5% fuel. If all the above are done there
will not be such a great difference between
the new eco designs and well designed,
improved and maintained existing ships.
On the other hand what will be the effect
of a flood of new ‘eco’ ships in the current
already depressed market? ■
Fuelling
the
future
Stealthy
by name
but not
by nature
Stealth Maritime is open and
honest about its approach
Harry Vafias has come a long way in a
short time and there’s plenty of road left
to run yet. From a young age he showed
an interest in shipping, getting his
father to name the company bulk
carriers after his favourite bands of the
day: Guns ‘n’ Roses, Aerosmith and
Prodigy to name just a few.
Today, Mr Vafias’s companies Stealth Maritime
and StealthGas are leaders in their respective
fields. Stealth Maritime is one the largest
tanker companies in Greece with 22 modern
tankers all on long-period charters to blue chip
names. While StealthGas, a NASDAQ-listed
entity, is the largest owner worldwide in the
Handysize pressurised LPG segment.
Mr Vafias looked very carefully at the
shipping markets before choosing the smaller
LPG segment and identified three key factors
– there was very little competition in the
sector, a low order book and few major
players. In 2004 Stealth bought its first ships.
Now, with 38 LPG carriers they have 14% of
the market. “We sleep well with these ships,”
he says. Their upside is more limited than the
volatile crude oil trades but with their low
break-even and steady income they are solid
earners. “Our Aframaxes daily break-even is
over $20,000 – so it can be terrifying if you
are not covered,” adds Mr Vafias.
George Gratsos PhD (Aegean
University) BSc (MIT) has been
involved with helping shape and
lead the Greek shipping industry’s
approach to maritime policy for many
years. As President of the Hellenic
Chamber of Shipping – the official
advisor to the Greek government on
all shipping matters – he represents
an important voice.
When it comes to the challenges of high fuel
prices and environmental regulation, Stealth
will be conservative. “We don’t want to be
the guinea pigs! And at the moment 95% of
owners are more worried about their banks
than fuels, designs and engines – if we were
back in 2008, when there was money
around, things would be different.”
“I have been going to IMO since 1966
(back then it was IMCO – the International
Maritime Consultative Organisation),”
states Mr Gratsos, who says he has concerns
about the ability of international legislators
to develop the right legal framework for
the industry.
Stealth’s focus is the adoption of slowsteaming and just-in-time port arrival
arrangements in congested ports. They
feel that there is a strong possibility Stealth
vessels will still be burning MGO in 2020. LNG
and LPG as a fuel for maritime transportation
will be an option that may gain momentum,
but due to required infrastructure changes,
these alternative fuels may not get a
substantially increased share by 2020.
And, yes, Stealth’s current ships will still be
competitive in 2020. Just a week ago
Stealth’s affiliated company, Brave Maritime,
ordered four options and four new
generation LPG ships in Korea called the
Diamond series with electronic engines,
hull optimisation, ice class and ballast water
treatment systems included! ■
A subject he is clearly energised by is the
question of environmental regulation and
efficiency. “The cost of fuel is the most
important parameter”, he says in a meeting
with Lloyd’s Register at his offices in central
Athens. “I believe the IMO was incorrect to
legislate for a 0.5% global sulphur cap. SOx
and NOx cool the atmosphere. According to
Shipping Emissions: From Cooling to
Warming of Climate and Reducing Impacts
on Health in the study Environmental Science
& Technology Viewpoint, the revised
legislation has reduced the cooling effects of
ship emissions from 350 years to 70 years.
Therefore the legislation of a global sulphur
cap or 0.5% when it is enacted will increase
both global warming and transport costs
with no obvious benefit. On the other hand,
low sulphur fuel in ECAs addresses
legitimate concerns.”
Mr Gratsos is concerned that the EEDI
requirements established by IMO do not
include speed as a measure – as they do for
rating cycles in the automotive industry.
“I am worried about how they think at IMO.
If EEDI is not pegged to a speed, it is
meaningless. You can make any ship have
a lower EEDI, and therefore look efficient,
if she goes slower but it will still remain the
same inefficiently designed ship. For over
100 years shipowners have known that ships
burn far less fuel when going slower. An EEDI
should primarily aim to reduce the ship’s hull
resistance,” he says.
Currently his company has no ships,
having sold out in recent years, but they
are now investigating the market for
energy efficient ships. “What’s important is
that in a high energy environment an energy
efficient ship can make a greater profit while
better serving society – any shipowner cares
most about the profit,” he says. Getting the
basics right is vital but so is seeing the ship as
a whole: “We need to get the (ship) platform
right – focusing on hull form. Yards are
applying themselves slowly to better
designs. It is important to design ships for
profit not for maximising cargo carrying
capacity, much like a barge. Shipyards
should calculate for the most profitable
trade off between cargo carrying capacity
and consumption in a high energy cost
environment. We are buying a whole
system. Integration of all elements in
a ship is vital to make an energy-efficient,
profitable ship.
When looking at future fuels he feels that
we will be living with HFO for a long time but
could consider smaller tanks for LNG in ECAs
to run in dual-fuel engines. But for open
ocean use LNG, as things stand, will not
be suitable. ■
George Gratsos
George Gratsos wins a PhD in
Shipping Markets
George Gratsos was recently awarded a
PhD in Shipping Markets by the University
of the Aegean at the age of 68. George
started his PhD thesis in 2006 aged 64.
“My decision was based on my desire to
formalise and expand research and analysis
on freight market dynamics which I had
been doing over a long period of time.
This, presented in a clear way, describing
various systemic, transient and chance
effects and the causal relationships
involved, will I hope assist students of
shipping markets understand things
more clearly,” he says.
“We mustn’t think inside the box,” he adds.
Harry Vafias
18
www.lr.org/horizons
19
Greece – a nation of mariners
Horizons May 2012
Greek day in
Asia has the
wow factor
More than 20 Greek clients attended a
successful ‘Greek day in Asia’ celebration
and seminar at Lloyd’s Register’s offices
in Shanghai on 23 March.
The main theme of the seminar, led by four
Lloyd’s Register specialists and attended by
Dr Evgenios-Dimitrios Kalpyris, Consul
General of Greece in Shanghai, was the latest
developments in the newbuilding industry.
It was also a very good opportunity for our
clients to meet our Greek colleagues who
are distributed across China.
From the roof of his office building on Akti
Miaouli you are standing right over the
Piraeus cruise terminal. But talking to him
you will learn much more about passenger
ship operations beyond the Greek islands
and all over the globe.
He can talk about niche markets and the
different demands and desires of the cruising
public. He expresses disappointment that
port calls made by many ships now are so
brief that there is little time to explore the
country or get to know its people. “Due to
current fuel costs more companies are
reducing port calls and keeping passengers
on board longer. Is this still a cruise industry
as we knew it?” he asks.
Lloyd’s Register’s seminar line-up was:
The day’s overriding message was that
classification societies and shipowners have
a shared responsibility and that it is good
to see responsible IACS members like Lloyd’s
Register taking a proactive role in the Chinese
newbuild industry.
(l-r) Zacharias Kochilas, Site Manager, Chios
Navigation Hellas; Nikos Tsatsaros, Lloyd’s
Register Surveyor, Nanjing (with his back to
camera) and Nick Brown, Lloyd’s Register
Area General Manager and Marine Manager,
Greater China
(l-r) Apo Poulovassilis, Lloyd’s Register
Regional Marine Manager (EMEA); Spyros
Contopoulos, Technical Manager, Victoria
Steamship Co; Christos Konstantarakis,
Marine Consultant and Nick Skaribas, Lloyd’s
Register Surveyor in Charge, Nanjing
20
He has been in the passenger business
for a long, long time – as the pictures on
the walls of his office suggest. His family
company Epirotiki can trace its origins
back to the 1850s and a conversation
with the ever-energetic Andreas
Potamianos is an education in the
business of passenger shipping.
After the seminar, we celebrated the event
in a restaurant overlooking Shanghai’s
spectacular Bund River. Led by Regional
Marine Manager (EMEA) Apo Poulovassilis,
the Lloyd’s Register team enjoyed much
valuable feedback on the newbuilding and
shipping industries as the mellow strains of
the Sirtaki music rose gently into the
evening air.
–Technical Performance Group, Lloyd’s
Register China: Ian Burley, Marine
Principal Specialist;
–IMO Environmental & Safety Regulations
Updates: Ben Lau, Lloyd’s Register Lead
Statutory Specialist;
–Container Ship Latest Design Trends:
YD Kim, Lloyd’s Register Principal Specialist
and Manager of Hull Section;
–Harmonised Common Structural
Rules Update: John McKain, Global
Tanker Business Manager and Hasan
Ocakli, Lloyd’s Register Technical
Manager. ■
“Lloyd’s Register’s long history and close
co-operation with the Greek shipping industry
is renowned and we look forward to see a
continuation of this good co-operation,”
said Dr Kalpyris during his opening speech.
Why cruiseship
owners need to put
the passenger first
“Our philosophy was always that we wanted
to show our country to people – not to
restrict ports of call or time in order to
encourage passengers to spend money on
board. Of course, the Greek islands are not
really suitable for large ships. They are
perfect for smaller, specialist ships catering
for more exclusive markets. And if you call at
a small island, say Amorgos, you will be able
to spend some time meeting people and
getting a sense of the real Greece,” he says.
Mr Potamianos is disappointed that
successive Greek governments have not
invested in tourism: “no hotels have been
built in Greece for 30 years”. Turkey, by
contrast, he says has made a substantial
investment in tourism. “Of course it’s a
question of cost,” he says but suggests that
with the right approach Greece should be a
much stronger market for both small,
specialist passenger trades and yachting. ■
Andreas Potamianos
www.lr.org/horizons
21
Greece – a nation of mariners
Horizons May 2012
LRQA expertise helps
shipowners meet
SEEMP deadline
A new energy management system,
ISO 50001, will help owners meet the
1 January 2013 deadline for the IMO’s
energy efficiency management plan
A new energy management standard
is being used by leading shipowners
and operators.
To help address the twinned imperatives of
environmental regulatory compliance and
the need to reduce fuel consumption, Lloyd’s
Register has shown owners how to adopt this
new standard for shipping.
Using the expertise of its world leading
business assurance arm, LRQA, Lloyd’s
Register has developed a ‘marinised’
application of the international energy
management standard ISO 50001. By
adopting and using this standard a
company is in a strong position to better
manage and reduce its energy needs.
Greek tanker owners have been leading the
way in taking up the new standard that
provides an umbrella structure for managing
the SEEMP requirements, which all ships
need by 1 January 2013 and EEOI.
LRQA’s Marine Business Support Centre
Manager, Stavros Meidanis, has led Lloyd’s
Register’s work in providing this service to the
industry. He outlines the benefits of
embracing an energy management system:
“You can reduce costs, a prerequisite for
increasing energy prices, for the higher the
energy/fuel consumption, the greater the risk
that energy/fuel price increases could
seriously affect profitability.
“Reducing carbon emissions, of course, and
demonstrating those reductions is another
important benefit,” he says.
For many tanker owners the standard will be
a practical and direct means of meeting
(above) Maria
Angelicoussis receives
the IMO 50001
certificate from
Lloyd’s Register’s
CEO, Richard Sadler;
(left) Sokratis
Dimakopoulos, Maran
Tankers Management’s
HSQE Manager
Astro Carina, a member of the Maran Tankers Management fleet
22
www.lr.org/horizons
stakeholder requirements such as OCIMF’s
Energy Efficiency Guide and the anticipated
introduction of TMSA III (tanker management
and self assessment) requirements.
Mr Meidanis adds: “These are practical
commercial market requirements addressing
what will become barriers to entry but, I
believe, using the ISO 50001 energy
management standard can drive
performance and reduce costs.”
Breadth and depth of expertise in marine
survey and auditing together with the
domain experience and reach of LRQA is
crucial to the effectiveness of Lloyd’s
Register’s delivery of this ISO 50001 to
the shipping industry.
Maran Tankers win Lloyd’s Register’s
first ISO 50001 standard
Maran Tankers Management (MTM), the
oil tanker company of the Angelicoussis
Shipping Group, brings a sharp focus to
energy management.
On 23 December 2011 Lloyd’s Register
certified the energy management system
of MTM in accordance with ISO 50001: 2011.
“Certification to ISO 50001 was a
milestone for our company,” MTM
Managing Director Stavros Hatzigrigoris
said: “Having in place an effective and
efficient energy management system for
the operation of our fleet brings real added
benefits to the company and it allows us to
be proactive in complying with upcoming
regulations, customer requirements and
society’s expectations.”
During an award ceremony in Athens in
February this year, Ms Maria Angelicoussis
said the ISO 50001 certification of Maran
Tankers – the first energy management
certification awarded by Lloyd’s Register to
the merchant fleet – marks the start of a new
era for the company. “The improvement of
the energy efficiency of shipping operations
is clearly going to be a key success factor
assisting in minimising our environmental
footprint, ensuring compliance with new
regulations and gaining a competitive
advantage in an increasingly complex and
challenging business environment,” she said.
MTM believes that although shipping is the
most energy efficient form of transport,
improving energy efficiency is integral to the
shipping industry’s efforts to reduce
greenhouse gas emissions (GHGs) and
supports MARPOL compliance. Moreover,
with sky-rocketing bunker prices and low
freight rates, reducing fuel consumption is
vital and, increasingly, customers are looking
to their partners to demonstrate effective
energy management – as doing so can
provide a competitive advantage.
MTM has been always proactive in energy
management related matters.
From implementing an ISO 14001 certified
environmental management system, a
specific environmental programme has been
put in place since 2007 targeting the
minimisation of CO2 emissions. Specific
targets were set and action plans established,
implemented and maintained, including the
energy optimisation of operational practices
as well as the incorporation in the design and
construction of the newbuild vessels of
energy saving equipment/devices. The first
pre-swirl stator was installed by DSME on
MTM’s VLCC Maran Capricorn.
Greek owners ordered
30 LNG carriers in 2011 –
more than 50% of the
global total
In 2008, a specific policy on energy efficiency
was adopted and, following an energy audit
carried out onboard a fleet vessel, an Energy
Efficiency Best Practice Manual was developed
and disseminated to all the fleet vessels with
the aim of providing standard procedures and
practice on best energy management under
the various operational modes of the vessel as
well as raising awareness on energy efficiency/
conservation. This manual was the forerunner
of the SEEMP which was developed in 2011
taking into account the IMO SEEMP
guidelines as well as the INTERTANKO Guide
for Tanker Energy Efficiency Management
Plan and the OCIMF Guide for Energy
Efficiency and Fuel Management.
Profile of Maran Tankers
Management Inc
Maran Tankers Management Inc
(MTM), with its strong oil tanker fleet,
is one of the largest crude oil tanker
management companies in the world.
MTM was founded as a ship
management company in 1992 and
operates, from its head office in
Greece, a modern fleet of 36 oil
tankers with a 7.6 million total dwt.
An extensive newbuilding programme,
which started in 1994, is still in progress
and, for the time being, extends to
2014. The company is placing
significant emphasis on the human
element and has its own maritime
training centre (equipped with bridge,
engine and cargo simulators) providing
advanced maritime training and
continuous education programmes
for its seagoing and shore staff.
23
Horizons May 2012
Greece – a nation of mariners
“We
built ships on
specifications that
Why
Turgay
Ciner
struck as
the market
plunged
in our opinion met the
market requirements
better than existing
vessels.
“
▲
Although the Ciner Group owner studied the
shipping industry in the 2005–2006 boom, he
decided to go into business two-and-a-half years
later. Lloyd’s Register’s Communications Specialist
Annita Patargia speaks to Ciner CEO Vassilis
Papakalodoukas
Ciner CEO Vassilis Papakalodoukas
24
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25
Horizons May 2012
It all started with Turgay Ciner’s love
of the sea. During the shipping boom
of 2005–2006, the Turkish entrepreneur
studied the market and decided to bide
his time as he believed the upsurge in
trading would be shortlived. He was
right. Three years later in 2009 when
prices were falling, he decided to make
a move and set up his company Ciner
Shipping Industry and Trading.
“That is when I joined the company.
We started by ordering four Handysize bulk
carriers from South Korea as, at the time,
this sector had the lowest order book and
the oldest fleet,” says Ciner’s Greek CEO
Vassilis Papakalodoukas.
“Prices of second-hand ships were higher
than newbuilds and due to availability of
slots the delivery of the vessels would be only
a year or so later. So we proceeded to build
ships on specifications that in our opinion
met the market requirements better than
existing vessels,” he explains.
Greece – a nation of mariners
correct. Even though the market is presently
disastrous, we still feel comfortable with our
investment in Handysizes. We have chartered
out our ships to Pacific Basin, a Hong Kong
listed company, and one of the world’s
largest Handysize operators,” says
Mr Papakalodoukas.
Shortly afterwards, Ciner ordered four
Kamsarmaxes – also from South Korea.
“We then diversified our fleet, ordering two
Suezmax tankers with good specs and prices
and four more Handysizes at similar price
levels to the 2009 orders, followed by four
firm and two optional orders for Crown 63
Supramax bulk carriers…and we feel almost
ready, diversified and well-positioned in the
dry bulk sector,” says Ciner’s CEO.
The Ciner newbuilds had higher
deadweights and cubic capacities, sees
shallower drafts, greater gear capacities
and better fuel consumption than their
equivalents in the 2009 fleet, with the
added advantage of improved technical
and commercial characteristics.
I ask Mr Papakalodoukas where he sees
Turkey’s role in world shipping in these
uncertain times.
“Turkish shipping is still a relatively small
market. However the advantage of the sector
is that most of the time there are big
industrial groups behind shipping companies,
as in our case, that offer major financial
support. I believe that these groups will help
shipping companies come out of this volatile
and uncertain market. When the market
recovers, Turkish shipping will come out
stronger with a bigger share and a younger
fleet in the shipping industry,” he says.
“Our better specification vessels would
attract a higher premium from charterers
which we hoped would help us to navigate
the storm. So far we have been proved
I then ask him how owners can better
manage market unpredictability and the
key lessons owners can take from the
recent crisis.
Mr Papakaladoukas’s replies:
Don’t be highly leveraged
One of the most important lessons to be
learned is not to be over-leveraged. It’s very
important to have enough equity to enter a
market and not believe that high leverage
investment will lead you to success. At Ciner,
we are presently financing at 65–35, in some
projects even lower, and with this leverage
we believe we will be profitable even in the
medium term. Having a low leverage at
current shipping asset values, even at today’s
freight levels, gives a quite satisfactory return
on equity and when better times come, big
profits may follow as well.
Select the right ship at the right price
Nowadays shipyards are marketing all these
new eco-designs. This makes a lot of sense
as bunker prices are very high and we believe
they will remain high. During the previous
crisis periods, shipyards had no interest in
developing new designs as bunker prices
were very low back then. Now that has
changed, so entering the market with a new
design, with an eco-friendly ship, can
definitely create a big advantage. There will
be three types of ship in the future: the eco
designs, the modern ships and the old ships.
All these ships will be evaluated differently by
the charterers.
That’s a good reason why we feel strong
enough compared to the competition, and
prepared for the future.
Diversification
Another factor that, in my opinion, needs to
become an industry common practice is
diversification within different ship types.
Once you build a fleet you need to diversify
within a specific sector and at the same time
move to other sectors as well. Of course,
this may not be the case for small players
in the market.
Risk management is very important nowadays.
We have to share the risks in different sectors
and different ship sizes. Our strategy to
diversify within bulkers has been more or less
completed. Our next step is to enter other
markets such as tankers and/or gas carriers
where we will diversify as well, where possible.
Sharing the risk is a must in our times. This
way, we believe we can better control the
unpredictability and volatility of the market
and secure a steadier income.
I then ask Mr Papakalodoukas:
Ciner Ship Management recently took
delivery of three Kamsarmaxes out of
a series of four booked at Hyundai Mipo
Dockyard in South Korea. A year later,
you signed up for four 35.000 dwt
bulkers at SPP Shipbuilding in Korea
and a year later four geared Ultramaxes,
63,500 dwt, at Sinopacific Shipbuilding
Group, all for delivery within 2013.
Given that overcapacity remains the
sector’s single biggest worry you
obviously believe the timing is right
for new orders – what do you know
that we don’t?
He replies: In an over-supplied market it is
critical to choose the right ship type, at a
relatively right price, and at the right
leverage levels, which we believe was our
case at the time.
Low freight levels and lack of finance are
healthy parameters for the shipping industry
towards a better balance between supply and
demand. Low freight levels will lead to higher
scrapping volumes and lack of financing will
lead to less newbuilding orders even at lower
newbuild price levels.
market is to secure employment for
some three to five years so that we feel
comfortable for the first years of our
investment. We are looking at other gas
markets as well, like Medium Gas Carrier
(MGC) LPGs as well, a market we think it
may be easier to enter.
Our goal is to break even for the next couple
of years, and after that we are positive about
the market. Our average break-even levels
and our strong financial background provide
us with such optimism.
For the moment, though, our strategy is
to diversify within more disposable shipping
assets like bulk carriers and tankers.
New global markets are developing which
means that transportation needs will
increase. After all, shipping is a
capital-intensive industry and a long-term
investment which requires strong equity
to support it through the bad times.
“It is clear that Ciner Ship Management
has a significant growth plan in place.
Does this include expansion towards
LNG carriers?
We are ready to enter the LNG market.
We have the financial background and we
believe in LNG, but then LNG shipping is
always connected to LNG infrastructure.
The fundamentals are looking great but the
investment is very big and at this time we
have to be reasonable and cautious. We
don’t want to follow the trends. We are
here to make money and not to impress!
Finally, I asked Mr Papakalodoukas:
Do you see LNG as a suitable fuel for
deep- sea bulkers and tankers?
He replied: It’s very early to say how this new
trend is going to materialise. Apart from the
lack of infrastructure, the investment is huge
and with the current situation in the market
my opinion is that LNG as a fuel is a
long-term plan.
Of course we like to be innovative but at the
moment I don’t believe that the market can
support this plan. For us such a move would
be premature, however, we are following the
relevant developments closely. ■
Let’s imagine the case of a delay at scheduled
infrastructure LNG projects as has happened
in the near past. Then we would face the risk
of having our ships anchored and not
financed. The high freight levels we have
seen in LNG carriers are connected to prompt
tonnage and to the minority of tonnage on
order. So the only way for us to enter this
The bulkers were still strong, despite
overcapacity in 2011, taking into consideration
our entry price levels. The freight levels of 2011
definitely supported the investment. After
2008 everybody was talking about a disaster.
But we didn’t see a real disaster in bulkers until
the beginning of 2012. However, we have to
judge 2012 at the end of the year and not now.
A member of the Ciner bulk carrier fleet
26
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27
Horizons May 2012
Greeks around the globe
1
Adrianos Zaphiropoulos
2
Dimitrios Chalas
3
Leo Karistios
4 Nikos Skaribas
1 Adrianos Zaphiropoulos
Operations Manager for Qingdao
and Tianjin, China
Qingdao and Tianjin are important trading
ports and major commercial cities in China.
As Operations Manager I am responsible for
the area’s marine business activities. The
ports of Qingdao, Rizao, Tianjin and Yiantai
are significant hubs in China in terms of
foreign trade throughput. The ships in service
calling at the ports in the region have a very
international character in terms of ownership
and flagging and many are operated by
Greek companies.
Lloyd’s Register’s offices are well positioned
– not far from the business community and
able to respond to our clients’ demands with
qualified and experienced surveyors. Greek
owners have well-established working
relationships with Chinese shipbuilders
in the region and the local governments
of Qingdao and Tianjin have made great
investments in the renovation, upgrading
and expansion of the shipbuilding industry.
The region has formed a complete industrial
chain including shipbuilding, ship repairing,
offshore engineering, materials and marine
equipment manufacturers and supporting
industries. With on-site surveys, Lloyd’s
Register’s Qingdao and Tianjin teams can
ensure that the products are in compliance
with Lloyd’s Register Rules and international
and national codes and standards.
Our collaboration with the Hellenic
Shipping community in Qingdao and Tianjin,
whether over ships in service or newbuild
projects, is very important, focusing on
safety and environmental performance,
improving owners’ assets, productivity
and capital effectiveness.
2 Dimitrios Chalas
Lead Co-ordinator, China Marine
Business Development Team
Shortly after my arrival in China, I realised that
with the huge number of provinces and the
different dialects and business habits, doing
business in China can be very demanding.
As time passed however, I realised that the
Greek and Chinese cultures are very close.
Both civilisations have a very long history and
have won many honours and plaudits. At the
same time, until recently we have both had
turbulent periods in our histories.
5
28
Kostas Papadakis
6
Nikolaos Benetis
7
Spyros Hirdaris
8
Patty Apostolopoulos
www.lr.org/horizons
9
Nikolas Vaporis
The focus of my role is on international owners
and I have been able to talk to all of them
and co-ordinate Lloyd’s Register’s technical
support where necessary. In this part of the
world, clients expect to be able to reach
us at any time and expect a prompt and
professional reply within a short period
of time.
Leo Karistios
Senior Surveyor and Project Manager,
Jiang Qing, China
With Asia’s newbuilding capacity relying
heavily on projects of Greek interest,
empowering Lloyd’s Register’s new
construction organogram with Greek people
in key positions contributes greatly to the
successful building of ships and allows us to
win further business and build long-lasting
relationships with Greek shipowners.
3
Our clients value us better when our teams
combine a good cultural mix with a variety
of technical backgrounds, offering them
constructive influence towards the common
goal of building a good ship to both Lloyd’s
Register’s and our clients’ expectations.
Using our global network and holistic
understanding of a ship’s construction and,
in the service period, bringing better
communication and understanding of our
clients’ needs help us to offer enhanced
services that meet or even exceed our clients’
expectations.
The construction of a ship requires the coordinated efforts of many people, and working
in major shipyards with top makers and highly
experienced owners offers a Lloyd’s Register
surveyor unique and invaluable technical
competence and professional experience that
continues for life.
4 Nikos Skaribas
Senior Surveyor in Charge,
Nanjing, China
Nanjing at the moment covers 11 active
shipyards that build bulk carriers, ro-ro
vessels, general cargo vessels and tankers,
mainly for European owners but lately for
Asian and local owners. A major part of our
job is the survey of marine equipment and
components for main engines, auxiliary
engines, anchors, anchor chains, castings,
forgings and steel mill makers. There are a
few existing ships, mainly bulk carriers and
small tankers, visiting Nanjing through the
Yangtze River.
As a Senior Surveyor in Charge and Office
Manager in Nanjing, I provide technical
direction to 36 surveyors, assisted by four
administrative personnel, making sure
vessels are delivered according to the Rules
and Regulations.
5 Kostas Papadakis
Marine Client Manager
(Hellenic Shipping Community) with the
UK and Ireland Business Team, London
I joined Lloyd’s Register in 2006 after working
as a seagoing engineer, private surveyor and
consultant and then a senior lecturer at the
UK’s Warsash Maritime Academy.
I really enjoy my work as my role virtually has
no limitations and I am getting involved with
everything the London Greek community
want. I find it fascinating to be working in
an industry that is so global and at the same
time personal. I also really covet the
relationship between Greece and London
and being involved with all the Greek
owners’ exciting newbuild projects in China
and Korea as well as helping to forge a more
environmental and fuel-efficient future.
6 Nikolaos Benetis
Manager, Entry into Class, London
I have been in London since 2004 and
was Client Manager for Hellenic clients
until 2008 which gave me the opportunity
to meet many members of the Hellenic
shipping community which is very energetic
and vocal in matters both commercial and
technical. I was also honoured to be asked
to serve on the governing committee of the
Hellenic Engineers Society of Great Britain.
I have been their Secretary for the past four
years. Our meetings always have the feel
of a ‘little Greece’ in London and the
community is very active socially as well.
I am very glad and proud to have been
a part of this Greek community in
London. We are London Greeks and,
through its varying roles, the community
is very forward-thinking and constructive
to the global maritime community. In my
current role at Lloyd’s Register, I still have
very frequent meetings and
communications with all of our clients,
supporting them directly or through our
business teams on current operational
issues and future projects.
7 Spyros Hirdaris
Lead Specialist,
Lloyd’s Register’s Marine Strategic
Research Group, London
The Greek shipping community is pragmatic,
yet open-minded, in its approach. My
portfolio of research initiatives in Greece
involves a variety of projects related to
energy efficiency, safety and human factors
research themes. Our interaction with the
Greek shipping community, universities
and consultancy providers has been central
to achieving our goal to steer innovation
between EU countries, as well as China
and Korea.
The use of LNG as a fuel, nuclear propulsion,
goal-based ship safety and structural
integrity are some examples of where our
‘open innovation’ model is working well.
I am proud to acknowledge that in a world
of widely distributed knowledge, Greek
shipping is leading the way and I am glad I
can contribute to my country while abroad.
8 Patty Apostolopoulos
Senior Surveyor (Ship Structures),
Busan Design Support Office
My main responsibilities are to carry out
the appraisal of plans and documents in
accordance with Lloyd’s Register rules and
regulations and common structural rules for
bulk carriers or double-hulled oil tankers; to
provide guidance and support to internal and
external clients for ship structural plan
appraisal; and to undertake pre-site project
management, including monitoring project
progress and spend against budget and
contract requirements.
Being a member of the Busan Design
Support Office’s structures group is a great
opportunity for me to gain and expand my
knowledge of CSR BC/DHOT rules,
understand the newbuilding process,
contribute to our global team and develop
my own career.
Greek clients have been, and still are,
very important customers of the Korean
shipyards, with newbuild projects for various
ship types and sizes. Communicating with
Greek clients in my own language is a bonus,
especially when a solution needs to be found
in a quick and effective manner.
9 Nikolas Vaporis
Senior Business Development Specialist,
Okpo, Busan
I find my role here in Korea, at the forefront
of the shipbuilding industry, very interesting.
The Korean shipyards have been developing
highly efficient production techniques and
the ships are built to the latest IMO
requirements, with high environmental
specifications that are beyond the
requirements of compliance.
The Greek owners continue to challenge
the yards and being part of this challenge is
always fascinating. We share the excitement
of our clients and we remain committed to
delivering excellent risk services.
Greeks around the globe
Greeks
around
the globe
Jiang Yin, China
Pavlos Kioussis
Nanjing, China
Nikos Skaribas
Nikolaos Tsatsaros
Qingdao & Tianjin, China
Adrianos Zaphiropoulos
Shanghai, China
George Methenitis
Georgios Papagiannakis
Dimitrios Chalas
Zhousan, China
Natali Doulgeraki
Christoforos Konstantinidis
Busan, Korea
Patty Apostolopoulous
Leo Karistios
Okpo, Korea
Nikolas Vaporis
Tongyeong, Korea
Ioannis Karatzias
Stavros Timiadis
Ulsan, Korea
Petros Sagredos
Rotterdam, Netherlands
Apostolos Giannoulis
Lazaros Mitsikoglou
Nikolaos Panagakis
Konstantinos Vouroutzis
John Papadantonakis
Dubai, UAE
Kyriakos Kourentzis
Aberdeen, UK
Eleni Siasiou
Liverpool, UK
Eleni Katsari
Damoulis Xydous
London, UK
Dimitrios Argyros
Nikolaos Benetis
Konstantinos Deilakis
Spyros Hirdaris
Thanos Koliopulos
Vasiliki Kotsovolou
Leonidas Koukos
Maria Lagoumidou
Vasiliki Vakasi
Andreas Liodis
Stavros Niotis
Konstantinos Papadakis
Christina Douka
The United Arab Emirates and
Qatar just keep on expanding.
Lloyd’s Register’s Marine
Communications Manager
Nick Brown meets a group of
leading owners and operators
and discusses such key issues
as LNG as fuel, ship technology
and forging a greener future
See overleaf for our guide to Greeks around the world
▲
▲
Singapore, Singapore
Fotios Kampouris
Middle Eastern growth factor
The
Middle
Eastern
growth
factor
Who’s who at
Lloyd’s Register
Fremantle, Australia
Georgios Papageorgopoulos
Horizons May 2012
Nighttime cityscape of Doha, the capital of Qatar
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29
30
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31
Horizons May 2012
Middle Eastern growth factor
NDSQ –
building
a future
in Qatar
Apart from its growing reputation
as a country of beauty and
environmental protection areas,
Qatar is developing a series of leading
shipyard and ship repair facilities
When you arrive at Ras Laffan in
north-eastern Qatar, the intense blue
of the sea is a surprise after the desert
transit from Doha. As you drive along
the road, a sea eagle watches you from
a fence post and we are told the area is
a specially protected zone for the native
sea turtles.
To the north, across the protected bay, lies
the long causeway and jetty with its LNG
loading berths. The number of flares is an
indication of the number of ships taking on
board the liquid gas. While lying on the
southern causeway is a new construction
yard, NDSQ – Nakilat Damen Shipyards Qatar.
Its neighbour, N-KOM Nakilat Keppel
Offshore & Marine, is principally a repair yard
with a specialisation: LNG carriers.
▲
Here we focus on NDSQ. A forthcoming issue
of Horizons will tell the N-KOM story.
Continued
Aerial view of NDSQ’s shipyard in Qatar
32
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33
Horizons May 2012
Middle Eastern growth factor
How UACC
handles the
risk factor
Jan-Wim Dekker
Scale model of a Mewis Duct
So who are NDSQ?
Well, the ‘N’ stands for Nakilat – the world’s
leading transporter of liquefied natural gas
(LNG) – and the ‘D’ is for Netherlands-based
Damen, a global leader in shipbuilding. The
‘S’ means shipyards and the ‘Q’, unsurprisingly,
Qatar. Together, they operate a brand new
world-class and state-of-the-art facility
capable of building steel or aluminum ships
of up to 170 metres long.
Vessels manufactured by NDSQ feature
Damen’s proven shipbuilding designs and its
industry-leading standards for quality in all
aspects of the manufacturing process.
All ship construction and outfitting is
completed in covered halls. This facilitates an
optimal working environment and ensures
world-class quality, productivity and fast
delivery times. The yard has access to
extensive steel and pipework facilities,
blasting and painting shops. NDSQ is
working with the world’s most renowned
marine equipment suppliers and co-makers
for the supply and installation of key systems
onboard the vessels.
The yard will specialise in tugs, pilot boats
and offshore supply vessels for the
commercial market and in small frigates,
corvettes, patrol boats, ‘enforcers’ and
‘interceptors’ for naval clients.
A third market is megayacht newbuilding,
refit, repair and maintenance. A special
temperature and humidity controlled hall is
currently being built for this purpose.
Jan-Wim Dekker, NDSQ’s Managing Director,
says: “We welded our first steel in March,
34
2011, and we have momentum and strong
support from our stakeholders to grow.”
Tug specialists
Under construction at the yard when
Horizons visits is a large load out barge for
the yard’s own use. Nearing completion it will
enable the larger construction projects to be
moved from the quayside into the water. In
another hall a series of 19 vessels for the Port
of Mesaieed in south Qatar are being
fabricated. The vessels will be operated by
Qatar Shipping Company.
The tugs will operate in the warm local
waters: sea temperatures can reach 37°C
in summer and do not fall below 25°C, so
engine cooling needs to be managed. The
underwater hull is completely ribbed with
multiple engine cooling water pipes to
maximise the potential for transfer of heat
away from the hull.
A cleaner future
Proximity to the world’s largest export facility
for LNG raises an interesting question: will
NDSQ be building LNG-fuelled craft soon?
Jan-Wim smiles: “Well our research guys are
excited about the prospect and I do expect
that at some time we will be building
LNG-fuelled vessels here. You just need to
look at the facts: gas is part of the future;
there is gas here; and Qatar is looking to
play a new role in a greener future.”
This last point raises the question of the
environment. Jan-Wim again: “Safety is our
priority and standards are high here – as high
as the best anywhere. But what is special
here are the extremely high standards of
environmental protection. You have seen the
signs about the sea turtles.” And we mention
the blue of the sea. “Yes, we are not allowed
to discharge any water into the sea unless it
has been thoroughly cleaned and checked
by Qatar Petroleum. And their standards are
very high.”
When we visited it was a cool, clear sunny
day. In the summer things are different and
the reason why all construction is under
cover. But whatever the season, shipbuilding
is clearly hotting up in Qatar. ■
“
NDSQ is working with the
world’s most renowned
marine equipment supplies
and co-makers for the supply
and installation of key
systems onboard the vessels.
“
United Arab Chemical Carriers Ltd
(UACC) is a Dubai-based shipowner
with a modern fleet of 13 product
tankers within the medium range (MR)
(46,000–50,000 dwt) and Panamax Long
Range 1 (LR1) category. In addition, the
company has four chemical MR tankers
on order.
UACC’s CEO, Jens Grønning, wants a
balanced approach to risk. “Managing risk
is one of the most important tasks we face,”
he said. “We need to deal with various risk
factors on a daily basis. We have always
minimised risk as much as we feel is possible,
and we try hard to manage the fine balance
between what is theoretically possible and
what is feasible when running international
shipping operations.”
Mr Grønning continued: “In many ways
the chemical sector is more ‘industrialised’,
and therefore more steady than other more
volatile shipping segments such as the
products market. From a risk point-of-view,
we believe our presence in both the chemical
and products markets balance each other
out, at least to a certain extent. In addition,
we operate in pools because we like the
scale it creates and the partnership
between owners.”
UACC vessels frequently sail through
piracy-affected areas in the Indian Ocean.
Regarding this matter, Mr Grønning
commented: “To deal with the risk of attacks
by pirates we use armed guards, and we
follow the guidance established under Best
Management Practice 4 (BMP4). Our ships
have been attacked twice, but each time they
www.lr.org/horizons
have been deterred because we were
prepared, well trained, and use armed
guards to defend the crew, ship and cargo.”
Reducing emissions is a growing priority for
many owners, including UACC, and in the
area of environmental risk and how to find
efficiency gains, Mr Grønning has clear
views. UACC has tested new silicon hull paint
available in the market, and the four ships on
order will all have Mewis ducts installed. Mr
Grønning said: “I am a believer in the Mewis
duct, but we have only done model tests so
far and I am looking forward to seeing the
results of the sea trials. The important thing
to remember is that if we can grab 1, 2, 3, 4%
savings here and there, they all add up. If we
get to 5% fuel savings, it will easily represent
a saving of $1,000 a day at sea.”
The growth in the petrochemical and refinery
sectors is very strong and intact, and with
refining and production capacity declining in
the west, the tonne/mile ratio is going to be
favourably affected by sourcing cargoes from
farther afield, such as the Arabian Gulf and
India,” he said. ■
Mr Grønning pointed out that UACC do slow
steam on ballast passages and that its vessels
occasionally go down to ultra-slow speed,
and especially on ships which are equipped
with slide fuel valves and blowers.
Referring to alternative fuels, Mr Grønning
believes that LNG is credible, but that it is not
a viable solution for the tanker sector any
time soon, especially with the current highly
diversified trading pattern which includes
both remote and under-developed ports.
However, Mr Grønning said that he believes
LNG is an interesting option for ships plying
a regular trade, such as ferries, container
ships and the like.
Mr Grønning believes UACC’s future
prospects are bright. “We have faced many
challenges already. We were launched during
the sub-prime crisis, and that affected things.
Danish-born Jens Grønning joined UACC
in October 2008 and is its President and
CEO. He was previously COO of Eitzen
Chemical ASA, one of the world’s largest
chemical transportation companies.
He has more than 20 years’ experience
in the shipping industry, with extensive
experience of shipping and finance. He
graduated with a higher commercial
examination from Copenhagen Business
School and took an extensive management
course at IMD Business School, Lausanne,
Switzerland.
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Horizons May 2012
Middle Eastern growth factor
ADNATCO and NGSCO –
from Abu Dhabi to the world
The views of a major oil and
gas transportation company
Abu Dhabi National Tanker Co
(ADNATCO) was established in 1975
for the transportation of petroleum
products. It is a wholly-owned
subsidiary of Abu Dhabi National
Oil Company (ADNOC).
ADNATCO owns and operates a fleet of oil
tankers, a molten sulphur carrier and two
ro-ro vessels and is involved in the marine
transportation of petroleum products and
the bulk carrying of sulphur.
National Gas Shipping Company (NGSCO)
was formed in December, 1993 to transport
liquefied natural gas (LNG) on behalf of Abu
Dhabi Gas Liquefaction Company (ADGAS).
NGSCO operates a fleet of eight LNG
carriers, each with a capacity for 137,000
m3 of LNG. NGSCO took delivery of its first
vessel Al Khaznah in July 1994, followed by
a further seven vessels, the last of which
was delivered in June 1997. The first four
ships were built in Japan and the other four
in Finland. Both the Japanese and Finnish
built vessels are Moss Rosenberg designs
and, when built, were the largest LNG
carriers in the world.
The company’s LNG fleet was initially
managed by third parties but since the end of
2007 all vessels are fully managed by NGSCO.
Lloyd’s Register recently met Mr Ali Obaid
Al-Yabhouni, CEO of ADNATCO and NGSCO,
in his offices in Abu Dhabi, to discuss the
challenges facing the shipping industry.
What do you think are the most
important changes your company
and the industry can make to meet
the challenges of new regulations,
high-energy prices and the need
for more efficient ships?
In the short term, our aim is full compliance
with the MARPOL Convention, particularly
Chapter 4 of Annex VI. We aim to have a Ship
Energy Efficiency Management Plan (SEEMP)
implemented in all the vessels in our fleet by
the beginning of next year.
In the longer term, there is a clear need to
invest in new energy efficient ships. Current
designs can lead to a sharp decrease in
energy consumption and, as fuel prices rise,
this makes increasing commercial sense. Of
course, charter rates are currently at a very
low level, but shipowners need the vision and
courage to invest in new vessels that are both
energy efficient and have lower emissions.
Inversely, new building costs have also come
down, so there is an incentive for forward
looking companies such as ADNATCO to
invest in new tonnage, and the ADNOC
Group of Companies has plans to continue
ordering new vessels.
We feel that the time is right to continue
expanding our fleet with a long-term eye
to the future market in which energy efficient
vessels are valued by charterers.
Will most deep sea ships still be
burning HFO in 2020? And, if not, what
fuel will they be using – for instance,
will low sulphur MDO be available in
sufficient quantities?
Fuel choice is clearly a major challenge facing
the global shipping industry in terms of cost,
efficiency and emissions. Whereas the
burning of LNG as fuel is a practical and clean
solution for LNG tankers, such as our own
LNG tanker fleet, it is unlikely to be an option
for other vessels. Burning LNG for propulsion
power onboard ships other than LNG carriers
will require massive investments in bunkering
facilities, bunkering barges, storage tanks
onboard and ashore etc.
The reality is that there is at present no readily
available substitute for HFO. Low sulphur
MDO represents an interesting alternative
but, for the time being, is not available in
sufficient quantities due to insufficient
refining capacity. However, as a shipping
company owned by a national oil company
with significant refining capacity, I would
point out that the refining industry has
historically shown itself ready to invest in
supplying changing demand patterns.
Reconfiguring refineries and installing new
units takes time, but if the global shipping
industry decides to go down the MDO route,
the refining industry will respond accordingly.
However, this is not something that can be
done unilaterally by any single company.
There has to be consensus in the industry and
a decision that this is the best way forward.
How can other stakeholders in the shipping
industry – class, shipbuilders, charterers,
insurers and banks – best help operators
to manage the challenges of the future?
Shipbuilders and class have a greater role
to play in this regard, because of the vast
resources and experience they have in
designing the new ships with more efficient
and environment friendly engines.
The shipowners are ready to spend extra
provided the technology is available.
The class in collaboration with shipbuilders
could focus on increased research related to
energy efficient ship designs, including using
low sulphur and alternative fuels, installing
fuel efficient and emission compliant
engines, integrated power plants, and the
use of exhaust-after-treatment devices.
In an ideal world, charterers would reward
energy efficient ships with increased rates,
while insurers would reduce their premium
rates for new energy efficient ships. We need
market-based mechanisms to ensure that
this happens. ■
Ali Obaid Al-Yabhouni, CEO of ADNATCO and NGSCO in his Abu Dhabi offices
36
www.lr.org/horizons
37
Horizons May 2012
Horizons interview
The Horizons interview
The
friendly
face of
classification
Decisions, decisions, decisions might be an apt
way to sum up Joanna Townsend’s working day
at Lloyd’s Register. Though her location, location,
location also plays an unexpectedly significant
role too discovers Christopher Browne
If you visit the office of Joanna
Townsend, Lloyd’s Register’s Fleet
Services Manager and Head of
Classification, you’ll usually find
the door open even if she’s on the
phone. It’s a reassuring sign that she’s
always available and happy to listen.
But then Joanna’s a people person –
a quality she says was moulded early in her
Lloyd’s Register career. “When I was training
to be a surveyor, I learnt from other
surveyors that the job is about relationships
and how you manage them, whether it’s
just after the signing of a newbuild contract,
dealing with the personnel in the shipyard
or working with the crew on a vessel,”
she says.
“I found that by getting to know the people
I was dealing with I could understand their
roles and where exactly they were coming
from. This helped me to manage each of
the relationships I had. It certainly helps
when you are mediating between an owner
and crew over a design issue, for example,”
she says.
38
www.lr.org/horizons
Ideal training then for her current role
as the head of two departments.
“Decision-making is an important part
of my day – with queries that challenge
me to use my experience and judgement
to make decisions on behalf of Lloyd’s
Register and ensure the Classification
department is providing support to the
surveyor community and meeting our
clients’ expectations,” she says.
Dedicated team
“I work with a very experienced and
dedicated team of colleagues who are
fun to work with, people with whom I
can discuss technical matters and managers
on whom I can rely. I enjoy motivating and
developing my team and working with them
to ensure the Classification department
provides a top quality service,” she says.
Joanna is also Chairman and Manager of
Lloyd’s Register’s Classification Executive
which makes decisions on behalf of the
Marine Director and Classification
Committee. “My role is to lead the
Executive and ensure that the decisions
are based on sound technical judgement,
made with all available information and
considering all the alternatives as well as the implications for the vessel, the crew,
the operator and the flag administration.
She may no longer be working in the field
but Joanna still has a genuine affection
for the vessels she has been involved with.
“I remember all the ships I have either
helped to build or surveyed and I feel a
real connection with them (she is even
godmother to one of her charges, see
next page),” she says.
Her ‘affair’ began during her first Lloyd’s
Register posting in Southampton. “I was
invited to go on the QE2 – an absolutely
wonderful experience for a young trainee.
First of all I went into the boiler room and
surveyed inside the boiler and then two
engine-room tanks. I was also lucky enough
to be invited to have a meal in the dining
room,” she says.
Maritime who’s who
It was a formative experience and some
of the vessels Joanna has visited, helped
to build or survey since then read like a
maritime who’s who. The QM2, Crystal
Serenity, several Princesses in the Princess
Cruises fleet and, at the end of her training
in 1992, the delivery of Eleo Maersk, the
world’s first doubled-hulled tanker at
Denmark’s Odense shipyard. Another
memorable moment was when she did
some naval architecture work on the
Thames Bubbler, an anti-pollution vessel
which pumps oxygen into the River Thames
to improve its water quality.
Continued
▲
The same applies to safety. Whether it
was explaining to a vessel’s crew how to
use a lifejacket effectively or making sure
the hand-rails in a shipyard were secure
as it affected everyone in the yard’s safety.
“Building a working relationship is not
about the surveyor imposing his or her
views on others. I found it was very
important to explain to the people I was
dealing with why I was taking a particular
course of action or making a decision
about something,” she says.
39
Horizons May 2012
Great fuel debate
The Horizons interview
Joanna Townsend’s biography
Education
Strathclyde University, Glasgow
(Naval Architecture and Offshore
Engineering degree)
Home life
Married to Robin (Pete) Townsend,
Lloyd’s Register’s Regulatory Affairs
Lead Specialist, with a young son
and daughter
Current role
Lloyd’s Register’s Head of Classification,
Fleet Services Manager and Chairman
of the Classification Committee
The great
fuel debate
How does a shipowner achieve the delicate
balance between energy efficiency,
sustainability and environmental footprint
when choosing the fuel of the future?
Ed Fort argues the pros and cons
Proud godmother: Joanna launches Aifanourios at Shanghai shipyard
“The joy of being a ship surveyor and being
trained through the whole gamut of plan
approval is you have the chance to follow
a ship throughout its life, dealing with all
its ups and downs and handling any issues
as and when they occur.”
technical discussion and know that we both
have the same viewpoint – that what we
are doing matters to ensure the safety of the
vessel, the environment and the people
on board the ships,” she says. ■
Joanna has managed to juggle work,
marriage and bringing up two children
in some diverse locations. China is her
favourite. She and surveyor husband Robin
moved to Xingang, a port near Beijing in the
north of the People’s Republic, in 1996.
“We used to go to Beijing once a month to
stock up on Western-style food like cheese
which we really missed.”
Some of Joanna’s interests
and enthusiasms
Two years later Joanna and Robin went to
Shanghai. “The city was extraordinary and
constantly changing. We’d go away for six
weeks and come back and find at least one
or two new buildings had sprouted up,” she
reflects. The Townsends left in 2002 – with
their two children born in Shanghai. “I loved
the whole of my China experience and I love
the way the Chinese are so eager to develop
themselves,” says Joanna.
But back to our people theme for a moment.
“When I joined Lloyd’s Register in 1990, I was
told I was joining a family, and I feel that is the
essence of the organisation. There are people
I’ve not seen for 15 years and others that I’ve
never met but I can pick up a phone, have a
40
On chickens: I have five at the moment each
of which has a special name. We (the family)
tend to have a fairly high turnover of hens
because of the growing urban fox
population. The foxes sneak in during the
night and snatch them away, so we have
to replace them from time to time.
We always have more than enough eggs,
so I bring them in to work and share them
out among my colleagues.
On cycling: I take my daughter to school
and then cycle four miles which includes
crossing the River Thames from our home in
Lewisham to Fenchurch Street. I never travel
with my husband as he likes to cycle at a
faster pace and treats the journey as a bit
of a challenge. I prefer a more leisurely pace
and I’ll sometimes linger at a zebra crossing
or slow down to chat to pedestrians.
digging and like to cultivate seasonal
vegetables. I am growing onions, garlic
and potatoes ready for the summer at the
moment. Sometimes in the past I’ve grown
most of the annual vegetables we need.
On the Southampton move: The move is
very exciting. We will be buying a house in
Winchester. It’s a relaxed and friendly city.
It’s pedestrianised and safe for young
children with plenty of activities including
archaeological sites and an ancient castle.
It is an important and dramatic move for
Lloyd’s Register and will include a new IDS
(Internal Data System) for process
management.
On being a godmother: Joanna is one of the
few ship surveyors – if not the only one – to
be asked to be godmother of a vessel. She
christened the Bahamas-flagged bulk carrier
Aifanourios at Shanghai Shipyard in 2002
when she was six months pregnant. “It was
a wonderful experience – being asked to be
the godmother of a ship is the epitome of
surveyorship. I take a real pride in keeping
an eye on her and I have been following the
various stages of her career ever since,” she
says. Joanna is also the proud godmother of
“two beautiful girls” – a niece and the
daughter of a friend.
Sustainable power generation is
arguably the greatest challenge
facing the shipping industry today.
Ever-increasing fuel costs and rising
environmental demands during a
period of global economic
uncertainty threaten the very
existence of all but the most efficient
options within the industry.
While conventional residual and
distillate fuel oils can be expected to
continue as the dominant fuels for the
world’s merchant fleet for the
foreseeable future, the rising cost of
bunkering and, more recently
combustion, makes the consideration
of alternative fuels for marine power
generation crucial.
Lloyd’s Register is actively engaged
with industry in evaluating a range of
potential or alternative marine fuels so
that industry may rise to and succeed
in achieving a sustainable future, not
least in marine power generation.
Ed Fort, Lloyd’s Register’s Head of Marine
Engineering Systems. Ed leads the
Engineering Systems team and is a member
of Lloyd’s Register’s Technical Policy Group
On gardening: Lewisham in south-east
London is relatively green and we have a
good-sized garden. I have a passion for
www.lr.org/horizons
41
Horizons May 2012
Natural gas
There has been widespread recent interest
in the use of natural gas as a marine fuel,
particularly when stored cryogenically as
liquefied natural gas (LNG). In terms of
emissions, the relative advantages associated
with the clean combustion of natural gas
compared to conventional marine fuel oils
are by now well known, including the total
elimination of SOx emissions, the almost total
reduction of particulate matter and between
80–90% less NOx emissions. Reductions of
around 20% in CO2 emissions are also
realised on board. However, although such
reductions may well represent a saving for
the marine industry, it may not be evident
when considering the impact of LNG
production, storage, delivery and
combustion as a whole.
While the use of natural gas is well
established as a fuel for highly reliable
multi-megawatt shore power generating
stations, its use as a marine fuel is not
without challenges.
The relatively low volumetric energy density
when liquefied at a temperature of –162 °C
compared to conventional marine fuel oils
means that the storage volume required for
the cryogenic tanks, typically ‘Type C’ tanks,
will be somewhere between 2.5 to three
times greater than the volume required for
storage of marine diesel oil and even greater
for compressed natural gas (CNG). The
introduction of prismatic cryogenic storage
tanks should see that storage volume fall to
approximately twice the volume required for
marine diesel oil. A further challenge for the
industry is the lack of worldwide availability
of LNG at the dockside. If LNG is to offer an
alternative to conventional marine fuel oils,
for ships trading internationally, worldwide
availability of LNG of appropriate and
consistent quality will be required.
“
Lloyd’s Register is
currently engaged in a
number of LNG-related
projects including the
ropax ferry Viking Grace
and the inland waterway
chemical tanker Argonon.
“
42
Great fuel debate
Although the future of LNG as an
alternative fuel for ships trading
internationally remains to be seen, there
is no doubt its suitability for ships operating
frequently in Emission Control Areas (ECAs)
such as short sea shipping, inshore and inland
shipping with frequent bunkering
opportunities at one, or a limited number, of
established bunkering facilities. Lloyd’s
Register is currently engaged in a number of
LNG-related projects including the
ropax ferry Viking Grace and the inland
waterway chemical tanker Argonon.
While clearly not a sustainable fuel in the
truest sense of the word, with global oil
reserves in decline, the prospect of natural
gas meeting ever-increasing power demands
ashore and at sea while bridging the gap
between conventional fuel oils and the
renewable or carbon-neutral fuels required
for a truly sustainable future is clearly an
option. To facilitate the safe use of natural
gas onboard ships Lloyd’s Register has
already published corresponding Rules and
Regulations and is currently working alongside
the marine industry in the development of
the International Code for Gas-Fuelled Ships
(IGF Code) and in several related national and
international initiatives aimed at ensuring the
safety of gas-fuelled ships.
Biofuels
Unlike their first generation counterparts,
second and third generation biodiesels offer
the potential for a realistic and sustainable
alternative, or at least a supplement, to
conventional marine fuel oils. Although
of lower volumetric energy density than
conventional marine diesel oils, biodiesel
compares favourably with LNG and is
significantly greater than CNG. However,
unlike LNG or CNG, storage tanks for
biodiesel are likely to be comparable
in size and in structure to conventional
marine fuel oil storage tanks.
While first generation biofuels are produced
using feedstocks, water or land resources
traditionally associated with food production,
second and particularly third generation
biofuels do not compete with either. Second
generation biofuels make use of non-edible
plants, crop waste or biomass. While third
generation biofuels offer the prospect of
large-scale production of carbon neutral
fuels using land and water totally unsuitable
for crop plant or food production.
“
The rising cost of
bunkering and, more
recently, combustion
makes the consideration
of alternative fuels
for marine power
generation crucial.
“
One of the most promising developments
is the use of algae to produce oils with
molecular structures similar to the petroleum
and refined hydrocarbon products in use
today, offering the potential for
manufacturing a range of fuels including
gasoline, diesel fuels and jet fuels with the
same specifications. Such algae is
theoretically capable of producing over
2,000 gallons of oil per acre per year –
compared to first generation feedstocks
such as soybeans which yield approximately
50 gallons per acre per year – and in doing
so consume atmospheric carbon dioxide.
In addition to sea trials of algae-derived
biodiesel, Lloyd’s Register is also evaluating
the use of other alternative fuels currently
manufactured from hydrocarbon feedstocks
but potentially capable of carbon neutral
production using biofeedstocks including
methanol and dimethylether (DME).
Hydrogen
In the longer term hydrogen would appear to
be the ultimate clean fuel or more accurately
‘energy carrier’. If used to supply fuel cell
generators the prospect of true zero emission
power generation (no SOx, NOx, CO2 or PM
[particulate matter]) and extremely high
electrical efficiency (60–70%) could be
realised. However before it may be
considered as a practical alternative to
conventional marine fuel oils a number
of challenges have yet to be overcome.
represent as much as 5–20% of energy
content of the hydrogen, depending on the
storage pressure, and as much as 30– 40%
for liquefaction.
Such inefficiencies currently make the use
of hydrogen as an alternative to conventional
marine fuel oils unlikely in the short term
for all but niche applications such as vessels
with very low power demands, and/or very
short trading routes or operating in very
environmentally sensitive areas such as
harbours or inland waterways. For hydrogen
to replace conventional marine fuel oils as a
truly zero emission fuel, it will need to be
produced using established or sustainable
production processes that are currently
the focus of worldwide research and
development (R&D) including electrolysis,
photo-electrolysis, high temperature
decomposition, photo-biological production
and thermo-chemical splitting. In addition to
‘green’ production hydrogen storage
technology will need to improve. R&D
worldwide is currently focused on the
development of hydrogen storage
technologies such as organic hydrides and
carbon nanostructures which, if realised,
will almost certainly revolutionise our industry
and all other transportation sectors too.
Lloyd’s Register is monitoring the
development of enabling technologies
necessary for the use of hydrogen as an
alternative to conventional marine fuel oils,
particularly hydrogen storage and hydrogen
generation technologies.
The challenges facing the marine industry
in striving for sustainable marine power are
significant. For its part, Lloyd’s Register aims
to support the industry by facilitating,
without promoting, the use of alternative
fuels through the provision of timely and
appropriate Rules, Regulations, guidance
and advice. ■
The volumetric energy density of
hydrogen, even when compressed or
liquefied, is extremely low. Compressed to
250 bar the energy density is less than a tenth
of that of conventional marine diesel oils and
when liquefied, at a temperature of
approximately –250°C, still only a quarter
suggesting the need for prohibitively large
storage tanks. A further challenge is that the
energy necessary for compression may
Natural algae growing in an inland lake
www.lr.org/horizons
43
Horizons May 2012
Retrofit review
Retrofit review
wins green seal
of approval
A Lloyd’s Register study of three fuel options finds
reassuringly few future problems, reports Lloyd’s Register’s
Design Support Senior Surveyor, Jesper Aagesen
D/S Norden-owned Nord Butterfly, the tanker converted to LNG as fuel
with two LNG storage tanks in front of the accommodation area
What shipowners and operators need
to do to comply with the new emissions
regulations is one of the themes of a
retrofit technology study by Lloyd’s
Register and a group of Green Ship
of the Future (GSF) partners.
The project, named the ECA Retrofit
Technology Study, compares technologies
that meet the IMO’s emission levels for ships
sailing in Emission Control Areas (ECAs).
Jointly funded by the Danish Maritime Fund
and the participating partner companies –
Lloyd’s Register, Alfa Laval Aalborg, D/S
Norden, Danish Shipowners’ Association,
Elland Engineering, Maersk Maritime
Technology, Maersk Tankers, MAN Diesel &
Turbo and Schmidt Maritime. The study looks
at three fuel options: low sulphur fuel oil/
marine gas oil (referred to as MGO and the
reference case), heavy fuel oil (HFO) and
liquefied natural gas (LNG).
The reference ship used for the project was a
newly-built, medium-range (MR) tanker from
D/S Norden. The project’s aim was to carry
out a desktop study based on a ‘real’ ship
and on real operational data and to set up
practical solutions as well as uncovering the
financial aspects of installation, operation
and maintenance of the options.
Lloyd’s Register has reviewed the proposed
solutions for scrubber technology and LNG
as a fuel. The reference case for operation
on MGO has not been a subject of further
investigation. The Lloyd’s Register reviews are
conceptual design reviews, i.e. overall
regulatory and safety assessments to identify
the challenges and outstanding matters
which need further consideration.
The scrubber solution
With the scrubber solution, the aim was to
extend the vessel’s funnel casing and install a
hybrid wet scrubber system that can operate
on both freshwater and sea water, serving
both the main and auxiliary engines.
During the conversion the funnel would need
to be rebuilt and about 300 tonnes of steel
work carried out. The vessel’s freefall lifeboat
would also have to be relocated.
44
This solution has to some extent been
based on experiences gained by Alfa
Laval-Aalborg, the equipment supplier
onboard the ro-ro vessel Ficaria Seaways,
in which Lloyd’s Register has been
heavily involved.
The conclusion on the scrubber solution
was that the main factor was the price spread
between marine gas oil/distillates (MGO) and
heavy fuel oil (HFO) while the investment
costs had less significance.
Lloyd’s Register’s conclusion is that the
scrubber retrofit solution would be both
feasible and technically sound. A set of
Lloyd’s Register Rules and Regulations is
being drafted for exhaust gas abatement.
LNG as fuel solution
Any owner wishing to convert an existing
vessel to a dual-fuel concept, operating on
both diesel oil and LNG, will need to convert
the main engine to a dual-fuel one and the
vessel will need separate LNG storage tanks
and a fuel gas supply system.
In this project, two 350 m3 tanks were
located transversely on the ship’s upper deck
forward of the accommodation house. Deck
houses for LNG equipment were also placed
on the upper deck. One of the challenges in
the retrofit project was the location of tanks,
deck houses and foundations due to the
huge amount of piping on the upper deck.
As Lloyd’s Register’s conceptual design
review did not identify any major or
unsolvable problems at this stage, it
concluded that the project is feasible
from a regulatory point of view. New Rules
and Regulations from Lloyd’s Register for
gas-fuelled ships will come into force on
1 July, 2012. Lloyd’s Register classed ships
that comply with these rules will be eligible
for assignment of the class notation GF.
The financial factor
The study included a financial analysis of
the solutions covering the investment costs
(CAPEX) and the operational costs (OPEX).
Information on investment costs was gleaned
from equipment suppliers and shipyards.
On the operational side, estimates of OPEX
were done for each of the solutions under
different scenarios based on fuel oil/LNG
costs as well as the percentage of time
vessels spend trading in ECAs.
www.lr.org/horizons
For the LNG as fuel retrofit solution the
spread between the fuel prices (LNG versus
HFO and MGO) are of course also important
and the final LNG price plays a role as well.
In this case, the investment cost was found
to be slightly higher than that of the scrubber
solution and therefore its impact on the
pay-back time is higher, but not the main
factor. It is important to note that these
factors may change when looking into
other ship and engine types and sizes.
The information gathered in the study has
been turned into an interactive model that
Lloyd’s Register can use to assist clients
considering LNG as fuel for deep-sea ships.
It will also provide an estimate of the
newbuilding demand for LNG-fuelled
deep-sea vessels up to 2025. ■
ᏵᏵ The full findings of the bunkering
study will be published in a future
issue of Horizons and you can read
a summary at www.lr.org/lngasfuel
ᏵᏵ For more information about the
study, please visit www.greenship.
org where the report and associated
presentations will be available.
Lloyd’s Register bunkering study
Availability of LNG is an important issue when
considering LNG as fuel for a deep-sea vessel.
Independent of the GSF ECA Retrofit Project,
Lloyd’s Register has recently carried out a
study on the LNG bunkering infrastructure
for deep-sea ships. The study provided an
overview of the main global trade routes,
vessels’ fuel consumption and bunkering
hubs. It includes two stakeholder surveys –
one on shipowners, the other on ports.
Jesper Aagesen, Senior Surveyor and Ship
Design Specialist in Lloyd’s Register EMEA
Design Support Office in Copenhagen. A
member of Lloyd’s Register’s Nordic Marine
Business team, Jesper is involved in the
project management of LNG as fuel at Lloyd’s
Register, and a number of green projects
45
Horizons May 2012
SMMI launch
Rudder damage
JIP launched
Cavitation problems on the rudders of container ships and
LNG carriers has led to a joint industry project between
Lloyd’s Register, Zodiac Maritime Agencies and Hyundai
Heavy Industries, writes Roger Cornish
Significant damage to the rudders of
container ships and LNG carriers after
very short periods of service has led
to a joint industry project (JIP) on the
effects of cavitation and cavitation
erosion by Lloyd’s Register,
London-based shipowner Zodiac
Maritime Agencies and Korean
shipbuilder Hyundai Heavy Industries.
The damage, which was often found at the
first docking survey or in-water survey (IWS)
after construction, has been attributed to
cavitation – a hydrodynamic phenomenon
where vapour cavities form around propellers
and rudders due to adverse flow and
pressure conditions.
After discovering several vessels with rudder
damage during surveys, Lloyd’s Register
notified the relevant flag administrations,
which in some cases meant the vessel could
not sail until satisfactory repairs had been
made – to the detriment of the operator.
This led to the idea of a JIP to investigate
the design features and operational
characteristics that caused the problem.
The major advantage of the JIP is that it pools
the resources of a major classification society
(Lloyd’s Register), a major ship operator/
owner (Zodiac Maritime Agencies) and
a significant shipbuilder (Hyundai Heavy
Industries) to develop a solution for both the
existing fleet and for future vessel designs.
The aim is to investigate design optimisation,
operational changes, materials and coating
developments, computational fluid dynamics
(CFD) and other methods to predict and
mitigate the risk of erosive cavitation.
46
During the JIP, our investigators have access
to vessels from the Zodiac Maritime fleet to
provide a platform for live research, while
we can also draw on our experience of ships
across the world to add to the main data
bank. For HHI, the project provides the
opportunity to work closely with a potential
customer and ensure their product is the
superior option in any future shipbuilding
contracts. It will also enable HHI to assist
owners with rudder problems and allow
them to find a solution, thus strengthening
the existing relationship between the
shipyard and the owner.
The timing of the JIP coincides with
Lloyd’s Register’s backing of a PhD into
materials resistance to erosion at the
University of Southampton and The Lloyd’s
Register Educational Trust’s funding of
the International Institute for Cavitation
Research in conjunction with London’s
City University, Delft University of
Technology in The Netherlands and
the UK’s Loughborough University.
Its aim is to provide a viable solution for
owners and operators of LNG and container
ships, and so minimise the effects of
cavitation erosion and corrosion as part of
their standard operations. The JIP was signed
on behalf of Lloyd’s Register by Marine Client
Manager Rafael Riva who said: “This
represents a great opportunity for Lloyd’s
Register to be involved in overcoming a
well-known industry problem with such
technically competent partners and world
leaders as Zodiac Maritime Agencies and
Hyundai Heavy Industries.” ■
Roger Cornish joined Lloyd’s Register as
a Trainee Surveyor in July, 2010. He is
currently in the second year of our four-year
Marine Graduate Training Scheme after
graduating from Newcastle University with
a MEng degree in Naval Architecture
ᏵᏵ The JIP’s findings will be
published in a report to be
distributed to stakeholders
and key industry players.
“The aim is to
minimise the effects
of cavitation erosion
and corrosion as part
of standard operations.
“
Southampton,
Silicon Valley,
then the world
SMMI Director Professor Ajit Shenoi’s
vision is as infectious as it is innovative
The Southampton Marine and Maritime
Institute (SMMI) aims to be a world
leader and the silicon valley of the
marine and environment industries. That
is the boldly-held view of its Director, the
University of Southampton’s Professor
Ajit Shenoi.
SMMI – a collaboration between Lloyd’s
Register and the University of Southampton
– covers a segment of the economy that is
“bigger than aerospace and agriculture
combined and includes sectors like tourism,
finance and insurance as well as ship and
boat building and manufacturing, accounting
for an estimated 7–8% of the UK’s GDP and
approximately 900,000 jobs,” said Ajit.
The scope of research and education covered
by SMMI, which was launched on 27 March
this year (see News focus, page 3), includes
ship science and maritime engineering,
maritime law, ocean sciences, marine logistics
and finance, maritime archaeology and even
literature and history based on the oceans.
“Almost 90% of the world’s goods are
carried by sea and if, for instance, the world’s
ports closed for a week, I’d suggest much
of the globe would come to a halt. The
marine sector is critical to the well-being
of the planet, whether it is in terms of food,
energy, trade or climate change (oceans are
a big sink for heat). Understanding the ocean
environment and managing it properly is
crucial. SMMI will allow collaborative and
cross-disciplinary research and education
that addresses societally significant
challenges,” he said.
The University and Lloyd’s Register have
discussed the idea of a UK maritime centre
of excellence for at least 10 years. Four years
ago, a University strategic research group
was formed which included its ship science
and environment departments and the
Professor Ajit Shenoi biography
Born
Vypeen Island, India
Education
Degree in naval architecture from the Indian
Institute of Technology, Kharagpur:
doctorate from the University of Strathclyde,
Glasgow
Career
From 1974 to 1978 worked at Mazagon
Docks, Bombay and Arya National Shipping
Lines, Tehran. Returned to academia as a
lecturer, senior lecturer, reader and finally
professor at the University of Southampton
Zodiac Maritime Agencies’ Technical
Director, George Cowan, (left) and
Marine Client Manager, Rafael Riva,
at the contract signing
www.lr.org/horizons
National Oceanographic Centre. And so the
seeds of SMMI were sown. SMMI now has
a core of more than 150 academics and a
growing nucleus of PhD students.
That’s stage one. Stage two will occur in
2014 when the London marine division of
Lloyd’s Register moves into a brand new
building on the University’s Boldrewood
Campus. Lloyd’s Register will be part of both
SMMI and the University’s engineering
faculty. Apart from research and education,
SMMI will forge links with other universities,
associations, governments and industry.
“We have some of the world’s leading
academic researchers in a variety of
disciplines. We want businesses to come
to us, forming partnerships by interacting
with our students, while we in turn will help
individual businesses develop and turn
research ideas into commercial products,”
said Ajit. ■
Other qualifications
Chartered Engineer and Fellow of the
Institution of Mechanical Engineers and
the Royal Institution of Naval Architects
Marital status
Married to Kalpana with one son
Author
Written 10 books
47
Horizons May 2012
Olympic dream factory
The
Olympic
dream
factory
▲
A group of scientists and engineers
from the University of Southampton
are using ship science techniques to
help Team GB’s elite performers win
gold at the London Games
48
www.lr.org/horizons
49
Horizons May 2012
Regulatory round-up
”Rowing
coaches
originally preferred the
traditional approach of
saying ‘pull harder’ until
they saw the merits of
sports technology.
”
Amy Williams: skeleton gold medallist
A group of engineers check out their
tasks for the day in a small suite of
offices – one slightly cluttered with
two tables and an assortment of tools,
the other more business-like with a row
of desks, chairs and laptops. A familiar
enough scene. Except that the offices are
linked to a state-of-the-art wind tunnel.
Not such a typical workplace then – and nor
are the workers. This first-floor annexe is the
testing centre for five extraordinary
engineers. As members of the Performance
Sport Engineering Laboratory (PSEL) at the
University of Southampton, the group
specialises in improving athletic prowess
and helping Team GB win Olympic medals
and records.
Mention some of the UK’s outstanding
sportsmen and women at the past two
Olympics and they may well have been
associated with Southampton including
Beijing Olympics cycling gold medallist Sir
Chris Hoy and 2010 Vancouver Winter
Olympics bobsleigh (skeleton) champion
Amy Williams.
Olympic gold-winning cyclist Sir Chris Hoy
in one of the University of Southampton’s
wind tunnels
50
To put it in lay athletes’ terms, Team PSEL,
led by Professor Stephen Turnock, adapt the
techniques used to refine ships’ performance
to record-breaking individuals.
Although their methods are far more
scientific and labour-intensive than that.
As anyone who has cycled in a wind tunnel
or swum at the end of a tow-rope will testify.
of saying ‘pull harder’ but they now see
the merits of sports technology,” said Joe
Banks, PhD Researcher in Performance
Sport Engineering.
adjusted or refined. We also gauge how
water and air flows affect their
performance,” said Angus Webb, PhD
Researcher in Fluid Structure Engineering.
Southampton’s sporting tradition began just
over 40 years ago when engineers from its
Wolfson Unit for Marine Technology &
Industrial Aerodynamics used testing
technology and superyacht design on vessels
in the America’s Cup and the Volvo Ocean
Race. More recently the PSEL’s two wind
tunnels have been used to develop Formula
One and IndyCar racing cars.
However when a group of leading swimmers
tried to adopt a novel type of performanceenhancer – hi-tech swimsuits – they were
banned. Team GB had other ideas and
approached PSEL.
“The performers develop the tweaks and
changes we make to their techniques here
and then take them back to their training
centres. We find they respond very quickly
particularly when they find that our methods
don’t affect their training schedules in any
way,” said Joe Banks.
The first experiments on cyclists and bicycle
technology were made when PSEL was
approached by UKSport, British sport’s main
funding agency, in 2004. The team worked
closely with former Olympic gold medallist
Chris Boardman, the technical adviser to
Team GB’s cyclists. Their unique methods
including computational fluid dynamics (CFD)
– or simulated wind tunnels reducing drag for
cyclists – helped Team GB win a record haul
of gold medals at the 2008 Beijing Olympics.
Since then performers in such sports as
skeleton (see top right), wheelchair racing
and rowing have been tested and fine-tuned
by Team PSEL. “At first rowing coaches
preferred the more traditional approach
Model of a yacht is tested in a wind tunnel
“Improving a swimmer’s performance has
a lot of crossover with ship science as we use
the same towing technique as we do with a
model ship. We have developed a special
tow-rope which is attached to the swimmer
in a special towing tank and carries them
10% faster than their usual speed. We then
film the performer underwater and see how
their swimming stroke or turns can be
And Team PSEL’s efforts have not gone
unrewarded. They were recently
presented with their own gold medal by
the Queen at Buckingham Palace as one
of 11 winners of the Queen’s Anniversary
Prize for Higher and Further Education. ■
“
A pair of university students put a racing
car model through its paces
www.lr.org/horizons
Some of the UK’s
outstanding sportsmen
and women at the
past two Olympics
have been associated
with Southampton.
“
51
Horizons May 2012
Regulatory round-up
TBC
Safety,
garbage
and noise
control head
the IMO’s
agenda
Excessive noise on ships can cause
permanent hearing loss
Evolving safety
legislation
The IMO has had a busy 2012 – a trend
that looks likely to continue for the rest
of the year. Here is a special Horizons
round-up of new and evolving legislation
by Andrew Sillitoe and Barney Walsh,
Lloyd’s Register’s Regulatory Risk
Assessment Specialists
erformance standards
P
for recovery systems
Previously agreed amendments to SOLAS
(new regulation III/17–1) required ships to
have on board a means of recovering
people from the water, even if they are
unconscious and unable to help themselves.
Entry into force has been delayed to allow
a performance standard to be developed.
52
www.lr.org/horizons
The terminology referred to ‘recovery
systems’, but this prompted concern that it
would encourage misuse of ships’ lifting
equipment not designed or certified for
lifting people.
As discussions continued at the IMO’s Ship
Design and Equipment (DE) Sub-Committee,
it was not clear whether a new dedicated
equipment requirement would be introduced
for all ships, including potentially retrofitting
existing ships.
Consequently, guidelines were developed
instead of specific performance standards.
These specify the onboard procedural actions
that ensure the recovery requirements for
dealing with a man overboard situation can
be met.
However, the latest session of DE in February,
rejected the proposal to have purpose-built
equipment for the recovery of persons from
the water. The terminology now speaks of
recovery capability rather than recovery
systems, to reflect an agreement that
procedures and plans on board a ship will
be sufficient to comply with the new
SOLAS regulation.
DE has therefore asked the Maritime Safety
Committee (MSC) to approve and adopt the
new regulation SOLAS III/17–1. If this
happens as expected, it will apply to all ships
from 1 July 2014.
53
Horizons May 2012
Andrew Sillitoe
Regulatory round-up
Barney Walsh
Recently adopted
legislation environmental Evolving legislation
Tonnage measurement
Gross tonnage of a vessel is used by various
bodies to calculate the fees associated with
that ship. This creates pressure on designers
and owners to minimise the overall enclosed
space for a ship, which can be done by
reducing crew numbers and crew
accommodation, including removing training
berths. The measure can also encourage a
lack of reserve buoyancy and the storing of
safety equipment in open spaces which are
not included in the gross tonnage calculation.
Such practices can raise concerns over safety
and manning.
The IMO Sub-Committee on Stability and
Load Lines and on Fishing Vessels Safety
(SLF), which met in January this year, has
been seeking to address these concerns. It
has previously identified 27 issues with the
current 1969 Tonnage Measurement (TM)
Convention and an associated interpretation
circular. The latest session, SLF 54, continued
this work. It considered using a new reduced
form of tonnage measurement, which
excludes the accommodation. The issues
previously identified include remeasurement
after alterations, definitions of awnings,
whether an enclosed space needs a deck
above, and the tonnage treatment of
complex shapes.
Discussions will continue and the impact of
the final decisions could be significant. It is
expected that any agreed changes will apply
to all ship types, and they could potentially
cover existing ships and therefore require
their remeasurement.
rotection against noise on
P
board ships
Excessive noise on board ships can cause
permanent hearing loss to crew either from a
single very loud event or from a lower level
long-term exposure. Resolution A.468 (XII),
Code on noise levels on board ships, provides
guidance but it is non-mandatory and is
considered out of date due to advances in
noise reduction and prediction. The DE
Sub-Committee has therefore been tasked
with creating a new mandatory code and
corresponding SOLAS amendments.
There was extensive discussion on this matter
at the latest DE 56, with the issue of testing
onboard noise levels being particularly
contentious. It was agreed that certain
operational issues contained in the code
would be recommendatory, and that ear
protection should be worn where noise limit
levels will unavoidably be breached. Several
issues remained unresolved, however, and
discussion will continue at MSC 90 before
approval of the new code.
Lower allowable noise levels may require
additional noise insulation and consideration
during design and build of the positioning of
noisy machinery and of ‘quiet’ areas.
Manufacturers of shipboard equipment
should be aware that builders and owners
would need to have information about the
sound produced by their equipment and
recommended methods to reduce the noise
emitted at the time of installation.
At present it is expected that the requirements
will apply only to new vessels of 1,600 gt and
over, with smaller vessels only encouraged to
meet the requirements where practicable.
It should also be noted that the IMO is
separately considering the impact on the
marine environment of noise generated by
ships externally, but this is at a very early
stage and will continue for some time.
54
Code for gas carriers
Due to significant advances in the
technology, operating practices and size of
gas carrier ships over recent years, the Bulk
Liquids and Gases (BLG) Sub-Committee has
been carrying out a comprehensive review of
the International Code for the Construction
and Equipment of Ships Carrying Liquefied
Gases in Bulk (IGC Code).
BLG 16 earlier this year made substantial
progress on the draft text of the code,
including agreeing various definitions. Over
80 editorial changes were made to provide
clarity in the text and to ensure consistency
with other international standards, such as
those developed by the International
Electrotechnical Commission (IEC).
Due to the degree of progress made, BLG 16
sent its draft text for review by other relevant
sub-committees. After these reviews and
subsequent agreement by a committee,
the revised code could enter into force on
1 January 2015. It would apply to future
new gas carriers of any size, but some
elements such as operational and training
requirements could be applied to existing
ships as well.
“
It is very likely that black
carbon emission will
become an important
issue in future and provoke
regulatory change.
Guidelines for garbage
Last year the 62nd session of the Marine
Environment Protection Committee (MEPC)
adopted resolution MEPC.201(62), to bring
in a revised MARPOL Annex V. This details
the definition of ships’ garbage along with
regulatory requirements and restrictions of
how garbage can be discharged. A major
point of contention at that time was how
solid bulk cargo residues are to be dealt
with, including cleaning agents or chemical
additives contained in cargo hold, deck and
external surface wash water.
MEPC met for its 63rd session in February,
2012 and developed guidelines to help flag
states in implementing this newly revised
Annex V. The guidelines clarify that cleaning
agents and additives contained in hold wash
water, and deck and external wash water, are
operational wastes and therefore defined as
garbage, but they can be discharged into the
sea if not considered harmful to the marine
environment. The guidelines also clarify the
definition of what exactly constitutes
‘harmful to the marine environment’.
The burden of proof that discharges are
not harmful will be placed on the owner
or operator.
Black carbon
The concept of black carbon has recently
entered the environmental protection
lexicon. It refers to small particles that have
light-absorbing characteristics local to where
they are emitted. Early signs show the Arctic
region is particularly susceptible to these
effects, and as the nearest industrialised
land mass to the Arctic, the European Union
is paying close attention to the causes and
effects of black carbon in relation to its
potential impact on climate change. The
impact that international shipping has on
the production of such elements is not yet
known, but certainly requires consideration.
BLG 15 is briefly discussed this issue, focusing
on how to define black carbon and agreeing
the best way to proceed with investigation
and discussion. It is not yet clear what will
result from the consideration by the IMO in
terms of impact on shipping, but it will be
further deliberated at future sessions and
through an inter-sessional correspondence
group.
Further information:
To find out more about these or any other
upcoming regulatory changes, please
contact your local Lloyd’s Register office,
or use the links below.
For reports of each IMO meeting:
http://www.lr.org/sectors/marine/
Compliance/LRIMO.aspx
For RuleOutlookLive, our interactive online
service for keeping you updated on the
regulatory environment:
http://www.lr.org/sectors/marine/
Compliance/RuleOutlookLive.aspx
For information on legislation which has been
adopted or is under discussion:
http://www.lr.org/sectors/marine/
documents/203196–ruleoutlook-live.aspx
or visit www.lr.org/classnews
It is very likely that black carbon emission
will become an important issue in future
and provoke regulatory changes. ■
Depending on the cargo being carried, the
cargo residue restriction will have a
significant impact on the operation of some
bulk carriers and general cargo ships.
The latest guidelines, 2012 Guidelines for the
implementation of MARPOL Annex V, have
been adopted by MEPC as a resolution.
“
www.lr.org/horizons
55
2012 events
Horizons May 2012
The pride of Posidonia
Lloyd’s Register is the very proud
sponsor of the Posidonia Cup yacht
race. One of the highlights of Posidonia
week, the Cup will be held on 1 June,
just before the start of the main
exhibition and conference from
4–8 June.
In this, the sixth Posidonia Cup, more than
50 yachts will compete in four categories
– performance, standard, IRC and classic
yachts. The Cup which is one of the biggest
sailing events in the Aegean is organised by
the Hellenic Offshore Racing Club (HORC).
HORC President John Maradougakis
(pictured right) said: “Lloyd’s Register has
not only been associated with a high profile
event which launches Posidonia every two
years and bonds together members of the
worldwide shipping community but also,
in a wider context, makes it possible for
us as a non-profit organisation to carry
out throughout the year our educational,
training and social programmes.”
Mr Maradougakis says HORC has around
700 students attending its courses every
year and is now associated with ISTION
Yachting – the Recognised Training Centre
of the Royal Yachting Association (RYA).
56
“As a result of Lloyd’s Register’s support,
we have been able to establish 10 regional
centres which have developed into selfstanding clubs offering sailing and training
programmes to young people in sometimes
remote places where such facilities did not
exist before. We consider this to be a very
worthwhile endeavour,” he said.
Get into gear
for Gastech
One of the highlights of the Londonbased Gastech exhibition and
conference will be a Lloyd’s Registerhosted ‘LNG as a shipping fuel’ stream.
The event will be one of a group of Centre
of Technical Excellence (CoTE) streams at
the four-day event from 8–11 October
this year. As a leader in LNG carrier
classification, Lloyd’s Register will address
all the key issues and initiatives of LNG
as a fuel as well as a programme it has
developed to help answer the big picture
question, ‘Is LNG the fuel of the future?’.
The Piraeus-based HORC also organises a
‘Cup for Hope’ race to help fund and build
a cancer hospital for children and an annual
‘Smile for Children’ race which helps
support homeless children. HORC organises
a number of other events and functions to
promote the welfare of young people. ■
alternative fuels and LNG has emerged as
a potential fuel of the future. The CoTEs
offer a unique opportunity for operators
to address the technical, operational and
commercial issues to enable the widespread
adoption of LNG as a marine fuel.” ■
www.lr.org/gastech
Nick Brown, Lloyd’s Register’s Marine
Communications Manager, said: “With
new emissions regulations and the
challenges of rising costs for conventional
fuel, the shipping industry is examining
www.lr.org/posidonia
Coming events for 2012
A round-up of some of this
year’s key shipping events
21–22 May API Tanker Conference Fort Lauderdale, Florida, USA
29–30 May
GreenTech 2012 Conference Quebec City
Quebec, Canada
29 May-1 June
World Maritime Technology Conference
St Petersburg, Russia
31 May
Blue Shipping Summit 2012 Conference
Athens, Greece
1 June
Posidonia Cup Regatta
Athens, Greece
4–8 June
Posidonia 2012 Exhibition
Athens, Greece
17–22 JuneISOPE 2012: 22nd International Ocean
and Polar Engineering Conference
Rhodes, Greece
19–21 June
Marine Money Week Conference
New York City, USA
4–7 September
SMM Exhibition
Hamburg, Germany
12–14 September
Gas Fuelled Ships Conference
Bergen, Norway
17–18 September
CFOA 2012 Conference
Victoria, British Columbia, Canada
17–20 September
ICETECH Conference
Banff, Alberta, Canada
19–22 September
Monaco Yacht Show
Monaco
8–11 October
Gastech 2012 Exhibition
London, UK
21–24 October
Interferry 37th Annual Conference
Dubai
21–27 October
CLIA Leadership Forum Conference
Fort Lauderdale, Florida
24–26 October
SNAME Exhibition and Conference
Providence, Rhode Island, USA
27–29 NovemberSeatrade Middle East Maritime
Exhibition and Conference
Dubai
4–7 December ExpoNaval 2012 Exhibition
Valparaiso, Chile
5–7 December International WorkBoat Show
New Orleans, Louisiana, USA
www.lr.org/horizons
57
Shipping
and the
environment.
Shipping and the environment: the two words together have different
meanings for different stakeholders. We need to take the broadest view
of what is driving behaviour in our industry as regulation and economic
forces shape our responses.
In our new issue of Shipping and the environment we look at the activities
of key stakeholders in creating a cleaner, more efficient future for shipping.
Pick up your copy at Posidonia 2012 or download it at
www.lr.org/sate