Ice Class Tanker Shipping Supplement
Transcription
Ice Class Tanker Shipping Supplement
Front cover.qxd 06/09/2006 04:56 Page 1 TANKEROperator SEPTEMBER 2006 www.tankeroperator.com Features: z z z z z z z z z z z z ISS ISS forms forms tanker tanker department department Shipmanagement Shipmanagement on on Clydeside Clydeside Tank Tank cleaning cleaning issues issues Moored Moored up up properly properly German German investment investment rife rife SMM SMM breaks breaks records records Ice Class Tanker Shipping Supplement included with this issue IFC.qxd 06/09/2006 05:07 Page 1 h4HROUGHDEDICATIONANDINNOVATION WEWILLMAKEADIFFERENCEv /URPHILOSOPHYISTHATvWEMAXIMISE YOUREARNINGPOTENTIALv7EFOCUSON s)NCREASINGEARNINGDAYS s0ROTECTINGASSETVALUE s0ROVIDINGCOSTEFFECTIVECOMPETITIVE OPERATIONS #ONTINUOUSINNOVATIONISIMPERATIVETO ENSUREASATISFACTORYSERVICEDELIVERYTO OURCUSTOMERSANDTHEIRCUSTOMERS )N!PRIL%ITZEN-ARITIME3ERVICES WASCREATEDTHROUGHAMERGERBETWEEN 3TROMMEAND4%3-!REmECTINGTHE %ITZEN'ROUPSSTRATEGYTODELIVERA WIDERANGEOFSERVICESTOTHEMARITIME INDUSTRY %ITZEN-ARITIME3ERVICESBRINGSTOGETHER s4%3-!S4ECHNICAL#REW-ANAGEMENT 3ERVICES s3TROMMES3HIP3UPPLY,OGISTICS 3ERVICESAND-ARINE%QUIPMENT s0OLARIS)NSURANCE3ERVICES /URDEDICATIONISNOWONREALISING SYNERGIESFROMTHECOMBINEDOPERATIONS nULTIMATELYAIMEDATMAKINGAPOSITIVE DIFFERENCETOOURCUSTOMERS 4%3-!PROVIDESTECHNICALMANAGEMENT SERVICESTOABOUTVESSELSFROMITS OFlCESIN$ENMARK5NITED+INGDOM 3PAIN)NDIAAND3INGAPORE 4%3-!HASINEXCESSOFSEAFARERS ONACTIVEDUTYONMORETHANVESSELS ARRANGEDTHROUGHOURCREWMANAGEMENT ENTITIESIN%STONIA,ATVIA2USSIA 0HILIPPINESAND)NDIA !#/-0!.97)4().4(%%)4:%.'2/50 4%3-!(OLDING 3MAKKEDALENs$+'ENTOFTEs$ENMARK 0HONEs&AXsTESMA TESMANETsWWWTESMANET p1.qxd 06/09/2006 09:27 Page 1 TANKEROperator Vol 5 No 5 Contents Maritime Content Limited 213 Marsh Wall London E14 9FJ UK 04 Industry news PUBLISHER Stuart Fryer 13 Operations Profile: Inchcape Shipping Services EDITOR Ian Cochran Tel: +44 (0)20 7510 4933 37 Techology 37 Gas detection 41 Tank cleaning 47 Ship-to-shore interface 50 Round up of latest technology news 61 Focus on Germany Tanker investment increases 72 SMM Preview The biggest yet [email protected] ADVERTISING David Jeffries Tel: +44 (0)20 7733 1199 [email protected] Ria Kontogeorgou (Greece-Italy-Cyprus) Tel: +44 (0)20 7510 4938 [email protected] MARKETING Rebecca Gee Tel: +44 (0)20 7510 4946 [email protected] 15 PRODUCTION Vivian Chee Tel: +44 (0)20 8995 5540 [email protected] Shipmanagement 15 A look at Glasgow 20 InterManager - best quality 26 TMSA conference report 33 Regulations round up SUBSCRIPTION 6 months (5 issues) $142 /Eur110 /£75 1 year (10 issues) $237/Eur185 /£125 2 years (20 issues) $398/Eur310 /£210 Subscription hotline: Tel: +44 (0)20 7510 0015 Fax: +44 (0)20 7510 2344 Email: Ice Tanker Review Interest in ice class tankers has escalated during the past few years, on the back of booming Russian oil exports, resulting in several new tanker designs being unveiled able to cope with the low temperatures. [email protected] ABC membership applied TANK CLEANING We assist Tanker Operators with: x Chemical Tank Cleaning during cargo changeover from DPP to various CPP, removal of MTBE residues, Inert Gas Soot, Dye Discolouration. CBFS to Molasses or Veg. Oil etc. x Preparation and assessment of the required tank cleaning x Tank Cleaning Advice and Recommended Tank Cleaning Procedure x Delivery of well known Marine Tank Cleaning Chemicals from stocks world wide x Delivery of chemical injection and special spraying equipment x Supervision during the cleaning At Sea by experienced Supervisors NAVADAN LTD International Marine Services Tel: +44 700 631 0490 - Fax: +44 700 631 0491 - E-mail: [email protected] 107-111 Fleet Street London EC4A 2AB, United Kingdom 72 $' -(0 GI September 2006 UNISERVICE NORDIC APS Tel: +45 4917 0357 - Fax: +45 4917 0657 - E-mail: [email protected] PO Box 35, DK-3060 Espergaerde, Denmark TANKEROperator 01 p2.qxd 06/09/2006 05:26 Page 1 Material costs Scheduling Productivity Innovation Technical solutions Communication Support matters Availability Market knowledge Impartiality Trust Rule clarity Life is about reaching new heights. Our design and build expertise can help take your ship construction to new peaks of productivity without compromising safety, thanks to our in-depth knowledge of emerging technologies, markets and designs. If you need a hand up, trust us – when support matters. L IFE MAT T ERS www.lr.org Services are provided by members of the Lloyd’s Register Group. Lloyd’s Register is an exempt charity under the UK Charities Act 1993. p3.qxd 06/09/2006 05:28 Page 1 COMMENT TANKEROperator re-launched To celebrate our fifth anniversary, we have decided to give ourselves a birthday present - a complete wash and brush up resulting in a new look TANKEROperator. Next year there will be 10 issues of the new A4 format and a few special features for good measure. Although the present day technical and operational coverage won't change, TANKEROperator will be expanded to include more commercial content, such as market comment, financial and legal issues affecting today's tanker people. In this issue, we have included a special Ice Class Shipping supplement. In addition, we have taken one of our regular looks at the shipmanagement sector and in particular what is happening along the banks of the River Clyde. Tank cleaning and gas detection form the brunt of our technical content. Don't forget our conferences on Ice Class Tankers and LNG Shipping to be held at the forthcoming SMM Exhibition in Hamburg at the end of this month (see inside for details). Ahead of SMM, TANKEROperator's Editor travelled to Hamburg and Bremen to get the views and news from German tanker people and found a steadily growing market mainly fed by the German KG investment scheme. With the tanker and gas sector forecast to sustain its growth pattern up to the end of this decade and hopefully beyond in future editions, TANKEROperator will be reporting on all the latest innovations, as well as looking at the various markets across the tanker spectrum. Of course, one of the major question marks hanging over the industry is - how will the IMO's single hull phase out affect the market after 2010? The world's shipyards are already hoisting the 'full up' signs for 2009 deliveries, but China could have a significant say once its giant shipyards come on stream. Such is the demand for prompt tonnage, secondhand prices have overtaken newbuilding levels in some instances. Several other articles and features make up this bumper edition of the re-launched TANKEROperator. If you have any comments or ideas for future articles or features, Editor Ian Cochran will be pleased to hear from you. Ian can be contacted at [email protected] or by telephone at +44 (0)20 7510 TO 4933 (direct line). Phone: +47 67 200 300 Fax: +47 67 200 381 E-mail: [email protected] Letter to the Editor September 2006 TANKEROperator Prevention is better than cure Minimal turnaround time and optimal flexibility is our main focus Tank cleaning chemicals and equipment Cargo handling and tank cleaning supervision Chemical and vegoil courses/seminars Ships repair and maintenance during voyage Surface treatment equipment Service at sea www.tecomaritime.no www.marketings.no Sir, Having been in the tanker industry afloat and ashore for the last 30 years I was surprised to see that the UK's Marine & Coastguard Agency (MCA) had been "the most vocal" in calling for action to increase standards. With regards to "lone watchkeepers falling asleep", is this the same MCA that issues Safe Manning Certificates with ludicrously small requirements? With regards to "generally poor watchkeeping practices", is this the same MCA that examines and issues certificates of competency to British and Foreign seamen? Just wondering - that's all! Capt. Graeme W. McNaught. MRIN, MNI. 8 Kalypsous, Glyfada, Athens Telephone +30 6937404088 03 p4-11.qxd 06/09/2006 05:38 Page 1 NEWS Tanker ‘Bible’ updated The fifth edition of the International Safety Guide for Oil Tankers and Terminals (ISGOTT) was recently published by Witherbys Publishing. This work, considered to be the 'bible' of the tanker and tanker terminal industry and endorsed by several flag states, is the culmination of four years of work by three contributing organisations International Chamber of Shipping (ICS), Oil Companies International Marine Forum (OCIMF) and the International Association of Ports and Harbours (IAPH). Gas tanker and terminal organisation SIGTTO also acted as an observer. Since the fourth edition of ISGOTT was published in 1996, much has happened. Both technical and legislative developments have moved on apace. There is also a lot of new thinking in best practice. We now have double hull tankers as the norm rather than under debate and the ISM and ISPS Codes to worry about. Split into four sections General Information, Tanker Information, Terminal Information and Management of Tanker and Terminal Interface, the book has been enhanced in terms of format, content and presentation, while some of the elements of the fourth edition were retained. Thinking on legislation has changed to a more 'why are you doing it?' stance while the ISM Code bought in a more risk-based philosophy and the human element, especially fatigue. Company responsibilities were also highlighted by the ISM Code in providing support and resources to seafarers. ISGOTT 04 does not go into the ISPS Code in great detail, but touches on the security and communications aspect of shipboard life. The technology sections contain new research on static electricity and stray currents; on the toxic effects of benzene and hydrogen sulphide; gas detection equipment; automatic identification systems (AIS); the use of new materials for new mooring rope and emergency towing-off pennants and the use of mobile telephones and personal communications, such as pagers. tank cleaning for example whether the tank have been inerted or not, taking in both scenarios. A flow chart is included taking the reader through the tank cleaning process. Another use for the guide is that tanker officers can copy and print sections of the report, which is also available on CD-ROM. One of the most used could be the ship to shore safety check list, which has been updated to more precisely draw the line as to where the ship's responsibility ends and the terminal starts also marine lawyers and accountants. It is also a useful tool for accident investigation and other legal considerations. The authors tried not to make any part of ISGOTT ambiguous, as this could make a lawyer's day. Users are encouraged to provide feedback to OCIMF, whose Ship Inspection Report Programme (SIRE) will be written into a future edition. Future publications from Witherbys for the tanker industry include the fourth edition of 'Recommendations for Equipment The updated guide includes almost everything a terminal and tanker operator should know. Photo Credit - GAC As for best practice, there is considerable reference to tank cleaning, both using fuel and oxygen. Risk assessments include hazards analysis and exposure limits. This section also covers the use of radar in port. Tank cleaning has again been in the news recently for all the wrong reasons. The guide contains a useful reference for ensuring that both parties are aware of it. Some flag states insist on ISGOTT being part of a vessel's regulatory literature. These include Liberia, Marshall Islands and Greece. Witherbys claimed that the latest edition has already sold 8,000 advanced copies, mostly to tanker owners and operators, training colleges, Employed in the Mooring of Ships at Single Point Moorings', 'Tanker Jetty Safety: Management of the Ship/Shore Interface', while last year the publisher was responsible for OCIMF's fourth edition of 'Ship-to-Ship Transfer Guide (Petroleum)'. *Exerts from the guide have been included in various relevant features in this issue. TO TANKEROperator z September 2006 p4-11.qxd 06/09/2006 05:38 Page 2 NEWS INTERTANKO welcomed US decision The State of Massachusetts has been permanently enjoined by the US District Court in Massachusetts from enforcing the State of Massachusetts Oil Spill Prevention Act 2004. In a decision announced on 7th July, the Court called the statute unconstitutional, asserting that it tries to make law in areas that are reserved exclusively to the Federal Government. The Court concluded, "The challenged provisions of the (Massachusetts) Oil Spill Prevention Act are pre-empted, invalid and unconstitutional under the Supremacy Clause of the United States Constitution. The Commonwealth of Massachusetts is therefore permanently enjoined from enforcing the challenged statutes." September 2006 z This decision, the result of a lawsuit filed by the US Government joined by a shipping industry coalition*, means that the regulatory authority of the US Coast Guard over vessel operations in US waters has been upheld and federal regulations and statutes preempt state and local regional activity. It reinforces a similar ruling involving the Supremacy Clause when in 2000 INTERTANKO won its longrunning legal battle against the State of Washington by a unanimous US Supreme Court decision in US v Locke, 529 US 89. INTERTANKO said it welcomed this news. The Association's chairman Stephen Van Dyck said, "INTERTANKO is pleased that to have prevailed in another federal pre-emption case. Federal pre-emption best serves our important goals of zero spills and accidents." The State of Massachusetts Oil Spill Prevention Act was signed TANKEROperator into law in Massachusetts on 4th It also asserted that comprehensive August 2004 in response to a federal regulation already existed in 2003 tank barge accident. It the areas covered by the state Act, regulates oil-carrying vessels and that the Supremacy Clause of travelling in interstate the US Constitution and/or international provided that federal laws commerce while such and regulations overrode vessels are within any attempt by a state Massachusetts waters. government to legislate or It provides for state regulate in the same areas. pilotage, personnel and *The shipping industry manning requirements, coalition was formed tank vessel design when INTERTANKO requirements, tug allied itself with the Stephen Van Dyck escort and routing American Waterways provisions, drug and Operators, Chamber of alcohol requirements, certificates Shipping of America and BIMCO of financial assurance. to join the US Government The lawsuit, filed by the US Complaint (lawsuit) against the Department of Justice (Civil Action Commonwealth of Massachusetts. No 05-10112 JLT) on 18th January The industry coalition asserted 2005, charged that the that such interstate commerce Massachusetts Oil Spill Act required a single, clear set of impermissibly trod on federal federal regulatory standards that jurisdiction, specifically, the were uniform from state to state jurisdiction of the US Coast Guard, and locality to locality and were in making rules governing intended to avoid confusion that TO maritime operations in US waters. could lead to accidents. 05 p4-11.qxd 06/09/2006 05:38 Page 3 NEWS FPSOs back in fashion Newcomer Aker Floating Production has acquired two 26-year old suezmax type tankers - Polar Alaska and Polar California - for $55 mill en bloc. Both tankers were built at National Steel in San Diego and have an approximate storage capacity of 1.3 mill barrels. Aker also announced the acquisition of a third tanker - the 180,000 dwt Oriental Tiger - for $25.2 mill. Aker said the three tankers were ideally suited for conversion into Aker Smart FPSOs. "They are in excellent condition, which will result in a lower than expected conversion cost," commented president and ceo of Aker Floating Production, Svein Olsen. The company planned to build, own and operate a fleet of a minimum of four Smart FPSOs, targeted at mid-sized and smaller oil companies through the conversion of existing tankers based on a flexible modular design. Aker Smart FPSO technology is expected to meet the requirements of the high growth benign shallow to deepwater areas. Aker is not the only company showing interest in this market. Frontline, Teekay and Bergesen Worldwide Offshore (BW) are all investing in the FPSO market at present. Frontline has decided to convert its damaged single hull suezmax Front Sunda to a heavy lift vessel, given the strength of the rig market. The Norwegian tanker concern has several single hull VLCCs and suezmaxes, whose future will be in doubt in a few years time. Even today, some oil majors have said that they will no longer charter in single hull tonnage. Teekay took a 15% stake in Oslo-listed FPSO operator Petrojarl during the middle of August. The Canadian giant already had a joint venture Teekay Petrojarl Offshore - in operation. Last June, the company formed Teekay Offshore Partner to oversee its FPSO commitments. Meanwhile, BW increased its investment to just over 15% in another Norwegian FPSO concern - Prosafe. It is widely reported that BW Offshore wants to become the second largest owner of FPSOs after SBM Offshore. The Oslo-based concern signed a $600 mill credit facility in July with a DnBNor led syndicate to support its expansion into the TO FPSO market. Book Review: Stena When thinking of Stena, it is easy to think of just ro-ros and passenger ferries. However, down the years the company has built up expertise in both wet and drybulk and the offshore sector. Stena's shipowning started just after the Second World War with the purchase of general cargo ships in 1947. Although Sten Allen Olsson, after who Stena was named, founded the company as a trading concern in 1939, it was not until 1955 that Sten A Olsson Handels Ab, a company formed in 1953 as the controlling body for Olsson's shipping interests, purchased a bunker barge and thus entered the world of tankers. However, this initiative only lasted for five years and following a four year gap, in 1964, Rederi AB Concordia was purchased along with three coastal tankers. However, like the company's first foray into the tanker market, the vessels weren't in the fleet for long and it was another 14 years before a gas carrier Malmros Multina was bought. Stena Bulk, as we know it today, was incorporated in 1983 06 to look after both the dry and wet bulk parts of the business. During the 1980s, the tanker fleet was built up and included two ULCCs, Stena King and Stena Queen, plus the 1970sbuilt high spec VLCCs from Daniel Ludwig's Universe Tankships. During the mid 1990s, Stena cemented its relationship with Texaco and StenTex was born. Towards the end of the decade and during the early part of the 21st century, various agreements were put in place with Ugland, Novoship and COSCO among others, whereby some of their units joined the Stena Bulk fleet in a type of pooling arrangement. Stena Bulk vessels became among the first to lift Russian oil out of the Baltic and Black Seas. In 2005, a further agreement was signed with Sovcomflot, which led to the inauguration of another pooling arrangement on 1st January 2006. Neste, Teekay and Progreta are expected to join this year. Down the years, Stena continuously boasted about its ability to operate quality vessels. In 2001, two revolutionary VMAX VLCCs were delivered offering full redundancy. They were followed by the Stena CMAX and the Stena P-MAX. Another design, the Stena BMAX, is currently under evaluation with Sovcomflot and if built will be the first shallow draught VLCCs specially constructed to serve the Baltic. Innovative tanker designs As in most of the World Ship Society (WSS) publications there is a comprehensive fleet list of both owned and operated vessels with the tanker section taking up a reasonable chunk of the book. The chartered or managed vessels section goes some way to try to explain the complicated nature of some of the deals, which saw certain tankers join Stena Bulk's fleet. There are many pictures, which unfortunately have been reproduced in black and white, rather than colour. By far the largest section of the book is naturally devoted to ro-ros and ferries. The introduction to the tanker operations section, unfortunately only covers three pages and doesn't really do justice to the innovative designs that have been Stena's hallmark for the past 15 years or so. However, the publishers have set their stall out to provide a fleet list with a bit of history, rather than the other way around, which should appeal to the many ship enthusiasts, rather than the professionals. The WSS has found quite a bit of success down the years by using this method of compiling company histories having published many books using this format, so there is obviously a ready made market for it. Like many company history books, the reader will probably come away thinking; 'I never knew they were involved with so and so'. Stena by WJ Harvey is published by the World Ship Society, 256 pp, A4 hard back, 325 monochrome and 54 colour images, price £33, plus postage and packing. TANKEROperator z September 2006 p4-11.qxd 06/09/2006 05:39 Page 4 NEWS Frontline’s take on the market Not one for going into its shell, Frontline ordered six VLCCs from Jiangnan this year for delivery in 2009, 2010 and 2011. Illustrating the current bullish tone in the tanker market, Frontline said it was able to sell two of the contracts on for a profit of $9.8 mill. Since then the company has negotiated another two VLCCs as options. And yet another two were chartered in from Knightsbridge Tankers for five years commencing next year. Frontline said that the thinking behind this decision to increase its VLCC exposure was a firm belief that the underlying supply/demand balance will remain tight driven by the single hull phase out, increased transportation volumes and longer tonne/miles. The company admitted that today's firm market had surprised the so called 'experts' thus far. Tank cleaning solutions IN THREE DIMENSIONS suezmaxes at a fixed price and said the differential between a General Maritime (GenMar) newbuilding at the Japanese shipyard of Universal and the ones at the Chinese yard is around $15-$20 mill per vessel. The board felt that a considerable discount could be negotiated for taking a later delivery date. At the same time, the company also sold its entire 3.86 mill shareholding held in GenMar to Singapore-based World-Wide Shipping. The price was $40 per share. Quoting Norwegian broking house Fearnleys, Frontline said there were 339 suezmaxes and 474 VLCCs in service. The order book to 2011 consists of 71 suezmaxes and 159 VLCCs, while there were 17 suezmaxes and 10 VLCCs delivered during the first seven months of this year with another seven of each type due by the end of 2006. Interestingly, there are only four ULCCs in service - the 2002-2003 built 440,000 dwt quartet operating in the Tankers The first dimension Understanding Three levels of optimization go into every Alfa Laval tank cleaning solution. One of them is our understanding, built on more than 50 years of Gunclean Toftejorg tank cleaning experience. For one thing, we understand that tank cleaning regulations are weak or even non-existent. This is why we focus on real-life demands, rather than what looks good on paper. For example, we recommend an effective jet length and a 15º jet hit angle, and we account for all tank obstructions when choosing the placement of machines. Frontline thinks it is steering in the right direction, buoyed by a firm tanker and bulker market. This particular obo was operating in the dry market when pictured on the River Elbe recently. Not stopping there, the world's largest tanker company in deadweight tonnage terms ordered six 156,000 dwt suezmaxes from the Jiangsu yard by declaring options held on another four to the two already firmed up. The company admitted it was in discussions for another two International (TI) pool. There are no signs of any more orders above 320,000 dwt in the pipeline. Putting these figures in perspective, Global oil demand remains strong, despite being downgraded by the International Energy Agency (IEA) to 1.4% for this year. The forecast for 2007 is a growth of 1.8% and As a result, we can provide tank cleaning solutions that do more than just work in theory. Solutions that provide genuine cleaning results. To learn more, contact Alfa Laval. www.alfalaval.com/marine continued on p8 September 2006 z TANKEROperator 07 p4-11.qxd 06/09/2006 05:39 Page 5 NEWS Continued from p7 this growth is expected to remain positive year on year for the next five years. Inventory levels are also expected to be high on the back of unrest in the Middle East and in Nigeria. Another factor driving the current air of optimism is that Chinese net oil imports were running some 17.3% higher during the first half of this year, compared with the first half of 2005. Meanwhile, Ship Finance International (SFIL), the Bermuda-based concern now spun off from Frontline, said it is seeking further growth and diversification of its business. The company has posted a rise in 2Q06 net profit of $43.4 mill, up from $31.2 mill in the same period last year, although the latest figure was boosted by a $9 mill gain from the vessel sale. The SFIL fleet currently comprises of 58 ships, including 28 VLCCs, 14 suezmaxes, eight suezmax obo carriers, seven container vessels and a jack-up rig. Of these, 50 tankers are on the charter to the Frontline group. SFIL said that it is in talks with its financiers to increase its main debt facility by $219.7 mill to $1.13 bill, its original amount. In the fleet expansion, both secondhand and newbuildings will be considered. The company reportedly wants to reduce its dependency on Frontline and enter into projects where the assets involved would be employed in TO the medium to long term. Camillo Eitzen expands its empire Through its 100% owned subsidiary Eitzen Gas, Camillo Eitzen & Co (CECO) has agreed with Lauritzen Kosan to acquire the shares in Sigas Kosan (50%), together with eight semi-refrigerated LPG carriers operated by Sigas. The acquisition will be financed by debt and equity. CECO already owns 50% of the shares in Sigas and operates seven LPG carriers in cooperation with Lauritzen Kosan. By acquiring the remaining 50%, CECO will take full control of Sigas Kosan, including an experienced commercial organisation. The fleet will be taken over in October 2006 at the same time as the organisation is expected to move to Eitzen Gas' headquarters in Gentofte. Sigas Kosan operates a fleet of 16 LPG carriers and is the world largest operator of semirefrigerated gas carriers below 3,000 cu m load capacity. The fleet operates mainly in Europe and the Mediterranean and is normally used for regional trades for the petrochemicals industry. The acquisition is subject to satisfactory inspection of vessels and class records. To help finance the deal, CECO completed a private placement of 3.5 mill ordinary shares at NK65.5 each, raising a total of NK229 mill ($37 mill). This will be used to finance the acquisition of the remaining 50% 08 of the shares in Sigas Kosan. The private placement was significantly oversubscribed. Eitzen Holding (the main shareholder of CECO) and Eitzen Invest were allocated 1.845 mill and 34,000 shares respectively, thereby maintaining their relative ownership in the company. both the commercial and technical operations and Songa offices in Westport, Connecticut and Glasgow. CECO plans to spin off its entire chemical tanker activities as a separate stock listed company on the Oslo Stock Exchange. adjustments, which will be financed through a combination of debt and equity. This acquisition is subject to the completion of a successful IPO, standard satisfactory documentation and due diligence reviews by 31st October, 2006. Through the IPO and listing of Camillo Eitzen has taken full control of Sigas Kosan. Another subsidiary, Eitzen Chemical has signed a share purchase agreement for the acquisition of 100% of the shares in Songa Shipholding (Songa), currently owned by companies controlled by Arne Blystad. Songa is the controlling entity of 49 chemical tankers including newbuilding contracts, ranging from 8,750 dwt to 40,000 dwt. Included in the acquisition are Including Songa, Eitzen Chemical will control a fleet of 66 chemical tankers and in addition 43 newbuildings will be delivered between 2006-2010. After the acquisition and listing, Eitzen Chemical will become one of the largest chemical tanker companies in the world. The total acquisition price for Songa, including the newbuildings and organisation, is $1,280 mill, subject to standard Eitzen Chemical, CECO's ownership in Eitzen Chemical is likely to be reduced to below 50%. Carnegie and Pareto Securities have acted as CECO's advisors for the acquisition, and will also be the advisors for the planned IPO. Nordea Corporate Finance acted as advisors to Songa Shipholding. Meanwhile, CECO has recently finalised the takeover of French chemical tanker company TO Fouquet Sacop. TANKEROperator z September 2006 p4-11.qxd 06/09/2006 05:39 Page 6 NEWS Warsash makes a name for itself From 1st September 2006, Southampton Solent University's Warsash Maritime Centre, has adopted the name of Warsash Maritime Academy. The change from Centre to Academy is part of the overall rebranding of Southampton Solent University, which was granted university title last year. What’s in a name With the UK industry's move towards degree-based cadet training programmes, the Academy is now well placed to embrace this initiative to increase standards and attract high quality young people into the industry, Warsash claimed. Marketing manager Nigel Holloway commented: "The combination of our existing expertise and university status will enable the Academy to take a lead in improving the professional qualifications of seafarers from all over the world." Sir Alan West, former First Sea Lord and Chief of Naval Staff, was installed as Southampton Solent University's first Chancellor. Warsash Maritime Academy has developed a wide portfolio of training services ranging, for example, from basic first aid to professional certificates of competency for navigation and engineer officers. Fire fighting, first aid, boat handling, sea survival, security and radio communications are all part of the mix, together with the specialist professional skills needed by navigation and engineer officers. The Academy claimed to be a pioneer in the use of simulatorbased training to develop the skills of seafarers and now has some 30 years of experience in the use of simulator training. TO Tank cleaning solutions IN THREE DIMENSIONS The second dimension Tools Three levels of optimization go into every Alfa Laval tank cleaning solution. One of them is our tools, such as the 3D G-Pass software that lets us view your tank from every possible angle. Using G-Pass, we can see your tank with all its obstructions - including corrugations and stringer platforms. This gives us a total assessment of the tank cleaning shadows, based on your tank’s configuration and the position, quantity, jet length and jet hit angle of the tank GAC renews tanker contract cleaning machines. As a result, you can receive a cleaning solution that does Gulf Agency Company (GAC), a global provider of shipping, logistics and marine services, has signed a contract renewal agreement with Chevron Shipping Company (CSC), the fleet subsidiary of Chevron Corporation. Under the continuing arrangement, GAC remains CSC's sole provider of tanker agency services worldwide. CSC has had a long-standing September 2006 z relationship with GAC, going back to the early 1970s when GAC was a growing force in ship agency services in the Middle East. In 1996, the two companies signed an alliance agreement appointing GAC as the sole agent in the East Mediterranean, Black Sea, Middle East and Indian subcontinent. In 1999, the agreement was renewed with the addition of Africa and Europe, and in 2002 the two companies sealed the first global agency contract. TO TANKEROperator more than just look good in theory. One that provides real-life results to match. To learn more, contact Alfa Laval. www.alfalaval.com/marine 09 p4-11.qxd 06/09/2006 05:39 Page 7 NEWS Broström increases fleet Broström has entered into an agreement with its partner Rigel Schiffahrts, whereby Broström will acquire the 37,000 dwt chemical tankers Geestestern and Leinestern. An option agreement has also been reached giving Broström the right to acquire Hunterstern, after her existing charter ends, or the latest by the end of 2007. The vessels were built in 2004 and 2005, and are sisters to the Broström controlled vessels Bro Etienne, Bro Elliot and Bro Edward. All six vessels were built at the same yard in China. Broström and Rigel Schiffahrts have been partners for many years. Broström commercially operates a fleet of 13 vessels in the size range of between 17,000 dwt and 37,000 dwt controlled by Rigel Schiffahrts. Rigel Schiffahrts will continue the technical and crewing management for the vessels that Broström now will acquire. "Our initial investment in Bro Elizabeth and Bro Ellen, 37,000 dwt, built 2001 and 2002, turned out very well and we therefore in 2002 decided together with Rigel Schiffahrts to increase our activities in that size segment and (as a result) we placed a joint newbuilding order. To now step up our own owning stake in this segment is in line with our strategy for this segment adopted back in 1998", said Lennart Simonsson, Broström's ceo. In another move Brostrom has agreed to sell the 14,320 dwt Bro Traveller. She will be delivered to her new owner in September. One of Broström's core products tanker segments is in the intermediate size range between 10,000 dwt and 20,000 dwt. These vessels are primarily trading in North European waters distributing refined oil products for the oil industry. As the considerable number of newbuildings are gradually joining the Broström fleet, older tonnage is being phased out. Broström's intermediate sector accounts for 32 vessels with a further nine vessels to be delivered within the next three years. In the company's first half review, Brostrom said that freight rates were volatile during the period. The year started strongly, but a sharp downturn in the latter part of the first quarter continued through most of the second. Due to Broström's strong reliance on contracts of affreightment (coas) and thus the longterm scheduling of the fleet, the downturn in the freight market during the latter part of the first quarter did not affect earnings until the second quarter. By the close of the second quarter and during the start of the third quarter Broström saw an improvement in the freight market, which for the larger tonnage proved considerable. The newly built vessels Bro Deliverer and Bro Designer were delivered during the second quarter (see technical news). As for the outlook for the rest of this year, Broström said the start of the third quarter of 2006 has, despite the seasonal downturn, saw a strengthening in the market in its sector, which for large tonnage had been considerable. Structural changes in the market and widening regional imbalances are currently acting favourably for the company's fleet. The outlook for 2006 as a whole continues to be bullish, the TO company said. Marshall Islands milestone Dutch ease registration laws Mitsui OSK Line (MOL) has become the first major Japanese shipowner to register a vessel with the Marshall Islands Maritime Registry, marking the beginning of a new era for the flag in Asia's largest maritime market. The Opal Express, a 48,635 dwt new products tanker, joined the Registry at the end of May this year following her delivery from the Iwagi Zosen shipyard in Japan. "We are very pleased that MOL decided on the Marshall Islands Maritime Registry and we view the new vessel registration as an endorsement of our service focused strategy for the ship owning community in Japan and around the world," said Bill Gallagher, president of International Registries (IRI), the maritime and corporate administrator of the Marshall Recent changes to Dutch law safeguarding the right of free establishment in Europe mean that ship registration regulations in the Netherlands have been relaxed. Taco van der Valk, partner at leading Dutch law firm AKD Prinsen Van Wijmen says: "It is now easier for both European and non-European companies to register their vessels in the Netherlands." The recent change brings Dutch law in line with a 2004 European Court of Justice decision, which ruled that Dutch national law, although apparently in accordance with the UN Convention on the Law of the Sea, which requires a 10 Islands flag. "Captain Yasushi Higuma, Marshall Islands deputy commissioner of maritime affairs in Japan, is leading the drive to expand our presence in the maritime community and this vessel joining the registry is indicative of the growing demand for our efficient and reliable services in this market," said Annie Ng, managing director of International Registries (FE). In June 2005, IRFE opened an office in the Nishi-Shinbashi district of Tokyo. "Our office is offering full vessel registration and electronic mortgage recordation services locally here in Japan. This will save owners in the typical transactional costs associated with overseas registrations," said Captain Higuma. The Marshall Islands is currently ranked as the fifth largest registry in the world with 1,250 vessels and TO 33.5 mill gt of shipping. 'genuine link between the State and the ship', contravened European law by being too restrictive. In the past companies could only register their vessels in the Netherlands if: At least two-thirds of the ship was owned by a European Community (EC) or European Economic Area (EEA) national company and the business of the vessel was conducted by EC or EEA nationals through a Netherlands-based office. These requirements have been removed. However, it is still the case that the company that registers the vessel must itself be registered in Europe. In addition there must also be a Netherlandsbased representative who has full authority to act for TO the ship. TANKEROperator z September 2006 p4-11.qxd 06/09/2006 05:39 Page 8 NEWS Tax saving measures announced The Government of Barbados is launching a series of tax saving measures aimed at international shipping companies looking for offshore services. The Barbados Shipping Corporation Act has been revised and includes the following clauses, which will benefit both companies controlling vessels flying the Barbados flag and shipping companies incorporated on the island: Foreign companies may operate Barbados registered ships without being eligible for Barbados taxes. Shipowning companies, shipmanaging companies and ship crewing companies may be incorporated in Barbados. Shipping companies in Barbados may elect to be incorporated as tax exempt corporations. In this case a scale of fees is employed, which is considerably lower than the standard Barbados tax rate. Shipowning companies incorporated in Barbados, as either a taxed shipping corporation or a tax exempt corporation, can register individual ships under the Barbados Shipping Act as tax exempt ships. Companies taking advantage of the tax exempt corporation status and or the tax exempt ship will be eligible for Barbados corporation tax, or the tax exempt corporation fee, calculated minus the profits from all ship registered a tax exempt ships. Both forms of company corporation are eligible to receive the benefits of the reciprocal taxation treaties currently in existence. September 2006 z Both forms of ship registration have normal allowance for bareboat chartering out of Barbados Maritime Ship Registry (BMSR). Welcoming the changes, BMSR principal registrar Chris Sawyer said: "This is a welcome boost for both the island and the flag. Barbados is an extremely attractive location for international shipping companies looking for high quality offshore services. Setting up a shipping company in Barbados will now be easier and more tax efficient than ever before and the Act will enable owners to bareboat charter their vessels into the register with minimal fuss." Tank cleaning solutions IN THREE DIMENSIONS The third dimension Technology Three levels of optimization go into every Alfa Laval tank cleaning solution. One of them is our technology, including the Gunclean Toftejorg i65 S tank cleaning machine with its built-in speed adjustment and hysterisis clutch. The hysterisis clutch is a soft starter, which means that it never slips in the way that standard magnetic clutches can. Its reliability is matched by lowfriction ceramic bearings and an optimized turbine, which create greater BMSR’s Chris Sawyer The BMSR has also added the Hellenic Register of Ships and the Polish Register of Ships to its list of approved class societies. Following a four year analysis of the Paris MOU Port State Control's detention records, BMSR has announced that it is satisfied that these registers offer high quality safety services which meet BMSR's strict criteria. The two class societies join American Bureau of Shipping, Bureau Veritas, China Classification Society, Det Norske Veritas, Germanischer Lloyd, Korea Register of Shipping, Lloyd's Register, Nippon Kaiji Kyokai, Registro Italiano Navale and Register of Russian Shipping as being approved by Barbados flag state. TO TANKEROperator wear resistance and excellent power transmission. All this makes the Gunclean Toftejorg i65 S a high-power investment with low spare parts consumption. A perfect example of our tank cleaning expertise. To learn more, contact Alfa Laval. www.alfalaval.com/marine 11 p12-14.qxd 06/09/2006 05:45 Page 1 TANKER MARKETS What does the future hold? With today's tanker markets showing no signs of slowing down, a major report has been published, which more or less forecasts that the bullish tone will continue for the next few years. There are many short term effects hitting the tanker market at present says US marine transport advisors McQuilling Services in its latest Tanker Market Outlook - a forecast for the period 2006-2010. 'Chavez effect' whereby the Venezuelan government is keen to sell its oil to anybody but the US could have a long term effect on tonne miles, especially if China becomes a serious buyer. Short term, the oncoming hurricane season in the US/Mexican Gulf is predicted to be more severe than normal, which could hit oil supplies and lead to tankers seeking charters elsewhere. The VLCC market is finely balanced between supply and demand, but the weight is coming the Caribbean this is expected to be moderate during the first half of the period and then soften by around 10% during the second period. For clean trades, a moderate increase in rates is forecast, especially in Asia, while the medium range (MR) products tanker market is forecast to remain flat in the Caribbean, but grow slightly in Asia. In general, clean trades are expected to firm as consumption requirements in the west increases and product barrels are supplied on increasingly longer VLCCs could continue to reap the benefits of a firm market. For example, unusually high rate levels were experienced throughout June and July, in part due to unexpected Chinese demand, plus short term tonnage supply disruptions, caused by some vessels being used for storage and significant discharge delays on the west coast US. It is expected that the Prudhoe Bay situation will also create extra demand, primarily with VLCCs and suezmaxes loading in the Middle East Gulf (MEG) for the west coast US, although it doesn't appear to have had much influence thus far (mid August). However, vessels already fixed for long haul voyages won't become free for a couple of weeks. Other unknowns, which could have future repercussions on the tanker market include the Lebanese situation and of course the ongoing US/Iran saga. The 12 down in favour of the supply side as more and more newbuildings come on stream, only to be replaced by still more newbuildings. Rates are expected to come under pressure in the period under review especially if oil demand growth eases on the back of unprecedented high oil prices. However, McQuilling thinks that significant market volatility will help keep rate levels artificially higher than the fundamentals would suggest. Historically, the suezmax sector has always shown a surplus of tonnage relative to demand. Nevertheless, the rates have also held in this sector during the first half of this year, which was above expectations. McQuilling expects much the same behaviour in the suezmax sector as in the VLCC sector during the coming five year period. As for the aframax sector, in trade routes. McQuilling said that it expects the tanker market to become weaker over the next five years, primarily due to two factors - a forecast increase in tonnage and a decrease in demand due to a downturn in oil demand growth. The analysts found that the VLCC sector was taking up much of the demand at the expense of other tanker types. Shipyard order books are at historically high levels and show no signs of abating. One wildcard on supply is China. Productivity is still slow, but several large yards are currently under construction. It might take a decade for the Chinese to dominate the shipbuilding scene, or they may achieve it much faster. There is no doubt that it will happen. The other wildcard, according to McQuilling is the IMO single hull phase out. The exemptions being handed out may mean that the number of vessels expected to be phased out by 2010 will change. The phase out should still create a wave of volatility in the short term before 2010. Today, asset prices are more or less double of those recorded in 2002. Despite this, the time charter equivalent (TCE) earnings still generate an acceptable return, as does the forecasted rate for the next five years. Current market levels generate free cash flow well in excess of these levels. Investment analysis revealed acceptable returns, which is surprising given the level of investment needed with the higher price levels seen today, putting pressure on profit and loss, McQuilling said. The report identified the volatility of freight rates seen in the VLCC market for the past two years. Demand has grown to almost meet supply in the past few years. Given this situation, any short term supply problems, or short term changes in production levels, generate a wide response in spot market levels, resulting in violent swings rather than steady adjustments. Multiple events occurring simultaneously can have the effect of wild fluctuations in rates, which cannot be forecast. Both owners and charterers could be caught out by these unforeseen market movers. Real time market intelligence and accuracy in market entry timing are key to managing spot revenues and costs in the current environment. McQuilling concluded by saying although the forecast was a downward rate trend, earnings should still remain at an acceptable level, especially for large tankers. Given the potential upside after 2010, an argument could be made that any investment at worst would yield acceptable earnings levels and at best unprecedented returns. TO TANKEROperator z September 2006 p12-14.qxd 06/09/2006 05:46 Page 2 OPERATIONS PROFILE S ISS forms tanker department ince then there has been a radical overhaul of the company, which now claims to be a service concern, rather than just a ship's agency. However, not forgetting its origins, ISS still claims to be the world's largest port agency handling more than 50,000 port calls per year from its 200 offices worldwide. Under its new chief executive Claus Hyldager, last year the company set a goal to double its size by 2010. In 2005, ISS announced that it had reached its goal of doubling in size since 2002. The major changes from the organisational reshuffle saw the company become more IT focused. Another area being marketed is the offering of outsourcing expertise to companies in a partnership type deal. However, for TANKEROperator readers, one of the key initiatives was the forming of a specialised tanker team. Department head David Porter, general manager - group partnerships, explained that the tanker team evolved through the growth in the business. He said that about 40% of the vessels handled by Inchcape are tankers of some shape or size, carrying a multitude of oils and liquid products. "The world’s tanker fleet is reportedly in excess of 10,000 and continuing to grow, which means a lot of port calls needing the services of an experienced agent", Porter explained. "ISS' tanker team was not created in a single instant, it evolved over the years of growing the business sector, with September 2006 z At the beginning of July leading ship’s agency concern Inchcape Shipping Services (ISS) went through another sea change, including its purchase by a second investment vehicle. The new owner is Dubai-based investment concern Istithmar, which bought the company from its original owner UK investment group Electra Investment Trust. Inchcape representatives attending to the tankers needs at the many and diverse terminals and handling facilities. Along be transported replacing depleted domestic supplies to homes and industry, so ISS has focused on this fast moving growth sector. Ceo Claus Hyldager has overseen the creation of a specialist tanker department. with growth came a lot of local knowledge and expertise, hence we are - a world of local expertise", he said. Addressing the difference between tanker types, such as LPG and LNGCs, he said that subtle differences between the shipping needs required a different team but with the same approach. As the world has developed there is now a need for LNG to TANKEROperator "A global team brings together the knowledge and expertise of our people, sharing observations and experiences across and to the benefit of the whole organisation," Porter said. Even though LNG has moved to the forefront of shipping in recent years due to the development of new gas fields and the need to have receiving terminals in populous areas, LPG and LNG have been transported by sea for almost 50 years. "There have been major steps taken in the design of ships, and the handling of these dangerous cargoes, all of which we must keep abreast, training our people and following up to ensure we can provide the services required by these vessels. The main difference in the handling of any ships is its cargo," he stressed. He continued; "Spending in the region of 95% of its life at sea, it is easy to see that the goal of good and profitable operations requires the tanker to be on the move, and loaded with oil more days than in ballast. "Port turnarounds must be carefully managed to minimise the time spent in port, and services provided offshore, while the tanker may be passing a supply point. These need to be planned ahead and efficiently executed. "These activities require the ship's agent to be attentive to the ship's schedule, efficient in coordinating the delivery of services provided by a variety of vendors and a constant awareness, which must have the safety and welfare of the ships’ crews, our own and vendor employees at the heart of everything we do", he said. With some tankers involved in offshore shuttle work and ship-toship transfers, ISS is involved in a large number of offshore activities, whether a ship is loading at a remotely located terminal, or carrying out ship-toship operations. "Each operation will require the service of an agent in some way or another, with each location having its own requirements," Porter explained. Another example is Fujairah where ISS serves vessels either anchored or passing on a daily 13 p12-14.qxd 06/09/2006 05:46 Page 3 OPERATIONS PROFILE basis with a fleet of supply launches based at the UAE port at which there is also a company warehouse for the handling of spare parts, plus some crew accommodation. An example of the joint venture approach was the signing of an agreement with Prisco Shipping Corp in June, which marked ISS' entry into the Far East Russian market to serve existing and future business needs. Although ExxonMobil is ISS' largest client, the company has several large tanker owners and operators on its books, both for port agency and management services. Notable larger accounts in addition to ExxonMobil and Exmar, with regional or global agreements are - Maersk Tankers, BP Shipping, Shell, Teekay, Brostrom and Titan Ocean. ISS is also present at some terminals, an example of which is the UK Esso refinery at Fawley. “ Spending in the region of 95% of its life at sea, it is easy to see that the goal of good and profitable operations requires the tanker to be on the move, and loaded with oil more days than in ballast. ” David Porter, general manager - group partnerships, Inchcape Shipping Services According to Porter, with the agent located on the terminal, ISS is able to be close to the activity providing an efficient vessel turnaround and services to the shipowner. In addition to the normal duties of a good tanker agent, the ISS Fawley staff work closely with the terminal staff on scheduling the ships berthing and providing cargo documentation services. At other oil terminals around the world, ISS offices are typically located within a reasonable distance and normally within the nearest port area. The network of tanker expertise is part of global operations, which evolved from the large tanker activity over the past few years. The services provided to the larger accounts are managed through service centres located at four strategic locations - Houston, Singapore, Dubai and the UK. "This gives the ship owner/operator a focal point for his account, while still being in direct contact with the tanker teams at the ports for operational purposes", Porter said. Most of the agent's experience is gained from learning at the port level, building up local expertise in a particular area. ISS has developed training programmes, which cover all aspects of the business and the different types of cargo carried by the ships that are served to augment this local knowledge. For those ports where multiple cargoes are handled, the ships agent must have the knowledge of each of these trades and the particular service requirements. Likewise, where ports have multiple oil terminals, a sound knowledge of each terminal’s needs and requirements is also required. TO The South of England Protection and Indemnity Association (Bermuda) Limited Hamilton, Bermuda For further information regarding this alternative P&I club please contact: The South of England Management AG Branch Office Zimex Business Aviation Center Bimenzältenstrasse 75, CH-8058 Zurich Airport, Switzerland Tel +41 (0) 433 88 34 88 Fax +41 (0) 433 88 34 89 Email [email protected] Website www.sepia-pandi.com 14 TANKEROperator z September 2006 p15-25.qxd 06/09/2006 11:50 Page 1 SHIPMANAGEMENT Newcomer in expansive mood A relative newcomer to the Glasgow scene is GBLT Shipmanagement (UK), the UK branch of the ever expanding Jakarta-based PT Berlian Laju Tanker (BLT) Group. BLT currently controls more than 50 oil, chemical and gas tankers and has another eight to 10 vessels on order in Japan. Parent BLT has adopted the mantra ‘global perspective with local solutions,’ hence the forming of GBLT. B LT's technical management is focused on Singapore, while Glasgow looks after the commercial side of all the vessels trading west of the Suez Canal. The UK office was opened as recently as January 2004. One of the founding directors was former Denholm boss Bob Speedie who was persuaded to come out of retirement to take on a hands on role at GBLT as managing director. The other founding father was finance director Alex Cannon. As well as looking after the commercial side of the business in Europe, the Baltic, Black Sea, West Africa and South America, GBLT provides technical supervision for seven high grade chemical tankers that were financed in the UK as required by the UK rules. The UK ships are monitored every 18 months, while BLT's other vessels increasingly calling at European ports are also inspected under the watchful eye of marine controller Ken Lyall. Two of the stainless steel chemical tankers technically supervised from Clydeside are of 14,200 dwt, two are of 11,600 dwt, another two are of 8,600 dwt, while a single 10,300 dwt chemical tanker makes up the UK fleet. The average age of the fleet is around three years and they all fly the Singapore flag being classed by ClassNK. BLT intends to expand its Glasgow- the capital of shipmanagement There have been shipmanagement companies in Glasgow for many years. Their ranks have been swelled recently with the arrival of Teekay, GBLT and rumoured relocation of Maersk UK's technical team from London's Canary Wharf to Glasgow. Glasgow has changed an awful lot down the years. Since it won the coveted European City of Culture in 1990, it is now the third city on the UK tourist map, behind London and neighbour Edinburgh. Another more recent example is that replacing the old shipbuilding cranes, slipways and riverside wharves is a purpose-built September 2006 z international financial services district, which is about half way through a 10-year growth plan. When complete in 2011, the district will employ 20,000 people. Despite a slow beginning to its financial aspirations, last year Glasgow experienced the highest uptake in UK commercial property after London. Financial services and support functions are the areas being marketed by the city's leaders. And of course, shipmanagers have been providing support functions for years for their customers - the shipowner. The city now boasts a high TANKEROperator quality labour force partly spawned by its four universities - a fact not lost on the shipping community. Recruiting experienced ex-seafarers also does not seem to have been a problem, or not as much of a problem as elsewhere. Both international and national connections are good, unless like TANKEROperator's Editor you had your flight cancelled during the latest security clampdown. The Glasgow shipping fraternity even have their own website - www.clydeshipping. co.uk - which lists many of the companies involved in shipmanagement. UK presence and possibly open another office on the European mainland. Thus far, the Scottish office employs nine people. One of the reasons for setting up the office, claimed new chartering manager Sven Kristensen who joined the company in June, is the change of sentiment in the market. BLT was already well established in the Middle East and in Asia, but the company was finding increased interest in its ships from Western charterers. Kristensen said the company prefers to do business on a contract or spot basis. This gives the company a hands on relationship with its customers, rather than rely on third parties as sometimes happens with timecharters. He said the Middle East situation caused somewhat of a crisis in the market with rates fluctuating wildly. However, the forecasts for the next sixth months into the first quarter of next year point to a very firm market, in part due to the MARPOL and chemical realignments (see page 33) that are due to be implemented at the beginning of the year. In February of this year, GBLT attained its ISO 9001:2000 accreditation from Lloyd's Register. Parent BLT firmly believes in a 'global perspective TO with local solutions.' 15 p15-25.qxd 06/09/2006 11:50 Page 2 p15-25.qxd 06/09/2006 11:50 Page 3 SHIPMANAGEMENT Regionalisation is the name of the game S ometime before this regionalisation was put in place, two business units had already been created - vessel operations arm Teekay Marine Services and commercial operations department Teekay Tanker Services. As a result of the switch to a more regional style of management, the two business units now work much closer together by way of: Working closer with customers. Greater interaction with ships, ship teams and seafarers. Access to shore-based marine expertise in the regions. Teekay said that it had moved 50 of its personnel from Vancouver to other locations worldwide. However, it asserted that Vancouver will remain the company's corporate headquarters, with a reduced staff of around 250 employees. John Adams, managing director Teekay Marine Services explained the reasoning behind this. He said that the demographics have changed down the years with the result that the company decided to set up shop closer to its customers. He also explained that the Glasgow office works closely with the commercial team in London. Glasgow is home to around 40 Teekay Marine Services people, and in addition some have postfixture personnel working alongside other commercial staff under the banner of Teekay Tanker Services, giving a total of 19 in the London office. Adams is based at the Glasgow premises together with fleet director David September 2006 z Another company to firmly establish a base on Clydeside is Teekay. Last year, the Vancouver-based company took the decision to partially regionalise its operations and set up management bases in Houston, Singapore and Glasgow. Penny, who heads up one of the ship teams. European acquisitions A significant portion of Teekay's fleet operates in the European theatre, especially following the purchase of Navion (Statoil), Ugland Shuttle Tankers and Bona's combination and aframax fleets a few years ago. The North Sea shuttle tanker operation is managed out of Teekay's Norwegian office. Adams explained that the main focus of Teekay Marine Services is to ensure Teekay's brand reputation for quality, safety and service is maintained through the technical management and operation of the company's owned and chartered in tonnage. Although not completely ruling out third party business, he said this would only be countenanced in the right circumstances. Basically, the Glasgow office handles Teekay operated vessels in the Atlantic basin. The Houston office takes care of the vessels in the Mexican/US Gulf area, while Singapore naturally looks after the Asia/Pacific arena. In addition to the core aframax sector, Glasgow will also technically operate Teekay's nine newbuilding LNG carriers when they are delivered. The current LNGC fleet is managed out of Spain, having been under the TANKEROperator Tapias banner before Teekay bought the company a couple of years back. Teekay also has its own vessel operations office in Australia. Teekay Marine Services is now structured to look after all of the Teekay fleet operating in national and regional markets. Seafarers are one if not the most important consideration for Teekay and Adams said Glasgow is an ideal base from which to coordinate the crewing side of the business. "To address the current worldwide manning problem, Teekay takes a longterm approach on how to run a quality operation and develop staff accordingly," Adams said. "We have moved away from using the word 'manning', which sounds reactive, as though just placing people onto ships. "Instead we talk about Marine HR and developing committed, motivated staff driven by sound HR management practices. This is about people development and raising the bar in quality," Adams continued. "Within Teekay, we see crewing as having a strategic role, it has to be acknowledged that human resources are scarce and there's a dwindling pool of acceptable people who will meet our standards. That's why we also have a separate training budget, which is seen as a fleet overhead", he explained. Teekay has a three-prong strategy specifically for manning the LNGCs. These are: 1) Harnessing existing experience in steam turbine, LNG and LPG operations. 2) Training is undertaken over and above statutory requirements, including sea time and practical experience on board Teekay Spain's LNGCs. Also LNG competencies under the company's SCOPE scheme (see page 18), plus certified STCW and simulator training at its own in-house training centre. 3) Supplementing the seafarers with ready-made LNG experienced personnel. “ To address the current worldwide manning problem, Teekay takes a longterm approach on how to run a quality operation and develop staff accordingly. John Adams, managing director, Teekay Marine Services ” 17 p15-25.qxd 06/09/2006 11:50 Page 4 SHIPMANAGEMENT In-house training Although training establishments are also used throughout Europe, including the UK and Norway the Norwegian training facilities used by Teekay have a specific focus shuttle tanker training and operations - the core training is undertaken at a purpose built centre housed within Teekay's Glasgow regional headquarters. This centre has its own permanent instruction team. It is also fitted with an LNG simulator and Teekay offers its own accreditation to its employees once trained. The centre is also flag state approved for oil tanker training. There is also a liquid cargo handling simulator for both oil and gas, which can be accessed by up to five students and an instructor simultaneously. Seafarers are regularly validated by the company by using in-house software, which enables their progress to be plotted and all the necessary paper work, such as certificates and endorsements, kept up to date, which Teekay calls a seafarer competence for operational excellence (SCOPE) scheme. "We operate the world's first accredited competence :;>C135-: 5:@1>:-@5;:-8 ?45<>135?@1>:5? 4UST]aMXU`e[\`U[ZR[^^QSU_`^M`U[Z& :[^cMeTM_MTUSTXe^Q_\QO`QPVaPUOUMX_e_`QYMZP :[^cQSUMZXMcU_^QO[SZU_QPUZ`TQYM^U`UYQ ^QXM`QPÉQXPM__[\TU_`UOM`QPMZP\^QPUO`MNXQ CQN&cccZU_Z[^Z[1YMUX&\[_`,ZU_Z[^Z[<T[ZQ& #!!! ! 18 management system, which was endorsed by DNV," Adams claimed. Teekay has identified in excess of 400 best practices and more than 3,000 knowledge areas and each seafarer has his or her 'continuing professional development portfolio'. "We have raised the bar and gone beyond the STCW," Adams claimed. "It has been well received by the seafarers who are keen to improve themselves." Speaking about TMSA, Adams claimed that Teekay was one of the first companies to submit its procedures. Two audits have already been completed by major customers. "We are far down the line with it," Adams said. Teekay already had what it calls a marine operations management system (MOMS) in place and also has ISM, ISO 9000, ISO 14,000 and ISO 18,000 all in one system. "We use the 'Demming Cycle' plando-check-act theory," he explained, "which is a good fit with the TMSA's plan-actmeasure-improve approach". Adams also thought that TMSA was a good fit generally for what Teekay already undertakes and said that the company already had an in-house version in place. "Being a market leader, we are proactive, rather than reactive," he said. Teekay also operates a computerised system called Structural Integrity Management System (SIMS), which was developed in co-operation with the class societies. Each vessel carries a specific ship inspection manual that guides the crew, Teekay's in-house inspectors and third party contractors through inspection cycles of different areas of vessels'structures. In co-operation with the University of British Columbia, Teekay has designed a package Toolbox for Operational Risk Analysis (TORA) - whereby data is disseminated to analyse incident patterns against TO operational factors. TANKEROperator z September 2006 p15-25.qxd 06/09/2006 11:51 Page 5 See us at SMM Hamburg stand EG.254 Hall 10 Seals Interbond® 808 Proven, high performance anticorrosive technology. Excellent sealing properties. Light coloured tar free epoxy. Surface and damp tolerance controls surface preparation costs plus allows at sea scheduling. One coat application capable. Fast service entry. Options for use on board or drydock maintenance. Ideal for Water Ballast Tanks and Wet Spaces. www.international-marine.com , International and Interbond are trademarks of or are licensed to Akzo Nobel © Akzo Nobel, 2006 p15-25.qxd 06/09/2006 11:51 Page 6 SHIPMANAGEMENT Compartmentalisation leads to greater exposure S hipmanagers are faced with an abundance of codes, regulations, legislation and various other requirements, all of which must be complied with. For example, the ISM Code, the ISPS Code, flag state and port state requirements, SOLAS, and MARPOL, to name but a few. In addition, charterers not only expect the ships they charter to meet the highest standards, but back this up with various vettings, inspections and other schemes, such as CDI vettings, SIRE reporting and Tanker SO9001:2000: why it should be implemented in the shipmanagement sector* Management Self Assessment (TMSA). Why then should a ship manager choose to impose further impositions on themselves by voluntarily implementing ISO9001:2000 throughout their organisation? The answer lies in the very abundance of requirements and the complex nature of shipmanagement itself. These two factors have led many Bill Lunn emphasised that compartmentalisation was becoming a problem. 20 shipmanagers to become compartmentalised, with areas of speciality developing within the organisation, for example, purchasing departments, crewing departments, technical departments, marine departments, as well as specialists in sale and purchase, insurance, travel, training, safety and security. The increase in size of many shipmanagers due to organic growth, mergers and acquisitions, as well as the growth in third party management has also led many organisations to experience greater degrees of compartmentalisation. The outcome of this compartmentalisation is often departmental defensiveness, and a 'not my job' attitude among employees. Consider the various departments of a typical ship management company involved in the routine task of arranging for an officer to join a vessel to allow the office on board to go home for leave. They could include: The personnel department will be keen to choose a port for his joining the vessel, which will match its relief schedule and accommodates its forward planning. This will ensure that no costly standby payments have to be made. The technical department would like the officer to join in a port where the time alongside will be several days, so that the relief officer can get a good handover. Alternatively, this department might wish for the on board officer and his relief to sail together for a short period. This will help to ensure that no costly mistakes are made by the new joiner, due to lack of first hand knowledge of that particular ship and its equipment, the department believes. The travel department will be keen to minimise the cost of air fares, hotels etc, and may be influenced to arrange flights, which require several transfers, rather than choose a more direct but more expensive route. The marine department, on the other hand, feel it is necessary to have the officer call into the office for a briefing on security and the companies reporting procedures, etc. How then can the management system ensure that the reliever is put on board the vessel at an appropriate port, sufficiently rested prior to commencing his duties and properly briefed and familiarised with his responsibilities, and yet without incurring unnecessary expenses? In the above example, each department has come to adopt a very narrow interpretation of its role within the organisation. They have become poor team players and fail to see the big picture. A system has to be put in place, which both encourages TANKEROperator z September 2006 p15-25.qxd 06/09/2006 11:52 Page 7 SHIPMANAGEMENT “ Traditional definitions of quality ...fail to deliver the necessary mindset among employees to promote their active participation in helping the company achieve its objectives. and empowers all staff to participate fully in the company's business plans. Staff need to consult each other, and to understand the value of their contributions to the company as a whole. Needless inefficiencies need to be exposed and corrected, as do unnecessary or avoidable costs. Traditional definitions of quality such as 'fit for purpose' and 'right first time, right every time' fail to deliver the necessary mindset among employees to ” promote their active participation in helping the company achieve its objectives. ISO9001:2000, however, has moved on from this narrow interpretation of quality. It has adopted the 'process approach'. This approach ensures not only ongoing control over the connections between the various processes within the system, but also helps an organisation understand and control the combination and interactions of these processes. This approach emphasises the importance of: Understanding and fulfilling customers' (and legal) requirements. Considering processes in terms of the value they add. Recording the results of process performance and effectiveness. Using objective measurements to ensure continual improvement of processes. Section 4.1 'General requirements' of the code outlines the various steps required to establish, implement and maintain a process approach management system and to continually improve its effectiveness. The remainder of the standard can be considered as giving the necessary detail required to ensure each of these steps are fulfilled and that planned results and continual improvement of the processes are achieved. By implementing a management system as required by ISO9001:2000, costly mistakes, oversights and errors are reduced or eliminated and by striving for continuous improvements, profitability is improved due to increased efficiencies. The new InterManager publication 'Guidelines on implementing ISO9001:2000 for shipmanagers and crew managers' (see page 32) explains how such an organisation can develop its management system, using a 'top down' approach. Each of the various elements in the standard are addressed, with useful hints and tips, as well as giving examples of customer expectations. TO *By Bill Lunn, MIQA, chairman of the InterManager best practices committee. Be part of a winning team Our team is a dedicated team. A team dedicated to bringing the best to your ships. At Eurasia we believe excellence can only be delivered through a dedicated training regime and constant battle for greater heights of success. Only the best individuals make up the best teams. Headquartered in Hong Kong with offices in 7 different time zones, Eurasia works in partnership with its customers to offer complete ship management solutions. Overall Winner - HKMA Quality Awards 2003 Best Ship Manager in Asia 2002 & 2003 - LLMA Awards Winners of the Best Practice Awards 2004 - Supply Chain Management September 2006 z TANKEROperator Better People. Better Ships. GLOBAL MARITIME SOLUTIONS SILVER JUBILEE YEAR www.eurasiagroup.com 21 p15-25.qxd 06/09/2006 11:54 Page 8 p15-25.qxd 06/09/2006 11:55 Page 9 p15-25.qxd 06/09/2006 11:55 Page 10 SHIPMANAGEMENT ASP reorganises operations Leading shipmanagement concern, ASP Ship Management Group has reorganised its worldwide operations into various ship type groupings. M anaging director and CEO Europe Matt Dunlop explained that previously the group had been structured with the objective of having all the various skills, including drycargo, tanker, bulk etc, available in all the fleet management offices. One of the main objectives for doing this was to have the ability for the management to be as close geographically as possible to the client. However, this needed to be changed. Under the new structure, tankers under ASP management are handled from Melbourne, Mariehamn and Singapore. "It has become evident that as far as tankers are concerned our original objective of having the management close to the client was not the appropriate structure. "The main driver behind this conclusion is that the effective 'client' behind tanker management and operations are the oil majors and as a result, so is the level of audit and documentation required to support those operations. This position has been reinforced by the oil majors declining to accept some of our offices for term business while Melbourne, for example, is already approved," Dunlop explained. Tanker rationalisation ASP decided that it had to rationalise its tanker management structure to cope with this relatively new situation and also to establish a sound base for future development. To do this 24 the group executive agreed to rationalise the tanker management operations in the following way 1. Melbourne is currently the only office that is fully oil major approved for all aspects of tanker management. 2. To focus the tanker operations primarily on two offices, Singapore for operations east of Suez and Mariehamn, Finland for operations west of Suez. A third tanker operation will be maintained in Australia specifically to cover Australian cabotage requirement and specialised Pacific Island trades. 3. To facilitate these changes a new company has been established called ASP Tanker Management. Ultimately, all tanker approval, certification and management will be ASP Tanker Management Organisation 1. The company will hold all approvals and documentation that is not specifically and essentially required to be held in the Branch Office. 2. Singapore will be responsible for all documentation, procedures, procurement, approvals and overall management of ASP Tanker Operation teams along with technical management of tanker contracted east of Suez. 3. Mariehamn will be responsible for all tanker technical management contracted west of Suez. 4. Australia will be responsible for the technical management of tankers operating in the Australian cabotage Trade or in specialised Pacific Island Trades. 5. Each Branch is responsible for the business development of the Tanker Management company ASP Tanker Management Ltd Singapore Branch Mariehamn Branch Australia Branch TANKEROperator z September 2006 p15-25.qxd 06/09/2006 11:56 Page 11 SHIPMANAGEMENT handled by this company. 4. The change in the structure will take place progressively so as to ensure that the approvals held by the Melbourne (and any other) office are not disturbed. CEO Australia Bob Bird will be responsible for the reorganisation east of Suez and Matt Dunlop, managing director and ceo Europe will supervise the process in the Western hemisphere. “ It has become evident that as far as tankers are concerned our original objective of having the management close to the client was not the appropriate structure. ” Matt Dunlop, managing director and ceo Europe, ASP Ship Management Group 5. In Europe, all the tanker activities will be progressively focused in Mariehamn and as part of this process the Oslo office tanker technical management has been transferred to Mariehamn. 6. Similarly in Europe, any tankers managed out of Glasgow will also move to Mariehamn. 7. In due course the tanker operations in all the locations referred to above will become branches of ASP Tanker Management Ltd, which will simplify documentation and approvals procedures. The central management point for all of these activities will be based in Singapore. This also has the added advantage of being in close proximity to all the oil majors Singapore operating offices. 8. The target date for completion of these activities was 30th June 2006, which TO was achieved. Matt Dunlop A wareness of our Ship Owners/Operators needs S afety of the Vessel, Crew and Environment are paramount P roactive Management rather than reactive We ‘listen’ to your Ship Management needs and provide real Solutions! Contact our Commercial Managers for an obligation free discussion on how we can improve your operations: Brian Griffin, ASP Ship Management, Glasgow - Tel: +(44) 141 332 8118 Susana Germino, ASP Ship Management, Hamburg - Tel: +(49) 172 10 12 003 September 2006 z TANKEROperator 25 p26-31.qxd 06/09/2006 06:50 Page 1 SHIPMANAGEMENT TMSA discussed at length TANKEROperator organised another in its successful series of conferences about the Tanker Management Self Asssessment (TMSA) code, produced by oil majors as a means of encouraging shipping companies to continually improve their management systems. The latest conference was held recently in Singapore. The following are a few extracts from the conference where they directly apply to shipmanagement. “W hen we first read TMSA, we thought, this is crazy," said John West, operations manager of Unicom Shipmanagement in Cyprus. "But by the third day we realised, this is quite a good document." Like Unicom, much of the shipping industry initially gave TMSA, the oil companies' guide, a cool welcome. They are also gradually beginning to understand the dynamism of TMSA, almost a market conversation and framework for improvement across the whole business, rather than a one-off list of rules to be complied with. But many are starting to see how it can help tanker operators get rewarded for their competence and compete on their competence, something that has arguably not been happening in the past. It is gradually becoming clear in many sectors of the shipping industry just how big a modernisation force TMSA might be in the shipping industry. Remember how over hyped ISPS was, with so many industry conferences, talk about how the shipping industry would have its vessels detained, so many vendors and security consultants getting excited, and when the deadline passed, it was a complete non-event as all the shipping companies had their pieces of paper - and afterwards 26 forgot all about it? TMSA is the opposite. There is absolutely no hype at all - indeed many tanker operators are saying that since they aren't forced to do it, they won't do it - yet major shipmanagement concerns and shipowners, such as ITM and BW Shipping, are re-organising their entire company structures around it. Some shipmanagers and owners (including Anglo Eastern), that operate both tankers and drybulk vessels are also using the system for their drybulk vessels, rather than have different management systems for different ships in their fleet. Similarly, many vetting inspectors who inspect both tankers and drybulk vessels are also seeing it as a useful framework to audit drybulk vessels against. Information technology TMSA is not specifically about information technology - indeed information technology is only mentioned once in the document - but there is a very strong IT angle here. As shipping companies get more proactive in trying to improve the quality of the operations, the information technology and communications budgets will start to open up; no more 'we're only spending money on this if we have to.' Shipping companies will have an incentive to spend money on improved management systems, better ship-shore communication, computer based training tools and simulators, electronic charts and crew communications facilities. There's more - one of the trickiest systems in TMSA is the one on change management, where tanker operators are asked to have systems in place to make it easier to change. Patrick Slesinger Information technology, as Wallem's CIO Patrick Slesinger said, is a tool for change management. As part of their change management systems, shipowners will be encouraged to realise that just because something was a good idea when they were at sea, it doesn't necessarily mean it is a good idea now. Can you hear the IT budgets unzipping? How far to go Oil companies are likely to look for a minimum compliance with Stage 1 and perhaps to Stage 3 for long term time charters or coas (contracts of affreightment). This does not mean that everybody has to be Stage 3. Oil majors will take whatever they can legally charter rather than let people's cars run out of fuel. "Recently I had heard one oil major who had conducted a few audits saying that he has rarely come across any company which has crossed stage 1 in most elements," said Capt R. Janardhanan, QHSE manager, Anglo Eastern Singapore. "Charterers seeking a level 4 ship are likely to have to pay a high premium for it," said KK Kumar from NYK Shipmanagement. "Only a small proportion of the fleet will reach level 4. To reach this is very difficult and it will take a long time. When you reach it charterers will be very happy to charter your vessel." KK Kumar's recommendation was that companies should certainly comply with level 1, and then subsequently gradually build themselves up the levels like building blocks. "Aim for level 4 in the due course of time," he said. However, the idea of TMSA level 1 being equivalent with ISM level is a myth, said Captain Brown of consultants JCP Marine, or if it is true, there are plenty of vessels out there which are not ISM compliant. To provide an indication of the general level of shipping companies he has reviewed, Brown talked about TMSA and TANKEROperator September 2006 p26-31.qxd 06/09/2006 06:51 Page 2 SHIPMANAGEMENT management audits that he has carried out over the past two to three years with various Asian shipping companies, including Thailand (two companies), Indonesia (two), Japan (four), Malaysia (two), Philippines (two), South Korea (three) and India (five). K.K. Kumar The companies each operated between one and 25 vessels, totalling 32 products tankers, 30 bulk carriers, 20 general cargo ships, 34 chemical / oil tankers, 19 crude oil tankers, two offshore support vessels, one deck cargo ship and two passenger vessels. While TMSA does not strictly speaking provide any calculation method for developing an exact score, Brown tabulated the results and levels of compliance. The results overall indicated the majority of operators (60%) failed to fully comply with Stage 1: 40% scored between 0 to 0.4, 20% 0.5 to 0.9 and 40% 1 to 1.4, he said. The highest scoring elements were chapter 2, recruitment management of shore based personnel (average 1.3), chapter 11, emergency preparedness and contingency planning (1.0) and chapter 5, navigation safety (0.9). The lowest scoring elements were chapters 7, management of change, chapter 8 - incident investigation and analysis, chapter 9 safety management and chapter 10, environment management. The lowest four scoring elements scored about 0.6, that is only 60% of Stage 1 elements were complied with. Costings Both ITM and Teekay said that TMSA would have very little additional costs in their companies, since they were doing most of it anyway. "We've really had most of these best practises in our system in the past. It's not really costing the owner much," said ITM's Kauchhur. "The owners have not seen any increase in their budgets. You need to have your reporting incorporated in your existing systems. We always did have a planned maintenance system." "The only cost we would emphasise is some amount of training," said Janardhanan. "Owners are well aware of it." NYK, by contrast, is expecting to spend around $20,000 per vessel, which is mostly spent on training, including onboard training (CBT, videos and roving trainers), plus shore training (seminars, simulators, courses). There is also some additional manpower requirements, and documentation. The company also developed its own training programs, and has some incentive programmes for staff based around risk assessment and management. Kumar said he did not think shipmanagers would be able to cover the costs of the necessary investment out of their management fees. "There's no way a management fee can pay for this. You have to find it yourself, or from the owners.” West said that Unicom was planning to spend $40,000 per vessel on TMSA. "We will implement TMSA and take standards of recruitment and employment forward," he said. Brown said he had noted that shipowners do a lot better at TMSA if the pressure to do it comes from within the company, not outside. "In particular it needs management commitment from the highest level," he said. No-one is expecting the TMSA document to stay static. "I'm sure TMSA will be revised in the not too distant future," said Kauchhur. "OCIMF does welcome suggestions for improvements," said Brown. "You can submit feedback to the appropriate OCIMF committees." It will be a while before the industry knows exactly what the reward will be for reaching the upper levels, but the industry should be thinking about it, otherwise it is just another compliance system, said conference chairman Dimitris Lyras. A thorough check TMSA does hold up a lot of hope for being able to provide oil majors (and indeed, ship operators) with a more realistic view of what happens onboard ship than with the current ISM plus inspection systems. Brown said that he was not entirely confident in TMSA, and whether it was impossible for a corrupt tanker operator to pull the wool over a vetting inspector's eyes. "It depends on the operator," he said. "Someone who was just lying will continue to do so. "Are we saying an irresponsible operator will do the same with TMSA?" he was asked. "I would suggest it is a possibility," he replied. Julian Brown. left, and John West. MEET US AT SMM Hall 10.EG.240 Need anchors and chains? www.wortelboer.nl September 2006 TANKEROperator 27 p26-31.qxd 06/09/2006 06:51 Page 3 SHIPMANAGEMENT There was sceptism expressed in the conference about whether TMSA would actually lead to reduced inspections. "They say TMSA will lead to reduced inspections. How far it will be true, we have to see," said Janardhanan. Tricky aspects The trickiest aspects of TMSA, most speakers agreed, were the change management, risk assessment and incident reporting. "We're finding management of change one of the most difficult elements - we're struggling to get our heads around it," said West. "Oil majors are still trying to get their heads around it." "Management of change is one element which stands out from the rest of TMSA," said BW Shipping's Captain Vibhas Garg. "You have to ensure changes don't lead to unnecessary risks." "Management of change is difficult," said Janardhanan. By 'change management', what TMSA actually means to do, it emerges, is kill off the attitude prevalent in shipping companies, 'we didn't do that when I was at sea'. People who take this attitude are not very good at change management. ITM has implemented change management procedures. For example, if it is moving into a new trade, it will take on people with experience in that trade. "We all need a common understanding of the management of change," said Kauchhur. "We believe management of change will be the toughest one," echoed Kumar. Implementation of risk assessment should be done in a structured way so as to have consistency of application across the fleet," said Kauchhur. "We are working on how we are going to make this happen effectively." There were suggestions that tanker companies should get seafarers more involved in risk assessment and root cause analysis, rather than seeing it as for something for the shore office to do. Equal across a fleet For management purposes it is probably easier to maintain all Capt R Janardhanan your fleet at the same level, rather than have a 'star vessel' which gets a higher score but run at a standard you can't keep up with, on your other ships, said Slesinger. "We're operating mixed fleets TMSA applies across the whole fleet - you can't have two separate standards," said West. "Best practice has got to be fleet wide." "If you look at our group - the Singapore office manages tankers and gas carriers. But the decision at the top management is that it has to be implemented across the fleet," said Janardhanan, talking about Anglo Eastern. Seafarers Kauchhur said that in his view, the continuous improvement would make it easier to attract and improve management of seafarers. This view was echoed by John West, who said. "I think TMSA is blue-ic.com ;Å7H;ÅDEJ ...part of the problem www.tankermanager.com INTERNATIONAL TANKER MANAGEMENT - BEYOND COMPLIANCE - 28 TANKEROperator September 2006 p26-31.qxd 06/09/2006 06:52 Page 4 SHIPMANAGEMENT a driving force in better personnel management than has existed in the past. Garg said "I think that seafarers would like to work for a quality operator." It is not clear at this stage how much TMSA will help improve manning levels on ships or ensure that seafarers are taking adequate rest. It does encourage shipowners to make a much greater check that seafarers are making adequate rest, and it does include a large amount of work, which will need extra people to do. However, shipmanagers are still being given vessels to look after on the basis that they can make things work at the minimum manning levels. Legal issues Oil companies do not accept any additional legal responsibility for tanker operators, which have implemented all of the best practice guides. Many sceptical tanker operators see TMSA as a way for oil companies to pass the liability for accidents onto them, as in, 'we chartered you because you said you were doing certain things'. If an oil major ever charters a ship, which has a major accident, the oil company is likely to be more worried about its loss of public image than any legal action, and the general public is unlikely to treat an oil company nicely because of how it chartered its ships. However, most tanker companies would like to be judged on the diligence of their operations after a tanker accident, rather than the fact that the accident happened, because they acknowledge that even good companies have accidents. Due diligence means doing everything reasonable to reduce ;Å7H; Dimitris Lyras with Nicholas Iliopoulus the risk of accidents, and doing everything reasonable afterwards, such as making sure it doesn't happen again. TMSA does provide an excellent framework for due diligence, and being able to demonstrate to authorities that you did due diligence. "The management has to provide proof that they have investigated and can provide preventative action," said Eagle Shipmanagement's Mustaffa Bakri. Janardhanan echoed these views. "It does not say anywhere [In TMSA] that you are not supposed to have an incident," he said. "The point is, if you have an incident blue-ic.com ...part of the solution Distinction. With over 100 cadets on its training roster, ITM places two cadets RQERDUGHDFKRILWVYHVVHOV,702IÀFHUV not only meet the requirements set in 67&:· EXW DUH WUDLQHG OHDGHUV UHDG\ to assume full responsibility for the operation and management of ships of great value. We are actively providing TXDOLÀHG PDQQLQJ«ZH DUH %(<21' &203/,$1&( www.tankermanager.com INTERNATIONAL TANKER MANAGEMENT - BEYOND COMPLIANCE - September 2006 TANKEROperator 29 p26-31.qxd 06/09/2006 06:52 Page 5 SHIPMANAGEMENT you have to follow up and show due diligence. A manager has to show that he used all his resources to mitigate the situation." Many defects? Conference chairman Dimitris Lyras raised the issue of how honest shipping companies should be about their defects, bringing up a story mentioned at TANKEROperator's Athens conference last February about an old vessel just brought into management, where the company had found 300 items it wanted to fix (essentially a 300 defect list), but none of the defects were serious enough to warrant taking the ship out of service. "Would you have that list available to an inspector - would it put you in a good light or a poor light?" he asked. "I think that the simple answer is that it is better to be frank and honest rather than have third parties finding out," said Slesinger. "If I find something you haven't detected I will believe you are trying to hide it. If you say these are known issues and what we're doing about it - I think that's a far better stance." "If you tell oil companies you have 300 item deficiency list, they will say very good, give us a call when it's fixed," said Brown. "Don't be too surprised if they ask to inspect your ship again" he added. "If you take a ship into management with 300 defects the price would have to be very attractive - or you should look into it on your risk assessment," said West. Non believers So far industry reaction to TMSA have been divided up into believers and non-believers / wait and see attitude. The TMSA disbelievers think that since they are not forced to do TMSA, they won't necessarily do anything. They want to see how the dust settles before making any move. They have learnt to play the shipping system, just doing the 30 minimum to pass the rules, and know that any system which shines a spotlight on tanker companies which do a lot more than that will not do them any favours. The TMSA disbelievers think this is just a way for oil companies to pass liability onto tanker operators, so, after an accident, they can say, 'we chartered you because you said because a higher scoring vessel is more likely to get a charter if the customer has a choice. Slesinger said that he did not believe tanker companies should set themselves a target to reach a certain level, but instead should use it as a framework to gradually improve. "People say - we want a 3 - fundamentally this is wrong," he said. He stressed the importance of not losing the core data which you use to develop indices about how well things are going, in case you need to change the calculation method. Tanker companies work out where they stand on something like 12 key performance indicators, using several thousands of pieces of base information, which has to be processed. Many shipping companies have maintenance systems which are very poor and not able to do the things TMSA is asking for, Slesinger said, particularly on the reporting functions, where shipping companies are asked what the percentage of overdue ship maintenance tasks are on their fleet. "Planned maintenance systems, many set up in 1994-1995, were a missed opportunity, just to tick a box and say 'I've got it'", he said. "People purchased the system and realised the implementation cost. It costs $5,000 for a system; it would cost $5,000 to implement data." sort of best practice. "People want more transparency," he said. "There's no such thing as kicking the dust under the carpet anymore." However ITM believes the document could be clearer in certain aspects. "There are times when we don't understand a few things," he said. ITM continually assesses how well each vessel complies with the different elements, and has already done three or four TMSA reviews. "Every time we change a few of no to yes, and maybe a few yes to no. We jump from yes to no anytime if we find it not fully implemented," he said. "If we try to reach a stage very fast we might drop a lot of things between the tables, which we don't want do to," he said. There are 12 items out of all TMSA elements 1-4 which the company does not fully comply with, he says, of which three are at level 3, so currently the company considers itself at level 2, he said. "The biggest problem we feel is implementation," he said. "We feel that people at sea and ashore should also be equipped with management skills, not just technical or operational skills". The company is involving many of its ship staff when amending procedures. "We get people soon to be promoted to master / chief engineer offshore for three months, bring them into the office, and get them involved. We have ship staff coming in to assist us in projects," he said. “We teach them what a superintendent does, what operation people do. When they get back on board they perform a lot better. "If we place a person in a bigger position than his actual responsibility, he will appreciate this responsibility more," he said. ITM’s answer Kauchhur, marine manager / marine safety quality and security, ITM, said that his company sees TMSA as a good Anglo Eastern’s take Anglo Eastern (AESM) is fully supportive of TMSA and we are committed to the success of the implementation," said The panel discuss the complexities within TMSA. you could do x, y and z'. The TMSA disbelievers are cynical about industry initiatives to date, such as ISM, ISPS and ISO, seeing them as a bunch of forms to be filled in, or hoops to jump through, rather than having any positive benefit to anyone and they think TMSA is just another one. The TMSA disbelievers cite the tanker industry's excellent improvement in its accident record over the past few years as evidence that whatever is happening in the tanker industry to reduce risk is working, and no further initiatives are necessary. Biggest change areas Slesinger said he thought the biggest areas of TMSA were "culture and change management, not bare face compliance and under duress." "With continuous improvement things will be continuously changing," he said. "You need an ability to accept change, not say that's how I did it when I was at sea." People are also looking at TMSA in the wrong way if they see it as a marketing tool, he said, although there are commercial pressures involved TANKEROperator September 2006 p26-31.qxd 06/09/2006 06:52 Page 6 SHIPMANAGEMENT Janardhanan. AESM has 700 shore staff and operates over 190 vessels, including 33 gas, chemical and oil tankers out of Singapore. It has had two TMSA reviews from oil majors so far. "We did fairly well," he says. "There was no benchmarking and they did not tell us where we are, they just said, 'you're compliant'." "TMSA is a tool for operators to measure and report their own management systems," he said. "They can do critical self evaluation." Janardhanan cited a few elements of TMSA, which may need some extra looking into. He said; "Element 3 - need a competent crew capable of working as an effective team. Element 10 efforts to improve safety and protection of the environment. Element 7 - management of change - a coherent system to manage temporary and permanent change you need to define level of activity required for approval of change, you need a risk assessment to evaluate impact off any change. A change management process is in place throughout the office and fleet to reduce operational risk. When you have a new type coming in to management- you have to do a change management," he said. People say when you change the master there could be a requirement of a management of change," he said. "You need a risk assessment to evaluate the impact of any change, for example, new people. It's a grey area we are all looking into." Element 8 - incident investigation - you have to have comprehensive procedures for incident management - the 'no blame' report. You have to get into the root cause of the incident and take measures so it never occurs again." Element 9 - identify each risk or hazard that might lead to a preventable accident. You have to identify this hazard and try to minimise operational risk," he continued. "Environment management. September 2006 You have to have a plan for systematic identification and assessment of all sources of pollution, and actions are being implemented," Janardhanan said. He also said that in his view, some of the guidelines are not defined precisely enough. "For example, element 3B procedures to ensure working hours are in line with STCW guidelines and accurately recorded. “A possible interpretation would be: develop procedures to ensure hours of rest hours are as required by STCW, recorded by ship staff, verified during ship visits by the superintendent and monitored by the office to confirm compliance," he said. “What if - for the first part, the master just sends reports saying 'STCW hours compliant for January 2006'? Don't we still need to believe it?", he asked. AESM has developed a pocket risk assessment guide which is given to all seafarers, with instructions such as 'Is there a risk of being struck by or against an object? '. "We have what is known as the 10 commandments - a pocket size page - given to every seafarer. They can stick their wife's photo on the back. They are questions to ask to see if he has to consult a supervisor before doing a job," he says. "If he answers any of the 10 questions positive (put slide in magazine) he should consult a TO supervisor," he concluded. MARINE EQUIPMENT SMM 2006 Hall 12 EG, Stand 531 Deck Machinery Compressors Steering Gears World-wide Service TANKEROperator Uetersener Maschinenfabrik GmbH & Co. KG [email protected] www.hatlapa.de 31 p32-36.qxd 06/09/2006 06:55 Page 1 SHIPMANAGEMENT NEWS RINA launches training systems certification Italian-based classification society RINA has launched a set of rules for the certification of training management systems (TMS) and has already certified the courses run by V Ships. These rules are designed for shipowners who intend to certify their own system dedicated to the training and re-qualification of shore and shipboard personnel. "This scheme was developed by RINA to meet the growing demand for certification from shipping companies," said Roberto Cazzulo, deputy director of RINA's marine division. "The TMS rules are aimed at proving that the specific personnel training and qualification system chosen by shipowners meets national and international regulations. It can certify for sea staff to STCW convention standards and can be extended to shore personnel. The TMS should take into account the training needs and characteristics of the personnel employed, guaranteeing high qualitative standards and regular updating," Cazzulo explained. V Ships is a major global company in the management sector and has realised the importance of having a system, which makes the criteria for the training and qualification of its personnel transparent and verifiable. This solves an apparent contradiction between the need to have an entirely customised internal training system and the need to demonstrate that the training of the personnel meets high international qualitative standards. Cazzulo said, "Certification of the training and qualification system of the personnel of V Ships, applicable to all the companies in the group, which manage more than 900 ships operating worldwide, from cargo to passenger ships, was an important opportunity for RINA to calibrate its certification system against the specific needs of shipping companies." RINA's TMS imposes neither course content, nor type of course. It simply provides objective assessment criteria and organisational suggestions, envisaging continuous training. This includes both theoretical and practical aspects and a final exam, conducted by the shipowner, to assess the real skills of the personnel and any need for re-qualification and rule updating. This initiative for the certification of TMS systems was designed to fit alongside the RINA Academy, set up to offer training and updating courses on topics with a high technical content. TO InterManager launches code guide Teekay makes offer for Petrojarl A definitive and implementation guide to ISO9001:2000 for the shipmanagement sector was recently published by InterManager, the trade association for the world's in-house and third party shipmanagers. Appealing to owners, managers, crew managers and consultants, the Guidelines on the Implementation of ISO9001:2000 for Ship and Crew Managers has been fully cross-referenced with the elements of the Tanker Management and Self Assessment (TMSA) best practice guide for ship operators. Containing a foreword by IMO secretary general Efthimios Mitropoulos, the guide draws on more than 15 years experience in tuning management systems put together by InterManager's best practices committee. It provides a wealth of hints and tips to securing ISO9001:2000 certification and advises on how At the end of August, Teekay announced that it has acquired, through its wholly owned subsidiary TPO Investments AS, over 40% of the shares of Petrojarl ASA (Petrojarl), which is listed on the Oslo Stock Exchange (OSE: PETRO) (see also page 17). Teekay said that it intends to launch a mandatory bid for the remaining shares of Petrojarl within the next four weeks, under the terms of the Norwegian Securities Trading Act. Petrojarl is a leading operator of North Sea FPSOs. It owns and operates four FPSOs in addition to two shuttle tankers and one storage tanker. In February of this 32 best to avoid the traps and pitfalls. It provides an extensive source of useful advice on full scale initiation of a quality management system in an organisation. With this guide, InterManager said that it aimed to offer a source of assistance both in managing change and in self-assessment to ensure customer expectations are being met. Details: ISBN - 0-9553326-0-5; Publication - July 2006; Price £40.00; InterManager members £30.00; Fleet discount-POA InterManager will be holding its annual meeting on 13th October in Limassol, Cyprus. For further details contact general secretary Stephen Chapman at secretary@ intermanager.com or telephone +44 (0) 1403 733070. Meanwhile, another five new members were welcomed into the fold recently. These were Eastern Mediterranean, Dobson, Seaspan, Eagle Shipmanagement and Gulf TO Energy Maritime. year, Teekay entered into a joint venture with Petrojarl to pursue FPSO projects. "We are excited about the opportunity to expand our existing relationship with Petrojarl," commented Bjorn Moller, Teekay's president and ceo. "Petrojarl's offshore engineering expertise and reputation as a quality operator of FPSOs is a great fit with Teekay's existing offshore operations and will allow us to better serve our customers in the growing offshore oil exploration and production market." Petrojarl said that the board will issue a statement regarding the mandatory offer no later than one week prior to the expiry of the offer period, as stipulated TO under Norwegian law. TANKEROperator magazine The definitive magazine for today’s tanker executive See insert for subscription details TANKEROperator September 2006 p32-36.qxd 06/09/2006 06:55 Page 2 OPERATIONS REGULATIONS Annex II and the new IBC Code I t's been a long time coming, but after more than 10-years planning, the revised Marpol Annex II and the IBC Code (the International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk) will enter into force in January 2007. But what will the new regulations mean to operators of chemical/product tankers? Norwegian classification society Det Norske Veritas (DNV) expects the revision will have far reaching consequences on the market for chemical/parcel tankers because most of the current Annex II products that can be transported in oil product tankers will need to be carried by chemical tankers holding a Chemical Carrier Code Certificate of Fitness (CoF). They will also have to comply with more stringent tank stripping requirements. DNV's head of section, cargo handling, piping systems and gas carriers, Kåre Klokke anticipated With entry into force just months away, Patrik Wheater reports on how the new regulations will impact upon the chemical/parcel tanker segment that "as the chemical tanker domain increases, oil product tankers will lose many of its cargoes". This is because the amendments will introduce a new cargo categorisation system to align them with the Globally Harmonised System for classification and labelling of chemicals. It will almost certainly prove challenging to the sector as a number of existing ships will inevitably need conversion and/or complicated retrofit work. Kåre Klokke warned shipowners to consider the commercial effects of the new code as many more owners/operators will have tankers verified for hazardous chemicals while charterers may want to utilise such tankers for New operational requirements from January 2007 1. Old Certificate of Fitness no longer valid. 2. Old Addenda no longer valid. 3. Old Tri-partite agreements no longer valid. 4. P & A manual outdated for cargoes loaded after 1 Jan 2007. 5. No longer 'oil-like' substances. 6. Revised Ship Type for a large number of products. 7. Revised Pollution Category for all products. September 2006 8. Carriage prohibited unless the product has been (at least provisionally) categorised and assessed. 9. Pre-wash required for a large number of additional products: For all Category X For Category Y if solidifying For Category Y if high viscosity ( > 50mPas) (No pre-wash for Category Z) TANKEROperator more cargoes than owners are comfortable, or indeed competent enough to handle. In its current form the IBC Code includes five categories but from January 2007, following the that products defined as 'floaters' and 'persistent floaters', which include vegetable oils, will be assigned to Category Y, which will mean they will have to be carried in IMO Type II chemical carriers. Shipowners beware: On the 1st January 2007, when the new Code enters into force, all current CoF and NLS certificates will be invalid. From this date, all ships will need to hold on board an For products carriers, read chemical tankers revision of existing Marpol Annex II products by the GESAMP working group on the Evaluation of the Hazards of Harmful Substances, existing products will be re-categorised into a new '3 plus 1' system: X, Y, Z + OS. Essentially, most current Category A products will become Category X; most Category B and C products, Category Y; and most Category D and Appendix III products will fall under Category Z of the new rules. The fourth new category, OS (other substances), contains only eight harmless products (apple juice, clay slurry, coal slurry, dextrose solution, glucose solution, kaoline slurry, molasses, and water). In a document being issued to its customers to provide background information and explanations to the new rules, Intertanko explained endorsed CoF or NLS certificate issued under the revised requirements, in addition to a revised procedures and arrangements manual. So shipowners taking delivery of newbuilds or conversions in December 2006, for instance, will have to certify their ships for the carriage of noxious substances under the old regime and then again from 1st January 2007 with a new P &A manual and a new certificate for the new list of X, Y & Z products. The revised Annex also includes a number of other significant changes. Improvements in efficient tank stripping technology have made it possible to lower permitted discharge levels of certain products and these have been incorporated into Annex II. So for 33 p32-36.qxd 06/09/2006 06:55 Page 3 OPERATIONS REGULATIONS Hamworthy in pole position to benefit from new Annex II With more than a quarter of a century as one of the leading suppliers of cargo pumps to the global tanker fleet, Hamworthy Svanehøj could benefit hugely from the new Annex II and IBC Code rulings, should shipowners see the commercial advantages of converting existing tonnage. The Denmark-based company has seen demand increase for its electrically-driven cargo pumps as an alternative to conventional hydraulically-driven units. Sales director Hans Høyer Jensen told TANKEROperator that he can ships constructed after the date of entry into force, the maximum permitted residue in the tank and its associated piping left after discharge will be set at a maximum of 75 litres for products in Categories X, Y & Z. As previous limits set a maximum of 100, 300 and 900 litres, depending on the product category, it is likely that more vessels will need to be retrofitted with deepwell cargo pumps in order to comply. In addition, for ships with their keel laid before January 2007, underwater discharge arrangements for tank washing water is required for X & Y products. Newbuilds will need to have such arrangements for all product categories meaning that for all Chemical Code CoF ships an underwater discharge outlet becomes mandatory. Under the revised arrangements a pre-wash will be required after all unloading of Category X substances and after unloading of Category Y substances that solidify or have a high-viscosity. DNV believes that the new stripping performance requirements will have a major 34 see a move to electric drive systems and that the pump room could become a thing of the past for small product tankers. Hamworthy Svanehøj, which has already supplied systems for a number of vessels that have undergone conversion in time for the entry into force of the revised regulations, is pushing its CKL and DL deepwell pump products as retrofit solutions to the IMO requirements. The CKL range is based on the company's established DL pump technology and consists of four major components: electric motor, deck arrangement, pipestack and pump head. Designed for operation with frequency converter or other means of variable speed regulation, the CKL pump is claimed to be particularly suited for handling different types of cargoes within a wide range of specific gravity and viscosity. It also has an built-in stripping facility that requires only a supply of compressed air or inert gas/nitrogen. When the cargo tank is empty, the stripping line valve is opened, the main discharge valve closed. Stripping down to half a litre residue is possible with an additional stripping system. Mr Jensen said that the company normally operates on a six to eight month lead time for one-off jobs, from design right through to installation. impact on those chemical tankers currently certified for the carriage of Category D substances such as caustic soda. In effect, the Norwegian society's Class Notation: Tanker for Caustic Soda "will become meaningless". plating at centreline, not less than the vertical extent of damage specified in Ch. 2.5.1.2.3, (B/15 or 6 m whichever is less), and nowhere less than 760 mm from the shell plating. This requirement does not apply to the tanks for diluted slops arising from tank washing. Drydocking required What's more, as the replacing of the current product categories with the new regime has an effect on what products can be actually be carried in the different IMO ship types, it is likely that a number of vessels will require drydocking to reconfigure cargo tanks. If owners haven't done so already, converting a nonchemical tanker to chemical tanker is in most cases a major conversion and any conversion or upgrading will need to be completed, reported and resulting certificates issued before January 2007. For IMO Type 1 chemical tankers, tanks are to be located from the side shell plating, not less than the transverse extent of damage specified in IBC Code Chapter 2.5.1.1.2, (B/5 or 11.5 m whichever is less), and from the moulded line of the bottom shell Type II tanks For Type II ships, tanks will be located from the moulded line of the bottom shell plating at centreline, not less than 6 m and nowhere less than 760 mm from the shell plating. Again, the requirement does not apply to the tanks for diluted slops arising from tank washing. For Type III ships there are no such requirements. A modern double hull oil tanker fitted with deepwell pumps, a conversion to a chemical tanker, though still a major undertaking, would not be as complex as the conversion of an older single hull tanker with pump room to double hull chemical tanker. But here the stripping requirements may be difficult to accomplish without installing separate stripping lines. Other upgrading requirements will include: Increase in the height of high velocity tank vent outlets to 3 m above deck or gangway; cargo pump room ventilation to be increased. Access to and through cargo tanks, ballast tanks and cofferdams. Ballast systems for permanent tanks are to be independent of cargo systems. Ship damage stability: IMO Ship Type III and II ships will be more stringent than for oil, with a wider range of loading conditions. Alcohol resistant foam will be required for deck fire fighting, with increased application rates and capacities. All-welded cargo piping/ sliding-type expansion elements will no longer be acceptable. Stop valves required inside each cargo tank (except for homogenous cargo). Emergency showers and eye washes. Redundant tank venting also for NF and High Flashpoint products. The arrangement to allow relevant vapour phase separation between cargoes. For shipowners like the UK's FT Everard & Sons, who introduced double hulls to its coastal tankers in 1979, the IBC Code "won't impact on us as much as it will those operating in marginal trades, or those operating older tonnage," said managing director William Everard, whose company largely trades in the clean petroleum products market. Neither will it greatly affect Crescent Marine Services, the technical management arm of Clipper Wonsild Tankers. Quality manager Gordon Stuart said how his company is "ahead of the game" and has invested resources into the relevant divisions to deal with the changes in the legislation. The four Bulgarianbuilt and six Turkish-built IMO Ship Type II tankers that will join TANKEROperator September 2006 p32-36.qxd 06/09/2006 06:55 Page 4 OPERATIONS REGULATIONS the Clipper fleet over the next four years will all be built to comply with the new rules. With only chemical carriers in its fleet, Odjfell too doesn't have many concerns with the new rules. Most of its ships have full double hull, while all have double bottom. "But one issue may be the fleet capacity with double skin (full double hull) for the older ships," says Jan D Lorentz, Odfjell's senior vice president, quality management. As such, Odfjell has chosen to convert one ship series to full double hull in order to meet the revision of the Marpol Annex II regulation, which requires enhanced hull protection for a number of bulk liquid cargoes. "Among the products affected we find, for instance, vegetable oils that must be carried in tankers with double hull, corresponding to recent changes in the requirements to carry mineral oil products. Accordingly, a number of tankers will become commercially less suitable" says Odfjell's Helge Olsen, senior vice president, ship management. Because Odfjell's KSEC class, built in Korea between 1986 and 1988, has no protection of its wing tanks, the Norwegian shipowner would be facing a reduction in the range of products allowed to be carried in these ships. However, as the vessels otherwise have a technical standard that should allow trading for many years, Odfjell assessed the feasibility of upgrading to comply with the new rules. Evaluation of the technical feasibility and economics of upgrading the five sister vessels Bow Puma, Bow Panther, Bow Lion, Bow Leopard and Bow Cheetah - began in August 2005. The project involved a multidisciplinary team, including internal and external specialists, as well as required participation by the classification society DNV to review and approve the design. The initial engineering design was approved in February this year, and Chinese shipyard Nantong won the order to carry out the conversion work. The upgrading of each vessel will involve the removal of the existing shell plating in way of the cargo section and replacing it with blocks of prefabricated steelwork to create double skin ballast tanks on each side. The width of the new double sides will exceed requirements to facilitate operations and maintenance, and the increased scantling will enhance the vessels' strength. Each vessel is expected to spend around 50 days at the yard for this combined upgrading and general docking work. Within this tight schedule, the yard will also blast and repaint the vessels' entire hull, including necessary restoration of cargo tank coatings that is affected by the conversion. All in all, it is envisaged the new ruling shouldn't greatly affect the sector. The UK MCA, for instance, believed that if there were concerns, objections would have been noted at IMO. But "shipowners or the International Chamber of Shipping haven't approached us about any problems," said the MCA's David Macrae. However, he did say that indications suggest that a number of Ship Type 1 vessels will convert to Ship Type II or III, but it won't be known whether there is an over- or under-supply of oil tanker tonnage until it happens. TO The application of THESIS Bow-Ties in marine safety management* In an industry which is moving further towards demonstrable and accountable risk management, the THESIS Bow-Tie tool is gaining greater acceptance. The methodology is proven by track record in the offshore, process and security risk industries and the tool continuously adapted to suite the need. THESIS (The Health, Environment, Safety Information System) is a software tool that can effectively demonstrate how a facility's Safety Management System can be implemented. It assists companies/operators in the analysis and management of the hazards and risks to which their business is exposed, and graphically displays and illustrates the relationship between hazards, controls, risk reduction measures and a September 2006 business's HSSE activities. Regulators and stakeholders across the world are progressively expecting more information to be included in the documentation used to demonstrate that an operation/asset has an effective safety management system. This is becoming increasingly evident in the marine industry in the form of equivalent safety cases which aim to confirm that: all credible hazards have been identified; appropriate standards have been set and met; adequate safety features are in place; all significant assumptions have been identified, verified and validated; all instructions, limits and conditions required to maintain operations within specified margins for safety have been met. In addressing these aims, a number of documents would be traditionally generated. These TANKEROperator documents inherently become increasingly complicated with the onus on fulfilling the requirements and the explanation of all the interactions between these documents becomes more difficult to explain to the workforce, regulator and stakeholders. This can, however, be made much easier with the help of an interactive graphical representation. This graphical REQUIREMENTS Safety Policy Strategic Objectives & Targets ELEMENTS Policy & Strategic Objectives Organisation, Responsibilities, Resources, Standards & Docs. Hazard & Effects Management Process Planning & Procedures Implementation & Monitoring Audit Review Organisational Structure & Responsibilities Management Representatives Resources Competence Contractors Communication Identification of Hazards & Effects Risk Evaluation Recording of Hazards & Effects Objectives of Performance Criteria Asset Integrity Procedures & Work Instructions Management of Change Contingency & Emergency Planning Monitoring Records Non-Compliance & Corrective Action Incident Reporting & Follow-Up Internal Audit Independent Audits Management Review Figure 1: Typical elements and requirements of a facility's risk management system 35 p32-36.qxd 06/09/2006 06:55 Page 5 OPERATIONS Escalation factors Control of escalation factor Control of escalation factor Escalation factors Failure of p/v arrangement Threat Regular maintenance. Pre-operational inspections, certification and company form E116, E490. Hazard Threat that could release hazard P/V breaker. Common IGS line Escalation Factor Recovery preparedness measures Top event Locking arrangements Failure of repeater of pressure indicator Consequences Barriers to prevent threat Pressure indicator: Common IGS line, CCR. Monitoring of repeater in bridge Failure of locking arrangements H-01.S01 Hydrocarbons Escalation Factor Discharge at sea. Pollution Consequence Maintenance of locking arrangements Hull flooding. Potential for loss of stability Consequences Loc.: TE: Failure or freezing of p/v breaker Escalation Factor Sea Loss of containment cargo tanks (Sea) Consequence Fire/explosion Monthly inspection program (E116, E480). Precautions during cold weather. Consequence Consequences Personnel injury/fatality Consequence Corrosion Threat Classification society surveys will monitor wastage and remedial actions taken if limits exceeded. Strength analysis (CAP) as per current new building criteria. Coating protection on ballast and cargo tanks, cathodic protection to ballast tanks Daily inspection and maintenance program (E-116) High and high-high level alarms Pressure/vacuum relief valve p/v breaker: Common IGS line Thermal expansion of cargo Threat Procedures to allow for cargo expansion: tanks to be filled 98% of their capacity. Activities & tasks = HSE-critical task Figure 3: A partially expanded THESIS Tow Tie for a Loss of Cargo Containment Figure 2: A typical bow-tie display representation has become to be known as the THESIS bow-tie methodology. By building in a risk matrix, effectiveness ranking and performance data for the control measures then the bow tie methodology also becomes a semiquantitative risk assessment tool. THESIS Bow-Tie Methodology THESIS can be used to demonstrate how effective a marine facility's safety management system is performing and also to complete gap analyses. A typical management system is a quality management system for managing risks within a company, to assure the protection of the company's people, assets, reputation and for protection of the environment the company operates within. A typical safety management system would comprise of the elements shown in Figure 1, previous page. The bow tie can be used to demonstrate how the pertinent safety management system element requirements are met with respect to the control and management of hazards and risks. Bow-ties depict the relationship between hazards, threats, barriers, escalation factors, controls, consequences, recovery preparedness measures and critical tasks (Figure 2, above). This has been an area of fault or weakness in many organisations using this method can help to display all the interactions and 36 links that are often found to be loosely related over a number of various documents. Essentially a bow-tie is a combination of the traditionally used fault and event trees, whereby the fault tree constitutes the left hand side of a bow-tie and the event tree the right hand side. What a bow-tie presents in addition however, are the 'barriers' in place that prevent 'threats' from releasing a hazard and 'recovery preparedness measures' that reduce the severity of the hazard consequences. identified from the organisation at the time of undertaking the work and should remain, at the least, at a supervisory level. The procedures and standards necessary to support that task are captured at the same time. The advantage of adopting the THESIS approach is that it is an extremely powerful representation of the hazard analysis and risk management processes that is readily understood at all levels in an organisation; bow-ties can be used in the boardroom as well as in a tool box talk. Critical Tasks Once the threats, consequences, escalation factors and all controls have been identified, supporting tasks to ensure that the integrity of each barrier, control and recovery preparedness measure is maintained need to be assigned. These are termed Critical Tasks, and are required to be performed, undertaken or executed by responsible and competent persons. Such tasks could include: Design Tasks; Inspection and Maintenance Tasks; Operational Tasks; and Administrative Tasks. Case Example Figure 3 illustrates a representation of one of the many hazards that faces a cargo containing vessel at sea. The left hand side of the bowtie shows a number of possible threats that could potentially release hazardous cargo and thus produce the top event. Some engineered and procedural barriers have been put in place here to illustrate typical protection measures that would prevent the threat from releasing the hazard. Escalation factors have been expanded in Figure 3 to show the controls put in place to manage the escalation factor. The right hand side illustrates the consequential outcomes of the top event. Recovery measures are not illustrated further. It is possible within the 'case file' to also:capture the integrity of Assigning Personnel to Critical Tasks Once the critical tasks are defined, personnel are assigned the responsibility for the execution of the tasks. Such persons are barriers, capture system shortfalls and set remedial action plans define the tasks and personnel for managing barriers and indeed assign them set task frequencies assign documentation and standards populate a risk matrix and illustrate the risk profile produce reports for use in supporting documentation eg. safety manual, audit, training, appraisal etc. THESIS Summary THESIS is an application, originally developed by Shell and now jointly with ABS Consulting. It has been developed based on the Bow-Tie concept to visually display how hazards are controlled and how the risk associated with them is reduced to As Low As Reasonably Practical (ALARP). It documents the provenance of information and the reference sources from which the information is obtained, i.e. it is an ideal audit tool. It is an extremely flexible tool and simple tool whose application extends from safety, health and environment risk into any aspect of business exposed to hazards and risks. It is frequently used to build management systems from concept as well as capture and refine those that already exist. * By James Phipps, principal risk consultant, ABS Consulting TO Ltd (Warrington, UK) TANKEROperator September 2006 p37-46.qxd 06/09/2006 11:44 Page 1 TECHNOLOGY GAS DETECTION A Gas measurement spelt out pumproom contains the largest concentration of cargo pipelines of any space within the ship and leakage of a volatile product from any part of this system could lead to the rapid generation of a flammable or toxic atmosphere. It may also contain a number of potential ignition sources unless formal, structured maintenance, inspection and monitoring procedures are strictly followed, said the latest edition of ISGOTT. The guide said that there were two categories of hydrocarbon vapour measurements on tankers The new ISGOTT guide also gives chapter and verse on gas measurement on board ship. The following are extracts from the text. and terminals. 1) The measurement of hydrocarbon gas in air at concentrations below the lower flammable limit (LFL). This is to detect the presence of flammable and potentially explosive vapours and to detect hydrocarbon vapour concentrations that might be harmful for shipboard personnel. These readings are expressed as a percentage of the LFL and are usually recorded as % LFL. The instruments used to measure this percentage are catalytic filament combustible gas (CFGC) indicators, which are normally called flammable gas monitors, or explosimeters. ISGOTT warned that a CFGC indicator should not be used for GAS MEASUREMENT INSTRUMENTS LTD Dont sail with yesterdays technology . . . . . . join the new wave in Gas Detection measuring hydrocarbon gas in inert atmospheres. 2) The hydrocarbon gas measured as a percentage by volume of the total atmosphere being measured. On board a tanker, this is usually carried out to measure the percentage of hydrocarbon vapour in an oxygen deficient (inerted) atmosphere. Instruments used to measure these vapours in an inert gas atmosphere are specially developed for this purpose. The readings obtained are expressed as the percentage of hydrocarbon vapour by volume and re-recorded as % Vol. PORTABLE INSTRUMENTS for - Inerting - Tank Washing - Gas Freeing - FIXED SYSTEMS for - Pump Room - Void Space - Ballast Tank Telephone: +44 (0)141-812 3211 Fax: +44 (0)141-812 7820 e-mail: [email protected] www.gmiuk.com Moder n Gas Detector s for Moder n Fleets September 2006 z TANKEROperator 37 p37-46.qxd 06/09/2006 11:44 Page 2 TECHNOLOGY GAS DETECTION Instrument types The instruments used to measure hydrocarbon vapours in inert gas are the non-catalytic heated filament gas indicators, usually referred to as tankscopes and refractive index meters. Modern developments in gas detection technology have resulted in the introduction of electronic instruments using infra-red sensors that can perform the same functions as a tankscope. Explosimeters, or modern flammable gas monitors, have a poison resistant flammable pellistor as the sensing element. Pellistors rely on the presence of oxygen (minimum 11% by volume) to operate efficiently and for this reason flammable gas monitors should not be used for measuring hydrocarbon gas in inert atmospheres, warned ISGOTT. As for tankscopes, the instrument's sensing element is usually a non-catalytic hot filament. The composition of the surrounding gas determines the rate of heat loss from the filament and hence its temperature and resistance. The sensor filament forms one arm of a Wheatstone Bridge. The initial zeroing operation balances the bridge and establishes the correct voltage across the filament, thus ensuring the correct operating temperature. During zeroing, the sensor filament is purged with air, or inert gas that is free from hydrocarbons. As in the explosimeter, there is a second identical filament in 38 “ The composition of the surrounding gas determines the rate of heat loss from the filament and hence its temperature and resistance. another arm of the bridge, which is kept permanently in contact with air and which acts as a compensator filament. Hydrocarbon presence changes the resistance of the sensor filament and this is shown by a deflection on the bridge meter. The filament's heat loss rate is an on-linear function of hydrocarbon concentration and the meter scale reflects this non-linearity. The meter gives a direct reading of % volume hydrocarbons. Manufacturer’s advice When using the instrument, manufacturer's detailed instructions should be followed, ISGOTT advised. After the instrument has been initially set to zero with fresh air in contact with the sensor filament, a sample is drawn into the meter by means of a rubber aspirator bulb. The bulb should be operated until the meter pointer comes to rest on the scale, usually within 15-20 squeezes, then aspirating should be stopped and the final reading taken. It is important that the reading should be taken with no flow through the instrument and with the gas at normal atmospheric pressure. ” The non-catalytic filament is not affected by gas concentrations in excess of its working scale. The instrument reading goes off the scale and remains in this position as long as the filament is exposed to the rich gas mixture, ISGOTT warned. Meanwhile, the refractive index meter, or inferometer, is an optical device that utilises the difference between the refractive indices of the gas sample and air. In this type of instrument, a beam of light is divided into two and these are then recombined at the eyepiece. The recombined beams exhibit an interference pattern that appears to the observer as a number of dark lines at the eyepiece. One light path is via chambers filled with air. The other path is via chambers through which the sample gas is pumped. Initially, the latter chambers are filled with air and the instrument is adjusted so that one of the dark lines coincides with the zero line on the instrument scale. If a gas mixture is then pumped into the sample chambers, the dark lines are displaced across the scale by an amount proportional to the change of refractive index. The displacement is measured by noting the new position on the scale of the line that was used initially to zero the instrument. The scale may be calibrated in concentration units, or it may be an arbitrary scale whose readings are converted to the required units by a table or a graph. The instrument's response is linear and a one-point test with a standard mixture at a known concentration is sufficient for checking purposes. The instrument is normally calibrated for a particular hydrocarbon gas mixture. As long as the use of the instrument is restricted to the calibration gas mixture, it provides accurate measurements of gas concentrations. Measurement of the hydrocarbon gas concentration in an inerted atmosphere is affected by the carbon dioxide present when flue gas is used for inerting. In this case, the use of soda lime as an absorbent for carbon dioxide is recommended, provided the reading is corrected appropriately. The refractive index meter is not affected by gas concentration in excess of its scale range. The instrument reading goes off the scale and remains in this position as long as the gas chambers are filled with the gas mixture. Finally, an infra-red sensor is a transducer for the measurement of the concentration of hydrocarbons in the atmosphere, by the absorption of infra-red TO radiation. TANKEROperator z September 2006 p37-46.qxd 06/09/2006 11:44 Page 3 TECHNOLOGY GAS DETECTION Routine verification of gas monitors will save lives T he indictment charged that the tank cleaning operation was supposed to involve the flushing of the cargo tanks with a small amount of sea water, the pumping out of the resulting sea water and cargo residue mixture, the ventilation of the tanks and, once the atmosphere in the tanks was tested and found to be within safe parameters for manned entry, the entry of crew members into the tanks to mop out the remaining cargo residue. In December 2004, Captain Gilbert Thurston was found not guilty of criminal negligence. A full report of the Thurston case can be read in Sidelights, the journal of The Council of American Master Mariners, pages 5 and 6, volume 34, number 1, Spring 2005. The SOLAS chapter II-2 regulations that apply to all vessels built after 1st July 2002, prescribe that action must be taken to detect and measure hydrocarbon gas concentrations in the pump room on tankers. It also refers to the need for 'suitable portable instruments for measuring oxygen and flammable vapour concentrations', without defining the exact requirement. Neither SOLAS nor the IMO, however, makes reference to a requirement for the detectors to be validated or calibrated at specific intervals; but lays responsibility for this on the flag states. The International Association of Classification Societies (IACS) does not apply a unified policy September 2006 z In February 2002, the US Department of Justice reported that the chief officer of the SS Liberty had been indicted by a grand jury for causing the death of a subordinate crew member, writes Brian Warshaw. relating to gas monitoring. DNV is in the process of updating its requirements on gas detectors; but currently demands a minimum yearly calibration, with additional calibrations based on the manufacturer's recommendations, in order to maintain the accuracy required. Lloyds Register (LR) includes the IMO's IBC and IGC Code requirements within its classification rules, which specify that testing and calibration should be carried out at regular intervals. However, LR confirmed that these operational matters were ultimately the responsibility of the flag administration. ABS has a series of rules relating to portable gas monitors, and its Onboard Routine Maintenance Check Sheet has questions asking if oxygen and flammable gas detectors have been calibrated. The International Safety Equipment Association (ISEA), which was formed in 1933, highlighted that inaccurate gas monitoring equipment due to improper or irregular calibration can lead to serious accidents. ISEA said that as the instruments are designed to protect crew members from unseen hazards that may exist in enclosed or confined areas of the tanker, it is TANKEROperator vital to worker safety that these instruments are maintained and calibrated properly. Two forms of testing are recommended by the ISEA. The first, known as the 'bump' test, is performed daily, or prior to each usage, and in this the instrument is subject to a known concentration of gas. Exposing the instrument to the test gas will show whether the detector responds accurately, and if the alarms operate correctly. The second test is a full calibration to check the range of the detector. This is undertaken at specific intervals, typically sixmonthly or annually, in accordance with the specifying authorities, and also after the instrument has been repaired. Many gas monitor manufacturers will also supply test gases. Gas Measurement Instruments (GMI), sells calibration gas through its network of distributors and repair centres, that are located on the major shipping routes. The cylinders are disposable pressurised cans, approximately the size of a two-litre soft drinks bottle, and each contains 103 litres of gas. Cans are supplied in a single concentration, typically 50%, so for hydrogen sulphide, which is measured over a range 0 to 100 ppm, the test gas is 50 ppm. For hydrocarbons being detected in the range 0-100% of the lower explosive limit (LEL), GMI offers methane, butane, pentane and other gas at 50% concentration. The 'bump' test requires the instrument reading to be compared with the actual quantity of gas present as indicated on the test gas cylinder. The ISEA guidance document states that, 'if the instrument's response is within an acceptable tolerance range of the actual concentration, then its calibration is verified. Instruments should be 'zeroed' before the 'bump' test in order to give a more accurate picture of the results. When performing a 'bump' test, the test gas concentration should be high enough to trigger the instrument.' It recommends that the manufacturer of the detection instrument be consulted as to an acceptable tolerance range. If the 'bump' test indicates that the instrument is not within the acceptable range, a full calibration must be performed. For this, the instrument's reading is adjusted to coincide with a known concentration of calibration gas. The calibration gas should be certified by, and traceable to, an accredited international standards authority, and only used if it is within the expiry date shown on the certificate. Both the full calibration and 'bump' test should be conducted, according to the Safety and 39 p37-46.qxd 06/09/2006 11:45 Page 4 TECHNOLOGY GAS DETECTION Health Information Bulletin Verification of Calibration for Direct-Reading Portable Gas Monitors, in a clean fresh air environment. The guide is published by the US Department of Labor and can be downloaded from www.osha.gov/dts/shib/ shib050404.html; it is based on ISEA recommendations. GMI was the first company to provide an easy, secure method to calibrate gas detection equipment on board vessels. Its Calibration Station System was introduced in 1998, enabling the designated crew member to insert the instruments into the station and through a series of automatic instrument checks, zero the unit, test for leaks, and re-calibrate it over the range. The calibration of the gas monitor is completed within a couple of minutes. A log of the results is produced and retained on the computer, which allows a new calibration certificate to be printed or viewed at the time of inspection. The calibration station is provided with a fully interactive CD-ROM that demonstrates the operation and through various modules, achieve more Save time and money on cargo handling The BM 70M Precision cargo level radar offers unique features making life easier for tanker operators Closed cleaning An integrated cleaning facility allows to clean the antenna without opening tank. Cleaning may be performed fully loaded. Stand alone radar The unit makes all level calculations locally, and transmits a corrected level to the cargo system for monitoring. Hence, a computer problem will not stop cargo operations, as cargo level is always displayed on the integrated display on the unit. Visit our radar stand No. 326 for more information. Visit us in Hall 2 / Booth 104 in the Norwegian Pavillion 40 www.krohne-skarpenord.com tests the crew on their competency and understanding of the system. Until a few years ago, GMI exclusively promoted this system, which, when operated correctly, is a simple apparatus for satisfying on board inspection procedures at ports throughout the world. Turnover in crew members, however, and the need to update software, meant that some shipowners and operators encountered difficulty in retaining the competency of the testers, and consequently checks could be compromised. As a result, GMI developed a more basic software program that guides the crew member through the procedure, while maintaining the efficacy of the calibration tests, record keeping and production of the calibration certificate. Both automated and manual systems are currently available from GMI, and each meets the requirements of coastguard and other regulatory authorities in providing verification for operation and routine recertification. Ultimately, it is the tanker's captain or the responsible officer who accepts the blame for an undetected faulty gas monitor. With the surfeit of good advice available from the manufacturer and the ISEA, among others, there is no need for them to face the problems that beset Captain Thurston or the unfortunate pumpman who died. In truth, however, the case against Captain Thurston was not that of allowing the use of an inaccurate gas detector; but that of allowing the crew member to enter the enclosed space without causing the tank to be tested for gas before doing so. Nevertheless, it demonstrates the inherent risk from gas or oxygen depletion in many areas of a tanker, and without the routine of regularly verifying the accuracy of gas detection equipment before each day's use, the lives of the crew and the vessel itself, will be put in TO jeopardy in a needless way. TANKEROperator z September 2006 p37-46.qxd 06/09/2006 11:45 Page 5 TECHNOLOGY TANK CLEANING More reliable machine enters the market T he latest addition to Alfa Laval's line of Gunclean Toftejorg products launched earlier this year is the Gunclean Toftejorg i65 S, a single-nozzle tank cleaning machine. This new machine incorporates low-wear materials and advances in mechanical design, such as a hysterisis clutch that the company claims resolves the operating issues associated with magnetic clutches. Explaining the difference, Alfa Laval said that in most modern tank cleaning machines, a magnetic clutch is used to engage the gear transmission. This involves two strong magnets, one on the turbine side and another One of the world's leading tank cleaning experts is Alfa Laval. This Swedish-based company is home to the original Gunclean and Toftejorg tank cleaning technologies, which together represent over 50 years of tank cleaning experience. opposing it on the gear side. These two magnets have to be synchronised before the machine can operate. However, they can slip and remain disconnected in the event of water hammering, or sudden surges in pressure. If this happens, the machine does not rotate and the cleaning cycle stops. The hysterisis clutch in the new machine is claimed to be a far more reliable solution. Comprising of a hysterisis plate on one side and six super magnets on the other, it creates an even magnetic field that does not require synchronisation. This more stable construction lets the hysterisis clutch act as a soft starter. Even when water hammering or pressure surges Enraf occur - as is common at the start of a cleaning cycle - the clutch engages the gear transmission. As a result, the Gunclean Toftejorg i65 S operates reliably and avoids any false starts, Alfa Laval said. In addition to increasing operational efficiency, the hysterisis clutch allows design changes to be made to protect the tank cleaning machines against leakage and cross-contamination. This is made possible as the speed adjustment mechanism is built into the clutch itself. When a standard magnetic clutch is used, the speed of the machine must be adjusted on the turbine side. Access is created by a speed adjustment shaft, which adds a deck penetration. This Tanksystem 0ORTABLEæCLOSEDGASæTIGHT %LECTRONICæGAUGE æ.OæCALIBRATIONæREQUIRED æ4EMPERATUREæACCURACY ¢æª# æ#ONTINUOUSæTEMPERATUREæREADING æ4APEæACCURACY ¢ææMMæææM æ7EIGHTæWITHææMæTAPEææKG ææYEARSæGUARANTEE (%2-ETICæ 54)METERæ'TEX )NTRINSICALLYæSAFEæEQUIPMENT Enraf &ORæSAFETYæANDæPRECISION &ORæMOREæINFORMATION September 2006 z TANKEROperator WWWTANKSYSTEMCOM 41 p37-46.qxd 06/09/2006 11:46 Page 6 TECHNOLOGY TANK CLEANING GT i65 S is a single nozzle machine. second penetration is a potential source of seal failure, which increases the risk of gas leakage and the contamination of sensitive cargo. By using a hysterisis clutch, the need for an additional shaft is eliminated. Rather than being adjusted on the turbine side, the speed of the new machine is easily changed topside by adjusting the relationship between the magnets and the hysterisis plate. Long-lasting components Although Alfa Laval said that the hysterisis clutch is the star feature of the Gunclean Toftejorg i65 S, other improvements have also been 42 made. Using advanced design and new materials, Alfa Laval has optimised individual components to increase the machine's working lifetime. One example is the turbine, which is turned by the flow of cleaning media to drive the movement of the cleaning head. Alfa Laval has performed extensive studies to fine-tune the turbine design, which has resulted in better power transmission and a reduction of long-term wear. In addition, certain components have been made from high-tech ceramics, rather than teflon or steel. By using ceramic balls and plates instead of traditional ball bearings, Alfa Laval has cut back on gear system friction and the resulting consumption of spare parts. Even when an advanced tank cleaning machine like the Gunclean Toftejorg i65 S is used, the final cleaning result will only be as good as the weakest link in the tank cleaning system. For this reason, Alfa Laval recommended designing the installation properly from the beginning, taking into account everything from the boiler to the tank walls. G-Pass, Alfa Laval's unique software used in preparing shadow diagrams, is central to this design optimisation. G-Pass allows Alfa Laval to evaluate the proposed cleaning solution, creating a three-dimensional image of the tank and its corrugations, stringer platforms and other internal obstructions. This image can be viewed from any angle, revealing any 'shadows' that are not directly hit by the cleaning jets. Because G-Pass accounts for the tank's design and the position, quantity, jet length and jet hit angle of the cleaning machines, it also provides a thorough assessment of the tank cleaning performance, Alfa Laval said. Somewhat surprisingly, only DNV and ClassNK determine the effective jet length when cleaning, otherwise the manufacturers dictate this important feature. Alfa Laval pointed out that a tanker of the size of a VLCC contains many internal structures. If the tank cleaning operations fail on such a ship then it will be unable to sail as it will not be in a fit condition to load its next cargo and will no doubt fail the cargo tank inspection. The new machines were tested by three tanker owners, one of which had already agreed to replace the existing tank cleaning machines on 16,500 dwt chemical tankers. The use of cold and hot water as a cleaning agent purely depends on the cargo, Alfa Laval said. In the case of fatty acids and palm oil, hot water needs to be used. Some owners have even developed their own chemicals for tank cleaning. Expounding the benefits of the Alfa Laval system, the company said that some tanker owners and operators still use scaffolding inside the tank, a process which can take days to complete. Alfa Laval saw its prime sales pitch as aimed at the newbuilding market, but said that more and more retrofits were being handled. Last year, Alfa Laval started to manufacture tank cleaning machines at its Jiang Yin factory in China. In just over a year, the company has produced more than 1,000 machines at its Chinese facility. Its Chinese factory is being expanded by an additional 2,250 sq m of floor space to cater for the assembly of the S-separator. The Chinese facility also produces 85,000 small and large heat exchangers annually in addition to the tank cleaning machines. The company said that this forms part of its strategy to streamline its global supply chain. For example, all the S-separators manufactured in China will be for the Asian market, while other separators are built in Monza, Italy for delivery to European shipyards and yards in other parts of the world. Complementing Alfa Laval's product line is the new Pseparator launched this year and designed for cleaning lube oils and marine diesel oils. This piece of equipment is manufactured in India and Poland. TO A hysterisis clutch - a more reliable system TANKEROperator z September 2006 p37-46.qxd 06/09/2006 11:46 Page 7 A more technologically advanced tug was needed in North Puget Sound. Check out Crowley’s Response. “Our Markey tow winch was built just for the Response. In full power mode, it can still winch in a line against a 250-ton resistance. There’s nothing else out there like it.” ~ Ron Rubright • Chief Engineer of the Response To meet the challenges of oil tanker escort and assist work in the rough waters of North Puget Sound, Crowley created a tug like no other. We took the basic technology of our Harbor Class tugs and modified it to create a vessel specially designed for the task at hand: the Response. Its two powerful CAT engines, together with enormous 5-blade Voith Schneider propulsion units, generate up to 155 tons of indirect force at 12 knots. Its huge skeg is forward and the cycloidal units are in back, focusing its immense power where it’s needed most. And its 10" amsteel blue tow line is rated at one million pounds, which is strong enough to keep even the biggest tankers in place. The bottom line? The Response performs the fastest, most efficient assists and escorts on North Puget Sound. There’s one more necessary element: an exceptional crew. Take Ron Rubright. The Response’s chief engineer joined Crowley 26 years ago, so it’s safe to say he knows his way around a Crowley tug. Rubright also participates in extensive training courses on CAT engine technology. Plus, he and the rest of the crew take part in rigorous on-board and shoreside training sessions and safety drills. Need more information about our services in the harbors of Los Angeles/Long Beach, San Diego, Oakland, Tacoma, Seattle, North Puget Sound and Prince William Sound/Valdez, Alaska? Call Crowley Ship Assist & Escort at 800-248-8632. Or visit www.crowley.com. Liner Shipping • Worldwide Logistics • Petroleum & Chemical Transportation • Alaska Fuel Sales & Distribution • Energy Support • Project Management • Ship Assist & Escort • Ship Management • Ocean Towing & Transportation • Salvage & Emergency Response © Crowley Maritime Corporation, 2006 CROWLEY is a registered trademark of Crowley Maritime Corporation www.crowley.com p37-46.qxd 06/09/2006 11:47 Page 8 TECHNOLOGY TANK CLEANING Vecom returns to the table A t the end of last year, an opportunity presented itself, which enabled Vecom to re-enter the shipping business. One of the main areas that the company has re-engaged with is cleaning agents in the form of chemicals. This opportunity came in the form of a co-operation agreement with Greek ship supply concern Unimarine. Unimarine had expanded to about as far as it could without incurring huge debts and was in need of a cash injection. Vecom decided to enter into what it called a strategic alliance with the Greek concern, thus Vecom Marine re-emerged. A key element in this project was the fact that a clause in the Drew sale contract, which forbade Vecom from re-entering the shipping business for 10 years, had expired. Basically, the marriage came about as Vecom had the financial clout while Unimarine had the contacts in the marine business. Vecom also had a large agency and representative network, which Unimarine could plug into. During the third quarter of this year, the marine division's name will be officially changed to Vecom Marine Alliance and several of the products will be rebranded. The range of products currently being marketed under the new regime is very similar to those on offer before the sale of the business. That is the delivery of chemicals and equipment for cleaning and maintenance, gas and cooling, welding and cutting and fire fighting, plus the supply of gas bottles. These can be offered as a complete package, 44 Since selling the marine division to Drew Ashland about 11 years ago, Vecom has concentrated its efforts on the land-based industrial sector. However, the situation has come full circle. or piecemeal. Since the sell-off 11 years ago, regulations had changed, there were new products and more would be developed down the line, Vecom said. Vecom’s Rein Breeman Vecom Marine is now supplying the following products and services: Cleaning and maintenance chemicals. Gases and refrigerants. Electrodes and welding equipment. Fire fighting and safety equipment. Unimarine manufactures the chemicals and equipment on site in Greece, while Vecom's headquarters at Maassluis, near Rotterdam, manufactures equipment and chemicals of 25 litres and over, leaving smaller packages to its Greek partner. Vecom managing director Rein Breeman described the operation as a 'mid-size'. He told TankerOperator that there was nobody positioned in the middle, behind Unitor and Nalfleet and there was a market for another player. He explained that there were several other smaller players in local chemicals supply markets, many of which were spin-offs from Vecom. He thought they were not big enough to offer an alternative service to the alliance and that they fell down on quality issues, despite offering a very cheap price. He also said he was looking to further strengthen the agency network and would welcome other partners who wished to join the strategic alliance. Vecom also has a manufacturing plant in the US and is looking to set up in China, either by buying a local company or starting from scratch. Breeman explained that the main markets served from Maassluis are Holland, Germany, the UK, Belgium (Antwerp) and Greece. Breeman also promised not to make the same mistakes as in the past and said that the alliance wouldn't grow too fast as; "…you cannot pre-finance chemicals for a year." He said the staff was increasing again, but everything would be done "step by step". However, the long term goal was to build up a network of worldwide partners. An example of staff increases was marketing manager Bart Jongenotter, who had only been with the company for six weeks at the time of TANKEROperator's visit to Maassluis earlier this year. To keep overheads to a minimum, in the future the sales and distribution functions would be co-ordinated for the members of the alliance. Breeman also said that the added value function, such as after sales, was another very important aspect for the future of the alliance as the technical knowhow on board was reducing with the result that an owner had to rely on more and more networks. Unimarine’s Jason Georgiou Breeman has taken on the role of director of both companies Vecom Marine and the Vecom Group. Unimarine founder Jason Georgiou continues as co-director TO of Vecom Marine. TANKEROperator z September 2006 p37-46.qxd 06/09/2006 11:47 Page 9 TECHNOLOGY TANK CLEANING Tank cleaning do’s and don’ts When considering tank cleaning, a tanker owner, operator or manager should take advice given in the recently launched fifth edition of ISGOTT (see page 4), the tanker industry's bible on ship and terminal operations. The following are extracts from the ISGOTT recommendations on tank cleaning. All tank washing operations should be carefully planned and documented. Potential hazards should be systematically identified, risk assessed and the appropriate preventive measures put in place to reduce any risk to 'as low as reasonably practicable (ALARP)'. As has been seen even recently, the main risk is fire or explosion arising from simultaneous presence of a flammable atmosphere and a source of ignition. Therefore, the focus should be to eliminate one of more of the hazards, namely the sides of the fire triangle of air/oxygen, ignition source and fuel (flammable vapours), ISGOTT said. Providing the lowest risk is tank washing in an inert atmosphere. The tank must meet the SOLAS requirements for inerting of the cargo tanks and reducing the atmosphere's oxygen content in each tank to a level whereby combustion cannot be supported. Failure to prove by direct measurement that the tank is inerted means, by default, that the tank must be considered to be in a non-inert condition, the guide said. The guide recommends procedures to adopt to control the fuel in the tank atmosphere both before and during washing. Before washing The tank bottom should be flushed with water, so that all the parts are covered and then stripped. It should be undertaken using the main cargo pumps and lines. Alternatively, permanent pipework extending the full depth of tank should be used. The flush should not be undertaken using the tank washing machines. The piping system, including cargo pumps, crossovers and discharge lines, should be flushed with water. This should be drained to the tank designed or designated to receive slops. The tank should be ventilated to reduce the gas concentration of the atmosphere to 10% or less of the lower flammable limit (LFL). Gas tests must be made a various levels and due consideration should be given to the possible existence of pockets of flammable gas, in particular in the vicinity of potential sources of ignition, such as mechanical equipment, which might generate hot spots. Tank washing may only commence once the tank atmosphere reaches 10% or less of the LFL. During washing Atmosphere testing should be frequent and taken at various levels inside the tank during washing to monitor the change in LFL percentage. Consideration should be given to the possible effect of water on the efficiency of the gas measuring equipment and therefore to suspension of washing to take readings. Whenever possible, mechanical ventilation should be continued during washing and to provide a free flow of air from one end of the tank to another. Mechanical ventilation concurrent with tank washing is recommended, but where this is not possible, the monitoring of the tank's atmosphere should be more frequent as the likelihood of rapid gas build up is increased. The tank atmosphere should be maintained at a level not exceeding 35% LFL. Should the gas level reach 35% LFL at any measured location in the tank, washing operations must immediately cease. Washing can be resumed when continued ventilation has reduced and is able to maintain gas concentration at 10%, or less of LFL. If the tank has a venting system that is common to other tanks, this tank must be isolated to prevent ingress of gas from other tanks. ISGOTT also gave recommendations as to how to control the ignition sources within a tank. Different washing methods give rise to differing risks and ISGOTT recommended several precautions for tank washing in non-inert conditions. For example, re-circulated water must not be used, while heated wash water can be used, but it should stop if the gas concentration reaches 35% of the LFL. A hot wash for a low flashpoint product should only be undertaken following a full top to bottom cold wash cycle. Following this, the guide gave certain precautions to look out for while tank washing, including the use of portable tank washing machines and hoses, portable hoses for use with both fixed and portable tank washing machines, tank cleaning hose testing, the act of tank cleaning simultaneously with cargo handling, the avoidance of water free fall, water spraying, the exclusion of oil cargo from the engine room, plus a listing of special tank cleaning procedures. Also covered were vessels regularly carrying leaded gasoline and the removal of sludge, scale and sediment and the cleaning of contaminated ballast spaces. Other chapters related to tank cleaning included gas freeing and TO crude oil washing. Kockum Sonics - our strength is your benefit ® ® ® Kockum Sonics- your supplier of TYFON , LOADMASTER , LEVELMASTER level gauging ® system , SHIPMASTER flexible cargo & ballast system and sound cleaning tools. KOCKUM SONICS, Tel:+46 40 671 88 00, Fax: +46 40 21 65 13, www.kockumsonics.com September 2006 z TANKEROperator 45 p37-46.qxd 06/09/2006 11:47 Page 10 TECHNOLOGY TANK CLEANING DNV modifies notation Leading class society Det Norske Veritas (DNV) has modified its 10-year old voluntary Effective Tank Cleaning (ETC) notation. A new version was published in July. Head of section Kare Klokk explained that the notation had been revised at the request of shipowners, especially those who wished to change between carrying white oils and black oils. This required improved surface requirements for carrying different cargoes and also created a need for more control over tank cleaning machine standards to DNV- certified performance levels. “This,” explained Klokk, "was mainly a commercial issue before a vessel loads the next cargo, rather than a safety issue." He said that the IMO COW system was not now good enough for chemical and products tankers. For chemical tankers and compliance One tug, multiple functions... Our tugs combine – – – – – escort services tug operations salvage firefighting advanced oil pollution service P.O.Box 394, 5501 Haugesund, Norway Telephone +47 52 70 45 45, telefax +47 52 70 45 50 E-mail: [email protected] www.ostensjo.no 46 with MARPOL Annex II, there were requirements for pre-wash and stripping performance that are to be modified from the beginning of 2007. The tank cleaning challenges facing the tanker industry was finding the right level of skill in machine operators on board ship. The operation tends to be time consuming and invariably there is a lack of hot water available to carry out the process properly. Also the machines themselves lack the capacity needed and sometimes not enough of them are fitted on board ship, Klokk said. He also thought that there were too many shadows in a cargo tank to enable the tank to be cleansed effectively. Another problem that crops up from time to time is that sometimes the coatings’ material in the piping systems is not found to be compatible with the cargo. Fixed machines More modern tonnage tends to have fixed machines, while older tankers still used portable washing machines. DNV's ETC requires: Cargo tanks to be stainless steel or coated, in general without internal structures, such as corrugated bulkheads. Cargo piping and heating coils to be of stainless steel or equivalent materials. Cargo tanks to be served by individual in-tank cargo pumps and have suction wells placed to ensure optimum drainage results. Cargo tank washing with hot water with a minimum temperature of 85 deg C with a capacity to at least wash the largest cargo tank. As for the tank cleaning machines the revised notation says:Permanently installed tank washing machines machines must give a minimum coverage of 96% based on DNV Certified Jet Length at normal operating pressure and a minimum 10 deg jet angle hit. Shadows caused by the pumps stacks are to be TO included in the shadow area. TANKEROperator z September 2006 p47-60.qxd 06/09/2006 09:33 Page 1 TECHNOLOGY SHIP-TO-SHORE INTERFACE T Mooring safely hese included the assessment of limiting environmental criteria for safe operations and issues associated with the provision of a safe means of access between the ship and shore. Operations requiring special procedures are described, including the double banking of ships and loading and discharging of cargo utilising tidal increases in depth of water, called 'over the tide'. The guide also included a brief explanation of the phenomenon of pressure surge in pipelines and discussed the manner in which it may be controlled. As well as a host of other recommendations, ISGOTT provided information on a range of terminal operational procedures and activities that influence the safe receipt and handling of ships. As for pre-arrival communications, terminals should provide ships visiting their berths with information on all pertinent local regulations and terminal safety requirements. Mooring equipment should be appropriate for the sizes of ship using the berths. The equipment provided should allow the ship's mooring arrangement to hold the sized for the ships visiting the berth. The Safe Working Load (SWL) of each mooring point or lead should be known to the berth personnel or marked on each mooring point. Where shore mooring lines are provided, the terminal should have test certificates for the lines and the berth operating personnel should be aware of their SWL. Mooring equipment should be appropriate for the size of ship using the berth - ISGOTT. The section on pipeline flow rates provided guidance on precautions necessary to control static electricity generation in receiving tanks on board or ashore. September 2006 ship securely alongside the berth in the weather and tidal conditions expected at the berth. The terminal should provide mooring bollards, mooring bitts or mooring hooks positioned and TANKEROperator For each berth, terminals should establish weather operating limits defining the thresholds for stopping cargo transfer, disconnecting cargo (and bunker) hose connections and removing the ship from the berth, taking into account the SWL of the mooring system components and, if appropriate, the operating envelopes of the loading arms. Operating limits will normally be based on ambient environmental conditions, such as: wind speed and directions, wave height and speed, speed and direction of the current and swell conditions that may affect operations at the berth, electrical storms, environmental phenomena, for example river bores of ice movement, and extremes of temperature that might affect loading and unloading. These environmental limits should define the thresholds for: manoeuvring during arrival and berthing, stopping loading and discharging, disconnecting cargo hoses and hard arms, summoning tug assistance, removing the ship from the berth, and manoeuvring during unberthing and departure. Information on environmental limits should be passed to the ship at the pre-cargo transfer conference and, where applicable, be formally recorded in the ship/shore safety checklist. Routine local weather forecasts received by the terminal should be passed to the ship, and vice versa. Wind critical The terminal should, if possible, have its own locally installed anemometer for measuring wind speeds. Alternatively, other means may be used, for example wind reports from a reliable local source, such as a nearby airport or a ship. Equipment for the measurement of other environmental factors should be considered, as appropriate. Means of access between ship and shore are addressed by national regulations, usually by 47 p47-60.qxd 06/09/2006 09:33 Page 2 TECHNOLOGY SHIP-TO-SHORE INTERFACE the port state or by the ship's flag state. Any means of access must meet these regulated standards and should be correctly rigged by the ship or by the terminal, as appropriate. Personnel should use only the designated means of access between the ship and shore. Responsibility for the provision of safe ship/shore access is jointly shared between the ship and the terminal. At locations that commonly handle ships, including barges, that are unable to provide a gangway due to the physical limitations of the berth or the nature of the ship's trade, the terminal should provide a shore based gangway or alternative arrangements to ensure safe ship/shore access. In any case, the preferred means for access between ship and shore is a gangway provided by the terminal. When terminal access facilities are not available and a tanker's gangway is used, the berth must have sufficient landing area to provide the gangway with an adequate clear run in order to maintain safe, convenient access to the tanker at all states of tide and changes in freeboard. Irrespective of whether it is provided by the terminal or the ship, the gangway should be subject to inspection as part of the ship/shore safety checks that are carried out at regular intervals throughout the vessel's stay at the berth. Ship safety management and liabilities weigh heavily on operating companies and crews. Reliable guidance for the mooring arrangements, especially at unsheltered locations, is critical. The Tension Technology International (TTI) group has launched and is now leading a joint industry project (JIP) to advance the design of marine rope moorings. The JIP has drawn extensive international sponsorship and interest from gas and oil companies, shipmanagers, designers of jetties and vessels, port authorities, maritime civil engineers, fibre and rope manufacturers, equipment manufacturers and representative organisations such as OCIMF/ SIGTTO. There is as yet no industry 48 Cargo transfer ISGOTT also laid down recommendations for cargo transfer equipment, for example, hard arms and flexible hoses used to make the ship/shore connection. The type of equipment is described, together with recommendations regarding its operations, inspection and testing. If not properly engineered and maintained, this equipment will provide a weak link that may jeopardise the cargo system's integrity. The topics addressed include: metal cargo arms, forces on manifolds, tanker manifold restrictions, inadvertent filling of arms while parked, ice formation, mechanical couplers, wind forces, precautions when connecting and disconnecting arms, precautions while arms are connected, and powered emergency release couplings (PERCs). As for cargo hoses, they should conform to recognised standard specifications, or as recommended by OCIMF and confirmed by established hose manufacturers. Hoses should be of a grade and type suitable for the service and operating conditions in which it is to be used. Special hoses are required for use with high temperature cargoes, such as hot asphalt, and also for use with low temperature cargoes. The information on cargo hoses is condensed from British Standards BS EN 1765 and BS 1435-2 ('Rubber Hose Assemblies for Oil Suction and Discharge Services'). It is provided to give a general indication of hoses that may be supplied for normal cargo handling duty, commonly referred to as 'dock hoses'. Reference may also be made to OCIMF publication 'Guide to Purchasing, Manufacturing and Testing of Loading and Discharge Hoses for Offshore Moorings' for information on hoses commonly used at conventional buoy and single point mooring (SPM) facilities. For normal duty, there are three basic types of hose: rough bore, smooth bore and lightweight. TO consensus, guideline or code of practice applicable to ship moorings exposed to waves and swell. To highlight the need for such a practice, recent work has shown that longer tails* (than at present adopted in practice) are necessary to make an exposed ship mooring safe where vessel motions are significant. The aim of the JIP will be to provide a better understanding of a range of issues that influence a mooring system. These include the properties especially fatigue - of the most suitable materials for mooring lines and tails plus their inspection and retirement criteria. Using TTI's Optimoor software, it will also analyse and report the effects of ship size, hull shape, load condition, under keel clearance (UKC), wave exposure on vessel motions and forces resisted by the moorings. Another important issue being addressed is the wear of synthetic lines through fairleads. High modulus polyethyelene ropes are now commonly replacing steel wire rope on winches since they have the same strength at the same diameter. To optimise the life, reliability and safety of the ropes, the sensitivity to fairlead surface roughness and material has been evaluated with important findings. Project deliverables due later this year, will include; 1) A stand-alone program to calculate ship motion for open water and piled jetty in six degrees of freedom for a range of monohull geometries. 2) A stand-alone program to estimate fatigue life of mooring lines. 3) Draft guideline for the selection of tail material, length, and construction to optimise vessel response and rope fatigue life. 4) Draft guidelines for the examination, inspection, and retirement of fiber rope mooring lines and tails. A new feature to be included in Optimoor will be the fatigue life calculation for mooring lines and fibre tails. Optimoor is available in three versions - Standard, Plus, and Dynamic. A Seakeeping option can be added to any version. Licence purchase and leasing options are available for all programs. Formed in 1985, Tension Technology International (TTI) is an independent consulting group specialising in flexible tension member systems. *Tails are additional line segments which can provide greater variation in line elasticity, especially important for controlling the excursions of gas TO carriers and oil tankers. TANKEROperator September 2006 p47-60.qxd 06/09/2006 09:33 Page 3 Simplicity in a complex world Imagine a global system of navigation that is safe, accurate and easy to manage. The Admiralty ECDIS Service brings an end to unpredictable pricing, limited coverage and disjointed distribution whilst making sense of current legislation. It combines ENCs and comprehensive ARCS coverage to give you the safest, most accurate electronic charts in the world in a seamless service. The Admiralty ECDIS Service provides official electronic charts from a single source at a fixed annual price. New ENCs in the service are automatically included as they become available along with New Editions and weekly updates - all at no extra cost. Easy to order, easy to manage and easy to use - the revolution has arrived. For further details talk to your Admiralty distributor or visit our website at: www.ukho.gov.uk R T S A G FO E U IT UR TIM n VIS AMB ION sions otions T ses ula H M UES Q&A ice, reg M S S Q s and Serv tems DI r s ina DIS sy d em lty EC arting stan G s r ily ira ch .O all u a 2 o D dm nd t 1 c a A s a Hall e or 04 4 r eu the Se 232, t mo ext 1 No d ou 900 fin 37 to 23 3 8 01 EC Revolutionise navigation… Charts You Can Trust p47-60.qxd 06/09/2006 09:34 Page 4 TECHNOLOGY NEWS Software house expands and wins key contracts US-based nautical software provider Veson Nautical has expanded its operations and won a major order for its flagship vessel operations system. Basically Veson offers software for vessel chartering, operations, accounting in one package, while another software package is aimed at terminal vetting processes. Veson's core business revolves around the Integrated Maritime Operations System (IMOS), which is aimed at providing a tool to manage commercial marine operations in three areas chartering, operations and financial management. The software can be used separately, or as a complete package. The most recent release was IMOS v4, in which Veson uses a Microsoft.NET framework. It is claimed that a user needs minimal training to use the upgraded software. Examples of the workflow in the chartering mode are - cargo planning, voyage estimating and fixture notification. For operational requirements the end user can compute vessel scheduling, voyage management and fleet scheduling, which includes a map. The financial side of the package can be integrated to the corporate accounting function. In 2004, Veson introduced VELAS, which the company claims is a user friendly, webbased tool that has been designed to manage the work flow of the vessel and the terminal vetting procedures. It was the result of a joint venture between Veson and Maritime Information Systems (MIS). This software enables authorised users to: From any location access information ranging from inspection reports to historical evaluations. Integrate with Q88.com to electronically receive validated questionnaires directly from owners. Quickly assess a vessel's acceptability in an easy to use, graphical format. Use company defined business rules to rate vessels and terminals. View system generated recommendations based on facts, such as vessel parameters, terminal and cargo. Automate the importing of third party data, such as casualty information, ownership, vessel particulars, etc. Set specific user access controls via the security module. Link to IMOS for tracking voyage actuals. One of the latest companies to take advantage of Veson's IMOS package is the National Shipping Corporation of Saudi Arabia (NSCSA). IMOS will manage NSCSA's chartering and operational activities for its growing fleet of tankers, including VLCCs, operating worldwide in the global tanker markets. NSCSA owns and operates nine double-hulled VLCCs, each with an individual capacity of 2.1 mill barrels, technically managed by its wholly-owned subsidiary, Mideast Ship Management, Dubai. These vessels will be accessing IMOS remotely to track daily voyage operation activities and actual voyage costs. NSCSA's office in Dubai will host IMOS and will perform the commercial/chartering functions, as well as oversee voyage financials; the head office in Riyadh, Saudi Arabia will leverage IMOS for voyage P&L reporting purposes. NSCSA evaluated IMOS for six months prior to its decision to license the software. The company said that IMOS provided one integrated, common platform to share commercial information across various company sites and would scale up quickly to accommodate the company's dynamic expansion plans. Veson’s president John Veson "The VLCC fleet has been growing steadily; in fact, by the year-end 2005, we had transported approximately 27 mill tonnes or 200 mill barrels of crude oil with our ships that have completed more than 100 voyages on the spot voyage markets since 2002. Our VLCC fleet will grow from nine ships to 17 ships in 2009," explained Michael Hudson-Davies, vice president commercial of NSCSA, Dubai. "Our strategic plan provides for further expansion of our VLCC fleet and to continuously meet our goal of providing our customers with operational excellence. We expect Veson Nautical's IMOS software to provide us the platform to more efficiently operate our commercial management operations, seamlessly integrated with our technical and operations manager, Mideast Ship Management and report financially and administratively to our Riyadh corporate headquarters." Another client, PMI® Comercio Internacional, based in Mexico City, is a trading company involved in the transportation of oil, gas and other products around the world. Similar to any company involved in the commercial maritime shipping industry, PMI needed a reliable and user-friendly database to manage record keeping for vessel clearance processes. Max Córdova, PMI's marine safety assistant director explained, "The clearance process for ships involves several steps, such as receiving requests from the commercial or chartering staff, consulting information from different sources regarding the performance of the ship, answering these requests and maintaining files for review. "An accurate database containing historical data is crucial, since the risk of not having access to this information can be high. There is the very real possibility of dealing with substandard ships that can place human lives, the environment, the facilities, the cargo and the company's reputation in danger; or simply having a quality ship not suitable for a specific marine facility. These costs can only be qualitatively predicted, but they can be a significant amount," he said. In 2003, PMI carried out a benchmarking study with other oil majors. One of the activities was to review the software developed by those companies and to identify areas of improvement for its own system. After analysing the information collected, PMI started the process of reviewing a number of different products to fulfill its requirements. Córdova explained, "One of the results of our study was that it was necessary to install an information system that would continued on p52 50 TANKEROperator September 2006 p47-60.qxd 06/09/2006 09:34 Page 5 PRES-VAC ENGINEERING A/S SVANEVANG 3-5 DK-3450 ALLERØD DENMARK PHONE: +45 48 17 40 55 • FAX: +45 48 17 17 88 E-MAIL: [email protected] • WEB: pres-vac.com REDUCE VOC LOSS BY 80-90% 3rd generation The new generation type HS-ISO is designed in every aspect according to ISO 15364:2000 with a view to minimize maintenance and enhance in-service reliability. Inspection of the inside as well as maintenance is a 100% on-deck event. Replacement of all wear parts is done legally without interruption of operations on a 1 minute-valve-year-basis by a single crewmember, and – best of all - the unit is back to as new condition without lapping. ISO 15364:2000 is not a test standard, but the owner’s checklist for in-service quality and performance assessment. TYPE HS-ISO - MAIN FEATURES: 9 9 9 9 Adjustable opening and closing pressure All maintenance done from the outside All time high fouling tolerance Constant tank pressure for VOC loss reduction by 80-90% 9 9 9 9 9 Inspection done from the outside Non-oscillating performance No inside maintenance No pressure peaks No loss of tank pressure On deck replacement of all wear parts for a 1000 m3/h unit. No lapping needed. Done in 1 minute. Inside maintenance equal to that of the piping. Setting adjustment nut. p47-60.qxd 06/09/2006 09:34 Page 6 TECHNOLOGY NEWS continued from p50 assist the user in identifying differences on vessels against inhouse business rules. The system would import electronic data to eliminate re-keying information for the ships, would have the capability of producing statistics based on the historical records, and it would have a job board for the pending and completed daily work, while assigning priorities by deploying human resources to attend to other projects." PMI chose VELAS as the company wanted to create a turnkey solution. VELAS was the result of input from the software provider and the end user. "Veson Nautical staff worked with us to install a reliable and user-friendly database that fully met the marine safety department's requirements, plus our internal customers", said Córdova. He World’s largest tanker company signs up for TradeNet Ship supply trader ShipServ Americas' operation has signed up close to 200 new vessels to ShipServ TradeNet, which is claimed to be the world's largest ecommerce portal for ship supplies trading. By far the largest of the new clients is Vancouver-based Teekay Shipping, which has committed its global fleet of over 120 tankers. Other recent additions include offshore specialist Helix Energy Services, LMS Shipmanagement, Liberty Maritime, and Buenos Airesbased fishing concern EstreMar. ShipServ said that further announcements are imminent as the rate of adoptions keep accelerating. Peder Arstorp, ShipServ America's director of sales commented; "We have clearly reached a point where the operational savings speak for themselves. The market is taking note of our clients' successes with ShipServ TradeNet, and the word is getting around." The shipping industry operates on such tight margins that e-commerce is fast becoming a routine decision. With benefits such as 25% 52 productivity increase as more vessels can be handled by each purchaser, 10-20% savings on spot purchasing, and shortened cycle times throughout the supply chain, no one can afford to ignore such bottom line impact," he claimed. Teekay's Norwegian operation has used ShipServ TradeNet since 2001. With this new agreement, all e-procurement activity from Teekay's operations in Sydney, Singapore, Houston, Madrid, Glasgow and Grimstad will be routed through ShipServ TradeNet. "The benefits of having a single e-commerce solution will allow us to standardise our process internally, therefore providing our suppliers with a common platform to transact orders on a global basis," said Rob Sarro, Teekay's director of procurement services. LMS Shipmanagement has been using ShipServ TradeNet for over two months and the efficiency increase is equivalent to removing the work load of one full time purchaser. "It is now company policy for all new spare parts vendors to quote via ShipServ, or else we will not use them," explained Ed Seoane, director of procurement, LMS Shipmanagement. TO also said the PMI takes advantage of the electronic updating of information, such as vessel names, casualties and ownership. The questionnaire is uploaded automatically from an Excel file directly to VELAS, which avoids re-keying the information received via e-mail. Last July, Veson opened an office in Rotterdam, the company's second new office in 12 months. It is headed by technology sales and customer care manager Ramon Lagrand. This office's prime function is to serve customers and market its services to northern European customers. Existing key customers, such as Neste, now have a point of contact for postimplementation work, ongoing requests and customerisation of TO the software. ‘Portable Classrooms’ introduced Kongsberg Maritime has developed a new way to train its customers wherever they are in the world. This takes the form of a 'Portable Classroom', which is intended to be used at customer sites, Kongsberg Maritime sites and also on board vessels. A 'Training Box' is at the core of the Portable Classroom concept. This easy to transport box is equipped with a single remote control system (RCU) and the classroom was a one-week operator and technical training course in Integrated Automation Systems (IAS) for MaranGas in Athens. Some of the comments received included: "It was great to train on the same kind of equipment as used on board," and: "We weren't expecting to be able to practice on our own operator stations." Kongsberg Maritime's courses and training activities are based at company headquarters in Kongsberg with training centres for different products in Horten, Trondheim, Aberdeen, Macaé, A classroom atmosphere on board ship. most common remote input/ output (RIO) modules, which are interchangeable, depending on the type of equipment installed in the vessel to be trained for. Additionally, 10 fully loaded laptop PCs are included, to act as operator stations during training. The first outing for the portable Houston, Singapore, Busan and, as from this autumn, Dubai. The Training Centre in Kongsberg was one of the first in the world to be approved by the Nautical Institute. Last year, a total of 2,500 customers participated in Kongsberg TO Maritime courses. TANKEROperator September 2006 p47-60.qxd 06/09/2006 09:34 Page 7 Global with a local address Because someday your ship will come in Travel the world, but someday you’ll have to stop, or at least slow down to take on bunkers. And when you do, you’ll find us waiting. With physical supplies in key shipping lanes and reliable partners elsewhere, OW Bunker offers you global peace of mind. And because we operate locally under our own name, you’ll always find someone home if you run into a problem. Physical Supply · Global Trading · Risk Management w w w. o w b u n k e r. c o m p61-77.qxd 06/09/2006 09:21 Page 1 Ice Class Shipping Review a TANKEROperator special supplement Fea tur es: Gr eeks see an oppor tunity Design and pr opulsion issues Aker Ar ctic tec hnolo g y StealthGas pr of ile R ussians a t the f or efr ont T he Manha ttan stor y p61-77.qxd 06/09/2006 09:21 Page 2 © Hans Strand Ask us about… ship operations in cold climate Det Norske Veritas has over the years gained unique experience related to ship operations in cold climate. The current DNV-classed fleet of vessels built for operation in cold climate consists of around 1750 vessels of all types. DNV has the highest market share of oil tankers built for operation in cold climate; around 400 vessels, or close to 40% (dwt). Almost 50% of all tankers on order with ice strengthening are to DNV class. “In all vessels that may have to steam through ice, the frames at the extreme forepart are to be closer than here directed, or some other sufficient additional strengthening of the vessel’s forepart must be adopted.” Abstract from DNV’s Rules and Regulations, November 1881. Det Norske Veritas, NO-1322 Høvik, Norway, tel +47 67 57 99 00, www.dnv.com p61-77.qxd 06/09/2006 09:21 Page 3 ICE CLASS SHIPPING REVIEW More ice please! According to a leading UK broking house, although the orderbook for ice class tankers has slowed this year, the investment was still running at over $8 bill. There are well over 200 ice class vessels of more than 12.5 mill dwt on the order books, due to be delivered by 20082009. Nearly 150 of these are being built to Ice Class 1A. The broker also estimated that by 2008, 10% of the tanker fleet will have some form of ice class (There are different classifications depending on the severity of the weather likely to be encountered). The so called high-spec fleet (1A and 1A Super) is set for massive growth figures, while the low spec will show marginal growth. These impressive figures are driven by the massive increase in oil exports from ice effected ports, or fairways. The Baltic alone is expected to be exporting 2.1 mill barrels per day by 2008, up from 500,000 barrels per day in 2005. The Sakhalin 2010 output is put at 250,000 barrels per day, while northern Russia (Barents Sea area) could be contributing 760,000 barrels per day. On the downside, taking an aframax size vessel (the maximum that can go through the Baltic fully laden on a draught of 15 m) an ice class vessel will cost more (+5%-+10%), will be heavier, will need more bunker fuel and will have different specifications, which leaves it at a disadvantage from its non-ice class counterpart when trading outside ice covered areas. Much of the interest in large crude carrying ice class tankers is down to the emergence of oil loading terminals in the Baltic (Russia, Estonia, Latvia, Lithuania and Poland, plus shipto-ship transfers off Denmark), Barents Sea and Sakhalin Island, built to export Russian oil. The St Lawrence River and the Great Lakes are other areas where ice class is needed during the winter months. There are also large discharge terminals in Denmark, Poland, Finland, Norway and Sweden to serve local refineries. However, western Norway's North Sea loading terminals at Mongstad and Sture are ice free due to the Gulf Stream as are the North Sea offshore loading terminals. Examples of fleet expansion include the Greeks, who have been very active in ordering ice class tonnage (see page II); Stena has joined together with Sovcomflot in a sort of pooling arrangement, which also includes specialist crew training. Both Novorossisk Shipping (Novoship), Primorsk (Prisco) and Sovcomflot have ice class tankers as has Lukoil. They are all paying attention to seafarer training. Added to this, there are literally hundreds of small-ish products/chemical tankers controlled by Scandinavian companies and others operating in northern Europe, for example Rotterdam-Sweden. Such is the demand that Stena's ship management arm Northern Marine Management recently said that it has only taken on trainees for ships operating in ice TO conditions. Contents II Greek investment leads the way Twelve months ago Greek had the hots for ice. In the months leading up to Christmas 2005, Greeks had placed orders for some 44 ice-class tankers, an investment which cost them near $1.5 bill. VI Let’s make it ice and easy! The implications on the design, propulsion and operation of a vessel trading in Arctic regions are many. We highlight a number of areas that should be carefully considered. September 2006 XIII Finland’s Aker Arctic continues Arctic ship developments Aker Arctic Technology Inc (AARC) in Finland is owned by Aker Yards together with minority shareholders Wärtsilä, ABB, and Norwegian Aker Kvaerner Engineering. Register XIV Russian helps develop Polar Rules As befits its geographical status, the Russian Maritime Register of Shipping (RS) has been actively involved in the development process of the Polar Ship Rules, substantially contributing to ice strengthening aspects. This work formed the basis for the current IACS studies. Ice Class Shipping Review TANKEROperator XVI Arctic Tanker Technology Arctic ship technology has been developed if Finland for decades and new improved products have been introduced in the market on a regular basis. We look at the latest newbuilding projects. XIX Stealth on Ice The intentions of the ambitious Nasdaq-listed, Athens-based StealthGas to cover the entire needs of the gas market sector in ships of up 8,000 cu m were clear early on and have been well documented. XX Looking back in time The concept of ice class tankers is not new - the Manhattan story. I p61-77.qxd 06/09/2006 09:21 Page 4 ICE CLASS SHIPPING REVIEW Greek investment leads the way Twelve months ago Greeks had the hots for ice. In the months leading up to Christmas 2005, Greeks had placed orders for some 44 ice-class tankers, an investment which cost them near $1.5 bill, writes David Glass. I f proof was ever needed of the growing Greek interest in ice-class shipping then it was offered at a one-day seminar in Athens at the end of last year. The December sun outside the Athens Intercontinental Hotel was abnormally hot for that time of the year, but the discussion inside was all about snow and ice. More than 100, mainly technical people, packed into the seminar under the board heading of 'ice operations' given by US class society, ABS. A glance around the room identified the reps of more than half a dozen tanker companies with newbuilding projects involving ice-class ships. It was also easy to see why many of them were there, they wanted to learn all they could about operating ice class ships. Since then, the rush to order ice class tonnage has cooled. Most of the ships booked are medium range (MR) chemical and products tankers with a sprinkling of aframax and suezmax tonnage. As 2005 progressed much was being said about the rush into iceclass shipping. This was especially so in the case of the Greeks who were seen to be joining a band of specialists, most of whom were brought up in icy conditions. The Greeks had purchased the odd ice class tanker on the sale and purchase market, and indeed still do, but after they spotted the growing need for new higher class ships as regulations on ice trading II One of Hellespont Hammonia’s recently acquired suezmax tankers went through a special survey at Lisnave. tightened, they made their move. Several of the owners, most notably Andreas Martinos with his Minerva Marine, had also experienced first hand the drama associated with navigating the floes having had ships trapped. So, as often happens Greek owners were at the head of the rush for ice class. By moving early, ships were ordered before the rise in building prices and the shortage of building berths. Greeks are now busily taking delivery of their ships and most will be trading by 2007. Few ice-class tankers have been booked by Greek interests in the past 12 months, a good thing perhaps as all told there are over 400 product tankers on order, many of them ice-class with peak delivery time in late 2007 into 2009. Indeed, many analysts are suggesting the icebreaking tanker sector could be set to struggle as the fleet continues to expand. "Many of the Greek owners wanted to replace old tonnage and went for ice-class ships realising there will be a shortage on independently-owned tonnage in this bracket. The orders were placed early and many of the ships will trading before this ice season and thus should be able to cement their place in the market," said Athens-based broker Dinos Perros, of DLP Maritime. At the peak of the 2005 ordering frenzy, London shipbroker EA Gibson said just over 200 ice-class tankers of 16 mill dwt were on order, about 120 of them products tankers. Of the tankers on order some 150 are to high specification ice-class 1A with about 50 of them to deliver in 2006. Nicos Tsakos and Tsakos Energy Navigation (TEN) and George Economou at Drytank have opted for large 1A class ships while Evangelos Maranakis and his family's Capital Maritime have ordered MRs. Martinos and Minerva Marine are building handymaxes and aframaxes as is Constantine Angelopoulos/ Arcadia Shipmanagement. Greece's two biggest players, TEN and Minerva identified the likely demand for ice-class ships early and placed orders anticipating a strong demand from oil companies and charterers in Russia, Finland and Canada. When ordering two 162,400dwt suezmax double-hull 1A ice-class tankers at Hyundai, for delivery first half 2007 at a cost of around $60 mill each, Tsakos said in March 2004: "The innovative design of these environmentally friendly, 1A iceclass vessels, like the handysize contracts announced late January, means that we expect these vessels will have the opportunity to earn a significant premium for their unique capabilities." TEN's management believed the ships will be in heavy demand as oilfields and ports are developed in Russia, Eastern Siberia and Alaska and will carry a substantial freight premium. Strategic alliance Indeed, as the short Arctic summer season was opening end June, TEN announced it had entered a strategic co-operation with Finland's Neste Oil, a leader in ice-class trades. On 1st August, TEN confirmed its arrangement with Neste had been enhanced. The initial collaboration with the Finnish oil refining and marketing company involves twoyear charters for the three Ice Class Shipping Review TANKEROperator September 2006 p61-77.qxd 06/09/2006 09:21 Page 5 p61-77.qxd 06/09/2006 09:21 Page 6 ICE CLASS SHIPPING REVIEW recently acquired 2006-built 116,000 dwt LR 1A ice-class product tankers, Proteas, Promitheas and Propontis, the largest ships in their class. The enhancement came through the three-year employment of the 2005-built MR product tankers Ariadne and Apollon. The five tankers came as part of a nine-ship $530 mill deal TEN struck with Western Petroleum in February. The deal involved five ice class 1A 2005delivered MR products tankers and three ice class 1A aframaxes at the time under construction at Hyundai, with commissioning set for between May and October this year. TEN said the timecharters called for a minimum rate "well above the ships' all-in breakeven rate, with a 50:50 profit split on the upside". The five ships will be on charter by October and TEN calculated the charters, "just by earning the minimum rate", would generate gross revenues in excess of $100 mill. “ optimistic this partnership will further flourish to include other operational synergies highlighting each company's strengths." TEN operates 37 ships and its newbuilding programme comprised 14 ships, including two LR aframax products carriers, four aframax crude carriers, two suezmaxes, five handysize products carriers and a LNG carrier. By the end of 2007, TEN will have invested over $1 bill in the 24 ice class tankers in the fleet. Versatile fleet Versatility is a major asset of the icebreaking tanker said Tsakos. The company had up until recently done little ice trading. The Proteas, entered a spot related voyage carrying naphtha on its commissioning from Hyundai and TEN's 1A ice-class 36,660 dwt products tanker Antares upon leaving Hyundai Mipo Dockyard, entered a threeyear timecharter with an unnamed, but major Asian entity. the market, it will develop and we will be part of that." Tsakos says TEN's strong position in ice-class capability "gives an edge in serving this rapidly growing market with particular emphasis on the dynamic petroleum products segment. Expansion in scale is also helping to combat the pressures of rising costs of operation and overhead expenses". TEN had displayed this determination all along with the chase and purchase of the Western Petroleum operation being a classic example. Buying the Geneva-based Western Petroleum, which has close links with Russia's LUKoil, not only demonstated TEN's keenness to become a leading owner of modern ice-class tankers, but it also showed the New York-listed, Athens-based owner knows when to move and what it wants out of the sale and purchase market. The deal had brokers buzzing, with Braemar Seascope commenting the $530 mill paid is It used to be a closed club and it wasn’t easy to tell what the going freight rate was. Now with more players getting into the market, it will develop and we will be part of that. George V Saroglou, vice president and coo, TEN "We are proud to enter into this co-operation with one of Europe's premier independent oil companies with significant iceclass experience which directly complements TEN's ice class fleet, one of the largest in the world," said TEN's president and ceo Nikolas P Tsakos. "This venture further confirms our strategy to employ our vessels with distinguished end-users. These charters provide us with steady income over and above the vessels' all-in breakeven costs while simultaneously allowing us to take advantage of upside market opportunities. We are IV However, like the aframaxes, Antares' timecharter was for a minimum rate that exceeded the ship's all-in breakeven rate. The charter also called for a 50:50 split on the upside if rates exceeded a specified level above the minimum and, TEN estimated that for the duration of the charter, Antares minimum rate should provide an additional $16 mill in gross revenue. George V Saroglou, TEN's vice president and coo said of the icebreaking market: "It used to be a closed club and it wasn't easy to tell what the going freight rate was. Now with more players getting into ” clear evidence "TEN have managed to secure a fantastic price". With brokers believing this, buying Western Petroleum also demonstrated how the relevant value of tankers had changed in the past couple of years. For example the nine Western Petroleum ships were contracted in 2003, reportedly for around $335 mill. Second biggest player Minerva Marine, run by Andreas Martinos, the youngest of the three Martinos brothers, is Greece's second largest operator of ice class tankers, having over the years built 17 of them ranging in size from 105,000 dwt aframaxes down to 50,000 dwt tankers. Eldest brother, Thanassis of Eastern Mediterranean has left ice class alone, while brother Dinos, boss of Thenamaris (Ships Management), has had a small number in the fleet of aframax size, however, ice strengthened rather than ice class. Minerva was among the first true cross-traders to order ice class tankers, booking two suezmaxes of 147,100 dwt at Samsung in 1998, which were delivered during mid-2000. There has been a steady flow of ice-class ships over the past three or so years from South Korean yards, which now accounts for 17 of the 28 ship in the all tanker fleet. But the first two are the only large ice-class ships. "We studied the ice trades very carefully after the first two ships and believe the aframax size is best suited for ice class. With the suezmax there are navigation problems in the cleared channel," explained Georgios Kavounis, a superintendent in Minerva's technical department. He said the 51,000-tonners were next best, with the intended trade and cargo extremely important when determining what ships to build. Minerva had contracted 12 aframaxes and six 50,900 dwt products tankers in the last three years. The last two of the 50,900tonners are to deliver in September and November from STX Shipbuilding. "We are involved in the project right from the inception, design, construction and trials. There are standard designs but we support these with innovations of our own which have been developed as the company has different operational experiences," said Kavounis. "Mistakes must not happen for even small mistakes can cause big operational problems. With ice-class ships this is especially so. Ice Class Shipping Review TANKEROperator September 2006 p61-77.qxd 06/09/2006 09:22 Page 7 ICE CLASS SHIPPING REVIEW Hot water system He said Minerva has developed a number of different arrangements for dealing with common problems faced in the ice trades. Kavounis explained: "For example, de-icing the upper decks. We believe the use of steam, the usual way, can be dangerous and we have developed shipowner ordered two suezmax tankers at Hyundai with delivery in the first half of 2007. Drytank/Economou placed an order for a 105,000 dwt aframax tanker at Shanghai Waigaoqiao Shipbuilding (SWS). She is set for delivery in 2007. No price was revealed for the ship, which One of Minerva's 51,000 dwt ice class tankers a hot water system." He said there is no such thing as a patent on a design idea. "There is a sharing of ideas and if the owner is prepared to pay the extra an idea will cost, then it is implemented. We think about how best to share common problems." However, he said all shipowners building ships today are concerned about the pressure being put on shipyards to deliver ships. The fear is "quality many give way to quantity". He noted that should there be a delay, catching up on delivery times could mean "minor items are not up to standard and there can be a problem". Kavounis recently warned a delegation of South Korean shipbuilders visiting Greece that "quality is dropping all round and the only thing to do is improve productivity". Constantine Angelopoulos and George Economou agree with Minerva on the optimum size of an icebreaking tanker. Angelopoulos' Arcadia Shipmanagement and Economou's Drytank have extended their newbuilding programmes by ordering aframax tankers. Arcadia booked two 115,000 dwt ice-class 1A tankers at Samsung for delivery in the second half of 2007 at around $62 mill each. Just prior to placing this order, the Greek September 2006 is the fifth aframax ordered by the Greek company at SWS with two, Lovina and the Corcovado already delivered. SWS is also building eight 175,000dwt capesize bulk carriers for Economou's management arm Cardiff Marine with delivery running from 2006 to 2008. By mid-2004, the fastexpanding group run out of Piraeus by Evangelos Marinakis had committed over $500 mill to newbuilding projects involving some 36 tankers, many of them to trade in niche markets. Since then much of the shipbuilding programme had been dropped with Maranakis claiming some of the projects in Chinese yards had failed "due to the inability of the shipyards to provide re-fund guarantees". One of the projects which remained on course, involved six ice-class 47,000 dwt chemical/ products carriers at Hyundai Mipo. In all, the Maranakis group (Barclay Shipping and Capital Ship Management) currently has an orderbook in South Korea for 13 ice-class double hull ships and two chemical/products carriers in PLA China, worth a total $386 mill to be delivered by November 2007. The six unit order breakdown involves six 47,000 dwt tankers at Hyundai Mipo, three of 51,000 Ice Class Shipping Review TANKEROperator dwt at STX Shipbuilding, four of 37,000 dwt also at Hyundai Mipo and two of 12,000 dwt at PLA Shipyard, Qingdao. The ice-classed products tankers feature enhanced steel scantlings and paint thicknesses in critical areas, as well as extensive machinery upgrades. When delivered, the tankers will make the group one of the largest operators of this ship type in the world. S&P market investments In addition, Greeks have been buying ice strengthened tanker tonnage in the sale and purchase market. In 2005, some 22 ice strengthened tankers were purchased for an investment of around $412 mill. In the first seven months of 2006, eight iceclass tankers were purchased for a total investment of $208 mill. Ten shipowning groups were seen to be buyers with five of the 30 ships involved being LPG carriers. Among the buyers was Basil Papachristidis/Hellespont who, mid-2005 splashed out $68.5 mill and $69.3 mill on two 1996-built 148,000-tonners. The sellers were the Martinos brothers, Minerva and Eastern Mediterranean respectively. The fast-expanding Nasdaqlisted StealthGas bought three of the LPG carriers at the turn of 2005 for an investment of about $32 mill. In all, the Harry Vafiascontrolled by StealthGas (see page XIX) has paid around $220 mill in developing a fleet of some 28 LPG carriers, ranging in size from 1,600 cu m to 8,000 cu m and is ranked number one in the world in the 3,000 to 8,000 cu m sector. StealthGas financed the fleet with the $115 mill raised when it became only the second LPG operator to float in the US. PreIPO, StealthGas, established early 2005, operated nine LPG carriers, including the ice class ships, and like others eyeing the sector, Vafias said: "We believe there will be an increase in demand for gas and that freights will remain at high levels." The Gas Arctic and Gas Ice are both 3,200 cu m and ice class 1B, while the larger Gas Courchevel, 4,380 cu m, is ice class 1C. The market for ice class LPG ships of this size is an extremely small one and thus three units makes StealthGas a prime player in a sector, which is close to its clients. Being close to the market is vital. Kaj Riska, a professor from Finland and an authority of ice class ships and trades, said it is extremely important for owners of ice class ships to identify the trade they wish to chase. "Iceclass ships must be designed in accordance with the requirements of the intended trade," he emphasised at the ABS gathering, last December. "In the Russian Arctic there are not very many icebreakers so this must be taken into account in ship design," said Riska. "In the Baltic there are always icebreakers to escort merchant ships and this is also something that must be taken into account." Riska said that in principle iceclass ships should have mass and power. However, while ship design options and equipment requirements seem to abound there is, as in the gas sector, a lack of experienced crew and this is posing a problem. He said that crew must not only be qualified, experience is also needed. He noted that as financiers are already being seen to be restricting lending to projects involving high-spec ice-class ships to companies with experience in ice-class ship operation and ownership, it is important the crew know what it is doing when trading in ice. "I have been involved in tests, which show just how important an experienced crew, especially the master is," said Riska. "It is a very big factor and tests have shown that a master experienced in trading in ice can carry out manoeuvres in half the time of that required by a master new to ice, even a long serving one." TO V p61-77.qxd 06/09/2006 09:23 Page 8 ICE CLASS SHIPPING REVIEW N Let’s make it ice and easy! atural resources in the Arctic and subArctic regions are in abundance and the Russian Federation alone is sitting on top of 31% of the world's known and unexploited natural gas reserves. Indeed, Russia's economic boom, which saw a 7.1% increase in Russia's GDP in 2005, surpassing the average growth rate in all the other G8 countries and marking the country's sixth consecutive year of economic expansion, can be intrinsically linked to the increase in the country's oil and gas production and the success of exporting seven million barrels of oil products a day to the world markets. This is expected to increase and the global demand for Arctic oil and gas is driving the $4.5 bill investment shipowners are ploughing into the development of ice-class or 'winterised' tonnage. Yet the dynamics of ship operation in these most challenging of environments is changing - ice-going vessels are increasing in size and new players are entering a market hitherto the domain of specialist ship operators. There is also a dire shortage of competent crews trained in arctic ship operation. Presently, the number of ships built according to ice-class standards is 262 (4.2 mill dwt) with the vast majority of which, nearly 80%, are under 20,000dwt. Yet the fleet is set to double in both number and size over the next decade. However, according to UK-based classification society Lloyd's Register, which is developing 'winterisation' VI The implications on the design, propulsion and operation of a vessel trading in Arctic regions are many. Patrik Wheater highlights a number of areas that should be carefully considered. guidelines and products, there is a need for class to strengthen its capability in a number of aspects for ship operation in Arctic conditions. Class guidance Rob Tustin, LR's technical manager - new construction, said: "To adequately deal with new operating scenarios, technologies and trades within icy and cold environments, class must not only provide basic guidance on research institutes to develop new services and to formulate meaningful guidance to help ensure that new opportunities can be taken advantage of while maintaining the safety of seafarers, ships, cargo and the environment in icy and cold operating conditions." LR pointed out that ice and cold operation comprised the confluence of three principal elements: the ice and cold regime, ship operation and the ship itself. wind and weather, currents and presence of land-fast ice, while ice management contained information relating to icebreaker assistance, the availability of ice forecasts and the provision of routeing advice. The implications on the design, propulsion and operation of a vessel trading in Arctic regions are many, not only in respect of choice of ice class, but also in the scope of 'winterisation' that should be applied to the design and operation of the vessel. Ice effects LR warned that risk of damage to the hull of a vessel operating in ice is usually a combination of factors such as the ice sheet thickness, pressure in the ice Class is looking at ship operations in low temperatures. compliance with minimum requirements for ice class, but go beyond this to provide advice on operational aspects. We are working with industry participants, including existing and potential owners of ice-class tonnage, national authorities, equipment manufacturers and The ice and cold regime consisted of the prevailing environmental conditions and the ice management offered by the relevant national authorities. Environmental information included temperature, ice thickness, pressure, degree of ice ridging, duration of ice season, sheet, encounters with ice ridges and large chunks of sea ice, and the manoeuvring and speed of the vessel in these waters. "Particular care is needed when entering the ice field, and operating a vessel in broken ice requires careful control to ensure that the hull, rudder and propeller Ice Class Shipping Review TANKEROperator September 2006 p61-77.qxd 06/09/2006 09:23 Page 9 ICE CLASS SHIPPING REVIEW are not damaged. Icing is a specific issue for vessels trading in cold regions, and the ship's master needs to apply measures to combat this and to be aware of the effect icing will have on the vessel's stability and operating draft and trim," said LR. Frozen sea spray or snow that forms a layer of ice over the ship has a major impact on the stability, safety and general operation of a vessel. For instance, excessive icing can affect stability of the ship's centre of gravity, while safe navigation can be impaired due to radar equipment being out of operation and icing on wheelhouse windows. Ice accumulation can also completely disrupt the functioning of certain deck equipment. For example, it might be impossible to get rescue equipment such as lifeboats and liferafts out of storage due to icing preventing release mechanisms or davits from September 2006 working. Anchor operation too could be hampered. Air pipes could become clogged with ice and other valves might cease to function. Gangways and railings covered in ice make it dangerous and almost impossible to move round safely, and scuppers in bulwarks may be reduced in size, even completely clogged. The most obvious risk comes from the increased loads on the ship through ice contact. This applies not only to the hull, but also to the propulsion system and related appendages such as the rudder. In addition, low ambient temperatures reduce the ductility of the ship materials and, together with the ice, can reduce the effectiveness of many components critical to safe ship operation. Submerged sea suction inlets are particularly susceptible to failure. Classification society American Bureau of Shipping (ABS) believed that while reinforcement in the bow design is the primary Ice Class Shipping Review TANKEROperator concern, attention should also be given to mid-body and aft areas of the hull form, which must also handle the ice-strengthened propulsion requirements and compressive ice pressure should the vessel become trapped. Double-acting designs Typically, when naval architects design hull forms for ice operation, there is a delicate balance between optimising openwater operation and ice-going performance, says LR in the first issue of its Ice Focus newsletter. The ultimate expression of the compromise in hull design between these modes, however, is the double-acting tanker design adopted by Neste Oil in its aframax tankers Mastera and Tempera. These two aframaxes were delivered by Sumitomo Heavy Industries in 2002 and 2003. The double-acting-tanker (DAT) concept works by allowing the vessel to proceed forward in thin ice and astern in heavy ice. Based on an Azipod propulsion configuration, the DAT vessel can turn through 180 deg. As a result, the forward region of the hull is optimised for open water, retaining a bulbous bow, while the stern is ice strengthened to optimise ice-breaking and efficient and safe navigation. Operation astern in level ice is possible due to the combined effects of a decrease in hull ice resistance, due to lubrication of the hull by the water flow from behind the propeller and a decrease in buoyancy of the ice sheet ahead of the ship due to the water flow into the propeller, making the ice easier to break. Ice ridges can also be navigated as the milling effect of the propeller cuts a path for the vessel. Tempera and Mastera, which recently underwent their first drydockings and intermediate surveys carried out by LR, VII p61-77.qxd 06/09/2006 09:24 Page 10 ICE CLASS SHIPPING REVIEW operated successfully during one of the worst winters on record in the Northern Baltic. During the winter of 2003/2004, the vessels continued to operate without encountering any significant difficulties. Likewise, the Azipods are claimed to have functioned without incident. According to the Mastera's master, Captain Sastamala, the capability of the vessel has not only met but exceeded expectations. "The benefits of the double-acting concept truly show themselves when the vessel encounters an ice ridge. A traditional ice-class ship, upon encountering a ridge, would need to back up, perhaps many times, and ram through. With the Mastera, you simply let the propeller do its work until you break through," explained Capt Sastamala. To counter the unique risks involved in Arctic shipping increased loads, low ambient temperatures, reduced effectiveness of components, long hours of darkness and poor weather conditions - winterised vessels incorporate heavier scantlings in the side shell structure in the vicinity of the waterline; possible changes to the design of the bow (particularly for icebreaking or multi-year-ice vessels); larger diameter shaft to accommodate a thicker propeller blade root; and ice knife concepts to prevent possible rudder and steering gear damage when manoeuvring astern. Four-strokes better than two? In the extreme, temperatures can plummet to in excess of -50 deg C and if a vessel operates super charged engines, then the density of the ambient air could have a negative effect on the firing of the engine. There is also a growing trend towards the use of four-stroke diesel-electric propulsion in iceoperating vessels other than icebreakers, which in itself poses challenges in determining minimum/maximum power requirements. The four-stroke arrangement is claimed to have significant advantages over two-stroke applications where ships operate in heavy ice as the four-stroke engine can provide 100% torque at low rev/min, a favourable proposition in Arctic operations. Wärtsilä Propulsion's director of technology Teus van Beek says the difference is in ice going capability. "A low speed engine with a fixed pitch propeller would Several Stena P-MAXES will be delivered to 2008. VIII require a lot of thrust which could potentially overload the engine; this is why tankers with fixed pitch propellers usually require a fairly large amount of icebreaking assistance." However, the cost of hiring icebreaking pilots is not the only factor that puts a dent in the operator's budget: the highlyskewed trailing edges of fixed pitch propeller blades are found to be more susceptible to damage in ice than their cp propeller counterparts, thus more money needs to be set aside for repair. A cp propeller on the other hand, because the direction of the rotation is one-way, the leading edge of the blade interacts more positively with the ice. Podded propulsion and the DAT concept is of course an option and in ice probably the optimum though more costly solution. But the time spent actually navigating through icecovered seas is the deciding factor, although dependent on the actual operating route, a recent study has shown that the amount of time spent in ice can be just 20% of the total voyage time. So in open seas the cp propeller is said to be the optimum solution and can give an almost unlimited power level for ice strengthened applications. E-hub cpp For the ice-going ship Finland's Wärtsilä is pushing a propulsion package based on its W38 or W46 medium-speed engines driving via reduction gears its novel E-Hub controllable pitch propeller. E-Hub is a cp propeller that incorporates a smaller sized hub designed to reduce drag and fuel consumption, but without affecting propulsive power. Introduced in 2004 specifically for ice class vessels and ropaxes, it provides increased stability while maintaining good engine loading without over-torque. Torque is reduced through the change in propeller pitch. This is achieved through new developments in propeller hub design. Wärtsilä has manufactured the 2.8 m diameter hub with a flush outer contour to afford optimal cavitation resistance, reliability and maintainability, while the blade seal, of established double lip design, prevents oil seepage. For additional strength the yoke is cast in bronze instead of cast steel, while the blades are cast in steel as opposed to traditional bronze. Actuating is separated from the hub design. During bearing behaviour comparison trials between the EHub and Wärtsilä's C and CPStype hubs, the hydrodynamic load and local pressure peaks were shown to have reduced substantially for the new hub design. For ice strengthening, cp propellers are preferred due to the high torque requirements operating the ship at low speed in ice channels. Hydrodynamic loads are dominant especially for larger powers and recent cp references have shown very good efficiency characteristics for 1A ice class (no efficiency loss versus fp propeller). Canada's Thordon Bearings warned operators to beware the forces experienced on the shaft and stern tube when propellers Ice Class Shipping Review TANKEROperator September 2006 p61-77.qxd 06/09/2006 09:24 Page 11 It takes knowledge and experience to operate in extreme conditions Stena Bulk is familiar with the harsh environment of the North and knows how to make navigation in icy waters safe. Each year, substantial sums are invested in developing routines and technology, to achieve maximum safety. Advanced technology, together with an experienced crew, is the only way to master icy conditions. In order to understand the vessel´s limitations and be able to handle unforeseen risks, masters are trained at the Makarov Academy in St. Petersburg. The Stena ice-classed fleet offers safe performance in extreme conditions. Stena Bulk is a leading international tanker owner. The company controls a fleet of about 70 tankers from offices in five countries. Stena Bulk is part of the Stena Sphere with more than 14,000 employees. For further information, please visit www.stenabulk.com. GOTHENBURG Stena_bulk_TANKER_OP_IS.indd 1 • HOUSTON • LONDON • MOSCOW • SINGAPORE • BEIJING 06-08-16 13.40.53 p61-77.qxd 06/09/2006 09:24 Page 12 ICE CLASS SHIPPING REVIEW cut through the ice. "It affects the shaft bearings and after seals," said Campbell Cunningham, Thordon's European sales manager, who advocated the company's COMPAC system for ships operating in these conditions. "With our COMPAC water lubricated bearings there is no after seal so this problem is eliminated. One of the main attributes of our polymer materials are their resilience, which helps in absorbing the forces experienced in ice." Thordon Bearings had supplied its water lubricated systems to number of Murmansk Shipping Company and USCG ice breakers, all of which regularly sail in heavy ice. Some are nuclear-powered ice breakers operating off the Northern Coast of Russia. Take the right coat Hull and tank coatings should also be taken into careful consideration. For while traditional anti-corrosive systems, including pure epoxy solutions, are tried and tested in warmer climes, they are not resistant to ice abrasion and ice can abrade or gouge into the paint system exposing the steel substrate, leading to corrosion and other problems. Joey Keasberry, Sigma Marine and Protective Coating's market intelligence manager said that in the permanently immersed areas an impressed current, or sacrificial anode cathodic protection system, will prevent serious pitting corrosion but in the boot-top belt where the surface is periodically exposed to the marine atmosphere, pitting corrosion can occur. In order to protect against such damage, special anti-abrasion coatings should be used." Sigma has its SigmaShield 1200 for ships operating in Arctic conditions. This is a solvent-free epoxy with special anti-abrasion pigment which, the company X claims, gives the coating 'excellent resistance' to ice damage. "In the past, coatings for outside hulls on ice-going ships have had to be applied by hot twin-feed airless spray. In contrast, the SigmaShield 1200 can be applied by single feed airless spray and has a long and “ properties control mechanical damage and hull roughness, saving on future maintenance and repair costs. A reduction in steel thickness at the ice belt leading to reduced overall vessel weight and improved fuel efficiency is also claimed achievable. Specifically designed for ships trading in the Baltic Sea region, One of the main attributes of our polymer materials are their resilience, which helps in absorbing the forces experienced in ice. ” Campbell Cunningham, European sales manager, Thorndon Bearings successful track record for this specialised service," said Sigma's Joey Keasberry. Yet, while ice class vessels trading in first-year-ice do not require complete coating of the underwater hull, they should, as a minimum, be coated in the 'ice belt' region. Norway's Jotun Paints suggested that as different regions of the ships hull have differing ice-impact experiences, "it might be possible to make different coating specifications for different ice class notations and regions on the ship." Consequently, Jotun has developed a number of coatings for different areas of the icegoing vessel. These are Marathon IQ; Marathon; Jotacote Universal and Jotamastic 87 GF; and Safeguard Universal ES (with an anti-fouling). International Paint, meanwhile, has its Intershield 163 Inerta 160. This system is said to provide up to two and half times the impact and erosion resistance of standard epoxies and has been specially formulated for operation in temperatures down to -50 deg C. IP said its low frictional resistance controls fuel costs and improves operating efficiency, while its abrasion resistant the paint has now been applied to over 1,000 vessels trading in ice. One owner to favour the paint is Neste Oil Shipping: "We have used it for many years on our ice strengthened vessels and have noticed that this paint applied at newbuilding is a good investment due to low friction and abrasion resistance in ice conditions," said Markku Lumme, senior technical adviser, ship management, Neste Oil Shipping. IP's own research has shown that a steel hull with a traditional anticorrosive system trading in ice can, as a result of abrasion and subsequent corrosion, experience an increase in average hull roughness in the first year from 100 to 225 microns resulting in an increase of up to 4% in the power required to maintain the same vessel speed. The manufacturer claims that demonstrable annual fuel savings of between seven and 10% have been achieved from using the system. Recent contracts for the coating system have been secured for the application of the paint to two of the world's largest ice-classed tankers, Stena Antarctica and Stena Atlantica. The first vessel, Stena Antarctica, was blasted and coated with the system on the vertical sides at Dubai Drydocks, in June. But with steel temperatures up to nearly 50 deg C, Stena was initially apprehensive about the application of such a specialised product at that time of year. Yet despite the high temperatures the first application was a success. "We are now looking forward to the application of the second vessel, Stena Atlantica, which will be entering Dubai Drydocks during October", said Jim Brown, IP's marketing operations manager. More Maxes These ice-class 1A Super tankers, designed to Stena/Concordia's acclaimed V-MAX design, joined the Stena Bulk fleet in November end December last year for a charter to Russia's Sovcomflot to ship oil from the Gulf of Finland. The company took delivery of the first in the series, Stena Arctica, in 2005. These aframaxes built by Hyundai, were the first of 10 icestrengthened vessels will be handed over to the Swedish shipowner during the next few years. The vessels, mostly PMAX vessels, pencilled in for delivery between 2006 and 2008 include: Stena Polaris (2006: IceClass 1A); Stena Poseidon (2007: Ice-Class 1A); Stena Provence (2006: Ice-Class 1B); Stena Primorsk (2006: Ice-Class 1B); Stena Performance (2006: IceClass 1B); Stena Progretra (2007: Ice-Class 1B) and Stena Progress (2008: Ice-Class 1B). However, since these vessels were ordered, Stena has been working on a number of new 'Max' series designs. One of which, the E-MAX, or EuropeanMAX, is a 14,800 dwt twin-skeg shortsea tanker designed to iceclass 1A standard with a 19,600 cu m capacity. Capable of a service speed of 13.5 knots, this design, like all the ships in the Max class, features full and separate Ice Class Shipping Review TANKEROperator September 2006 p61-77.qxd 06/09/2006 09:24 Page 13 ICE CLASS SHIPPING REVIEW redundant propulsion, with engine rooms separated by a fire and watertight bulkhead; a complete double hull; shallow draught and a wide beam. There are no tanks containing fuel oil, lubricating oils or contaminated water in the outer skin making the Max series environmentally safer than other ships of comparable sizes. In 2004, Stena Bulk said a number of oil companies were looking at the E-MAX design, but it has since transpired that the EMAX project has been temporarily shelved. The next stage in the development of the ice-class tanker is however complete. And following two years development, Stena announced earlier this year a letter of intent to jointly develop with Russian operator Sovcomflot a new type of tanker called the B-MAX. September 2006 The B-MAX ship, for Black or Baltic Sea trade - hence the 'B' prefix - has been designed with economy of scale very much in mind. For example, for Black Sea operations the 299 m long, 66.5 m wide vessel would be able to transport 60% more cargo than a suezmax and 120% more than an aframax. The deadweight of the vessel for Black Sea trade would be 250,000 tonnes. Operations in the Baltic would allow for 82% more cargo than an aframax with a dead weight of up to 200,000 tonnes. Its design would also allow for discharge at all VLCC and the majority of suezmax ports. The design means that just one BMAX would equate to the transportation of an extra 6 mill tonnes of crude oil annually. Once again, the B-MAX design incorporates all the features inherent to earlier MAX ships: Ice Class Shipping Review TANKEROperator double hull, twin skeg, complete propulsion redundancy and high manoeuvrability. The hull form and redundancy arrangements have been designed to safeguard against a major oil spill, especially in the Baltic Sea where restricted water flow through the narrow Danish Belts and the Sound would be catastrophic as the extreme low temperature preserves pollutants. Sergey Frank, Sovcomflot's president said at the time of the announcement: "We have clearly communicated our intentions to focus more on the Russian oil exports. The B-MAX project is aimed at reducing freight costs for our clients whilst increasing safe transportation in the Baltic Sea - we like this equation." So does Stena Bulk president & ceo Ulf Ryder. "Our objective of providing ever safer tanker transportation is clearly visible in our newbuilding programme. We have a special focus on the traffic in our home waters. Designing vessel with superior cargo intake on draught and higher safety is a Stena speciality and there are currently 10 vessels of our 'MAX- concept' contracted to leading oil companies. Working jointly with Sovcomflot on the BMAX is a natural step for us - we share the same commitment to the Baltic Sea." First B-MAX production could start by the end of this year. Arctic LNGCs Stena is also looking at the feasibility of a liquefied natural gas carrier designed to the MAX concept - presumably G (gas) MAX - which Stena claims could save $15,000 per day in operational costs. Norwegian shipowner Leif Höegh has also carried out XI p61-77.qxd 06/09/2006 09:24 Page 14 ICE CLASS SHIPPING REVIEW research into the intended arctic trading conditions for LNGCs, with its findings manifest in the two recently delivered LNG carriers Arctic Princess and Arctic Lady, which were built by Mitsubishi Heavy Industries for the Snøhvit project. One of the most important intended trade routes in the Snøhvit project includes the trading between the loading terminal located at Melkøya, on the North Cape and the North Eastern seaboard of the US. This trade can be regarded as one of the most severe as far as the risk for deck icing and hull damage is concerned. The design assessment for these specialised ships focused on reducing the risk of hull damage, due to Arctic weather conditions; to ensure the safe access to vital safety equipment's, such as the lifeboat, in case of an icing situation; to ensure the safe access to important deck equipment, such as mooring winches, in case of an icing situation; and to ensure the safe operation of the vessel's navigational equipment in case of severe Arctic conditions. As such, the 'winterisation' of the two Snøhvit vessels are, apart from the structural modifications as result of the extended FEM analysis, mainly focused on the deck heating systems. The vessels have a combination of electrical and steam heating systems. The deck heating, located at the mooring areas forward and aft, as well as the manifold area, is produced through large numbers of insulated steam radiators located under the deck plating. Steam heating is also used for the heating of the fly-bridge, but heating of the final access to the tank domes is electrical. Access to lifeboat areas and other safety routes, including access doors, are heated by electrical heating cables. The forward mooring area from accommodation is provided by XII steam heated under deck passage ways on the port and starboard side. The lifeboat and MOB boats diesel engines are also electrically heated. The results of the evaluations, which were incorporated into the design and operational envelope of the 2005-built vessels, include the following features: A hull design modified in accordance to the results of an extensive FEM analysis, performed with a wave spectrum corresponding to the actual trading conditions (the northern part of the North Atlantic). Access heating (deck, door, ladders, etc), designed for Arctic conditions, for various safety routes, to be used by crew in emergency situations. Access heating, designed for Arctic conditions, for the safe access to major deck equipment, as mooring winches, flybridge area, tank domes, etc. High visibility orange coating used on hull topside and tank covers. Enclosed navigating bridge including electrically heated windows and electrically heated exposed navigational equipment. Focus on Arctic operation and navigation through participation in the Tromsø University College, Norway, Arctic navigation programme. Specialised training courses for Arctic conditions such as basic personal care, clothing, nutrition, Arctic impact on safety equipment and mental preparation. Indeed, according to LR's Tustin, it seems likely that exploitation of the giant natural gas fields on the Yamal Peninsula and Yamal offshore in the Western Arctic regions of Russia will further precipitate the development of Arctic LNG shipping. Over the last five years, he said, there has been significant technical development in the LNG and ice-class tanker sectors, such as the introduction of the first large double-acting ice-class tanker designs, development and first orders for large LNG carriers of 200,000 plus cu m capacity and the development gas turbines and the introduction of new dual-fuel electric propulsion systems on LNG carriers. Tustin argued that each technical development, although representing a maturing of earlier research projects, when combined could facilitate and enable the development of viable future large Arctic LNG ship designs for Russian Arctic service. He said that such issues are indicative of the depth of frontend engineering design activity “ of current and projected vessels required, some 4,000 cold climate-trained seafarers will be needed. Most operators of ice-breaking ships have to train their crews themselves, but Russia has expressed an interest in becoming the centre of excellence for ice crew training. The country has special 'ice schools' in Vladivostok and Murmansk; areas that in the severe Russian winter provide the right conditions to train the world's seafarers in ice-ship operations. Indeed, Norwegian classification society DNV, which has a welter of ice-strengthened ship classification experience and has entered into a dual class agreement with the Russian Most operators of ice-breaking ships have to train their crews themselves, but Russia has expressed an interest in becoming the centre of excellence for ice crew training. likely to be required for future Arctic LNG ships and include ice interaction scenarios and direct design approaches; iceclass selection; qualification and risk reduction on application of new technologies; LNG cargo containment system integrity with hull ice interaction; hull structure fatigue strength for extreme wave environments; and winterisation. Skill shortage Another, though less considered safety issue for cold climate operation, is the shortage of skilled ice crews, which according to some, takes as long to train an ice master as it does to train a qualified surgeon in brain surgery - eight to 10 years. A number of ice-class vessels on order are for crews averaging 20 persons, but with the number ” Register of Shipping, believes that a dearth of competent crews will limit safe operation. The head of DNV Maritime's business and marketing department, Wilhelm Magelssen, said the skill and experience of the crew will have a significant and direct impact on the safety level. It is particularly important that crew members are prepared to react and function in the conditions in which they find themselves, he said. When a ship is operating in ice, the major increase in noise and vibration will affect their ability to get proper rest when off duty, and hence reduce their ability to work safely while on duty. The vessel must be truly 'fit for purpose', and have structures and equipment of a material quality that is appropriate for low TO temperatures. Ice Class Shipping Review TANKEROperator September 2006 p61-77.qxd 06/09/2006 09:25 Page 15 ICE CLASS SHIPPING REVIEW Finland’s Aker Arctic continues Arctic ship developments Aker Arctic Technology Inc (AARC) in Finland is owned by Aker Yards together with minority shareholders Wärtsilä, ABB, and Norwegian Aker Kvaerner Engineering, writes Henrik Segercrantz. T he Arctic maritime engineering and R&D company continued the operations of the ice model basin of Masa-Yards Arctic Research Centre (Marc), which followed the first western facility for testing model scale ships in ice, established in Helsinki in 1969. The recent increase of activities in the Arctic, particularly in Russia, has kept the new company busy with design and engineering tasks, ranging from the Arctic shuttle tankers newbuildings at Admiralty Shipyards and Samsung, to various other design and ice model testing tasks of ships and oil rigs and offshore structures for various clients, including shipping companies, leading oil companies, shipyards and authorities, such as the USCG. A new model basin was inaugurated last winter and is now in full operation. It has a length of 70 m (old: 77.3 m), width of 8 m (6.5 m) and a depth of 2.2 m (2.3 m). The width of the new basin was increased to allow better possibilities for modelling of offshore operations. Typically, such model tests included docking trials of ships with icebound offshore platforms, or oil or gas loading structures to test the ship design, or the design of the caisson or both. Along the entire length of the basin floor there is a September 2006 A model of Stena's B-MAX in the new test basin. glass window, to allow unobstructed visual data gathering. In its daily work, AARC can rely on the fact that there is no other facility in the world with such a large full-scale test correlation database, which is the one most important asset for correctly predicting real world physics from model testing. AARC's track record includes some 200 full scale field tests and expeditions, 300 model test series and 160 published papers at conferences and in journals. The facility uses its own developed fine-grain model ice, which has proven to provide the best Ice Class Shipping Review TANKEROperator existing physical and strength scalability with different and varying real ice conditions in the Arctic, Baltic, rivers and in the Antarctic. In addition to the Russian Arctic shuttle tanker projects already mentioned, recent work by AARC included the development of the Arctic container vessel Norilskiy Nickel, the double-acting icebreakersupply ship FESCO Sakhalin, development and testing work of the US Coast Guard Great Lakes icebreaker Mackinaw. Current work includes a project for Houston-based Frontier Drilling USA, which is modifying its drillship Frontier Discoverer to suit operation in the Beaufort and Chukchi Seas. AARC is undertaking the conceptual design of the hull form and protection of the riser, and assisting in developing an ice management plan involving several icebreakers. Another task, for Shell Exploration & Production, is a feasibility study of refurbishing and converting the drilling platform Kulluk with own propulsion. Shell last year acquired Kulluk for its planned 2007-2009 summer exploration drilling campaign in the Beaufort Sea. TO XIII p61-77.qxd 06/09/2006 09:25 Page 16 ICE CLASS SHIPPING REVIEW Russian Register helps develop Polar Rules Ships operating in the Russian Arctic prefer to have RS ice class A s befits its geographical status, the Russian Maritime Register of Shipping (RS) has been actively involved in the development process of the Polar Ship Rules, substantially contributing to ice strengthening aspects. This work formed the basis for the current IACS studies. DNV, LR and RINA. However, ships operating in the Russian Arctic prefer to have the RS Ice Class, the register claimed. Most class societies' ice rules are based upon the Finnish/ Swedish rules, but the Register said that it had a different approach, which is a combination of the research developments and practical experience gained from investigation as it was not covered by the requirements. The ice load distribution on the stern area required more work to be undertaken, as well as the response on the structure of the AZIPOD induced forces. RS has a highly qualified team of specialists who are involved in updating the rules and guidelines at the same time “ Most class societies' ice rules are based upon the Finnish/ Swedish rules, but the Register said that it had a different approach, which is a combination of the research developments and practical experience gained from Arctic operations. RS said it is open for further co-operation with classification societies, governmental bodies and international associations with a view to improving the requirements currently available. At the same time, the national regulations as laid down in the register's Ice Rules as a minimum safety standard for ice class ships to follow that are operating in Russian waters will be kept. Dual class arrangements are already in place with GL, ABS, XIV Arctic operations. The organisation is involved in classing the newbuilding double acting tankers (DAT) currently under construction at the Admiralty yard in St Petersburg. They will be designated RS LU6 Ice Class. The Register said a few challenges were faced at the design stage pertaining to the stern section where the azimuthing AZIPOD thrusters were to be fitted. The newly designed stern section needed further ” paying attention to complying with the requirements of international standards on maritime safety and environmental protection. Both model and operational testing research is carried out by the Register in co-operation with Russian research institutions. To give an idea of the scale of the research, 295 researchers, two correspondent members of the Russian Academy of Sciences, 63 professors and 105 doctors are today members of the RS Scientific and Technical Council chaired by the Register's director general Nikolay A Reshetov. RS has a history of looking after ice class vessels. Since the early 1970s, the Register has handled literally hundreds of ice class vessels, some of which are still trading. Most of the high ice class vessels, including icebreakers, built for the northern sea route are Russian flag. Today, the Register is looking forward to the further development of the Russian ice class tanker fleet to meet the growing demand of safe energy transportation in low temperatures. RS has produced a series of papers on the current requirements for vessels sailing in ice conditions, which were presented at the second Arctic Conference held in St Petersburg last April. The Register chaired the conference. The organisation said that these papers pointed to the need for uniform requirements for Arctic vessels. The Register publishes a magazine - Transactions - on an annual basis. Last year's edition contained papers entitled 'Methodology of Assessment of Equivalency of Existing Ice Classes', 'Domestic Welding Materials for Welding of Structures Operating in the North' and 'Promotion of ColdResistant Welded Steels TO Manufacture'. Ice Class Shipping Review TANKEROperator September 2006 p61-77.qxd 06/09/2006 09:25 Page 17 p78-81.qxd 06/09/2006 09:11 Page 1 ICE CLASS SHIPPING REVIEW Arctic tanker technology Arctic ship technology has been developed in Finland for decades and new improved products have been introduced in the market on a regular basis. The latest developments, which have helped to drastically improve the efficiency in icebreaking, are related to the so-called 'double-acting' ship (DAS) technology, which was introduced in the early 1990's by Kvaerner Masa-Yards, now Aker Yards, Helsinki. Henrik Segercrantz looks at the latest newbuilding projects. T he ship application where the vessel could in continuous mode penetrate ice using the stern first approach and using the traditional bow for open water and light ice conditions, was made possible by the development of the azimuthing propeller-rudder device, called Azipod. Azipod was developed by the yard and its Arctic Research Centre in Helsinki, together with ABB in Finland. The Azipod drive has the electric motor inside the propeller hub. In really heavy ice conditions, the electric drive with its beneficial torque curve is the only practical propulsion motor and the idea of placing it in an azimuthing device gave the shipbuilders new possibilities. As a result, manoeuvrability is drastically improved and the ships resistance in ice much reduced. The double-acting ship technology was developed by the Arctic Technology Centre in Helsinki, today Aker Arctic Technology. Norilskiy Nickel sets the path carriers, the Uikku and Lunni were converted to Azipod propulsion. They also operated in the Russian Arctic, carrying gascondensate from Ob Bay. In 1997, Uikku was also the first non-Russian vessel in modern times to sail through the entire North-east Passage. The latest vessel, and the first newbuilding reference of an Arctic cargo vessel where the double-acting principle has been utilised, is the 14.500 dwt Arctic container vessel Norilskiy Nickel, delivered in April this year by Aker Yards Helsinki to Russian mining company MMC Norilsk Nickel. She operates between Dudinka on the Yenisey River and Murmansk on a year-round basis. The ship is part of an investment programme of a fleet of five new ships, by which the owner can minimise its dependency of expensive icebreaker assistance in its exports of nickel semiproducts. Four further sistership newbuilding orders were recently placed at Aker Yards by MMC Norilsk Nickel for Eur320 mill. The order also includes an option for a fifth vessel. The first tanker newbuildings built to the DAS concept, were two 106,000 dwt crude oil carriers for Neste Oil Corp, Tempera and Mastera, built in 2002 for Baltic trading. In the 1990's, two 16,000 dwt products Double-acting Arctic tankers Tanker operators focusing on Arctic traffic have followed the successful operations of Norilskiy Nickel with interest, as XVI did the Russian Maritime Register of Shipping, to which class the ship was built. Current shipping projects for the Russian Arctic include the shuttle crude oil carriers under construction for carrying the oil from Gazprom's Prirazlomnoye oil fields 60 km offshore in the eastern Barents Sea, plus the planned oil exports from the joint onshore oil fields of Lukoil and ConocoPhillips through the offshore loading facility at Varandei, on the coast of Pechora Sea. Sovcomflot has received the order for shipping the oil in both these projects and is building two shuttle tankers for Prirazlomnoye at Admiralty Shipyards in St Petersburg and three shuttle tankers for the Varandei traffic at Samsung in Korea. These ships are part of Sovcomflot's fleet investment programme, estimated by the company to be worth $920 mill for years 2006-2009. Varandei terminal The potential oil reserves of Lukoil's and US ConocoPhillips' joint venture oil field development in the Russian Timan-Pechora region are estimated at up to 10 bill barrels. Crude transportation from the Varandei terminal is to be increased to 12 mill tonnes per year (240,000 barrels per day) in 2007 and to reach a projected annual maximum of 16 mill tonnes in 2013. Varandei already has a 3 mill tonnes per year terminal with 65,000 cu m onshore storage capacity. Lukoil started crude oil exports from the terminal about five years ago, loading the oil cargo offshore on board 20,000 dwt shuttle tankers, by-passing the state pipeline monopoly and preserving the high quality of the crude. Due to shallow water in the area, the oil is loaded on the tankers from an offshore oil platform. In October 2005, Lukoil revealed that Samsung would soon receive an order for three 70,000 dwt (525,000 barrels) shuttle tankers for Varandei exports. A fourth vessel was believed to be planned once the company boosts production in the Timan-Pechora oil province. In November 2005, Naryanmarneftegaz, the joint venture company, signed a 20year-long contract with Sovcomflot for the oil transportation from Varandei using three 70,000 dwt shuttle tankers. Oil deliveries are to begin from late 2007. A day later, Sovcomflot revealed that it had placed an order for the three 70,000 dwt tankers at Samsung. The value of the contract, according to the South Korean builder, is $430 Ice Class Shipping Review TANKEROperator September 2006 p78-81.qxd 06/09/2006 09:12 Page 2 ICE CLASS SHIPPING REVIEW Sovcomflot is building three Arctic shuttle tankers at Samsung for exports of crude oil from the Varandei terminal. Aker Arctic Technology assists the shipyard with the design. mill. The delivery of the vessels is scheduled for December 2007, April 2008 and March 2009 respectively. An export insurance MOU with Korea Export Insurance Corporation was recently signed by Sovcomflot. Technical data The DAT crude oil tankers are intended for an independent shuttle operation to Murmansk, and probably also elsewhere. They will be built to ABS class except the hull, which is built to Russian Maritime Register of Shipping ice class LU 6. The tankers will fly the Russian flag. They will be equipped with an Azipod propulsion system, a dynamic positioning system, a helipad and an Arctic bow loading system. The total length is 256 m, length between perpendiculars is 234.7 m, breadth 34 m, design and scantling draught is 14 m and the depth is 21 m. Samsung will work under a co-operation and licence agreement with Aker Arctic Technology, according by which Aker Arctic will support the builder in designing and constructing the vessels. The main diesel-electric machinery comprises two dieselalternators sets of 11,200 kW each plus one 4,200 kW dieselalternator. In addition there is one 1,000 kW harbour generator and a 640 kW emergency generator. They will each receive twin 10 MW Azipod drives. In addition to the Azipod propulsion units, ABB will deliver the main alternators (two 13,180 kVA and one 4,940 kVA), main 6.6 kV switchboard, two 11,700 kVA propulsion transformers, two ACS6000 frequency converters for the propulsion drives, distribution and propulsion excitation transformers, propulsion control and remote control systems, to each vessel all built to ABS class. The Azipod units are built to RMRS LU6 ice class. In order to facilitate dynamic positioning, the vessel is equipped with one 2000 kW CPP-type tunnel thruster forward. The system voltages are AC 6,600V/440v/220V 60Hz. Cargo tank capacity in the 70,000 dwt ships will be 85,300 cu m, including slops. The ballast water capacity is 38,000 cu m, while the HFO capacity is 3,500 cu m, diesel oil capacity 200 cu General arrangement of Sovcomflot's newbuildings for the Varandei oil export traffic. September 2006 Ice Class Shipping Review TANKEROperator m and fresh water capacity 400 cu m. Both tanks and underwater hull will receive epoxy coatings. Cargo in two segregations can be carried. There are 10 sets of 800 cu m per hour x 135mlc deepwell cargo pumps and two sets of 400 cu m per hour x 135mlc deepwell slop pumps. The installations comprise a series of loading, slop oil tank and ballast deepwell pumps by Dutch company Marflex, linked to a series of variable drives by Siemens. Their power varies between 220 and 390 kW and capacities between 400 and 2,500 cu m per hour. Cargo heating is attained by stainless steel heating coils. The water ballast system is arranged in two main lines, with two sets of 2,500 cu m per hour x 25mlc deepwell pumps. Steam is generated with two sets of two tonnes per hour, plus one set of one tonne per hour exhaust gas economizers and two sets of 15 Arctic Shuttle Tankers for Varandei Principle Particulars Owner Sovcomflot Builder Samsung Heavy Industries Type Arctic (double hull) shuttle tanker Delivery Hull No 1660: December 2007 Hull No 1661: April 2008 Hull No 1662: March 2009 Contract value, approx $430 mill ($144 mill per ship) Flag Russian Federation Loa 256 m Breadth, mld 34 m Depth, mld 21 m Draft, mld 14 m Deadweight 70,000 dwt Service speed - open water 16 knots - in ice (thickness 1.5m) 2 knots Cargo/slop tanks number 10/2 Cargo holds and slop tanks 85,300 cu m Unloading rate 10,000 cu m per hour Main engines Wärtsilä two x 16V38 / 1x6L38 Main generators ABB two x 13,180 kVA and one x 4,940 kVA Output Max 27,550 kW Fuel consumption 189 g/kWh Propulsion system 2 x 10,000 kW Azipod units Bow thruster 1 x 2,000 kW Dual classification under the Register of Shipping of Russia (hull) and ABS class: KM +LU6 1A1 "Oil Tanker" (ESP) with exclusive approval for the shaft power /+A1(E), Oil Carrier, SH, SHCM, +AMS, +ACCU, VEC, SPM, NIBS, ESP, B1, B1, Baltic Ice Class Equivalent to RS Ice Class LU6 Ice Breaking Tanker XVII p78-81.qxd 06/09/2006 09:12 Page 3 ICE CLASS SHIPPING REVIEW tonne per hour auxiliary boilers. The bow loading system, supplied by Aker Kvaerner Pusnes, has a capacity of 10,000 cu m per hour and is of a type first delivered in 2005, to five shuttle tankers for ExxonMobil's Sakhalin project. The vessels, pipelines and equipment will be built for air temperatures of -40 deg C to +30 deg C with an extreme temperature of -45 deg C. Insulation covering and heating is available and anti-icing of escape routes and life saving appliances is also possible. They will be capable of operating in winter through 1.5 m of solid level ice, both moving ahead and astern, without the assistance of icebreakers, with a minimum contracted speed of two knots. The open water service speed is about 16 knots. A bi-directional navigation bridge will receive integrated navigation system an ECDIS, an ice navigation radar and a night vision camera. The antenna domes are temperaturised. The external communication system is of GMDSS(A3)-type. L-2 Valmarine supplies the automation systems for the vessels. The complement of the vessel, accommodated in the deckhouse, is 36 persons plus space for six Suez Canal crew. Prirazlomnoye shuttle tankers Prirazlomnoye is the pilot offshore project on the Russian Arctic shelf. The construction of the offshore oil field has been delayed several times, but the steel/concrete platform fitted with a converted Hutton TLP topside, under construction at the Sevmach plant in Severodvinsk, is expected to be towed to the 20 m deep site in 2007. The operator is Sevmorneftegaz, a subsidiary of Gazprom. The project cost estimate was recently raised by Sevmorneftegaz to $1.6 bill. The platform provides storage of XVIII 109,000 cu m of oil prepared for transportation, which complies with five-six day's capacity during maximum extraction period. Production during the 25year project is planned for 74.6 mill tonnes of oil with annual production to peak at 7.55 mill tonnes. In December 2004, Admiralty Shipyards (Admiralteiskiye Verfi) and ZAO Sevmorneftegaz signed the original contract to build two 70,000 dwt ice-class tankers, to Aker Arctic Technology design, for the Prirazlomnoye field. The tankers, intended for shipping oil from the Prirazlomnoye field to the Belokamenka floating storage and offloading tanker in the port of Murmansk, were originally to be Artist's impression of the 70,000 dwt Arctic shuttle tanker, loaded with Prirazlomnoye oil, leaving the production platform stern first. delivered in 2007. In August 2005, Aker Arctic Technology, the holder of the 'double-acting' licence, signed the design and technology licensing contract with Admiralty Prirazlomnoye Arctic shuttle tankers Principle Particulars Owner Sovcomflot Builder Admiralty Shipyards Type Arctic (double hull) shuttle tanker Delivery Hull No 2750: April 2009 Hull No 2751: August 2009 Contract value, about $123 mill Flag Russian Federation Loa 257 m Breadth,mld 34 m Depth,mld 21 m Draft,mld 13.6 m Deadweight 70,000 dwt Service speed - open water 16 knots - in ice (thickness 1.2 m) 3 knots Cargo/slop tanks number 10/2 Cargo holds and slop tanks 86,700 cu m Unloading rate 10,000 cu m per hour Main engines Wärtsilä four x 6L46C Output Max 26,000 kW Fuel consumption 74 g/kWh Propulsion system 2 x 8,500 kW Azipod units Bow thruster 2 x 2,000 kW Dual classification under the Register of Shipping of Russia and Lloyd's Register: KM+LU61A1"Oil Tanker"(ESP) / + 100A1 Double Hull Oil Tanker, ESP, ShipRight (SDA, FDA, CM), Ice Class (RMRS LU6), LI, +LMC, UMS, NAV1, IBS, ICC, Centralised Operation Station for Liquid Cargoes, DP(AA), VECS, EP(P), ShipRight (PCWBT), BLS, SPM, Helicopter Landing Area, Winterisation D (-40), IFP Shipyards. In October 2005, Sovcomflot signed an agreement with Gazprom and its subsidiary Sevmorneftegaz to ship the Prirazlomnoye oil, which is expected to be a maximum of 6.5 mill tonnes of oil produced per year (133,000 barrels per day), starting at the end of 2007, or early 2008. In May this year, a new shipbuilding contract was signed with Admiralty shipyards, with Sovcomflot, for the two Arctic shuttle tankers intended for shipping oil from the Prirazlomnoye field. In late June, Sovcomflot and Sevmorneftegaz signed a 25-years time-charter contract, based on the co-operation agreement of October 2005. Transportation of the oil to the floating storage and offloading system (FSO) in Murmansk is scheduled to begin in 2008. The delivery dates of the two vessels from Admiralty Shipyards are thought set for April and August 2009 and the reported price per ship is $123 mill. Technical data The ice-class 70,000 dwt doubleacting (DAT) tankers (Hull Nos 2750/2751) will have an overall length of 257 m, a moulded breadth of 34 m and draught 13.6 m. The height of the hull is 21 m. A diesel-electric power plant consisting of four main dieselgenerators comprising four Wärtsilä 6L46C main engines each connected to an alternator Ice Class Shipping Review TANKEROperator September 2006 p78-81.qxd 06/09/2006 09:12 Page 4 ICE CLASS SHIPPING REVIEW will be fitted. The total power will be 26 MW supplying propulsion power of 17 MW for a pair of 8,500 kW Azipod propulsion drives. The vessels will receive two 2,000kW bow tunnel thrusters each. Flying the flags of the Russian Federation, the tankers will be built in compliance with the Rules of dual classification under the Register of Shipping of Russia (for hull and Azipod propulsion) and LR. They will be assigned LU 6 ice class (1A Super in accordance with international classification). The shuttle tankers will receive a dynamic positioning system, a helipad and a bow loading system designed for the specifically demanding Arctic conditions in the area. The tankers are contracted to operate year-round in 1.2 m thick ice without the need for an icebreaker escort, with a continuous speed of three knots. The speed in open water is 16 knots. The Prirazlomnoye area is typically ice-free for 110 days of the year. The annual average temperature is -4 deg C but can drop at times to -50 deg C and the level ice can reach a thickness of up to 1.7 m, whereas rubble ice fields can be some 20 times thicker. The tankers will be fitted with 10 cargo tanks and two slop tanks with a total volume of 86,700 cu m. The cargo handling capacity is 10,000 cu m per hour. Sovcomflot is also building a series of 47,000 dwt products carriers at Admiralty Shipyards. Contracts were signed last spring to increase the current series to nine vessels. The seventh and the eighth tankers will be delivered in 2007 and the delivery of the ninth vessel will take place in 2008. TO operator, Armement Fouquet Sacop for an en bloc $21 mill, while the larger Gas Courchevel, (ex Fernando Clariana), built in 1991 and of 4,280 cu m, is ice class 1C and was purchased from Lauritzen Kosan A/S, in late 2004 for $11 mill. The market for ice class LPG ships of this size is an extremely small one and three units makes StealthGas a prime player in a sector. Having said this, Vafias admits the Gas Arctic and Gas Ice have not traded in ice since they were purchased. "They have been on charter to Italians and working in the coastal trades," said Vafias. "The charters run to 2008 and 2009 and we will see what happens then," he explained. Indeed, he said the Gas Arctic and Gas Ice are very flexible in that they are strong ships "built by Appledore [Shipbuilders] of the UK". The Gas Courchevel, commissioned from Spain's SA Juliana Constr Gijonesa, has been trading in the Baltic region for the past nine months, prior to that she was on charter to Dow Chemicals trading in South America. "The charter is nearing an end but we would like to keep her up there as the winter season is soon to start. Of course future employment and where she trades depends on the charter rates available," said Vafias. "There is great demand for this type of ship which is larger than the typical ice class LPG carrier. Her size allows the charterer to top-up with another 1,000 cu m." Vafias said the attraction of the ships is their flexibility as they can trade in most environments and "we are confident there will be a demand for them" just as there will be for all the ships in our fleet. StealthGas is not hunting to buy more ice class ships, but is keeping an eye out for any LPG ships that may come on to the market. "While not specifically chasing ice class tonnage we're aware there are in fact none for sale that hold an interest for us in the size we are looking for," said Vafias. "We are always watching the secondhand market just as we always strive to ensure the requirements of our clients are met," he said. A larger fleet is doing the job for StealthGas. The company has just reported lifting second quarter 2006 profits by some 64% despite a three-fold increase in expenses. Net income for the three months ended June 30, 2006 was $4.6 mill on voyage revenues of $17.2 mill. Second quarter 2006 expenses rose to $11.7 mill from the $3.8 mill in the corresponding period last year, while ship operating expenses more than doubled from a year ago to $4.7 mill, and depreciation costs almost trebled to $3.1 mill. "Our operations in the second quarter were affected by the softness in the spot market coupled with more extended drydockings," said Vafias. However, he said the company has since increased the fixed period employment of our fleet to 81% of our operating days for 2006 and to 43% for 2007. For the first six months period, StealthGas said revenues amounted to $34.2 mill, while net income was $11.6 mill in 2006 compared with revenues of $11.7 mill and net income of $4.5 mill in the 2005 period. The results impressed Cantor Fitzgerald analyst Natasha Boyden who is predicted future earnings for StealthGas should "benefit from a stronger than average LPG rate environment, given the company's period charter strategy and aggressive expansion programme". Boydon also noted that "following delivery of all 28 vessels, the company still maintains a moderate long-term debt to total capital ratio of 46%, leaving room to make further acquisitions". Even if no additions are made in the s&p market, Brave Maritime, StealthGas' affiliated company has ordered eight LPG newbuildings for delivery in 2008/2009, four ships in Japan and four in at Romania's Severnav shipyard. TO Stealth on Ice The intentions of the ambitious Nasdaq-listed, Athens-based StealthGas to cover the entire needs of the gas market sector in ships of up 8,000 cu m were clear early on and have been well documented, writes David Glass. Prior to becoming the first pure LPG owner to float in the US, the Harry Vafias-driven company was building its fleet and pre-IPO, StealthGas, established November 2004, operated nine LPG carriers, including three ice-class ships purchased end-2004/early-2005. In the scheme of things, the $32 mill invested in acquiring the three 1991/1992 built doublehull/semi refrigerated units is considerably more than the average $7.86 mill per ship spent on building the 28-ship fleet, underwritten by the $116 mill raised by the IPO in October 2005. In all, StealthGas has paid around $220 mill (excluding newbuildings controlled by affiliates) developing a fleet ranging in size from 1,600 cu m to 8,000 cu m, ranking it first in the world in the 3,000 to 8,000 cu m sector. The 1992-built Gas Arctic (ex Cap Anne), and Gas Ice (ex Cap Patricia), built 1991, are both of 3,200 cu m capacity and ice class 1B. The pair were purchased from French coastal September 2006 Ice Class Shipping Review TANKEROperator XIX p82-83.qxd 06/09/2006 09:17 Page 1 ICE CLASS SHIPPING REVIEW B Looking back in time* ack in 1969, an ABSclassed 1962-built twin screw 115,000 dwt tanker Manhattan was rebuilt to undertake two unique passages through the Northwest Passage. One of the main reasons for the experiment was that oil had been discovered at Prudhoe Bay on Alaska's North Slope a year earlier. This privately funded project, estimated at $54 mill, involved four shipyards, an international team of experts and three oil majors. Once oil had been discovered, Humble Oil, a subsidiary of Esso, (now Exxon) sparked a national debate whether to transport the oil from Prudhoe Bay by pipeline or by specialised ice breaking tankers. It was decided to convert the Manhattan, which had been built during the changeover from empirical, experienced-based design to first principals engineering aided by the new fangled computer. As ABS put it, 'the ship combined the daring size of the future with the conservative robustness of the past.' Esso provided the primary financial backing with BP and Arco supplying additional funding for the project. She was built by Bethlehem Steel and was fitted with a steam turbine propulsion system giving 43,000 shp, meaning she had considerably more horsepower per deadweight tonnes than any other commercial vessel afloat. Its short tank length gave the tanker a substantially greater rigid structure than was found in more modern designs. Her scantlings were so heavy that the bottom plating, deck and XX The concept of ice class tankers is not new. upper hull structure were of normalised, or heat-treated steel, which by nature had very favourable low temperature characteristics. the Manhattan for Arctic trading. Only one shipyard, Sun Shipbuilding of Chester (Pa) was willing to take on the conversion work. This had been tendered Iron Works. All the work was undertaken under the watchful eye of ABS' surveyors. In addition, transverse bulkheads were strengthened by adding doublers, installed in way of the welded connections of Way ahead of its time, Manhattan breaks the ice. Photo credit - ABS In December 1968, a team from Wärtsilä approached Esso and offered to share everything they new about ice breaking technology. At that time Wärtsilä was the world leader in this particular sphere having built 60% of the world's icebreaking fleet. This experiment lasted for 20 months. Wärtsilä advised on the project at virtually every step from vessel conversion to testing and finally to the modelling and design of future ships for transiting the Northwest Passage. When the project was approved very little was known about the extent of work needed to convert only as 'extensive modification' requiring the strengthening of the hull and the installation of an icebreaking bow, propellers and rudder protection. The project proved so big that to complete within the set time frame, Sun suggested that four shipyards be used, thus: The 493 ft aft section remained at Sun for modification. The 122 ft forward section was taken by Newport News. The 264 ft mid-body went to Mobile's Alabama Dry Dock. The icebreaking bow was built in two sections - one at Sun and the other at Bath horizontal girders, while heavy I-beams were placed at every web frame across the width of the ship. A 9ft-wide sloping steel belt, similar to a large triangular blister in shape, was added to the Manhattan's sides to increase strength and to deflect the deadly pressure ice typically found in the region. The ice belt actually came in useful during the second transit when the sloping sides caused the ice boulders to fall back and away onto the ice flows. Other modifications included the fitting of a helideck; the renewal of the shafting with higher strengthening materials; Ice Class Shipping Review TANKEROperator September 2006 p82-83.qxd 06/09/2006 09:17 Page 2 ICE CLASS SHIPPING REVIEW Manhattan's unique icebreaking bow paved the way for icebreaking technology. Photo credit - ABS the attaching of a shearing coupling to protect the lowpressure turbine rotor against the shock of ice loads; installing underwater rudder guards and higher strength propellers; building a double hull for the machinery and steering gear rooms; reinforcing the machinery for extra stability; and installing a special 'liquid phase' heating system to circulate heated oil to warm the deck machinery. Every modification was proved to be necessary during the transits. The most distinctive feature of the 'new' Manhattan was her new bow. It was a design that had not seen the light of day before, but still influences icebreaker design today. Its forepart was sloped by 18 deg, curving gently down to her bottom where it was plumb. Another innovation adopted following the successful Manhattan project was for forward shoulder, which was the area where the bow section met the ship's parallel body. It was made several meters wider than the hull to cut a wide swathe through the ice and reduce friction on the vessel. When this system was adopted on later September 2006 icebreakers, it was called a reamer. On her first 4,400 mile voyage in the late summer of 1969, Manhattan had 126 people on board, of which 45 were crew. The rest were mainly scientists, journalists and politicians. The Polar pack ice can exceed 3 m thickness. It drifts around in vast floating plains, which can be miles across. As they crash into Manhattan broke through thicker ice than any other ship before her. She carried no cargo on her first voyage. However, her tanks were filled with water to simulate a laden tanker. Esso then sent the vessel on a second transit the following April to test her against Arctic Winter ice. Unfortunately, she encountered very thick ice, which she could not break through into the Northwest “ This programme proved conclusively that it would be technically and commercially feasible to undertake year round transits by tanker through the Northwest Passage one another, the floes form huge rubble hills and undersea ridges, some of which can reach 30 m deep. To pass through this type of ice, a traditional icebreaker rams, rides up and breaks through by pressing down on the ice. By using this method, Ice Class Shipping Review TANKEROperator ” Passage. Instead, she went to Pond Inlet, near the top of Baffin Island, where icebreaking tests were conducted to gather additional data. During the voyages, Manhattan was fitted with all kinds of instruments with strain gauges throughout the hull and the most up-to-date electronics available at the time. They were housed in a container on deck. Following the voyages, a model of the Manhattan was built in Wärtsilä 's new ice model basin. This was constructed specifically to support the whole project but became instrumental in Finnish/Soviet co-operation on the subject of ice technology. Voyage data was compared with the model tests and calculations to calibrate the basin and its test results were later used by Wärtsilä and Esso to design further ice class tankers. This programme proved conclusively that it would be technically and commercially feasible to undertake year round transits by tanker through the Northwest Passage. However in 1970, the experiments were suspended in favour of a pipeline solution for the export of North Slope Oil. As for the Manhattan, she was originally built for Niarchos and when delivered in January 1962 was the largest ship afloat. However, as happened in those days this distinction didn't last long as the world's tanker fleet got bigger and bigger, both in terms of numbers and size of vessels. Apart from carrying crude oil, she was even used to lift grain aid cargoes in the mid 1960s often to Bangladesh. Following her Arctic adventures, she returned to the grain trades for several years until she returned to Alaska in 1977 to load at Valdez for the west coast US refineries. However, she came to an untimely end in 1987 when a typhoon drove her aground in the Far East and she was scrapped still sporting her distinctive ice breaking bow. *This article was written with reference to ABS' Low Temperature Operations - Polar Class Guidance pamphlet and to Intertanko's TANKER newsletter, January 2000. TO XXI p84.qxd 06/09/2006 11:40 Page 1 Digital Ship and TANKEROperator have organised five conferences during SMM at the Hamburg Congress Centre on 27th and 28th September, 2006 Wednesday 27th September Digital Ship will be presenting a day long conference entitled Maritime Satellite Communications, chaired by Chris Courard, an independent maritime communications consultant. Running simultaneously will be another Digital Ship conference with the theme of Systems and Software for Seafarers. This will be chaired by LR's principal human factors specialist Jonathan Earthy Meanwhile, TANKEROperator’s conference will take a look at LNG Shipping Operations under the chairmanship of Kirsi Tikka, ABS' vice president special projects. Speakers include: Damian Harrington, maritime marketing manager, Inmarsat Brent Horwitz, Maritime Telecommunications Network Mary Ellen Kramer, Broadband Maritime David Walker, Livewire Connections Frode Stensaa, Virtek Don Black, SeaWave Victor Barendse, Wired Ocean Stephen Brunskill, Altobridge Jan Erik Norli, MCP. During the evening, Inmarsat will be hosting a party for all speakers and delegates. Speakers include: Stephan Polomsky, deputy managing director, Essberger Simon Gaskin, UK Royal Navy Capt Margareta Lutzhoft, Swedish National Road and Transport Research Institute Prof Brian Sherwood, Lloyd’s Register Erik Styhr Petersen, Lyngsoe Nick Webb, UKHO Dimitris Lyras, Ulysses Systems Speakers include: Joachim Bakke, BW Gas Iain Campbell, V Ships Sunit Das, Anglo Eastern (UK) Per Sunden-Cullberg, LNG Shipping Solutions Tore Lunde, Hamworthy Gas Systems Bob Watson, Rolls Royce Mirella Zalar, Bureau Veritas Jan Koren, DNV Yung Sup Shin, ABS. THURSDAY 28TH SEPTEMBER TANKEROperator's conference takes the theme of Ice Tanker Operations, which will be chaired by GL's Seppo Liukkonen. Digital Ship's conference takes the theme of Reducing Fuel Costs. It will be chaired by Dr Zabi Bazari, LR's principal consultant engineer. Speakers include : David Sharp, Unicom Management Services Mikko Niini, Aker Arctic Technology Ilmari Aro, Finnish Maritime Administration Atso Uusiaho, Ice Advisors; A speaker from the Admiral Makarov Training Academy; Robert Bridges, Lloyd’s Speakers include: Dr Pierre Sames, GL Jan Erik Granhodt, DNV Per Sorensen, MAN Diesel John Miele, Micad Marine Daniel Kane, Propulsion Dynamics Register Morten Mejlender Larsen, DNV. There will also be a paper presented on Arctic Tanker Design, written jointly by Samsung's Hoseong Lee and Jae-Woong Choi, plus Vladimir I Evenko from the Russian Register and read by Dr Kirsi Tikka Dimitris Theodossiou, Danaos Management Consultants Lasse Wallerstedt, Transas Scandinavia. For more information see www.thedigitalship.com p85-92.qxd 06/09/2006 09:29 Page 1 FOCUS ON GERMANY German investment boom There is a definite smile appearing again on the faces of German shipowners and operators. Although registering vessels at home is still not without its problems, the huge investment funds available and the Government's generally helpful attitude towards the tonnage tax system are paying dividends, despite the possibility of another review being on the cards. E xamples of German expansion in the tanker sector include, a leading Greek concern setting up shop on the banks of the Elbe, albeit in a joint venture; Ahrenkiel moving most of its key functions back to Hamburg from Limassol; while Cypriot-owned Interorient now has a large presence in the city, which is due to get even larger in the near future on the back of expansion plans. These initiatives would have been unheard of even a couple of years ago. Although there are some large crude oil tankers controlled and September 2006 z managed by German interests, most notably Dr Peters/DS Schiffahrts, it is in the smaller chemical, products and LPG sectors where much of the investment is taking place. Even LNG has found a niche with Pronav. Funds looking for a home The popular German 'KG' financing scheme whereby a group of shareholders join together to own a ship through a finance house traditionally found favour with Germany's massive build up in the containership TANKEROperator market. However, this particular market has slackened off and the fund houses, which are generally awash with money, are looking for other outlets to invest in, such as the tanker/gas sector. Most operators spoken to by TankerOperator used the scheme to build up or replace their fleets. The one stipulation to qualify, is that the management company needs to be resident in Germany. Given the German Government's current positive attitude to shipping, this does not pose a problem for them. One commentator said that the current cross-party agreement on shipping is a good thing as no matter who is in power, the parties will still agree a policy and stick to it. According to local analysts Scope Group, the volume of ship equity placed by Germany's KG houses kept stable this year despite earlier fears of a drastic slowdown, the company was recently reported as saying. Half-year figures produced by the analyst show that while the number of KG shipping funds dropped by 36% year-on-year, equity volumes remained littlechanged at just below Eur3 bill. Illustrating the ongoing 61 p85-92.qxd 06/09/2006 09:29 Page 2 FOCUS ON GERMANY investment in the liquid bulk sector, the most recent orders reported include three LPG carriers for Hartmann at Severnav, two 8,250 dwt chemical carriers for Wappen at Damen Shipyards Galatz, eight 16,500 dwt chemical tankers for newcomer TB Marine-Hamburg GmbH and four 17,000 cu m LPG carriers for GasChem Services GmbH at Meyer Werft. Last May, the GasChem Shinano was launched for GasChem at the Severnav Shipyard. She was due to join the GasChem-Gasmare Pool in early August and is the first of a series of four 6,500 cu m gas tankers earmarked for the pool. Meyer Werft was recently the recipient of a two ship order by Harpain Reederei GmbH & Co KG of Hamburg, a joint venture between Harpain Shipping GmbH and Hansa Hamburg Shipping GmbH & Co KG. This marks the second LPG market joint project by the two companies and their investment bankers. Among the other German companies known to be involved in tanker/gas carrier fleet replacements, or expansion programmes are Ahrenkiel, Conti Reederei, German Tanker Shipping, Hanseatic Lloyd, Harren & Partners, Hartmann Schiffahrts, Konig & Cie, Neu Schiffahrts, Rigel Schiffahrts, Bernhard Schulte, Sloman Neptun, United Product Tankers and W-O Shipmanagement. German flag problems The advantage of the German tonnage tax system is that companies can forecast and account for their liabilities well in advance instead of being subject to a fluctuating tax scheme. This particular tax scheme comes under the spotlight each year around December time through an organisation called the National Maritime Conference, which includes representatives of the national and regional governments, shipowners and unions. 62 PricewaterhouseCoopers (PwC) has published a report on the scheme looking at both sides of the argument and the initial findings were positive. The Verband Deutscher Reeder (VDR) (German Shipowners' Association) claimed that the government picked up a bonus of Eur160 mill from the scheme as more ships and shipowners/managers returned and were returning to Germany. PwC is to investigate the scheme again in the near future to check on how it is working. Although the number of vessels controlled by German interests is growing fast, the numbers flying the German flag is declining. There are two major problems. The first is the German law that every master on board a German flag ship should be a German national. This has upset the bureaucrats in Brussels who through the European Court of Justice have come out against it citing freedom of employment. As a compromise, the VDR and the unions have agreed that a master need only speak German and would have to pass a test proving he or she could understand German maritime law. This has been labeled as crazy by several shipowners and managers contacted by TANKEROperator. At present, the VDR is trying to get it written into the German statute books. A spokesman for the VDR said an officer could achieve the necessary qualifications by attending a twoday course after which a certificate could be issued. A master could take the course on board ship by using CD-ROM and on-line tuition. The second problem is that like several other European countries, there is a lack of potential German masters and other experienced seafarers in the pipeline, despite recruitment drives during the past few years. Expertise on board ship and in the office is currently at a premium, the shipowners and managers all agreed. Several new shipping companies involved in the tanker and gas tanker sector have sprung up in the Hamburg/Bremen area during the past 10 years or so, most of which built up their fleets on the back of the 'KG' system. This feature contains interviews with several of the leading concerns, broken down in alphabetical order. Ahrenkiel back on home turf Expanding shipping group Ahrenkiel has consolidated most of its activities back in its original home in Hamburg. Indeed, the 56-year old company is expanding so fast that it has already outgrown its current offices and is rebuilding its former offices at An der Alster where Ahrenkiel will house about 200 employees by the beginning of 2008. The current office at Burchard Street is just an interim measure, the company explained. However, the holding company Ahrenkiel Holding, is based in Berne in Switzerland and is headed by Christian J Ahrenkiel, the second generation owner. During the past few years, Ahrenkiel has expanded its tanker interests from just chemical and LPG to crude oil and products carriers to give the company a broader spectrum, explained joint managing director Christian Suhr. Today Ahrenkiel manages 18 tankers - nine products, seven chemical carriers and two LPGs. Five more 73,400 dwt panamax products tankers are under construction at New Century Shipyard for delivery in 2007. The average age of the fleet is currently 7.13 years. All the vessels are timechartered to first class charterers, while both the technical and commercial management functions are undertaken in the Hamburg offices. The only function now handled from the Limassol office is the recruitment and management of ratings and third party crew management. All but one of the vessels flies the Liberian flag - the exception is a vessel which flies the Luxembourg flag. The masters are eastern European and German while the rest of the crew are Ahrenkiel at a Glance 1950 - Founded by 46-year old Christian Friedrich Ahrenkiel. Acquires its first ship. 1955 - Takes delivery of first newbuilding, a 5,200 dwt 'tweendecker. 1961 - First car carrier enters the fleet - a bulk carrier with removeable car decks. 1971- Enters the containership market, which today is an important string to its bow. In the same year, the first chemical tanker entered service under Ahrenkiel management. 1974 - Opened an office in Limassol, Cyprus, which ran its own vessels and took on third party management. 1977 - Ahrenkiel branched out into the reefer market. 1980 - Supervised the construction of two 133,000 cu m LNGCs at Kockums in Malmo. 1982 - Set up a regular liner service, which was expanded in 1992. 1992 - ISO 9002 certification of the tanker fleet is carried out. 1993 - Upon the death of the founder, Christian F Ahrenkiel, his son Christian Juergen Ahrenkiel took over and since 1997 has been the sole owner and chairman of the group. 2001 - Set up Fonds Haus Hamburg and Fonds Haus Treuhand to finance vessels using the KG system. 2004 - Odfjell Ahrenkiel Europe chemical tanker pool formed. TANKEROperator z September 2006 p85-92.qxd 06/09/2006 09:29 Page 3 FOCUS ON GERMANY eastern Europeans and Philippinos. Ahrenkiel is a believer in cadet training. Suhr explained that the company had a close relationship with the Bulgarian Maritime Academy at Varna and uses training institutions in Manila, Tuvalu and Russia. The crew are trained under the guidance of Ahrenkiel personnel. The company is also a user of the Seagull training and assessment guide and training is given to everyone from the masters to the stewards. Regular in-house seminars are also held, while the company set up a 'no blame' policy several years ago. Pool set up On 1st January 2004, Odfjell Ahrenkiel Europe GmbH was set up as a chemical carrier pool with its base in the Hamburg office. At present, the 50:50 joint venture consists of eight 6,000 dwt parcel tankers and one 8,000 dwt vessel. One of Ahrenkiel's chemical tankers. Odfjell owns five of the vessels. These vessels are the natural size for European trades, the pool's chartering director Olav Naess claimed. One of the main reasons for setting up the joint venture pool was that Odfjell wanted to get a toe hold in northern Europe, having established an Asian fleet and services between North America and South America. "An InterEuropean trade was the next logical step," Naess said. Earlier this year, the company formed another pool, this time with larger units of 19,000 dwt, which were sold by Ahrenkiel to Odfjell with the German partner retaining the management. Ahrenkiel will provide six units into the pool. Ahrenkiel's 6,000 dwt vessels are built to IMO Class II and are fitted with 20 stainless steel tanks each. They are also built to GL Ice Class E3. As most of the vessels are in the chemical trades, the new IBC rules will not affect them, Suhr explained. Suhr said that Ahrenkiel operates well beyond the statutory requirements and in 1992, the ISO 9002 certification was carried out on the then tanker fleet operation, which was one of the first in the world to receive this accreditation. Since then ISO 9001:2000 and the ISM and ISPS Codes have been successfully introduced at the same level across the whole fleet. Ahrenkiel representatives visited Shell last year to discuss the TMSA scheme, while ExxonMobil's affiliate International Maritime Transport energy at work Bominflot is an international company operating around the globe, with almost 30 years of experience in the bunker market. Our business portfolio covers activities ranging from cargo trading to the supply of bunker fuels, lubricants and other services of crucial importance to the shipping industry: at competitive prices. Bominflot imposes strict standards on all its operations, and accepts nothing less. We offer round-the-clock service, whenever and wherever you need us. You can always count on Bominflot at your next port of call. Choose a dynamic partner: www.bominflot.net September 2006 z TANKEROperator Our branch offices: Europe / Africa Hamburg Bremerhaven Kiel Rostock Scandinavia London Rotterdam Madrid Gibraltar Ceuta Las Palmas Malta Athens Tallinn Novorossiysk St. Petersburg Cape Town The Americas Houston New Orleans Delaware Norfolk Buenos Aires Rio de Janeiro Ecuador Far/Middle East Singapore Hong Kong Shenzhen Shanghai Taipei Seoul Mumbai Fujairah 63 p85-92.qxd 06/09/2006 09:29 Page 4 FOCUS ON GERMANY German Shipowners' Association (VDR), is chairman of the Liberian Shipowners' Council and a board member of the German Masters' Association. Responsibility for the commercial side of the tanker business falls on the shoulders of Guenther Elsner. He is described as an expert in chartering and operations for crude oil and related products tankers. He has sat on Ahrenkiel's board since 2003 and reports to joint managing director Frank Westphal. Christian Suhr (IMT) was also contacted. The company will be in a position to give an update by November of this year, Suhr said. By the end of September, all the KPIs should have been defined for each area of operation. Suhr explained that some of Ahrenkiel's charterers are already demanding KPIs on office and vessel performance. To this end, the company has invested in software and has a separate IT department, as well as an emergency response room as laid down in TMSA. To cope with the proposed fleet expansion and to gain access to KG type funding, in 2001 Ahrenkiel founded Fonds Haus Hamburg (FHH) and Fonds Haus Treuhand (trust company). These finance vehicles are also marketed to third party businesses for financing and raising capital and this year entered into real estate. Up to December last year, FHH had raised nearly Eur400 mill equity capital and facilitated an investment volume of around Eur1,000 mill. Suhr explained that Ahrenkiel was looking for opportunities to raise finance both for newbuildings and secondhand vessels. Suhr is a former Ahrenkiel master and is also a qualified master mariner. He chairs the advisory board of GL Certification, is a member of the working committee of the 64 Carl Buttner considers newbuildings One of the oldest German tanker companies, Bremen-based Carl Buttner, celebrated its 150th anniversary in May of this year. The company currently controls eight GL classed IMO Class II chemical/products tankers and two GL classed pure products tankers, which are mainly operating in European waters carrying refined products, such as gasoil, gasoline, diesel and naphtha. Overall there are two companies - Carl Buttner GmbH & Co KG and Carl Buttner Shipmanagement GmbH. Whereas Carl Büttner GmbH & Co KG is responsible for the commercial operation of the vessels and chartering as well as for newbuilding projects, Carl Buttner Shipmanagement GmbH takes care of the technical management for the 10 vessels, which range in size from 12,500 dwt to 24,000 dwt. Managing director of Shipmanagement GmbH, Winfried Schumann told TANKEROperator that the ideal fleet number was between 10 and 15 vessels. He said the company was observing the market before deciding whether to re-enter the newbuilding market. However, he said that further newbuilding activities are likely to materialise by end of this year and will be decided by Carl Buttner GmbH & Co KG. Unlike some of its rivals, Buttner currently has no intention of entering the larger products/chemical tanker markets, but is quite happy with the range of vessels it operates. "We won't go into another market right now as we are settled in the one we operate in", Schumann said. Most of the vessels operate under coas to the oil majors and other 'blue chip' clients, while the remainder are on the spot market. As mentioned, most of the tankers are operating in northern European with occasional voyages undertaken to the Mediterranean. The majority are therefore ice class for Baltic operation. Four of the earlier vessels in the 12,500 dwt to 13,000 dwt range were products of the Lindenau Shipyard, but since 2002, the six larger 24,000 dwt were built at the '3 Maj' Shipyard in Rijeka, Croatia, where Buttner now has considerable influence through its own manning affiliate CB Maritime doo. Indeed, seven of the 10 vessels are manned by Croatians. The larger vessels also have redundant propulsion systems built in. The manning is handled by two companies - the Bremen headquarters and the company at Rijeka, which is fully controlled by Carl Buttner. Cadets are trained on board all the vessels, as the worldwide shortage of qualified tanker officers to operate sophisticated products/chemical tankers is becoming a major concern. Buttner uses German and Croatian nautical schools and training institutions to train its cadets. In total, Buttner has about 260 German, Croatian and Philippino (mainly ratings) seafarers and about 25 cadets on its books. Three vessels fly the German flag, while the other seven are under British registry with homeport Gibraltar flying the Red Ensign. Buttner uses the KG system as well as the normal financial services on offer in The 24,000 dwt Aurora was built by 3 Maj in 2004. TANKEROperator z September 2006 p85-92.qxd 06/09/2006 09:30 Page 5 FOCUS ON GERMANY Carl Buttner at a Glance 1856 - Founded by 25-year old Carl Diedrich Buttner (1831-1913) in Leer as a forwarding and shipping agency. 1879 - Started a steamship business with the 573 gt Stadt Leer. 1892 - Founded branch office in Bremen. 1929 - Carl Diedrich's grandson, also Carl, took over Bremen office and started a fuels and lubes business. 1945 - Following the War, the Buttner family managed to find their bunkering vessel Biene, Germany. As for the TMSA, Schumann claimed the company was around 70 - 80% compliant. Buttner described itself as quite optimistic for the future, but for the main trading area Northern Europe, it does not expect the volume of products transported by sea to grow significantly. All of the technical and commercial operations are conducted in-house. Although international brokers are used, most of the charters are concluded on a direct basis. which had joined the fleet in 1937, on the River Weser, virtually undamaged. 1947 - Acquired the vessel Emsland from the ruling military administration. 1950 - Set up a branch office in Duisburg-Ruhrort to expand the inland waterway operations. 1980s - Dropped inland operations and started on a newbuilding tanker programme. First double bottom 10,000 dwt tankers Butt and Dorsch delivered in 1980. In 1984, the first double hull tankers entered the fleet. vessels are still marketed under their own name from the company's office in Dordrecht. Essberger and Broere contribute chemical tankers in the 2,500 dwt to 6,500 dwt size range. There are also two 8,500 dwt tankers chartered in from Italian interests on a three year timecharter deal. In addition, deputy managing director, shipmanagement Stephan Polomsky confirmed to TANKEROperator that Essberger is in the market for 4,600 dwt Mediterranean. The vessels are chartered to oil and chemical majors, including BP, Shell, Huntsman, Dow Chemicals, Borealis, BASF and DuPont. The charterers have set a 25year age limit on the vessels they employ. One problem for the smaller chemical tanker operators is a change in OCIMF's SIRE vetting form. Previously the form contained boxes, which could be filled in as 'not applicable'. This has disappeared into a straightforward 'Yes/No' format, which Polomsky believed did not put chemical carriers' case sufficiently to potential charterers. "We have a lot of extra work to do to convince charterers of the suitability of our vessels for the business being quoted," he said. Tank cleaning When calling at three ports per day, tank cleaning becomes a very important consideration. On some voyages, three or four parcels of chemicals can be discharged and two loaded simultaneously. In this situation, tank cleaning timing becomes critical. flies the Madeira flag, which is in effect the Portuguese open register. However, one flies the Portuguese flag as it operates in and around the Azores, while another couple are under the German flag. As for the Broere fleet, they are 100% Dutch registered. Essberger's chemical fleet is classed by GL, while Broere's fleet is a mixture of LRS and DNV. Polomsky is a great believer in working with the relevant authorities and shipping bodies and is a council member of Intertanko and sits on the technical committees of both GL and LRS. "If you have a complaint, you need to be proactive," he explained. "You have to be able to influence any decision, if necessary," he continued. Class societies came for some criticism by the way they had become more consultancy led. Polomsky said that they should stick to newbuilding class matters and not get involved in other areas. One class society initiative, which came in for severe criticism was the 3D imaging of vessels' hulls for inspection purposes. "We need to see it (the Essberger in the market for newbuildings Another well established German tanker company is privately owned John T Essberger, part of the Deutsche Afrika-Linien/John T Essberger group of companies. The group is owned by the Essberger/von Rantzau family and Essberger is responsible for the tramp shipping and shipmanagement functions, while DAL concentrates on the liner shipping side of the business. Essberger operates 26 small chemical tankers in the Broere Essberger ChemPool. A couple of years ago, Essberger bought out its pool partner. However, the Dutch controlled September 2006 z Broere was bought by Essberger, but retained its Dutch heritage. newbuildings. All the vessels are of double hull construction and some of the Broere and all of the Essberger vessels are ice class as their main area of operation is in the Baltic and northern European sectors. Occasionally, they trade into the TANKEROperator Essberger does not use heating coils in the cargo tanks but instead opts for heating ducts. In developing the ducts idea, Essberger sat down with the shipyards involved and class society GL. Much of the Essberger fleet hull) live and not in virtual reality," Polomsky asserted. Polomsky also said he was a great believer in keeping the shipping industry self-regulating. For example, he urged the IMO to get on with the Recycling Code, otherwise the EU would 65 p85-92.qxd 06/09/2006 09:30 Page 6 FOCUS ON GERMANY ride roughshod over the IMO with its proposed blanket ban on waste export. "We must keep the EU out of it," he said. Essberger also had several other vessels under various degrees of third party technical management and Polomsky was keen to expand the portfolio without compromising the level of service. The company used to manage eight VLCCs/ULCCs for Vela until 1996 and currently manages two VLCCs for Oslo Shipholding. The company is also currently undertaking the construction supervision of two newbuilding ice class aframaxes -Urals Princess and Urals Queen. Polomsky stressed that Essberger was looking for more long term third party business, but said he would not compromise on standards to win business. He admitted that his fees were a bit more expensive, due to the higher standards adopted. Ice class As for ice class training, this is undertaken on board the vessels. The tankers need special equipment fitted to cope with temperatures that could be as low as minus 35 deg C. Hydraulic fluid can also change at these temperatures, while the accommodation needs insulating against the cold. For example, the two aframaxes have fully enclosed bridge wings, protecting the officers at all times, including during berthing manoeuvres in low temperatures. The quality of the steel used for fittings and valves was also important, Polomsky said. As for ballast tank coatings, these can be a problem due to heating of the cargo in adjacent tanks. All Essberger's vessels have been designed to operate for 25 years. Polomsky was a believer in what he calls "easy technology on board". "We need to keep it simple, as after 10 years we often cannot service the equipment as there are no spare parts. There 66 needs to be a dialogue between manufacturers and end users," he concluded. Hellespont arrives on the banks of the Elbe Illustrating the favourable investment and ship operational climate in Germany today is the arrival of a leading high level Greek company Hellespont, which has set up shop along the banks of the Elbe. The Piraeus-based concern 50% of the shares in Hellespont Hammonia. This company is wholly owned by Hellespont Marine Services, which in turn is owned 100% by Hellespont Holdings. The founding Papachristidis family still retains control of all the Hellespont companies. Other ship management companies in the group include Hellespont Steamship Corp and Seatramp Tankers. Hellespont Hammonia managing director Spyros Vlassopoulos explained that in order to tap into the KG financing funds. At present, the Hamburg office is responsible for the management of four suezmaxes and one aframax tanker. Chinese panamaxes Another six fully coated panamax products tankers are under construction in China, the first of which, the 73,630 dwt Hellespont Pride, was recently named at the New Century Shipbuilding at Jingjiang, closely followed by the second, Hellespont Progress. Claimed to be of a high standard, the cargo tanks are fitted with laminate epoxy coated tanks and Hammonia Hellespont's white hulls help illustrate they are maintained to a high standard. formed a limited partnership Hellespont Hammonia - in July last year with a registered share capital of Eur1 mill. The partners in the project are Hellespont Holdings (50%), German shipowner and manager Peter Doehle and Hanseatische Capital Invest (HCI), who each have a 25% stake. The company's goal is to become an active member of the German shipping community. HCI is a leading German finance house and reportedly financed over 397 vessels with a total investment of Eur8.2 bill as of 30th June, last year. Peter Doehle owns or manages around 200 vessels, mainly containerships and smaller bulk carriers. Hellespont Deutschland owns system, the company needed a presence in Germany as it had decided to continue to manage its fleet rather than farm the vessels out to third party ship managers. Hellespont's philosophy is that an owner's credentials depends principally on its competence as a ship manager. This, the company believes, is more pronounced in the tanker sector than anywhere else. Were the company to transfer the management of its ships to an independent concern, it would no longer play a role in, or add value to, service performance. It's value would be reduced to that of a broker. By September 2007, the Hamburg office will have 11 tankers on its books all financed through KG private investment heating coils to cope with different grades of cargoes. As on all Hellespont vessels, anodes will also be fitted in the tanks, while the ballast tank coatings will be checked regularly. "We take no short cuts," Vlassopoulos asserted. The sextet were all financed through HCI. Vlassopoulos also explained he was looking to expand the operation in Hamburg. He also explained the reasoning behind Hellespont's vessels' hulls being coated with white paint. "The vessels are maintained to a high standard and this helps illustrate the point," he said. All the vessels, including the newbuildings, are long term chartered to Sanko Steamship. The aframax Hellespont Tatina TANKEROperator z September 2006 p85-92.qxd 06/09/2006 09:30 Page 7 FOCUS ON GERMANY Hellespont at a Glance 1946 - Phrixos Papachristidis acquired his first ship in Canada. Company based in Montreal. 1955 - Ordered first tankers, two 20,000 dwt vessels built in Belgium. 1957 - Ordered 45,000 dwt tanker Emerillion from a Canadian shipyard under a long term contract with Shell. 1960-1965 - Ordered six 26,000 dwt 'lakers' in Canada. 1972 - Sold 'laker' fleet due to uncertainty in Great Lakes trade, thereby disposing of last Canadian vessels. 1970s - The company went through a restructuring programme after embarking on a shipbuilding programme. 1981 - Hellespont Holdings was formed. 1985-1986 - What are called the 'Watershed Years'. This period saw Hellespont was chartered in from Salamon for eight years in late 2004 and was relet to Sanko for five years. The suezmaxes have been taken by the Tokyo-based concern for eight years, while the newbuildings are also fixed to Sanko for seven years. At the time of TANKEROperator's visit, the company had just completed a trio of second special surveys, two in Lisnave and the other in dock at Sembawang. Manning is of crucial importance for the company, which has offices in Manila with full training facilities. The ships are crewed by Philippinos from top to bottom, Vlassopoulos explained. At the moment, he is recruiting cadets. The company's philosophy is to train youngsters to 3rd Engineer, or 3rd Mate level and then put them though their various certificates needed for promotion. In the Hamburg office the technical department consists of September 2006 z transform itself from a provider of equipment to the shipping industry to a provider of ocean transport services through dedicated chartering arms - Seatramp Tankers and Probulk Carriers. Bulk carrier interests sold and tanker fleet expanded under Seatramp banner. 1988 - Hellespont Tanker Fund formed. 1990 - Bought six ULCCs from the Loews Corporation. 1999 - Ordered four 303,000 dwt VLCCs and four 442,000 dwt ULCCs. The VLCC contracts were subsequently sold. 2004 - ULCCs sold for a good profit. Added a 1999-built aframax to its fleet. Ordered six panamax products tankers. 2005 - Acquired four suezmax tankers. Hellespont Hammonia formed. ex-master mariners and chief engineers who are employed as superintendents. Both the operations and technical departments are run by Greek nationals. A superintendent engineer and a port captain sit in the Greek office, which today acts more as a consultancy. Interorient to expand tanker operations in Germany Another company expanding its empire in Hamburg is Interorient. This Cyprus-owned company celebrated its 25th anniversary last year and is expanding its empire in Germany this year under the guise of INC Interorient Navigation Hamburg GmbH & Co KG. During the past 16 months or so, the number of staff has grown from 17 to 35 employees encompassing seven nationalities, resulting in the office language TANKEROperator being English. The company intends to move to larger premises soon. The Hamburg office now looks after 17 handysize 37,000 dwt tankers, two 51,000 dwt tankers and a 7,000 dwt coastal tanker. Several of the vessels carry either an Ice Class A or B notation. The entire fleet is of double hull construction. Another two 51,000 dwt tankers, Arctic Breeze and Blizzard Breeze, are due to be delivered this year and next, while the group has around 20 tankers on order, or under construction. The duo were purchased as resales this year and are under construction at South Korea's STX shipyard. They are high ice class products carriers built for operation in the Baltic when necessary. INC uses the Cypriot and Maltese flags. “ better. There is enough capital in the German financial markets for sustained growth and the tax regime is on a much more beneficial path than before. Gierga said that one of the main advantages of forming a pool was giving the operator flexibility. For the time being both partners were happy to keep the set up as it is, but nevertheless, "it is an open pool," he said. Much of the company's business is now conducted from the Hamburg office, which now operates full management activities. The office is structured as a separate company under German law, but still comes under the umbrella of the Limassol headquarters, which manages a few vessels from Cyprus. INC raises the cash by using ...one of the main advantages of forming a pool [is] giving the operator flexibility. ” Carsten Gierga, commercial director, INC Interorient Navigation Hamburg GmbH & Co KG. The company inaugurated a pool with Danish operator Norden last year on a 50:50 joint basis. The Norient Product Pool A/S now contains 26 vessels and more than 15 will join this year. It is run from Denmark. The vessels normally operate in northern Europe, the Baltic and in the Atlantic basin. Around 40% are timechartered while the rest operate on the spot market. INC normally timecharters tankers for up to three years and are mainly concluded with oil majors, such as BP. Investment optimism INC's Hamburg-based commercial director Carsten Gierga said he agreed with the other operators in that the current investment mood in Germany has changed considerably for the the German KG system using project fund house GEBAB to put the schemes together and Hannover-based Norddeutsche Landesbank as its lead bank. As for the thorny question of the TMSA, Gierga said, "we are learning from it." It is being taken as guidance for training on the back of BP's ideas. Oil majors have been invited into the office and on board INC vessels. The company is keen to receive feedback from its seafarers and trains them accordingly. INC uses a Transas full mission bridge simulator located in Riga where the company has its main crewing hub for the tanker fleet. The simulator was installed this year. Latvian and Russian officers are usually employed on board the ships, while the ratings come from the Ukraine and Romania. 67 p85-92.qxd 06/09/2006 09:30 Page 8 FOCUS ON GERMANY Due to the probability of trading in ice, the company does not employ many Filipinos. Other crewing outlets exist in Manila, St Petersburg and Odessa. Training is also carried out on board ship using PCs and Videotel. Gierga thought that video style training was gradually dying out in favour of the PCbased training. As for specialist ice training, this is conducted externally. This takes the form of a type of risk assessment posing the question what is going to happen in ice? This is best achieved in a seminar type environment. If an officer encounters ice for the first time, he or she will have an experienced person alongside him or her. Gierga said that INC is a great believer in looking after the vessels' coatings properly. The vessels undergo intermediate drydocking with the longest being a 36-month schedule. The vessels are continuously monitored, he claimed. Many of the tankers are standard 37,000 dwt products carriers. As for spare parts, INC's policy is not to keep a spares pool, except for expensive items, such as turbochargers and propellers. A number of spare propellers are kept at both Rotterdam and Szczecin. "We can save a lot of money by not being off-hire," Gierga said. "The service rendered to an oil major pays back in the long term," he continued. The Hamburg office intends to stick to what it knows best, that is the products carrier market. He admitted that like elsewhere, recruiting expertise was a problem to the company. Sufficient superintendents are hard to come by. INC is already employing extra superintendents for the vessels due for delivery in 2007. The INC group has expertise in almost all areas and apart from Hamburg and Limassol has a management office in Miami. Gierga said the company is open for third party business, but not in the tanker crewing department as 68 this would be a conflict of interest, as there is such a shortage of seafarers. Wappen orders another four SCOT types Wappen-Reederei GmbH & Co KG is based on the banks of the Elbe just across the road from the famous Landungsbrucke. WappenReederei was formed in January 2002 and took delivery of its first ship - Wappen von Hamburg - in November of that year. This proved to be the first of eight 'SCOT 8000' products/ chemical tankers that are now in service. A further four have been ordered from Damen Shipyards Galatz for delivery 2007-2008. The current fleet was designed by Lindenau Shipyard at Kiel, but built at Galatz in Romania. Each of the sister vessels are fitted with a high level of redundancy having two propulsion and steering plants and twin engines housed in their own machinery spaces. They are also built to Ice Class E under GL classification and fly the British flag. They are also of double hull construction, which includes double hull bunker tanks. Propulsion is provided by two MAN B&W Alpha medium speed diesel engines, while the auxiliaries were provided by “ and crew management in-house, while Poseidon Schiffahrt takes care of the commercial side of the business. The vessels are fitted with Sperry navaids, Transas ECDIS and the company recently signed up ChartCo to update the electronic charts automatically. However, Panitzki said that there were still areas of the world where paper charts are necessary, so all the vessels carry both paper charts and ECDIS under the IMO regulations. Being chemical tankers, the cargoes are changed regularly so tank cleaning has become a priority. Wappen uses the ScanJet system with two fixed tank cleaning machines fitted in each cargo tank. The vessels are also fitted with Framo deepwell pumping systems. The pressure monitoring, tank gauging and tank radar systems were provided by French concern Auxitrol. The vessels' automation system was provided by Kongsberg and a Kongsberg Fleetmaster system transmits remote readings to the office by which the company can monitor the vessels' performance enabling Wappen to undertake trend analysis, anticipate failures and take on a sort of trouble shooting role. Wappen uses an Inmarsat B satcoms system and is fitting a Fleet system on the newbuildings. It’s important to have back up from the flag state. ” Jan-Eric Panitzki, managing director, Wappen-Reederei GmbH & Co KG Cummins and the vessels also make use of a power take off system. Managing director JanEric Panitzki admitted there was a slightly higher maintenance costs involved with such a high level of redundancy built in, but the extra cost was worth it in commercial terms. Wappen handles the technical The crew have access to an Iridium telephone system, which connects the office to the ship and they are also issued with pre-paid phone cards for their private use. Two of the vessels are long term timechartered to ST Shipping & Trading, part of Swiss-based Glencore empire operating on the South, Southeast and Southwest African coasts, mainly loading out of Cape Town or Durban. They mainly lift heavy fuel and CPP on behalf of oil majors, such as BP. Ship-toship transfers are also conducted off Mozambique from time to time. The other vessels are trading in northern Europe, the Baltic, Central/South America and Southeast Asia. Wappen's offices are regularly visited by the oil majors and one has already audited the company with respect to the TMSA scheme. The company, although reasonably small, has even set up an emergency response room as recommended in the TMSA scheme. Panitzki claimed that the vessels were of an ideal size range being of 8,250 dwt and having a capacity of 8,890 cu m. "They are handy for the Baltic trades and smaller ports," he said. He also thought that there were not too many newbuildings in this size range, making them unique. He described the relationship with the UK's Maritime & Coastal Agency (MCA) as good. The agency recently audited Wappen's ISM status. Panitzki said he liked the MCA's single point approach and the support that the company received. "It's important to have back up from the flag state," he said. Panitzki said under the UK flag any nationality could be employed on board ship providing his or her certificates were up to date, unlike the German system where at present a German master must be employed. However, he qualified this by saying that it was not good practice to save money just for the sake of it on sophisticated vessels. Wappen undertakes its own training and uses certain crewing agencies, but likes to retain its own crew for the sake of continuity. He claimed that the crews' rejoining rate was running at around 80%. "You save time by having a good crew," he said citing the case of tank cleaning, which can take TO about three days. TANKEROperator z September 2006 p93-95.qxd 06/09/2006 10:01 Page 1 FOCUS ON GERMANY GL leads the way on several fronts D uring a visit to the Hamburg office recently, TANKEROperator was informed of several ongoing initiatives, including work on ballast tank coatings, which has become a focus of attention at the IMO. GL is focusing on large size ballast tanks and in addition work is underway on cargo tank coatings. The European Maritime Safety Agency (EMSA) has asked IACS to prepare proposals and submit them to the IMO. These are now under development. About 18 months previous to this move, GL started to develop guidelines for tankers, especially crude oil carriers as chemical tanker coatings are well defined, GL explained. This was a new departure for a class society as coatings manufacturers had always been the source of information, as they know how to prepare a surface and the limits of application needed for each tank. GL believed that any problems should be solved as a team with shipowners and shipbuilders joining the debate. "There should be a special aim and approach to the problem," GL's Daniel Engel said. The result is a special notation CTC (Cargo Tank Coating) for crude oil tankers, which entered force on 1st January this year. This voluntary notation regulates all aspects of coatings, indicating where and how coatings are carried out, covering surface preparation and the relevant survey processes. The condition of anti-corrosion coatings will be regularly monitored and reported on. If repairs become necessary, Classification societies have become more like consultants down the years and Hamburg-based Germanischer Lloyd (GL) is no exception. GL will offer a consultancy service and all work will be carried out under the supervision of a class surveyor. In oil tanks corrosion is almost inevitable, GL said. "This might help raise the standard for owners and the vessel's safety", Engel said. However, shipyards tended to complain if standards are raised purely on cost grounds. "But, if there are low standards, there are no benefits," Engel asserted. The standards can be selected voluntarily and the technical specification defined, including the coating thickness, which is the basis on which to start. "It is up to the owner to lay it on the table at the shipyard", Engel said, "so that the shipyard has the correct specification." He thought as the number of tankers on GL's books was increasing, this special class notation was seen to be a good marketing tool to persuade others to join the class society. Any size of tanker can be covered by the new notation. Another plus, according to GL, was that the resale value of the tanker could be enhanced by having such a notation. Problems exist with humidity and salt content in certain parts of the world when coating, making it difficult for some shipyards to comply with the specifications. In these cases, monitoring is essential. As for the question of void spaces and ballast tank coatings, GL is representing German TANKEROperator z September 2006 interests at the IMO in formulating performance standards for newbuildings. Maintenance recommendations when refitting are also possible, Engel thought, but this may take some time to come to fruition. means of access (PMA) is not mandatory on existing vessels, but mandatory on newbuildings, enabling surveyors to have a close up view of the tanks and void spaces literally at arm's length. Often the tank's height is more than 6 m and so there should be a gallery attached to the longitudinal frame complete with railings and a fixed device for attaching a portable ladder to give a 3 x 3 m viewing area. GL helped Wappen to achieve its goal of designing and commissioning the successful SCOT type tankers. Georg-Alexander Martin, tanker department manager, explained the process further by saying there is a need for prepreparation before a coating. A couple of surveyors will be needed for the coatings inspection process, which starts with the preparation process, for example, rounding off any sharp edges, cleaning the weld seams and grinding where necessary. A coating can become cracked and so constant inspection is needed. To avoid corrosion in empty tanks, they should be constantly inerted. One of the problems in void spaces and ballast tanks is that a permanent "What we are trying to do in general is to find a practical solution, which is cost effective," Martin said. Martin also said that this initiative is a joint effort, as shipyards such as some of those in China need a little help, as they are increasingly becoming involved with tankers. As for the new chemical regulations due to come into force next year, Martin said that owners are telephoning GL on a regular basis to discuss problems for example with vegetable oils and biofuels. "We will support them in reading the regulations," Martin said. TO 69 p93-95.qxd 06/09/2006 10:02 Page 2 FOCUS ON GERMANY German Report Saacke Bremen-based heat generation equipment supplier Saacke Marine Systems celebrated its 75th anniversary earlier this year. Such is the current demand, production is running at full blast at its manufacturing plant located near Bremen. Last year, the company posted a turnover of Eur130 mill across its three disciplines and it now employs nearly 1,000 people in 20 countries worldwide. In the early days, Saacke started manufacturing combustion equipment for use with high capacity steam boilers on board ship. In those days the diesel engine was still in its infancy and most vessels were powered by steam. The company continued to grow and in 1954 expanded into the land market. Today, land accounts for 75% of Saacke's turnover, while the marine business accounts for just 25%. In 1997, a separate entity Saacke Marine Systems was formed as the company was split into three divisions, looking after industrial combustion systems, process technology and the marine sector. Two years later, Saacke became a complete supplier of boiler systems with the integration of TPK Nova of Croatia. Marine systems manager Peter Breidenich told TANKEROperator that today, more than 4,000 vessels are fitted with Saacke burner systems. In the liquid bulk sector, the company has developed burner equipment for LNGCs, FPSOs, crude oil and products tankers. Conversions are also undertaken on old oil and gas burners fitted on board ship. For the LNG carrier market, Saacke designed the gas combustion unit (GCU) in 2002. The following year, the first unit was installed on the LNGC Gaz de France Energy. This unit can be used by those using dual-fuel engines, or slow speed diesel engines with reliquefaction plants, as no matter what the choice is, there is still a need for Saacke - A supplier of boiler systems. 70 a redundant system for the safe combustion of the boil-off gas. Breidenich claimed that the company was the market leader in this technology. He explained that the standard design 143,000 cu m capacity LNGC was still being ordered with a steam propulsion unit despite not being as energy efficient as a diesel engine, or a combination alternative. Saacke claimed in its publicity brochure that its twin KLN/VIC boiler system with a capacity of up to 2 x 40 tonnes per hour is tailor made for oil tankers with a high steam demand. This system features burners with a turn-down ratio of up to 1:20 with a low oxygen content for inert gas operation. The company manufactures burners and boilers for power ranges from 1MW to 85MW. For example, the Gaz de France Energy's GCU is rated at 45MW. This specific unit was installed in the LNGC's stack to avoid taking up space in the main engine room and for ease of maintenance. Like any equipment manufacturer today, after sales is an important consideration for Saacke. There are around 70 service engineers in Germany and 100 worldwide for both land and marine operations. Breidenich said the company operates a service on demand - policy. A large storage area is available in Bremen from where most of the spares are air freighted as they tend to be not so large. A wear and tear small stock plant was also opened in Singapore. To promote sales in Asia, a marketing office was opened in South Korea in July 2005. Previously, Saacke had delivered burners to a local boiler company, but since the introduction of the GCU, the company has thought it worth having its own presence, due to the plethora of LNGC orders in South Korean yards. In 2004, the company opened a production facility in Qingdao in a joint venture, which manufactures boilers. Another office in Shanghai looks after sales, marketing and services. The Qingdao plant as a clear height of 18 m and this year, Saacke planned to double the size of the facility, Breidenich said. The trouble with an average GCU is that it is 6 m in diameter thus it cannot pass under normal road bridges on a trailer, he explained. Breidenich said the company sees three key areas for its operations - Europe as most of the developments are carried out in Germany, including the GCUs; China with the new production facility in Qingdao and South Korea where many of the tankers and most of the LNGCs are being built. As for certification, Saacke has approvals from most of the major classification societies for its shipboard equipment. However, due to the varied size and capacity of the equipment supplied, these cannot be type approved, but are dealt with on an individual basis. TO TANKEROperator z September 2006 p93-95.qxd 06/09/2006 10:02 Page 3 FOCUS ON GERMANY Navigation training available in Hamburg As a result of customer demand, US giant Northrop Grumman has opened its first shiphandling and bridge operation training simulator in its Sperry Marine training centre in Hamburg. This 160 sq m training centre offers instruction in all aspects of shiphandling and bridge operation. The courses include classroom instruction with multiple computer workstations and a complete integrated bridge system (IBS) and ship simulator. The new simulator system includes three projectors that provide a full-motion seascape on a 4.2 m-wide, 120 deg panoramic screen. The bridge controls, which are linked to the ship simulator, provide realistic shiphandling scenarios for various types of ships under a variety of sea conditions. A Sperry multi-console IBS installation mimics a typical ship's bridge, including electronic chart display and information system (ECDIS) with Sperry's proprietary voyage management system, radars, adaptive autopilot, manual steering, engine and bow thruster controls, heading and speed indicators and other related systems. "This is the first Sperry Marine training centre in Europe providing comprehensive programs for shiphandling and bridge operation instruction," said J Nolasco DaCunha, director of Sperry Marine Systems. "Its purpose is to provide watchstanders with training on Sperry Marine products in a controlled environment with certified, expert instructors. This will increase their confidence, provide the necessary skills when they operate the real thing at sea and ultimately enhance safety." "The training centre at the Hamburg office was chosen for the new shiphandling and bridge operation training simulator Berthing a large vessel on the big screen. because of its importance as a hub for the European shipbuilding and maritime industries and its convenient central location, which is easily reachable from anywhere in Europe." Sperry's curriculum meets international requirements for ECDIS training under the STCW95 code. The syllabus follows the IMO model course 1.27 for the operational use of ECDIS, and all courses are taught by certified instructors. Northrop Grumann Corp Electronic Systems' international marketing manager Brian Johnson explained that by using the equipment in the training complex, a shipowner/manager can save time and increase the level of navigator safety awareness before joining a ship. As on board ship, the common language in the classroom and the simulator room is English. Bridge personnel will normally be sent on a week long course three days using the ECDIS and two on the simulator, but the timings can obviously be flexible, Johnson explained. The simulator TANKEROperator z September 2006 consists of Transas components under a business arrangement and Sperry's navigation equipment. The main areas simulated for training purposes on the large screen are the Gothenburg fairway through the winding archipelago and as an alternative, berthing a large vessel in Rotterdam with tugs. The latter tests the skills of the navigators in wind and tidal conditions using tugs, Johnson explained. The English Channel and Malacca Strait are other areas that can be simulated. With the modern day training technology becoming cheaper, some shipowners/managers are investing in their own simulators and other sophisticated training tools, Johnson thought. Northrop Grumman employs 67 people in its Hamburg offices, which opened in 2003. The Hamburg base stocks new products and spares and includes a new generation VisionMaster FT IBS on its premises for sales and marketing purposes. A separate office has been put aside for IBS sales and marketing. The complex includes an engineering applications department and a computer aided design (CAD) office. Sperry also does a lot of its own software design, as well as the hardware. Other functions undertaken in Hamburg include purchasing and service administration, whose staff file records of everything that Sperry has installed on board a vessel. As for maintenance, this is usually carried out on board a vessel, or the equipment is retrofitted as necessary, Johnson explained. Sperry operates an internal information system whereby all of its 250 locations worldwide are linked. Hamburg handles sales and marketing plus other functions for northern European markets together with New Malden and Sperry's office in Norway. Johnson explained the need for regional offices by saying that some of the contracts can become very complicated by way of export/import laws, VAT and varying local regulations in TO different countries. 71 p96-108.qxd 06/09/2006 10:18 Page 1 SMM PREVIEW SMM is upon us once again Later this month, some 40,000 people will congregate in the Hanseatic city of Hamburg to attend the bi-ennial SMM exhibition and its many attendant conferences and meetings. The exhibition is already a sell out and an extra tented area has been erected to cater for the demand, effectively forming a 12th hall. M any of the 21 countries represented with national pavilions at SMM 2006, such as the UK, Canada, Norway, Russia and the US, will hold official receptions for invited guests, linking the top event of the world shipbuilding sector with their own maritime functions. At the exhibition itself, the 1,055 exhibitors will represent over 50 countries. The Spanish maritime industry will also be very well represented. The Basque Maritime Forum will present the 'Basque Engine Room' on 27th September at 12 am in Hall 7. This has been organised by various Basque marine equipment suppliers, whose core business includes manufacturing components and plants for the ship's engine room. Financial Times Deutschland (FTD) will stage a conference 'SHIP FINANCE' in co-operation with SMM 2006. The event will highlight the problem of how to unburden the balance-sheets of maritime companies. The lectures will deal mainly with the restructuring of the global shipping industry, ways of improving firms' capital situation and secondhand financing through German ship funds. Other topics covered will include means of financing types of vessel other than containerships, the traditional focus of German ship funds. The European Marine 72 Equipment Council (EMEC) will also hold a conference. This will be examine the ways of expanding the network of marine equipment suppliers established at the end of 2005 at European level, as well as strengthening relationships between members and improving co-operation between marine equipment suppliers and shipyards. This year's traditional CIMAC Circle of SMM is looking far ahead. Experts will discuss the 'Next Generation Marine Diesel Engines', the outlook for the marine diesel in the next 10 years. The focus will be on the performance and aspects of the combustion of future fuels, emissions and the increasing significance of electronics. The two-day PCE Marine Coatings Conference, staged by the British specialist magazine Protective Coatings Europe (PCE) along with Mülhan and SMM, will also consider future trends in the field of marine coatings. PCE is inviting the top marine coating companies and experts from Europe and the US to discuss their ideas and findings. The programme will cover all of the important areas of coatings for newbuildings and maintenance and repair work. Subjects to be dealt with include innovative coating technologies, new methods of corrosion protection, coating standards for ballast and cargo tanks and quality assurance. The Marine and Offshore Equipment Industries within the German Engineering Federation (VDMA) and the German Shipbuilding and Ocean Industries Association (VSM) will also once again focus on advertising for engineering recruits at the SMM this year. The 'Think.ING' promotional campaign is targeted at school pupils of the 11th and 12th grades (aged 16-17) at grammar and comprehensive schools in the north German federal states. Exhibition Preview The following pages contain a brief look at some of the leading exhibitors in strict alphabetical order. Alfa Laval - healthier oceans, healthier business In response to industry needs, Alfa Laval has focused on environmentally friendly products, collectively referred to as 'Pure Thinking' solutions. These will be the focus for the company's stand at SMM 2006. In addition, sulphur emission control areas (SECAs) and new fuels will be prove the need for a marine separation performance standard. Alfa Laval will also premiere two other products: the new Pseparator and the new Gunclean Toftejorg i65 S tank cleaning machine (see page 41). Based on the S-separator platform, the P- separator generates less sludge than conventional models and therefore has less impact on the environment as well as reduced costs for sludge disposal, the company claimed. For the first time ever, all three Alfa Laval 'Pure Thinking' solutions will be on display. The products include environmentally friendly solutions to treat crankcase gas, bilge water and ballast water. For example, EcoStream is an IMO-certified bilge water separator that effectively removes oil and other contaminants from emulsified oily wastewater on board ships. The bilge water separator generally reduces the oil content of bilge water to between 0 and 5 ppm - even when subjected to oil shock and severe conditions. This makes it a reliable solution, claimed Alfa Laval, that offers good safety margins. A high speed centrifugal separator also generates far less sludge for disposal on land than other competing technologies. PureVent is an extremely compact air separator that effectively removes oil mist from crankcase gases in the crankcase ventilation with 98% efficiency. This revolutionary new product occupies just 30 litres of space, but handles any engine size. Low operating costs, two-year service intervals and the absence of waste add to its appeal. PureBallast is Alfa Laval's ballast water treatment solution for the future. It uses advanced TANKEROperator z September 2006 p96-108.qxd 06/09/2006 10:19 Page 2 SMM PREVIEW oxidation technology to ensure that invasive species are not released into foreign waters through the discharge of a ship's ballast water. No chemicals are added and no undesirable residuals remain after the cleaning process. Simplicity of operation and a small footprint are other attractive features. Alfa Laval is working to release the system and make it available for commercial operation. Fuel and lube oil cleaning Alfa Laval has continued to invest in other products. This spring, Alfa Laval unveiled a dual approach to oil treatment, which included the launch of the new Pseparator. Displayed side by side for the first time at the SMM, the P-separator and its sibling the Sseparator enables shipowners to choose a solution to meet their needs, economy and automation requirements for fuel and lube oil September 2006 z treatment. Alfa Laval's S-separator effectively addresses the process issues associated with heavy fuel oils. In contrast, the P-separator meets the requirements of cleaning marine diesel oils and lubricating oils. The introduction of SECAs puts new demands on fuels and on fuel sulphur levels. Tests conducted by DNV Petroleum Services indicate that processing low-sulphur fuels may lead to additional quality problems and increase the level of catalytic fines in the fuel. This will put greater demands on separation performance. At the Alfa Laval stand the latest findings will be presented on how the separation performance standard (SPS), referred to as CWA 15 375, helps to ensure that equipment used to clean fuel oils will offer better safety margins and protect the engine from damaging TANKEROperator The S-seperator 73 p96-108.qxd 06/09/2006 10:19 Page 3 SMM PREVIEW catalytic fines. Visitors to the stand will also be able to obtain a copy of the industry guide relating to SPS, which is a collaborative effort written by MAN B&W, BP Marine and Alfa Laval. New tank cleaning machine The new high impact tank cleaning machine, the Gunclean Toftejorg i65 S will also be exhibited. This new machine incorporates low-wear materials as well as advances in mechanical design, such as a soft-starting hysteresis clutch, which eliminates the slippage associated with traditional magnetic clutches. A gas-tight, leakage-free construction and a removable gearbox are also innovative features, which will be shown in the fully operational test tank at the Alfa Laval stand. 74 Caterpillar Marine Caterpillar Marine Power Systems (CMPS) has been successfully participating in SMM for many years, and the MaK brand has been on show since the very first SMM back in 1960. The focal point of CMPS' SMM display will be 'Integrated Solutions', on some 300 sq m of exhibition space, located directly in the centre of the Propulsion Hall A3. 'Integrated Solutions' reflects Caterpillar's 'Vision 2020' strategy and the company's aim to provide the best return on investment for its clients. Marine 'Integrated Solutions' ranges from project design, through sales, to the commissioning of complete propulsion systems. It covers ship financing and customer support agreements and includes a variety of logistics, re-manufacturing and related services for shipowners and operators worldwide. Many of these solutions will be demonstrated at SMM 2006, using exhibits, displays, video demonstrations and, most importantly, the knowhow of experts on hand from CMPS, Caterpillar Financial Services and the Caterpillar® dealer network. The eye-catcher on the stand will be a MaK™ 6 M 32 C medium-speed marine engine, equipped with Caterpillar Common Rail (CCR), a wellproven element of Caterpillar's ACERT™ Technology. Following extensive research on engine durability with Heavy Fuel Oil (HFO) operation and careful evaluation of field experience with competing solutions, CCR will combine cutting-edge technology with best-of-class reliability. Starting with the MaK M 32 engine series, CCR will be available eventually for the whole MaK medium-speed portfolio comprising M 20 C, M 25, M 32 C, and M 43 C engines. Demand for new engines is still strong and CMPS today is already working on orders for 2009 and beyond. However, in order to build long-term relationships with customers, the organisation is increasingly focusing on product support and spare parts service for both new vessels and the existing Cat and MaK engine population. Caterpillar offers a network of 200 independent dealers with 1,741 dealer branch stores, plus some 400 authorised marine dealers located in harbours and marinas - in total more than 2,100 dealer locations worldwide. A multitude of well-trained employees support vessel TANKEROperator z September 2006 p96-108.qxd 06/09/2006 10:26 Page 4 p96-108.qxd 06/09/2006 10:27 Page 5 SMM PREVIEW operators in minimising their owning and operating costs. During SMM, the programmes for Caterpillar genuine parts, remanufactured parts and exchange parts will be on display. So too will be the many options for customer support agreements in oceangoing vessels each tailormade to individual customer needs. Individual personal contact with dedicated marine experts follows every product sold. In addition to CMPS' staff, all major MaK and Cat marine engine dealers will have their sales representatives on the stand. Hatlapa Headquartered in Uetersen, just outside Hamburg with a staff of 230, Hatlapa manufactures deck machinery, compressors and steering gear. These can be found on all types of merchant vessels. Constant presence on site is guaranteed by 42 sales agencies in 35 countries, as well as by subsidiaries in Singapore and Shanghai, UK and Cyprus. On the stand Hatlapa will be exhibiting a low pressure hydraulic motor for mooring, towing and offshore winches. A trial run will take place at Uetersen during SMM. An example of Hatlapa's diversity came earlier this year when the Columbia Shipmanagement controlled 35,159 dwt chemical tanker Cape Bradley collided with a cargo vessel off the French coast. The whole foreship was damaged including the winch equipment. After docking at Lloyd Werft, Bremerhaven, the winch fragments (supplied in 2004 to Hyundai Mipo Shipyard by a Norwegian company) were forwarded to Hatlapa's Uetersen factory. In only two weeks, Hatlapa had manufactured new starboard winches to its own design. The components were tested and approved on the company's test bench on a Sunday, by DNV and Columbia. Cape Bradley received two new roller chain stoppers, a windlass part for 70 mm stud link chain, a double drum mooring winch for a pull of 150 kN and a winch gear with high-pressure hydraulic drive. The Hatlapa team in their respective departments operated 24/7, depending on progress, proving their flexibility in the maritime field. Hatlapa also built a deep-sea towing winch of 84.5 tonnes in weight, to a 'waterfall' design, that is two rope drums arranged one above the other to accommodate the towing ropes. The dynamic pull of the winch is 200 tonnes and the static holding load 320 tonnes. The upper rope drum is belayed with a towing wire (76 mm diameter) of 1,200 m in length. The lower drum has a towing wire of the same diameter but 1,600 m long. The towing winch is driven by the 'stepless drive', which has been developed and patented by Hatlapa. Frequency inverter controlled electric motors and corresponding controls allow stepless operation of the winch, otherwise known from hydraulic drives. Thus protective operation at very high rope speeds of up to 31 m per min is guaranteed. Additionally, the winch is equipped with two cable lifters for a 76/127 mm stud-link chain. The winch will be installed on a deepsea tug, which is presently being built by the Mützelfeldt Shipyard in Cuxhaven. The order was placed by Ferrostaal, Essen and Harms Bergung, Hamburg who will operate this tug for all kinds of deepsea transport, offshore work, salvage and SAR. This oceangoing tug is the first of four being built in Germany In co-operation with Ferrostaal and Harms Bergung it was possible to arrange the transport of the winch from the port of Uetersen to the Mützelfeldt Shipyard in Cuxhaven. Imtech and HDW Hagenuk Schiffstechnik The Imtech group will be well represented at SMM. The group, or cluster, will present the capabilities of Imtech Marine & Offshore (IM&O) and HDW Hagenuk Schiffstechnik (HST), while the HVAC specialist Imtech Schiffbau & Dockbau can be found on another stand. The cluster acts as marine system integrator, focusing on four market segments: naval, yachts, special vessels (offshore and offshore-related vessels, dredging and coast guard), and merchant vessels (cargo and container ships and inland navigation vessels). IM&O and HST are specialists in digital integrated bridge systems (IBS) and navigation equipment, communication systems, engine room automation and integrated platform management systems power generation and distribution, dynamic positioning systems and electrical installations, and last, but not least, diesel-electric propulsion systems. Cape Bradley's winch before and after Hatlapa replaced it. 76 TANKEROperator z September 2006 p96-108.qxd 06/09/2006 10:29 Page 6 p96-108.qxd 06/09/2006 10:29 Page 7 SMM PREVIEW The group claims to have a suitable solution for any client; from specialised products, complete systems, to total ship solutions. IM&O and HST will present a complete bridge console for use on commercial vessels. The group will show the UniMACS 3000 IBS using the futuristic MOAC technology demonstrator, specially configured for the SMM with a real-time visual simulation, and a steering stand fitted with dynamic positioning. Both IM&O and HST are also heavily involved in switchboard manufacture. As an example, a drive panel for a diesel-electric propelled ship is among the items on display at the stand. HST will also spotlight communication systems. For instance, there will be a GMDSS console with HST's latest global marine communications product on display, along with a carefully selected grouping of marine navigation, communications and safety equipment from first-class suppliers. A short summary of all products and systems represented during SMM includes: Two complete IBS; one with real-time visual simulation. A large variety of communication systems. Switchboards. Drive panel for electric propulsion. Both Imtech Marine & Offshore The widest range of marine equipment Stromme manufactures and supplies a complete range of quality marine products. Stromme guarantees On time response and delivery. With Stromme you only need one supplier. Lifesaving Equipment • • • • • • • • • • • • • Totally Enclosed Lifeboats Partially Enclosed Lifeboats Freefall Lifeboats Open Lifeboats Rescue Boats Fast Rescue Boats Ship and Rig Davits Fast Rescue Boat Davits Rescue Boat Davits Life Raft Davits Automatic Release Hook Immersion Suits Fire, Rescue and Safety Equipment Deck Equipment • • • • Marine Cranes Offshore Cranes Fi-fi Pump Sets Fenders Other Equipment • • • • • • • Reverse Osmosis Plants Marine Compressors High Pressure Cleaning System Cargo Hold Cleaning System Tools & Workshop Equipment Tank Ventilation Fans Various Maritime / Offshore Equipment – a part of the Stromme Group www.stromme.com Head office: tel. + 47 67 52 60 60, [email protected] NME office: tel. + 47 53 47 95 00, [email protected] Branch offices: United Kingdom, The Netherlands, Germany, Poland, France, Spain, Singapore and USA 78 and HDW Hagenuk Schiffstechnik are members of the Imtech Group. HDW-Hagenuk Schiffstechnik is the partner for shipborne electrical and electric systems and equipment, backed by an extensive range of services. HDW-Hagenuk Schiffstechnik joined the Imtech group in December 2004. The areas of competence encompass not only development, planning, engineering and project management but also delivery, installation, commissioning, maintenance and after sales support. The key performance strength is the wide range of systems, engineering, logistics and after sales services offered to a national and international clientele. Aside from the traditional home market HDW-Hagenuk Schiffstechnik primarily concentrates on the shipbuilding markets in China. The GermanChinese Joint venture company HHEC produces electrical switchgear, while the Shanghai representative office supports all marketing activities. Imtech Marine & Offshore is a marine systems integrator. Its services focus on all phases in the life cycle of a ship or platform. Imtech Marine & Offshore assumes full responsibility for design, production, installation and maintenance; in the field of electrical engineering, automation, instrumentation and HVAC. Imtech has been engineering, designing, manufacturing and installing equipment, machinery and complete systems on board vessels since 1860. Being a marine contractor, Imtech provides a wide range of products and services worldwide. Imtech Marine & Offshore has sales, engineering and production facilities in the Netherlands, Germany, France, Singapore, China, UK and in the US, together with sales representatives throughout the world. TANKEROperator z September 2006 p96-108.qxd 06/09/2006 10:49 Page 8 Purchasing Asset Management Please visit us at Hall 7 Stand 32 Maintenance & Stock Control Personnel Management Quality & Safety Management E-mail & Communications Consultancy & Training SpecTec – your global IT Partner Working together for efficiency, productivity and profitable asset management www.spectec.net [email protected] p96-108.qxd 06/09/2006 10:50 Page 9 SMM PREVIEW Kittiwake to unveil latest sensor technology Under increasing pressure to lower operating costs, one of the key areas for shipowners to concentrate on is the maintenance function. Ad-hoc budget cuts often result in unreliable vessels while short-term savings do not offer any long term gain. If the vessel is to increase time at sea, reduce in-service maintenance costs, retain or improve its reliability and extend service performance, then there are some basic principles that must be adhered to. Good maintenance practices will help avoid accelerated wear and prevent catastrophic failure, but where marine engineers continue to face problems is in the field of condition based monitoring. In terms of oil analysis at least, undertaking regular checks of any root-cause condition is usually a hurdle and the remote location of a vessel often makes it difficult for regular laboratory testing to be valid. One option is for the vessel to carry a basic set of oil analysis tools. However, this requires staff skilled in the use of the instruments for it to be meaningful and assumes that time is freely available for such tasks. Kittiwake, already well established in the marine fuel and lube oil testing market, has taken steps to try to address the issues of oil analysis at sea. As a result, the company recently launched the ANALEXrs range of remote online sensors for lubricant and machine condition monitoring. The sensor range aimed at critical fluids, includes total ferrous wear debris sensors, particle content, oil condition and moisture sensors. Kittiwake claimed that the ANALEXrs online sensors go beyond the normal protection devices enhance the root-cause monitoring approach to reliability. The sensors have completed extensive trials on board vessels, while testing laboratories along with major oil and engine 80 Kittiwake's remote sensor range. manufacturers have reported extremely positive results. Speaking at a recent conference, Chris Leigh-Jones, managing director, said "Remote online sensor technology is the way forward in the 21st Century for the Marine Industry. With the emphasis on cost effective reliability, the ANALEXrs range will put real time lubricant and machinery condition information in the hands of the engineer. Remote online sensors improve the overall analysis process, allowing for accurate trending through more consistent and frequent measurements, which can only result in a more profitable and proactive maintenance strategy." He added, "The technology would also reduce the safety and environmental hazards associated with sampling in many applications, as well as benefiting many remote sites where the logistics of shipping samples is frequently a non-starter." To ask our experts how an online proactive condition monitoring approach can save money, explore the results and view the sensors in action, visit the Kittiwake stand. Kittiwake was set up in 1991 to provide a range of rugged, portable tools for fuels and lubricant analysis in the marine industry. The company purchased Analex in 2003 to enhance the oil analysis product range and has since expanded the PQ instrument range to now include the Analex remote sensor range. MAN Diesel group underlines wide capabilities Renamed MAN Diesel's exhibits will underline its propulsion and power generation capabilities for a wide spectrum of vessel types, as well as its expanding after sales activities under the new MAN Diesel PrimeServ brand. However, the main news is that the company officially changed its name to MAN Diesel SE. This is down to the company converting itself into a European Company (Societas Europaea, or SE for short), which was successfully concluded at the end of August. By adopting SE status, the executive board intends to make the Diesel Engine Division of the MAN Group an even more international player showing a single face to the customer. As Håkan Samuelsson, MAN ceo, explained, "Our markets are global and we are now in an optimum position to serve them. Being an SE makes us a true front-runner in Germany." Meanwhile at SMM, a highlight will be the showing of a 32/44 CR, MAN Diesel's first all electronic four-stroke diesel engine employing the company's own common rail system with pressure controlled injectors as standard equipment. The first orders for the 32/44 CR have been received, illustrating the market's ready appreciation of the economic and emissions benefits of common rail. In the two-stroke sector, pistons and valves from the K98ME-C engine, designed by MAN Diesel in Copenhagen and currently the highest output diesel available, symbolise how MAN Diesel power is keeping pace with ever bigger tankers, bulkers and, particularly, containerships. The MAN Diesel turbocharger business is exhibiting its own response to this same upward spiral with the running gear of its new TCA88-25 device. This uprated version of the established TCA88-20 features a revised compressor design, enabling only three TCA88-25 units to turbocharge MAN Diesel's top of the range 12K98ME-C two-stroke diesel engine. The MAN Diesel PrimeServ brand unites all after sales activities under a single banner, and a central theme will be its expanding network of highquality, readily accessible service centres. Since PrimeServ's early 2006 launch, five new branches at Houston, Los Angeles, Dubai, Guangzhou and Mumbai have TANKEROperator z September 2006 p96-108.qxd 06/09/2006 10:50 Page 10 SMM PREVIEW already started operations. Also on display is a vital cornerstone of PrimeServ strategy: customer qualification in the service and maintenance of MAN Diesel engines at the worldwide network of MAN Diesel Academies. Complementary themes will be presentations on the new 1,000 kW per cylinder 51/60 DF dualfuel four-stroke for LNG carriers, and a strong emphasis on MAN Diesel's offshore sector successes. Along with four-stroke engines from Germany and Denmark, finely tuned engines, reduction gear and propeller packages from Frederikshavn, Denmark are gaining ground in vessels like PSV's and FPSO's. The stand is completed by two virtual exhibits. MAN Diesel's design support capabilities are demonstrated in a 3-D film on a project to install a 58/64 main engine and 32/40 auxiliary in a tanker. An interactive ME engine simulator enables visitors to experience the dynamic response, emissions and fuel consumption behaviour of a powerful ME twostroke with advanced electronic fuel injection technology. As a result of the forming of a European SE company and the renaming, MAN will offer its services in three distinct brands: MAN Diesel - Four-stroke engines, turbochargers. MAN B&W - Two-stroke engines. MAN Diesel PrimeServ After sales service. Martechnic sees the future with dynamite Hamburg based Martechnic GmbH is pleased to announce its participation in the European Commission sponsored Integrated Project 'Dynamic Decisions in Maintenance' (DYNAMITE). This three and a half year programme led by the Finnish technological centre VTT is dedicated to advancing the state of the art and general understanding of industrial maintenance. Studies over the last 20 years have indicated that around Europe, the direct cost of maintenance is equivalent to between 4% and 8% of business turnover with indirect maintenance costs (quality, lost productivity, consequential disruption across wider systems, etc) likely to be at least a similar amount. The DYNAMITE project, with a budget of Eur6.1 mill, focuses on key strategic problems in technical and managerial areas of maintenance and on some specific devices. It addresses the need for a flexible, universal infrastructure to host technologies for global e-maintenance embracing 'smart tags' (intelligent labels identified by radio frequency), mobile computers (PDAs), low cost wireless communication devices (Bluetooth, Wi-Fi, GSM, UMTS). and sensor systems covering a broad range of techniques and applications. Martechnic joined 16 other companies and organisations (including Fiat's research centre and Volvo Technology AB) in addressing these issues bringing to the table its specialised expertise and experience in maritime fuel, lube and hydraulic oil testing and monitoring. Within the context of the project, Martechnic will participate in the development of micro-sensors to monitor the condition of lubrication where the generated data is transmitted via various means to remote intelligent processors and data management systems. The company provides products and services to the maritime and transportation industries for fuel, lubes and hydraulic oil analysis, monitoring and related maintenance areas. It claims to offer innovative solutions, field test kits and sensor systems for operating, Automation Technology From Lyngsø Marine and SAM Electronics Plea se SM visit u 26-2 M 20 s at Hall 9 Sept 06 e 12, Boo mber th 2 60 Machinery Monitoring Remote Control Cargo Management Lyngsø Marine A/S SAM Electronics GmbH 2, Lyngsø Allé 2970 Hørsholm . Denmark Phone: +45 45 16 62 00 Fax: +45 45 16 62 62 E-mail: [email protected] www.lyngsoe.com Behringstrasse 120 22763 Hamburg . Germany Phone: +49 40 88 25 24 33 Fax: +49 40 88 25 41 16 E-mail: [email protected] www.sam-electronics.de The 2200 Automation Series – Lifecycle Solution for Your Ship September 2006 z TANKEROperator 81 p96-108.qxd 06/09/2006 10:52 Page 11 SMM PREVIEW maintenance and regulatory requirements. For additional information on DYNAMITE visit Stand 331 in Hall A1. recommended by IMO. However, QMI's Brian Smith said that this latest requirement from OCIMF seemed to come out of the blue. Quality Monitoring Instruments (QMI) introduces a smaller monitor OCIMF has requested that all its oil major members and owners or managers of vessel that they charter should use oil mist detectors in the area of the hydraulic pack. Although it is a recommendation, it seems that the inspectors are enforcing this request with great vigour. For the past 17 years, QMI has been supplying the standard Multiplex system for oil mist detection in all vessel machinery spaces, which is now being 82 QMI's oil mist monitor. As there are very few companies that can deal with this parameter, QMI is introducing a new downsize Multiplex monitor which can service up to three detectors only. This new model will be officially introduced at SMM on stand A3.331. QMI claimed to have been swamped with orders and enquires as a result of this requirement and having to use our Multiplex unit with up to 3 detectors because of the demand right now. The extract from ship inspection report in the OCIMF SIRE programme states: 11.25 - Where hydraulic aggregate pumps are located within the main engine compartment, is an oil mist detector fitted? Note: In vessels fitted with deep-well pumps driven by hydraulic pressure packs, pressure in the transmission pipes can be very high. If the aggregate pumps are located within the engine compartment it is advisable that an oil mist detector be fitted. While this is a recommendation, it tends to become a requirement, hence the rush, Smith explained. Radio Holland International maritime electronics company Radio Holland, part of the Imtech Group, will present its global network of more than 50 owned branches and will also announce new additions to the network at SMM in several countries. Radio Holland's strategy remains to expand its unique global service network, to be able to support ship owners on site, 24/7. Also new Radio Holland services in airtime will be presented and announced, among which the launch of innovative broadband solutions. Through its Global Service House, Radio Holland presents its international service capabilities, a Global Service Database delivering management information for shipowners to manage their equipment on board. Also various flexible service contracts are possible. Radio Holland will also show various electronic TANKEROperator z September 2006 p96-108.qxd 06/09/2006 10:52 Page 12 SMM PREVIEW RH's compact (S)VDR solution. innovations, such as the Imtech BlueLine bridge system, the latest Tokimec navigation electronics, new and innovative, compact (S)VDR solutions and innovations in inland shipping electronics, such as a docking system and padpilot. Radio Holland will also launch its new broadband services, which the company claimed are ideal for oceangoing vessels that require 'always-on' satellite communications with high bandwidths. In addition, the broadband services are suitable for private corporate networks with requirements for a variety of applications, including file and image transfer, video conferencing, e-mail, Virtual Private Networks (VPN), and database backup. The package Radio Holland presents consists of hardware, airtime and value added services (VAS). Despite joining up in March of this year, Radio Holland had already been doing business with Imtech for some years. For example, the company supplied and installed the Imtech BlueLine IBS for various shipowners. SAM Electronics SAM Electronics, recently purchased by L-3 Communications, is exhibiting a wide-ranging series of newSeptember 2006 z generation automation, navigation, safety, power supply and energy distribution systems designed for ships of all types and sizes. Major exhibits include a new bridge control assembly featuring complementary automation and navigation functions and comprising a new range of ergonomically-designed standardised consoles and unified panels collectively providing improved system redundancy, in addition to optimum ease of operation and maintenance. New navaids include an IMOcompliant Debeg 4620, a competitive dual-channel echosounder and compact companion model to the existing 4630 version, a Dolog SAM 4682 dual-axis doppler log, and a highprecision SAM 4642 EM Log for determining speed in conjunction with a universal digital display unit, UDT SAM 4900. They are featured alongside a latest Chartpilot 1100 ECDIS demonstrating real-time updating via e-mail or the internet while an all-purpose Debeg 4300 Series VDR will similarly demonstrate wireless remote control of shipto-shore data in association with a NACOS integrated navigation command system. Energy and drive activities will be highlighted by latest diesel TANKEROperator electric propulsion systems, a new SAMCon ecological power connection system and the latest version of the GPM 500 generator protection module for combined generator and network protection. A new EGS 2200 electronic governor system featuring a governor panel and state-of-theart actuator with digital response for main engine speed is being shown as part of a PCS 2200 propulsion control system designed either for stand-alone use or integration as part of an MCS 2200 integrated monitoring and control system. Additional systems for improving ship safety and navigational decision-making will also be featured. Finally, automation systems will be featured from parent L-3 company, such as the L-3 Valmarine, as well as comprehensive product presentations by EUROATLAS and JOVYATLAS. Solar Solve Marine Solar Solve Marine, a leading manufacturer of SOLASOLV® anti-glare, heat rejecting roller screens for navigation bridge windows, is attending SMM for the eighth time. During use, SOLASOLV® screens allow a clear outward view with true colour rendition helping to ensure safer navigation during sunny and bright conditions and a more comfortable working environment for the crew. All of Solar Solve's product ranges will be displayed for visitors to try on their newly developed foldaway exhibition display stand. Both electric and manual versions of the SOLASOLV® range will be on show along with the ROLASOLV® range of fabric roller and blackout blinds for accommodation area windows. SOLASOLV® screens reject up to 87% of the sun's heat for a more comfortable working environment and up to 93% of glare so electronic charts and VDU screens can be easily seen. To-date, more than 65,000 SOLASOLV® screens have been supplied to 6,500 vessels worldwide. They are claimed to be instantly retractable, reliable, simple to install and easy to operate, and are constantly reassessed to ensure they comply with the latest marine legislation. SOLASOLV® is the only antiglare screen on the market to be Type Approved by LR, ABS and DNV. Transas Group Transas will be showing its intelligent bridge navigation system (HTiBS), which has become the first system in the world to be type-approved as INS class C. Designed in full compliance with the IEC61924 standard, it has recently been certified by DNV. Complementing this system is the Transas Light INS - a simplified single workstation INS which intends the non-conventional use with ARPA/RADAR and ECDIS capability, and also provides a common and easily supported cartographic database. Transas ECDIS is the combination of all the chart data on a single display, allowing the quickest possible situation assessment and decision making. The Transas S-VDR 3100, is designed to meet and exceed the requirements of the IMO resolution MSC.163 (78), the performance standards for SVDRs. In order to obtain the maximum benefits from S-VDR, the unit is supplied with NaviSailor ECS. The latter is specially developed to improve the operational safety and security of a water craft. Another Transas product Navi-Radar 3000-I- performs all the functions of radar, ARPA, and can overlay electronic charts on the radar picture. Transas will also present the full scope of its training solutions comprising: navigational simulator 83 p96-108.qxd 06/09/2006 10:52 Page 13 SMM PREVIEW Navi-Trainer Professional 4000, GMDSS simulator TGS 4100, engine room simulator ERS 4000, liquid cargo handling simulator LCHS 4000, oil product terminal simulator, and oil spill response simulator all integrated in a common virtual environment. Up-to-date shore-based system Navi-Harbour VTMS has been designed as a modular structure with centralised integrated data processing. All data integrated processing is performed by the system server, allowing the independent operation of many workstations connected via a standard TCP\IP network. UKHO - ECDIS seminars and question time at SMM The United Kingdom Hydrographic Office (UKHO) is organising its usual daily 'mini' 84 seminars on the UKHO Admiralty stand throughout the week, addressing ECDIS regulations, the Admiralty ECDIS Service and digital publications. Exhibition visitors are also invited to put forward any questions they have on subjects relating to ECDIS, current legislation or general issues relating to the electronic charting systems. "The UKHO is offering its services as an international resource for ECDIS information here at SMM, Hamburg. Our seminars are organised in response to regular feedback of questions and issues from marine decision makers working within the SOLAS sector " explained Keith Spalding, commercial PR manager, UKHO. To book an appointment or attend the 20 min seminar on the UKHO Admiralty stand call 01823 337900 (ext 1404) or visit the stand. Westfalia Separator offers SeaProtect Solutions The IMO and national legislative authorities have issued strict laws and directives to protect the ecosystem in the oceans involving fines running into eight digits in the event of failure to comply, even in minor cases. Westfalia's new BilgeMaster, SludgeMaster and CombiMaster systems from the SeaProtect solutions line of Westfalia Separator Mineraloil Systems are claimed to secure the oceans' sensitive ecosystems extremely effectively and also provide protection for the value of the shipowner's investment. At SMM, Westfalia will be presenting a new BilgeMaster series, which is specifically tailored to the requirements of shipping, offering a favourable price-performance ratio. Instead of the sizes 1,500, 3,000 and 6,000 litres per hour, the BilgeMaster series has now been subdivided into nine intermediate sizes ranging from 1,000 to 7,000 litres per hour. For this purpose, the three basic models WSD 8, WSD 18 and WSD 35 were combined with five different size absorption filters to produce a total of nine customised variants. In addition, the three basic self-cleaning separator models were converted from gearwheel-driven drive to belt drive. As a result, Westfalia Separator achieved a significantly higher speed and hence a higher centrifugal force and more efficient separation results. TO TANKEROperator z September 2006 IBC.qxd 06/09/2006 12:02 Page 1 Powerful force in Marine Technology Imtech and HST; your partners in delivering: Visit us at SMM at stand 12.OG.240 ■ Integrated Bridge Systems ■ Engine Room Automation ■ Power Generation and Distribution ■ Electrical Propulsion Systems ■ Electrical Installations ■ Heating, Ventilation and Air Conditioning Systems ■ Communication and Navigation Systems ■ Warning and Safety Systems W W W. I M T E C H M A R I N E . C O M W W W. H D W H A G E N U K . 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