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Contents
04 08
Markets MRs, recycling, forecasts UK Report Still a world force Registry gains vessels

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Technology 30 Emissions Control Abatement technology Reducing SOx emissions Fuel efficiency control Negating carbon risk Filling knowledge gap Emergency Response Salvage operations ‘Stolt Valor’ at ASRY PSC addresses fire safety Shiprepair/maintenance Goltens offers BWT services Slow steaming survey Castrol extends range Mid East yards up and running

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49

14 21

Norway Report Oslo comes in second DNV looks into the future Seagull adds to approvals Satcoms A plethora of choices Piracy Swarms a myth SAMI’s programme Mozambique move challenged STCW amendments

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53 56 58 62

Separators Saving waste fuel STS Transfers Data service offered Tank Servicing Tank linings examined Company expansion Conference Report Coping with current issues

Front cover
Becker Marine has seen significant success with its Mewis Duct with over 270 on order, or in operation. When combined with the Becker Rudder, fuel savings of up to 8% are claimed. A Duct of 8.1 m in diameter was recently fitted to a newbuilding VLCC- the largest to date.
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June/July 2012

TANKEROperator

01

COMMENT

Is shipping confidence really rising?
Somewhat surprisingly given the fundamentals, overall confidence in the shipping industry increased in the three months ended May 2012, reaching the highest level since February 2011. This was the result of the latest quarterly confidence survey from accountant and shipping consultant Moore Stephens. A number of respondents were upbeat about prospects for the market, despite admitting that any recovery would have to start from a comparatively low base. “If we are still alive now, after all the vessels that have entered the market and all the banks that have pulled out, there is a good chance that better times await us,” said one. Some thought that a recovery in the markets could occur in the short term, typified by the comment from the respondent who noted, “The volume of business activity is expected to increase in the next quarter.” Most, however, were taking the longer view. “We will see the imbalance between tonnage supply and demand corrected in early 2014,” said one. “Until then, we hope to see ship operators, cargo interests and charterers exercising good supply-chain values based on reasonable freight and timecharter rates in order to get the industry through these tough times”. There was a high level of concern about the global economy and particularly about problems within the eurozone. One respondent said, “The European economic crisis is worsening, leaving ship financing at the crossroads”. Two familiar causes of concern were again evident in the responses to the survey, the first of which was summed up by the respondent who emphasised, “There are too many ships coming onto the market”. One respondent foresaw a different kind of problem arising from the surfeit of tonnage, warning, “For the first time in a long while, shipping could face a situation where newbuildings currently being delivered may be rendered technically obsolete in five years’ time by new ships being ordered today which, due to technical innovations, may be up to 20% cheaper to operate.” Meanwhile, despite the recent fall in global oil prices, and consequently in the price of bunkers, fuel costs continued to be a worry. “The ultimate squeeze nowadays really comes from the cost of bunkers,” said one respondent. “On top of the high price of oil, refineries are producing less and less marine product, putting further pressure on bunker prices”. Turning to the prospect of making a major investment in the next 12 months, one respondent said, “There will be excellent opportunities for cash buyers over the next 12 to 18 months, as banks increasingly foreclose, or as distressed owners are forced to sell in order to survive”. Another noted, “There is an opportunity to invest in eco-friendly vessels at very low cost.” Overall, 40% of respondents thought that tanker rates would increase, as opposed to 35% last time. Charterers were the notable exception (surprise, surprise – Ed). Just 18% anticipated that rates would go up, compared to 35%. The number of owners anticipating higher tanker rates was up from 34% to 41% and of managers from 36% to 41%. However, one respondent - without specifying any particular sector complained, “Brokers are not fighting for the best rates. They need to fix so many vessels per day that they no longer care about the levels at which they fix and owners are suffering.” Moore Stephens shipping partner, Richard Greiner, said, “Despite the financial woes in Europe, notwithstanding the slump in the freight markets and irrespective of tonnage overcapacity, our latest survey records an increase in confidence in the shipping sector for the fourth consecutive quarter. “There is little new about the problems, which range from political and economic crises to the price of a good second mate. What is unusual is the severity of those problems, and their confluence at one period in time. And, as is so often the case, each possible remedy brings with it the potential for another difficulty. Fuel costs are a major expense, which shipping can do little to influence for the better. “What it can do – and is doing already – is starting to explore the possibility of a future based on eco-friendly ships powered by fuel other than diesel oil. But, as more than one respondent noted, that places a potential cloud over some of the ships now being built and delivered, which could be made redundant by new technology long before they have served a useful working life. Furthermore, some owners are claiming that eco-friendly designs are being advanced by shipyards as a marketing gimmick to persuade companies to order more ships at a time when we already have too many. “There is no end in sight, for example, to the political and economic strife that is today’s eurozone. And new finance is very hard to come by. Shipping is going to need the continuing support of the banks as it struggles to emerge from its current difficulties. Some argue that the banks have not done – and are not doing – enough. One leading operator has gone so far as to say that shipowners will have to become bankers in order to survive. He has even coined a name for this new hybrid being – the ‘shanker’,” Greiner concluded. I think I just might go out and buy a ship – Ed. Anyone like to join me? TO

TANKEROperator
Vol 11 No 7 Tanker Operator Magazine Ltd 2nd Floor, 8 Baltic Street East London EC1Y 0UP, UK www.tankeroperator.com PUBLISHER/EVENTS/ SUBSCRIPTIONS Karl Jeffery Tel: +44 (0)20 8150 5292 [email protected] EDITOR Ian Cochran Tel: +44 (0)20 8150 5295 Mobile: +44 (0)7748 144265 [email protected] ADVERTISING SALES Melissa Skinner Only Media Ltd Tel: +44 (0)7779 252272 [email protected] SUBSCRIPTION 1 year (8 issues) £195 / US$320 / €220 2 years (16 issues) £300 / US$493 / €336 Subscription hotline: Tel: +44 (0)20 7017 3405 Fax: +44 (0)20 7251 9179 Email: [email protected] PRODUCTION Wai Cheung Tel: +44 (0)20 8150 5291 [email protected]
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June/July 2012

INDUSTRY - MARKETS

MRs – does size matter?
In the following pages, we look at MRs, recycling and publish a bank’s view of the market going forward.
tarting with MRs, since the beginning of this century, the larger category has gone through a major transformation. The size of the MR fleet between 40,000 to 55,000 dwt (MR2) has increased by more than threefold over the past 12.5 years from 344 to 1,174 tankers. In contrast, the supply of 25,000 to 40,000 dwt tankers (MR1, or so called ‘Handies’) has remained fairly static, rising just marginally over the same period, reports Gibson Research. The end result of these developments is that the larger MR fleet is now nearly double the size of the smaller MR fleet, whereas, the situation was the reserve back in 2000. The investment in new tonnage is also dominated by larger MRs, with around 80% of all orders placed since 2005. Here the emphasis has been towards the 47-55,000 dwt size range, Gibson said. To those not directly involved in the day-today operations of such vessels, the owners’ preference for larger MRs may appear to be unwise, considering that the smaller MR fleet is more balanced in terms of supply.

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Both size groups will have a limited number of deliveries over the next few years. However, the number of new additions in the smaller segment will be even less than in the larger category. MR1s also have considerably more candidates for scrapping. Near 13% of the existing smaller MR fleet is still single hull, while 15% of the existing double hulls are over 15 years old. In comparison, just 4% of the larger MRs is single hull, while less than 10% of the existing double hull vessels are over 15 years of age. Another advantage of smaller over the bigger MRs is that they come at a lower investment cost and with lower bunker consumption. Despite all of these attractive points, the fundamental drawback in the 25-40,000 dwt size range is that the trading opportunities are highly restrictive. There is a vast market for these units in the short haul trade within the North West Europe/Baltic and within the Mediterranean. However, there is very little MR1 business for the long haul trade out of the UK/Continent and the Mediterranean (eg,

Source - Gibson research

transatlantic TC2 market) and the situation is more or less the same in the Caribbean/US Gulf, or Atlantic Coast markets, Gibson said. In the Middle East and the Asia/Pacific, the MR market is also vastly dominated by larger MRs. Interestingly, although in the Far East and South East Asia the prevailing ‘reference’ cargo size is 30,000 tonnes, in reality parcel sizes are bigger and vessels traded are by far within the 40- 55,000 dwt range. Therefore, for a local European trader in a guaranteed local market for whom flexibility is not important, the MR1 segment could be an attractive proposition - although limited market opportunities are likely to translate into a lower resale value. However, for those looking for flexibility and/or opportunities for longer haul trades, investment in the larger MR segment appears considerably more attractive. Finally, for the owner, who wants to trade internationally, opting for a larger MR is really the only option, Gibson said. Posidonia is often the vehicle used to announce the latest round of tanker investments. However, this year it was ominously silent. In the first five months of 2012, Greek shipowners placed orders for just three tankers resulting in a mere 300,000 dwt being added to the orderbook, according to figures produced by Gibson Research. During the whole of 2011, Greeks placed 32 tanker orders amounting to 3.6 mill dwt. So have Greek shipowners lost their appetite for tanker investment in newbuildings, or are they being more selective in their approach? In deadweight terms, Greek owners are set to take nearly 23% of the current tanker orderbook still under construction, which considerably outweighs the contribution of any other domicile nation. Greeks also appear to have been more selective in their choice of investment with more emphasis on specialist vessels, such as tankers fitted with dynamic positioning (for the offshore sector) tied into timecharter deals. In addition, Greek orders for LNGCs numbered 33 since the beginning of 2011 and

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June/July 2012

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INDUSTRY – MARKETS

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

several VLCC orders have been converted to LNGC orders to take advantage of a sector where the supply situation is failing to keep pace with demand. Greeks still appear to have cash to spend in the sale and purchase market. Owners have taken advantage of declining asset values and plundered yard resales, as well as conventional acquisitions. Recycling Demolition Prices for elderly vessels have fallen by a quarter in 2012 to date. Owners are encouraged to dispose of recycling candidates sooner rather than later, warned Mark Williams of Braemar Seascope. Addressing the 7th Annual Ship Recycling Conference in London on 19th June, the Braemar Seascope research director told delegates that deflating international steel prices were likely to translate into lower offers for recycling tonnage in the coming quarters. Meanwhile, rapid reductions in the value of the Indian, Pakistani and Bangladeshi currencies against the US dollar are causing difficulties for cash buyers and end users struggling to pass on cost increases to their own customers, despite long-term strong recycled steel demand growth prospects in the sub-Continent. Forex risk for recyclers has been compounded by intermittent limited availability of credit. Buyers’ banks have been challenged by ‘sight LC’s’ – letters of credit that must be honoured on sight, which can be hampered by a shortage of hard currency. Meanwhile, cash buyers paying hard
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currency for recycling candidates are bearing the forex and credit risk of selling in local currency to the recycling facilities. Falling demolition price assessments, as published by the Baltic Exchange, are likely to influence secondhand vessel prices, said Williams: “For example, it could be argued that over-age oil tankers are now priced off scrap, which will lead to increased numbers of younger ships being sucked into the recycling markets.” Williams also presented the hypothesis that spikes in scrapping are driven not only by low freight rates, or high scrapping prices, but by credit crunches. “Credit crunches coincided with peaks in recycling in 1986 (the year the Biffex bottomed out at 550 points and banks had stopped supporting technically bankrupt owners following the savings and loan crisis),

1998 (the Asian financial crisis which led to an Asia-wide credit crunch and high scrapping, despite relatively low values per LDT) and 2008/09 (the global financial crisis).” DNB more positive DNB Markets has raised its tanker rate forecast, on average, by 20% for 2012, 23% for 2013 and 13% for 2014, since its last report published at the end of last year. The bank said that it was more positive on the tanker sector with utilisation estimated at 90% this year, which took into account 20% of tankers slow steaming. With flexibility on the supply side, DNB forecast tanker utilisation to remain at around 90% as strong rates will be met by higher speeds. For the next three years, DNB estimated that VLCC rates will be just shy of $30,000

DNB Rate Forecast
Type VLCC Suezmax Aframax Panamax MR (TD2)
Source: DNB Markets.

2012 27,500 23,000 14,500 16,500 12,500

2013 28,000 24,000 19,000 16,000 13,500

2014 29,000 24,000 19,000 16,000 14,500

2015 30,000 25,000 20,000 16,000 15,500

TANKEROperator

June/July 2012

INDUSTRY - MARKETS
per day on average. Since the fourth quarter 2011 report, VLCC owners have slowed their vessels down to 13 knots from an average of 13.8 knots, the bank said, despite a strong increase in rates into 1H12. This just confirms shipowners’ incentives to slow-steam due to the favourable economics. “We contend that slow-steaming limits downside risks, while it increases the upside risk for short term spikes due to the tight market balance,” the bank said. DNB calculated the current effective tanker utilisation at 90% taking into account a 20% point rise in utilisation as a share of the fleet is trading at an optimal speed. If looking at the utilisation excluding speed optimisation it would fall to 70%. Historically, about 90% tanker utilisation has been the point in the cycle where freight rates tend to overshoot, as witnessed over the past five months. With flexibility on the supply side, DNB forecast tanker utilisation to remain at around 90%, as strong rates will be met by higher speeds. In light of the artificially tight market balance coupled with the total cost of freight representing only 1.2% of the delivered cost of the commodity, the bank said that volatility will be significant over the years to come. The bank said that it expected VLCC rates to range from $50,000 per day down to $10,000 per day, however, due to flexibility on the supply side, DNB estimated that VLCC rates will be just less than $30,000 per day, on average. Varying rates VLCC rates tend to vary significantly depending on which speed/consumption assumptions are used in the voyage calculation. DNB’s tanker rate estimate is based on a VLCC forecast where the bank attempted to calculate what owners would actually earn based on slow steaming and it adopted the voyage calculation by Poten & Partners, which gave the most representative and realistic assumption for a standard vessel. “We contend that VLCC rates are not just VLCC rates as the difference between that reported by Clarkson and Baltic Exchange in 1Q12 was $12,500 per day. Our supply growth forecast is based on mid-year to mid-year and when taking slow steaming into account, we forecast zero effective supply growth over the next 12 months, 2% in 2014 and 1% in 2015,” the report said. Fleet growth may come in even lower than forecast as around 50 mill dwt of the crude tanker fleet has an excess market value of less than $5 mill of the scrap value, DNB said. As for tonne/miles, the bank forecast crude tanker demand of 2.7% for 2012, 2.5% for 2013 and 2.2% for 2014. In its monthly tonne/mile demand model for the VLCC spot market, DNB forecast 29% year on year growth for the first four months of this year, which partially explains the stronger tanker rates seen in the first half of this year. A modest 1% year on year increase in distances was seen in 1Q12, while the second quarter pointed towards an 11% year on year increase in the sailing distance. This, on top of the continued strong volumes, could lead to improving tanker rates continuing into the summer. As for the chemical tanker sector, DNB forecast a market recovery during the second half of this year, instead of 2013, as originally forecast. This is due to a very low orderbook, which equalled 11% when taking the combined chemical/products market into consideration, or 8% when taking into account chemical tankers alone. The combined fleet growth is forecast at 2.2% this year and 2.4% in 2013, while vessel utilisation is forecast at 89.4% for 2012, 90.6% for next year and 91.9% in 2014, DNB said.
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INDUSTRY - UK REPORT

UK shipping – still a world leader
Since 2000, the owning and operating ships in the UK has seen considerable growth, as a result of the Government’s positive policies in favour of investment, training and the UK register.
he UK-owned fleet has increased by some 200%, and the UK-flag fleet – albeit from a very low base – has grown by more than six times, the UK Chamber of Shipping reported. This turnaround was of major benefit to the UK economy. Shipping revenue for 2010 (the latest figures available) stood at £12.6 bill, of which almost £9 bill came from overseas trading. The overall net contribution to Britain’s balance of payments was over £6 bill. Sea transport was fourth in the league table of service sector export earners, with revenues totalling £9.6 bill, equivalent to almost 6% of the UK’s total. As a headline figure, shipping now earns just under £1.5 mill every hour of every day for the UK economy, the Chamber said. In employment terms, the number of new entrant officer trainees in 2009 increased to more than 950, twice the level in 2000 and the highest for at least 20 years. The growth in trainee officer recruitment rose twice as quickly as the number of UK-based ships (see Page 10). Shipping, combined with not only major UK maritime services but the broader interests, including shiprepair and marine equipment manufacturing, lay at the heart of the £56 bill turnover maritime cluster in this country. There was every reason to expect that the fleet’s current expansion would continue in the long term – ensuring that the UK remained Europe’s largest maritime centre and a global leader, the Chamber said. To be sustained into the future, however, this success needed a stable and competitive environment, not least in fiscal policy. The adoption of tonnage tax by shipping companies was conditional on a 10-year commitment to trading and training in the UK. The Chamber said that this required confidence that the regime would not be modified without good cause and adequate

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notice – and that decisions in other policy areas would not reduce the attractiveness of basing shipping businesses in the UK and of training British seafarers. That confidence has been shaken over the last few years by a sequence of changes and reviews. The 2006 reform of the taxation of finance leases and proposed future changes to the capital allowances regime brought uncertainty, which prompted questions regarding further potential fleet expansion and

investment in the UK. There were also challenges in other policy areas – for example, the law concerning the employment of foreign seafarers, currently under consultation. Challenges may also come from outside the UK, particularly in the application of state-aids policy to tonnage tax by the European Commission. It is essential that the Government reestablishes a strong focus on ensuring that its successful shipping policy is actively sustained

UK Shipping turnover by ship type (£ bill).

Source - UK CoS

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June/July 2012

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INDUSTRY - UK REPORT
and that the conditions are right for further growth of shipping operation and employment in the UK, the Chamber stressed. UK tonnage tax In her inaugural speech last March, new Chamber president Helen Deeble said that this year, the Chamber will be engaging in formal consultations on the detail of the UK tonnage tax regime, as well as the European Commission’s consultation on the review of its state aid guidelines for the maritime sector. How shipping will respond to the call to reduce its carbon and sulphur emissions and meet required national targets, continues to dominate, as a key policy area. On carbon, she said that the Chamber was: Committed to pursuing a global solution for shipping on the measurement and reduction of carbon emissions, although it will be a long haul. International industry opinion remains divided over which economic measures shipping should use to reduce its carbon emissions and the debate at global level is not yet close to finding a solution. The Chamber is doing everything it can to lobby against a regional model, as this would be not be effective in reducing emissions, or work well for European shipping. On sulphur: The industry does not believe that abatement technology will be available, or effective in time for the new regulations now less than three years away, particularly in an industry where assets may be replaced on a 30-year cycle. The industry believes that the increased cost of low sulphur fuel will threaten short sea shipping and ferry services to and from the UK, causing a modal shift back to roads as longer sea routes become uneconomic. The report of the Transport Select Committee shows that they share our concerns over gold plating by the European Commission over and above the already exacting MARPOL standards. Piracy in the Indian Ocean continues to threaten the lives and wellbeing of seafarers and the flow of world trade itself. It has risen in both political and public consciousness this year with increasing media coverage, the de-criminalisation of the carriage of armed guards on board ships and a high profile conference on Somalia, called by the UK Prime Minister. She said that this year, it will be seen how development work for Somalia progresses in tackling the roots of piracy. The Chamber will also be closely monitoring the political statements on the payment of ransoms. The Chamber will work with regulators to improve standards wherever it can, recognising that it is the skill, training and experience of the people in the industry that make the difference. While the immediate concern over SMarT funding for training UK cadets has fallen away, UK shipping will still have to face up to national cuts in education funding and continue to recruit new talent for the future. With the current weak employment outlook for graduates, UK shipping companies should be promoting the opportunity for young people to gain a qualification, relevant work experience and a rewarding maritime career at sea, or ashore, she concluded. TO

UK DoT Seafarer statistics
According to statistics provided by the UK Department of Transport on seafarers for 2011, the key findings were: In 2011, an estimated 27,000 UK nationals were working regularly at sea. About 15,000 held qualifications related to handling ships or their engines, while the remainder were employed for other technical or customer service duties. The total number of UK seafarers active at sea was about 5% higher in 2011 than in 2002, the earliest year for which estimates are available for all groups. However, the number of these with qualifications relating to ship and engine handling was 15% lower over the same period. The estimated number of UK certificated officers active at sea in 2011 was about 11,000. This was about 28% lower than in 1997 after taking into account changes in the certification system and 2% lower than in 2010. The average number of officer cadets in training during 2010/11 was 1,820, compared with about 1,000 in 1999/2000. The number of UK officer cadet new entrants was 850 in 2010/11 compared with around 500 in 1999/2000 and 754 in 2009/10.

Thomas’ Stowage New Sixth Edition
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The properties and stowage of cargoes

SIXTH EDITION Revised by Captain G. M. Pepper, Master Mariner

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INDUSTRY - UK REPORT

MCA embarks on wide ranging business plan
During the first quarter of this year, 19 vessels joined the UK Ship Register (UKSR) with a combined gross tonnage of 102,582.
f these new registrations 12 were newbuilds, while the remaining seven transferred in from other flags, the Maritime and Coastguard Agency (MCA) reported. These new registrations came from a variety of ship types and owners. The average age of vessels flagging-in was six years, while the average age of vessels leaving the register was 20. As at the end of March 2012, the UKSR stood at 1,461 ships with a gross tonnage of 17.8 mill. The MCA has embarked upon the implementation of wide ranging business plan for 2012-2016. This covers its entire mandate from Port State Control (PSC), UKSR, waterborne leisure activities through to its own administration costs. In the sections likely to affect commercial shipping is a policy statement saying that the MCA will ensure the survey, inspection and certification capability meets both domestic and international obligations as a flag and coastal state. Among the actions started are the making of optimum use of MCA surveyors’ time to fulfill the international commitment in relation to PSC inspections and national obligations in relation to survey, inspection and certification. Survey work will be delegated where appropriate and necessary, the MCA said. Both staff and customers will be provided with guidance regarding the implementation of maritime safety and environmental policy. As for PSC, the MCA said that it would endeavour to meet the requirements of PSC Directive (2009/16/EC), which entered force on 1st January 2011. This means the inspection of the required numbers of Priority I and Priority II vessels to meet the UK’s ‘fair share’ requirement of PSC inspections in a given calendar year. Seafarers will be examined and certificated

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in accordance with the relevant Code of Practice and statutory requirements. The requirements of the STCW Convention and the Manila amendments will be implemented though the transposition of the revised EU Directive on the minimum level of seafarer training. Surveys, inspections and audits will be conducted and the appropriate certificates, or documentation, issued in accordance with statutory requirements and to timescales that are agreed with the clients in advance. In addition, the work of recognised organisations (ROs) through audits and RO office inspection visits, will be monitored and feedback will be provided and UK delegation policies confirmed at appropriate meetings. Commitments under Directive 2009/15 EC for recognising Lloyd’s Register and ABS will be honoured by participating in EMSA inspections of these ROs. The MCA also said that it would maintain ISO 9001:2008 certification to ensure compliance with quality standards required by PSC, flag state and RO directives. In addition, the agency said that it would increase its customer base of companies with ISO 9001. The business delivery model for its surveyor and inspection services will be changed from a regional to a national basis, promoting greater consistency and exploring efficiencies in the way that the service is delivered. UK Register Turning to the UKSR, the MCA said that it will continue to support the shipping industry and will work constructively with owners and operators to encourage compliance with regularity requirements and will also develop policies to encourage quality vessels to join the UKSR. Among the actions started is the implementation of a strategy to make the UKSR the ‘flag of choice’ for quality

operators in specific shipping sectors. In particular, the MCA said that it will implement a new customer service programme to promote the flag and support the needs of owners. This will emphasise business-tobusiness marketing techniques to existing owners/managers; new owners/managers, including UK-based companies; shipyards; financiers, marine lawyers, cargo brokers and insurers. A centralised system will be implemented for the co-ordination of overseas surveys. Legislation will be amended whereby greater powers will be bestowed on the MCA to refuse to accept vessels into the UKSR, which are not deemed to be in the best interests of the UK. Potential quality customers will be targeted in key locations and sectors of the shipping industry and the MCA will work with the Red Ensign Group (REG) administrations to market the flags as customer focused, quality organisations. Proposals were discussed at the REG meeting held on the Isle of Man in May, including the development of marketing opportunities. As part of the overall plan for the UKSR, the average age of vessels registered should be less than 19 years and a proposal will be developed for a fixed fee structure. To bring the average age to less than 19 years, very old historic vessels will be segregated and older vessels will be targeted for inspection. To lower the regulatory burden for the industry, the MCA said that it would continue to work with the IMO and European legislators without compromising safety. To that end, the MCA will continue to participate in the Red Tape challenge, which aims to cut the overall volume of rules and regulations on the statute book by pursuing a risk-based deregulatory agenda and identifying those that can be safely completely, or partially repealed, or revoked.

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This will include checks to ensure that there is no ‘gold plating’ of international standards within UK legislation. A work plan will be developed to give effect to the final set of recommendations agreed by UK Ministers. The MCA also agreed to contribute to the ‘Moratorium’ of regulations on microbusinesses with fewer than 10 employees from any new domestic regulation, where appropriate. The agency also said that it will work with key industry stakeholders to consider the need for regulation, reducing existing burdens on industry and identifying viable alternatives where appropriate. Policies and standards will be promoted that empower shipowners to manage safe and commercially efficient shipping operations, working closely with stakeholders. The MCA said that it will ratify and update international conventions and European directives by their stipulated deadline and no earlier, but without adversely affecting UK businesses. Where possible, the agency will encourage the reference to, or the direct transposition of, source text from conventions, or directives rather than the reconstruction as specific UK provisions. Work on impact assessments and consultation processes will start earlier in the development of potential EU and international measures. Finally, in line with the rest of the UK Government, the MCA said that it will reduce the cost of its administration by 33% through a range of measures aimed at: Increasing efficiency and effectiveness in the MCA operating model. Policy and regulatory development. Procurement, estate, people and financial management. More effective working practices. By ceasing some low priority activities. In particular, the closer working across Government Departmental Boundaries will be explored to maximise the use of available talent. TO

The Red Ensign Group (REG)
REG is made up from the UK, the Crown Dependencies (Isle of Man, Guernsey and Jersey) and the UK Overseas Territories (Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Falkland Islands, Gibraltar, Montserrat, St Helena and the Turks & Caicos Islands) which operate shipping registers from their jurisdiction. Any vessel registered in the UK, a Crown Dependency or UK Overseas Territory, is a ‘British ship’ and is entitled to fly the Red Ensign flag. The combined REG fleet represents a total of 50.1 mill gt, which places it as the seventh largest flag state in the world by gt. The REG recently held a meeting in Douglas, Isle of Man to discuss various issues of concern.

Making money in a difficult market
Improving economic resilience

SAS Radisson, Hamburg September 19 2012

Technology and methods for cost management in tanker operations Prime mover optimisation, spending prioritisation, simplifying onboard operations

Free event - Register now to secure your place www.tankeroperator.com/hamburg.htm Speakers: Stephan Polomsky, managing director of Offen Tankers (keynote speaker) Ulrich Paulsdorff, managing director, Wallem Shipmanagement Mark Bull, loss prevention manager, Liberty One Shipmanagement Jose Milhazes, business process manager, Stolt Tankers Jan Erik Rasanen, business manager, Energy Solutions, ABB Marine Dimitris Lyras, director, Lyras Shipping (chair).

A

TANKEROperator
Contact

conference
Mel Skinner Sponsorship Manager [email protected] Tel +44 777 252272

Produced in association with

Karl Jeffery, publisher and event organiser Tanker Operator Magazine Ltd [email protected] 44-208 150 5292

June/July 2012

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INDUSTRY - NORWAY REPORT

Oslo ranked second of the world’s maritime capitals
A diverse portfolio of owners, managers and service providers, both technical and commercial, gave Oslo second place in a recent survey of maritime capitals.
enon Business Economics recently performed a snapshot analysis of the major maritime capitals, benchmarking 12 cities in four categories – shipowners and shipping operation, maritime finance, maritime law and insurance and maritime technology and competence. The report said that the top five maritime capitals were, in order of ranking, Singapore, Oslo, London, Hamburg and Hong Kong. While a strong player in all of the measured categories, in the report, Oslo was shown to be in the top position for maritime finance and on the commercial side in terms of shipowners and shipping operations. Sturla Henriksen of the Norwegian Shipowners’ Association said, “We don’t view this so much as a competition between the different cities but rather as a valuable indicator of the strengths of different areas. We believe that teamwork is key to success in this very global business – international challenges demand international solutions. Here in Norway, we hope to inspire others and to partner with others. Many Norwegian shipowners are, for example, also located in Singapore, where they have branches and regional headquarters.” Erik Jakobsen, CEO of Menon Business Economics explained the research methodology, “We wanted to use international statistical data that is publicly available to keep the results as neutral as possible, but at the same time we recognised that this kind of data does not give the full picture on factors such as quality. So the analysis is based on a 50/50 balance between objective and subjective input.” Made up of experts from every continent and from diverse areas of the business, an expert panel was used to come up with the subjective indicators in the report. These 28 experts delivered results that differ to a degree

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from the rankings produced by the statistics, which the report balanced for the final overall ranking. “The mismatch is due to perceptual differences resulting from which part of the industry or which city an expert belongs to and due to the fact that the objective indicators are only partial indicators,” said Jakobsen. Oslo week launched From 30th May to 1st June, about 800 maritime professionals gathered in Oslo for the first-ever Oslo Maritime Week. The organisers said that the Norwegian maritime community was out in full force as the event highlighted the area’s competency in a diverse variety of maritime services, such as insurance, finance, design etc. The Norwegian Shipowners’ Association’s Trond Kleivdal set the tone at the Opening Conference, saying, “Norway is the centre of gravity in the global maritime community.” Key international speakers, such as the Maritime Port Authority of Singapore’s Tan Beng Tee, were also part of the event. Demonstrating the collaboration that exists between Norway and Singapore, she said, “We’ve made a lot of friends (in Norway) over the years.” Those taking part included the Norwegian Shipowners’ Association, Skuld, YoungShip, Norwegian Shipbrokers’ Association, Oslo Shipowners’ Association, Bulkforum, Maritim21, DNV, BI Norwegian School of Management and Kongsberg Maritime, plus many others. Taking place every second year, Oslo Maritime Week will alternate with NorShipping. As a top maritime capital, Oslo, with its internationally leading maritime services sector, is a natural location for such an event to take place, the organisers said. Oslo’s integrated role in the complete Norwegian

maritime cluster also ensures access to key maritime hubs, such as Bergen and Ålesund. “The Oslo region has all segments of the shipping industry. Shipowners and operators can come to Oslo to get a ship designed, financed, classified, insured, chartered and managed,” said Odd Torset, who heads up Oslo Maritime Week. Torset added, “What is unique about Oslo Maritime Week is that it provides an opportunity for the diverse Norwegian maritime services industry to gather in one place. Having these key players all together then makes the event naturally relevant to their international colleagues.” Nor-Shipping Director Vidar Pederstad said, “As part of our efforts to expand our support of the industry, we are actively involved as a key Oslo Maritime Week collaborator. The powerful momentum created in the Oslo region by having both Nor-Shipping and Oslo Maritime Week in alternate years will enhance the international profile of the Oslo region and the Norwegian maritime cluster as a whole.”
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Nor-Shipping director Vidar Pederstad.

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INDUSTRY - NORWAY REPORT

DNV looks into its energy saving crystal ball to 2020
Leading Oslo-based class society DNV has published a summary in advance of an ambitious report analysing the likely emissions reduction and energy saving technology used by the world’s fleet in 2020.
he class society said that its task was to analyse the various technology choices available to the shipping industry and how they would be adopted. Rather than producing qualitative statements about how the global fleet will absorb different types of technologies towards 2020, DNV developed a large-scale simulation model to help answer these and other questions. The model predicted technology uptake in the world fleet by simulating investment decisions, or individual ships given different scenarios on regulatory requirements, world economic growth and future fuel prices. The results reflected the response of individual owners with varying investment preferences and technology costs. Other important factors were learning effects and fuel price volatility. Based on a most likely scenario approach for 2020, the project has identified five key findings, highlighting important considerations for shipowners and operators in the period leading up to 2020. The complete set of findings will be outlined in the final report. However, DNV has given the industry a preview of five key findings analysed at length in the full report. Finding 1: Summary - 30% of newbuildings will be delivered with gas engines in 2020. In DNV’s most likely scenario, the class society predicted a liquefied natural gas (LNG) price prevailing of some 30% lower than that of heavy fuel oil (HFO). In this case, DNV predicted that 1,000 newbuildings will be delivered with gas engines over the next nine years – around 10-15% of the expected newbuildings. These vessels will have either a pure gas engine, or a dual-fuel engine with the additional flexibility to run on liquid fuel. The global sulphur limit assumed to be

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effective from 2020 will have a significant impact on the implementation of gas engines provided the capacity and fuel supply are in place. In 2018-2020, about 30% of newbuildings will be delivered with gas engines. Larger vessels will see greater benefits from running on gas than smaller vessels due to economies of scale in installation and the sheer amount of fuel used by these ships, DNV said. Finding 2: Summary – In 2020, the demand for marine distillates will be around 200-250 mill tonnes The current global demand for marine distillates is about 30 mill tones annually. In DNV’s most likely scenario, the 0.1% limit in ECAs will increase the demand to around 45 mill tonnes towards 2015. However, the big increase will be in 2020, with the introduction of the global sulphur limit. This marks a huge increase in the need

for distillates to 200-250 mill tonnes. In the short term, the use of LNG and scrubbers will only have a limited impact on the need for low sulphur fuel. DNV estimated that the demand for LNG will be 10-15 mill tonnes in 2020, which is about 2-3% of the total LNG consumption in the EU in 2011. At the same time, the consumption of HFO will plummet from about 290 mill tonnes in 2019 to only 80-110 mill tonnes in 2020. Finding 3: Summary – In 2020 newbuildings will emit up to 30% less CO2 than today’s ships, and the Energy Efficiency Design Index (EEDI) will be the driver for two thirds of this reduction. In DNV’s most likely scenario, environmentally efficient designs will gradually improve throughout this decade and a newbuilding contracted in 2020 will, depending on type, emit 10-30% less CO2 than a current but modern ship.

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

June/July 2012

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INDUSTRY - NORWAY REPORT
The largest reduction will be on tankers, bulkers and container vessels, while offshore units only will reduce emissions by 10%. The latter are not included in the EEDI regulations. One third of this reduction will be motivated by cost-efficiency only and would be implemented regardless of the EEDI requirements. EEDI will be an important driver for the remaining reductions, in particular from 2020 when Phase 2 of the EEDI kicks in, requiring new ships to be 20% below the IMO reference lines. Until 2020, the EEDI is not expected to lead to any significant extra costs for shipowners. The necessary measures have a relatively low capital cost. However, speed reduction may introduce added commercial costs. In 2020, more measures will have to be implemented and the cost will increase sharply. Gas fuelled engines will become an important feature, also because they have additional benefits of easily meeting NOx and SOx requirements. Finding 4: Summary - LNG becomes a cost-efficient option for vessels spending more than 30% of their sailing time in ECAs. When the 0.1% sulphur limit is enforced in North America and Northern Europe in 2015, about 40% of the world fleet will be affected. Again in DNV’s most likely scenario, it is predicted that large deepsea ships primarily transiting the ECA areas to get in and out of port will only be impacted to some degree. However, smaller tankers and general cargo carriers, which may spend all their time in an ECA will be significantly affected. The threshold for LNG being a costeffective compliance option is when a vessel spends about a third of its sailing time in an ECA. An even lower LNG price can reduce the time spent in an ECA to 20%. Finding 5: Summary - Scrubbers are not a significant option before 2020. In the most likely scenario, DNV predicted that scrubbers will have limited uptake around 200 installations per year only - until the global sulphur limit is enforced in 2020. The main reason for this is that a low LNG price compared to HFO favours investing in gas engines rather than in scrubbers. Another pointer is that there is a limited proportion of the global fleet spending enough time in ECAs to justify a costly retrofit. The relative HFO/LNG price is an important parameter with this issue, however. The more favourable the price of LNG is to HFO, the fewer vessels will be delivered with scrubbers. The relative difference between MGO and HFO seems to be of less importance to the uptake of scrubbers, as long as MGO is more June/July 2012

Source - DNV.

than 50% more expensive than HFO. This can be interpreted as scrubbers being a substitute to LNG. After 2020, when the global sulphur limit enters into force the picture changes: Ships are required to run on low sulphur fuel, or clean the exhaust all the time. Scrubbers may then potentially be fitted to several thousand ships. As this is a new a relatively immature technology for marine use, there are significant uncertainties, particularly on costs and expected cost reductions, due to learning effects, which are high in the initial stages of technology innovation. Novel technologies are notoriously hard to predict, DNV warned. The class society said that it used a six-step process to come to the above conclusions. 1st Step: Megatrends and external drivers. The project started out by identifying megatrends and drivers for international shipping. These were summarised in what DNV perceived to be the four most important areas that will affect the technology uptake in the world fleet towards 2020. The following four megatrends and drivers were selected: (i) The world economy and demand for transport. (ii) Environmental regulations. (iii) Technology trends. (iv) Fuel trends. DNV then assessed the impact of these trends and drivers on the selected markets – totalling 13 different shipping segments - within the major shipping markets; tanker, bulker, containership and offshore supply vessels. 2nd Step: Future scenarios.

Based on these assessments, DNV developed future scenarios. These scenarios describe four possible futures, depending on how the drivers and trends develop towards 2020. Both optimistic and more pessimistic development outlooks were considered. Together with key industry players, the class society identified the most significant uncertainties for international shipping for the years to come. Using its findings, DNV chose to base the scenarios on the following two uncertainties: (i) Economic growth (and implicitly fuel prices, as well as fleet development assumptions). (ii) Regulatory pressure. The scenario approach gives a range of possible outcomes and allows the implications of these outcomes to be considered. Although DNV has selected what it finds to be the most likely scenario as the basis for the findings in this executive summary, the final report will include a thorough discussion on other scenarios and possibilities. 3rd Step: World fleet. In the project, DNV assessed the current and projected world fleet based on SAI data. The calculations covered the current number of vessels within the 13 segments considered in this report – close to 50,000 ships in 2012, as well as projected newbuildings and scrapping rates towards 2020. As part of this project, DNV conducted a survey among the world’s leading shipping companies in March 2012. The results were used to quantify and/or qualify some important assumptions that were made in the modelling part of this report. DNV said that it had thus taken the pulse of the industry with regard to which technologies
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INDUSTRY - NORWAY REPORT
compliance with the set of relevant regulatory requirements and in terms of their net present value. Key drivers included: (i) Simulated fuel prices and investment costs. (ii) Reduced fuel costs (energy consumption and fuel types). (iii) Time spent per year in an ECA. (iv) Share of annual fuel costs carried by the owner. (v) Shipowners’ preferences in terms of economic horizon and required return on investment. An important feature of the model was that the outcome of an investment decision was time dependent and may lead to technology lock-in effects, as well as cascade effects, due to the technology adoption. This was due to: Simulated fuel prices were uncertain and time dependent. Technology decisions may limit available options for later decisions due to technology incompatibility. The cost of a technology is reduced as more and more ships adopt it due to learning effects. It was assumed that learning would occur across fleet segments. This meant that the initial cost reduction compared to the early adoption of a technology in one segment may trigger a cascade of technology adoptions across the fleet. 6th Step: Reality check, interpretation and analysis. As a final step, DNV carried out various reality checks on the results derived from the simulation model. Beyond the obvious quality check of input/model/output parameters, sensitivity checks were run to ensure the correctness of the results. DNV also compared the results with similar studies undertaken by the class society and other reputable organisations. Discussions and workshops were organised to assess the likelihood of the simulated results.

Source - DNV.

the shipping industry is most likely to implement on its own vessels. A different distinction was made between retrofits and newbuildings. Important parameters used in the modelling work have included shipowners’ investment horizons and required rates of return. Their share of the fuel expenses will be another factor affecting the investment decisions made. Time spent in ECAs was yet another important parameter, which was included in the model assumptions. 4th Step: Technology options. Forthcoming regulations will motivate and/or force shipowners to implement technologies that can impact SOx and NOx emissions, ballast water and energy efficiency. The complete report will present relevant technologies that are most likely to succeed in solving these challenges in the future. In total, 23 technologies were assessed in quantitative terms. The technologies were quantified in terms of: (i) Costs/CAPEX and assumed energy and emission reduction effect. (ii) Regulatory compliance. (iii) Compatibility and overlapping between technologies. Some of the technologies have been assessed, but dismissed from the modelling and simulation work as they are considered to be less cost effective, or too immature at the moment. DNV has also been forced to make some simplifications regarding the technologies, as different stakeholders claim different effects and operational characteristics. 5th Step: Modelling. The assessment of technology uptake was based on a stochastic simulation model
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developed by DNV using the ExtendSim software. The approach taken was to simulate newbuildings and retrofit technology decisions for a representative set of ships during the time period from 2012 to 2020, using regulatory compliance and economic value added as the main decision criteria. In a simulation run, the model initially generated a sample of individual ships that was representative of the operating fleet at the end of 2011. Each ship was assigned specific technical characteristics and owner preferences drawn from statistical distributions representing the diversity of the world fleet. The model then processed each year until 2020. Each year, newbuildings were added to the fleet and older ships were scrapped. For each newbuilding, the model simulated the decision to install one, or more technologies. In addition, for each year and for each individual ship in operation, the model simulated the decision to retrofit one, or more technologies. The resulting technology uptake from a simulation run was as a result of these decisions. When a scenario was analysed, a large number of simulation runs were undertaken to ascertain the effect of uncertain fuel prices and the costs on technology uptake. To simulate the decisions for each ship, technologies were ranked in terms of

Shipping 2020 – DNV’s predictions
Newbuildings in 2020 will emit up to 30% less CO2 than today’s ships EEDI will be a driver for two-thirds of this reduction. 1,000 newbuildings will be delivered with LNG engines towards 2020 assumes an LNG price that is 30% lower than that of HFO. This represents 10-15% of the expected newbuildings (tankers, bulk carriers, containerships, offshore supply vessels). About 30% of sailing time in ECAs can justify an LNG-fuelled engine. Distillate fuel is the most likely choice to meet ECA emission requirements -scrubbers not a significant option before 2020. In 2020, the demand for marine distillates will be 200-250 mill tonnes.

TANKEROperator

June/July 2012

INDUSTRY - NORWAY REPORT
Assumptions A wide range of assumptions were used in the modelling work, the most important being the following: (i) The world fleet composition was based on the updated IMO GHG study and IHS Fairplay World Fleet Database. The fleet is divided into 13 segments and includes all cargo carrying vessels, but excludes passenger ships and service vessels – in total almost 50,000 vessels in 2012. (ii)The volume of newbuildings and scrapped vessels were based on forecasts developed by the Institute of Shipping Analysis (SAI). (iii)Fuel price trends were based on forecasts by the EIA (US Energy Information Administration) and IEA (International Energy Agency) and analysis undertaken by DNV Research and Innovation. The uncertainty in fuel prices was analysed based on data for historical prices available from the EIA (crude oil and LNG/NG) and Clarkson (HFO/MGO). (iv)Technology costs were based on a wide range of sources, from DNV experience data to manufacturers and literature research. (v)Regulations were based on present and future IMO, regional and national requirements. (vi)Time spent in an ECA was based on AIS data from Northern Europe and extrapolated to include the North American ECA. The ECA estimates were also verified against other similar studies. (vii)The shipowner’s share of fuel costs and economic preferences were based on a questionnaire by DNV and verified by experience data from relevant projects within DNV. At a presentation in Athens during Posidonia, DNV’s maritime president Tor Svensen said that owners were looking for a payback time of between three and five years on money invested on new technology. Addressing concerns over the availability of LNG as fuel, he said that he was positive on the development of LNG infrastructure, such as bunkering stations, as several projects were already underway. He thought that the LNG price would decouple from the oil price and for the report, DNV took the middle ground of around 30% less than HFO. He also forecast a two-tier market developing once owners had invested in ecovessels, which will result in more vessels entering the market having lower operating costs than today’s counterparts. It was generally thought that charterers would help drive the introduction of more eco-vessels, as they begin to see the advantages of lower vessel operating costs, which would impact favourably on their costs of shipping cargoes. TO

New concept design launched
DNV has unveiled another conceptual design project, this time involving a Handysize bulk carrier fitted with existing technologies. One of the aims of the designers was not to add cost driving technologies. Although a bulk carrier, DNV said that this particular conceptual design would set a standard, which could be incorporated in other types of vessels, including MRs, in the future. The design – called Green Dolphin – was created by the Shanghai Merchant Ship Design & Research Institute (SDARI) and development partners DNV and Wärtsilä. It was designed to meet all the current and expected air and water emissions regulations. It is aimed at fuel efficiency and is claimed to be maintenance friendly with a high operational flexibility. The hull design was a combined effort by SDARI and DNV and was conceived to improve overall performance at different loading conditions, speeds and sea states. Propulsion efficiency will be increased by the fitting of a wake equalising duct in front of a large diameter, slow rotating propeller. A rudder transition bulb and rudder fins reduce the bulb vortex and recover rotational losses. It will be fitted with a Wärtsilä 2-stroke low speed RT-flex 50 main engine, which will be Tier II compliant. It can easily be retrofitted to dual-fuel in the future. Multiple fuel tanks allow for the strategic purchasing of HFO, low sulphur fuel and distillates. “Design variants are available for fuel switching systems, installation of selective catalytic reduction and exhaust gas scrubbing systems and, in the near future, the use of LNG as fuel,” explained Giulio Tirelli, Wärtsilä business development manager- ship power. “The concept design also includes shaft torque and exhaust gas monitoring equipment to maximise the fuel consumption optimisation possibilities while constantly monitoring emissions,” he said at the design’s Posidonia launch.

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June/July 2012

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BerCom

INDUSTRY - NORWAY REPORT

Seagull security training gets NMA Flag State approval
Here we look at one company, although others are mentioned elsewhere in this issue, notably DNV, Maris and Jotun.
omputer-based training (CBT) specialist, Seagull, has been awarded Norwegian Maritime Authority (NMA) approval for a new, comprehensive ship security training package that is in full compliance with the Manila amendments to the STCW Convention and Code. These new security training courses will be available during September of this year. The revised STCW, which came into force in January 2012, introduces more stringent requirements for on board security training, with particular provisions designed to ensure seafarers are properly trained in case their ship comes under attack by pirates. Seagull has issued more than 10,000 Ship Security Officer certificates since 2003 and these SSO certificates remain in force until 1st January 2017. Anders Brunvoll, Seagull senior course instructor, said: “Getting NMA approval is very important for us, as we have in the past issued Ship Security Officer (SSO) certificates on behalf of NMA, the Norwegian flag state. With the new Security On Board training system we offer three courses and, with continued NMA backing, shipowners can be assured that certification through these courses will demonstrate the proficiency, as well as the competency, of their seafarers in security matters.” The new courses have also been certified by class society DNV through the SeaSkill programme. “This was a challenging process, which effectively required us to start again from basics and produce security training which has been fully checked by DNV against the revised STCW,” added Brunvoll. Under the Manila amendments to STCW, all seafarers need approved ship security training, varying according to the level of responsibility of the seafarer. All seafarers must receive generic security awareness and familiarisation

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training, while those with specific security related roles need appropriate training for their role. Two training levels To ensure compliance, Seagull has developed two new CBT training levels - Level 1, covering security-related familiarisation and awareness, for all seafarers and Level 2 for seafarers with designated security duties. It has also updated its existing Ship Security Officer (SSO) course, which is the designated Level 3 of the Seagull Security On Board training system, in line with the Manila amendments. Level 1 includes two e-learning modules; one on security awareness and one on piracy and armed robbery. These are backed up by a work book with practical exercises and a security familiarisation checklist. Level 2 comprises an on board course for personnel with security duties, which includes the same two e-learning modules on security awareness, and on piracy and armed robbery. This is supported by a workbook with practical exercises.

Level 3 training will comprise the same two modules as Level 1 and 2, CBT 115 Security Awareness and CBT 156 Piracy and Armed Robbery, with the addition of a specific SSO elearning module and workbook. This will be delivered through the CBT 121 Ship Security Officer course. Brunvoll said: “A key concept of the Seagull Security On Board training is that seafarers will be able to start at any of the three levels, depending on their position and duties on board. If required they can then easily move up to a higher level, without repeating any of the elearning modules they have already taken. The training is also designed so that seafarers are more or less obliged to familiarise themselves with the particular security requirements of the vessel they are on and the company employing them.” The new NMA-approved Security On Board training courses will be released in the third quarter of 2012. In the meantime Seagull’s existing SSO course remains valid and any certificates issued based on this course will be internationally accepted until January 2017.

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June/July 2012

INDUSTRY – SATCOMS

Satcoms for all!!
Satellite-based services have moved on at a considerable pace recently, illustrated by the number of announcements from various companies at Posidonia.
n this article, we examine the rise of satcoms given the increased number of services on offer from the satellite companies and their various service suppliers. Much of this growing interest has been driven by crew comfort in an effort to retain seafarers and stop them moving to a company/vessel offering greater incentives in terms of email, internet access etc at little, or no extra cost to themselves. FleetBroadband and VSAT seem to be the most popular satcoms services with shipowners who seem to be opting for different systems at different levels. For example, a communications package that suits one owner/operator does not necessarily suit another. This is mainly driven by cost, but is also obviously dependent on the size of the fleet and the area of operation, etc. Apart from crew recruitment and retention, another attraction for owners and operators is the increase in data transfer from ship to shore and vice versa, as more and more vessels are being fitted with technology enabling the officers and shore management team to monitor the vessel’s operation. Much of this traffic is handled by email. Another is the escalating piracy situation off East and West Africa, plus the Indian Ocean. For example, Beam Communications, a wholly owned subsidiary of World Reach, recently announced separate satcoms piracy solution for Iridium and Inmarsat-based, secure communications on board a vessel. Beam’s new PotsDOCK Extreme Covert Piracy Solution utilises the Iridium Extreme satellite handset and the Beam Covert Antenna system to provide a dedicated system for a safe room, or citadel on board a vessel. The system ensures that essential communications

I

on board the vessel, such as the ability to alert authorities in the event of a piracy attack, can be maintained even if all power or communication equipment has been cut off or destroyed by pirates. The system couples the Iridium Extreme handset and the Beam Extreme PotsDOCK to provide the Master and crew with access to voice communications, tracking and alert functionality from the system. In the event of an attack, an alert can be raised and the vessel can be tracked immediately. Greg Ewert, Iridium’s executive vice president, global distribution channels said; “It not only works everywhere off the global, reliable Iridium communications network, but it is specially designed to enable connectivity for vessels in dangerous situations.” Ewart told Tanker Operator that ‘panic’ buttons can be installed all over a vessel, connected to the system in the citadel and a short code can be used to contact the Dubaibased UKMTO in case of an attack. Back up power can also be provided in case of a shut down. “Over the past 18 months we have seen an increasing demand for Beam’s piracy solutions with the total number deployed getting close to 500 units,” said Michael Capocchi, managing director, Beam Communications. “Safe and secure communication is extremely important for addressing the growing concern of piracy attacks on both commercial and leisure vessels. Beam specialises in anti-piracy communication solutions developed for the marine market and are certainly meeting these needs.” The new PotsDOCK Extreme Covert Piracy Solution was launched at Posidonia, where key Beam partners (AST, Marlink, Otesat

Maritel) were promoting the solution. Initial orders have already been received and the new piracy solution will be distributed by all the major Beam resellers. Beam is a strategic manufacturer of both Inmarsat and Iridium satellite products for multiple satellite phone providers. Turning to the Inmarsat satellite network, Beam’s new Oceana 800 Covert Piracy Solution provides a dedicated system for a safe room or citadel on board a vessel. The Beam-designed antenna is intended for covert placement and to be less likely to be spotted and targeted prior to an attack, the company claimed. Oceana 800 operates with the Inmarsat FleetPhone service. In the event of an attack an alert can be raised and then the vessel tracked immediately. “As with maritime safety, communications during a piracy situation can literally be a lifeline,” said Peter Blackhurst, head of maritime safety at Inmarsat. “This solution from Beam is a simple but effective covert deployment of the Inmarsat FleetPhone service that will offer some reassurance to captains and crews facing the threat of piracy.” Iridium Pilot In addition, Iridium has launched a new faster broadband voice and data communications system– Iridium Pilot. It is claimed to have enhanced durability to withstand harsh conditions and it is compatible with Iridium NEXT and is powered by Iridium OpenPort. It is claimed to be a fully global operation with a solid state design with no moving parts. For broadband it claims bi-directional data speeds of up to 134 kb per sec. It consists of three independent voice lines with separate data link, all of which operate simultaneously. The above deck equipment consists of a small, lightweight, fixed, electronically steerable, phased array antenna, claimed to be ideal for reducing maintenance costs and for maintaining connectivity. For large commercial vessel, Iridium said that the new system has both Internet and email access, VPN access to corporate networks, VSAT back up, shipboard PBX integration, crew calling and crew email and Internet use.
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Beam’s Inmarsat system can be seen on the left and Iridium’s is pictured on the right.

June/July 2012

TANKEROperator .

INDUSTRY – SATCOMS
Iridium currently has a 200 MB promotion programme until the end of this year, whereby the price charged will be the same as for 100 MB usage. This service is available for all current and new Iridium Pilot maritime broadband customers, the company explained. As for the harsh conditions mentioned earlier, with the growth in the use of the Northern Sea Route (NSR) across the Arctic, Iridium claims to be the only concern that can communicate in this region via satellite. FleetBroadband popular Rival Inmarsat said that 30,000 active FleetBroadband terminals are now in service on vessels worldwide. This milestone was reached with the installation of a FleetBroadband 500 on the Olympic Future, a Greek-flagged Suezmax, by Inmarsat’s distribution partner OtesatMaritel. Springfield Shipping, the vessel’s management company, selected FleetBroadband as part of an integrated communications solution. “This solution is an optimal match for our ICT needs and we are pleased with the comprehensive service offering and first-class support that we have received from OtesatMaritel,” the company said. Frank Coles, president of Inmarsat Maritime, said: “This is a significant achievement that yet again demonstrates the high regard and continued demand for FleetBroadband in the maritime industry. We have now seen more than 4,000 terminals added to our FleetBroadband installed base since the beginning of the year. “Shipowners and managers are attracted to the global reach and reliability of FleetBroadband, and they value the high quality service that they receive from Inmarsat and our partners, ” he said. Otesat-Maritel CEO George Polychronopoulos said: “Otesat-Maritel has been a leading distribution partner for FleetBroadband since its launch, so we are delighted to have activated the 30,000th terminal and help the service reach this major milestone. “Our partnership with Inmarsat has been very successful, bringing together the technical excellence of Inmarsat services with Otesat-Maritel’s insight into the global shipping market and our high-quality customer service,” he said. At Posidonia, Marlink, claimed to be the world’s largest maritime communications service provider, presented its re-developed WaveCall standardised VSAT offering. WaveCall services enable owner and
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operators to choose affordable connectivity according to different requirements and budgets, backed-up by Marlink’s multi-tier customer and technical support provided by experienced engineers specialising in standardised and customised maritime VSAT, the company said. “WaveCall services are already being used aboard hundreds of maritime transport vessels globally and to ensure that we continue to meet the changing requirements of our shipping industry customers we have now lowered the cost of entry even further and introduced new capabilities in order to provide even greater choice,” said Tore Morten Olsen, CEO, Marlink. The new, expanded WaveCall portfolio consists of two service packages. WaveCall offers standard connectivity up to 1.5 Mbps and starts at just $1,000 per month, while WaveCall™ Premium, which, in addition to offering up to 3 Mbps broadband connectivity, also offers flexible CIR to enable multiple voice lines and the capability for business critical applications such as VPN, remote monitoring and telemetry services. “Regardless of the service chosen, our 25 years’ experience in maritime satcoms and ability to provide first-line support with our own engineers and technicians, ensures customers can be confident in the availability of their communication services,” Olsen said. “Longevity and stability are also vital to our customers and the fact that we own teleports and are a specialist division within the major satellite company, Astrium Services, means that we are able to provide this key support.” “WaveCall gives us highly competitive maritime connectivity with fixed, low monthly expenditure based on the bandwidth and performance required across our fleet,” said Gunnar Eide, surveyor maritime ICT & automation at Odfjell Ship Management; the leading parcel tanker concern that contracted Marlink to supply WaveCall to 40 vessels in March 2012. “Our WaveCall services from Marlink enable us to benefit from an easier to use, smarter and more flexible VSAT network. We have worked closely with Marlink to ensure we have the right configuration for our fleet and the deployment process has been straightforward. We are able to interact directly with Marlink for service and support and they ensure the service runs to our satisfaction,” Eide added. WaveCall is a low-cost of entry service for owners and operators wishing to provide standard office type facilities on board, such as email and web browsing for seafarers in

addition to operational communication. WaveCall Premium offers the same, with higher bandwidth and competitive pricing, but also user-definable CIR and supports vessel and fleet efficiency by enabling the use of custom applications, such as those designed for reducing fuel consumption and emissions, or improving service and maintenance processes. Commenting on Sealink, Marlink’s customised services that was traditionally used on more specialised vessels, the company said that with the growth in development of bandwidth heavy technical IP applications for fleet management and efficiency and high levels of flexibility required, some more traditional vessel owners and operators are turning to customised VSAT to fulfill their requirements. Marlink said that it is able to design its Sealink services specifically tailored to a customer’s needs and feature detailed Quality of Service guarantees. “WaveCall standardised VSAT services are advanced enough to cover the majority of connectivity applications for tankers and other standard type vessels, but the bandwidth, flexibility and scalability that has helped Sealink become established as the customised VSAT service of choice for offshore, cruise and ferry companies may also be relevant to some maritime transport customers,” Olsen, said. “The considerable throughput and global availability provided by our Sealink services can support large, or specialised maritime transport fleets to ensure crew- and operational communication and technical applications are always available. Because all of our services may be used by maritime transport customers, we work closely with them to ensure that they have the service that best suits their needs, whether based on WaveCall or Sealink.” Flexibility Olsen told Tanker Operator that the Ku-band VSAT system was in his opinion the best product, as it gave users more flexibility and objectivity. For example, chemical tanker operator UACC recently opted for a VSAT service from Marlink. Each vessel has around 7,000 sensors fitted on board. He said that in general, satcoms prices were less that 1% of a vessel’s total operating costs and that a three-month free trial could be offered. Olsen explained that Marlink had set out to lower the entry barrier by reducing costs, offering a smaller antenna, thus making the fitting of satcoms “less costly and risky for vessel operators”.

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June/July 2012

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INDUSTRY - SATCOMS
He agreed that satcoms were becoming more influential in monitoring vessel operational efficiency when machine-tomachine type data can be sent from ship-toshore for remote support and monitoring purposes. Another vessel operator to take advantage of Marlink’s offering was Maersk. The Danish giant has installed Inmarsat FleetBroadband through Marlink on 400 vessels, including tankers. This contract included a defined volume at fixed cost. At Posidonia, Globe Wireless said that it latest software R6 for Globe iFusion will be launched in July 2012 and will be upgraded free to all existing users. The software will feature the following enhancements: a fixed-multiple voice solution for FleetBroadband, VSAT auto-recovery tools and a pre-paid/sponsored email solution. R6 for Globe iFusion takes the existing GlobeMobile multiple voice lines, currently on over 1,000 FleetBroadband vessels, using it as a VoIP solution. This enables multiple calls using Globe’s digital quality voice (DQV) technology on both the GSM and VoIP phones over a standard FleetBroadband terminal. The fixed-multiple voice solution allows up to five inbound and outbound calls over DQV, while the standard circuit switched voice line remains free at all time for the Master’s use, or for emergencies. One of key features of the fixed-multiple voice solution is the ability to assign international phone numbers from over 60 countries to each phone line on board, thus reducing the cost to call the ship from shore as no 870 number is required. Customers who have offices in the UK, Singapore, Italy, etc, can have a local incountry number that will be routed to the vessel and rate charged will be the same rate as if they were making the call from ship to shore. The new software will support up to eight VoIP handsets on board the vessel and POTs handset plugged directly into the i250. Each handset is configured from the shore via Globe iPortal allowing a simple name to be assigned, an international inbound number if requested, PIN codes to restrict outbound calls and split billing for sub-accounts. PINs can be created as needed either fleet wide, or per ship. Even pre-pay PINS may be used that are independent or tied to a GlobeMobile GSM account. In the case of a chartered vessel, the charterer would have a unique PIN and all calls will be billed under a sub-account in the customers invoice each month. R6 for Globe iFusion also contains additional VSAT features developed to keep VSAT terminals online, requiring less backup L-Band usage. Automated scripts monitor the VSAT system and will attempt to auto-recover it with no intervention by technicians or crew. If auto-recovery does not work, the Globe iFusion, via L-Band backup, allows the Globe Wireless VSAT technician remote access to all the core components and systems on board. “This new feature assures the customer that over 95% of all outages are recovered remotely. We have found that for every one vessel that does require a visit another 20-25 vessels are brought back online remotely, saving the customer thousands of dollars per month.” said Brad Rogers, director VSAT engineering. “With our live monitoring, typically within one hour of any outage, our engineers are already online checking the system and coverage. If there is an issue, most vessels are recovered within 15 minutes after remotely accessing the vessel,” he said. R6 for Globe iFusion will also include a pre-paid and sponsored email solution that customers have been asking for. Via Globe iPortal customers will be able to set up sponsored monthly quotas with message size limits, allowing the customer to control how much, sponsored email the crew can use. These settings can be configured fleetwide, or specific for each crew member allowing officers more usage for example, or as a bonus for good work. The pre-paid account can be tied to the crew members GlobeMobile GSM account allowing them to share the pre-paid balance between GSM calls, pre-paid fixed-multiple voice, email and SMS. Crew members will be able to pick up any fixed-multiple voice handsets, enter a PIN and password and pay the same rate as the GlobeMobile service. If a crew member has a GlobeMobile number and uses a fixed-multiple voice line, the end user on shore will see the GlobeMobile number on his or her phone as the caller ID rather than the vessels phone number. If there is no GlobeMobile number associated with the crew member then no number is displayed. These features will be available on VSAT and FleetBroadband terminals. David Kagan, president Globe Wireless said. “We are providing unique voice solutions, going far beyond what our competition offers, as well as great VSAT enhancements that have never been seen before in the market. This is just the start of several new updates and features we have planned for Globe iFusion® and our customers in the coming months.” The new software is due to be launched in the Philippines, go live at the end of this month and in full production during July. iFusion has already been installed on around 750 vessels, which will get a free upgrade. Antennas Intellian chose Posidonia to show its new VSAT communications technology. The company unveiled the new Intellian v110GX 3-Axis Ku-Band VSAT communications antenna with fully optimised Ku-/Ka- band antenna reflector and radome, enhanced to meet the RF performance and capability required for the future. The 1 m v110GX was designed from the ground up to provide services for both current Ku-band services, as well as Inmarsat’s upcoming Global Xpress service. The modular GX conversion kit includes the GX BUC/LNB assembly, GX feed assembly and GX ACU incorporating the modem. The antenna’s functionality will easily transform into GX high throughput broadband service globally when Inmarsat’s I-5 Ka-band satellites become operational in 2014, the company claimed. Intellian’s new generation gyro-free satellite search function enables the v110GX to acquire and lock onto the satellite without requiring separate input from the ship’s gyro-compass. The 3-Axis stabilised pedestal assembly offers unlimited azimuth, enhanced elevation range and cross-level to ensure service quality even at high latitudes and extreme operating conditions, the company said. All Intellian antenna systems are designed, manufactured and tested to withstand the company’s standards for vibration and extreme shock in all sea states and weather conditions. The v110GX VSAT antenna system meets DNV Standard No.2.4, Class C and MILSTD-167-1A specifications. VSAT and 3-axis

Marlink’s CEO Tore Morten Olsen.

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TANKEROperator

June/July 2012

INDUSTRY - SATCOMS
TVRO warranties are now increased to two years for parts and one year for labour. Intellian has also appointed Otesat-Maritel as a distributor and will include the company’s full range of VSAT and TVRO antennas in its equipment portfolio. In addition, Otesat-Maritel will be commissioned as an Intellian service centre for Southeastern Europe, Middle East, and Africa, the companies announced. Imtech Marine and ITC Global have entered into a long-term strategic alliance to provide a maritime VSAT satcoms network. Under the alliance, Imtech Marine will supply, install and service shipboard maritime electronics and communications systems. ITC Global will design, supply and provide engineering support for the global satcoms network. Imtech Marine and ITC Global have developed a global VSAT network that is claimed to deliver a reliable satellite communications to the maritime industry. This network, the Imtech Marine global VSAT/Ku-band network, has automatic beam switching along all of the major shipping lanes. Eric van den Adel, managing director of Imtech Marine, said: “Imtech Marine has an extensive global network and vast knowledge and experience in the maritime market. ITC Global has extensive knowledge in setting up private, customised VSAT networks. Together we are able to offer our customers in the maritime market unparalleled service and systems. “Our alliance with ITC Global means that our maritime customers get the benefits of having automatic beam switching and seamless connectivity for their vessels across the globe. Connectivity packages are just one of our global services. We also have the possibilities to carry out remote monitoring and maintenance through our global technical assistance centres, which are available around the clock. In addition, our portfolio of services is supported by our global network, which now consists of 89 locations worldwide. Ultimately, all of our services aim to help customers reduce their total cost of ownership,” he concluded. Joe Spytek, CEO of ITC Global, said: “We are delighted to have formalised our historical working relationship with Imtech Marine. Our expertise in building private, custom networks will be highly complementary to Imtech Marine’s portfolio of shipboard services. We appreciate the trust that Imtech Marine has put with ITC Global, and look forward to continue working together in the maritime industry.” June/July 2012 Turning briefly to satnavs in the shape of ECDIS, Thomas Gunn will offer Transas’ Navi-Sailor 4000 ECDIS in the company’s total navigation solution, while Transas will in turn offer Thomas Gunn’s paper chart management service. The latter includes Admiralty and international hydrographic office’s paper charts and publications as part of its ECDIS package. The corrections and updates are normally sent out by email compressed by about 60%. In addition to offering the Transas ECDIS, Thomas Gunn will also be able to benefit from a comprehensive service network through most of the major ports worldwide. The company will also supply the Transas Admiralty Data Service (TADS), including official ENCs, SENCs, AVCS, ADP, and T&P Notices to Mariners. Thomas Gunn is about to release its Voyager 4 service package and said that currently around 4,000 ECDIS were at sea. Around 2,000 vessels are currently using the Voyager service. Performance standards On the eve of its latest product launch, maritime electronic navigation specialist MARIS has moved to reconfirm that its ECDIS solutions meet performance standards set out by the International Hydrographic Bureau. MARIS is due to launch its ECDIS900 version 4.5.4.76 this month, with all of its distributors set to be notified when the software is released so that they can download software from MARIS ftp-servers. IHO has long expressed concern that some ECDIS may not display certain combinations of chart features and attributes correctly and on rare occasions may fail to display a navigationally significant feature. According to IHO, “This appears to be caused by anomalous behaviour in some ECDIS software, especially early versions.” In the run up to the launch of its 4.5.4.76 system, MARIS has responded directly to a latest IHO circular, issued in February and addressed to hydrographers, which makes explicit the intergovernmental body’s understanding of the scale of the problem. The circular, ‘Update Report on IHO Action concerning ECDIS Software Issues’, signed by IHB director Robert Ward, cites an IHO ENC data presentation and performance check whose findings were submitted to the IMO Maritime Safety Committee (MSC) in May. IHO said that it had checked the performance of systems from 15 out of 25 recognised manufacturers of type-approved ECDIS, many of which included the most well-known brands in the industry. It reported that only one third of the systems scrutinised functioned as expected. MARIS technical director, Philippe Kah, said that it had been deemed critical that the company took swift action to ensure that its software was acknowledged as meeting the standards being set for ECDIS by the IHO, given that mandatory ECDIS will be phased in across the industry from July, 2012. “As part of the consultation process between IHO and ECDIS manufacturers, we have put our systems through the stringent tests set by the IHO and submitted our report to them, along with the test support documentation and screen dumps required in the latest circular,” he said. “The previous generation ECDIS900 did not match the exhaustive criteria set out in the IHO report in four minor areas, none of them critical, but we have been able to advise our distributors that the new ECDIS900 V4.5.4.76 is fully compliant with IHO tests.” In its latest reports, IHO concluded that up to one third of systems failed to display some significant underwater features in the ‘standard’ display mode. In a further third of cases, the underwater isolated danger symbol TO was not always used.

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

TANKEROperator

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INDUSTRY - PIRACY

Pirate swarm attacks are a myth - Risk Intelligence
Every summer shipping companies are warned about large swarms of pirate boats off the Horn of Africa – mainly in the Southern Red Sea and the Bab el Mandeb (BAM) Strait.
he warnings are based on reports from ships in the area and put out by both security companies and governments. The only problem is that pirate swarms do not exist, according to the Danish intelligence company Risk Intelligence. “We have monitored these rather panicky reports since at least 2008, when a European Naval vessel reported swarms of up to 20 pirate skiffs. But it is a misunderstanding every year. The phenomenon can be understood and described as something else every time it is reported,” said Nis Leerskov Mathiesen, chief analyst with Risk Intelligence. The swarm attack reports always emerge when the monsoon brings rough weather to large areas of the Arabian Sea and Indian Ocean. The rough seas result in small boat traffic moving to more sheltered waters, most significantly fishermen and smugglers. Both these groups use small boats similar to those of the pirates. And both groups manoeuvre in such a way that they that can frighten a master of a merchant vessel. Fishermen will move at high speed towards merchant vessels, either to protect their nets, or to benefit from the wake and wash of a ship. Smugglers are often ‘jumping’ from ship to ship at high speed to stay hidden from radar surveillance. Pirates are sometimes present in the area as well. They hide in larger groups of boats. They then attack and lookouts confuse background traffic with pirate accomplices.

T

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

Fear mongering “We have never seen any proof that an attack is carried out by more than a small handful of skiffs. So the repeated reports of 10 and 20 strong ‘swarms’ is a question of wrong observation in the heat of the battle and shortsighted analysis by those who put out the warnings. The effect is fear mongering,”
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claimed Mathiesen. To assess the reports and analysis of swarm tactics as a new phenomenon, first we should look at the reports themselves, then establish what the normal situation in the areas is, and finally assess the tactical advantages and drawbacks of such an attack style and to what extent it would suit the Somali pirate modus operandi, Risk Intelligence said. It is worth repeating that the reports of swarming attacks increase particularly in the monsoon seasons, with an emphasis on the south-west monsoon (June to September). During this period, Somali pirates are pushed out of the eastern Gulf of Aden, Arabian Sea and Indian Ocean by the high waves and strong winds. Those pirates who can reach the Red Sea and BAM thus increase their efforts in the area. These are probably mainly the Puntland-based pirates and the currently inactive Sool-based Warsangeli clan pirates, for whom BAM is next door, the company explained. Thus, the pirate activity in this area is comparatively higher than in the transitional seasons. Two-thirds of all incidents involving four or more skiffs in the area as recorded in MaRisk were reported during the south-west monsoon months. The lack of quality information already mentioned is further aggravated by the reporting body’s editing and omission of detail, especially notable when the reporting

body is not ‘at home’ in the Horn of Africa area and fails to understand the importance of such detail for assessing the highly dynamic Somali piracy situation. Organisations with local specialisation such as UKMTO, NATO’s operation ‘Ocean Shield’ or EUNAVFOR ‘Atalanta’ attempt to weed out many reports, which they judge as lacking credence. Evidence suggests that outside analysts and many security providers lack an understanding of what constitutes the everyday activity in the sea area, Risk Intelligence said. Risk Intelligence provides consulting services to private and governmental clients on security threats and risks. The company has been specialising in analysing threats from and interaction between piracy, organised crime, terrorism, insurgency and military conflicts since 2003. It advises on preventing maritime security incidents at both vessel and company level, as well as providing maritime security analysis to private and governmental organisations. Risk Intelligence takes a holistic approach to these threats and includes studies into the types of organisations and tactics, as well as the root causes of their existence. The company said it believed that a thorough understanding of the threats in combination with insight into the clients' needs enables it to produce high-quality threat and risk assessments and consulting. TO

TANKEROperator

June/July 2012

INDUSTRY - PIRACY

n April, the Security Association for the Maritime Industry (SAMI) announced the first companies to successfully pass through the initial stage of its international private maritime security company (PMSC) accreditation programme. The three companies, which volunteered to act as a pilot group, were MIRIS International, Securewest International and Spirit Security Services. Each company underwent a stringent due diligence check during Stage 1 of the SAMI programme. The checks applied to a range of different areas of the company’s operations, to ensure compliance with a range of minimum standards. The checks are in line with guidelines issued by the IMO and ensure that legal, compliance and quality issues have been adequately addressed. Later in the same month, IMSA joined a list of companies which have all undergone stringent due diligence checks during Stage 1 of the SAMI programme. The company volunteered to join the pilot programme to be checked against the SAMI Standard, the company was then checked by an independent third party organisation, National Security Inspectorate (NSI). Following this, Ambrey Risk, Control Risks, Solace Global Maritime and Special Tactical Services LLC all passed through the initial stage of SAMI’s international private maritime security company (PMSC) accreditation programme. Cook said; “The fact that companies are now accredited vindicates the work in setting the standard and the mechanism and will increasingly provide shipowners with the reassurance they need when contracting with a security provider.” Eight companies Ambrey Risk said that it was one of only eight companies to successfully gain the Stage 1 accreditation. Some 40 concerns were selected June/July 2012

SAMI’s accreditation programme up and running I
Thus far eight companies have passed Stage 1.
to apply for accreditation in the pilot scheme. Ambrey Risk commercial director, Shaun Webber, said: “This is a sure step in the right direction by the maritime security industry and proves our commitment towards greater regulation and compliance. This is something we take very seriously and being one of the first eight companies to compete Stage 1 accreditation shows we are a mature company and have the necessary business processes and practices in place providing our clients the assurance that they are engaging with a respected company employing a high level of professional and ethical standards.” The accreditation programme was launched on 1st February this year and will see maritime security providers, within the SAMI’s membership undergo a three-stage process of due diligence, systems checks and site visits. The programme is managed by SAMI, with accreditations performed by an independent third party certification body, the National Security Inspectorate (NSI). Work on developing the standards and accreditation programme had been ongoing for the previous eight months, prior to its launch. Further guidelines under development as laid down by industry and the IMO, the programme will assess the capabilities, experience, corporate standing and resources of PMSCs. According to Cook, speaking at the February launch; “It has been no mean feat to forge a united front from an industry, which has always followed its own path. We are pleased and proud to announce the launch of what we believe to be a rigorous and significant means of assessing global maritime security providers.” The developments were led by SAMI and supported by NSI who have been conducting a pilot scheme that successfully concluded in January 2012. The three stages of the SAMI Accreditation Programme build to form a full and complete

picture of the subject company. Stage 1 is a due diligence check, which focuses on the financial, legal and insurance elements of the PMSC. Stage 2 is an in-depth review of the company and involves a physical verification of their premises, systems and documentation. While Stage 3 will see checks on deployed operations. During the development of the Programme SAMI has worked in consultation with a range of leading marine insurers, flag states, shipping associations, seafarer welfare organisations and with vital input from the maritime security industry. Insurance Meanwhile, security concern Sea Marshals became the first company to gain an insurance policy, which complied with the requirements laid down in BIMCO’s Guardcon contract. Launched in March 2012, Guardcon provides an industry standard contract for the employment of security guards on ships. In particular. it addresses concerns over the relationship between the Master and the head of the security team on board a vessel. Sea Marshals signed documents for the policy at the end of March to ensure it was already in compliance with Guardcon before its industry launch. Thomas Jakobsson, chief of operations for Sea Marshals said: “Sea Marshals has worked hard to make sure we comply with Guardcon. Guardcon gives the whole industry a standard contract when using guards on board ships. It specifies many things that a security provider has to live up to and has set a minimum standard for insurance. “This ‘minimum standard’ is much higher than most security providers currently offer but we are pleased to have secured insurance to make sure that we comply with all the regulations in the new Guardcon contract from the very first day,” he said.
TO

TANKEROperator

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INDUSTRY - PIRACY

New Mozambique Channel route opposed
The International Chamber of Shipping (ICS) has opposed a new recommended route for all ships through the Mozambique Channel.
t a meeting of the IMO’s SubCommittee on Safety of Navigation (held 2nd- 6th July) in London, the ICS opposed a move to establish a new recommended route for all ships in the Mozambique Channel that would be around 1,000 miles long. This proposal was made by Comoros, France, Madagascar, Mauritius, Mozambique, the Seychelles, South Africa and Tanzania,

A

having been given impetus by studies conducted by the World Bank. ICS director marine, John Murray said: “ICS is very concerned with this proposal for a new recommended route in international waters, which will result in all vessels following the same proposed track. “This will increase the risk of collision to the hundreds of ships that would be using the scheme at any one time, particularly given the

current lack of Vessel Traffic Services in the region. The concept could also set an unwelcome precedent for the management of deepsea navigation elsewhere and will require very careful consideration by IMO. “The compelling need for this proposed measure remains clear and no statistical evidence has been provided regarding shipping casualties, or near misses in the Mozambique Channel. This omission makes it particularly

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TANKEROperator

June/July 2012

INDUSTRY - PIRACY

“

Piracy of course is a major problem in this region, and the implications to safety and security of introducing such a routing measure, in effect bunching ships together as they enter a high risk area, have also not been addressed by its supporters,
- John Murray, ICS Director Marine

”

difficult to quantify the anticipated benefit that the proposal would deliver,” he said. It has been advised that the main aim of the proposal was to reduce the risk of collision and grounding in the Mozambique Channel. However, despite vessels favouring certain routes, shipping currently is free to use the entire width of the Channel, which is in international waters. The proposed measure would seek to concentrate shipping into very restricted lanes

and could potentially increase the risk of collision, the ICS stressed. Wide channel Even at its narrowest point, the Mozambique Channel is over 200 miles wide and today many ships make use of this width to keep well away from the routes used by transiting tankers and similar vessels. “Piracy of course is a major problem in this region, and the implications to safety and

security of introducing such a routing measure, in effect bunching ships together as they enter a high risk area, have also not been addressed by its supporters,” Murray said. The ICS co-ordinated with its member national shipowners’ associations to ensure that governments attending the IMO meeting questioned the proposal for such a routing measure in the Mozambique Channel. TO

STCW amendments mean security training
There are three levels - all crew will have to undergo ‘Security Awareness’ training, as part of their basic training; those with specific security duties will undergo additional training while Ships Security Officers (SSOs) will have training much as it is now, explained Sean O’Keeffe, managing director of TheTraining-Wing. He explained that The-Training-Wing recruits training staff based on their experience, qualifications and desire to develop students. The security instructors are recruited from extensive military backgrounds and possess a vast knowledge of both hostile and commercial security. “This experience enables The-TrainingWing to deliver all aspects of security training to the highest of standards. It is these principles that have enabled us to grow rapidly yet still offer professional and affordable services that can be always tailored to the needs of our respective students and clients alike,” O’Keeffe claimed. The company is approved to conduct the following training on a global basis: Ships Security Officer (SSO). Company Security Officer. STCW 95 (4 Basic). Security awareness training. Port facility Security Officer. In addition, the following training is offered Static guard force security. Anti-piracy. Force protection. Hostile environment. Terrorism and the threats posed. Counter abduction/kidnapping. Instructors can be deployed worldwide at short notice, the company claimed. TO

Quantico system claims to eliminate armed guards on vessels
Quantico Maritime Solutions (QMS) has claimed to have developed a single structure for dealing with piracy, which does not involve putting armed guards on vessels. QMS has taken technology previously used primarily in land based operations. This is an early identification system of potential threats at a distance of up to 25 miles from vessels. This technology is combined with hardened, deployed assets that have the ability to intercept, evaluate and engage those threats, if necessary, before they can get within two miles of vessels, the company said. Since the QMS system is a totally independent operation, there are no security personnel on board vessels. This eliminates all potential liability for any security activity from the vessel owner or the ship’s Master. The proactive and defensive nature of the system will ensure that there is no damage to a client’s vessel by preventing a threat from ever getting within firing range of that vessel. Due to the advanced design of the system, it is anticipated that customers will receive substantial discounts on current War Zone surcharges for their P&I and Hull coverage, based on current input from the insurance industry, QMS said. QMS also said that it is currently booking convoy operations beginning in the third quarter of this year. TO
29

UK says fire first
Armed guards have permission to fire first to fend off Somali pirates, under new guidance issued to UK-flagged ships. UK Foreign Office minister Henry Bellingham said the new advice was clearer than earlier versions and was intended to June/July 2012 give security teams instructions on when they can act. Bellingham told MPs: “The starting point must be our current common and statute law – which is pretty clear on what you can and cannot do.”

TANKEROperator

TECHNOLOGY - EMISSIONS CONTROL

Technology study conducted on product tanker
At the 9th annual Green Ship Technology Conference held in Copenhagen recently, a paper was presented on a comparison study of abatement technologies theoretically fitted to a 38,500 dwt tanker*.
Denmark. Three different abatement technologies were compared to meet the forthcoming IMO ECA emission levels. The study is based on retrofitting the tanker and compared low sulphur fuel, LNG as fuel and scrubber technologies. Various scenarios were discussed and a financial evaluation was made considering the operational profiles, fuel prices, ECA and non-ECA operations. The private Danish industry initiative Green Ship of the Future launched the new study in which a group of companies joined together to

T

he paper was written by Christian Klimt Nielsen and Christian Schack, both of Green Ship of the Future/FORCE Technology,

Principal Particulars Nord Butterfly
Length, oa……………………………182.86 m Length, bp……………………………174.50 m Breadth, moulded……………………..27.40 m Depth, moulded……………………….16.80 m Draft, design……………………………9.55 m Draft, scantling………………………..11.60 m

compare various abatement technologies to fulfill the IMO regulations. The study was put together with the help of the following Danish companies, which are all members of Green Ship of the Future initiative: MAN Diesel & Turbo. Alfa Laval. Maersk Maritime Technology. NORDEN. Danish Shipowners’ Association. Schmidt Maritime. Elland Engineering. Maersk Tankers. Lloyd’s Register. Green Ship of the Future. The objective of the study was to compare potential solutions able to meet the requirements of the IMO regulations regarding SOx in an ECA in 2015 and globally in 2020. In 2015, the requirements within the ECA areas call for a reduction of sulphur content in the fuel to 0.1 %, or alternatively the equivalent level measured in the exhaust gas. Similarly in 2020, the global requirements will be a reduction of sulphur content in the fuel to 0.5 %, or alternatively the equivalent level measured in the exhaust gas. A scenario with a global sulphur cap entering in 2025 was also considered.

The three operational modes chosen to evaluate the technical and economical feasibility of a retrofit conversion were: Low sulphur fuel (MGO) – base case scenario; scrubber technology and LNG operation. The vessel chosen for this study was NORDEN’s 38,500 dwt product tanker, Nord Butterfly, one of a series of eight similar vessels. The service speed at design draft, including a 15% sea margin, is 14 knots. Data drawn for four of her sisterships indicated that they operated on average 13% of their voyage time in an ECA with a maximum of 17% recorded. The table below provides information on the assumed number of operational days per year at sea and in port. In addition, for the percentage of time sailing in an ECA, the corresponding number of days is also shown. The average daily fuel consumption of the main and auxiliary engines running on HFO, or MGO is outlined below. The average fuel consumption was in the range of 60-70% MCR. M/e at sea HFO = 28.7 t/d MGO = 27 t/d Aux at sea HFO = 3.7 t/d

Vessel operation profile based on 50% ECA
Deadweight, design…………………...29,000 t

Non ECA
Deadweight, scantling………………...38,500 t Main engine………….MAN B&W 6S50MC-C Power………...9,480 kW MCR @ 127 rev/min.

ECA 110 57.5 182.5

Total 220 115 365

Days at sea Days in harbour, idling Days in harbour, unloading

110 57.5 182.5

Source: NORDEN.
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TECHNOLOGY - EMISSIONS CONTROL
MGO = 3.5 t/d Aux in harbour, idling HFO = 4.3 t/d MGO = 4.1 t/d Aux in harbour, unloading HFO = 4.3 t/d MGO = 4.1 t/d All the scenarios considered were based on a 10-year period spanning 2015-2025. Given the tentative date for the entry into force of the global sulphur cap of either 2020, or 2025, the earlier date was considered as part of the base case, but 2025 was also considered for a number of cases to determine the sensitivity of investment decisions to this date. Assuming the global sulphur cap enters into force in 2020, the base case scenario for a shift to MGO in an ECA is shown below. In case the global sulphur cap enters in 2025, the MGO fuel scenario for 2020-2024 would
Base scenario: MGO 2015 - 2019 Non ECA ECA Consumption at sea (ME) Consumption at sea (AE) Consumption at port, idling (AE's) Consumption at port, unloading (AE's) HFO HFO HFO MGO MGO MGO 2020 - 2024 Non ECA ECA MGO MGO MGO MGO MGO MGO

Due to limited capacity of the LNG tanks (total volume is 700 cu m, externally placed on the main deck), the range of the vessel when running on LNG is limited to around 4,500 miles. This is based on a voyage from Suez to the Baltic Sea. If the vessel is trading in an area where the distance between ports is less than this range, it is assumed that the vessel will run on LNG all the time and that the gas can be bunkered in the various ports of call. For comparison purposes analyses are also made for conditions where LNG would be used only inside an ECA. The LNG scenario for LNG used in both ECA and non-ECA is also shown below, assuming the global sulphur cap is 2020. In case LNG is used only inside an ECA, MGO would be used for the main engine as of 2020 outside the area. A main factor in determining the use of

HFO

MGO

MGO

MGO

LNG operation fuel scenario.

LNG is the cost: if the LNG price is less than HFO, then the main engine will run on LNG outside the ECA in the period 2015 – 2019. However, if and when the cost of LNG is higher than HFO, then the vessel would run on the bunkered HFO under the same conditions (the retrofit solution has left the HFO tanks intact). Different cost scenarios were considered as - HFO = $650/t; HFO-MGO spread = +$100 +$800/t; LNG = $450, $550, $650, $750/t. In the financial analyses, it is assumed that whatever the selected price levels for the different fuels, they remain constant throughout the period 2015 - 2024. The cost difference between 0.1% and 0.5% sulphur is assumed to be negligible. The cost of LNG will depend heavily on where it would be purchased, as there is no global LNG market/pricing yet and whether it is fixed relative to the oil, or gas price. Hence in view of the significant market uncertainties, values should be considered only as indicative. Low sulphur fuel The base case is defined as the reference tanker in original as-built condition; in case of operation in ECA, the vessel will shift to low sulphur fuel (MGO) in order to comply with the prevailing emission requirements. Low sulphur fuel referred to in this study comprises fuel with not more than 0.1% sulphur in the case of ECA operation as of 2015. In addition, it comprises fuel that will satisfy the global sulphur cap of 0.5% as of 2020 (or 2025). To keep it simple, all of these

Base case fuel scenario.

change and be similar to the fuel scenario for 2015-2019. The scenario for installing a scrubber system would entail running on HFO at all times for both the main and auxiliary engines is shown below. The scenario for the use of LNG as fuel for the main engine depends on whether or not LNG is used inside, or also outside, an ECA.

Scrubber installation principle. Scrubber fuel scenario.

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low sulphur fuels are referred to as MGO (marine grade oil, ie distillates). The expectation is that the price difference between 0.1% and 0.5% sulphur fuel will be limited. No major modifications are required in order to run on low sulphur fuel, but for extended operation on MGO, it will be necessary to install a fuel cooler to increase viscosity to a sufficient extent. It should have a capacity of between 25 kW and 50 kW and can be placed parallel to the fuel pre-heater of the main engine. The cooler’s cost is in the range of $30,000 – $50,000. Attention must also be paid to lubricating oil: depending on the duration of continued operation on MGO, it will be necessary to apply an appropriate type of system, or NaOH compartment and tank. Scrubber. Free fall lifeboat. Exhaust gas pipes, scrubber water pipes, etc. Funnel top structure. Scrubber auxiliary machinery and pipe connections. The additional auxiliaries’ fuel consumption for the scrubber operation, including pumps is shown below. In case of an ECA operation, the auxiliaries will run on MGO. Additional auxiliaries consumption HFO at sea………………………0.8t/d HFO in harbour, idling…………0.2t/d HFO in harbour, unloading…….0.4t/d The scrubber intended for the Nord Butterfly is designed for fully automatic operation and requires only minimal attention from the crew. In the event of a breakdown, the exhaust gas is sent through by-pass chimney until the scrubber is ready for operation. Normal operation of the scrubber system is undertaken by using a control panel placed in the engine control room. The scrubber can be operated in automatic mode, or semiautomatic mode. When operating in auto mode, the ‘engines running’ signal starts the scrubber and the signals from the ship’s GPS determine whether the scrubber operates in seawater mode or freshwater mode in a predefined manner. Normally the engine’s fuel flow index determines the amount of sea water used in the scrubber and/or the caustic soda dosing to the system if in fresh water mode. The performance of the scrubber is measured continuously and the adjustment of the different operational parameters is controlled accordingly. According to the MEPC guidelines, the scrubber system will come with manuals approved by the authorities, containing instructions in the proper use of the exhaust gas cleaning system and how to report the performance of the system to the authorities if asked. The manuals in question is the SECA compliance plan, SCP-B, Onboard Monitoring Manual, OMM, and the EGC – SOx technical manual - scheme B, ETM-B. These manuals provide the technical information to ensure proper operation and reporting of the Exhaust Gas Cleaning unit installed on board in order to comply with MARPOL Annex VI regulation 14.4. They must be stored on board the ship for surveys. Caustic Soda, or sodium hydroxide solution is a strongly alkaline liquid, thus making it very important to follow the health and safety guidelines. Alkalis have a decomposing effect on proteins and it may gradually penetrate the deep tissues unless the adhered alkali is completely removed. In particular, if the eyes are exposed to an alkali, great care should be taken since eye tissue is rapidly affected, causing a lowering, or loss of vision. Operators that handle sodium hydroxide must be required to observe the operating standard for safe operations. For this, it is necessary to provide education and training concerning safe handling of alkalis. The emissions from the scrubber system are carefully monitored and logged in order to comply with current regional legislation and demands of relevant classification societies. The scrubber control system will alarm the operator of any exceeding limits. During the operation of the scrubber in freshwater mode, the water cleaning system will generate sludge. This sludge can be treated as other normal sludge from ships’ engine rooms. However, incinerating it on board the vessel is not allowed. If the “normal” sludge is not incinerated on board, the sludge from the scrubber water cleaning system can be mixed with this sludge and treated in the same manner, ie delivered to the port waste reception facilities. The amount of sludge from the scrubber water cleaning system will amount to 2.5 liters/MWh engine output, which is around 10 % of the usual sludge. Scrubber water sludge will be 20% solid and 80% water. The scrubber installation chosen for this study is based upon the experience gained by Alfa Laval – Aalborg on the scrubber installation on board the Ro-Ro vessel Ficaria Seaways, (ex Tor Ficaria) - a project which is also a part of the Green Ship of the Future cooperative. Today, the vessel has logged more than 4,000 operational hours with the scrubber installation and it is still working as designed and installed. Thus the study scrubber installation is expected to be technically feasible and should not cause any major problems in installation and operation on board the tanker. There will be a need for crew training with respect to operation and maintenance of the scrubber installation. Lloyd’s Register has prepared a conceptual design review of the proposed installation and found no undue problems. A more detailed design should, however be prepared before any firm conclusions on the class review can be made.
33

Aft ship with scrubber installed.

cylinder oil for the main and auxiliary engines. The total adaptation cost is considered negligible compared with the cost of purchasing MGO and is not taken into account in the financial analyses of the different scenarios when comparing with the option to fit a scrubber, or to use LNG as fuel. Scrubber solution The exhaust gas scrubber system removes sulphur oxides and particulates from the exhaust gas. It is a hybrid system being capable of operation both with freshwater and seawater. The shift between these operational modes can be made as flying changeover while the scrubber is in operation controlled by a GPS signal giving the position of the vessel. The running of a scrubber system will include the following removal work necessary on board the vessel:- Removal of funnel, deck platforms and ladders, exhaust gas pipes and free fall lifeboat. As for the installation, this will include:Deck extension, pillars, ladder and platforms. Sludge tank (internal structure). FW circulation tank. June/July 2012

TANKEROperator

TECHNOLOGY - EMISSIONS CONTROL
Block and bleed valve arrangement. Gas piping system. Ventilation system. Inert gas system. Sealing oil system. LNG tank. Fuel gas supply system. LNG piping system and valves. Auxiliary systems. Safety equipment. Instrumentation and control system. The fuel consumption for an LNG application for the main engine at sea = 21.9 t/d HFO; for the MGO pilot fuel for LNG operation = 1.4 t/d; for the auxiliaries MGO consumption = 0.3 t/d. The most crucial aspect for the future success of LNG as a fuel is the implementation of, and adherence to, adequate safety standards. Both the technical and human aspects of safety must be fully addressed, to ensure all persons involved in LNG handling are equipped with the correct information and can respond in the correct manner. For technical safety aspects, unified standards and specifications can go some way in ensuring safe LNG operation. Harmonisation of standards both for LNG bunkering (ISO 28460), and for LNG as a fuel (IGF code), will ensure consistent safety standards for vessels operating with LNG. On the human side, training of the crew in LNG handling and operation of LNG specific equipment is required, for example ME-GI training courses will be available and equipment vendors will offer the same. Onshore staff will also require similar training, and in the case of LNG bunkering, the responsibilities of personnel must be clarified to ensure a safe process. A further issue is the public perception of LNG, which is harder to address directly but nonetheless important to maintain that LNG is a safe alternative fuel. Availability of LNG is also an important issue to consider when considering a conversion and many projects are underway to develop LNG bunkering terminals at ports in the European ECAs. However, should LNG not be available, the conversion of the main engine to ME-B-GI still allows for operation on conventional fuel oils. Full fuel flexibility provides operators with reduced risk with regard to fuel prices and availability without compromising engine performance. Operating LNGCs on gas is not new. There are many years of experience in operating LNGCs on the ‘Boil off gas’ using steam turbines and dual fuel diesel electric (DFDE) engines. In these cases, the vessels will operate on gas directly from a fuel tank, which has also been tested on smaller projects using the DFDE concept. The ME-B concept for the main engine is also proven technology and the ME-GI concept, although developed, tested, and approved by class in principle, is yet to be installed on a vessel. However, the GI technology is not new, so the fitting of the ME-B-GI engine will not introduce any major technical challenges. Furthermore, installation of gas tanks and auxiliary equipment will be familiar to many shipyards and will smoothly facilitate vessel conversion. Financial analysis In the following, the two retrofit alternatives to the base case are considered from a financial perspective. Based on the respective investment costs (CAPEX) and operating expenses (OPEX) of the retrofit options versus the added operational cost of the base case associated with the shift to MGO, as required by the regulations, the net present value (NPV) and payback period are determined when opting for the scrubber, or LNG solution instead of the base case. Hence the NPV and payback results are provided relative to the base case, ie if the NPV and payback are positive for a chosen alternative, then that solution could be financially more attractive than the base case under the selected circumstances. To calculate the NPV and payback time, a discount rate of 9% is assumed and the savings period is 10 years (2015 – 2024). The NPV and payback results are presented as a function of fuel cost spread between MGO and HFO and as a function of percentage of operating time within the ECAs. Scrubber solution The CAPEX for the scrubber solution is based on the quotes from three shipyards. The cost of retrofitting a scrubber system is about the same as the equipment investment costs. However, there will be a modest increase in OPEX due to the required pumping power and caustic soda usage in the case of a closed loop operation. The system could operate for a considerable period of time between maintenance. From a financial perspective, the scrubber alternative is more attractive if the vessel was to trade for a reasonable amount of time in an ECA. Both the NPV and payback time are sensitive to the spread in fuel costs between HFO and MGO. For a cost differential of around $350 per tonne, the payback time is around three years

LNG conversion Conversion of the existing 6S50MC-C engine to ME-GI dual-fuel engine requires that the MC engine is first converted to a ME-B type with electronically controlled fuel injection. This requires installation of hydraulic equipment for the electronically controlled fuel injection system and the replacement of the camshaft for the exhaust gas valve actuation. A further benefit of converting the MC-C engine to ME-B type engine includes improved specific fuel consumption (SFOC) during Tier II mode operation. During the engine conversion, the additional GI conversion can also take place simultaneously. This requires the installation of new cylinder covers with gas valves and gas control blocks, with all ancillary piping, and the gas chain pipes to supply the engine with gas. Additional control systems and instrumentation are also

Aft ship with LNG tanks.

required to fully convert the engine to ME-BGI type engine. The retrofitting of a LNG system is a major undertaking and includes the following work on board the ship: Removal of the following equipment and structures: Deck pipes and electrical cable pipes in area for LNG storage tank foundation and deck houses for LNG equipment. Grating/platform in CL at A-deck in way of new LNG storage tank foundation. Installation of the following equipment and structures: Foundations for LNG storage tanks. Deck houses for LNG equipment including foundation. Rerouting/reinstallation of deck pipes, electrical cable pipes and pipe foundations. New grating, platforms and ladders for LNG storage tanks. Foundations for new LNG pipe system. Main engine conversion from MC-C to ME-GI. Fuel gas supply system.
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TECHNOLOGY - EMISSIONS CONTROL
for a vessel operating 100% in an ECA, a little over four years for 75% ECA operation, six
CAPEX for scrubber installation Scrubber machinery and 2,600,000 equipment Steel (150t) / pipe / electrical installations and 2,400,000 modifications Design and classification 500,000 cost Off-hire cost 340,000 20 days@17,000 USD/day TOTAL 5,840,000
CAPEX for scrubber installation.

USD USD USD USD USD

years for a 50% ECA operation and eight years for a 25% ECA operation. If a payback time of around five years was considered as acceptable, then the time spent inside an ECA must be more than 75%. For a vessel spending 50% or less in an ECA, it would be more financially attractive to switch to MGO, the report said. For the Nord Butterfly with only a 13% ECA operation, the payback time would work out at nine years with a $350 per tonne spread between HFO and MGO. These figures have been worked out at an assumed HFO cost of $650 per tonne. Of course, the actual costs prevailing at any one time will have an affect on the NPV and the payback time one way or another. LNG Solution Taking the option of converting a vessel to burn LNG as fuel, there are a number of factors that will influence this decision. From a technical perspective, such a conversion is feasible yet complex. From an operational perspective, there are many other issues to be considered, including specially trained and qualified crew, LNG bunkering procedures, safety during operations and bunkering, bunkering locations, gas venting, a limited maximum range when running on LNG and components’ maintenance. Another main driver for choosing LNG is the cost of the gas. The payback time is obviously very sensitive to the cost of the fuel at any given time. If the LNG can be
CAPEX for LNG installation LNG machinery and equipment, main engine 4,300,000 conversion Steel (300t) 2,000,000 Design and classification 500,000 cost Off-hire cost f680,000 40 days@17,000 USD/day y TOTAL 7,560,000
CAPEX LNG installation.

purchased for $100, or even $200 per tonne less than HFO, it becomes financially attractive for an ECA operation of at least 50%, assuming a payback time of not more than five years is acceptable. If the LNG cost is comparable with the $650 per tonne benchmark for HFO, then it becomes attractive for at least a 75% ECA operation. If the LNG becomes more expensive than HFO, this option only becomes interesting for vessels operating in ECAs for a high percentage of time. For a spread of $350 per tonne between HFO and MGO and an LNG price of $100 per tonne less than HFO, the payback time is around three years for a 100% ECA operation. At 50% ECA operation, the payback time is about seven years. If a payback time of five years is deemed necessary, then the HFO/MGO spread would have to be $500 per tonne. However, for the Nord Butterfly with her 13% ECA operation, the payback time would exceed 10 years. Any financial benefit will depend upon the cost spread between HFO and MGO. If this option were to be used purely as a fuel inside an ECA, then the payback time would be such a length that it would only interest vessels operating more than 75% inside an ECA. For a cost spread of $350 per tonne between HFO/MGO and with LNG at $550 per tonne, the NPV and payback time would be much the same as for the scrubber alternative. The vessel’s installed engine model is an important issue when considering a conversion to LNG as fuel. Newer engine types with electronically-controlled injection are cheaper - around $800,000 - to convert to LNG operations, thereby reducing the CAPEX and shortening the payback period. Conclusion The report concluded that it is possible to reduce, or remove SOx by converting an existing tanker. In the case of the Nord Butterfly, with her 13% ECA operation, the payback periods will be long and the most favourable option from an economic viewpoint will be to switch to MGO when operating in an ECA. A scrubber’s payback time is mainly sensitive to the HFO/MGO price spread and less sensitive to CAPEX and the absolute HFO price. ECA operations of 50% and 100% give a payback time of three and six years, respectively, assuming the HFO/MGO spread is $350 per tonne. If the global sulphur cap is put back to 2025, then the payback period will increase by a further 1.5 years. The LNG solution is around $1.7 mill more

expensive than installing a scrubber. If the LNG is used only inside an ECA, the payback periods will be long, except when the vessel is 100% trading in an ECA If the LNG is also used outside an ECA, the business case becomes more interesting with a payback time of three to 4.5 years for 100% and 50% ECA operations respectively, assuming a price spread of $350 per tonne and an absolute HFO price of $650 per tonne, plus an LNG price of $550 per tonne. As for the scrubber solution, the payback period is most sensitive to the HFO/MGO spread. However, it is also sensitive to the price of LNG relative to HFO. This price differential is very difficult to calculate as the LNG infrastructure is still fairly unknown. This solution could be more attractive to those vessels fitted with an ME type engine, as the conversion from MC to ME could save $800,000. It could also benefit a newbuilding. Since the start of the ECA project, new technology is now available and the use of methanol in a dual-fuel engine and/or using dimethyl ether (DME) based upon on board methanol conversion looks to be another alternative, the report said. As a result, Green Ship of the Future is also looking at a comparison to the current solutions with both a methanol/dual fuel engine and a DME solution together with a group of partners. TO REFERENCES The authors acknowledged the following references - ECA Retrofit Technology – Scrubber Retrofit Description, Schmidt Maritime / Elland Engineering, Document no 20119008-02 – edition 0/1. - ECA Retrofit Technology – LNG Retrofit Description- Steel work on upper deck, Schmidt Maritime / Elland Engineering, Document no 2011-9008-03 – edition 0/1. - Green Ship of the Future - Emission Control Area Retrofit Technology Study Conceptual Design Review of Scrubber Option & LNG as a Fuel Option, Lloyds Register, 24 November 2011. - Technical Outline Specification of a LNG Fuel Gas Supply System for 2-stroke main engine TGE, 2011, 1.2575 TH11/TSP 0000/0011. - Green Ship of the Future, SECA Project – ME-GI retrofit Description, MAN B&W, 2011. - Green Ship of the Future - ECA RetroFit Technology Technical Report, Green Ship of the Future, 2012. *See also DNV feature on page 15.

USD USD USD USD USD

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Alfa Laval studies SOx emissions reduction
Alfa Laval has also produced a study paper on the methods of reducing SOx emissions to 0.1% in ECAs by 1st January 2015 and globally down to 0.5% by 1st January 2020.
he timescale for the reduction of sulphur emissions were agreed and ratified back in 2008 at the IMO and seem unlikely to be changed. The company warned that shipowners should by now have strategies in place to comply with the new rules, but many havn’t. There has been some resistance to the speed and scale of the reductions among EU member states, both from shipping lobby groups and from some politicians, especially in the Baltic region. However, Alfa Laval said that it was very unlikely that the new rules would be amended, or disappear, despite EU members states being put under pressure from their shipowners’ associations. Given the advent of exhaust gas cleaning technology in many other sectors of industry,

T

it seems that this technology will inevitably become part of shipping’s environmental compliance. Basically, shipowners are faced with three options – MGO, LNG and exhaust gas cleaning. The simplest option, according to Alfa Laval, is to switch to MGO. However, the cost will be high, possibly meaning that a vessel’s fuel bill will account for 60-70% of its total operating costs, instead of up to 50% as of today. The difference in price between HFO and MGO is currently around $300-$330 per tonne and in the past, this differential has climbed to as high as $500 per tonne. This price gap is extremely sensitive to the world’s economy, and although it is currently at a low ebb, it is expected to climb again shortly. Should this occur, then the price gap will increase, Alfa

Alfa Laval’s PureSOx process.

Laval said. In addition, analysts are predicting a shortage of distillate fuels. Europe already imports some 30 mill tonnes per year and, once the new regulations take effect, another 50 mill tonnes per annum will be needed. Also distillate fuel for marine consumption will have to compete with land-based fuel consumption. Another problem is that there are no refinery investments expected. The second alternative discussed is the use of LNG as fuel. However, Alfa Laval said that the LNG market price is currently unrealistic and there are other drawbacks. There is no worldwide LNG bunkering structure in place and the insulated tanks needed on board ship will have to be three times larger than normal fuel tanks. The on board requirements are also very strict. There is also some doubt being expressed as to the environmental impact of burning LNG as fuel. Although it is a clean fuel, if perfect combustion is not achieved, there can be a small release of methane, which is a relatively potent greenhouse gas, Alfa Laval said. The third option is to install an exhaust gas cleaning system. While the maximum sulphur content in fuels used on board vessels will be limited to 0.1% from 2015, exhaust gas cleaning systems that reduce SOx emissions to the same extent are already IMO approved. Alfa Laval claimed that this technology allows shipowners to continue to operate on HFO instead of more expensive MGO, while still meeting the IMO guidelines on SOx emissions. For newbuildings, installing exhaust gas cleaning systems doesn’t present a problem. However, when it comes to a retrofit on board an existing vessel, a number of factors must be taken into account. The major question is whether it will be feasible to fit a system on board a certain vessel, given its type, design
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and size. Also important considerations are the vessel’s operating profile and annual fuel consumption while sailing in an ECA. In financial terms, the larger the vessel and the more hours it operates, the more fuel it burns and the more attractive this proposition is in terms of saving on fuel bills, Alfa Laval claimed. High cost The company acknowledged that the cost of retrofitting a scrubbing system, including the vessel’s downtime involved, can be high. However, if the vessel regularly trades within ECAs then the payback time is said to be one, or two years. Obviously, the opportunity to continue to use HFO is a highly positive factor in fuel cost terms, thus allowing the owner to remain competitive in an extremely tough market. A few owners have chosen to go down this route with favourable results, Alfa Laval said. The study then went on to explain the reasons why the take-up of exhaust gas cleaning systems has been slow. Lobbying and other dissenting comments were one possibility. In addition, shipowners were still hoping for a reprieve from the new rules and the uncertainty leads to a reluctance to invest. Some owners do not want to be seen as ‘guinea pigs’ for the new technology. Then there is the eternal triangle between the shipowner, charterer and scrubber manufacturer. If an owner expresses an interest in purchasing a scrubber system, the charterer will not pay any extra on the hire, as he or she does not seem to be aware of the forthcoming legislation. Today in many cases, the fuel bill exceeds the charter fee. Therefore, Alfa Laval said that an owner will be expected to install a scrubber, absorb the cost and maintain a reasonable level of charter hire in 2015, in order to safeguard a company’s competitiveness in the long term. Currently, this triangle appears to be in deadlock. Yet, it will come as no surprise to hear in 2015, a charterer say to an owner – “you expect me to pay double the price for fuel? Why is there no scrubber installed?” Why invest now? Some shipowners reason that with a payback time of one, or two years, starting in 2015, why invest now? As usual, many owners are waiting until the last minute and in 2014, Alfa Laval expects chaos to reign. Ballast water treatment regulations will also be looming, so they will need to change their BWT systems, as well as installing exhaust gas scrubbers. By then, all the shiprepair yards will be fully booked and scrubber suppliers will be unable to keep up with demand. The owners who have sat on the fence will be forced to switch to expensive low sulphur gas oil while waiting for the equipment supply to catch up with demand, the company said. To enter the exhaust gas cleaning market, Alfa Laval introduced the PureSOx, another in its ‘Pure thinking’ range of environmental equipment to cope with the swathe of regulations. With a cleaning performance down to 0.1% sulphur or less, this exhaust gas cleaning system is claimed to be the first multiple inlet system to hit the market. This means that it can be configured to utilise just one scrubber to clean the exhaust gases from the main, as well as the auxiliary engines. The system is based upon the inert gas equipment, which has been used by the tanker sector for 40 years. Rene Diks, Alfa Laval’s manager marketing & sales, exhaust gas cleaning, said; “For the retrofit market, where space and weight are critical issues, it is beneficial to be able to supply a single scrubber that handles exhaust gases from all the ship’s engines. Other advantages include lower energy consumption, less piping and lower maintenance costs.” PureSOx can operate on either sea water or fresh water. The ability to operate with sea

PureSOx cut-away drawing.

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water provides savings in caustic soda and fresh water consumption. In areas of low alkalinity, the system will switch to fresh water mode. When operating with fresh water, the water used for cleaning the exhaust gas is circulated in a closed system with no discharge to the environment. Alfa Laval’s high speed separation technology is used to clean the effluent to ensure compliance with water discharge criteria. To minimise the energy consumption of the scrubber, the water flow is automatically adjusted to the engine power. It is also designed to vary the water flow depending on the water flow of the fuel. The company said that based on its own experiences, shipowners are slowly starting to conclude that installing a scrubber system is the most viable alternative to deal with the upcoming low sulphur regulations. Alfa Laval recently sold a system to a Dutch-controlled drycargo vessel, which normally trades within the North European ECA. The Spliethoff-managed ship has a combined engine output of 28 MW, making its scrubber system the largest sold thus far. Another system is fitted to DFDS’ Ro-Ro Ficaria Seaways, which treats the exhaust from a 21 MW MAN B&W main engine. Thus far, the system has completed more than 4,000 operating hours. The company admitted that exhaust gas cleaning will not be the answer to every shipowner’s prayers. In the future, new technology will be needed to make MGO and LNG more financially viable and maybe completely new fuel alternatives. The clock is ticking, Alfa Laval concluded, as the scrubber manufacturers all agree that there will be a glut of orders for the systems around 2015, which will be difficult to handle and it should also be noted that the current legislation is unlikely to be postponed. TO

“

For the retrofit market, where space and weight are critical issues, it is beneficial to be able to supply a single scrubber that handles exhaust gases from all the ship’s engines...lower maintenance costs
Rene Diks, Manager, Alfa Laval

”

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Data analysis via a fuel efficiency controller
For the past few years, Singapore-based DIMAR-TEC has been working on fuel and energy saving concepts, which has resulted in the launch of the Fuel Efficiency Controller (FEC).
he company claimed that by using the FEC, savings potential on existing vessels are in the range of 20- 40%. Around six to 12% can be achieved without installing costly technology, for example propeller modifications, DIMAR-TEC claimed. The challenge is to measure the key performance indicators (KPIs) with an accuracy of 1-3% in order to identify small variants in operational behaviour. From a data quality standpoint, it is important to differentiate the measurement tolerances in ‘accuracy’ and ‘repeatability’ and their effect

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on the system data. High ‘repeatability’ is important for data evaluation based on trending, the company said. Fuel consumption data must be compared against a baseline to minimise the impact of ambient conditions, such as tropical, or Arctic. To achieve an acceptable accuracy, a full correction, as per ISO 3046, must be undertaken. Armed with the data in digital format, additional work for the crew can be avoided, as can human error when reading and/or writing, transfer reliable data automatically from ship to shore and create automatic

reports for evaluation. To address the above and to ensure reliable data collection and processing, DIMAR-TEC developed the FEC. Together with two German partners, the company developed a shaft power sensor, which is also able to measure propeller thrust, as this is an essential value to determine the propeller’s efficiency. In order to realise and maximise fuel savings, the operator must motivate the crew to use the information gathered from the data to improve the vessel operation. This can be achieved in two ways, either by data evaluation by an operator (where the FEC

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provides the data), or decision support tools. which provide all the ready instructions to the crew on how to optimise the vessel. Today, it is good practice to work with the EEOI and have a SEEMP in place, the company said. Reporting One of the most basic on-board activities to achieve fuel savings is ship operator reporting. A small display on the bridge can lead to daily communication about fuel consumption between the Chief Engineer and Master. This alone can results in a measurable improvement. Other opportunities are Throttle optimisation -improve SFOC/vessel speed. Engine fine-tuning. Vessel speed fine-tuning. Autopilot settings optimisation. Trim optimisation. The usual decision support tools tend to specialise in one area and consist of highly complicated software with considerable costs attached. However, the return on investment (ROI) should be considered. These are also mostly concerned with only one aspect of the vessel operations, eg weather routing, vibration monitoring (of bearings, vans, etc), trim optimisation, rudder optimisation, plus other systems. Technical upgrades to realise fuel savings also need to be taken into account, such as: Frequency inverter operation. Seawater pumps. Engine room ventilation. For load-depending operation giving savings of 25-40%, the ROI is claimed to be between six and 20 months. DIMAR-TEC said that it can offer a complete package, including installation, including: Rudder design optimisation, eg Mewis Duct. Special coating systems, eg silicon paints. DK Group’s Air Cavity System (ACS) (air lubrication technology that delivers around 10% in fuel savings for tankers). Other systems. When asked what makes this system different from the others in the market, DIMAR-TEC said that the FEC is a device, which allows the customer to receive a fully ISO 3046 corrected measurement of the engine’s fuel oil consumption. This means that an 80-page ISO, which describes how engine manufacturers test their engines is included in the software. Other systems may consider temperature and density correction, but only the full integration of the 80 plus pages & calculations contained in ISO 3046 provides a reliable baseline and therefore reliable benchmarking of the operation. To guarantee the highest possible accuracy and data quality of the measurement results, a vessel-specific fuel system analysis is required, which enables customers to compare their vessels fleet wide. The company said that it concentrates on the vessel’s fuel oil system; the data will be integrated into existing customer databases using a higher level analytical software. Each FEC is tailor made for the specific fuel oil system fitted on board the vessel. Before the installation of the system commences, DIMAR-TEC analyses the fuel oil system and existing sensor arrangements. “In this way we can ensure our product quality and are able to define the total system accuracy for the

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June/July 2012

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TECHNOLOGY - EMISSIONS CONTROL
vessel,” the company said. As is well known, the vessel’s fuel consumption is influenced by a lot of different factors, for example, cooling water temperature, temperature of fuel oil and ambient temperature. All these factors influence the Specific Fuel Oil Consumption (SFOC). Therefore, it is necessary to include them in the calculation and specify the accuracy of the system to the customer. FEC is also capable of integrating the direct signal outputs from different sensors. The integration of 4-20 mA, or pulse signals is standard, MODbus integration is also an option. Furthermore, the system can be accessed via every PC in the vessel’s network, thus eliminating the need for additional cabled displays. It is accessed by a touchscreen. It is also designed for installation in the engine room close to the sensors to minimise installation and cabling concerns. DIMAR-TEC developed the FEC’s software, as a sub-system for other high-end software with automated analysis features. “With very competitive costing, we expect to become market leader in the niche of accurate fuel consumption measurement,” the company said. The FEC provides the recorded data as averaged CSV- files for easy integration within the low daily volumes used in general fleet management software, combined with maintenance history, repairs, manually recorded daily data, etc. The MODbus output also allows data integration into complex technical analysis software. For fleets without existing data reporting systems, options are offered using partners, but the company stressed that it was not tied to any specific software house, or standard, but rather as sub-suppliers for these systems. “We do not want to dictate to our customers, which database or reporting system they should use. Often they already have one and the integration of a new company software is always connected with a lot of problems and effort. If this is avoidable, we try to avoid it,” the company explained. Thus far, DIMAR-TEC’s field test installations have been on container vessels. The company also offers online access via the internet, so an owner can stipulate a weekly download (around 200 kB, depending on the chosen filing frequency), enabling data analysis to be conducted within one working week. The company explained that it is not usually involved in the data analysis. At the moment, data analysis is undertaken manually in the field test installations. Data analysis is left to specialised companies, who have invested many man years in programming. When asked if luboils could be included in the data analysis, the company replied that one of the advantages of the system is the option to integrate additional sensors. “We are focused on the fuel oil system, but that does not mean that we are not able to integrate a wide range of other sensors. So it is also possible to integrate a device to measure luboils. But since this is a cost driver for the owner, we have investigated it in detail. The problem is that at the moment no reliable sensor is available to measure the special conditions found in a cylinder lubricating system with the requested accuracy,” DIMARTEC said. The system is applicable for both 4-stroke and 2-stroke engine types; 4-stroke engines require in comparison to 2-stroke engines additional humidity measurement for complete ISO 3046 correction, the company concluded.
TO

SHIP AND OFFSHORE UNIT REPAIR AND CONVERSION. O
Harland and Wolff Heavy Industries Ltd
Queen’s Island, Belfast BT3 9DU, Northern Ireland

T: +44 (0) 2890 458456 M: +44 (0) 7710 036 746 E: [email protected] www.harland-wolff ff.c f.com
ISPS approved. BSEN ISO9001: 2000 Accredited

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Negating the carbon risk
Emissions control equates to operational efficiencies: this is a statement that is not new to the tanker sector, but one that is increasingly pertinent as fuel costs remain high and charter rates weak*.
wners and operators are faced with the ongoing challenge of sustaining operations. To survive in these conditions and adapt for the future, streamlining is absolutely imperative. A significant factor in achieving this and securing your business for the longterm is measuring and managing your carbon emissions risk. Carbon risk is an issue that demands prompt action. Given the EU’s latest announcement that it plans to consider creating Carbon Emission Control Areas (CECAs), shipping could be exposed to further carbon penalties and costs unless action is taken to measure and manage emissions. This risk comes from the need for compliance, but also ensuring a competitive advantage and generating efficiencies. To generate these efficiencies, measuring your carbon footprint to understand your starting point and monitoring reduction methods on an ongoing basis is essential. Remaining competitive in the current market requires an understanding of your carbon footprint – and this demand comes from all elements of the supply chain. Investors, financial institutions, charterers and increasingly industry associations are all evaluating transparency of sustainability information, including carbon footprint and CSR initiatives and using this as a factor in decision-making. Moreover, charterers are increasingly scrutinising the vessels that they hire to ensure that they are contracting only the most efficient vessels. Regulation is another driver and with mention of CECAs potentially adding to existing regulation including EEDI, SEEMP and EEOI, shipping already has a foundation on which to base its actions. However, compliance with regulation should be seen as a minimum – shipping must go beyond these requirements. SEEMP in particular is a great example of regulation that provides a foundation for compliance with a monitoring and reporting

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process, but developing this further by ingraining the principles of measurement and monitoring emissions and using this across your organisation is the next step – a form of ‘SEEMP Plus’ - and one that will benefit individual companies and the industry as a whole. Measuring, monitoring and reporting energy efficiency, as SEEMP stipulates, opens the door to industry-wide data transparency on carbon emissions. This will be invaluable for the successful selection of market-based measures, given that a price on carbon is a certainty in the future. For individual tanker operators, this process will promote best practice standards and enable fair and practical benchmarking for genuine emissions reduction. It is time to take emissions reduction back to basics and measurement is at the heart of this. Standardising measurement is essential for shipping to make progress in reducing its carbon footprint. UNFCCC and EU guidelines already provide the foundation for a methodology to work with, citing completeness, consistency, cost-effectiveness, transparency and faithfulness as the principles for any effective measurement process. Embedding measurement and therefore emissions reduction as part of a process within an organisation demands a level of expertise and while there is a steadily growing awareness of regulation, abatement measures and principles, shipping is still very much undergoing an education. Expert guidance is therefore necessary to enable you to create a comprehensive database of your historical emissions. This will provide the basis for ongoing monitoring on a daily basis and in line with the Energy Efficiency Operational Indicator (EEOI), which is a transparent and recognised approach to assess the carbon efficiency of a vessel. Experts can also assist you by conducting a full on board energy audit to assess each vessel’s operational pattern, establish energy consumption key performance indicators and

identify potential energy saving opportunities. A thorough cost benefit analysis of the various technical and operational measures that will deliver optimum emissions reduction can then be carried out to ensure that the most relevant measures for your organisation and fleet are used. Evaluating your baseline carbon footprint and using this precious data to set realistic reduction targets that can be met costeffectively is at the heart of any emissions control programme. Finally, an outsourced provider can also deliver valuable training for on board and onshore personnel of SEEMP and its procedures, which will be crucial to truly implement energy efficiency measures and achieve reductions across your organisation. There has been talk of the potential for overspending on investing in new, super efficient vessels within the tanker sector, but in reality there are many different technical options, including retrofit, that negate the need for high newbuild capex to be an issue. Crucially, being able to identify these measures and making an informed investment based on all potential options is another benefit of conducting a thorough measurement process. TO

*This article was written by Helena Athoussaki, CEO, Carbon Positive.

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Filling the clean technology knowledge gap
In this article, Alison Jarabo-Martin, managing director of Fathom, discusses the importance of having access to the full spectrum of knowledge and insight on clean technologies in times of seismic change.
he decisions that shipowners and operators have to make in these changing times are unprecedented. When it comes to increasing efficiencies, reducing operating costs and ensuring regulatory compliance, clean technology has been dominating headlines. However, the full spectrum of clean technologies is incredibly broad. And to a certain extent the viability and return on investment for specific technologies is not wholly clear. This lack of access to information makes decision making very difficult. But these are decisions that have to be taken. The impending regulations concerning sulphur limits in ECAs, which will be reduced to 0.1% from 2015, the mandatory need for vessels to show a ship energy efficiency management plan (SEEMP), as well as newbuilds complying with the Energy Efficiency Design Index (EEDI), makes it unavoidable. Shipping’s environmental and operational efficiency clean technology options are significant. From scrubbers and ballast water, to hull coatings, emissions monitoring technologies, air lubrication, sails, the list goes on. How do shipowners and operators make objective decisions on which technologies to use for their fleets? Ironically, clean technology is the one area within maritime where there isn’t a concise proliferation of information. If you want to know the current price of bunker fuels in Singapore, or today’s freight rates on the container index there are many internet sites where this information is amalgamated. Clean technology is different. Internet searches might find various news articles about available technologies, or perhaps the company websites of some relevant providers. But what will appear is dependant on a lot of

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variables – keywords in articles, the levels of search engine optimisation on the sites and with a high percentage of news articles it may be that the search turns up a large percentage of newly developed technologies not yet ready for market. It’s also clear that getting a full picture of all the available and applicable technologies through the internet would be a long process if at all possible. Proper analysis A significant drawback would also be the likelihood of analysing the technologies in a ‘rose tinted’ way. News releases and company websites will inevitably be weighted towards the positive aspects of the technology due to the promotional messages delivered by the technology providers themselves. Often there is little in the way of hard data available for rigorous analysis within these information sources. Even at trade conferences, while face-to-face debate can be facilitated, you are more likely to be proffered with marketing materials, or carefully planned rhetoric that disguises the hard facts that will allow a clear comparison across the technology spectrum. Another issue in deciding which route to take with clean technology is the pace of change and development, not just in new technologies coming to market, but developments to existing ones; new research, new innovation. The market for clean technologies in shipping is constantly expanding and evolving, and yet while other constantly fluctuating areas of the market have developed data portals to reflect that, up until now, there has been no such service for technology manufacturers or their customers. That is why, following the success of Ship Efficiency: The Guide, Fathom embarked on a process to develop this much needed information portal for the clean

technology market. The result is CTech, a fully searchable interactive database of clean technologies that is constantly updated as developments take place. CTech builds upon all the information that was compiled for the Guide, updated and expanded for this new digital medium. That means users get all the information that made the guide a success, market readiness, return on investment periods, and an interactive savings calculator to estimate potential fuel and emissions reductions. Further data is also provided by news articles on the clean technology market. Most importantly, CTech’s powerful search functionality allows users to search using a number of different parameters, including specific technology brands, technology areas, as well as what vessel type the technologies are applicable to. For example, a product tanker owner can view, contrast and compare all the technologies, which are applicable to his or her company, without having to filter out those technologies designed with containerships, or ro-ro vessels in mind. CTech is constantly updated by Fathom’s researchers and editorial team, to ensure continual accuracy of information. Technology manufacturers can also upload – subject to Fathom’s editorial policy – developments to their technologies, case studies and other important information. Customers and users of technology will also be able to share their experiences and technologies to share data and case studies. In essence, CTech is creating an online community and forum that encourages debate and sharing experiences on technologies; what has worked, where improvements can be made. It is this interactivity and mutual collaboration that can help to provide the foundation for objective decision-making.
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Two Braemar subsidiaries launch salvage support
Incident response and environmental clean-up specialist Braemar Howells and its sister company Braemar (Incorporating The Salvage Association) are to co-operate to provide a 24-hour global response capability.
n what is being seen as a key development in the expansion of Braemar’s Technical Services (BTS) division, both companies have formed Braemar Marine Salvage Support Services which will provide on-site distressed cargo management and salvage support services to salvors, owners and insurers, together with additional expert technical advisory services from within BTS, ranging from resolving LNG operational problems to offshore engineering solutions. These services will include the subsea searching for, recovering and processing of lost and sunken cargo; the co-ordination and de-contamination of cargo, the disposal of hazardous materials; the provision of special casualty representatives (SCRs); the supply of expert naval architectural services for vessel damage assessment, re-floating and wreck removal analysis; as well as pollution response, prevention and tank discharging and cleaning prior to salvage. Braemar Howells is a provider of incident response, oil and chemical pollution clean-up

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and the provision of MARPOL waste reception services. Braemar (Incorporating The Salvage Association) is an international marine surveying and marine technical consultancy business providing advice to the global marine insurance, legal, shipping and offshore industries. It has been a busy year for BTS with all five member businesses of the Braemar parent company’s global marine and offshore services division undergoing a successful amalgamation and unit re-branding. Braemar Shipping Services formally announced last October that it would boost its offering of marine consultancy and offshore technical services sectors by bringing together its technical business units under the umbrella control of the BTS division. Since then, the various business units have been re-branded. With effect from the end of January this year, Braemar Falconer changed its name to Braemar Technical Services (Offshore), (colloquially known as Braemar Offshore); while Braemar Wavespec changed its name to Braemar Technical Services (Engineering), or

Braemar Engineering for short; while Braemar Steege changed its name to Braemar Technical Services (Adjusting), or Braemar Adjusting. Braemar (Incorporating The Salvage Association) and Braemar Casbarian, which also sit within the BTS division, will maintain their identities as before. With 385 employees, BTS is the largest employer in the Braemar Shipping Services group. Leading consultancy Quentin Soanes, executive director of Braemar Shipping Services, said: “The establishment of BTS was part of Braemar’s continued plan to be a world leader in marine consultancy and technical advisory services to the shipping, maritime legal, marine insurance and offshore energy sectors. “The businesses within BTS are all preeminent in their fields and together offer even more comprehensive and integrated services to their clients throughout the global marine and energy sectors. This new initiative to provide marine salvage support services in tandem

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with sister company Braemar Howells further strengthens BTS and its ability to service its global client base,” he said. At the launch of the new service in Athens last month, Soanes told Tanker Operator that the new marine salvage support service was the only one that could offer a complete range of consultancy. He also said that parent Braemar was still in an acquisitive mood, despite buying several companies during the past few years. Braemar Howells can trace its history back to 1948 when the company became the preferred marine contractor for the UK’s Royal Navy and its marine support services, especially in and around Milford Haven. Following the division’s involvement is such famous casualties as Christos Bitos, Borga, Sea Empress, Ever Decent, Fedra, New Flame, Napoli, Yeoman Bontrup and more recently the containership Rena, it was deemed a natural progression to partner with its sister company to form Marine Salvage Support Services. As well as attending casualties, Braemar Howells formed the Marine Pollution Salvage Centre in 1992. The division is a member of the International Salvage Union (ISU) and holds ISO 9001, ISO 14001 and OHAS 18001 accreditations. The Old Salvage Association, now part of Braemar, was formed more than 150 years ago and now combines the expertise of naval architects Murray Fenton. This division primarily undertakes work for marine underwriters, P&I clubs, lawyers, local regulatory bodies, as well as shipowners. This division has already been operating alongside Braemar Howells in several salvage cases, including that of the Rena, which is still ongoing. Perhaps Braemar’s most famous tanker case was that of the Sea Empress, which grounded off Milford Haven in 1996. Braemar was appointed by the UK Government to provide the de-contamination and wash down facility for those vessels used in the counter pollution recovery operations, which took place at sea. In addition, the division was responsible for the disposal of waste, together with the provision of salvage pumps in support of the salvors and fenders for the ship-to-ship emergency lightening and cargo transfer operation. TO

Services offered
Provision of SCRs. Processing of recovered and distressed cargo. De-contamination and waste disposal. Handling of HNS and hazardous materials. Naval architects to support salvors. Naval architecture assessment for wreck removals. Project management of third party contractors, including systems audit and accounts. Expert witness advice and review of claims. Marine oil pollution response. Pollution prevention and mitigation measures. Deep cleaning prior to abandonment. Distressed cargo surveys and documentation. Marine engineering, naval architecture and subsea solutions. Underwater search and survey. Detection, identification and recovery of submerged cargo and containers. Environmental classification and economic disposal of hazardous and waste materials.

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ASRY accepts damaged tanker challenge
Fire-damaged chemical tanker Stolt Valor has arrived at the Bahrain shipyard, where the extent of the damage will be determined.
he 2004-built, 25,268 dwt Liberian-flag chemical tanker Stolt Valor, has arrived at Bahrain’s Arab Shipbuilding & Repair Yard (ASRY) for repairs, following a fire and explosion in one of her cargo tanks while transiting the Arabian Gulf on 15th March this year. Stolt Valor arrived at ASRY on 28th June in convoy with the three large tugs. ASRY’s initial work will include a safety inspection prior to any further investigation to ensure the vessel has no outstanding safety concerns. She will then be transferred alongside for a detailed investigation to be carried out in conjunction with the owners to determine the best course of action going forward. Commenting on the job, ASRY’s CEO Chris Potter said: “Most importantly we are committed to protecting the safety, security and the environment of Arabian waters, to which Stolt Valor posed a risk. Therefore, as the most experienced shipyard in the region, we see it as our duty to bring our 35 years of experience to bear on this challenging repair, where other yards were not willing.” Commenting on the vessel’s passage into

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Bahrain’s approach channel, Hassan Ali Al Majed, the director general of Bahrain’s General Organisation of Sea Ports (GOP) stated “We are satisfied with the overall operation which entailed the involvement and cooperation of numerous Government agencies in ensuring the smooth and successful passage of the vessel into Bahrain’s waters and ASRY. I myself visited the ship today (28th June) as it docked in ASRY and am confident that the salvaging process will be carried out under the highest standards.” Bahrain was identified as the best destination for the Stolt Valor due to the technical capabilities of both the GOP as a regulator and supervisor of maritime safety and environmental matters in Bahrain and of ASRY’s capabilities and expertise as a world renowned shiprepair yard. Stolt Valor, owned and operated by Stolt Tankers NV/Stolt-Nielsen Ltd, suffered a cargo tank fire and explosion on 15th March 2012 while 48 nautical miles south east of Farsi Island, Iran. She was carrying 13,000 tonnes of MTBE (Methyl Tertiary Butyl Ether), which had been loaded at Al Jubail in Saudi Arabia. MTBE is a volatile, flammable

The extent of the damage can clearly be seen.

liquid chemical and petrol additive. The cause of the explosion is still unknown. Some 24 crew members were rescued by a US Navy destroyer and a US Coast Guard cutter. Holland’s Smit Salvage was awarded the salvage contract for the vessel, based on Lloyd’s Open Form (LOF2011). Smit was responsible for the safe discharge of all cargo, fuel and ballast, prior to towing the vessel to Bahrain. Bahrain and Saudi Arabia were the only two countries in the Arabian Gulf to offer Stolt Valor a port of refuge. There was no cargo or fuel oil spill following the explosion, or during ship lightening operations, it was claimed. TO

Paris and Tokyo MoUs to conduct joint campaign on fire safety systems
Vessels entering Paris and Tokyo MoU Port State Control (PSC) zones this autumn will face Concentrated Inspection Campaigns (CICs) on their fire safety systems. The Paris and Tokyo MoUs have issued a statement saying: “The 43 Maritime Authorities of the Paris and the Tokyo Memoranda of Understanding (MoU) on Port State Control will launch a joint Concentrated Inspection Campaign (CIC)
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with the purpose to ensure compliance with SOLAS Chapter II-2/ Construction – fire protection, fire detection and fire extinction arrangements on board ships. This inspection campaign will be held for three months, commencing from 1st September 2012 and ending on 30th November 2012.” The CICs will mean that during a regular PSC inspection conducted under the regional ship selection criteria within the Paris and Tokyo MoU regions, the fire safety arrangements, maintenance records and other applicable documentation will be verified in

more detail for compliance with SOLAS Chapter II-2. Port State Control Officers (PSCOs) will use a list of 12 selected items to verify critical areas for the shipboard fire safety systems, some of which are related to documentation, equipment and crew familiarisation. For this campaign PSCOs will apply a questionnaire listing a number of items to be covered during the concentrated inspection. Other MoUs may also carry out a CIC on the same topic during this period.

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June/July 2012

TECHNOLOGY- REPAIR AND MAINTENANCE

Goltens adds ballast water systems to its expertise
In 2010, shiprepair specialists, Goltens, established GGT Green Technologies (GGT) as an independent service provider to the ballast water treatment (BWT) market.
ased in Groningen, Holland, GGT was established to help shipowners meet the many new environmental regulations being introduced in the maritime industry, first off by co-operating with Optimarin in the installation of BWT systems. Complying with the imminent ballast water treatment (BWT) convention is one of the most pressing issues in shipping and it is in this area that GGT is focusing. CGT employs 3D laser technology for scanning and modelling to prepare for BWT installations. After making accurate 3D laser scans, the results are converted into a 3D CAD program. Through this program, various BWT systems can be compared allowing the shipowner to select the right system. Accurate fabrication drawings can also be made and all of the necessary parts can be prefabricated. It also provides the shipowner with the flexibility of being able to change the design during the process without doing a new survey. Another advantage of using 3D scanning and modelling is that it can be used on sister vessels, greatly reducing the time taken for duel installations. This is one reason why GGT is now pursuing agreements with entire fleets. GGT business development manager, Jurrien Baretta said that while 3D modelling is a powerful technology, it needs to be properly operated in order to realise its full advantages. “Anyone can buy the technology, but it takes expertise to use it properly. We have learned a lot since we started using it and we now have dedicated engineers who know how to use 3D scanning to its full potential.” Baretta said Optimarin’s ballast system, and UV systems in general, are effective and simple and have been implemented with good results. But she emphasised that as an independent player in this market, it is GGT’s role to scrutinise the suppliers and their technologies.

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The disadvantage of UV systems is that they use more power than many other technologies. This will cost more fuel and in some cases that amount of extra power is simply not available on board of the vessel. “In order to provide the best service to ship owners we have decided to take on an independent role. That means we have no affiliations with equipment makers. Our goal is to simply be a knowledge resource for ship owners and assist them to upgrade their existing fleet to meet the impending regulations. There is no single solution that is right for every vessel, so we aim to help owners navigate the selection process and find the solution that best fits their vessels and operations, now and in the future” she said. There are many variables to consider. One thing that has presented a particular problem is finding a system that works effectively in different oceans with varying degrees of salinity. To resolve an industry wide lack of experience in this area GGT is heavily involved in knowledge sharing network groups. Market demand “There is a tremendous market demand for a full BWT service provider. GGT’s global approach and international team of engineers, technicians and managers, gives clients and shipowners specific engineering expertise and a high level of quality,” said Baretta. The complexity of the issue and the market’s underdevelopment has led to uncertainty among shipowners as to whether or not to install a system now or to wait. On the one hand the convention has not yet been ratified, so some shipowners see it as an unnecessary cost. But Baretta says the cost will be far greater for those who wait for the convention to be ratified. “At this stage it is a matter of when, not if, the convention will be ratified. So it is better to start now. Shipowners who do so get cheaper prices not only for the system but also

for the associated engineering and installation,” she said. GGT is expecting activity to ramp up in 2016 and a last minute rush to come the year after. Obviously, this would not be a good situation for anyone, as it would lead to a bottleneck causing system prices to rise and downtime for vessels. To avoid such a situation, GGT is now aiming to form fleet agreements that allow for better planning for both them and the shipowner. “In order avoid a bottleneck in 2017, we are aiming to make agreements with entire fleets. Fleet arrangements allow both parties to better plan BWT installations over a five-year period and take advantage of economies of scale. There is a misconception about the time it takes to install a BWT system, so shipowners need to understand that now is the time to start planning,” she concluded. Tanker Operator spoke with Goltens Worldwide Group president Paul Friedberg who explained: “In general, we are not looking to tie up with many manufacturers and we have not yet tied up with Optimarin in any formal way or fashion. We are co-operating with Optimarin on certain projects and have probably done more projects (design and installation) with Optimarin equipment than any other equipment. “With respect to Ex proof BWT design (for tankers) this is not a specific field for us, but we will familiarise ourselves with this technology as and when required. “In general, Goltens Worldwide Group of companies will have a somewhat divided approach when it comes to attacking the BWT market. From our GGT company in Holland, we will provide design, advisory engineering and installation, which includes photo telemetry (3D mapping) of the existing designs, design engineering, planning and execution of the installation of a BWT system anywhere in the world. “We will of course also be able to provide advice on types of systems suitable for a
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June/July 2012

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TECHNOLOGY – REPAIR AND MAINTENANCE
particular size and type of vessel. GGT will provide an independent service, but will use resources in the group for installation of a BWT system as and when required. “Separate to GGT, the Goltens Group of companies plan to represent up to three leading manufacturers/brands of BWT systems on a regional basis, which is purely for sales and after sales services. This is completely independent of the work GGT is carrying out and it is a firewall between the GGT organisation and these representations,” Friedberg stressed. Friedberg agreed that once owners started to install equipment in vast numbers, a large service market will open up. “We believe the retrofit market will be large, as well as the service and after sales market. Through our OEM representations, the target will be to represent OEM’s for after sales service and spare parts,” he said. Engine problems A core business sector for Goltens is to provide specialist diesel engine repair services and, in situ precision machining services. With the move towards slow steaming, more emphasis should be put on engine maintenance and monitoring. Friedberg said: “Over the last two years, we have clearly seen a correlation between emergency breakdowns of diesel engines and wear and tear on engine parts and slower steaming vessels. “The other factor coming in here is of course the newer generation engines utilising more sophisticated engine monitoring systems, which will give a better knowledge of the engine condition to avoid sudden emergency breakdowns. “In this context condition monitoring is also more widely used to plan the service and maintenance programme as a consequence of the condition of the engine rather than the recommended running hours for engine spare parts replacement. “For a company such as Goltens, the effect will be more activity related to trouble shooting, engine condition monitoring services and as well as in general advisory services for shipowners and management companies. In this way we can also better plan the use of our specialist resources,” he said. Turning to new business opportunities offered by the large shipyards opening up in the Middle East, Friedberg explained that Goltens Dubai Maritime City (DMC) facility, currently under construction, will in the future serve as the company’s regional centre of excellence for the whole of Middle East. “Currently we undertaking work from Dubai both in Ras Laffan/Qatar and Duqm /Oman and we will continue to do so going forward. However, we will evaluate other service stations both in the Middle East and elsewhere in the world, as we see the need and in accordance with the market developments,” Friedberg concluded. TO

Paul Friedberg.


 


 
 




   

      



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TANKEROperator

June/July 2012

TECHNOLOGY- REPAIR AND MAINTENANCE

Survey shows different attitudes to slow steaming
In late 2011, MAN Diesel & Turbo conducted a web survey among more than 200 representatives of the global container and bulker/tanker shipping segments. Of these, 149 had implemented slow steaming.
he purpose of the survey was to investigate the approach of container lines, bulker and tanker operators to slow steaming, retrofit, de-rating and upgrade measures taken to maximise the return on slow steaming, and evaluation of the results of these measures. Respondents were asked to answer 25 multiple-choice questions and to attach free text comments where relevant. They were split into two groups: 1) The 38 respondents who had already implemented one or more engine retrofit solutions, such as slide fuel valves, turbocharger cut-out, engine de-rating, or propeller upgrade. 2) The 111 who had either not implemented any of the above, but had implemented other solutions, such as hull cleaning. The results indicated a clear difference in attitude to slow steaming among those who had implemented engine retrofit solutions and those who had not. The results obtained from engine retrofit solutions proved that the operators had a significantly more positive understanding of the efficiency increases and savings that can be obtained by taking steps to maximise the return on slow steaming. The overwhelming reason for adopting slow steaming was the promise of fuel savings. The survey revealed that engine retrofit, de-rating and propeller upgrade measures delivered fuel savings either as expected, or higher than expected. The survey also showed a positive reaction to slow steaming by a large majority of the global shipping community. In addition to fuel savings, the opportunity for better utilisation of existing fleet capacity also played a significant role in the decision to adopt slow steaming. More than half of the bulker and tanker owners (54.4%) indicated that they were using

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slow steaming in 50%, or less in their vessels, and 26.2% said that they were using slow steaming in more than half of these vessels. In this sector, the number unable to answer was considerably lower at below 20%. A minority of respondents reported very low engine loads below 30%, while more stated engine loads between 20% and 40%. A significant majority reported engine loads between 30% and 50%, indicating that super slow steaming was not a priority. This was particularly evident in bulkers/tankers, eg 1030%, 20-40%, 30-50%. A majority of respondents combined slow steaming with full-load steaming with only 6% employing slow steaming alone. This reflected a broad need for flexibility, indicating major
 

segments – considerers and implementers. This is hardly surprising in the light of their expectations regarding bunker costs over the next two years. Here, more than three out of four of those considering engine retrofits believe that bunker costs will be higher than at present with just under three out of four who have implemented engine retrofit solutions concurring. Bunker cost Utilisation of capacity and avoiding idling costs were also important. Again, half as many of implementers consider greater utilisation of existing capacity an important reason. The reason could be that these respondents have realised that slow steaming is an effective way of achieving greater utilisation of capacity. A significant number considered avoidance of idling costs to be an important driver. Several customers also noted that a reduction in fuel consumption automatically meant a drop in CO2 emissions. This advantage is obviously of a secondary benefit, but was still rated as the second-most important reason for slow steaming. While slow steaming in itself obviously saves fuel and reduces emissions, it is interesting to see to which extent extra gains could be achieved. The supplier business case for investing in solutions, such as engine retrofitting, engine de-rating and propeller upgrades appeared to hold water in the vast majority of cases. Fuel savings Three quarters of the respondents reported that they had achieved fuel savings as expected by implementing slide fuel valve and/or turbocharger cut-out solutions. Only 16.2% achieved lower thanexpected savings, while about 9% were not able to answer specifically.
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Main advantages of slow steaming as perceived by Considerers and Implementers (%) Respondents were able to provide more than one answer.

interest in the possibility of turbocharger cutout, or modification solutions. Fuel cost savings rank as the overriding reason more or less equally between the two

June/July 2012

TANKEROperator

TECHNOLOGY - REPAIR AND MAINTENANCE
The gains are even more pronounced when it came to engine de-rating and/or propeller upgrades with 87.5% reporting expected fuel savings and none less than expected. Here, 12.5% were not able to provide a specific answer. These results confirm the conviction of nearly one in three of those who have already implemented engine retrofits solutions of the benefits of fitting slide fuel valves in older vessels. Those still considering implementing engine retrofit solutions are less aware of the benefits of slide fuel valves. Engine upgrade measures Another potential source of savings related to slow steaming is the opportunity to save on expensive lubricating oil by adapting dosage to the engine load. Here, slightly more than one in five considerers and only one in six implementers were seriously considering cylinder oil optimisation as a means of saving costs and optimising cylinder lubrication for low-load operation. The financial benefits of slow steaming mainly lie in fuel savings, which are advantageous to the shipping line, or charterer. Indeed, customer perception of slow steaming was mainly positive with 68.4% of slow steamers considering the implementation of engine retrofits stating that their customers have reacted positively. The situation was even more pronounced among those who have implemented engine retrofit solutions with nearly 73% reporting a positive reaction. Customer reactions Interestingly, just over one in four of those considering engine retrofits said that slow steaming had no effect at all on shipping rates. Slightly fewer than one in four of those who have implemented engine retrofit concurred. Depending on vessel type and operational pattern, substantial fuel savings can be obtained alone by reducing speed. The fuel savings directly made a huge impact on emissions, making slow steaming a major contributor to compliance with environmental regulations. Half as many respondents who saw fuel savings as the main reason for adopting slow steaming also cited emissions. Fleets were doing a lot to limit emissions, but the connection here is most likely that of lower emissions being a natural consequence of slow steaming. Some 78.5% of all respondents believed that slow steaming made a significant contribution to environmental compliance. The fact that there were no significant differences between considerers and implementers was most likely
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due to lower fuel consumption and not as a result of experience. There were, however, some interesting divergences when it came to environmental regulations and how best to address these. The striking difference between implementers and considerers was the significantly higher investment of implementers in engine-related measures. Answers from implementers were consistently significantly higher than those from considerers. Two significant challenges were fouling of the exhaust gas boiler and soot deposits on moving parts. Implementers differed from considerers in their approach to fouling of the exhaust gas boiler in that only 31.6% managed this via proactive on board servicing against 41.4% of considerers. Half of implementers also pointed to engine upgrade kits as a response to this challenge against only 38.7% of considerers. This might appear obvious in that it seemed to reflect the fact that considerers had not yet adopted engine retrofit, or de-rating. However, it pinpointed an important environmental challenge for those who have not yet reaped the extra benefits from slow steaming offered by engine upgrades. The majority of considerers were ignoring a way of achieving significant improvements that may be required by certain countries and that offer a fairly short payback time. As for soot deposits, implementers outdistanced considerers with half looking to engine upgrade kits as a means of limiting soot deposits, while only one in three considerers thought in the same way. Conclusion Slow steaming has been adopted increasingly by the world’s shipping community since 2007. Vessel engines were originally built to run constantly at full load, which is now typically not the optimal operational pattern. This constituted challenges to the operators in order to maximise the performance and competitiveness under these new market conditions. Fuel costs were the driving factor with a huge majority both of those who have not implemented engine retrofits, or upgrades and of those agreeing that it was the overriding reason for adopting slow steaming. There are a number of ways of further increasing the financial return from slow steaming. These include slide fuel valves, turbocharger cut-

out solutions, lubrication oil system upgrading, engine de-rating and propeller upgrading. Respondents in the survey who had adopted one of more of these measures were clearly pleased with the results. These measures enabled more efficient fuel consumption and lubricating oil, as well as increasing engine performance, adding significant further gains to the annual savings of millions of dollars achieved by slow steaming. Lower fuel consumption also meant fewer emissions – a useful side effect in a world where environmental regulations were becoming ever stricter. Those who had implemented engine upgrades rated factors such as fouling of the exhaust gas boiler, soot deposits in moving parts and correct lubrication as far more important focus areas than those who had not. Compliance with local environmental relations was also important for shipping lines requiring access to certain countries and ports. There was a significant difference in the approach to this question by those who had already implemented engine retrofits and those who had not. Those who have implemented engine retrofits were more inclined to address environmental compliance by investing in mechanical solutions that were certain to deliver the necessary advantages with a TO reasonable payback time.

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TANKEROperator

June/July 2012

TECHNOLOGY- REPAIR AND MAINTENANCE

Castrol extends lubricants range with slow steaming in mind
Drawing on OEM reports and its own engine performance tests, Castrol Marine has strengthened its conviction that when slow steaming, optimum performance can only be achieved by having a range of cylinder oils available. The company said that its research and development, OEM recommendations, market trends, legislation and, most importantly, customer feedback, have combined in developing its latest cylinder lubricant offer, based on the realities of slow steaming, fuel sulphur content and low feed-rates. Its investigations show that each vessel should use a cylinder lubricant based on its predominant operating conditions and while 40 BN cylinder oil suits vessels predominantly operating in ECAs, cylinder oils of 70 BN and above are better suited to those vessels regularly slow steaming, to ensure piston ring packs and liners remain in excellent condition. “The idea of a single, mid-range cylinder oil solution for all vessels as sulphur limits are reduced may be seductive, but our field evaluation shows this does not offer the best margin of safety,” said Paul Harrold, Castrol Technology manager marine & energy lubricants. “Slow steaming has complicated traditional assumptions concerning engine performance because marine engines are not designed to operate below 85% power for prolonged periods. At lower loads, the cylinder oil’s feed rate is reduced, reducing the available BN to neutralise acids and reducing the oil film thickness. This can mean lubricants degrade, increasing the potential for acidic corrosion and increased wear rates. Lower engine operating temperatures caused by slow steaming further increase the risk of cold corrosion,” Harrold said. For owners, this could mean unscheduled and costly maintenance. Severe cases may require liner and ring reconditioning or replacement, Castrol warned. “Replacing liners on a 14-cylinder engine could cost over $1 mill,” Harrold pointed out. “Higher BN lubricants provide greater neutralisation and hence better corrosion protection across the fuel sulphur range while slow steaming.” OEMs confirmed that there is no need to change the cylinder lubricant if operating in an ECA for around 10 – 14 days. Castrol’s experience has shown that using a high BN product for even longer is often acceptable when operating in an ECA, especially when slow steaming. Fears that high BN cylinder oils may lead to deposits and bore polishing may be unfounded, the company added. “Reducing speed by only 3 knots will have the same impact in ash reduction as changing from a high to a low BN lubricant. When you think that operations in the ECA involve port visits combined with the current climate of slow steaming, most vessels will naturally reduce their speed,” said Harrold. On this basis, Castrol was confident that owners specifying higher BN cylinder oils do not necessarily have to change lubricant when visiting an ECA. “We are not suggesting that a ship has to carry a range of products,” Harrold explained. “In fact, the majority will carry only one, depending on their engine and voyage operating pattern. We have a 40 BN for prolonged operations in ECA, while our existing 70 BN cylinder oil has proven itself in intermittent ECA operation. For the most severe applications of optimised feed rates and slow steaming we would consider recommending 80 BN cylinder oil for many customers. “Our position is that only by having a comprehensive range of cylinder lubricants to choose from can vessel operators maximise machinery performance and provide the highest margin of safety. Castrol will add an 80 BN option to its already extensive range of cylinder lubricants,” Harrold concluded. TO

Middle East yards gain contracts
Nakilat-Keppel Offshore & Marine (N-KOM) recently docked seven LNGCs simultaneously at its Ras Laffan facility. LNGC repairs have made up almost half of the projects handled in recent months. The seven LNG carriers (Al Jasra, Al Bidda, Al Wajbah, Dukhan, Al Gharrafa , Al Rayyan and Al Thumama) underwent drydocking repairs, including the overhauling of the main engine, valves, pumps and other general repairs and maintenance. Most of these vessels are jointly owned by a consortium of Japanese shipping companies: Mitsui OSK Lines (MOL), Nippon Yusen Kaisha Line (NYK), Kawasaki Kisen Kaisha (“K” Line), with Al Gharrafa being technically managed by OSG Shipmanagement (UK). Meanwhile rival Dubai-based Drydocks June/July 2012 World has announced that it has entered into a global strategic alliance with Kuok Group to form a Joint Venture between Drydocks World – SEA and Pacific Carriers. The new venture will subsequently be renamed DDW-PaxOcean Asia and will continue to have its headquarters in Singapore. “We are delighted to have Drydocks World as a joint venture partner,” said Pacific Carriers’ chairman Teo Joo Kim. “With Pacific Carrier Group’s fleet of vessels and Kuok Group’s two shipyards in China coupled with the shipyard facilities and expertise of the joint venture and Drydocks World, I see marvellous opportunity to create value for the benefit of the respective parties.” DDW-SEA currently operates four shipyards in Southeast Asia - the Tuas shipyard in Singapore, and the Graha, Nanindah and Pertama shipyards located in Batam, Indonesia. Activities at the shipyards include offshore, shipbuilding, repair and conversion. In addition, DDW-SEA also has a shipping fleet of over 130 vessels. The agreement is expected to be completed within the third quarter of 2012. Meanwhile, Oman DryDock Co located at Duqm, was due to officially open its doors at the end of June, despite being operational for over a year. In May, the repair yard received its largest vessel to date when the VLCC Alpha Glory arrived for drydocking. The repair work included the replacement of a large quantity of steel in addition to cleaning the tanks. At the same time, the yard also received the LNGC Echigo Maru, managed by NYK LNG Management of Japan. The vessel underwent general maintenance including the replacement of a large quantity of steel.
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TANKEROperator

TECHNOLOGY - SEPARATORS

New separator recovers re-usable fuel oil
Driven by the fact that shipowners are now allowed to re-use waste fuel, Alfa Laval has introduced a high speed separator, which is claimed to be able to save owners and operators up to 2% on fuel consumed.
alled PureDry, the new separator has the capability to recover reusable fuel from waste fuel oil. It recovers energy by recycling the heavy fuel oil fraction in the waste fuel oil tank, leaving only super-dry solids that can be landed as dry waste, the company said. With its waste fuel recovery (WFR) capability, Alfa Laval claimed that a direct saving of up to 2% on fuel bills can be achieved. The company also said that the investment will also pay for itself within the first year of operation, as well as saving money on fuel. Waste fuel oil is the result of settling and day tank drainages, leakages, filters and purifiers and is currently collected in the waste oil tank and subsequently landed ashore, or incinerated on board. Alfa Laval’s new WFR concept involves the installation of two waste oil tanks – one for lube oil and the other for fuel oil. The company pointed out that some vessels are already fitted with this tank arrangement. Although the waste fuel oil tank appears to just contain black oil, it is actually polluted water containing 20-30% energy in the form of recoverable fuel oil. The remainder is 7080% oil polluted water, while accumulating at the bottom of the tank is about 1% suspended solids. Claimed by Alfa Laval to be the first truly technology for waste oil treatment, the PureDry separator recovers the fuel oil from the oily water in the waste fuel oil tank, which is then returned to the fuel oil tank after normal treatment. This process reduces the waste oil volume by 99%, producing typically 5-15 kg per day non-pumpable ‘super dry’ solids that can be put ashore as dry waste and disposed of in the same way as oily rags and used filter cartridges. There are no oil losses, or

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additional waste generated, the company said. The separated water, which has an oil content of less than 1,000 ppm is pumped to the bilge water system.

Quick payback Alfa Laval calculated that once an existing vessel had been retrofitted with a PureDry system and the two separate tanks, during the first year of operation, the fuel savings will pay for the equipment and tank installations. For a newbuilding, the profit is higher as the capital cost mainly consists of the separator system. In addition to fuel savings, there will also be savings on waste oil incineration and landing for disposal, while in the case of newbuildings, the volume of the waste water oil tank can be halved, thus saving space, the company said. A second separator system can also be installed for waste lube oil to reduce the volume of waste and save on incineration and landing costs. However, if there is spare capacity in the PureDry for waste fuel oil, this could be used to treat the lube oil. The system is also claimed to be solve the problem of the waste oil tank filling up, as the waste oil is treated instead of being stored for incineration, or landing ashore. Alfa Laval’s PureDry separator.

If a vessel’s oily water separator (OWS) malfunctions, the bilge water goes into recirculation and fills up the bilge water tank. When it is full, the content is usually pumped to the waste oil tank. When the waste oil tank is full, the vessel has a problem, as the incineration of the waste oil means burning up to 80% water, adding to the cost of diesel fuel used in the process. In situations like this, environmental infringements may occur by dumping the waste oil at sea.

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TECHNOLOGY – SEPARATORS

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The PureDry separator remains under continuous warranty. This is virtually all that needs to be done to keep the equipment in good operating order. The aim is to give the customers the opportunity to budget and maintain a fixed operating cost.
Pauli Kujala, senior business manager, Alfa Laval

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In addition, there are issues with landing waste oils ashore, as many ports still do not have reception facilities. For example, in California, waste oil cannot be handled and if landed, must be trucked to a neighbouring state for disposal at cost. In some ports, it is possible to sell the waste oil for around $110 per tonne, although the price will depend on the water content. In these cases, shipowners will end up getting

paid for oil that they originally purchased at the full price. They are selling it on at a huge discount when they could use it themselves, Alfa Laval said. PureDry is claimed to have accurate flow metering in the EPC 60 control unit. The feed is monitored, recovered oil and water is metered, while a load cell registers when the dry solids container is full. The information is digitally recorded for presentation to the authorities for example, during a Port State Control inspection. The fuel has been recycled, but no oily waste is missing from the Oil Record Books, as the recovered oil has been metered and logged. According to MARPOL – MEPC.1/circ 642, since 2008, the recovery and reuse the HFO part of the waste oil as fuel for the engines has been allowed. ‘Regeneration of oil residue should be an approved means of disposal of oil residue according to the supplement to the IOPP Certificate’. Another driver for PureDry’s development was MARPOL Annex VI, which prohibits the incineration of oily wastes in ECAs, meaning that fewer owners will be fitting incinerators and even larger waste oil tanks will be required. Exchange kit In parallel with PureDry’s development, Alfa Laval

developed a module-based maintenance concept – Maintenance and Service by Exchange (MSE). The new separator comes with the exchange kit, which includes a new separator insert – rotor and disc stack, a new XCavator and a consumables kit. A major advantage of the separator is that it has no internal moving parts, the company said. The Xcavator is Alfa Laval’s patented spiral-shaped device for transporting the super-dry solids to the base of the machine where they exit below into a container. Following 12 months of operation, the vessel’s crew will replace the separator insert, as easily as replacing an insert in a filter and the XCavator unit. The used parts will be returned to the nearest Alfa Laval service centre and the shipowner orders a new exchange and consumables kit. “The customer is not purchasing new parts – we supply the kit at an exchange price,” said Pauli Kujala, Alfa Laval’s senior business manager, oily waste treatment systems. ”The PureDry separator remains under continuous warranty. This is virtually all that needs to be done to keep the equipment in good operating order. The aim is to give the customers the opportunity to budget and maintain a fixed operating cost.” CBM system For operational security, the separator is equipped with an integrated condition-based monitoring (CBM) system that records temperature and vibration through the EPC 60 control unit. The system can give the crew an early warning alert, or close down the whole operation, if the running conditions should suddenly deviate from the specifications. Action can then be taken based on the CBM’s recommendations, such as running the Cleaning-in-Place (CIP) process, or exchange a component using the exchange kit. TO
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Cut-away for the PureDry separator.

June/July 2012

TANKEROperator

TECHNOLOGY - SHIP-TO-SHIP TRANSFER

Justify your decisions, focus on operations
For various practical and commercial reasons, ship-to-ship transfer operations (STS) have become remarkably popular lately, a situation which is likely to continue.
organised on 3rd March, 2011 jointly by the UK P&I club and DYNAMARINe. Dr Alexandros Glykas representing DYNAMARINe in the welcoming speech to the forum said: “Dynamarine was given the momentum to proceed further and inform the maritime community and associates key sector organisations on their concept of screening and risk assessment; a materialised concept which started from an idea back in 2007 and was eventually presented to the maritime community after a long research and development period.” Since 1st April this year, the new MARPOL Chapter VIII Annex I has been implemented for all participating vessels. The requirements, or facts introduced by the new regulations, directly or indirectly are the following: Shipowners must have policies and procedures in their STS plans, which have been approved by the flag administrations. Records of STS operations must be retained for three years, thus they can be assessed, and reviewed. The lessons learned along with good practices, will be included within the STS plans. Requested charterers’ clearances from owners for participating vessels became a standard policy, in order to keep away from, or share liabilities; an action that has been supported and strengthened by the new MARPOL chapter, since STS operational problems were addressed at a seminar in Athens shipowners bear the recently, organised by DYNAMARINe liability for the safe s a consequence, a number of safety and pollution issues were considered and as result, the IMO responded with a new regulatory framework. Although STS operations have proved to be safely conducted without any significant incident over a long period of time, undoubtedly they have the potential for a large scale pollution incident, should sound management not be applied to all aspects of such operations. DYNAMARINe organised a sponsored event on STS on 19th May 2012 entitled INTERNATIONAL FORUM ON STS 2012. Panel speakers addressed issues related to shipowners’ liabilities, operational procedures by STS service providers, statutory compliance, screening and risk assessment methodologies that are currently being utilised by shipowners engaged in STS operations. The event was organised after the awareness of delegates of the new MARPOL Chapter VIII of Annex I from the previous STS event

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conduct of STS operations. OCIMF has issued proposed policies towards STS service providers for selfassessment procedures and KPI’s. Therefore, the proposed quality assurance as per paragraph 2.5 of latest STS OCIMF/ICS guidelines will have to consider the policies. POAC’s qualifications have been explicitly prescribed in Manual on Oil Pollution, Section I, “prevention of pollution”. According to Dr Glykas, there are certain reservations, which have arisen from the new requirements, such as: Will the above mentioned requirements complicate the STS operations for all stakeholders? What is the shipowner’s further liability and by what means and actions will this liability be covered? What is the associated risk that the shipowners’ take and how could this be mitigated? Do STS service providers envisage any change in their role, liabilities and logistics in their day to day job? The theme of the new regulations is a clear step towards the reduction of accidents and especially towards reducing their effects on humans, the environment, as well as assets, as mentioned by Panayiotis Mitrou of Lloyds Register Hellas. In practice, however, successful implementation requires demonstration of adequate care, or even better “sound management” by shipowners and this is directly associated with the “prudent exercise of due diligence”. Normally, in order for a decision to be taken, all alternatives should be reviewed and a complete risk assessment should be planned. However, such a risk assessment in the case of an STS operation requires the examination and analysis of historical records of past STS transfers. IMO resolution and Chapter VIII of

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TECHNOLOGY - SHIP-TO-SHIP TRANSFER
MARPOL Annex I is clear; STS records should be kept for three years. It is evident for everybody that once records are available, these should be assessed and lessons, or best practices should follow. Operations database In order that shipowners can take advantage of past experiences in STS operations, the operation must be recorded. For this reason OSIS (Online STS Information System) was introduced and currently about 15 shipping companies participate in the scheme. As DYNAMARINe’s Dr Stelios Perissakis explained, “OSIS is a database enhanced with policies and procedures. It is a platform, which has a goal to support future safety and sound management, as well as decision making activities. OSIS not only includes data, it also includes the whole concept of collecting and validating the acquired data from STS operations. “It incorporates the handling of the data and the procedures and limitations of processing them. OSIS is beyond a data collection platform, it is a complete assessment tool and its goal is to fully support assessment of STS operations,” Dr Perissakis said. One issue that was pointed out was that OSIS’ data property issue. It was explained that all assessment data is commercially sensitive and thus property remains with the company that enters the assessments into OSIS. The only data that may be exchanged between the users is statistical and consolidated data; not the assessments themselves. An example of STS consolidated assessment data may be found at www.onlinests.net/index.php?option=com_ove rall. OSIS has integrated all the automated and reliable procedures that are most likely required. It is a complete assessment tool and its function is to fully support the assessment of STS operations. The assessments entered in OSIS take into account all parties involved in the operation. Implementation is claimed to be user friendly without adding any work to shore operators. Automatic notifications have been incorporated in case the findings need supplementary action. KPI’s are also proposed and supported by the assessments. Liability increased From a legal point of view, the new regime in STS operations will increase owners’ liabilities in STS operations, as pointed out by George Miltiadis Aspiotis of John G Hadjis & Partners. Aspiotis said; “A basic principle is that responsibility during STS operation rests always with the tanker owner involved in the operation and could not be forwarded, or hoisted by any means to any sub-contractor, or other participant. Therefore, all tanker owners should exercise (and be able to prove they have in fact exercised) due diligence as far as a specific STS operation is concerned to the satisfaction of their H&M and P&I underwriters. “In order for tanker owners to do that, apart from the development of a proper and approved STS plan, they must always perform before an STS operation, a thorough screening with respect to the participating parties (ie service providers/POACS/daughter vessels) to ensure that these participants fully comply with the resolution requirements. Such screening of course can be made through experts who specialise in such matters,” he said. Apart from liabilities associated with the shipowners, there were concerns expressed by Capt Bob Gilchrist from SAFESTS and Capt Raymond Ambrose from Shipload Maritime Pte associated with the role of a POAC in the STS operations under the new regime. There is specific wording in the POAC qualifications within the Manual on Oil Pollution, section 1, § 6.2.1.2 that may initiate liabilities from the coastal states for POAC’s. Considering the logistics of the STS operations, it is not practically feasible for the POAC to have a thorough knowledge of both participating vessels’ STS plans prior to the commencement of the operation, or be able to ensure various safety provisions that should be held under the operational responsibility of the Master of the vessel. Furthermore, if the STS plans are not followed, in addition to the vessels responsibilities, the POAC might be held accountable by the coastal state for an incident. For this reason and in order to protect their liabilities, some STS service providers issue LOIs to their contractors, or shipowners, in order to be indemnified in case of an accident. However, this practice is not accepted by the P&I Clubs that cover shipowners’ third party liability as explained by Nick Milner from Thomas Miller UK P&I Club. In cases where LOIs were passed onto shipowners, they should seek advice from their P&I Clubs. The theme of IF STS 2012 addressed shipowners. “JUSTIFY YOUR DECISIONS, FOCUS ON THE STS OPERATION, SUPPORT YOUR REPUTATION”. As there is no international regulatory body for controlling the performance of STS operations, responsibility for safety remains with the participating stakeholders. It is their duty to ensure that sound management takes place at all stages of the operation on a proactive, as well as post phase operation and be able to prove that they do so. Finally, DYNAMARINe representatives said that they intend to organise an STS event annually in different maritime hubs TO worldwide.

JUSTIFY YOUR DECISIONS, FOCUS ON THE STS OPERAT ON, ATI SUPPORT YOUR REPUTAT ON T TI
Screening and Risk Assessment for Participating Vessels, Service Providers and POAC’s Evaluation of Manager’s STS Policies with respect to commercial impact and TMSA Statistics and KPI’s from Unique STS Assessment Customized Database Customized solutions for charterers and coastal authorities
61 AFRODITIS STR. ELLINIKO 16777, GREECE, +302109628379, www.onlinests.net, [email protected]
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Absorption/desorption in tank linings
This paper, edited by Gard Reian of Jotun Coatings R&D department*, looks at the absorption/desorption of different cargoes in two different no-volac epoxy tank linings.
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nvestigations show that the degree of absorption is highly dependent on the specifc cargo and its chemical functionality. It was also seen that absorption/desorption testing alone cannot help differentiate between the quality of different coatings. Chemical tankers are built to carry a wide range of chemicals worldwide, including petroleum products, specialised chemicals and foodstuffs. Some of the more specialist switch from one type of cargo to another in each port. It is important to try and understand the absorption mechanisms in order to avoid cross-contamination and/or premature paint failure. It is also important to understand if absorption testing alone can tell us anything about the overall quality of a coating system. Two different, two-component, novolac epoxy tank linings were investigated; Novolac 1 and Novolac 2, as in contrast to ‘standard’ epoxies, which are diglycidyl ethers of either bisphenol-A or bisphenol-F, Novolac epoxy resins are glycidyl ethers of phenolic novolac resins. These generally have higher functionality and give more cross linking and subsequently a better chemical resistance. They were applied on Mylar® polyester film for easy removal. After application, the coating was cured for seven days at 23 deg C and three days at 60 deg C. During the absorption period, the coating squares were immersed in water (Artificial seawater was made in according to ASTM D 1141. Brackish water was made mixing the artificial seawater with distilled water in the ratio 1:1), or different organic solvents in closed containers. The samples were removed at intervals for weighing. All surface liquids were removed and samples wiped off with a dry paper towel. Weighing was performed using an analytical balance to ~0.1 mg. During the desorption period, the coating was left to ventilate in about 23.1 deg C and weighed periodically until equilibrium was reached. For chemical exposure testing 150 x 75 x 1.5 mm steel panels, with a surface profile of

I

HO

N OH

OH

O N

N R

O

R

O

CH2

H2C

CH2

O

H2C

CH2

O

HO

O

R N

N OH N R R N OH H2C O HO

R HO

O

CH2

Figure 1: A two dimensional cross cut, showing what an amine cured novolac epoxy polymer network might look like. The polymer network contains both polar hydrogen-bonding sites and non-polar alifatic chains and aromatic rings.
70 um and a cleanliness of Sa 2.5 (ISO 85011:2007), were coated with Novolac 1 and Novolac 2, respectively. The dry film thicknesses averaged around 300 um. Several panels of containing each paint were tested to ensure authenticity. Definitions Sorption describes the combined processes of adsorption and absorption.[2] Adsorption is the physical adherence or bonding of ions and molecules onto the surface of another phase. Absorption is the incorporation of a substance in one state into another of a different state. For the sake of this article it is assumed that the migratory process is purely absorptional and all the molecules contributing to weight gain are incorporated in the free volume of the coating film. Desorption is a phenomenon whereby a substance is released from or through a volume. The process is the opposite of sorption (that is, either adsorption and absorption). This occurs in a system being in the state of sorption equilibrium between the bulk phase and an absorbing volume (coating film). When the concentration (or pressure) of substance in the bulk phase is lowered, some of the sorbed substance changes to the bulk state. Some of the most important factors contributing to the degree of absorption into a coating (and following desorption) are temperature, functional groups and molecular size of the absorbed substance.[3] In high temperature conditions, the absorption rate most often increases as does the desorption rate, due to increased molecular movements at higher temperatures. The absorption and diffusion of water in polymeric materials, such as epoxy systems is related to the free volume[4,5] and the

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Figure 2: The two cycles of absorption-desorption of water solutions with varying degree of salinity in coating “Novolac 1”.

Figure 3: The absorption-desorption curves of various organic solvents in coating “Novolac 1”.

polymer-water affinity[5,6]. It is natural to assume that this is also true for other chemical species than water. Methanol and ethanol are related to water in that they are both polar protic molecules (can donate a hydrogen to form a relatively strong hydrogen bond with the hydroxy and amine groups in the polymer network).[7] 1,2Dichloroethane (EDC) and tetrahydrofuran (THF) are slightly polar but they are aprotic and cannot form hydrogen bonds. When the coating is immersed in these chemicals they fill the free volume. Even though they cannot form hydrogen bonds, they can still disrupt the polymer chains as they show more affinity towards the largest part of the polymer network, the parts not containing hydrogen-bonding sites. These non-polar link sites consist of alifatic chains and aromatic rings. They have affinity towards dipoles of the polymer chain through relatively weak dipole-dipole forces or induced-dipole forces. These forces are often called London dispersion forces, or van der Waal’s forces.[8] An example of how the structure of an amine cured Novolac epoxy polymer network might look like is shown in Figure 1. The amount of free volume depends on the molecular packing and is affected by both the

crosslink density (and therefore the extent of curing) and physical aging[9]. The polymerwater affionity is significantly influenced by the presence of hydrogen-bonding sites within the polymer[10]. Water can sometimes be absorbed without causing swelling; when this happens, it is suggested that it remains unbound to the polymer and is effectively accommodated within the free volume[6]. On the other hand, bound water molecules that attach to the polymer through hydrogen bonds disrupt the interchain hydrogen bonds and induce swelling[10,11] and plasticise the polymer. In a Novolac epoxy binder network the hydroxyl (-OH) groups shows good affinity with chemicals containing -OH groups. Other than functional group effects, molecular size plays an important role in the process of absorption. Molecules that are larger than the “mesh” of the polymer network will not absorb into the volume at all. Some molecules might adhere to the surface structure, but the weight increase caused by this will, in the case of thick coatings, be negligible compared to the weight of the nonabsorbing volume. Results



 

In the absorption/desorption of water Novolac 1 was immersed in water with different levels of salinity. The results are given in Figure 2. From this, we see a clear link between water absorption and level of salinity. Tap water and distilled are quite similar and give the highest weight change. Sea water shows the lowest absorption and brackish water comes inbetween. During the second absorption cycle, we see the same trend with sea water giving the least weight increase, but the overall rate of absorption has slowed down a little, using longer time to ‘saturate’ the coating. No data was obtained for brackish water during the second absorption/desorption cycle, as a damage in the coating caused rust to form, making the weight measurements unreliable. Interestingly enough, the desorption rate is quite fast and most all the water left the coating within 24 hours of ventilation. In other words, by using Novolac 1, a tank can be put into service quite fast after sea trials, or after water washing. Water absorption/desorption was not tested for Novolac 2, but similar results could be expected. Different molecules have different size and different affinity to the epoxyamine polymer network, and will subsequently absorb


 

  

   






            













Figure 4: The absorption-desorption curves of various organic solvent in coating “Novolac 2”.

Figure 5: Novolac 1, methanol, 1st cycle.

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Figure 6: Novolac 1, methanol, 2nd cycle.

differently. In Figures 3 and 4 this effect can be easily be seen. Both EDC and THF show a large absorption relative to methanol and ethanol for both coatings. For methanol and ethanol a negative weight change was observed during the desorption phase. It was important to test if this net negative desorption increased further during a second absorption-desorption cycle as this would suggest a systematic breakdown of the coating (or to be more exact, the coating’s organic polymer network). From the two absorption/desorption cycles for methanol and ethanol for Novolac 1, it can be seen that the net negative desorption does not increase further, suggesting that a systematic breakdown is not taking place, but rather that some rest solvents and/or monomers are extracted from the coating during the liquid immersion of the first absorption cycle. This can be seen even more clearly by

splitting up the two cycles and shifting down the abscissa of the second absorptiondesorption cycle (see Figure 6). A GC-MS analysis confirmed that the negative weight change was due mostly to trapped solvents, extracted by the polar medium. Comparing Figure 5 and Figure 6 it can be seen that net weight gain during the absorption phase is larger in the second cycle. This is as expected, seeing that unreacted components were extracted during the first absorption/ desorption cycle, leaving more free volume in the polymer network available for absorption. A promising result is that most all the methanol has left the coating after only one day in air. The fact that the net negative weight is quite substantial during the first absorption/desorption cycle, but not the second cycle, indicates that it might be advisable to wash down a tank lining thoroughly with a polar solvent before it goes

Chemical Methanol Ethanol EDC THF Distilled water, 60°C Methanol fatigue

Novolac 1 OK, 180 days OK, 180 days OK, 180 days OK, 180 days OK, 180 days OK, 10 cycles

Novolac 2 OK, 180 days OK, 180 days OK, 180 days OK, 180 days OK, 180 days Fail, 2 cycles

Long-term chemical exposure testing.

into service, especially if foodstuffs are part of the cargo carried. It is reasonable to assume that water will have the same washing effect as a low molecular polar solvent like methanol. For both 1,2-dichlorethane and tetrahydrofuran the net weight gain during absorption is quite substantial for both Novolac 1 and Novolac 2. The absorption curves seemingly reaches equilibrium after one to two weeks of immersion. During the desorption phase however, Novolac 1 differs from Novolac 2. Interestingly enough, it seems that Novolac 1 reaches equilibrium faster than Novolac 2 during desorption. While Novolac 1 seems to reach equilibrium after just one to three days depending on the chemical, Novolac 2 has not reached equilibrium after 10 days, as following this period, solvent is still trapped in the network. While Novolac 1 seems to show a higher degree of absorption, the desorption is correspondingly fast meaning that Novolac 1 probably has a slightly more open network. For long-term chemical immersion testing, based on the absorption testing described above, it could be thought that perhaps Novolac 2 is a better coating material, seeing that the net weight gain during absorption is lower for Novolac 2 than for Novolac 1 for all chemicals. To further test this assumption, steel panels coated with Novolac 1 and Novolac 2 were exposed to different chemicals, including a cyclic methanol fatigue test (5 days in methanol - eight hours ventilation - two days in water - eight hours ventilation; repeated for up to 10 cycles). The results are given below. It can be seen from these results that there is not much difference between the two coatings. They both withstand aggressive chemicals, quite impressively, for 180 days. However, for methanol fatigue, which is a maximum stress test, Novolac 1 showed no sign of failure while Novolac 2 blistered and rusted severely after only two cycles. So even though Novolac 1 shows a significantly higher absorption than Novolac 2 (compare Figure 3 and Figure 4), this alone does not tell us that Novolac 2 is a better coating. Quite the opposite, the methanol fatigue test shows that Novolac 1 is probably a better coating. One explanation for this is that Novolac 1 has perhaps a slightly more open polymer network allowing for fast desorption, but is still tightly cross linked enough to ensure a good chemical resistance. Novolac 2 might suffer from being too tightly cross linked, and








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subsequently more brittle, and can therefore not handle the same degree of chemical stress. Conclusions This work has raised a lot of new questions, but it has answered some as well. First, it is evident that absorption/desorption testing alone is not enough to differentiate on quality between different tank coatings. It was found that even though the relative absorption of Novolac 1 was high compared to Novolac 2, Novolac 1 was the overall better performer in that it had a faster desorption rate (faster return to service) and a better overall chemical resistance. It was also shown that the degree of absorption is highly dependent on the specific cargo and its chemical nature. [7]Carey, FA; Sundberg, RJ Advanced Organic Chemistry, Part A: Structure and Mechanism, 4th Ed.; Kluwer Academic, New York, 2000. [8]Zumdahl, Steven S Chemical Principles, 4th Ed.; Houghton Mifflin, Boston, 2002. [9]Struik, LCE Physical Aging in Amorphous Polymers and Other Materials; Elsevier: Amsterdam, 1978. [10]Adamson, MJJ Mater. Sci., 1980, 15, 1736. [11]Wong, TC; Broutman, LJ Polym. Eng. Sci., 1985, 25, 529. *Gard Reian M. Sc. Senior Chemist, R&D Specialty Products, Jotun Coatings. Contact [email protected]

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References [2]Sax, N.I.; Lewis, R.J.L. Sr. Hawley’s Condensed Chemical Dictionary, 11th edition; Van Nostrand Reinhold: New York, 1987. [3]Abdelkader, AF.; White, JRJ Appl. Polym. Sci., 2005, 98, 2544. [4]Duda, JL; Zielinski, JM In Diffusion in Polymers; Neogi, P, Ed.; Marcel Dekker: New York, 1968. [5]Van der Wel, GK; Adan, OCG Prog. Org. Coat., 1999, 37, 1. 9 [6]Van Landingham, MR; Eduljee, RF; Gillespie, JWJ. Appl. Polym. Sci., 1999, 71, 787.

Tank cleaning and waste disposal firm’s European expansion
OTI Greentech has increased its market presence in the maritime sector by signing further agreements.
he company has entered into additional agreements for its EcoSOLUT tank cleaning products in the maritime sector for a total turnover of €1.6 mill. This came only five months after gaining IMO approval for its products. Through its UK subsidiary, the group has signed a distribution agreement for the tank cleaning products with Uniservice Germany Marine Products GmbH. Uniservice Germany is a licensee of Uniservice SA in Geneva, the fourth largest supplier to the shipping industry with branches in over 785 ports worldwide. Also affiliated with Uniservice Germany are Oslo Ship Service and Hansa Safety in Rotterdam. In addition, a distribution agreement was signed with OSEC (Oil Spill Environmental Cleaning), a specialist in tank cleaning and oil disposal, with offices in Greece and the southeastern Mediterranean region. Over the past few months EcoSOLUT products have been used by various shipping companies, including Maersk and Waterfront

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and repeat orders have been placed. Demand for the products has increased significantly, requiring the company to expand its international distribution network as a matter of priority. Together with the first orders from Canada for the treatment of oil sands and drilling muds, total purchase orders received during the second quarter of this year amounted to €2.2 mill. “With Uniservice Germany and OSEC we have managed to secure two well known and experienced partners in important markets for the distribution of our products”, Stephan Rind, chairman of OTI Greentech said on the execution of the two new agreements. “Demand for our EcoSOLUT products, in particular in the tank cleaning sector, has exceeded our expectations. With our new partners we are, however, well prepared to satisfy this demand.” Christopher Cappelen, managing shareholder of Uniservice Germany, said: “I am very pleased to include the EcoSOLUT products in our product offering for our demanding clients in the shipping sector. The

products set new standards in cost efficiency, safety and environmental friendliness in the tank cleaning sector.” OTI is an international clean technonolgy engineering group based in Switzerland. The company provides environmentally friendly solutions and a patented technology for cleaning, recovery and disposal of oil in a wide variety of applications, including the marine sector. Uniservice Germany Marine Products is headquartered in Hamburg, Germany. It is privately owned by Cappelen and is a licensee of Uniservice SA, who own and control the Uniservice trademark worldwide. While Geneva-based Uniservice has licensees covering 785 ports worldwide, Uniservice Germany has exclusive rights to the Uniservice trademark in Germany. Moreover, Cappelen is a licensee to the Uniservice trademark in nine other countries (Norway, Baltic States and CIS) through his privately owned Oslo Ship Service and Hansa Safety Services.

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Making money in a tough market
In the second and concluding part of Tanker Operator’s Athens conference (see Tanker Operator, May, page 63), speakers and panellists covered a variety of subjects aimed at survival in today’s tough market.
his survival instinct comes at a time when investment in new technology has never been higher, mainly driven by regulatory bodies. Innovation could be one of the keys to success. Emmanuel Vordonis summed up by saying; “We have to cope with investments, which have cost a lot of money. We have to be smart enough to cope with the capital environment. “In the 1990s, when we wanted to cut costs, everybody was getting angry. We focussed on reducing mis-performance, for example, anchors lost, ships arriving late, just vessels breaking down. “We had a campaign of reduction of mistakes. We know we cannot achieve it with smart ideas and young guys from Harvard. We need people on board to be committed and love what they are doing. It is not an issue of finding the good people and managing them well - it is an issue of managing the complete team. “Dinosaurs died because they had a very big body and a small brain. Every instrument needs to work efficiently. “A factor of sustainability will be a true inspiration. You can’t have an inspired man to work on the open seas, unless he feels he is important. The most important factor is to love, respect and believe in the people - to be a strong team. This is should be the profile of a company in the next five years,” he said. “Innovation is useful - but is innovation only about technology?” he asked. He gave an example of a super charterer who said, ‘I’ve sold to China 10 mill tonnes of iron ore at $300 per tonne. Then I went to Brazil and bought 10 mill tonnes at $150 per tonne. I went and fixed 50 ships to move the iron ore at $80,000 per day and had $20 per tonne left for me. ‘Then the Chinese said, listen we cannot pay $300 mill per tonne anymore. We want to pay $150 per tonne’.

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Now everybody is chasing each other in court. This is where the word innovation can work. This is teaching that our system is not adequate to sustain such huge shocks. Can we continue with antagonistic contracts? Or look for synergies with big shipping communities closer to cargo communities. Create sustainability for both.” Vordonis continued; “We have been infected by this environmental hyper activeness. We have been overdriven by Mr Gore. Now economies are suffering - are we now in a position of overspending for these superefficient ships, ballast water treatments, etc? Instead of remaining static, regulations are moving too fast. “Let’s do what is necessary to protect our children but do not go too far, otherwise millions of tonnes of steel will be scrapped for no purpose,” he concluded. Lambros Babilis, CEO StealthGas said that a plethora of regulations, voluntary schemes, statutory requirements, vetting schemes, vendors of equipment and consultants bombard shipowners and shipmanagement companies daily. Today a management team has to contend with ISPS, SEEMP, EEDI, ECDIS, EIAPP, NOx and Sox emissions, carbon footprint, BNWAS, MLC, ballast water treatment, ISO 9001, ISO 14001 and ISO 50001. All of these lead to various problems of compliance, adoption, cost control and efficiency. In a challenging marketing like the one we face today, the answer is neither easy nor a simple one. The credit crunch in the financial sector makes the problem even worse while wrong decisions may impose a heavy economical burden to the shipping companies. In this respect hasty decisions should be avoided while on the other hand lack of action is not a prudent decision either. Early adoption of innovations is not always the best solution. It may be used as a

marketing tool to imply dedication to quality and safety but there are plentiful occasions where adopted new, so called innovative solutions do not prove themselves but have the opposite effects. Furthermore, it is quite understandable that early adopters do carry the burden of R&D until new technology becomes commercially available and widespread. One such example are ballast water treatment systems. Currently there are about 30 plus of approved systems. The more that get approved the lower the price becomes. Unfortunately, there are companies that have been advertising their systems, which have finally abandoned their plans without getting their systems approved and there is also a real danger of already approved systems becoming a commercial failure and having to be abandoned within a few years after being installed on board vessels, leaving the owners totally exposed. Another example is the emergence of fuel efficient ships. Fuel efficient ships, compared to the vessels ordered at the peak of the market, do not only cost half the price of those ordered during the boom but also have significantly reduced fuel consumption that may lead to a two-tier market provided fuel prices continue to rise. In this case the long-term impact of the newer generation of fuel-efficient ships could be significant enough to shorten the life of the existing fleet even to 15 years. This is true in the case of everything else being equal with current market conditions because in case of a sudden market upturn, the effect could be the opposite and the new generation of fuel efficient ships may be in a disadvantageous position due to de-rated engines, lower speeds and lack of horsepower. Oil company concerns Oil companies worry whether they can trust owners when it comes to the quality of their fleets, as they are increasingly concerned that the pool of owners with high quality tonnage

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that they can do business with is shrinking due to low earnings resulting in the slippage of maintenance checks. The increased deficiencies found by oil companies during ship vetting means that far more vettings are carried out than the number of vessels ultimately fixed. This is an extra administrative burden for oil companies who are spending more time and expense trying to find a ship that meets the required standard. On the other hand, oil companies have to realise that this is not a one-sided problem, the solution of which relies totally on owners’ shoulders while prolonged low rates make the industry unsustainable. Worldscale is usually out of line with reality when it comes to compensating owners for rising bunker prices after the flat rate is set. A better co-ordination and co-operation between stakeholders is required in this respect. Another issue mostly in good markets is time. “I believe any tanker operator in this room has faced the problem of requesting some offhire time for planned, or preventive maintenance, which the commercial department of an oil company refuses to grant him, or her due to vessel’s hectic schedule. This usually occurs in good markets and is contrary to the same oil company’s vetting department typical advice for preventive maintenance,” he said. Paying a premium in today’s market for high quality tonnage would help to overcome the problem and help owners to maintain high safety standards. Without doubt, the market will find equilibrium but until this is reached and through the transition period, the industry cannot afford a major accident, due to lower safety standards. So what is the solution? “I am afraid I cannot offer a silver bullet. The way I see it, I believe that there is always some fat on the operational budget without this being necessarily maintenance, or safety related. What someone should keep in mind is that this fat is not static and may move among different parts of the operational budget over time. “What is needed is a constant very thorough surveillance of the running costs in order corrective actions to be taken on time. In this respect a tool for monitoring daily running expenses versus budget is required. This tool in many cases is quite different from the tools used by the accounts departments and should refer down to purchase orders instead of the frequently late invoices that are used by accounts departments,” he said. “In an effort to reduce operational costs further, one needs to re-evaluate the option of using in-house specialists and technicians June/July 2012

Lambros Babilis.

Emmanuel Vordonis.

against outsourcing and sub-contracting. The answer to this dilemma is obviously related to each company’s size, commitment and internal resources, while the larger the company is, the higher the economies of scale are for use of in-house expertise. “Furthermore what used to be the optimal answer to this question three years ago, does not necessarily means it is still valid today, therefore frequent re-examination is required,” he stressed. “On investment for the longer term, either

in new innovative tonnage, or in new technologies and retrofits, my suggestion is one has to be very cautious and self restrained because hasty, or wrong decisions may prove extremely expensive. In this respect jumping on the wagon of the newest technology, or idea is not always rewarding. It would be better to adopt technologies, or ideas that have up to a point proved their merits even though they are not globally adopted, “Babilis warned. As far as newbuildings are concerned,

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the last few years. “Very often” Machera said, “cost reduction and safety improvements are seen as conflicting goals. Advanced technologies can resolve this conflict and enable improvements in both areas at the same time.” Using GLs advanced hull integrity solution GL HullManager will lead to reduced maintenance effort and steel repair costs, as problems can be detected earlier and appropriate and timely maintenance can undertaken. At the same time, the risk of structural failures can be reduced, which can lead to major pollution related incidents that can damage the company’s reputation. By the systematic monitoring of the hull efficiency and transparency company confidence will be increased and compliance will be demonstrated to the highest degree, resulting in building strong relationships with the oil majors. With GLs navigational decision support solution, GL SeaScout, efficiency is improved by the optimisation of fuel consumption and voyage schedule integrity while at the same time protect the vessel, avoid sloshing, protect the crew from injuries and ensure a safe passage. This system acts more than just a weather service provider, as it takes into consideration the vessel specific responses and tank fill levels, Machera explained. Conference chairman Dimitris Lyras, director Lyras Shipping summed up by saying; ”We can improve on co-ordination between the shipping company and the oil company with delivering spares to terminals, maintaining ships alongside, which would cut costs. “We’ve talked about ballast water legislation and come to a conclusion, which is perhaps workable to get our lobbyiests to push the dates back. “Another major theme is an element of leading - empowering our people, which will carry us through to the next boom. Managing people isn’t new - there’s no science that TO hasn’t been tested in time,” he said. further introduction of unilateral, ill prepared, technically infeasible and contradictory legislation and requirements that increase costs, complexity and at the end of the day reduce safety reliability,” he concluded. Turning to the use of software, Vicky Machera, director GL Maritime Software Southern Europe, gave a presentation on “Using advanced technologies to reduce costs and improve safety”. She said that GL Maritime Software had put much focus on advanced software solutions in *The pictures were taken from a video presentation, which can be downloaded at www.tankeroperator/conferences/athensapril2 012/ Tanker Operator’s next conference will be in Hamburg on 19th September 2012. If you are interested in participating please contact Karl Jeffery – [email protected] (see page 13 for details).

Vicky Machera.

Dimitris Lyras.

owners should consider carefully which ‘new toys’ they want to outfit their vessels with. The addition of many fresh technologies on board may lead to a vessel which is harder for crew to operate, more expensive to maintain and possibly less safe. “Last but not least, I strongly believe that working closely with all stake holders, shipwners unions, shipyards, shippers, international regulatory bodies, classification societies and flag states will improve the understanding of each other and will avoid
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Download videos and presentations from our April 3rd 2012 Athens Conference

“Making money in a tough market”
at http://www.tankeroperator.com/toathapr2012.shtml

Speakers: Martin Shaw, managing director, Marine Operations and Assurance Management Solutions Ltd, ex-VP technical, fleet manager and vetting service manager, BP Shipping Dimitris Lyras, director, Lyras Shipping and founder, Ulysses Systems (chair) Emmanuel Vordonis, ex executive director, Thenamaris Ships Management Mads Friis Sørensen, branch manager, FURUNO European Branch Office Takis Koutris, managing director, Roxana Shipping and chairman, Marine Technical Managers Association (MARTECMA) Captain Andreas Xapolytos, CEO, Tsakos Columbia Shipmanagement George Vassiliades, commercial manager, Tsakos Columbia Shipmanagement

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