Features: Features: - Tanker Operator

TANKEROperator 

APRIL 2008 

www.tankeroperator.com 

Features: 

 

 

 

 

 

 

MEG owners expand fleets 

Too many Indians – no Chiefs 

Class societies facing up to problems 

TMSA to replace vetting? 

Cargo monitoring initiatives 

SECA research findings

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Vol 7 No 5 

Tanker Operator 

Magazine Ltd 

213 Marsh Wall 

London E14 9FJ, UK 

www.tankeroperator.com 

PUBLISHER/EVENTS/ 

SUBSCRIPTIONS 

Karl Jeffery 

Tel: +44 (0)20 7510 4935 

jeffery@thedigitalship.com 

EDITOR 

Ian Cochran 

Tel: +44 (0)20 7510 4933 

cochran@tankeroperator.com 

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David Jeffries 

Only Media Ltd 

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Printed by FISCHER Poligrafia 

ul. Dabrówki 10 

40-081 Katowice 

Poland 

Contents 

04 

12 

16 

26 

News 

Industry topics 

Markets 

New highs seen 

Middle East Gulf Profile 

Local owners expand tanker 

fleets 

Service sector follows suit 

NITC profile 

Manning & Training 

Another checklist introduced 

Simulators for every 

occasion 

Training centres upgraded 

Manning crisis serious 

Intertanko project gains 

momentum 

Front cover photo 

In what is seen in some 

quarters as a political move, 

Sovcomflot's Varandey Arctic 

shuttle tanker Vasily Dinkov 

and her two sisters will fly the 

Russian flag and will be 

registered at St Petersburg. 

Photo credit - Sovcomflot. 

34 

40 

43 

Classification Societies 

Major challenges ahead 

Environmental awareness 

Corrosion monitoring 

Human element 

Tanker vetting 

Will TMSA make vettings 

obsolete? 

Vettings post Erika 

Technology 

43 Cargo monitoring - New 

initiatives 

46 Bunkering - Chemoil 

expands; post SECA changes 

51 Ice Research - LNGCs face 

major problems 

53 Emissions - Distillates will 

double costs 

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Tank Cleaning Advice and Recommended Tank Cleaning Procedure 

Delivery of newly IMO-approved Marine Tank Cleaners from stocks world wide 

Delivery of chemical injection and special spraying equipment 

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April 2008 TANKEROperator 01

COMMENT 

The USCG promises to be nice to seafarers 

In an amazing U-turn, the US 

Coast Guard has softened its 

stance against seafarers arriving 

at US ports and in US waters. 

Several initiatives have taken place in recent 

weeks to allay fears of locked up seafarers, 

detained for the merest of transgressions, or 

just because their documentation was slightly 

wrong, according to the authorities. 

We have seen a senior USCG official 

address the Greek community in Piraeus (see 

page 5) and received a release from Admiral 

Thad Allen, USCG commandant in which he 

offers an olive branch to foreign seafarers and 

their organisations, following what was 

perceived to a be a 'heavy handed' approach to 

security. 

There are those that have called the US 

reaction to 9/11 'paranoid', but, when 

analysing its vast coastline, it can quickly be 

seen that there are many large ports and 

harbours catering for all sort of vessels and 

cargoes, which to the layman looks almost 

impossible to police, especially the large 

container handling ports. 

In an unprecedented move, Admiral Allen 

admitted that he had reports of USCG 

boardings, inspections and investigations that 

had not been carried out with true 

professionalism. "Additionally, some have said 

they lost the complete trust they once had in 

the Coast Guard and are fearful of retribution 

if they challenge the Coast Guard's conduct," 

he said in the statement. 

"We must change this perception. America's 

position in the global economy, public and 

environmental safety and post-9/11 security are 

at stake", he added. "The need for maritime 

industry-government co-operation and 

partnership has never been more important. 

"The Coast Guard's obligation to the safety 

and security of America is shared by the 

maritime industry and enhanced by working 

co-operatively with industry at all levels. 

Openness and transparency will be the 

hallmarks of our maritime interaction, "he 

continued. 

He went on to promise that boarding team 

members, marine inspectors, port state control 

examiners, facility examiners and their 

supervisors shall encourage open 

communication with mariners and other 

members of industry. 

"Disruption in the normal flow of commerce 

impacts many parties in the supply chain," he 

said. "We have clearly established appeal 

procedures when we make a decision that 

could have negative impacts on a licensed 

mariner, or the maritime industry. 

"The exercise of appeal is a right we 

strongly support. Questions, differences of 

professional opinion and appeals are normal 

and improve the conduct of business. We must 

be accepting of these as praise," Admiral Allen 

asserted. "Attempt to resolve problems at the 

lowest level possible and be resourceful in 

doing so," he urged. 

He said that in instances when decisions are 

appealed, unit commanders and supervisors 

must act with a neutral common sense attitude; 

timely resolution is of utmost importance to 

facilitating legitimate commerce. 

"As commandant, I actively engage the 

captains of the maritime industry in round 


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table discussions to uncover what is good and 

bad with our current practices, so 

improvements can be made," he explained. "I 

expect similar maritime engagement at every 

level of the Coast Guard, followed by 

aggressive action to address problem areas," 

Admiral Allen said. 

He followed up by giving this advice;" 

Follow ethics rules and standards of conduct 

in your interactions." 

Admiral Allen also promised that as soon as 

possible, USCG sector commanders will 

solicit candid feedback from individual 

mariners, industry associations and facility 

operators, who have a significant stake in 

marine safety, security and stewardship. 

He went on to say that this feedback should 

be used to identify pending issues needing 

action, best practices and recommendations 

that can be acted upon. Districts will have to 

hold sector conferences to discuss the 

feedback, determine a course of action for 

those that merit action and then close the loop 

with industry on the actions taken, Admiral 

Allen ordered. 

Not stopping there, he promised that 

national level recommendations shall be vetted 

through area commanders and forwarded to 

the assistant commandant for marine safety, 

security and stewardship by 1st June this year 

for consideration in the USCG's marine safety 

improvement efforts. 

"My goal is to purge the past and reset for 

the future," Admiral Allen said. "Open 

communication, critical self-examination and a 

willing transparency are hallmarks of great 

organisations, including the Coast Guard." 

Continuing, he said that he expected USCG 

sector commanders and cutter commanding 

officers to ensure boarding teams, inspectors 

and examiners provide the unit's senior leader 

contact information, if asked, to vessel 

masters, port engineers and facility operators. 

Effective immediately is USCG 

requirements that limit vessel movements are 

to be affirmed by the sector commandant and 

reported to the prevention chief. At a 

minimum, a USCG officer shall engage, by 

phone, radio, or in person with the master, port 

engineer or facility manager to discuss the 

requirements and expectations for resolution. 

As soon as practicable, USCG sector 

commanders, MSU commanding officers and 

cutter commanding officers shall be informed 

on all such decisions. 

Will the USCG's reputation take a turn for 

the better? Time alone will tell. 

TO 

02 

TANKEROperator April 2008

INDUSTRY - NEWS 

Gibraltar to come under the microscope 

The European 

Commission (EC) is to 

investigate allegedly 

uncontrolled activities 

of the bunker storage 

tankers stationed in 

Gibraltar Bay to decide 

whether any action is 

needed. 

This move comes after the 

Spanish ecology organisation - 

Verdemar-Ecologistas en Accion - 

had called on Brussels to 

investigate the matter, claiming 

that there was not any adequate 

monitoring in the area, nor an 

efficient system of fines. 

Verdemar estimated that nearly 7 

mill tonnes of bunkers is 

transferred between tankers in 

Gibraltar Bay. 

The recent case of the drybulk 

carrier New Flame, which 

remained half sunk off Gibraltar 

after colliding with a TORMowned 

tanker last August while 

An STS transfer underway in Gibraltar Bay involving a product tanker and a storage vessel operated by 

Vemaoil (Queensway). 

loaded with scrap, has highlighted 

the dangers to the environment in 

the bay, local sources said. 

An earlier investigation into the 

practice of ship-to-ship transfers 

at sea, took place in the Strait in 

2006 when two Scottish MPs 

made a complaint. This merely 

resulted in some observations 

coming from Brussels a year later 

saying that such operations 

should always be carried out with 

attention being made to the 

environment. 

During TankerOperator's visit 

to Gibraltar last October, we were 

assured by the local authorities 

that STS operations were 

conducted under the strictest 

guidelines, such as those issued 

by OCIMF and that the port 

authority had also laid down its 

own code of practice. 

In Gibraltar Bay, STS 

operations usually take place 

between 30,000-40,000 dwt 

product tankers and 70,000 dwt 

plus storage vessels, which then 

offload the product into 

bunkering barges. 

TO 

04 


USCG clarifies seafarer position 

Members of HELMEPA 

and the Greek maritime 

community were 

informed about new US 

Coast Guard (USCG) 

goals and policy by 

RADM David Pekoske, 

the USCG's assistant 

commandant for 

operations, at a 

HELMEPA event on 20th 

March hosted by 

member-company Ceres. 

Also present were the Hellenic 

Coast Guard's commandant, the 

chairmen of the Hellenic 

Chamber of Shipping and the 

Union of Masters and Mates of 

the Greek Merchant Marine, the 

treasurer of the directors of the 

Union of Greek Shipowners, the 

directors of the Maritime Safety 

and the Marine Environment 

Protection divisions of the 

Ministry of Merchant Marine and 

representatives of other bodies. 

Outlining the new policy 

imposed by the USCG 

commandant with the motto 

"Honour the Mariner", he 

presented the main fields of 

activity aiming at reinstating the 

USCG on the side of international 

shipping, following severe 

criticism of the treatment of 

seafarers in US ports and waters 

from some quarters. 

He said; "This way, seafarers 

and companies are valuable 

RADM David Pekoske addresses the Greek shipping community. 


partners in accomplishing 

common goals in the fields of 

pollution prevention, maritime 

safety and security". 

Of particular significance were 

the Admiral's statements 

regarding the opening to maritime 

traffic in the Bering Strait and 

USCG preparations on matters 

pertaining to safety of navigation. 

Referring to the recently 

announced ship's manual put 

together by HELMEPA and GL, 

he said that it constitutes an 

exceptional follow-up to the 

initial edition and a useful tool 

both for vessels at sea and for 

land-based management 

companies. 

An extensive discussion 

followed, co-ordinated by 

HELMEPA's vice chairman 

Nicolas Tsavliris, during which, 

the participants commented on 

and clarified various issues of 

concern and in particular ships' 

inspections in the US. 

TO 

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Dramatic increases in total and partial losses 

Leading underwriters 

have reported a 

dramatic increase in the 

number of ship total and 

partial losses, and said 

that the upward trend 

looked likely to 

continue. 

Statistics released last month by 

the International Union of Marine 

Insurance (IUMI), which 

represents marine underwriters 

worldwide, indicated that the total 

figure for 2006 had jumped from 

an early estimate of 67 to 92 (all 

figures relate to ships of 500 gt 

and over), an increase of 37%. 

Reported so far for 2007 are 82 

total losses (compared to 67 for 

2006 at the same point - March). 

If reports increase at the same 

level as 2006, said IUMI, by 

March 2009 the total will be 112. 

Therefore, the downward trend of 

total losses over recent years will 

RS joins forum 

The Maritime Register 

of Russia (RS) has 

become a member of 

the Tanker Structure 

Cooperative Forum 

(TSCF). 

At the TSCF steering 

committee and working groups 

meetings, RS will present its 

latest scientific research on 

safe tanker operation in severe 

climate. 

RS has already co-operated 

with the TSCF as in 2007, it 

contributed to a report for a 

meeting on the development of 

be sharply arrested. 

There has been an equally 

dramatic increase in major 

serious or partial losses. IUMI 

said: "…727 serious incidents 

have been reported for 2006, a 

6% increase since the last report, 

and a staggering 914 so far for 

2007. This is a 270% increase in 

one decade, 1998-2008." 

The statistics, relating to the 

marine and offshore energy 

markets, collated and analysed by 

IUMI's facts and figures, ocean 

hull and offshore energy 

committees, are based on 

information from a number of 

authoritative sources, including 

Lloyd's Marine Intelligence Unit, 

Clarkson, Rigzone, Willis, and 

the International Association of 

Drilling Contractors. 

Other highlights included: 

The increase in tonnage lost in 

2006 since the March 2007 

Arctic double acting (DAT) 

shuttle tankers for the 

Prirazlomnoye field. 

"Tanker safety issues 

become more urgent due to the 

development of offshore oil 

and gas fields and rapid 

growth of hydrocarbons 

overseas transportation", said 

Nikolay Reshetov, RS' director 

general. "Safety at sea and 

pollution prevention are the 

main tasks for the Arctic 

region with its severe climate 

and ice impact upon ships. RS 

holds the leading position in 

report was 40% (508,141 gt 

rising to 715,032 gt). Tonnage 

lost in 2007 was slightly down 

on 2006 at the same point - 

481,741 gt. 

The increase in total losses 

was also noticeable as a 

percentage of the world fleet 

where the percentage of 

tonnage lost had almost 

doubled from 2005 (0.06%) to 

2006 (0.11%), with 2007 at 

this stage being 0.08%. 

Weather remained the major 

cause of total losses, but 

collisions overtook groundings 

as the next most common 

proximate cause. 

The 270% increase in major 

serious losses over the 10-year 

period is equivalent to 0.64% 

of the fleet suffering a serious 

partial loss in 1998 to 1.73% 

in 2007. Machinery damage 

continues to be the major 

providing failure-free 

operation of ice ships. Now 

the TSCF members have an 

opportunity to use the 100- 

year RS experience of 

surveying icebreakers and ice 

ships". 

TSCF was founded in 1983 

with a view to sharing 

experience with structural 

aspects of tankers. At the 

moment there are 27 members 

besides RS: These include 

leading classification 

societies, tanker operators and 

oil companies. 

 

cause of serious partial losses, 

with a frequency of 

approximately 35% in the past 

five years. 

Number of factors 

Commenting on the statistics, 

Deirdre Littlefield, the New Yorkbased 

president of IUMI, said: 

"These figures underline the 

relentless surge in marine claims 

that has come about due to a 

number of factors, not least being 

the shipping boom itself with 

ships and crews being driven 

harder than anyone can 

remember. Further, the figures 

dramatically demonstrate the 

volatility of marine risks. 

"Regrettably," she added, "this 

dangerous spiking of the casualty 

graph is happening when the 

worldwide premium base for 

marine insurers is flat and 

competition is rife. Underwriters 

are struggling to obtain realistic 

increases in their pricing of risks. 

But they can and must help 

themselves by showing discipline 

and practising responsible 

underwriting. 

"Risk calculation, not risk 

taking, must be the underwriter's 

primary concern." 

In its shipping analysis, IUMI 

noted the continuing growth of 

the world tanker fleet, with 412 

vessels delivered in 2007 and 

only 75 scrapped. However, a net 

growth of 337 compares with the 

much stronger net growth of 411 

tankers in 2006. 

Scrapping of the tanker and 

bulker fleets remains very low, 

about 0.5% of the world fleet in 

both sectors. 

TO 

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06 


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Sperry wins global satellite partnership 

Iridium Satellite has 

appointed Sperry Marine, 

a Northrop Grumman 

Corp business unit, as 

the global support 

partner for its Iridium 

OpenPort optimisedbandwidth 

marine 

satellite systems. 

"The alliance with Sperry Marine 

is an important element in our 

strategy for rapidly capturing a 

significant market share in the 

marine broadband sector this year," 

said Greg Ewert, executive vice 

president, Iridium Satellite. "Since 

our public launch of Iridium 

OpenPort at the Satellite 2008 

conference (in February), we have 

had an overwhelming response 

from the marketplace, and the 

Wärtsilä and Jiangsu 

Rongsheng Heavy 

Industries (RSHI) have 

jointly signed a licence 

agreement for the 

manufacture and sale of 

Wärtsilä low-speed 

marine diesel engines by 

RSHI in China. 

RSHI plans to build a new factory 

to build the low-speed engines in 

Hefei, Anhui Province. The factory 

will have a targeted annual engine 

production capacity totalling 5 mill 

bhp (3,600 MW). 

Wärtsilä said that this 

agreement gives RSHI the right 

agreement with Sperry Marine will 

provide a worldwide network of 

trained service locations for 

installing, commissioning, testing 

and servicing the shipboard 

equipment." 

"Sperry Marine is uniquely 

qualified to be the global support 

partner for Iridium OpenPort with 

our network of offices in 16 

countries and more than 250 

service depots covering every 

major seaport in the world," said 

Andy Fraser, director of 

worldwide service, Sperry Marine. 

"We will also leverage our IPbased 

ServiceNet tools to ensure 

efficient and timely shipboard 

service for Iridium's customers." 

Under the agreement, Sperry 

Marine will supervise, install and 

to manufacture certain types of 

low-speed engine types of 

between 48 and 96 cm bore size 

at its works. The first delivery is 

scheduled by the end of 2009. 

"The licence agreement with 

Wärtsilä is an important milestone 

for the expansion of RSHI into the 

marine equipment business. This 

agreement will enable RSHI to 

produce today's most advanced 

low-speed diesel engines for its 

own shipyard as well as for external 

customers, securing RSHI's future 

leading role in the Chinese ship and 

engine building industries", said 

Chen Qiang, RSHI's president and 

commission the Iridium OpenPort 

terminals, provide on board service, 

technical support and warranty 

repairs, and develop training 

packages for technical staff around 

the world. Sperry Marine will also 

provide logistics, handling and 

distribution of equipment inventory 

at prime support locations, and will 

provide workshop repairs at the 

Sperry Marine centre at 

Vlaardingen, Netherlands. 

Major contract 

A major order was also signed with 

Zodiac Maritime Agencies, which 

is to equip its fleet of 125 ships 

with OpenPort under a service 

agreement with the AND Group. 

Through the AND group, 

Zodiac is installing Iridium 

Wärtsilä increases Chinese presence 

vice chairman. 

This licence agreement provides 

RSHI with the latest technology 

for low-speed diesel engines 

including the most modern 

electronically-controlled commonrail 

technology. Support for the 

manufacture of low-speed engines 

will be provided by Wärtsilä 

Switzerland, which is the group's 

centre of excellence for the design, 

development, research, marketing, 

licensing, servicing and support of 

low-speed engines. Wärtsilä will 

also assist RSHI in setting up the 

new engine factory. 

In addition, Wärtsilä has 

Fuel oil tank protection service launched 

Germanischer Lloyd (GL) 

has launched a new 

service aimed at the 

protection of fuel oil 

tanks. 

Apart from drawing pre-checks, 

GL offers design optimisation to 

help meet the new MARPOL 

requirements on fuel oil tanks and 

therefore improve the 

environmental safety of the ship. 

Additionally, the class society 

has paid special attention to 

technical solutions, which reduces 

the economical impact on the 

design, GL said. 

The revision of MARPOL Annex 

I Regulation 12A specified the 

design requirements for fuel oil 

tanks in newbuildings. It sets the 

requirements concerning the 

location and size of the fuel tanks in 

all ships with an aggregate oil fuel 

capacity of 600 cu m and above. 

The regulation is valid for 

vessels whose building contract 

was signed on or after 1st August 

2007, or the delivery is scheduled 

on or after 1st August 2010. In 

absence of a building contract, the 

regulation is applicable to keels 

laid on or after 1st February 2008. 

To minimise the economic 

impact on shipowners, the 

regulation defines two alternative 

design approaches: a rather 

pragmatic set of descriptive rules, 

and a more sophisticated 

probabilistic approach. 

OpenPort's multiple phone lines, 

IP connectivity and tailor made 

data speeds up to 128 kbps, with 

low-cost hardware and flexible 

per-megabyte pricing plans, 

according to Greg Ewert. 

"Zodiac originally fitted its fleet 

with Iridium systems and AND 

software in 2006, and has realised 

significant savings in monthly 

communication costs," claimed 

Ian Robinson, ceo, AND group. 

"After evaluating its projected 

requirements for ship-to-shore 

voice and data, Zodiac has made 

the decision to upgrade to Iridium 

OpenPort across the fleet." 

According to Robinson, the 

first installations took place in 

March, with rollout to the entire 

fleet by the end of this year. TO 

signed a global service agreement 

with the leading screw pump 

manufacturer IMO of Sweden to 

establish a stronger after-sales 

network for IMO's complete 

product range. 

The co-operation agreement 

signed in February will result in 

an important addition to the range 

of products and services 

supported by the Wärtsilä 

network and increase the 

servicing outlets and availability 

of IMO pumps and spare parts. 

The agreement was made for two 

years, with provision for one-year 

extensions thereafter. 

TO 

Both methods provide 

equivalent degrees of protection. 

While the descriptive method 

specifies the width of the 

protective double hull in a way 

similar to that of MARPOL 1/19 

requirements for cargo oil tanks, 

the probabilistic approach includes 

a far greater number of parameters. 

Based on hypothetical oil 

outflow probabilities, it includes 

oil spill calculations for side and 

bottom damage. 

TO 

08 


First Class tankers: a new perspective 

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Professional bunkering qualifications on the cards 

The International Bunker 

Industry Association 

(IBIA) has commissioned 

an independent study 

into the feasibility of 

instigating professional 

qualifications for the 

global bunkering 

industry workforce. It 

has put the study out to 

tender, and expects to 

announce the successful 

bidder by the end of 

June this year. 

IBIA secretary-general Ian Adams 

explained, "IBIA does not want to 

become a training establishment 

itself. But it recognises the need 

to improve the capabilities of the 

bunkering workforce by 

establishing a comprehensive 

training regimen and independent 

system by which people in the 

industry can be assessed." 

Two levels of qualification 

have been discussed, but not 

finalised. These are the IBIA 

Ian Adams 

Foundation Diploma (IFD) and 

the IBIA Professional 

Qualification (IPQ). 

The IFD could be achieved by 

relative newcomers to the 

industry, or could be structured as 

a refresher course for those 

looking for career advancement. 

The IPQ is envisaged as a 

qualification widely respected 

and recognised throughout the 

bunkering and marine industry 

sectors and as an essential 

qualification for significant career 

advancement. It could comprise 

three parallel in-depth courses 

focused on buying, selling and 

services. 

Among other things, the study 

must address the format which 

these qualifications should take, 

and identify the courses to be 

studied, based on industry input 

into which syllabuses best 

respond to the present and future 

needs of the bunker industry. 

Arbiter 

IBIA envisages that the 

independent study will provide a 

way forward to establishing it as 

the arbiter of training standards in 

the bunkering sector. It is looking 

for responses to the tender from 

independent consultancies which 

understand the bunker industry, 

which are acquainted with a wide 

range of industry participants, and 

which have experience of setting 

up - and involvement in running - 

successful training programmes. 

Adams said, "IBIA will 

determine the form, content and 

level of detail of the syllabuses. It 

will decide on the structure of the 

teaching, examining and 

awarding of qualifications, and 

ensure that they are always up to 

date. 

"IBIA wants to work with the 

right third parties to establish a 

truly international, independent 

system that delivers the training, 

examination-setting, invigilation 

and marking capabilities that are 

needed to carry out this project. 

""People are the bunkering 

industry's most important asset. 

We have to recognise that by 

putting in place proper, 

internationally acknowledged 

qualifications which will 

recognise and reward excellence 

and knowledge in all sectors of 

the bunkering industry," he 

concluded. 

TO 

Dalian 

Ft. Lauderdale 

Hamburg 

Hong Kong 

London 

Mumbai 

New York 

Piraeus 

Roosendaal 

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www.register-iri.com 

10 


INDUSTRY - MARKETS 

Shipbuilding, scrapping 

and chartering 

at new highs 

Starting with shipbuilding, for the next few years, the world's shipbuilding industry 

will take the form of an ‘uneasy calm’ as it adapts to an era of higher material, 

labour supply and product demand. 

We have heard 

stories of 

newbuilding 

contracts being 

cancelled due to finance 

problems, delivery delays from 

Chinese yards, spiralling costs of 

raw materials, Japanese 

companies confronting domestic 

steel mills and delayed engine 

supply. 

When taken together, these 

factors could lead many people to 

take a negative outlook, but 

leading US consultant 

McQuilling Services said in one 

of its latest reports; "the actual 

crisis is not yet on the horizon". 

The main reason for predicting 

a period of calm is that most 

shipyards are full through 2010 

and at today's asset prices, the 

yards are experiencing significant 

revenue. Most of the negativity 

will surround smaller yards and 

shipowners, McQuilling said. 

To analyse shipbuilders' 

operating costs, McQuilling made 

some general assumptions and 

compared the cost of building a 

VLCC in 2002 with the same 

vessel today. In 2002, the 

newbuilding price of a VLCC 

was $65 mill, but today the same 

vessel would cost in excess of 

$150 mill. 

Six years ago, the shipbuilders 

claimed that they were operating 

at a loss. However, McQuilling 

said that they took a more 

conservative approach and 

assumed that the yards were 

actually breaking even. 

Out of the many costs increases 

occurring during the six years, the 

highest was the price of steel. It 

was also found that the cost of 

steel plates rose proportionally 

with that of other flat steel 

products. 

The major Japanese and South 

Korean builders and others have 

major contracts with worldwide 

raw material suppliers. However, 

by their very nature, the smaller 

yards have lower volumes and are 

subject to the market's price 

volatility. Today, smaller yards 

are paying around $200-$300 per 

tonne of steel more than the 

larger shipyards. 

Interestingly, McQuilling said 

that the shipyards' labour costs 

may have increased by a small 

margin. The consultant's 

calculations showed that this 

year, the labour costs were only 

$2.5 mill more than in 2002. 

While the annual compounded 

labour cost increased in South 

Korea by 3%, the productivity, 

measured in gt per hour, had also 

increased due to improved 

manpower effectiveness and 

advance in technology. 

Therefore, despite the increase 

in wages etc, today less manpower 

is required to build a ship in 2002, 

resulting in a an overall minimal 

hike in labour costs. 

McQuilling said that the 

bottom line is that there appears 

to be a significant profit margin 

in today's prices, despite the 

Premium earnings for ice class tankers is becoming minimal. 

12 



...new recycling benchmarks were achieved 

at the beginning of March when the 29,951 dwt 

Zeal built 1983 was sold for $725 per ldt 

on 6,870 ldt to Bangladesh. 

“ 

” 

increase in costs. In the 

calculations, depreciation had not 

been taken into account due to 

the various hedging mechanisms 

adopted by the yards to protect 

themselves against a weakening 

US dollar. 

Of course, the main question is 

- What happens next? Like 

shipping in general, shipbuilding 

is a cyclical business. The 

downside is likely to be 

introduced by the extra yard 

capacity coming on stream at the 

same time as a downturn in the 

number of orders. Ship prices will 

also fall, despite the reluctance of 

shipyards to accept lower levels. 

But for the major yards, there 

appears to be significant profit 

margin to enjoy, before hitting the 

breakeven level. 

makes the future of these vessels 

uncertain in terms of earning 

premium, due to their ice breaking 

capability, McQuilling said. 

The current difference in the 

newbuilding price of a 1A 

Aframax compared with a 

conventional tanker is around $7- 

8 mill. However, the premium in 

earnings for ice class vessels was 

becoming minimal. 

By 2010, the ice class fleet is 

expected to be around 530 vessels 

of different ice classes/categories, 

which is 15% of the current fleet 

of over 27,000 dwt. However, 

many of these are older Ice Class 

II and III types, which are not 

employed on present ice class 

trading routes. 

Analysing the order book, 

McQuilling found that 46% were 

Ice Class 1B, 36% 1A, 14% 1A 

Super and 4% 1C in the 

Finnish/Swedish Ice Class rules. 

In the trading fleet, 1A and 1C 

came equal top with 32%, those 

Off the boil 

Changing the subject, a 

significant reduction in ice class 

tanker orders was noted by 

McQuilling in the consultancy's 

latest weekly report. The last 

report on the subject was 

published in March 2006. The 

decrease in general orders across 

the fleet in 2007 was matched by 

the ice class types in comparison 

to the year before. 

McQuilling said that around 40 

ice class tankers were due for 

delivery through 2010, which 

equates to about half the size of 

the 2006 orderbook. 

The top owners of ice class 

tankers included Tsakos, Latvian 

Shipping, Interorient and Odfjell. 

Tsakos was expected top remain 

the largest owner of ice class 

tankers despite not having any on 

order at present. 

Recent references to global 

warming and melting ice in the 

northern hemisphere, coupled with 

the oversupply of ice class tonnage 



Other deals in the tanker sector 

in March saw vessels sold for 

recycling at between $705-$725 

per ldt. These included a 

Panamax and two small 

Aframaxes, according to BRL 

Shipping Consultants. 

The previous high was 

recorded in February when $670 

per ldt was agreed by 

Bangladeshis for the Aframax 

Carmelia. 

It was not thought that this 

situation would last as the price 

of steel was dropping in 

Bangladesh and there were not 

many new candidates coming 

onto the market. 

The cost of building a VLCC has escalated. Photo credit – MOSK. 

trading to 1B amounted to 26%, 

Category II vessels were 9% of 

the total and 1A Super just 1%. 

Scrapping prices record 

Meanwhile, new recycling 

benchmarks were achieved at the 

beginning of March when the 

29,951 dwt Zeal built 1983 was 

sold for $725 per ldt on 6,870 ldt 

to Bangladesh. 

However, this level was 

quickly exceeded a couple of 

weeks later when the 1987-built 

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Chartering highs 

On the chartering front, 

VLCC C Elephant was also 

committed to Bangladesh 

breakers for $750 per ldt 

(around $24 mill). It was 

originally reported at $760 

per ldt. 

Her near sister - B Elephant - 

went a week or so before for 

$715 per ldt ($22 mill plus on an 

ldt of 31,446). This deal was 

thought to have included up to 

Aframaxes hit $129,000 per day 

for Mediterranean trading on 19th 

March, the highest since October 

2005, spurred on by a sudden 

shortage and the oncoming Easter 

Weekend. A week before they 

were hovering around $32,000 

per day. 

Suezmaxes followed with 

Black Sea to Mediterranean being 

concluded at $135,000 per day 

1,200 tonnes of bunkers. ahead of the recent Easter. TO 

Shipbuilding cost 

allocation of a VLCC 

in $ mill 

Estimated cost 2002 2008 

65 150 

Materials (%) 30 (46) 75 (50) 

Steel 12 (18.5) 40 (27) 

Machinery, eqpt 12 (18.5) 23 (15) 

Piping, painting 6 (9) 12 (8) 

Labour 30 (46) 32.5 (22) 

Gen and admin 5 (8) 9 (6) 

Overhead & facility 4 (6.4) 7 (4.7) 

Commissions 0.6 (1) 1.5 (1) 

Design 0.4 (0.6) 0.5 (0.3) 

Profit* 0 (0) 33.5 (22) 

*The profits were estimated basis Japanese and South Korean 

major yards. Payment is assumed on 5 x 20 schedule. 

Source: McQuilling Services 

14 


INDUSTRY - MIDDLE EAST GULF 

Tanker owners 

press ahead with 

expansion plan 

One example is the 

National Shipping 

Company of Saudi 

Arabia (NSCSA) 

whose newbuilding VLCCs and 

chemical carriers will double the 

fleet in three years with possibly 

more to come. 

Since TANKEROperator's last 

visit to NSCSA Dubai offices a 

couple of years ago (see 

TANKEROperator, March 2006, 

page 11), the company was about 

half way through its Strategic 

Plan 2006-2010. Included in the 

master plan were both fleet and 

operations growth areas. 

A capital expansion plan was 

approved in 2006 taking the 

investment to SR3.15 bill from 

the original SR2.25 bill to fund a 

huge newbuilding programme, 

which is in full swing. 

16 

By 2011, there could be as 

many as 52 tankers under 

NSCSA's control, said Saleh M Al 

Shamekh, president oil and gas. 

Giving a breakdown, he said 

that the company will own 17 

VLCCs by 2009, as in May 2006, 

a further six VLCCs were ordered 

at Hyundai Samho at a cost of 

around $120 mill per ship, 

bringing the latest newbuilding 

VLCC programme up to eight. 

Two of the eight were delivered 

last year, two will enter service 

this year with the remaining four 

coming in 2009. 

Robert Houston, president Mideast Shipmanagement, see over. 

Newbuilding VLCCs, Suezmaxes, 

Aframaxes and chemical/products carriers 

will boost the local fleets considerably in 

the next couple of years. 

The new orders were 70% 

financed and Al Shamekh claimed 

that 42% of the company's net 

income came from the VLCC 

sector. The mid 1990s-built 

VLCCs were debt free, he said. 

He explained that the 

company's policy was to have 

60% of the VLCCs exposed to 

the spot market with the 

remaining 40% on timecharter. Of 

the timecharters, three were fixed 

to Vela and two were operated by 

Euronav in the Tankers 

International pool. Since 2002, 

more than 65% of the VLCC spot 

voyages have been undertaken for 

just five companies - Vela, Shell, 

BP, ChevronTexaco and 

ExxonMobil. 

Al Shamekh also said that the 

company had completed the 

dockings of all nine of the over 

10-year old MHI class, plus the 

five to six year old SHI class 

VLCCs at Dubai Drydocks, now 

Drydocks World - Dubai, during 

2006-2007. The vessels' systems 

and equipment were upgraded 

and each tanker was given an 

International Paint Intersleek 900 

environmentally friendly fuel 

efficient bottom coating. 

He also said that he had not 

ruled out further newbuildings, or 

even looking at the secondhand 

market should an opportunity 

become available. Any 

secondhand purchases would be 

of no more than five years of age, 

he stressed. 

Chemical carriers 

Chemical carriers also form part 

of the newbuilding strategy, 

through NSCSA's subsidiary 

National Chemical Carrier 

(NCC). Still to be delivered in 

this sector are 18 IMO II type 

chemical carriers, which will 

bring the chemical carrier total to 

32 vessels by 2011, more than 

double the number operating last 

year. The chemical carrier 

newbuilding programme was 

made up of 10 ordered at 

Hyundai Mipo in 2006 and 

another 16 at SLS in two 

tranches. 

The Samba Financial Group 

signed an agreement with NCC, 

for a $392 mill (SR1,470 mill) 

facility to finance 80% of the 

total cost for building 10 of the 

new chemical tankers. 

Samba said in a statement that 

the agreement was thought to be 

the largest single shipping deal in 

the history of the local market in 

terms of amount and number of 

ships funded by a single bank for 

a single borrower. 

NCC said that this agreement 

came in line with the wish to use 

the Shariah-compliant financing 

schemes and investments to 

support the company's current 

and future expansions. 

The parcel tanker types differ 

in that some are part stainless and 

part coated. The 10 x 46,200 dwt 

tankers from Hyundai Mipo are 

zinc coated. Eight have been 

delivered and the remaining two 

were due to be delivered in 



January and April of this year. 

The 16 x SLS 45,000 dwt 

newbuildings due for delivery 

from 2009 through 2011, will 

have a mixture of zinc and epoxy 

coated tanks. 

Of the original 14 stainless 

steel chemical tankers in service, 

six are operated in the Odfjell 

pool, while seven are on long 

term charter to SABIC. With the 

deliveries, this year NCC 

expected to have more exposure 

to the spot market. Major 

charterer SABIC was forecast to 

double its capacity for chemical 

exports, which bodes well for the 

parcel tanker trades, the company 

thought. 

In 2005, NSCSA acquired a 

30.3% share in Petredec, which 

Al Shamekh said proved to be a 

well-timed and highly profitable 

deal. Petredec is a company 

involved in trading, owning and 

operating around 53 LPG carriers 

of between 5,000 cu m to 80,000 

cu m. Two VLGCs of 82,000 cu 

m capacity are due to be 

delivered this year. 

NSCSA also realigned its 

corporate management structure 

to create greater independence for 

its business units. As a result, the 

core business of oil and gas, 

chemical and general cargo are 

now led by their own presidents, 

such as Al Shamekh, reporting 

direct to the group ceo. 

For commercial operations, 

NSCSA invested in Veson's 

IMOS software system. 

Commercial vice president 

Michael Hudson-Davies said that 

he was very happy with the 

software and was currently 

upgrading the system. 

Shipmanagement 

Last year, Mideast 

Shipmanagement, the in-house 

technical arm of NSCSA, 

appointed former Anglo Eastern 

man Robert Houston as managing 

director. He replaced the retired 

Adel M Al Dulaijan. 

As with most shipping 

companies today, crewing was the 

biggest problem, especially senior 

shipboard staff. NSCSA and 

Mideast employ staff from 33 

different nationalities and have 

their own organisation in the 

Philippines. The company has 

also started a cadet programme 

on board its ships. 

Houston said that he had 

recruited Per Pedersen from 

Odfjell to look after the chemical 

tankers and Ian Hall from Vela 

who will take charge of the 

VLCCs and NSCSA's liner 

activities, which included a fleet 

of conros. 

Mideast has also been 

restructured into separate 

departments each looking after 

the different types of ships. 

Operating procedures have been 

looked at and new IT and planned 

maintenance systems installed. 

Currently, 75 people look after 

26 ships. By 2010, 75 people will 

be looking after around 50 ships, 

Houston explained. There was 

about one superintendent for 

every two or three vessels, but in 

the future there will be one 

superintendent for every four 

vessels. At present, Mideast 

employs 12 superintendents. 

Houston explained that during 

the drydocking periods, at least 

one vessel had 45 riding crew on 

board. This was due to the lack of 

drydock slots available, meaning 

that the tankers could not afford 

to be even a day late, otherwise 

they would miss their slot. 

GEM continues to 

expand 

In February, Gulf Energy 

Maritime (GEM) awarded South 

Korea's Samsung Heavy 

Industries a $160 mill contract to 

build two high specification 

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(HMD). With the delivery of the 

$55 mill Gulf Mist, GEM claimed 

that it had solidified its position 

in the global top 10 chemical 

tanker operators list. 

"The IMO II N2 type, 37,000 

dwt multi-purpose (M-Class) Gulf 

Mist is the third M-Class carrier 

to be delivered in less than four 

months," said Al Falahi, "Like all 

of its sisterships, Gulf Mist will 

go into a long-term charter with 

an oil company. 

Hyundai Mipo’s 37,000 dwt product/chemical carrier design is a favourite of GEM. 

The Aframaxes - the first in 

GEM's growing fleet - are 

scheduled to be delivered 

before the end of 2011 and are 

to be named Gulf Vision and 

Gulf Valour. 

Both will be fully coated LR2 

types of 114,700 dwt each - 

capable of carrying both clean 

petroleum products (CPP) and 

dirty products, such as crude and 

fuel oil. 

"This contract reflects GEM's 

continued expansion and its 

extensive servicing of regional 

and international customers, 

indicative of the company's 

current fiscal strength," said 

Ahmed Al Falahi, GEM's ceo. 

"By 2012, many refineries in 

the Middle East will be up and 

running. The West is slowing 

down on building new refineries 

and GEM will be ideally placed 

by then to transport either dirty or 

clean petroleum products to the 

West. With these two Aframax 

orders, GEM has invested for 

the future." 

GEM's fleet currently 

comprises of 11 modern panamax 

and chemical/product tankers and 

another eight to be delivered 

before the end of 2009. The 19 

strong orderbook was shared 

between Hyundai Heavy 

Industries and Hyundai Mipo 

Dockyard. 

The company recently claimed 

that it had secured over $137 mill 

in revenues on its existing fleet by 

securing long-term timecharters 

and was maintaining above 

average charter rates, including 

spot market levels. The company 

claimed to be the Middle East's 

largest independent commercial 

product tanker operator. 

Headquartered in Dubai, 

GEM's tanker management self 

assessment system (TMSA) had 

been approved by ExxonMobil, 

BP, Shell and ChevronTexaco - 

the first Middle East product 

tanker operator to be approved by 

four of the world's oil majors. 

Established three and a half 

years ago, GEM has built an asset 

value now standing at $1.26 bill. 

The company is a joint venture 

partnership between Dubai's 

Emirates National Oil Company 

(ENOC), Abu Dhabi's 

International Petroleum 

Investment Company (IPIC), the 

Oman Oil Company (OOC) and 

Thales of France under the UAE 

Offsets programme. 

Last October, Gem took 

delivery of its 11th tanker and the 

fifth in a series of 13 tankers on 

order at Hyundai Mipo Dockyard 

Oman and Emirates 

link up 

Oman Shipping (OSC) and 

Emirates Trading Agency (ETA) 

have entered into a joint venture 

to transport ethanol, according to 

the Oman News Agency. 

The joint venture will operate 

two 50,000 dwt tankers to carry 

methanol for Salalah Methanol. 

Operations are expected to start 

in 2010. 

OSC - a state-owned and run 

company which was founded by 

the Omani government in 2003 - 

will own 60% of the jv and ETA 

will own the other 40%. 

Currently, OSC owns and 

charters 20 vessels transporting 

LNG, crude oil, refined 

petroleum products and 

petrochemicals. The company 

also has a seafarer training 

programme for Omani youth, 

according to the news agency. 

Meanwhile, ETA has linked up 

with Mitsui OSK to operate 

VLCCs and recently purchased 

two Aframaxes for $62 mill each, 

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18 



according to BRL Shipping 

Consultants. They were the sisters 

Minerva Emma and Minerva 

Libra (105,000 dwt/built 99). 

ETA undertakes its own 

shipmanagement and crewing and 

has many affiliates in the 

transport and logistics sectors. 

Gulf Navigation doubles 

profit 

Gulf Navigation's (GulfNav) net 

profit rose by 120% in 2007, the 

company claimed. A net profit of 

Dhs116 mill ($31.6 mill) as against 

Dhs53 mill in 2006 was declared. 

In August 2007, GulfNav took 

delivery of its first VLCC - Gulf 

Sheba. She was immediately 

entered a three year timecharter 

deal to TMT at $52,000 per day. 

The company currently operates 

eight tankers, including the VLCC, 

a suezmax and six Probo carriers. 

By the middle of this year, two 

of its four newbuilding 46,600 

dwt chemical carriers will be 

delivered from Hyundai Mipo. 

The other two plus two 44,000 

dwt tankers from SLS will join 

the fleet next year. Four have 

been long term chartered to 

SABIC for 15 years, while the 

others are expected to join the 

Stolt pool. 

GulfNav Holding is a UAE 

holding entity with 11 specialist 

subsidiaries. The Company 

moved to Dubai in 2003 and was 

established as a local Emirates 

holding entity with subsidiaries in 

Saudi Arabia, Kuwait and Oman 

and joint ventures in the UAE 

and Greece. The partners operate 

sister companies trading in oil 

and derivatives and dry chemicals 

and fertilisers, with a similar setup 

in the Gulf Cooperation 

Council (GCC) countries. 

The group's profile has 

expanded into other activities, 

such as protective agency and 

husbandry throughout the GCC, 

ship supplies and spare parts, 

bunker supply, chartering & 

brokerage, shipmanagement and 

class and manufacturer 

representation, among others. 

The holding company joined 

the Dubai Financial Market on 

7th February last year. 

Eships expands 

Abu Dhabi-based Emirates Ship 

Investment, (Eships) has 

contracted two 6,500 cu m semirefrigerated 

LPG carriers with 

STX Corp. 

The price for each vessel will 

be about $38 mill and the vessels 

will be delivered in May and July 

2010 respectively. 

Eships is an Abu Dhabi based 

shipping company owned by 

Oman and Emirates Investment 

Holding Company, Mubadala 

Development Company and Abu 

Dhabi Investment Company 

(ADIC). It controls 10 modern 

chemical tankers, as well as 

drybulk carriers. 

Its chemical tanker fleet 

includes five 8,100-8,500 dwt 

vessels and five 13,100 dwt 

vessels. The smaller tankers are 

chartered to oil interests 

worldwide, while four of its 

larger chemical tankers are on 

timecharter to Total. The new 

LPG carriers will also be period 

chartered to Total. 

There are other tanker owners 

in the Gulf region, most notably 

the National Shipping Corp of 

Saudi Arabia (NSCSA) (see page 

16), National Iranian Tanker Co 

(see page 24), Kuwait Oil 

Tankers and Vela, plus others. 

Last year, Saudi Aramco's tanker 

arm Vela International Marine 

ordered four more VLCCs for a 

price thought to be over $150 mill 

per vessel. They were contracted to 

Daewoo for 2010 deliveries. 

A year earlier, the company 

paid $128 mill per vessel for six 

VLCCs from the same yard for 

delivery 2008-2009. 

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Service industries 

expand in Dubai 

Growth in the UAE was on average 7.4% in 2007, due to robust non-oil sectors and 

the high price of oil, fuelling investment by both locals and overseas concerns. 

In the UAE, non-oil sectors 

contributed 65% of GDP 

amounting to 455 bill ($62 

bill), while high crude 

prices meant that oil revenues 

came in at 35% of the GDP last 

year. Manufacturing amounted to 

13% and the service industry 

accounted for 40%, according to 

the economy ministry. 

However, by March the 

weakness of the US dollar was 

having an impact, which was down 

to the UAE dirham being pegged to 

the dollar, as are many of the other 

Middle East country's currencies. 

As a result, the problems with 

the US dollar impacts on 

retaining expatriate staff, reduces 

purchasing power and makes it 

difficult for local shipping 

companies having fixed and 

locally-denominated costs, a 

recent conference was told. 

On the plus side, the UAE 

region will need to fill 15 mill 

Dubai just keeps growing. 

jobs in the next 20 years, while 

the Arab world as a whole will 

need to cater for 74 mill - 85 mill 

new jobs, a study said. 

Down the years there have 

been many service companies 

setting up shop in the Middle 

East, most notably in Dubai. 

Some have been in the area for 

many years, such as shiprepair 

specialists Goltens, Nico and 

Albwardy and the world's leading 

agency concerns. Others have 

arrived more recently on the back 

of Dubai's huge growth potential. 

Dubai Maritime City 

The UAE is setting itself up as a 

major maritime cluster centred 

around the Dubai Maritime City 

(DMC) complex currently under 

construction between Port Rashid 

and the giant drydocks facility. 

Part of the Dubai World Group, 

DMC will be all but finished by 

2009. Drydocks World-Dubai, a 

coming together of Dubai 

Drydocks and Jadaf Shipyard, has 

been awarded the contract to 

manage the industrial part of the 

complex, including the shiplift 

shiprepair complex, which is 

being relocated from Dubai Creek 

to DMC. 

At the time of 

TANKEROperator's visit, the first 

phase of the repair complex had 

already been installed, which 

included a shiplift with a capacity 

of 3,000 tonnes. The second phase, 

housing a 6,000 tonne shiplift, 

should be in place by the end of 

the first quarter of this year and the 

entire complex should have moved 

across by the end of 2008. 

Overall, Dubai is selling itself 

as an area where there is no 

government interference, no tax 

and where the economy is now 

99.9% oil free. It is marketing 

itself worldwide and especially to 

the Indian business community, 

including shipmanagement 

concerns in Mumbai where it is 

claimed that the infrastructure 

was not so business friendly. 

DMC has set its stall out to 

attract as many of the shipping 

companies as possible, both local 

and international. The management 

already claimed that Goltens, 

Albwardy, GMMOS, Granwell and 

Mideast Shipmanagement had 

agreed to relocate their offices to 

the complex. 

Other shipmanagement 

companies are being targeted 

worldwide, including those 

residing in the centres in 

Singapore and the UK in an effort 

to persuade companies to move to 

Dubai, or to set up branches there. 

DMC's management hired DNV 

Solutions to undertake a study on 

maritime clusters, in particular 

trying to answer the question - 

what makes them work? 

In another move, DMC signed 

a MOU on 21st September last 

year with the International 

Association of Maritime 

Universities (IAMU) to build an 

academic centre for maritime 

science in the complex. On 

completion, the Maritime 

Education University will be a 

fully comprehensive education, 

training and research institute, 

which was claimed will play a 

key role in the creation of a 

professional manpower pool for 

the worldwide maritime industry. 

The MOU was signed to 

develop a joint maritime strategy 

and to establish a task force to 

conduct a feasibility study. The 

university will be aimed at post 

graduates offering Masters' degrees 

and Doctorates. It is not intended 

for the training of seafarers. 

20 



UAE facts and figures 

UAE population (2006) 

4.5 mill 

UAE Population (2015) 

15 mill 

Dubai Population (2006) 

1.9 mill 

Dubai Population (2015) 

5.7 mill 

Real Estate Development (2007) $630 bill 

DCCI business registrations 2007 128,000 

Advantages 

No corporate taxes 

No income taxes 

No foreign exchange controls 

No trade barriers 

Competitive import duties 

Competitive labour costs 

Competitive energy costs 

Special Investment Incentives 

100% foreign ownership and control for free zone 

companies 

Renewable 15-year guarantee of no taxation 

No customs duties in bonded areas 

Flexible investment options 

Free capital transfer 

Full administrative and recruitment support 

Upon its completion next year, 

DMC will encompass harbour 

offices, harbour residences, a 

maritime centre, marina, an 

academic quarter and the industrial 

quarter called Jadaf Dubai. 

The project started in April 

2003 when developer Nakheel 

awarded a contract to Van Oord 

to construct a 2 sq km peninsular 

between Port Rashid and the 

Dubai Drydocks complex. 

DMC's holding company Dubai 

World now has 80 companies 

operating in 100 countries 

employing 50,000, including such 

well known names as Drydocks 

World, DP World and Istithmar. 

Clarkson 

Leading shipbroker Clarkson has 

been established in Dubai since 

January 2005 when a drycargo 

team was installed. Since then a 

special products desk has been 

added and a sale and purchase 

broker has arrived. 

During the first three years of 

operation, the staff increased to 

25 and is set to grow still further 

to around 35. In two or three 

years, the office could expand to 

40 or even 50 people, local 

managing director Essam Bella 

said. Bella was previously 

managing director of Londonbased 

Khedivial. 

The idea was to set up a onestop-shop 

shipping advice bureau 

as shipbroking has changed down 

the years from purely chartering, 

or buying and selling of ships to 

offering all types of value added 

services. 

For example, on 1st March last 

year, Clarkson started an Egypt 

ship agency offering services in 

all the local ports, plus Suez 

Canal transits. This year should 

see the opening of Clarkson 

New Delhi. 

In the Middle East, the tanker 

market has traditionally been the 

home of crude oil exports, but 

now Clarkson is involved in the 

growing products, chemicals, 

vegoils, liquid gases sector, while 

a clean petroleum products (CPP) 

specialist was due to start earlier 

this year. 

There will be around 10 people 

involved in the tanker sector by 

the end of 2008, Bella said. Post 

fixture work is also handled from 

the Dubai office. In four or five 

years' time, there could be a 

dedicated gas desk in operation, 

he thought. 

Clarkson is expanding its 

tanker expertise on the back of 

international tanker companies, 

such as Odfjell, Stolt-Nielsen, 

Iino, Tokyo Marine and Berlian 

Laju Tanker among others, setting 

up local offices in the area, in 

addition to the expansion of 

locally-based tanker owners, 

operators and managers. 

As well the more traditional 

broking services, Clarkson now 

offers a running repair centre in 

Fujairah, employing around 

15 people. 

Inchcape Shipping 

Services 

Inchcape Shipping Services (ISS) 

is now part of Dubai World- 

Istithmar (investment in Arabic) 

since being purchased by the 

Dubai World group company in 

January 2006. 

ISS now has 25 offices in the 

Middle East region, plus a subagent 

in Iran. Altogether, around 

900 staff are employed in the 

Gulf Cooperation Council (GCC) 

region. The company used to be 

known as Gray McKenzie until 

1979. 

Dubai-based regional managing 

director Chris Stone said the 

company operated 15 launches in 

the region to service vessels 

offshore, but said there was a huge 

shortage of launches in the area to 

cope with the increasing traffic and 

there was no yard space to build 

new launches. The average waiting 

time to acquire a newbuilding was 

between 12-15 months. 

As the refining capacity 

switches to the region, bringing 

with it more gas, chemical and 

product tankers, the need for extra 

launches will be paramount. Other 

types of vessels visiting the region 

will also grow on the back of the 

massive investment taking place. 

ISS also said that it had 

employed an LNG specialist for 

the growing LNGC and tanker 

department, which will form one 

of the regions new growth 

platforms. ISS has a manning 

agency in India - Adsteam - 

which is looking to recruit 

officers for Middle East-based 

owners and managers. Stone saw 

LNG shipping as an area of 

growth potential for ISS in the 

region and globally. 

He explained that ISS would 

grow in the region organically, 

while geographically, Saudi 

Arabia and India were prime 

candidates for further expansion. 

He also commented that within 

the giant Dubai World group of 

companies, there were numerous 

synergies for ISS to work more 

closely with including Drydocks 

World and Nakheel. 

DNV 

Norwegian class society DNV 

has 16 permanent offices and four 

project offices in the Middle East 

ISS Middle East Regional Offices 

Country 

Iraq 

Kuwait 

Bahrain 

Qatar 

Saudi Arabia 

UAE 

Oman 

Port 

Umm Qasr 

Shuwaikh, Shuaiba 

Mina Sulman 

Doha, Ras Laffan, Mesaieed 

Ras Tanura, Jubail 

Abu Dhabi, Jebel Ali, Dubai, Sharjah, 

Fujairah, Khor Fakkan, Ras Al Khaimah 

Muscat, Salalah, Sohar 



Eivind Grostad 

and India, employing around 450 

people, of which about 160 sit in 

the UAE. 

DNV claimed to be the largest 

class society in the region and the 

fastest growing maritime 

consultancy. Regional manager 

Eivind Grostad said the national 

shipping companies in the area 

needed help as many did not have 

access to the expertise locally. 

Grostad said that DNV classes 

around 38% of all the locally 

operated tonnage and 50% of all 

the tonnage on order, totalling 7.5 

mill dwt, or 90 vessels. Most of 

them are being built in South 

Korean shipyards. 

In addition, eight shipyards 

located in the UAE, Iran or India, 

have contracts with DNV with 

tankers being involved at Iranian 

and UAE yards. 

The class society has set up the 

DNV Academy in India to train 

locals in naval architecture, which 

is a two year course. It houses a 

modelling centre, approval 

support centre and a technical 

consultancy. Grostad said that 

DNV's strategy is to grow the 

consultancy side of the business 

by 30% this year. 

Due to the increased use of the 

Fujairah Anchorage area, DNV 

has five surveyors plus its own 

boat, which was built by Dubai 

Drydocks. At the drydocks, now 

known as Drydocks World - 

Dubai, DNV is classing the four 

50,000 dwt MR product tankers 

recently ordered at the yard. 

Also in Fujairah, given that the 

anchorage is also a huge 

bunkering area, DNV has set up a 

branch of Veritas Petroleum 

Services (VPS) and its local fuel 

testing laboratory handles 6,500 

tests on fuel oil per year. It has 25 

employees. 

Marlink 

Marlink has been established in 

Dubai for more than 10 years. 

The company, now owned by 

Vizada, strengthened its presence 

in 2006 by establishing a legal 

entity - Marlink FZ LLC - located 

in Dubai Internet City. It covers 

the Middle East, Indian subcontinent 

and African regions. 

The same year saw the 

establishment of a local service 

centre, which can install Inmarsat 

and VSAT terminals on board 

vessels locally. An illustration of 

this was the recent installation of 

VSAT terminals on board a series 

of LNGCs while undergoing 

repair at Dubai's large drydock 

complex now known as Drydock 

World - Dubai. 

Marlink offers a VSAT service 

called Sealink to the maritime 

sector and due to the perceived 

"huge potential", is marketing 

VSAT services to the gas carrier 

and tanker traffic passing through 

the area. The company said that 

crew on board gas carriers were 

becoming more demanding 

wanting to have at sea what they 

can access at home. 

Although the cost could double 

for more sophisticated 

communications systems on 

board, many owners and 

managers are being forced to 

install it to retain their seafarers. 

Marlink said that the preferred 

method of installation is while a 

vessel was in drydock, as the 

process might take up to two 

weeks. The ideal scenario was to 

fit the installation at the 

newbuilding stage when the cost 

can be included in the overall 

building contract package. 

Basically the costs range from 

$5,000-$10,000 per month for a 

VSAT solution and the service 

was offered at a "fixed capacity at 

a fixed price". The company said 

that leasing was the easiest option 

as users will pay a fixed fee per 

month, rather than build up 

solution themselves, which could 

be more costly. Most of the 

growth potential in the tanker and 

gas carrier market will be seen in 

VSAT or Broadband solutions, 

due to the more specialist nature 

of the vessels and crew. 

There are over 1,000 vessels 

today already trading using 

VSAT, Marlink said. It was 

moving towards DAMA (shared 

capacity, user groups etc). 

Marlink claimed to be the only 

company selling VSAT Sealink 

solutions and in 2006 

incorporated Neratek into its 

global operations. The local Dubai 

operation boasts more than 400 

clients and doubled its revenue in 

2006. The same year it established 

the local service centre. 

As mentioned, the Dubai office 

has been installing VSAT systems 

on four LNGCs owned by 

National Gas Shipping Co 

(NGSCO) of Abu Dhabi. 

Operation of complex LNG 

vessels with highly skilled crew 

benefited from having an 'always 

on connection'. Some of the 

Marlink has installed VSAT 

systems on four LNGCs. 

benefits claimed by NGSCO were: 

The vessels can be part of the 

Local Area Network (LAN) on 

land. 

The vessels can run on the 

same applications as in the 

office. 

More effective purchasing, 

maintenance planning, and 

quality assurance and control. 

Possibility for the crew to 

participate in further education 

and training. 

Possibility for the crew to stay 

in contact with family and 

friends at low cost. 

Remote update and 

maintenance of the on board 

PC network and servers. 

Possibility to send video and 

photo files. 

Less need for travelling 

because it is easy and cost 

effective to assist from ashore. 

"Also the crew's welfare and 

loyalty have been important 

factors when we decided to go for 

the VSAT." said NGSCO's Samir 

Bailouni. 

It is also important to perform 

an internal check through all the 

divisions to ensure that you can 

utilise the benefits and justify the 

cost, Bailouni said. 

Gunnar Andre Valle - Marlink's 

director, Middle East, India and 

Africa said the VSAT systems 

have been in use on board North 

Sea shuttle tankers for many 

years and have since expanded 

into VLCC and LPG/LNGCs 

during the last few years. 

Thus far, Marlink has installed 

more than 5,000 Inmarsat 

terminals and has service centres 

in Houston, Singapore, Oslo and 

Dubai. Over 8,500 vessels are 

signed up for the Inmarsat service 

with Marlink representing 2,000 

customers. Leading tanker brands 

include Odfjell, OSG and Tsakos. 

Since the merger of France 

Telecom Mobile Satellite 

Communications and Telenor 

Satellite Services through the 

acquisition of Telenor by Apax 

Partners France to form Vizada, 

Marlink has changed from just 

being a retailer to being a 

solutions provider. 

TO 

22 



NITC’s expanding 

fleet 

That age profile is set 

to improve even 

further as the 

company takes 

delivery of another 15 

newbuildings over the next 18 

months, thereby doubling the size 

of the tanker fleet - which stood 

at 5.8 mill dwt in autumn 2007 - 

in just two years. 

NITC has already come a long 

way in less than a decade. 

Established in 1955 as National 

Iranian Tanker Company, and a 

subsidiary of National Iranian Oil 

Company from 1975 onwards, it 

was fully privatised in 2000 when 

ownership passed into the hands 

of private pension funds. It has 

since dropped its full name in 

favour of initials - a path already 

trodden by the likes of BP, BW, 

MISC and AET. 

Privatisation meant that the 

company had to start competing 

internationally for cargoes, one of 

the reasons it sets such great store 

on having a young fleet operated 

to the highest possible standards. 

Over the past five years only 

about 20% of capacity has been 

used for Iranian oil cargoes, the 

rest on cross-trading for 

international oil majors. 

Last year, roughly 85% of 

NITC's trading was on a spot 

basis - that is, single voyages 

rather than timecharters, while its 

tankers carried 82.8 mill tonnes 

of oil and steamed 1.8 mill 

nautical miles. 

Intertanko member 

An indication of NITC's 

autonomy came late last year 

when it applied to become a full 

member of Intertanko, the 

independent tanker owners' 

association, and was unanimously 

approved by the council. 

It has since signed up to 

Operator of one of the world’s most 

modern tanker fleets, NITC currently 

owns 30 double-hulled vessels with 

an average age of 5.5 years.* 

Intertanko's 'Poseidon Challenge' 

to aspire to zero casualties and 

zero pollution. NITC already 

subscribes to some 30 safety, 

quality and environmental 

schemes, including ISO 9001, 

ISO 14001, Tanker Management 

and Self Assessment (TMSA) and 

the Green Award scheme - where 

jointly with AET it has the 

highest number of tankers (14) 

accredited. 

NITC also claimed an 

exemplary safety record, which 

meant that over the last 12 years, 

since fleet modernisation began, 

it had not experienced a single 

port state control detention, failed 

a single oil major inspection or 

been involved in a single accident 

resulting in oil pollution. 

The recent political climate, 

most notably its exclusion from 

US ports or US cargoes, has led 

the company to flag out existing 

and new vessels to the Cypriot 

and Maltese registries, in order to 

reassure international banks 

financing the vessels. 

"Cyprus and Malta are both 

members of the European Union 

and are good performers when 

compared to others," NITC 

chairman and managing director 

Mohammad Souri has gone on 

record as saying. 

New generation tankers 

In 2005, NITC took the decision 

to place a massive round of 

newbuilding orders, buoyed by 

the strong results that its modern 

fleet was achieving in a bull 

tanker market. No fewer than 10 

NITC chairman Mohammad Souri with the head of Hyundai HI after the 

contract signing for three VLCCs with the world's largest shipyard. 

new VLCCs, each of 300,000dwt, 

had been delivered in the 

previous three years, five apiece 

from Hyundai Heavy Industries 

('H' Class) and Dalian New 

Shipbuilding ('N' Class), the latter 

being the first VLCCs ever built 

in China. 

Prior to that, in the late 1990s 

NITC had received five similar 

size ('D' Class) VLCCs, five 

158,000 dwt ('S' Class) 

Suezmaxes and five 98,000 dwt 

('A' Class) Aframaxes all from 

Daewoo Shipbuilding (DSME). 

The company also operates three 

35,000 dwt product carriers built 

in 2004 by Hyundai Mipo. 

Based on these vessels' 

operational performance and on 

charterers' preferences, NITC 

decided to return to South Korean 

yards Hyundai HI and Daewoo to 

try and negotiate new orders for 

five vessels apiece. But Hyundai 

wanted to share the load with its 

sister yard, Hyundai Samho, 

while Daewoo lacked enough 

slots, which led to Samsung 

Heavy Industries stepping in to 

share the load. 

As a result, NITC ended up 

splitting an increased order for 17 

tankers worth around $2.5 bill 

between the four leading South 

Korean yards as follows: three 

VLCCs with Hyundai HI, four 

VLCCs plus four Suezmaxes with 

Samho, three VLCCs with 

Daewoo and three with Samsung. 

All the vessels will be double 

hull and are being built according 

to the IACS Common Structural 

Rules. The first was successfully 

delivered from Hyundai last 

October, the second from 

Hyundai Samho in late February 

this year. 

Significantly, the vessels were 

designed to be identical 

sisterships despite being built at 

24 



The 1st of NITC's new generation tankers from HHI. 

four different yards. NITC held 

out while negotiating the VLCC 

building specification with each 

separate shipbuilder insisting on 

a common design in each case. 

This was based on an enlarged 

317,000 dwt version of the 

Hyundai 'H' Class vessels, but 

incorporating a number of 

design improvements - the 

Suezmaxes were to be the same 

but scaled down in size. The 

owner also required the yards to 

install top-of-the-range 

equipment and systems rather 

than the standard fit. 

Design improvements 

NITC's required design 

improvements included: 

enhanced cargo loading and 

discharging systems, 

employing greater capacity 

pumps and extra valves; 

pipe thickness increased from 

6 mm to 8 mm in crude oil 

washing lines, inert gas pipes 

and fuel oil pipes; 

cargo and ballast tank coatings 

upgraded to PSPC levels; 

enlarged engine and purifier 

room spaces; and 

a separate chemicals room to 

store hazardous materials. 

One of the most visible changes 

to the standard modern South 

Korean tanker 'look' was the use 

of a normal-level rather than a 

sunken poop deck. Sunken aft 

decks have been increasingly 

favoured of late because of the 

considerable steel savings that can 

be achieved, but NITC stipulated 

the conventional design in order to 

increase ventilation in the 

engineroom below and provide 

easier access to machinery for 

maintenance purposes. 

Also factored into the design 

were enhanced crew quarters with 

more powerful air-conditioning 

and amenities, including a gym, 

internet access and state-of-theart 

satellite television and audio 

equipment. Extra cabins and a 

classroom were also added to 

house 10 cadets and a training 

officer on every voyage. The 

company currently employs some 

3,500 crew, 95% of them Iranian. 

The improvements cost nearly 

$10 mill extra per vessel but 

Souri felt that the extra 

investment would be recouped by 

better vessel charterer take-up 

and reduced maintenance costs. 

Besides, he said, "what you spend 

on safety and quality is always 

less than what you gain." 

Domestic projects 

NITC also has five tankers on 

order at domestic Iranian yards, 

including three 63,000 dwt shuttle 

tankers being built at the Sadra 

yard on the Caspian Sea, which it 

has dubbed 'Caspianmax'. 

Constricted river access and 

shallow draught of the sea 

(technically a lake) has meant 

that until now only small tankers 

using the Volga-Don waterway 

could access the Caspian. By 

building on the Caspian, NITC 

got round the access problem 

and it would solve the draught 

problem by employing a single 

anchor loading (SAL) system, 

developed by APM, which 

consists of a flexible seabed 

pipeline serving as an anchorage 

point. 

NITC has plans to build up a 

substantial products carrier fleet 

through Pars Petrochemical 

Carriers, a joint venture with 

other Iranian partners in which it 

holds a leading 37.5% stake. 

"Iran and Saudi Arabia are set 

to become the key producers and 

exporters of petrochemical 

products in the region," said 

Souri, "and we hope our friends 

in the international banking 

community will help finance the 

vessels needed." 

LNG plans 

Further expansion beckons on the 

LNG front, as Souri outlined at 

an international oil and gas 

conference held in Tehran last 

December. 

Iran has the second largest 

natural gas reserves in the world, 

with a proven reservoir of 28.2 

trill cu m, representing a 15.5% 

share of the world total, he said. 

By 2020, the country's annual 

production of LNG could be as 

high as 83 mill tonnes from the 

gas fields at South Pars (41 mta), 

North Pars (20 mta), Golshan (10 

mta), Ferdosi (10 mta) and Salakh 

(2 mta). 

To carry such an amount of 

LNG would require as many as 

83 LNG carriers, he continued, 

assuming each vessel carried one 

mill tonnes per year. 

Given the Iranian government's 

policy that 50% of exports are to 

be carried in national hulls, this 

would require Iranian companies 

to own at least 40 LNGCs, 

requiring a total investment of 

around $10 bill, Souri added. 

Such projections assumed that 

Iran will be able to find the 

resources, technology and 

foreign buyers needed to plough 

ahead with gas extraction, 

liquefaction and export, and 

projects such as South Pars are 

already running well behind 

schedule. But NITC for its part 

has spoken of near-term plans to 

order up to 30 LNGCs of 

between 150,000 cu m and 

260,000 cu m capacity. 

At the same time, discussions 

continue amid a group of 

countries led by Iran and Russia 

to set up a formal body of gasexporting 

states, a so-called 'Gas 

OPEC'. A draft charter almost 

identical to that of OPEC was 

drawn up by Iran last year, NITC 

reported. 

TO 

*This article was written 

by Denzil Stuart of 

Denzil Stuart Associates. 


INDUSTRY - MANNING AND TRAINING 

Training by Checklist 

Called Life-Saving 

Appliances Pocket 

Checklist, this 

booklet covers life 

saving appliances and lifeboat 

drills, which have been a cause 

for concern among various 

seafarer organisations for some 

time and also a prime target for 

Port State Control inspectors. 

Research found that around 

2,500 persons were killed or 

reported missing at sea between 

2005 and 2007. 

LR's chief surveyor Tony 

Muncer said: "All lifeboat 

equipment should be ready for 

operation, well maintained and 

inspected regularly. It is the 

responsibility of owners and their 

crews to ensure this is the case. It 

UK P&I Club’s Karl Lumbers. 

The third in a series of pocket checklists 

has been published by Lloyd’s Register 

and the UK P&I Club. 

is, therefore, essential that ship 

personnel are appropriately 

trained in the tasks concerned. 

"This checklist will act as a 

practical, on the spot device to 

help ensure that life-saving 

appliances are fully up to the 

required standards and comply 

with all regulations," he said. 

The UK Club's loss prevention 

director Karl Lumbers said: "The 

deaths and injuries resulting from 

lifeboat incidents have become a 

major problem for all parties 

involved in shipping. If people 

follow the advice in the checklist 

meticulously, they should avoid 

the wrath of Port State Control 

and, far more important, help to 

prevent tragedies." 

He also said that the booklets 

were produced by people who 

visited ships every day with the 

result that they were written from 

a practical viewpoint rather than a 

theoretic one. 

Lifeboat problems 

During 2005-2007, one third, or 

over 1,000, of all life-saving 

appliance deficiencies reported to 

LR concerned lifeboats - three 

times as many as launching 

arrangements for survival craft 

and lifebuoys. Deficiencies were 

also noted in lifeboat inventories, 

inflatable liferafts, lifejackets, 

operational readiness 

maintenance and inspections, on 

board training and instructions, 

embarkation arrangements for 

survival craft, rescue boats and 

liferaft stowage. 

In the 20 years through 2006, 

the UK Club said it had dealt 

with 31 serious lifeboat incidents 

involving its members and 

costing at least $100,000 each. 

Although loss of balance, boat 

maintenance and rope ladder 

deficiencies accounted for 25% of 

incidents, the unintentional 

release of lifeboats was 

responsible for 75%. 

The checklist warns that if 

equipment is broken or missing, or 

the ship suffers voyage damage, 

the master must notify the port 

authorities prior to entry and of 

any permanent or temporary 

remedies agreed with flag state. If 

notice is not given, PSC has clear 

grounds for inspection, which may 

lead to a detention. 

It lists nine certificates, 15 

documents and other records, 

which need to be kept up to date 

and readily available on board the 

vessels. The certificates relate to 

safety equipment, shipboard 

radios, lifeboats, rescue boats, 

liferafts, launching appliances, air 

supply bottles (if fitted), search 

and rescue transponders 

(SARTS), and EPIRBS. 

As for the documents and 

records, these concern 

maintenance programmes, 

SOLAS training manuals and on 

board training aids, muster lists, 

radio licences and drills. 

Inspection and testing 

documentation should encompass 

life saving and launching 

appliances, communications 

equipment, lifeboat and rescue 

boat engines, emergency lighting, 

EPIRB shore-based maintenance, 

liferafts, fire extinguishers and air 

supply bottles (if fitted). 

Launching and stowage 

arrangements should focus on 

davits and falls, bowsing tackles 

and embarkation arrangements. 

Structurally, the hull must be in 

good condition, with no 

deterioration affecting bearing 

surfaces, no cracks in hull and 

buoyancy tanks and with bilge 

keels and grab lines effectively 

attached. Lifeboats must be 

connected properly to the parent 

vessel with hanging hooks, keel 

plate connections and pins in 

good condition. Engines must 

start readily, battery chargers 

must be connected, maintained 

and tested and exhausts insulated, 

plus there must be sufficient fuel. 

Other items that must be kept 

in good condition and working 

order, as well as being well 

maintained include rudder and 

stock, hook release mechanisms, 

brake release arrangements, bilge 

pumps, plugs, lifeboat painters, 

markings, grab rails and lanyards, 

on board air and water spray 

systems, VHF radio-telephones 

and the display of operational 

instructions. Lifeboat inventories 

26 



should cover up-to-date distress 

flares, stores, including water and 

rations, buoyant oars and 

rowlocks where required, 

protecting cover, sails and 

sea anchor. 

Freefall lifeboats must be 

correctly secured and stowed, 

while seat belts and head 

restraints should be in good order 

and hook release charged with 

hydrostatic oil. With inflatable 

liferafts, the focus is on 

hydrostatic positioning, number 

and capacity, fall wires, 

manufacturer's launching 

instructions, markings and 

unobstructed access to water. 

With rescue boats, the key 

considerations are stowage, 

position, launching and recovery 

arrangements, lighting and signs, 

pressurised inflatable 

compartments, propeller guard, 

personnel familiarisation and 

engine servicing. 

There are other requirements 

for lifebuoys, lifejackets, 

immersion suits, radio life-saving 

appliances, radio-telephone 

apparatus for survival craft, 

emergency alarms and line 

throwing appliances. Drills, 

including abandon ship and man 

overboard, should be carried out 

according to SOLAS instructions, 

involving training and checks and 

accessible manuals. 

It was often found that lifesaving 

appliances were often tied 

down or locked to prevent theft. 

However, while this is perfectly 

legitimate while the ship remains 

in port, they must be freed when 

it puts to sea. The process must 

also be documented as part of 

the procedure. 

There was also at least one 

unintentional lifeboat release per 

year, which can cause serious 

injury. Somewhat surprisingly, 

the research found that the age 

bracket of the seafarers injured 

was in the 32-64 range. In other 

words; "they should know what 

they were doing," Lumbers said. 

Inspections Pocket Checklist - the 

first two booklets - had to be 

reprinted as supplies quickly ran 

out. As well as going to club 

members and clients of LR, the 

booklets were circulated by 

various Missions to Seafarer units 

worldwide. 

The pollution prevention 

booklet deals with oil filtering 

equipment among other subjects 

and it was noted that the number 

of detentions due to equipment 

failures went down in 2006-2007. 

Logging of club members 

deficiencies has become much 

more efficient down the years as 

the ISM and ISPS codes, PSC 

concentrated inspection 

campaigns and so on has led to a 

better understanding of the 

deficiencies. However, Muncer 

stressed; "the core (to avoiding 

deficiencies) was training and 

expenditure." 

The IMO's Maritime Safety 

Committee (MSC) is working on 

the problem of lifeboat release 

hooks in correspondent groups. 

At least two systems are being 

investigated - hooks and 

automatic release mechanisms. 

It was hoped that the booklets 

would help create a 'culture 

change' on board ship, the 'it 

won't happen to us' syndrome so 

prevalent in human society. "We 

are not here to tell people what to 

do, but to raise awareness of 

potential problems", Lumbers and 

Muncer said. 

They both admitted that it 

was only a minority of owners 

and managers that cause 

the problems. 

TO 

Reprints 

Marine Pollution Prevention 

Pocket Checklist and Port State 



Simulators ashore 

and afloat 

As wages of personnel 

spiral upwards, the 

supply of qualified 

personnel hasn't met 

the demand. It is very likely that 

staff from vessels, such as LPG 

carriers and VLCCs will be 

attracted by high wages. It is 

obvious, that to maintain the 

reputation of a relatively safe 

sector (in four decades there has 

not been a single recorded loss of 

cargo containment on 40,000 

voyages), training and standards 

of training should be seen as 

high priority. 

Being one of the leading 

developers of professional aids 

for seafarer training, Transas said 

that it was searching constantly 

for effective solutions for crew 

education and certification. The 

company offers both single user 

and network versions of liquid 

cargo handling and engine room 

simulators, which can be used for 

shore-based centres and for on 

board training. 

Predictable and inevitable, the 

development of the LNG industry brings 

unprecedented shortage of manpower. 

A new generation 3D visual 

allows a trainee to become 

immersed into virtual reality so 

that he or she could easily 

familiarise themselves thus get 

used to the systems. Visualisation 

could be expanded up to 120 deg, 

displayed by three monitors or 

projectors. 'Robo-glove' creates 

the feeling of being in a real 

engine room. This is how gaming 

technologies can serve the 

professional sector. 

simulators can be used for 

training groups of students at the 

academies and coastal centres, for 

the individual training on board 

ship and for the competency 

assessment required for the issue 

of qualification certificates at the 

maritime administrations. 

As some shipowners are 

unhappy about the training level 

at shore-based centres, there is a 

tendency to train specialists with 

the aid of simulators directly on 

experienced masters and chief 

engineers who conduct training 

by travelling from one of their 

company tankers to another. 

This form of training requires 

solo products without the functions 

that can be inserted by an 

instructor. In response to the new 

demands, Transas has produced 

LCHS Solo simulator, which can 

be installed in any computer with 

no network cards. If, however, the 

simulator is included in the ship's 

work group, thus allowing training 

sessions to be carried out while the 

ship is in operation, a standard 

mini class can be used, installation 

of which is simplified to the level 

Engine room 

Models available in Transas 

engine room simulators include 

an LNG tanker model. Last year, 

a new model for an LNGC was 

developed. It was customised for 

Malaysian Maritime Academy 

(ALAM), and represents MISC's 

76,000 dwt LNGC Puteri Intan 

Satu, which is fitted with a steam 

turbine, driving a fixed pitch 

propeller via a turning gearbox. 

The ERS 4000 LNG model is 

able to work jointly with LCHS 

4000 LNG simulator. The idea is 

that ERS main boilers consume 

gas supplied from LCHS tanks 

and at the same time, ERS 

electrical plant provides power 

supply for LCHS cargo system 

needs. The LNG ship model 

consists of propulsion, auxiliary 

and electrical plants. 

The recent boom in LNGCs has spawned a new generation of training aids. 

The latest design of 3D engine 

room provides the possibility for 

the instructor to introduce a fire 

in some areas. Trainees can see it 

visually, their task being to reveal 

the location and extinguish fire. 

Cargo handling 

By training, the seafarers can 

practise teamwork procedures or 

improve personal skills in the 

planning of cargo handling 

operations, the assessment of the 

vessel's hull strength and stability 

while performing cargo handling, 

ballasting operations and in the 

control of the tanker auxiliary 

systems. Today, Transas LCHS 

board ships while in operation. 

This form of training has been 

made possible due to the chapter 

in STCW95 devoted to 

alternative training. The 

significantly lower training costs, 

compared to the similar 

programmes at the shore-based 

schools makes this competitive 

and an ever more attractive 

option. This idea was expressed 

by a V Ship representative at an 

Intertanko conference in January 

2003. This resulted in the setting 

up of a programme for training 

specialists on board the ship 

under the supervision of 

instructors taken from the most 

of an ordinary user. 

Transas LCHS simulators have 

a broad application and have the 

following advantages: 

1. Systems correspond to those 

typical for modern tankers, which 

have cargo control rooms with 

computer screen operation of 

cargo, ballast and auxiliary 

systems. The simulator imitates 

the most advanced equipment, 

which allows the crew members 

to get adapted to the vagaries of 

electric motors and use of lowexpansion 

heating agents. 

2. Advanced user friendly 

graphic interface. This allows the 

trainee to easily recognise the 

28 



objects and understand their 

operation principles, which 

significantly reduces the 

simulator familiarisation time. In 

combination with the flow 

animation, it allows the trainees 

to understand and easily 

assimilate the system operating 

principles, without requiring a 

mechanical memory. 

3. Availability of an on board 

load control system at each 

trainee workplace, fitted with 

automatic and manual data input 

enabling the preliminary load 

calculations for different load 

marks and checks for stability 

and stresses. 

4. Smaller number of screens for 

the display of an actual tanker 

system on the control computer 

screen, which reduces the time 

required for the study of screen 

interconnection patterns. 

5. Multi-purpose mathematical 

model based on the laws of mass 

and energy conservation, and 

equations, which allow the 

changes of phase to be taken into 

account in line with the change of 

environment. 

Up-to-date simulators are 

necessary tools for the 

comprehensive training of a 

specialist as they allow practise in 

standard procedures, along with the 

course of actions to be taken in 

emergencies, adding to the 

previously obtained theoretical 

knowledge and developing the 

previously acquired skills. It is 

simulator training, which will allow 

the trainees to familiarise themselves 

with the entire range of operational 

situations and will enable 

them to avoid professional errors. 

South Korea 

One example is the Korea Institute 

of Maritime and Fisheries 

Technology (KIMFT) and Korea 

Maritime University (KMU), 

which have teamed up with the 

IAMU Asia LNG Education and 

Training Centre (ALETC). 

KMU was chosen as the main 

body of ALETC to train LNG 

training instructors worldwide, 

while KIMFT will provide 

domestic LNG training and 

operational training on LPG, 

chemical, large tankers and 

VLCCs. The cargo handling 

course will be held on Transas 

liquid cargo simulators. 

The simulation centre of 

KIMFT includes four classes: an 

LNG, LPG, chemical tanker and 

tanker/VLCC each having 12 

student places controlled by one 

instructor. KMU now has an 

LNG training facility of eight 

workstations and two trainee 

workplaces for steam turbine 

engine room training. 

For 10 years KIMFT has 

benefited from a Transas' 

navigation simulator. Since 2005, 

Transas local representative, 

MECys has become involved 

with major universities and 

shipping companies like Pukyung 

National University, Hyundai 

Merchant Marine, Hanjin 

Shipping and Samsung Heavy 

Industries, each of which is fitted 

with Transas full mission 

shiphandling simulators. 

The IAMU was founded by 

seven universities representing 

the five world continents in 

November, 1999, recognising the 

significance of maritime 

education and training in the 

rapid globalisation of the 

international shipping arena. 

Since then, IAMU has 

significantly expanded its 

membership, and now boasts 46 

training universities/faculties, 

plus The Nippon Foundation. 

IAMU Asia LNG Education and 

Training Center (ALETC) houses 

the world's first LNG Courses 

purposely designed for LNG 

Instructors at Korea Maritime 

University, Busan. The first course 

started on 2nd April, 2007. TO 



Maersk enhances 

training centres 

One of three L-3 type liquid cargo handling simulators purchased by Maersk was 

recently tested in the company's Tyneside training centre, while the other two were 

installed in Svendborg and India. 

Based on Newcastle 

Quay, the UK 

training centre was 

only opened in 

January 2007 and by the middle 

of March this year, the L-3 

simulator was being bedded down 

and tested. 

The liquid cargo training 

facility can house up to eight 

students simultaneously in 

separate cubicles in real engine 

control room conditions. Six 

software models were also 

purchased, including those for 

chemical cargoes, products, crude 

oil, LPG, LNG and one for an 

FPSO operation. 

General manager Richard 

Booth explained that the 

simulator will also be marketed to 

third party shipping concerns and 

that the nearby South Tyneside 

College Marine School had 

agreed to send students wishing 

to have liquid cargo operational 

The L-3 cargo simulator under test. 

30 

training to Maersk's facility. 

The AP Moller-Maersk group 

operates a large fleet, as well as 

having a substantial orderbook in 

the product tanker, crude oil and 

gas sectors. 

One of the benefits of opening 

up in Newcastle was that Maersk 

had relocated its UK 

shipmanagement arm to 

Tyneside and other concerns 

such as OSG and Hanseatic were 

also established in the city, while 

the shipmanagement and crewing 

hub of Glasgow was not that far 

away. Maersk's Newcastle office 

manages around nine tankers 

at present. 

For FPSO training possibilities, 

subsidiaries Maersk Oil and Gas 

and Maersk Contractors were 

both based in Aberdeen. 

There are no demarcation lines 

between Maersk's three training 

centres, but Svendborg and 

Newcastle tend to cater more for 

Six full time instructors are based on Tyneside. 

European seafarers. 

For the rest of this year, a 

total of 10 week long courses 

have already been booked on 

the liquid cargo handling 

simulator. Booth said that the 

target was 20 courses this year 

and 30 in 2009. He explained 

that it obviously takes a little 

time to set up new courses as 

the eight workstations cannot be 

split between cargo types while 

running one course. 

As for the perceived shortage 

of trainers, Booth said that he has 

six full time instructors at his 

disposal, one of which came from 

a training facility in Glasgow and 

he said that he could also tap into 

South Tyneside's instructor 

expertise. 

The Newcastle Maersk 

Training Centre is also fitted with 

a Transas ECDIS simulator, 

which has 10 workstations. It is 

fully approved by the MCA 

offering the standard IMO ECDIS 

training course. 

The centre has managed to get 

the normal four-day ECDIS 

training course down to three 

days, which saves money without 

compromising the quality of the 

training, Booth claimed. 

An official opening ceremony is 

due to take place on 21st May. TO 


For a number of already 

well-documented 

reasons, the manning 

crisis is very serious and 

particularly so for 

specialist sectors, such 

as tankers and gas 

carriers, according to 

leading shipmanagement 

concern V Ships. 

It is generally difficult to source 

qualified seafarers at any level 

despite an abundance of ratings. 

P&I clubs, V Ships said that it 

was true that there were not as 

many highly-motivated entry 

level candidates as were seen in 

the past. This was mainly due to 

strong competition from other 

sectors. "But this is where our 

investment in training and career 

development is a strong 

mitigating factor. These days, 

one has to work harder and 

invest more to ensure an 

educated and motivated 


V Ships confirms seriousness of manning crisis 

workforce", Burley said. 

In training, V Ships stressed 

that it was strongly in favour of 

the use of simulators. "By the end 

of this year, we will have doubled 

our complement of bridge 

simulators from two to four, and 

will have added an engine 

simulator and an ECDIS suite," 

Burley explained. 

V Ships offers specialist 

training for more sophisticated 

vessels, including tankers and gas 

carriers. Last year, its advanced 

tanker training syllabus was the 

first to be accredited to the 

SIGTTO standard by the Nautical 

Institute. "Recently, we handed 

over the course material to 

Intertanko for the greater good of 

the industry. Also we embarked 

on an LNG training alliance with 

propulsion specialist Wärtsilä and 

our first class of trainees recently 

completed its first course", 

Burley said. 

TO 

PUT YOUR TRAINING 

ON COURSE WITH VIDEOTEL 

V Ships favours the use of 

simulators. 

"The problem is especially critical 

in the more senior ranks," V ships 

training director Martin Burley 

said. The officer shortage is 

projected to be about 6% by 2015, 

if the global fleet grows by 1% per 

annum. If the fleet grows by 1.5% 

per annum, that shortage could 

rise to 10%. That would equate to 

more than 5,000 ships without 

officers, the company said. 

There were several initiatives 

underway to recruit and retain 

seafarers, such as increased 

remuneration, a greater level of 

'creature comforts' on board, 

including access to broadband/ 

VSAT type communications. 

However, V Ships said that the 

while all these initiatives merited 

consideration, the company 

believed the main way to 

increase recruitment and 

retention was to offer career 

development potential, in other 

words - a job for life. As such, V 

Ships had invested substantially 

in its training programmes and 

facilities. 

Answering the question about 

the general level of proficiency 

in new candidates, which is a 

cause for concern among certain 

sectors of the industry, including 

Meeting IMO requirements 

ISM and STCW compliance 

distance learning 

DVDs/VCDs/videos 

computer based training 

workbooks 

courses 

e-learning 

training services 

Videotel on Demand 

Videotel Marine International 

84 Newman Street, London W1T 3EU, United Kingdom 

Tel: +44 (0)20 7299 1800 Fax: +44 (0)20 7299 1818 

www.videotel.co.uk 

Continuing to meet your training needs 



TOTS nears fruition 

INTERTANKO has 

teamed up with Warsash 

Maritime Academy on 

the Tanker Officer 

Training Standards 

(TOTS) project. 

The association's human element 

in shipping committee (HEiSC) 

said that it is striving for the widest 

possible recognition of the human 

element aspects of running ships. 

HEiSC is working with 

Intertanko’s vetting committee on 

TOTS, which is planned to be 

ready by the end of this year. 

TOTS is a voluntary method of 

setting verifiable standards for 

ships' officers. INTERTANKO 

said that it has recognised the 

problems in complying with some 

of the major tanker companies' 

existing officer matrix systems, 

particularly those concerning time 

in rank. Time in rank is very 

much part of the oil majors' 

vetting schemes and is getting 

increasingly more difficult to 

fulfill, due to the officer shortage. 

Warsash input 

Warsash, part of Southampton 

Solent University, has agreed to 

use its knowledge and resources 

in the development of this 

project, and in particular in the 

process of verification of the 

simulator aspects of TOTS. 

The Hampshire-based academy 

pioneered the use of bridge, 

engine and cargo control room 

simulators for higher level 

training, and its manned model 

shiphandling training facility is 

the only one in the UK - and one 

of very few in the world. 

Warsash became involved in 

TOTS at the early stage of its 

development. Professor Mike 

Barnett and Claire Pekcan 

attended several of the early 

meetings with Intertanko's Capt 

Howard Snaith at which the 

system evolved. 

Prof Barnett is a member of 

HEiSC and together with his 

colleagues - Capt Quentin Cox, 

Alan Whitcher and Alan Campion 

- has attended the recent working 

group meetings, which put more 

detail into the original concept. 

Capt Cox and his colleague 

Andy Lawson were directly 

involved in putting together some 

of the documentation required. 

This focused on simulator training 

and verification standards. These 

documents outlined the typical 

scenarios, which may be used on a 

variety of cargo simulators for both 

training purposes and also for the 

assessment of officers in cargo 

competencies. 

"Since the introduction of its 

tanker safety courses in the 

1960s, Warsash has been a 

pioneer in developing new 

concepts for the training of tanker 

officers and we have a long 

record in various forms of 

simulation", Capt Barnett said. 

"TOTS represented an 

excellent opportunity for our 

specialist staff to be directly 

involved in developing and 

delivering a competence 

development system to the tanker 

sector. We look forward to 

working with shipping companies 

and other training organisations 

in implementing TOTS standards 

and contributing to its successful 

adoption worldwide," he 

concluded. 

Voluntary system 

The TOTS concept seeks to 

complement and fit around 

Too many vessels and too few officers 

existing statutory requirements 

as a voluntary system, which is 

fully integrated with a 

company's tanker management 

self assessment (TMSA) 

programme. 

INTERTANKO explained that 

TOTS was intended to go beyond 

training to enable ships' officers to 

understand not only what they 

have to do and when to do it, but 

also the consequences of not doing 

what they are supposed to do. 

The organisation said that it 

would help provide a level of 

comfort for those oil companies 

that already have their own 

officer matrix requirements and 

that it will ease compliance with 

these requirements. 

It is believed that three 

modules will be unveiled soon, 

focusing on masters and senior 

navigating officers, chief 

engineers and junior officers and 

engineers. 

TOTS is to be thoroughly 

debated at Intertanko's 

forthcoming Istanbul meeting on 

21st April at a special focus 

session on Vetting and the Human 

Element in Shipping. 

TO 

ITM’s Lars Modin took 

timeout to give his 

verdict on the 

perceived seafarer 

crisis. 

In a Q&A session he made the 

following points:- 

Q. Just how serious is the 

manning crisis especially in 

the more specialist tanker and 

gas carrier sectors? 

A. It is quite serious, we are 

able to find people with 

adequate certificates but the 

competence is below par. 

Q. Is the problem with ratings 

or more senior seafarers, or 

both? 

A. With ratings there is no big 

issue. With junior officers 

there is kind of a problem. 

However, with senior officers - 

a big problem. 

Q. There are several initiatives 

underway, such as increased 

remuneration, a greater level 

of 'creature comforts' on 

board, including access to 

Broadband/ VSAT type 

communications. Do you think 

that they will help in seafarer 

recruitment and retention? 

A. It will certainly help. Wages 

in the short term and Broadband 

in the long term. 

Q. Do you think that the 

general level of candidates is 

dropping in terms of 

proficiency? Some people, 

especially P&I clubs, are 

getting worried about the 

human factor increasingly 

impacting on accidents, given 

the increase in the fleet and 

perceived lack of seafarers. 

A. Yes the general level is 

dropping. 

Q. Does ITM favour the use of 

simulators in training today? 

Again there are arguments 

springing up both for and 

against. 

A. We favour simulators as part 

of the training, however, on 

board training is best. 

Q. Have you a set up a special 

syllabus for tanker training, 

especially for the more 

technically involved chemical/ 

product tanker and gas 

carrier sectors. 

A. We have separate training 

programmes for different tanker 

segments. 

Q. Is it becoming increasingly 

difficult to get hold of the 

trainers? 

A. Yes, we have to take them 

from existing senior officers. 

Q. Sitting in Dubai you 

probably have the advantage of 

tapping into the Indian market. 

Is the training up to standard 

in India today, or the 

Philippines, China for that 

matter? 

A. I don't think it matters where 

you sit, it's a matter of where you 

have best representatives. The 

Philippines looks to be very 

interesting for the long term 

future. 

Modin summed up by saying 

that this is a huge issue, as four 

and a half additional vessels are 

being delivered per day. "These 

extra ships require a big pond to 

fish from", he concluded. 

32 


INDUSTRY - CLASSIFICATION SOCIETIES 

Significant challenges 

ahead says class chief 

Last year was the year of the smaller tanker*. 

Although there was 

steady ordering of 

larger vessels, it was 

smaller chemical and 

oil tanker sizes where there was a 

strong boom. 

Owners realised that the time 

for fleet replacement in the 

smaller sizes had come, and 

demand for double hull smaller 

ships had grown. Owners from 

Greece, China, Turkey, Singapore 

and Italy all ordered significant 

tranches of new smaller tanker 

tonnage to BV class, with most of 

the orders going to either Chinese 

or Turkish shipyards. 

Chinese yards took more 

tonnage, but Turkish yards took 

more ships in smaller sizes. By 

the year end, BV had over 400 

tankers on order to its class, with 

an average size of 30,000 dwt. 

BV worked hard to strengthen 

its plan approval teams in both 

China and Turkey to ensure that 

the yards got the support they 

needed. One key element was to 

help yards to implement the IMO 

PSPC coating requirements. 

The Paris-based class society 

worked with yards in China, 

Turkey, Japan and South Korea to 

carry out gap analyses on their 

needs and to provide training for 

both the yards and its own 

surveyors. 

Two of the key issues for yards 

competing for tanker orders were 

the ability to deliver good CSR 

designs and the ability to manage 

“ 

34 

coatings requirements. BV was 

able to help with both, and this 

year, it will work with yards and 

design offices in China, Japan 

and South Korea to help roll out 

new CSR compliant tanker 

designs. 

Class today faces a number of 

challenges. We have to provide 

more expertise and support than 

ever before, as the world demand 

for new and bigger ships shows 

no sign of abatement. We have to 

react more quickly than ever 

before to new ideas, and provide 

clear guidance and support on 

what is safe and what isn't. And 

we have to do that against a 

background of a more demanding 

public and a more demanding, 

and sometimes conflicting 

regulatory regime. 

During 2007, BV met those 

challenges, and our success in 

growing our market share in all 

sectors shows how owners and 

yards appreciate our efforts. 

Perhaps the biggest challenge 

last year was to build, train, 

deploy and manage a massively 

growing global workforce. As 

new shipyards came on stream, 

they needed a much greater 

degree of class intervention than 

long established yards. That 

placed demands on our 

experienced surveyor teams in 

China in particular. 

But we were able to meet the 

challenge, and not only to train 

our own people, but also reach 

out and support the yards with 

gap analyses and training 

programmes, especially for the 

IMO coatings regime PSPC. We 

also worked closely with yard 

design teams and independent 

designers to get new CSR designs 

to market quickly. 

The result was a massive surge 

in newbuilding orders, with 18 

mill gt of new ships ordered to 

BV class in 2007, bringing our 

order book to over 30 mill gt, 

equivalent to half our classed 

fleet. 

The classed fleet also grew 

strongly to 58.5 mill gt by the end 

of 2007, and we put in place the 

tools to provide better lifetime 

support for owners. A high level 

We have been through the decade of cheap energy. 

Now we enter the decade of clean energy. 

It won’t be cheap, it won’t be easy, 

but the shipping industry will deliver it. 

Bernard Anne, Bureau Veritas 

Bernard Anne, managing director, marine division, Bureau Veritas 

” 

multi-disciplinary HSE team has 

been formed in BV to develop 

and maintain the best and most 

useable environmental standards. 

The intention is to help owners to 

run clean ships from newbuilding 

right through to ultimate 

recycling. We shall apply a 

holistic clean focus, and we have 

already begun to work on fuel 

cells, sail power and high 

performance hull coatings as well 

as eco-propulsion systems. 

We have been through the 

decade of cheap energy. Now we 

enter the decade of clean energy. 

It won't be cheap, it won't be 

easy, but the shipping industry 

will deliver it. Our role as 

classification societies will be to 

facilitate safe, sensible technical 

solutions to the opposing 

demands of booming world trade 

and increasing environmental 

consciousness. 

*by Bernard Anne, 

managing director, marine 

division, Bureau Veritas. 



Environmental 

awareness the key 

DNV has noted a significant increase in inquiries regarding its 

environmental performance system (EPS) from the maritime sector. 

Tor Svensen, coo of 

DNV Maritime said 

while emphasising the 

need for action: 

"Society at large has sharpened 

its environmental focus 

dramatically over the past few 

years. Authorities and regulators 

have followed this up by 

predicting new regulations. 

"Although transportation by 

ship is far more efficient and 

causes less emissions than the 

alternatives, the shipping industry 

will have to pay much more 

attention to the environment in 

the future," he said. 

To support the shipping 

industry's decision-making 

process, DNV Software is 

offering its EPS to the market. 

EPS is a commercial standalone 

application aimed at helping 

corporations to track and report 

the environmental effects of their 

operations. 

It is a web-based reporting tool, 

which complies with the Global 

Reporting Initiative (GRI) 

standards and ISO 14001. It is 

delivered via an application 

service provider (APS) service 

hosted from DNV's data centre at 

Hovik, just outside Oslo. 

EPS can accommodate useful 

information and is able to - 

Cost-effectively collect, 

process, store and report 

environmental information. 

Continuously follow-up and 

measure the environmental 

performance in a flexible way 

- according to a defined 

hierarchy, or throughout the 

fleet. 

Benchmark and profile 

environmental performance 

internally and externally. 

Administer users, 

organisations, indicators and 

parameters. 

Recent contracts include Fred 

Olsen Marine Services, which 

signed a contract for its FPSO 

and cruise vessel divisions. This 

included environmental 

consultancy services delivered by 

maritime solutions and a one-day 

training and hosting services 

provided by DNV Software. 

Golar management signed a 

contract to implement EPS 

throughout its fleet of 12 LNGCs 

and FSRU fleet. It will also report 

Onboard Sailing Vessels directly, 

without an internet connection 

using satellite mail service. 

In addition, DNV has chosen to 

implement ESP for corporate 

HSE reporting this year. 

Knut Helle, responsible for 

EPS' marketing and sales, said 

that DNV was experiencing a 

significant increase in inquiries 

about solutions like EPS, 

especially from the maritime 

industry and expected to provide 

this service to a large number of 

customers in various industry 

segments in the future. 

There was still a long way to 

go in motivating companies to 

see the potential in such 

investments, rather than looking 

on them as costs and in 

convincing them to invest in a 

third-party tool to replace inhouse 

Excel sheets. 

Successful year 

Meanwhile, the strong growth in 

the world economy, with a high 

level of activity in most industries, 

has resulted in "good financial 

performance and a long-term order 

reserve," said parent DNV's coo 

Henrik Madsen when announcing 

the 2007 results recently. 

"This has led to positive 

developments for DNV, and the 

company has achieved a growth 

of 11% in its core activities," he 

continued. DNV achieved a 

revenue of NOK8.126 bill 

($1.383 bill) last year, producing 

an operating profit of NOK873 

mill ($148 mill). Profit after tax 

amounted to NOK536 mill ($91 

mill). 

Within the ship classification 

sector, DNV's share of the world 

fleet measured in gt was about 

16%. Of the newbuildings 

contracted last year, the share of 

the world market in gt was 19%, 

or 741 ships. A total of 5,400 

trading vessels, representing 121 

mill gt, was classed by DNV at 

year-end, which is an all-time high. 

The demand for risk-related 

technology and management 

services has been high in the oil 

and gas industries. 

Certifying management 

systems makes up around 25% of 

DNV's total revenue. "DNV is 

among the world's three largest 

companies within accredited 

quality management system 

certification, and world leader in 

environmental management 

system certification," explained 

Madsen who also pointed out that 

there is a clear trend towards 

more industry-specific 

certification schemes, which will 

increase the need for a deep 

understanding of the various 

industries. 

Comms tie-up 

In another move, Becker Marine 

Systems Communication, the 

operator of universal marine 

communication global network 

(umc.global) and DNV have 

agreed a global sales and 

marketing agreement to optimise 

ship-to-shore communication. 

The strategic partnership means 

that DNV Maritime Partner, a 

wholly- owned subsidiary of 

DNV, will include DNV 

Navigator into the umc.global 

network. This new service will 

provide port information and 

forms, as well as other 

information required for port 

clearance purpose. 

By simplifying the updating 

process of the on board database 

and software, this jointly 

managed service is claimed to 

reduce the paper work and 

reporting time, and keeps the 

vessel updated faster than 

before. 

Becker and DNV are cooperating 

in content distribution 

and synchronisation, sales and 

marketing. As a result of fine 

tuning the system, DNV is able to 

deploy daily or weekly updates 

using the umc.one-klick approach 

within minutes, and thus the 

quarterly shipped CD is no longer 

necessary. 

Furthermore, crew and user 

intervention is no longer required 

and it also saves man days in 

administration and operation 

when updates are released. In 

addition, the data volume of the 

updates is lowered by about 60- 

80%, saving a large amount in 

communication costs. 

In early March, a pilot solution 

was installed on ships with 

Wallem Shipmanagement, whose 

IT strategy is based on Becker 

Marine Systems 

Communications. 

TO 



Probing for Corrosion 

Corrosion is one of the major challenges for the structural durability of vessels, 

especially for tankers and bulk carriers that are not only exposed to salt water 

but also to abrasive cargo corrosion. 

The condition of 

structural 

components is 

regularly monitored 

through class surveys, statutory 

surveys and shipowners' surveys, 

assessing thickness and other 

relevant criteria such as cracks, 

coating and anode condition. 

Until now, this has been a time 

consuming and error-prone 

process. Authorised contractors 

take the measurements and 

prepare the reports based on 

which surveyors and experts 

perform the subsequent analysis - 

with only little software support. 

Due to manual copying of data 

and creation of sketches, it can 

take considerable time for the 

investigation to progress from the 

first expert appraisal on site to 

the final thickness measurement 

report. 

New services have recently 

been developed by Germanischer 

Lloyd (GL) around the 

continuous monitoring and 

assessment of ship structures 

during service life. The Hull 

Lifecycle Programme (HLP) is 

offered both to owners and 

operators of GL-classed vessels 

in form of a class notation with 

the same name, and for those of 

non-GL classed vessels as a 

value-added service. 

The core of the new services 

consist of IT tools and 

methodologies to systematically 

collect, analyse and evaluate 

information about the condition 

of the ship's structural 

components such as thickness 

measurement data and results of 

visual inspections. 

Extensive research and 

development work by GL in cooperation 

with external partners 

in the past few years has resulted 

in computer tools and 

methodologies for hull 

assessment over the ship's 

lifecycle. A key element of this 

approach is the creation of a 

three-dimensional digital model 

of the ship comprising all 

relevant structural components. 

This 3D model is created once 

and updated to reflect any repairs 

or changes during the ship's 

service life. Besides being used 

for structural design and strength 

calculation purposes, the model 

serves as a raft of information 

about the hull condition, which 

can be visualised and assessed in 

different ways. 

Results of measurements and 

visual inspections can be 

documented with photographs 

and other documents, which are 

attached to the 3D model at the 

corresponding positions, in which 

The 3D model is a key element of lifecycle assessment. 

36 

Photographs are attached to the 3D model at the corresponding spots. 

defects have been detected in the 

real ship. 

Thickness 

measurements 

For thickness measurements 

(TM), the computer tool GL 

Pegasus uses the information 

contained in the ship's 3D model 

to support TM companies to 

effectively prepare, execute and 

report measurements. In 

particular, 2D graphics of the 

areas to be measured such as 

frame cross sections and shell 

expansion drawings can easily be 

generated with the software. 

These 2D views form the basis 

for campaign preparation and 

data collection and make the 

manual elaboration of sketches on 

paper practically superfluous. 

This data collection process is 

supported by interactive input in a 

user-friendly graphical interface 

with flexible possibilities for 

transfer of information between 

ultrasonic gauge and computer. 

Once the data has been entered into 

the system, results can be 

visualised and assessed 

immediately using the 2D und 3D 

display capabilities of GL Pegasus. 

One of the outstanding features 

of GL Pegasus is the automatic 

generation of thickness 

measurement reports according to 

the tabular layout recommended 

by IACS unified requirements, 

the class society said. 

Additionally, a summary of 

hotspots can be generated 

containing references to the 

sections of report, in which the 

critical areas have been identified. 

The summary of hotspots is an 

important instrument for the easy 

and fast assessment of the overall 

outcome of the thickness 

measurement campaign. 

The class notation HLP 

includes the generation and 

maintenance of the 3D model, the 

assessment and documentation of 

thickness measurements with GL 

Pegasus technology, 3D 



visualisation of TM data with the 

GL Pegasus viewer and fleet 

online, GL's online shipowner 

portal. Another important aspect 

of HLP is the systematic reassessment 

of the hull 

longitudinal strength after each 

thickness measurement campaign, 

which may lead to an adjustment 

ClassNK looks at CSR 

Japanese class society 

Nippon Kaiji Kyokai 

(ClassNK) has developed 

software for IACS 

Common Structural 

Rules (CSR). 

The society said that without the 

aid of well-developed software, it 

is impracticable to design and 

verify structural scantlings in 

accordance with CSR. 

ClassNK's software includes two 

different calculation programs - a 

prescriptive scantling calculation 

program and a direct strength 

calculation program for both 

drybulk carriers and tankers. 

The prescriptive version, 

released in August 2007, basically 

calculates required local 

scantlings, such as plate 

of the corrosion allowance 

margins to reflect the actual 

material thickness. 

Beside the class relevant 

aspects of hull condition 

monitoring, additional HLP 

modules are currently being 

developed to help shipowners and 

operators systematically plan, 

conduct, document and assess 

own inspections on their vessels. 

Based on the same 3D model, the 

shipowners' inspection procedures 

will be supported with computer 

tools for on board and ashore 

operation and may be combined 

with available PMS. 

Inspection preparation, 

RINA designs help smaller Chinese yards 

During 2007, the close 

relationships which 

RINA built up with 

emerging Chinese 

shipyards helped them 

offer owners approved 

designs for smaller 

tankers. 

Of the RINA newbuilding 

orderbook, 57% is booked in 

Far East yards, with over 30% 

in China alone. 

Orders for tankers grew 

faster than the proportion of 

ships in the current fleet, taking 

around 24% of the orderbook. 

Over the year, the orderbook 

grew at a faster rate than ever 

before, finishing the year on 

575 ships totalling 8.85 mill gt, 

which is around 40% of the 

present classed fleet. Much of 

thicknesses and section modules 

of longitudinals and stiffeners in 

accordance with formulae as 

prescribed in CSR. 

The direct strength analysis 

programme, released in March 

2006, deals with stress evaluation, 

buckling assessment and fatigue 

calculation using finite element 

model of the tank structures. 

Prescriptive 

For the prescriptive rule calculation 

program 'PrimeShip-HULL (CSR) 

Rule Calculations for Double Hull 

Oil Tankers', at first, ClassNK 

released calculation tools in Excel 

format for prescriptive rule 

calculations. In August 2007, a new 

software package with GUI 

functions was developed and 

this increased orderbook came 

from shipowners new to RINA 

in Greece, China, Turkey, 

Germany and Indonesia. 

At the end of 2007, RINA's 

classed fleet reached 3,360 

vessels totalling 21.5 mill gt. 

That was an increase of 8% on 

2006. Much of the growth came 

from newbuildings, which 

lowered the average age of the 

fleet. 

RINA's focus on quality was 

demonstrated by excellent Port 

State Control results, with the 

Paris MoU naming RINA as the 

second best performing 

classification society in Europe. 

The class society's R&D 

department began two projects 

of special interest to tanker 

owners. One was to develop a 

released on the market. 

The software offers support for 

many different types, including 

VLCCs, Aframaxes, chemical 

tankers and product carriers and 

for different types of materials, 

such as stainless and clad steels. 

ClassNK claimed that the 

system is very user friendly GUI 

and the user can input the 

necessary data for tank particulars 

and structure scantlings easily 

and quickly. The calculated 

results can be displayed on 

screen, for ease of use. 

Calculations are executed by 

MS-Excel and the user can utilise 

Excel spread sheets for detailed 

confirmation of calculated results 

and for further examination of 

scantling modification. 

RINA head of marine division 

Antonio Pingiori 

paperless ship, so easing crew 

work and stress levels, the other 

was a major project to 

investigate better means of 

applying coatings for steel 

protection. 

 

visualisation and the inspection 

workflow in general is organised 

by ship compartments. With GL's 

HLP, shipowners and operators 

can systematically manage, assess 

and document all information 

concerning the structural 

condition of their ships, GL 

claimed. 

TO 

In addition to ordinary 

scantling calculations for 

longitudinal strength and local 

strength, the system supports 

ultimate strength calculations, 

fatigue calculations, stiffener 

connection strength, sloshing 

assessment and strength checks 

for primary support members. 

Calculation tools for both 

methods of ultimate strength 

calculations - Single step ultimate 

capacity method - and - Simplified 

method based on an incrementaliterative 

approach - are provided. 

Direct strength 

For 'PrimeShip-HULL (CSR) 

DSA for Oil Tanker', this 

software was developed based on 

existing software for ClassNK 

guidelines and has functions to 

subtract corrosion additions from 

the FE model, generate pressures 

and forces and set boundary 

conditions automatically. 

The latest version (Ver.2.22) 

was released in September last 

year and has the following 

improvements on the previous 

versions - 

(1) The analyses of chemical 

carrier functions for 

corrugated bulkheads and for 

stainless steels have been 

added. 

(2) The function of advanced 

buckling tool was 

incorporated and buckling 

analysis with the advanced 

buckling tool can be 

performed automatically. 

ClassNK said it will continuously 

improve and support the software 

programs to supply a more reliable 

and user-friendly CSR software 

package and will also continue to 

improve customer support. TO 


Celebrating 50 years of service 

Voyage Planning Regulatory Advisory Reports and Logs 

We are pleased to introduce the 

Glosten Ballast Management System 

Target Release Date: September 2008 

• Software solution for environmental compliance 

with ballast management regulations. Designed for 

fleet consistency and time savings for crew. 

• Easy entry of planned ballast uptake, exchange, 

treatment and discharge evolutions by port or tank. 

• Immediate compliance feedback based on geographicbased 

regulatory database. 

• Searchable advisory library of world-wide ballast 

management regulations. 

• Automated generation of mandatory reports and logs 

(e.g. IMO, USCG, Saint Lawrence Seaway, Australia, 

California). 

• Under Development – Target Release September 2008. 

• Contact gbms@glosten.com for more information. 

CLASSIFICATION SOCIETIES 

The human element 

Lloyd’s Register’s (LR) 

Human Element Gap 

Analysis (HEGA) service 

launched last year has 

"triggered a lot of 

interest", according to 

Andrew Sillitoe, LR’s 

product specialist - 

human element 

services. 

The service was launched to 

raise awareness of the human 

element in ship operations, 

especially ashore. Sillitoe 

claimed that operators were now 

more aware of how human 

interaction with machinery 

and equipment. 

Since HEGA's launch (see 

TANKEROperator May and 

June issues, 2007), training 

courses have been developed to 

focus on awareness of potential 

problems with, for example in 

equipment developed and their 

attendant manuals. The two-day 

course is designed to be 

interactive with the participants 

becoming involved in the 

discussions to "...get people 

to talk about problems," 

Sillitoe said. 

Courses can be run as public 

events, or privately tailored to a 

specific client's needs. A trial run 

was recently held in a client's 

Hong Kong office and the 

feedback was positive, illustrating 

that the course was well received, 

Sillitoe said. 

The aim is to take a look at the 

systems in place ashore and ask - 

is the shoreside management 

providing the right kind of 

backup for their seafarers? Are 

there conflicting messages 

coming from the office about 

certain procedures? Are there 

hidden or deliberately placed 

messages that could be 

misconstrued? 

The whole approach is based 

on feedback from the people 

involved in the equipment and/or 

recommendations being 

developed, be it equipment, 

manuals, safety management 

systems. In a 'who is going to use 

it' type culture, it is the people on 

board that are going to make use 

of the equipment, or take notice 

of the rules/recommendations and 

so it is no good designing or 

recommending something that is 

difficult to implement, Sillitoe 

explained. 

"It is the superintendents that 

need to ask the questions," 

Sillitoe thought. For example, by 

asking the seafarers "….what 

works and what doesn't work?" 

"What needs replacing? What 

encourages errors?" "What was 

the thinking behind it?" 

Superintendents could take notice 

of feedback and roll out any 

changes recommended across 

their fleets. 

It is obviously costly to replace 

equipment, especially as some of 

the faults could have been 

designed out right from the start, 

Sillitoe thought. By using this 

human element service, operators 

would be encouraged to help 

develop equipment by being 

aware of its existence and modus 

operandi, as it is recognised that 

not everybody knows about such 

things as for example - 

ergonomics. 

By using the science of 

ergonomics, risks and errors can 

be designed out of a system at 

the beginning. For example, 

bridges, engine and cargo 

control rooms, valves, pumps 

and winches could be improved 

if needed by listening to the 

people who have to work with 

them. By involving experienced 

seafaring and shoreside 

company personnel at the design 

stage, errors could be 

eliminated, Sillitoe thought. 

He also said that there was 

more of an appetite for the human 

element discussion in the tanker 

industry, due to the current 

regime of continuous 

improvement promoted by the 

introduction of TMSA. Indeed, 

LR modelled HEGA on a TMSAstyle 

formula. 

There is a growing belief that 

the human element is very 



important at all levels as the IMO 

has now recognised, for example, 

in its navigation safety 

committee. 

LR is to produce a human 

centred pocket booklet as a sort 

of checklist, posing the type of 

questions, such as - How will it 

be used and who will use it? This 

will enable companies to look at 

themselves by using more of a 

systematic method, choosing 

from different options. 

The class society has also 

started to look at the human 

element in shipbuilding and 

equipment manufacturing to see 

how HEGA could be incorporated 

in these sectors of the marine 

industry. 

TO 

New technology and worldwide expansion drive KR’s 

success 

Quality, technology and 

customer service is 

driving KR’s continued 

growth. 

The Korean Register of Shipping 

(KR) - IACS member and one of 

the world's leading classification 

societies - continued to grow and 

develop. 

The total number of ships 

classed with the society is already 

up over 11% on figures from 

2007 and now stands at an all 

time high of 2,253 (30.3 mill gt). 

Driving this international 

growth is KR's attention to 

quality, technology and customer 

service. KR said that it is 

determined to eliminate substandard 

ships from within his 

membership and is taking bold 

steps in order to achieve that. To 

this end, KR has established a 

'flying squad' of experienced 

surveyors dedicated to assisting 

vessels categorised as requiring 

'special attention' during PSC 

inspections and is offering preinspection 

services for vessels 

scheduled to enter a port where a 

PSC inspection was expected. 

To ensure that KR's high 

standards and customer service 

levels are maintained in the long 

term KR is continuing its 

programme of extending the 

organisation's international 

presence. 

Five new offices are being 

opened later this year (China, 

South Africa, India, Taiwan and 

the US) to complement the 

current network of 44 offices in 

major ports around the world. 

More are planned for 2009. 

Technology is also a key 

driver of growth. In January, KR 

launched the 7th version of KR- 

CON, a database program of 

IMO instruments and checklists 

available in a USB memory 

stick and on-line. KR-CON 

provides up-to-date consolidated 

editions of all relevant IMO 

conventions and codes together 

with subsequent amendments. 

The latest version also includes 

meeting results from MSC's 

83rd session and MEPC's 

56th session. 

KR-CON has also been 

commissioned by the European 

Maritime Safety Agency 

(EMSA) to develop a similar 

system for their specific use. 

Called 'Rulecheck', the EMSA 

system was developed by KR 

and successfully delivered at the 

end of last year. It contains a 

complete list of all the rules and 

procedures required by Port State 

Control officers of the Paris 

MOU. This new system is 

considered as a valuable tool 

helping inspectors to follow the 

complex elements of EU and 

international legislation 

consistently and more 

effectively. 

KR is also among the IACS 

members interpreting and 

implementing the Common 

Structural Rules (CSR) for both 

tankers and bulk carriers. Its 

implementation, together with a 

comprehensive training package, 

has been well received, claimed 

KR. The society's CSR software - 

SeaTrust-CSR - is currently being 

used by 18 major shipbuilders 

and design houses as well as 14 

universities. 

Senior KR technical managers 

sit on the IACS project team 

responsible for ensuring that 

CSR rules are interpreted and 

applied consistently by all 

members. It is through this work 

that KR has been able to prove 

the integrity and accuracy of its 

CSR software. 

Working on behalf of the South 

Korean government, KR has 

contributed to the IMO's 

continuing work on goal-based 

standards and this has included 

staging a series of seminars and 

workshops to gather feedback 

from a range of ship design and 

other experts. At the same time, 

KR is reaching out to other 

communities and has established 

ABS on ice 

ABS gave a paper at the 

recent Gastech event 

entitled Combine Ice 

Class Rules With Direct 

Calculations For Design 

Of Arctic LNG Vessel 

Propulsion written by 

ABS' principal engineer, 

Sing-Kwan Lee. 

With about one-third of the 

world's vast oil and gas reserves 

awaiting exploration in the 

Russian Arctic, there has been 

focus and developments in ice 

navigation, winterisation within 

tanker and LNG ship technology 

in order to pave the way for 

Arctic LNG carriers to transport 

the gas produced from the 

far north. 

The paper looked at direct 

calculations and model tests for 

propulsion designs. The two 

most critical design issues in ice 

ship propulsion, engine powering 

and propulsor performance, were 

discussed and comparisons of 

propulsion designs based on 

Finnish-Swedish Ice Class Rules 

(FSICRs) and on direct 

two very successful regional 

committees in Greece (KR 

Hellenic Committee) and in 

London (KR European 

Committee). Both committees 

meet annually to debate a range 

of issues focusing on improving 

quality, safety standards and 

customer service. In addition, KR 

continues to be a very active 

member of IACS having taken 

the vice-chairmanship in July of 

last year, taking over the 

chairmanship in July 2008. 

TO 

calculation were presented 

namely for fixed pitch propeller 

(FPP), controllable pitch 

propeller (CPP) and ducted 

propeller. 

Along with examining 

propulsion designs the paper 

discussed the importance of 

integrated design considerations 

for ice-going ships. 

Strengthening the hull, rudder, 

propellers, shafts and gears are 

clearly related to the safety of 

navigation in ice. A 

comprehensive design should 

include strength design of the 

propulsor under ice load 

conditions (see also page 51). 

One of the first LNG carriers to 

receive ice-class notations as it is 

being built for Russia's Sakhalin 

Island project was Hyundai 

Merchant Marine's 150,000 cu m 

LNGC, Hyundai Ecopia. 

She is under construction at 

Hyundai Heavy Industries (HHI) 

Shipyard in Ulsan and will be 

dual classed by ABS and the 

Korean Registry (KR) when 

completed in November 2008. TO 


INDUSTRY - TANKER VETTING 

Does TMSA make vetting 

inspections obsolete? 

The Tanker Management and Self Assessment (TMSA) guidelines were first published by 

the Oil Companies International Marine Forum (OCIMF) in June 2004*. 

With positive 

support from 

certain sections 

of the industry, it 

was introduced to tanker 

operators and imposed upon them 

by a number of the oil major 

charterers. 

Since its introduction, TMSA, 

as it has become known, has had 

a significant impact on 

management systems and has 

become a driving force promoting 

continuous improvement among 

the leading operators. Four years 

on, with a second edition due for 

publication shortly, it is perhaps 

timely to examine what this 

initiative may ultimately achieve. 

One objective must be the 

elimination of the ubiquitous 

tanker vetting inspection. 

The TMSA programme offers a 

standard framework for the 

assessment of a ship operator's 

management system. It is also 

intended to help ship operators 

improve their management 

systems and help industry to 

make well informed vetting 

decisions. 

Good tanker operators have 

always considered vetting 

inspections an unnecessary and 

expensive exercise. However, 

there were always those who took 

advantage and saw vetting 

inspections as a cheaper option 

than employing experienced 

superintendents. These operators 

used the vetting inspector to 

identify deficiencies, which were 

then corrected before the next 

inspection, which in turn 

identified a further catalogue of 

deficiencies. 

Fortunately, those days are 

behind us and most if not all of 

the latter operators have been 

forced out of the tanker business - 

or perhaps into other sectors 

where standards are less 

demanding. 

It has to be admitted that 

vetting inspections over the past 

15 years have significantly 

improved the operational 

conditions of all tankers. For 

operators with qualified, 

experienced, well trained and 

motivated crews, good 

management systems and 

rigorous attention to detail, a 

vetting inspection was an 

expensive verification that all or 

most of their systems were 

working. 

Ship status 

An operator committed to the 

highest standards of safety and 

environmental excellence on 

board their vessels using the 

TMSA guidelines as a 

measurement tool would always 

know the status of each ship. If 

that operator had inspection 

processes similar to, or the 

equivalent of, the OCIMF Ship 

Inspection Report Programme 

(SIRE) or Chemical Distribution 

Institute (CDI) vessel inspection 

questionnaires (VIQ's), then 

vessels in the fleet would all be at 

a standard anticipated by these 

systems and ready for inspection 

at any time. All defects and 

deficiencies would have been 

identified with plans and 

timelines for corrective action. 

These would be monitored to 

close-out by the shore 

management. 

The only reason an operator 

may request a vetting inspection 

would be for commercial 

necessity. Here, there has been 

long standing confusion caused 

by charter party clauses that 

confuse vetting and inspection. 

The former being the process for 

evaluating the data to determine 

whether the vessel is suitable for 

the intended voyage; while the 

latter is one of the processes of 

data collection. If inspections are 

redundant, the confusion is 

removed and we are left with 

vetting decisions. 

If that operator was requesting 

a vetting inspection for any other 

reason, it indicated they did not 

trust, or were uncertain of their 

own management system. If their 

own inspection format is not 

equivalent to the SIRE or CDI 

VIQ then there may still be areas 

on the vessel inadequately 

monitored. That operator would 

at best only be at the minimum 

level of TMSA conformance. 

Oil major signals 

Recognising the benefits of 

TMSA, a number of oil majors 

have signalled that they would 

like to do away with vetting 

inspections, although to date they 

all still carry them out. The 

leading indicators recommended 

in the TMSA guidelines provide 

sufficient information to assess 

the risk associated with use of 

those operators' vessels. 

They also provide a valued 

determination of whether they 

have effective control processes 

implemented, not only to justify 

acceptance for spot or term 

business, but also to deliver a 

sustained level of safety and 

environmental excellence. An 

increasing number of 

sophisticated electronic risk 

management systems, used by the 

oil majors when screening vessels 

for potential service, make an 

evaluation from their databases of 

lagging indicators, in order to 

confirm that the standard of 

performance matches the 

operator's self-assessment. 

A solution many operators have 

adopted to provide the necessary 

level of detail about the 

operational status on each vessel 

is to introduce a continuous 

assessment process on board 

based upon the SIRE/CDI VIQ's 

with monthly status reporting to 

update the shore management 

records. Superintendents and 

managers audit this selfassessment 

during visits on board 

to verify its accuracy and 

consistency. They can confirm 

that all defects and deficiencies 

have been identified and that 

plans with timelines for 

preventative and corrective action 

have been implemented. 

Vetting inspections thus 

become unnecessary. The TMSA 

profile provides confirmation that 

the system is implemented and 

the fleet performance lagging 

indicators provide evidence that it 

is working effectively. Internal 

auditing confirms the former 

while terminal inspections and 

incident monitoring confirm the 

latter. If the fleet delivers a 

flawless operation using the 

above, why incur the impact on 

crew time and also the expense of 

a vetting inspection? 

Without doubt, commitment to 

and application of the TMSA 

guidelines will make vetting 

inspections redundant. 

*This article was written by 

Captain Chris Allport, 

independent marine 

consultant, Gout-Rossignol, 

Dordogne, France. 

40 


INDUSTRY - TANKER VETTING 

Tanker and operator vetting 

post Erika trial findings 

The findings of the French court ruling on the loss of the Erika and resultant pollution 

are reported to include implied criticism of the charterer's tanker vetting process*. 

The response from the 

charterer is reported 

to have been an 

expression of concern 

at the criticism, made by the 

Court, of a voluntary 

environmental and safety measure 

(vetting) exercised by the 

charterer. 

This raises the question - what 

actions, if any, are oil majors 

likely to take with regard to their 

vessel and vessel operator vetting 

processes as a result of these 

reported court findings? One 

view may be that, although the 

vetting system was criticised, that 

critical comment (and fine?) may 

have been more severe had they 

not had a vetting system in place. 

It is therefore highly likely that 

oil major charterers will take 

some action. 

They have basically three 

options of which each would 

involve a review of their vetting 

process. In light of their findings 

they could- 

1) Reduce their vetting 

requirements. 

2) Make no changes to their 

vetting process. 

3) Modify or increase the 

thoroughness of their vetting 

activity in order to try to 

avoid association with 

incidents and criticism should 

a similar incident occur. 

My money would be on option 

three. I would expect every oil 

major to take note of the French 

Court’s findings, to carry out a 

review of their vetting process 

and make appropriate changes 

in order to be able to 

demonstrate due diligence in 

their vetting activity and 

thereby present a stronger 

defence should an incident 

occur with a chartered vessel. 

If we consider what changes 

are likely, it is reasonable to 

suppose that they will involve 

an increased thoroughness of 

the vetting process, tighter 

internal control and audit of that 

process, a more risk averse 

vetting system and little 

notification to tanker operators 

or others of their vetting system 

changes. Of course, the various 

oil major vetting systems differ 

so the extent of any changes 

will vary from oil major to 

oil major. 

If we accept that some changes 

to the vetting processes used by 

the oil majors are to be expected 

should tanker operators be 

concerned and do they need to 

take any actions of their own? In 

my view most operators should 

not be concerned because any 

changes to the vetting processes 

are likely to make the current 

diverse vetting systems more 

closely aligned and the vetting 

process easier to interface with 

and manage. 

The changes would also be 

likely to slightly raise the vetting 

bar thus removing some of the 

poorer standard, and some may 

say cheaper, tankers and 

operators. With regard to 

whether operators should 

consider taking action 

themselves, I believe it is in their 

interest to do so. It was my 

experience during 10 years of 

managing an oil major vetting 

activity that most operators 

underestimate the value to their 

business of good management of 

the vetting interface with their 

customers and consequently the 

tanker operator vetting interface 

activity is not well managed. 

If we accept that post Erika 

vetting changes are likely by the 

oil majors, we may consider that 

one objective of those changes 

will be to further reduce the 

potential liability of the 

charterer, or reduce adverse 

publicity. If this action is 

successful, it may result in closer 

scrutiny and greater impact on 

the tanker operator. 

A prudent tanker operator may 

therefore be well advised to 

review their own vetting activity, 

including the accuracy of data on 

their fleet held by international 

data providers, the thoroughness 

of their ship inspection 

preparation process, the 

robustness and use made of their 

TMSA and their process for 

management of the interface with 

a charter post incident. 

Technically competent 

Of major importance I believe is 

the staffing and management of 

their vetting people. They should 

not be selected on their technical 

competency alone; an ability to 

communicate effectively within 

the company and with oil major 

vetting customers is vital, they 

must be fully trained in the 

vetting process and its objectives 

and have a proactive attitude to 

support of the chartering process. 

Currently, the focus tends to be 

on ship inspection management 

and TMSA production. The 

vetting activity and the 

communications that it carries out 

with oil major vetting 

departments (customers) must 

also receive legal review and 

guidance. Inaccurate information, 

poor communications and lack of 

due diligence in a tanker 

operators vetting process could 

well be used against an operator 

by court's and Port State 

following an incident. It may also 

cause potential charterers to avoid 

business with an operator who 

has been shown to effectively 

manage this part of their business. 

It must also be noted that it 

also makes sound business sense 

to understand and meet the 

customer's vetting needs. This can 

be achieved through the provision 

of good accurate vetting 

performance data to potential 

customers through the vetting 

interface process. Also to be able 

to internally advise fleet 

management and operations 

people on actions that will 

enhance chartering prospects. 

Tanker operators should use the 

vetting process to their advantage. 

If operators meet oil major 

(customer) vetting requirements 

'head on' through a well managed 

vetting interface activity they 

should not be concerned about 

vetting process changes that may 

result from the Erika court 

findings. 

TO 

*This article was written 

by Tim Knowles who was 

manager of third party 

tanker Q/A in the marine 

services division of 

International Marine 

Transportation and was 

responsible for managing 

the global processes of 

third party tanker 

screening for those tankers 

considered for 

ExxonMobil affiliate use. 

He now advises tanker 

operators on vetting issues. 


TECHNOLOGY - CARGO MONITORING 

Monitoring and 

gauging system 

Recommendations from various authorities, such as the US Coast Guard, have led to 

several technological initiatives in the field of tank gauging and monitoring. 

One such initiative 

was developed by 

UK-based Martek 

Marine, which, in 

response to the recommendations 

and feedback from the shipping 

industry, spent four years 

developing the MaRAD tank 

gauging system. 

This system was developed to 

provide high quality tank 

monitoring, while also embracing 

tank gauging in light of the 

proposals put forward by the 

USCG for cargo leak detection in 

1999. This was an amendment to 

an earlier proposal in 1995. 

These proposals called for a 

system to meet the following 

standards: - 

Automatically compensate for 

changes in cargo volume due 

to temperature. 

Be intrinsically safe, or 

explosion proof. 

Indicate the event of a loss of 

power, or failure of the leak 

detection circuit and monitor 

the condition of the alarm 

circuitry and sensor by an 

electronic self-testing feature. 

Alarm before cargo in the tank 

declines to a level of 1% 

below the loaded level, or 

before the loss of more than 

1,000 gallons of cargo from 

the tank, whichever is less. 

Be designed to operate 

without degradation in heavy 

seas, moisture and varying 

weather conditions. 

Have audible and visible 

alarm indicators that can be 

remotely installed. 

Until recently, Martek said that 

there appeared to be a gap in the 

market for a system that could 

perform to these requirements as it 

was deemed difficult to achieve a 

1% detection level, for example 

due to ships pitching in rough seas. 

MaRAD was developed to 

detect such a small deviation and 

is claimed to be able to give an 

accurate reading within 3 mm, 

however, the system still 

performs to the level of general 

tank monitoring needed by tanker 

owners today, the company said. 

radar technology, designed to 

cover the full range of liquids 

likely to be shipped on board. Its 

measurement accuracy is the 

same for each cargo type. It is 

also claimed to be intrinsically 

safe, thus not presenting a danger 

to a potentially hazardous cargo 

on board. The radar also has an 

IP67 rating. 

A PC-controlled display is 

located in the control room 

together with the processing unit 

where real time data is taken 

from the radars and transferred 

Screen shot displaying tank levels. 

System features 

The system was designed to 

monitor temperature, pressure, 

high level and overfill, while 

still offering a user friendly 

interface. It can monitor up to 19 

cargo tanks and the same number 

of ballast tanks simultaneously, 

offering an all in one monitoring 

system, Martek said. 

MaRAD is also fitted with a 

deck mount unit (DMU) 

containing reliable and accurate 

MaRAD radar unit. 

Need anchors and chains? 

www.wortelboer.nl 

42 



MaRAD in use. 

MaRAD system. 

over a single, or double, 

redundant communications link to 

the system, where it is displayed 

in graphical illustration format. 

The displays show a clear 

indication of all tank activity and 

at the click of a button, the user 

can extract further detailed 

information about each 

individual tank. 

In the event of an emergency, 

both visual and audible alarms 

are raised. The system also 

features an accident log to enable 

preventative measures to be 

taken in the future. 

It was also designed to work 

alongside Centurion, Martek's 

electrically independent high 

level and overfill alarm system, 

which is compliant with USCG 

and IMO requirements for 

tankers. Alarm systems for both 

95% and 98% level are available. 

The company gained its first 

orders for MaRAD from Turkish 

shipyards and the equipment has 

already been dispatched. 

Martek director Steve Coulson 

said: "MaRAD has been tested in 

the harshest of marine environments, 

where the system has to 

perform under the constant 

pressure of extreme weather 

conditions and relentless seas, 

testament to its ability to work in 

hostile environments." 

It recently gained the type 

approval of Germanischer 

Lloyd (GL). 

TO 



Cargo monitoring/ 

control system 

unveiled 

Norwegian conglomerate Kongsberg has introduced K-Gauge, which is a cargo 

monitoring and control system. 

It comprises level gauging, 

temperature and pressure 

monitoring, valve and 

pump control. It is part of 

Kongsberg modular integrated 

automation and control system. 

According to Kongsberg, the 

modular design allows for 

flexibility in the configuration of 

the cargo monitoring and control 

system to individual 

requirements, covering the whole 

range of tank monitoring and tank 

control, both as an integrated and 

as a standalone system. 

K-Gauge has primarily been 

designed to measure the 

ullage/levels in shipboard tanks. 

The standard version can measure 

any liquefied cargoes up to a 

distance of 50 m. These 

measurements can be made under 

extreme environmental 

conditions, that is, temperature, 

pressure and humidity, according 

to Kongsberg. 

The 24 GHz high frequency 

and the antenna design give a 

narrow half beam width of plus 

or minus 3%, making it easier to 

install radar tank gauges on 

narrow tanks, for example 

slop tanks. 

The high signal to noise ratio 

performance of the radar signal 

processing, ensures accurate and 

reliable readings with high 

repeatability. Due to the antenna 

design, neither deposit, or 

condensation will have any effect 

on the performance. 

To ease installation, the radar 

tank gauge (RTG) has been 

designed to be installed on top of 

the tank on a gauge socket. Tank 

pressure and tank temperature 

sensors can easily be connected 

to the RTG. A common cable 

connects the RTG, pressure and 

temperature signals to the cargo 

control room, thus no extra 

cabling is required. 

Cargo monitoring and control - tank ullage presentation with 

corresponding tank data. 

44 

GLA120/P radar tank gauge head used with the cargo monitoring 

and control system. 

Forming the human/machine 

interface is the operator station. 

Alarms are handled continuously 

in the background and ensure 

that the operator is immediately 

reported on the monitor. Reports 

on failures and alarms, as well 

as history/trend reports on level, 

inert gas pressure and 

temperature are logged and 

stored. Parameter values and 

alarm limit settings, plus graphic 

presentations of ship specific 

data are displayed on the 

monitor. 

The K-Gauge operator station's 

main functions are as follows:- 

Cargo tank level monitoring. 

Cargo tank pressure 

monitoring. 

Cargo tank temperature 

monitoring. 

Ballast tank level monitoring. 

Service tank level monitoring. 

Draft, trim and list monitoring. 

Handling of alarms and 

failures. 

System configuration. 

Storage of measured parameter 

values. 

Logging of history/trends. 

Calculation using measured 

parameter values. 

In addition, Kongsberg claimed 

that the system - 

Takes full advantage of the 

latest microwave technology. 

Applicable for all liquid 

cargoes. 

A variety of radar tank gauges 

available. 

Highly reliable and accurate. 

Control of cargo and ballast 

pumps and valves. 

Temperature monitoring in the 

cargo plant. 

Certified as CTS for gas 

carriers. 

TO 


Get bunker 

service 

right on schedule 

You have a busy schedule. We’re there to help 

you keep it. That’s the thinking behind our 

No Detours-No Delays approach to bunkering. 

We’ve stocked physical supplies in ports 

worldwide so you won’t have to go out of your 

way for bunkers. And we’re expanding our 

fleet with purpose-built ships designed for fast 

refuel ing. They come and go on time—so you 

can leave right on schedule. 

Physical Supply · Global Trading · Risk Management 

www.owbunker.com

TECHNOLOGY - BUNKERING 

SECAs bring subtle changes 

in fuel purchase patterns 

Geoff Jones, general manager, Lintec Testing Services, looks at the findings of a recent 

review of low sulphur fuel tests in Europe and concludes that there has been an 

improvement in the quality of bunkers in recent months. 

More and more low 

sulphur fuel oils 

(LSFOs) are being 

bunkered within 

Europe following the 

implementation of Sulphur 

Emission Control Areas (SECAs). 

And Lintec Testing Services has 

been reviewing data for these fuel 

oils, both before and after the EU 

SECA came into force, on 11th 

August, 2007. This review also 

looked at data when the only 

SECA in place was that relating 

to the Baltic Sea. 

The period under review was 

third-quarter 2007, with data 

specifically being reviewed prior 

Geoff Jones 

Figure 1 

to and after 11th August. 

During this quarter, 

approximately 20% of all fuel 

oils tested by Lintec were 

classified as LSFOs. The 

distribution of these fuels from 

major European bunker ports is 

set out in Figure 1. 

The distribution of samples 

received before and after 11th 

August is tabulated as Figure 2 

Based on this small sample, it 

would seem that Rotterdam has 

significantly benefited from the 

introduction of the new EU 

SECA. Minor increases, 

meanwhile, were apparent for 

Zeebrugge and Gibraltar. The 

numbers of LSFOs as a percentage 

received by Lintec from the port 

of Hamburg after 11th August has 

been reduced by almost 50%. 

Of the numerous fuels tested 

by Lintec during 3Q 2007, the 

result on many occasions 

exceeded the maximum permitted 

sulphur value for fuels to be used 

within a SECA. 

Cases in which a commercial 

sample of fuel exceeds 1.50% 

m/m still need further discussion. 

But many parties throughout the 

bunker industry are now aware 

that the specified test method for 

sulphur content - ISO 8754:2003 

- has defined precision data. 

The concept of 95% confidence 

is now commonly discussed when 

commercial samples are found to 

be in excess of the maximum 

value permitted for a SECA. For 

a single test result, the calculated 

95% confidence limit applies up 

to 1.58% sulphur content. 

The 3Q 2007 data was 

reviewed for compliance of 

commercial samples tested within 

the sulphur ranges as below, 

tabulated as Figure 3: 

1. Less than 1% per cent m/m. 

2. Greater than 1% but less than 

or equal to1.42% m/m. 

Port Rotterdam Hamburg Antwerp St Petersburg Zeebrugge Dunkirk, Falmouth, 

& Gothenburg Gibraltar, Skagen 

% of 19 10 8 8 3 2 

total 

Port Rotterdam Hamburg Antwerp St Petersburg Zeebrugge Dunkirk, Falmouth, 

& Gothenburg Gibraltar, Skagen 

% before 

11th 17 13 8 9 2 / 4 2 / 2 / < 1 / 3 

August 

% after 

11th 21 7 8 8 4 / 2 2 / 2 / 4 / 1 

August 

Figure 2 

Sulphur content < 1.00 > 1.00 < > 1.42 < > 1.50 < > 1.58 

% m/m 1.42 1.50 1.58 

Percentage of 10 44 32 9 5 

total 

Figure 3 

Sulphur content < 1.00 > 1.00 < > 1.42 < > 1.50 < > 1.58 

% m/m 1.42 1.50 1.58 

Percentage of 7 64 23 4 2 

total 

Figure 4 

3. Greater than 1.42% but less 

than or equal to 1.50% m/m. 

4. Greater than 1.50% but less 

than or equal to 1.58% m/m. 

5. Greater than 1.58% m/m. 

Figure 3 indicates that, for Q3 

2007, 14% of commercial 

samples tested by Lintec Testing 

Services were found to be in 

excess of 1.50%. 

However over 85% of all 

samples were reported as being in 

compliance with the sulphur limit 

within a SECA. 

This review has highlighted the 

fact that subtle changes in the 

bunker purchasing pattern may 

have occurred since the 

implementation of the EU SECA. 

Lintec has also reviewed the 

low sulphur data since the 

implementation of the Annex VI 

SECA on 22nd November, 2007, 

to the end of February 2008. This 

data, presented below as Figure 4, 

highlights a change in the quality 

of bunkers since 22nd November. 

Overall, 94% of all samples 

tested were found to be in 

compliance with the sulphur 

limit, with only 6% now failing to 

comply. This compares with 14% 

compliance failure for 3Q of 

2007, which is an extremely 

positive development. 

TO 

46 


Your fuel 

Tested by Lintec 

LINTEC TESTING SERVICES LTD 

Tel +44 (0)1325 390180 

E-Mail testing@lintec-group.com 

www.lintec-group.com


Chemoil opens 

operations at Helios 

and expands Fujairah 

The opening of a new Singapore hub plus plans to expand in the UAE were just two of 

the initiatives announced by listed bunker provider Chemoil this year. 

The first came at the 

end of February, when 

Chemoil officially 

launched operations at 

its flagship Helios Terminal in 

Singapore. 

Leading executives and officials 

of organisations who were pivotal 

to the construction project 

attended the inaugural event which 

was hosted on Jurong Island. The 

ceremony was held in memory of 

Chemoil's late founder and ceo, 

Robert Chandran. 

Spanning 16.97 hectares, 18 

storage tanks have been erected 

holding a total capacity of 

448,000 cu m of bunkers for 

commercial use. The jetty is 

capable of berthing two 

Suezmaxes or six 10,000 dwt 

tankers simultaneously. Chemoil 

also gained access to a nearby 

VLCC jetty last month, which has 

the capability of berthing large 

vessels of up to 320,000 dwt and 

is fitted with the advanced 

technology to unload a VLCC in 

24 hours. 

In addition to providing 

customers with a consistency of 

service and flexibility through 

controlling fuel sourcing, 

blending, terminalling and 

barging operations in Singapore, 

the $122 mill investment is an 

illustration of how Chemoil 

converts typical running costs 

into strategic assets that enhance 

service, streamline efficiencies 

and generate additional income 

through leasing approximately 

half of the terminal's total 

capacity to third parties, the 

company said. 

Sanjay Anand, managing 

director of Helios Terminal and 

Chemoil Logistics said: "Chemoil 

embarked on its journey to build 

the Helios Terminal back in June 

2006 and the timely fulfillment of 

this ambition is testament to the 

Fujairah is set for massive expansion. 

dedication of the Chemoil team 

and the support of Singapore's 

maritime community. We would 

also like to express our gratitude 

to our financiers, the syndication 

of whom was led by RZB, and 

the contractors who have 

supported our vision. This marks 

the start of a new era of 

independence for marine fuel 

supply in Singapore and across 

the world's key bunkering 

destinations." 

The second during the middle of 

March confirmed that Chemoil is 

to further expand its GPSChemoil 

terminal in Fujairah by adding 

additional capacity of between 

500,000 to 600,000 cu m by 2010, 

thus creating the company's largest 

owned storage facility after the 

recently launched Helios Terminal 

in Singapore. 

Following the completion of 

the total expansion programme 

through Chemoil's joint venture 

with Gulf Petroleum Supplies 

(GPS), the terminal's total 

capacity could reach about 

650,000 cu m. 

Chemoil is currently using its 

share of the existing 49,000 cu m 

GPSChemoil terminal and 

leasing a further 60,000 cu m of 

capacity from Vopak while the 

phased construction of its 

terminal continues. 

It is estimated that by the end 

of the fourth quarter of this year, 

the third phase of expansion will 

be completed to provide a total 

capacity of 94,000 cu m. Revised 

plans for the fourth phase of 

construction aim to further 

augment its original proposal by 

using land leased from the Port of 

Fujairah to extend the facility by 

an additional 500,000 to 600,000 

cu m. Some of the tanks could be 

ready as early as mid-2009. The 

company is also exploring other 

options to further expand its local 

capacity beyond 2010, should 

market conditions necessitate it, 

the company said. 

Anand said: "As the strong 

demand for land-based storage 

continues in Fujairah, Chemoil is 

aiming to nearly double the 

terminal's capacity from what was 

originally intended. Through 

working in co-operation with our 

partner, GPS, Chemoil will 

strengthen its physical 

infrastructure through a phased 

approach of construction to 

underpin our operations inline 

with our intended regional market 

growth. By controlling the facility 

we will also be able to generate 

additional income from leasing 

storage to third parties if there is 

surplus capacity." 

The company was due to 

commence marine fuel deliveries 

by mid-March. 

Saif Alsalami, director of 

Fujairah National Group/Gulf 

Petroleum Supplies, commented 

on the expansion plans: "Chemoil 

has a sound strategy for ensuring 

that its plans in Fujairah are 

central to its global offering and 

we look forward to working with 

them to realise the potential 

within this market. Through our 

partnership we will increase our 

asset base and recognise 

increased efficiencies and cost 

benefits from our investment." 

48 


Are you tired of the same choices in Fujairah? 

Beginning early 2008, Chemoil will offer a better option. 

One company. One supply chain. A name you know. 

Finally an alternative supplier for the world’s third largest bunker port. 

Chemoil proudly introduces service in Fujairah. Beginning with the GPS-Chemoil terminal, every 

step of the supply chain is controlled by the company you know. Now you can experience a level of 

consistency, flexibility and choice never before seen in the region. The Chemoil marketing team is 

on call with competitive quotes, twenty-four hours a day, seven days a week. And when you inquire 

for a bunker quote—you get it immediately. Call Chemoil and bunker with confidence. 

chemoil.com 

USA | SAN FRANCISCO tel 1.415.268.2740 email market@chemoil.com | LATIN AMERICA | PANAMA tel 507.265.5070 email panmarketing@chemoil.com 

EUROPE | ROTTERDAM tel 31.10.292.9933 email eumarketing@chemoil.com | MONACO tel 33.61.501.5634 email eumarketing@chemoil.com 

ASIA | SINGAPORE tel 65.6536.3974 email spmarketing@chemoil.com |FUJAIRAHtel 971.4.282.9912 email fjmarketing@chemoil.com | SOUTH KOREA 

tel 82.2.722.6560 email krmarketing@chemoil.com | TAIWAN tel 886.2.2735.7591 email twmarketing@chemoil.com 

LOS ANGELES | HOUSTON | GULF OF MEXICO | NEW YORK | PANAMA | ANTWERP | ROTTERDAM | FUJAIRAH | SINGAPORE

closed gauging 

The HERMetic 

UTImeter Gtex is a 

portable electronic 

level gauge for closed 

gas tight operation 

resulting in increased 

safety and efficiency. 

The unit is used for custody transfer, 

inventory control measurement and 

free water detection on marine vessels. 

Connected to a HERMetic vapour control 

valve, the UTImeter Gtex avoids 

any gas release during operation and 

enables 3, optionally 4 measurements 

in one single operation, Ullage, 

Temperature, Oil-water interface level 

and Innage. By increasing safety and 

efficiency, Honeywell Enraf Tanksystem 

helps customers improve business 

performance. 

For more information visit our website 

www.tanksystem.com or call +41 26 919 15 00 

© 2008 Honeywell International, Inc. All rights reserved 


From its operations hub in 

Fujairah, one of the world's top 

three bunkering ports with annual 

volumes of 12 mill tonnes, 

Chemoil claimed that it was now 

positioned to service customers 

throughout the Middle East and 

surrounding regions while 

strengthening the company's global 

reach. Tanker operators will benefit 

from the strategic advantage of 

using the same supplier in both the 

Gulf of Mexico and Fujairah. 

Michael Bandy, Chemoil's new 

chairman and ceo said: "Chemoil 

has an ambitious yet realistic aim 

to seize a sizeable share of the 

marine fuels market in Fujairah 

and we will use this as a centre 

for growing our trading 

operations throughout the Middle 

East. As a dedicated marine fuels 

supplier that offers the benefits of 

an unparalleled global network 

with physical control over the 

supply chain, we can offer the 

regional bunker market the 

highest standards in fuel quality 

and reliable deliveries. 

"Our expansion plans for the 

GPSChemoil terminal supersede 

our previous storage 

developments and demonstrate 

our long-term commitment to the 

market. This also reinforces 

Chemoil's business strategy of 

converting operational overheads 

into strategic assets as we enter 

new, high volume markets." 

Chemoil Middle East is headed 

by Irfan Khan, while the 

GPSChemoil terminal operations 

are managed by Francis Khoo. 

Chemoil's philosophy is to 

control all key stages of the 

marine fuel supply chain, 

maximising profitability by 

converting expenses to assets - 

acquiring, developing and 

controlling physical infrastructure 

within the supply chain. 

It has integrated operations in 

Los Angeles, New York, Houston, 

Singapore, Panama, UAE and the 

ARA region (Antwerp, Rotterdam 

and Amsterdam). Chemoil was 

listed on the Main Board of 

Singapore Exchange Securities 

Trading Limited (SGX-ST) on 

14th December, 2006. 

More tanks in the pipeline. 

Elsewhere, to strengthen its 

board of directors, marine fuels 

and lubricants industry veteran 

Peter Meade has been appointed 

as independent director. 

Meade is currently chairman 

and independent director of 

OceanConnect Holdings a 

worldwide supplier and brokerage 

spanning marine fuel, gas oil, 

clean products, biofuel and risk 

management services. 

OceanConnect was started as an 

online trading platform for marine 

fuels by BP, Shell and 

ChevronTexaco, as well as major 

global shipping and trading 

companies. Presently, Chemoil has 

a shareholding in OceanConnect 

and its late founder Chandran 

served on OceanConnect's board 

from 2000 to 2006. 

"I relish the prospect of 

working with Chemoil's board of 

directors and senior management 

team to help drive the company's 

future expansion, profitability and 

market share", said Meade. 

Notable achievements within 

Meade's career history include 

leading the successful merger of 

fiscal operations for Chevron and 

Texaco's marine fuel trading 

platforms to create FAMM. Other 

positions included his role as 

assistant general manager of 

Texaco's Marine Lubricant group 

and director of cash management 

for the same company. 

TO 


TECHNOLOGY – ICE RESEARCH 

Gas tankers face 

major problems in 

Polar regions 

BMT Fleet Technology (BMTFT) is currently working with South Korean shipbuilder 

Hyundai and class society ABS on various problems thrown up by the operation of 

LNGCs in ice conditions, particularly static and dynamic loads. 

BMTFT vice president 

Andrew Kendrick 

noted that there are 

many challenging 

questions to be answered. "You 

will always find ice that can 

smash a ship," he said, explaining 

that ice class rules were nothing 

like open water rules. 

He said that for LNGCs 

operating in ice, there are two 

dramatic effects to consider; 

*Size. There is no real 

experience in operating large 

ships in ice conditions. The last 

major experiment was with the 

tanker Manhattan, which was 

converted to operate in the 

Northwest Passage during the late 

1960s. 

*Speed. The average speed of 

a large ship in thick ice is only 

about three knots and in moderate 

ice, about six to seven knots. 

LNGCs are so expensive that 

they will need to travel much 

faster, Kendrick thought. "The 

kinetic energies will be more than 

we have experienced before", he 

said. 

Then there is what he called 

the "quasi-static" problem, which 

is when a ship comes to an abrupt 

halt, such as hitting a wall of ice, 

The last major Northwest Passage experiment was with the Manhattan. 

or when the ship suddenly moves 

sideways quickly under the 

weight of ice. "These are 

additional questions", he said. 

‘Crashworthy’ 

In general, most types of vessels 

built to the new IACS polar class 

rules will be what BMT calls 

'crashworthy', where even most 

accidental events should not 

penetrate the vessel's skin. 

However, gas containment 

systems "….don't like being 

dented. A crashworthy LNGC is 

totally different", Kendrick said. 

The effects of ice interaction for 

both the membrane and the Moss 

containment types are being 

examined. 

Sloshing effects need to be 

simulated for periods of high 

acceleration and de-acceleration, 

although open water resonant 

issues may be more significant 

for sloshing. Other dynamic 

behaviours in ice, including 

fatigue issues excited by 

icebreaking and propulsor ice 

milling are also being examined. 

"We have to look at things 

slightly differently and the project 

team are looking at what the 

loads will be, doing risk 

assessment of the types of 

hazards and developing practical 

shipbuilding solutions" he said. 

Shipyards tend to stick with the 

current class society rules when 

designing and building a ship, but 

BMT has found that its current 

partners are very enthusiastic 

coming up with both questions 

and answers. There are ongoing 

presentations of various stages of 

the work involved, including a 

joint paper given at April's St 

Petersburg Arctic shipping 

meeting. 

Tank testing will not happen 

until the project's next phase. 

Here one challenge is the need 

to scale ice crushing strength in 

order to explore loads. Ice 

model tests normally focus on 

resistance and propulsion, which 

obey different scaling laws. "We 

need to look at some of the 


TECHNOLOGY – ICE RESEARCH 

strengths again, and explore 

the use of materials such as 

wax rather than saline ice", 

Kendrick said. 

In the Baltic, ice class ships 

only operate in severe conditions 

for a maximum of two to three 

months per year. In the Arctic, 

this could be for eight to 10 

months of the year, which is 

much more demanding on both 

vessel and seafarer. 

IACS URs 

The IACS Unified Requirements 

(URs) for Polar ships have been 

published and BMT is also 

working with the Canadian 

government to revise its 

regulatory system for vessels 

working in ice, which will govern 

future traffic flows in the 

Northwest Passage. 

The URs incorporate a great 

deal of input from Canadian and 

Russian experts, and the US 

Coast Guard has also been 

helpful, Kendrick said. A lot of 

scientific data has been made 

available, which was collected 

during the 'oil rush' of the 1970s 

and 1980s by the oil majors, 

much of which has been lying 

dormant for some time as 

investment in northern waters has 

never really taken off. He said 

that obviously the Russians have 

a lot of theoretical and service 

experience, but rather less 

experimental data. He also said 

that BMT had worked closely 

with the Russians on the models 

underlying the URs. 

The work was far from an 

easy challenge and some class 

societies differed from each 

other in their approach to the 

problem. There are still many 

“ 

unanswered questions and work 

is underway to address some 

of these in future revisions to 

the URs. 

A longer term programme 

sponsored by BMT includes postgraduate 

work at St John's, 

Newfoundland University, which 

is researching into the effect of 

ice on both ships and offshore 

structures. 

A lot of gas was discovered in 

the Canadian and US northern 

waters during the 1970s and 

1980s, but due to the price of oil 

and gas, the technology was still 

waiting to be developed. "The 

Arctic Pilot project for bringing 

gas through the Northwest 

Passage is being dusted off and 

looked at again," Kendrick 

explained. The Northwest 

Passage comes under Canadian 

sovereignty, but much of the 

icebreaking capability available 

from the Canadian Coast Guard 

is now getting old. Another 

major issue for Arctic 

development is putting the 

infrastructure in place in harsh 

conditions. Heavy lift transport 

will become necessary. The 

shortage of both government and 

private sector icebreaking 

capacity is becoming critical to 

the planning of many projects. 

As for Russian gas 

developments, Kendrick 

described Shtokman ice as "not 

too bad", but the Yamal 

Peninsular ice was "very 

challenging". The current 

routes from southern Sakhalin 

are relatively easy, but future 

developments further north may 

be much more difficult. He 

described the Labrador coast as 

"iceberg ally", fed by Greenland 

LNGC routes could open up between Murmansk and the St Lawrence. 

and the Canadian island 

glaciers. In the Northwest 

Passage, much multi-year ice is 

found, thicker and harder than 

first year ice. This also 

increases operational risk. 

Shipping routes 

Gas carrier shipping routes are 

being explored for many areas 

with harsh conditions. These 

include the Murmansk region to 

the St Lawrence River, with the 

gas potentially coming from 

Shtokman and other northern 

Russian projects. The gas could 

go straight into the North 

American grid via the various 

pipelines from Canada to the US. 

One of the questions that will be 

raised is - "do we pipe it, or ship 

it?" he said referring to the 

Canadian gas pipelines. 

Emergency response, ice 

“There is not enough ice expertise available 

today to support all these projects...It is crucial 

to tap into that knowledge gained from the first 

‘ice age’ and from other historical experiences”. 

Andrew Kendrick, BMTFT vice president 

” 

management, infrastructure 

placement are all projects to be 

tackled in the medium term. 

However, in the next 10 years or 

so, there will be a new 'ice age' 

for ships and offshore structures, 

following the first in the 1970s 

and 1980s. 

"There is not enough ice 

expertise available today to 

support all these projects," 

Kendrick warned. "It is crucial to 

tap into that knowledge gained 

from the first 'ice age' and from 

other historical experiences," he 

said. At the same time, it is 

always necessary to explore how 

new technologies can change the 

rules of the game. 

He gave an example of the 

'spoon bow', which was 

conceived in the 1890s but could 

not be used effectively until the 

late 1970s, partly because 

coatings could not provide the 

necessary low friction between 

the ship, ice and snow. "The 

paint wouldn't stick to the sides 

(of the ship)," he said. "The 

same thing could be said of 

using the propulsors to help 

break the ice. People used bow 

propellers for years," he 

concluded, "but azimuthing 

thrusters now provide a much 

more flexible solution". 

TO 

52 


TECHNOLOGY - EMISSIONS 

Doubling the cost 

of fuel would 

cause chaos 

(Part B - Compliance with MARPOL Annex VI) 

Extra costs of distillates could cripple shipping* 

Multi-challenged 

world stability, 

and particularly 

the European 

economy, would be jeopardised in 

the event that the cost of 

transporting goods by sea (up to 

90% of world's total) increases by 

between 40-60%. 

This would occur should ships' 

diesel engines be converted to 

burn twice as expensive distillate 

fuels, instead of using the 

scrubbers system EcoSilencer® 

with today's fuels. 

The time margins are minimal 

for preventing the destruction of 

our planet by choking it with 

enormous carbon dioxide (CO2) 

emissions from the distillation of 

fuels, and/or by triggering an 

imminent 'World War III' because 

of uncontrolled, soaring living 

costs, which would inevitably 

follow the unfortunate doubling 

of ships' fuel costs. 

With peak fuel production in 

2010, shipping should be better 

prepared to deal with dramatic 

supply fluctuations and price 

increases, which require more 

careful long-term planning 

compliance with MARPOL 

Annex VI, including the scrubber 

system. 

The extra cost of a hypothetical 

operation of 50,000 ships with an 

average consumption of 10,000 

tonnes per ship annually of 

distillate fuels, is calculated at an 

average minimum additional 

amount of $3 mill given the 

current premium of distillate fuels 

at $300 per tonne. To this must be 

added about $800,000 for extra 

engine maintenance repairs, due to 

lack of sufficient sulphur in the 

distillate fuels and poor lubrication 

(see TANKEROperator, March, 

page 34). 

Added to this should be the 

refineries' extra earnings for 

amortising their additional new 

installations needed to produce 

the 360 mill tonnes that would be 

required annually - should there 

be a generalised use of distillate 

fuels agreed - plus their earnings 

for a periodical renewal of those 

installations within certain 

periods of time. 

The total additional amount - 

spread over 40 years, which is the 

approximate time for completion 

of refinery installations to 

produce the distillate annually - is 

estimated to be three times the 

amortisation cost per tonne. 

The amortisation cost is 

estimated at $14 per tonne X 3 = 

$42, to be added to the premium 

per tonne of distillate fuels, for 

example $300, with an extra cost 

per ship, per year of: $342 X 

10,000 tonnes = $3,420,000 + 

$800,000 = $4,220,000. This is in 

addition to the current annual 

operating cost per ship. 

This amount would far exceed 

the cost of an EcoSilencer®, 

which would last the entire life of 

a ship with only minor 

operational expenses, in full 

compliance with MARPOL 

Annex VI. 

On the other hand, the extra 

yearly total cost of $211 bill for 

the operation of the estimated 

50,000 ships with distillate fuels, 

plus an unavoidable CO 2 

'Environmental Responsibility 

Tax' on shipping, would burden 

consumers to the tune of an extra 

40-60% for goods transported by 

sea. 

With the excuse that distillate 

fuels would be used by ships, it 

would be easy to tax them as a 

result of being responsible for the 

CO2 produced by the distillation 

processes, whereas the disastrous 

results would negatively impact 

The extra cost of a hypothetical operation of 

50,000 ships with an average consumption of 

10,000 tonnes per ship annually of distillate fuels, 

is calculated at an average minimum additional 

amount of $3 mill given the current premium 

of distillate fuels at $300 per tonne. 

“ 

” 

consumers and the environment - 

not to mention the hypothetical 

extra per cent of such a taxation. 

One could easily imagine the 

consequences of the social and 

political unrest resulting from 

such an iniquitous burden on the 

cost of living due to the extra 

price of distillate fuels. In 

addition, the enormous 

accumulation of CO 2 from fuel 

distillation would radically 

reinforce the greenhouse effect, 

remaining for thousands of years 

and thus accelerating its 

catastrophic effects on the earth. 

Prudent shipowners, committee 


TECHNOLOGY - EMISSIONS 

It is improper for states to demand everything from 

ships with the excuse that they have cleaner electric 

power generation than land, given that power supply 

at ports from the shore would safeguard the health 

of people in nearby areas and would eliminate the 

cost and delays of unnecessary inspections. 

“ 

” 

members and legislators have the 

advantage - as long as they 

remain at the cross-roads of 

decisions - of correctly assessing 

the above global risks and 

consequences before their 

respected thoughts and decisions 

are mature enough to properly 

evaluate the advantages of 

abatement (scrubber) technology. 

There is no doubt that the IMO, 

under the inspired leadership of 

its capable secretary-general, will 

do the right thing once again by 

ratifying MARPOL Annex VI. 

Hopefully, other state 

committees, environmental 

protection agencies and 

legislators throughout the world 

will also make their respective 

decisions taking into account the 

undisputable sustainability of 

MARPOL Annex VI, so as to 

withstand the various industrial 

and political influences and 

pressures for unilateral decisions, 

and contribute to highlighting the 

environment and global economy 

as worldwide priorities. 

Rule changing would create 

misunderstanding and confusion 

for the maritime community, 

resulting in delays in the 

implementation MARPOL Annex 

VI, which would encourage 

opportunists, to the detriment of 

the environment and humanity as 

a whole. 

Instead of just adopting 

recommendations, a genuine 

demonstration of leadership and 

prompt environmental 

contribution by the legislators 

would be, for example, to 

convince all their member states 

to provide without delay 

alternative shore electricity 

facilities at their ports for visiting 

ships, which - for one reason or 

another - would not be able to use 

low sulphur fuels. One of the 

reasons is that with a very low 

saline seawater in ports - being 

mostly heavily polluted - this 

may not be sufficient to properly 

clean sulphur from ships 

emissions in some ports by 

scrubbers. 

No matter how long it takes 

and how costly it is to connect a 

shore power cable to a ship, this 

is worthwhile for the environment 

and people's health in the 

surrounding areas, even if ships 

stay in port for only half a day. It 

is as easy as connecting a fuel or 

water supply hose. 

It costs very little for a ship to 

provide a shore power plug 

connector, a simple or automatic 

switch breaker and a regular UPS, 

which already exist on ships, for 

the temporary protection of 

computers during the change of 

the power from one supply source 

to the other. 

Cold Ironing is included in the 

six mandates under the California 

Global Warning Solutions Act of 

2006, (recently increased to nine). 

They already exist in Gothenburg 

and the major US western ports. 

Shore electric power 

connections were available in the 

main US ports for the 'Liberties' 

and 'T2' tankers during World 

War II, and have been used since. 

It is improper for states to 

demand everything from ships 

with the excuse that they have 

cleaner electric power generation 

than land, given that power 

supply at ports from the shore 

would safeguard the health of 

people in nearby areas and would 

eliminate the cost and delays of 

unnecessary inspections. It would 

also ease the difficulty for ships' 

crews, keeping generators in 

operation while in port. 

The ever-increasing enquiries 

for EcoSilencer® scrubbing 

technology by progressive 

shipowners worldwide, as well as 

the willing co-operation of Asian 

shipyards to incorporate 

EcoSilencer® into their current 

designs for new ships, are quite 

remarkable. 

As a result of the anticipated 

George S. Kaminis 

extensions of SECA territories 

worldwide, it is estimated that 

there will be a minimum of 

30,000 ships equipped with 

emission cleaning scrubbers by 

2018. 

At present, and until MARPOL 

Annex VI is ratified this month 

and finalised by autumn 2008, it 

will be more convenient and 

eventually cheaper for 

shipowners if they provide for the 

scrubber emission cleaning 

system's installation during 

design approval for their 

newbuilding projects. 

For retrofits, pre-engineering 

by us on the ships could facilitate 

the readiness of prefabricated and 

pre-fitted systems to be installed 

during a next drydocking. 

*This is the sixth in the 

series of articles written 

by George S Kaminis. 

54 


INTERTANKO ISTANBUL EVENT PREVIEW 

Tanker industry 

heads for Istanbul 

Turkey has built up a 

considerable interest 

in shipping during the 

past 20 years, both in 

owning ships and in shipbuilding. 

Since the authorities moved the 

shipbuilding facilities from the 

centre of the city to Tuzla, the 

shipbuilding and repair industry 

has not looked back. 

In addition, the narrow 

Bosporus Strait that bisects the 

city is a conduit for million on 

tonnes of Russian oil exports, 

normally carried on Aframaxes 

and Suezmaxes. Added to this 

are numerous product, chemical 

and LPG tankers transiting the 

Bosporus to and from the 

various countries bordering the 

Black Sea. 

The Intertanko Event is now an 

established forum at which the 

executive committee holds 

meetings and seminars are 

arranged on a host of subjects. 

A full four-day programme, 

running from Sunday 20th April 

to Wednesday 23rd April, has 

been put together, which will 

include various focus sessions 

covering important issues faced 

by the tanker industry today, plus 

Istanbul - where Europe meets Asia - 

is the setting for this year’s 

Intertanko annual Tanker Event. 

a oil and tanker markets session. 

The Event will take place in the 

lush surroundings of the 

Swissotel, located in the Besiktas 

district of the city. 

Also included will be 

discussions on new initiatives and 

commitments to the Poseidon 

Challenge, plus a follow up on 

specific commitments made in 

2007. 

To facilitate the smooth 

running of the Istanbul Event, an 

advisory group was set up led by 

Suay Umut, president of Dunya 

Denizcilik Ve Ticaret who is a 

member of Intertanko's executive 

committee. 

Other advisors include Brad 

Berman, president Liberian 

International Ship & Corporate 

Registry and chairman of 

Intertanko's associate members' 

committee; Sergey Burima, 

general manager of Sovcomflot 

and a member of the associate 

committee and Turgut Guneri, 

vice chairman of the Zihni Group 

and also an associate member of 

Intertanko. 

Umut said: "Turkey has 

experienced major developments 

and has a well-established 

shipping industry offering many 

possibilities and a professional 

business environment. We are 

very pleased to have the 

Intertanko Tanker Event 2008 in 

Turkey and welcome the shipping 

world to Istanbul." 

The Event kicks off on Sunday 

20th April with a golf tournament 

followed by a Bosporus tour and 

Intertanko Associate Members' 

open hour. A meeting of the 

human element committee also 

takes place and to round off the 

day a welcome reception is being 

held, sponsored by Teekay. 

On Monday, the formal 

Intertanko committee meetings 

take place and the general focus 

sessions are scheduled. Four 

focus sessions are planned for 

Monday, covering chemical 

shipping, shipbuilding, European 

competition law and vetting and 

human element in shipping. An 

informal dinner closes the day's 

sessions. 

On Tuesday, there will be a 

special focus session on air 

emissions, followed by a debate 

on the state of the industry. In the 

afternoon, the Poseidon 

Challenge takes the stage along 

with the now annual Poseidon 

Challenge awards. Running 

parallel, there is a whole day 

session on chartering. The 

evening rounds off with the 

Annual Gala Dinner. 

Wednesday sees the 

continuation of the Poseidon 

Challenge, followed by an oil 

and markets session and the 

closing dinner. 

A small exhibition area will be 

set up in the foyer of the hotel, 

consisting of around 16 stands. 

Partners need not feel left out 

as a three-day special 

programme has been put together 

taking in the sights of Istanbul 

and its surrounds, which today 

is a cosmopolitan city steeped 

in history. 

TO 

 


INTERTANKO ISTANBUL EVENT PREVIEW 

Programme 

Sunday April 20th 

Morning: 

Golf tournament 

Afternoon: 

Bosporus tour 

Associate members' open hour 

1600-1800: 

Human Element Committee 

meeting* 

Evening: 

Welcome reception 

Monday 21st April 

07.30-09.45 

Executive Committee meeting* 

07.45-08.45 

Associate Members' Committee 

meeting* 

10.00-16.00 

Intertanko Council meeting* 

09.00-17.30 

Focus Sessions: 

Chemical Shipping (speakers to 

be confirmed) 

Shipbuilders 

Dirk Lindenau, Lindenau GmbH 

Dave Iwamoto, chairman of the 

committee of expertise of 

shipbuilding specifics (CESS) 

Dr Christian Cabos, Germanische 

Lloyd 

(more speakers to be confirmed) 

European Competition Law 

Compliance 

Matthew Levit, Lovells 

Vetting and Human Element in 

Shipping 

(speakers to be confirmed) 

Evening: 

Informal Dinner 

Tuesday 22nd April 

09.00-16.00 

Special focus session on Air 

Emissions 

10.00-12.30 

State of the Industry 

Chairman: Nicholas Fistes, 

Intertanko chairman 

His Excellency Binali Yildirim, 

Turkish Minister of Transport 

Metin Kalkavan, chairman, 

Turkish Chamber of Shipping 

Suay Umut, president, Dunya 

Denizcilik Ve Ticaret 

Capt Tuncay Cehreli, general 

director, Turkish Straits Vessel 

Traffic Service (VTS) 

Mohammad Souri, chairman, 

NITC. 


12.30-17.00 

Poseidon Challenge and Award 

Chairman: Stephen Van Dyck, 

chairman Poseidon Challenge 

Tor Svensen, chairman IACS 

Willem De Ruiter, executive 

director, EMSA 

Roger Holt, secretary general, 

Intercargo 

Dave Iwamoto, chairman CESS 

Mohammad Souri, chairman, 

NITC 

Emmanuel Vordonnis, vice 

chairman, Poseidon Challenge 


17,00-17.30 

Intertanko Annual General 

Meeting* 

Evening: 

Annual Gala Dinner 

Wednesday 23rd 

April 

09.00-11.30 

Poseidon Challenge (continued) 

Chairman: Stephen Van Dyck 

Emmanuel Vordonnis, vice 

chairman, Poseidon Challenge 

Jens Rolfsen, senior consultant, 

DNV Solutions 

Capt Peter Swift, general manager, 

Maritime Industry Foundation 

Prof S Aydin Salci, dean, Istanbul 

Technical University -Maritime 

Faculty 

11.45-17.00 

Oil and Tanker Markets 

Chairman: Herbjorn Hansen, 

chairman and ceo Nordic 

American Tanker Shipping 

Erik Andersen, research director, 

RS Platou 

Henry Curra, head of research, 

ACM Shipping 

Geir Olafsen, head of research, 

Inge Steensland 

Capt Kjell Landin, marine 

manager, EBU M&T, Chevron 

David Martin, oil market analyst, 

International Energy Agency 

(IEA) 

Erik Ranheim, research manager, 

Intertanko 

David Saginaw, commercial 

director, McQuilling Services 


12.30-17.00 

Documentary Committee 

meeting* 

Evening: 

Closing dinner 

*Intertanko committee 

members only 

Poseidon Challenge 

Tuesday afternoon’s 

debate surrounding 

the Poseidon 

Challenge will focus 

on the human 

element with new 

commitments, 

updates on previous 

commitments and 

others from the 

floor. 

The main speakers will 

include IACS chairman and 

DNV's Tor Svensen, EMSA's 

Willem De Ruiter, Intercargo 

chairman Nicky Pappadakis 

and Union of Greek 

Shipowners' chairman Nick 

Efthymiou. 

A workshop session will 

take place on Wednesday 

morning , which will focus 

on how people can get 

Poseidon 

Challenge/continuous 

improvement working within 

their companies. The main 

speakers will be DNV's Jens 

Rolfsen and Poseidon 

Challenge's vice chairman 

and Thenamaris' Emmanuel 

Vordonnis. 

The presentation of the 

Poseidon Challenge Award 

will take place on Tuesday 

evening before the Annual 

Dinner. Intertanko has 

received 15 nominations for 

the award, which were 

submitted to the judges. 

Sponsors 

Agemar 

American Bureau of 

Shipping (ABS) 

Brostrom 

Deniz Ticaret Odasi 

(Chamber of Shipping) 

Det Norske Veritas 

(DNV) 

Dunya Denizcilik ve 

Ticaret 

Geden Line 

Germanischer Lloyd 

(GL) 

Heidmar 

Korean Register (KR) 

Lloyd's Register (LR) 

Marshall Islands 

Registry 

Teekay 

Exhibitors 

Scanjet 

Lloyd's Register 

Emerson Process 

Management 

Videotel 

Q88.com 

Ship Equip 

Germanischer Lloyd 

Rutter Technologies 

Det Norske Veritas 

Honeywell Marine 

Solutions 

Ulysses Systems 

Teomaki 

Consilium 

UK P&I Club 

56 



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