Features: - Tanker Operator

TANKEROperator 

JUNE 2008 

www.tankeroperator.com 

Features: 

 

 

 

 

 

 

Greeks command respect 

Posidonia- biggest ever 

Innovative product tanker 

Special survey for special VLCC 

Emissions - hot air? 

Salvage concerns expressed

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Vol 7 No 7 

Tanker Operator 

Magazine Ltd 

213 Marsh Wall 

London E14 9FJ, UK 


PUBLISHER/EVENTS/ 

SUBSCRIPTIONS 

Karl Jeffery 

Tel: +44 (0)20 7510 4935 

jeffery@thedigitalship.com 

Contents 

04 

05 

Markets 

Supply or demand? 

News 

Industry news 

EDITOR 

Ian Cochran 

Tel: +44 (0)20 7510 4933 

cochran@tankeroperator.com 

ADVERTISING SALES 

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Only Media Ltd 

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13 

Greek Shipping Review 

A changing profile 

Continuous improvement 

Looking to the future 

Directory 

Posidonia Preview 

37 

Technology 

37 Ship description 

Innovative product tanker 

delivered 

Marinvest profile 

Brodosplit faces uncertain 

future 

50 Shiprepair & Maintenance 

VLCC goes through survey 

UMC expands empire 

59 Emissions 

Intertanko's view 

ICS view 

62 Emergency Response 

ISU sets its stall out 

Printed by FISCHER Poligrafia 

ul. Dabrówki 10 

40-081 Katowice 

Poland 

Front cover photo 

Neda Maritime's VLCC 

Arosa recently went through 

her third special survey. Her 

claim to fame is that she 

was the world's first double 

hull VLCC when delivered 

in 1993 (see page 50). Photo credit - 

Neda Maritime/LR. 

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June 2008 TANKEROperator 01

COMMENT 

Greeks in for the Marathon haul 

We called our Greek Shipping Review - 'The Winds 

of Change'. This particular wind has been building 

up for a few years and has almost reached 

hurricane proportions. 

Although Greek shipping entrepreneurs were around well before the 

Second World War, it was not until the likes of Niarchos and Onassis 

got hold of surplus US 'Liberty' ships and 'T2' type tankers given to the 

Greeks as War reparations in the late 1940s and early 1950s, did we see 

Greek shipping really take off. 

Niarchos and Onassis vied with each other to build ever larger 

tankers in the mid 1950s, when a 47,000 dwt vessel was considered to 

be the largest in the world. Of course, these were soon surpassed by 

Ludwig's 85,000 dwt 'monsters' and again by the Japanese who 

introduced the first VLCC - 'Idemitsu Maru' in 1966. 

By the 1970s, everybody in the tanker business was into ULCCs and 

there was even a million tonne deadweight design on the drawing 

board. Then along came the shipping recession and the Iraq/Iran war. 

Many tankers found solace in Norwegian fjords and several were 

sold for scrap only being around 10 years of age. There were even 

unconfirmed rumours of tankers leaving a newbuilding yard and sailing 

directly into the scrapyard. 

What the dark 1970s and 1980s achieved was to weed out some of 

the weaker owners and operators with large fleets, such as Colocotronis 

and later Adriatic Tankers. However, most of the independents 

soldiered on and managed to survive, but in the process gained a 

certain reputation for cutting corners, thus saving money. 

In the meantime, some of the leading Greeks, such as Livanos, 

Niarchos, Onassis and others have since passed away, but their empires 

remained and are still active to this day. 

The original entrepreneurs were joined by several retiring sea 

captains, who managed to negotiate loans from banks to buy a bulk 

carrier and/or tanker and so start the next generation, or Greek shipping 

dynasty - Nikos Vafias being an example. 

Vafias started Brave Maritime in the mid 1980s with just one bulk 

carrier and today the group manages bulk carriers, tankers and gas 

carriers under the Brave Maritime, Stealth Maritime and StealthGas 

banners. There are many more. 

Today, these 1980s-1990s Greek entrepreneurs are in their late 60s 

and 70s and by and large are still going strong. However, unlike their 

predecessors whose offspring opted for the jet setting lifestyle, the 

newer breed sent their children to business schools, universities and 

academies. 

If they were destined to follow in father's footsteps, they were often 

seconded to overseas broking houses and shipping companies to learn 

the business at the sharp end, once they had completed their education. 

Now in their late 20s and 30s, these highly educated younger shipping 

executives have bought new ideas to the table. They have embraced the 

world of stock exchange listings, futures markets without losing the 

Greek mantra - 'buy when the market is low-and sell when it is high'. 

Today, senior Greeks hold leading positions in most of the worldwide 

major shipping organisations and they have totally embraced the quality 

and safety regime that has been building up at international level since 

the Erika and Prestige sinkings. Greece is now a member of the EU, so 

its shipping fraternity has had to adhere to a new set of rules and 

regulations. 

They also control the world's largest percentage of shipping, either 

directly or indirectly, not necessarily from Greece, but also from the UK 

and the US, although due to current tax and economic reasons, we could 

see Greeks returning to their homeland. 

For many years, when visiting Greek shipowners, one only had to 

walk the length of Akti Miaouli along the Piraeus waterfront to see the 

majority of Greek shipping concerns. However, today they are spread 

out all over Athens and its surrounds and many are housed in swish new 

offices in the suburbs. 

Since about 2002, shipping has proved to be a lucrative industry in 

which to be involved and, at the time of writing, with large bulkers 

fetching $200,000 per day and tankers $150,000 per pay plus, the 

Greeks do not appear to have stopped their massive ordering spree. 

As of February this year, the Greek controlled fleet stood at nearly 

4,200 vessels of 261 mill dwt. A further 1,050 vessels of 86 mill dwt 

were under construction, or on order (see page 14). The age of the fleet 

has become progressively younger and with almost 25% of the current 

fleet on order, this progression is set to continue. 

There are obviously a few blips on the horizon, such as the banking 

crisis, high orderbook and perhaps an over reliance on the future of the 

BRIC countries (Brazil, Russia, India and China). But the Greeks have 

seen all this before and in the main survived to come back even stronger 

than ever. 

This year's Posidonia event will give the world an idea of where the 

shipping barometer sits today - almost full? 

TO 


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02 

TANKEROperator June 2008

INDUSTRY - MARKETS 

Supply driving demand 

At any given time there are a 

considerable number of factors 

impacting the market behaviour 

pattern. Most can be attributed to 

either the supply or demand side of the 

equation. 

Historically, tanker supply and demand 

interaction has shown a high correlation to the 

freight rates in the clean and dirty sectors. 

Therefore, using historical trends as a 

guideline, we can identify certain market 

elements that, conspired together, effect 

today's marketplace, said leading US 

consultancy McQuilling. 

Currently, crude and dirty product spot 

earnings are unusually high for this time of 

year - that is the second quarter. When 

assessing the market, McQuilling formed the 

opinion that this was down to the supply side 

of the equation, rather than the demand side. 

Even though instincts will dictate that the 

reason for market spikes lies in increased 

demand, this may not be always the case. In 

Tanker market behaviour is 

an interaction between 

supply and demand 

fundamentals. 

fact, McQuilling said that it believed that oil 

demand may be down by 500,000 barrels per 

day from the consultant's January 

expectations. 

Bunker costs 

Conspiring together, multiple supply factors 

have placed the supply side in deficit 

compared with the demand figures. Recent 

high oil prices have caused the cost of bunkers 

to increase. For example, the April average 

bunker prices were as high as $528 per tonne, 

prompting slower steaming whenever possible 

to reduce fuel consumption. 

McQuilling's deployment models show that 

one knot of speed reduction in the VLCC fleet 

absorbs between 10 and 20 vessels in the 

supply side. Therefore, at the present time, the 

consultant believed that the fleet slowdown 

was one of the factors contributing to the 

recent tightness in tonnage supply, which put 

upward pressure on rates. 

Furthermore, reported increased delays in 

vessel loading and discharging activities also 

absorbed additional tonnage. The model 

showed that one incremental delay across the 

fleet resulted in the removal of tonnage supply 

equivalent to 10 VLCCs, 11 Suezmaxes, 23 

Aframaxes and seven Panamaxes. 

Delays caused by insufficient storage space 

on shore, port and terminal strikes, or cargo 

timing issues, plus other reasons, all add up to 

be another element constraining tanker supply. 

Another factor is the record number of 

conversion projects which are expected to be 

firmed up this year. McQuilling estimated that 

by the middle of May, 15 VLCCs had left the 

fleet for various conversion projects since the 

beginning of the year, while another three 

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04 


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INDUSTRY - MARKETS 

NITC has taken several 

VLCCs out of the market 

for storage purposes. 

were sold for scrap. The number of vessels 

leaving a sector obviously puts constraints on 

supply and as a result put upward pressure 

on rates. 

Storage 

The Iranians have also been using large 

tankers for crude oil storage in the Persian 

Gulf. Again, McQuilling estimated that around 

15 vessels of between one million and two 

million barrel capacity will be used for storage 

purposes with as much as 25 mill barrels on 

board. This also reduces supply in the short 

term, much the same as port delays as these 

were trading vessels. 

The Hebei Spirit incident also impacted the 

market as the deployment of single hull tanker 

became more difficult overnight. In addition 

to certain charterers that will not touch single 

hull vessels, others will opt for double hulls if 

the rates are favourable. 

Coupled with trading restrictions, the 

deployment of VLCCs is increasingly 

inefficient, McQuilling said. As in general a 

more compartmentalised trading scheme is 

less efficient and requires more tonnage to 

accomplish than the case where every tanker 

can trade to every port required. This also 

adds to tonnage constraints. 

While it is recognised that tonnage demand 

plays a major role in the rate behaviour pattern, 

McQuilling said that it didn't think that demand 

was driving the present market levels. The 

consultant said that the various factors listed on 

the supply side were conspiring together to 

cause a significant reduction in the availability 

of tonnage in the world's loading regions. They 

were the reasons for the historically high rates 

seen recently. 

 

06 


Concordia concludes P-MAX 

timecharter contracts 

Concordia Maritime recently 

signed timecharter contracts for 

three P-MAX newbuildings. 

The three year timecharter agreement was 

with ST Shipping and Transport, a subsidiary 

of Glencore and will kick in once the vessels 

are delivered from Brodosplit shipyard. 

In total, Concordia´s P-MAX fleet will 

consist of 10 vessels, of which six have been 

delivered and the four remaining will be 

handed over in 2009 and 2010. 

With the conclusion of the latest three 

contracts the entire fleet will be committed to 

timecharter contracts. ST Shipping and 

Transport is the shipping arm of Glencore, one 

of the world´s largest oil and other commodity 

traders. 

"We are very pleased to have concluded this 

transaction with ST Shipping and Transport. 

They have a large shipping operation and we 

view them as being an innovative and solid 

provider of oil transportation - a good and 

interesting customer for long term business" 

said Concordia Maritime president Hans 

Norén. 

"Since the sale of the V-MAX vessels in 

2004, we have had a solid and strong financial 

INDUSTRY - NEWS 

position, which is further strengthened by this 

transaction. The purpose of securing the 

vessels in our new building programme on 

long term charters is twofold. Steady and solid 

cash flows of course but it also helps us in our 

efforts to develop a deeper customer 

relationship, such as with ST Shipping. 

Another example is the oil- and energy major 

TOTAL which has four of our P-MAX on 

long term contracts" said financial manager 

Göran Hermansson. 

"These contracts mean that Concordia 

Maritime will have yet more stability and 

ability. 

Stability in terms of a really good solid 

financial base with steady cash flows and a 

strong balance sheet and ability to react and 

act swiftly when it comes to business 

opportunities and the further growth and 

development of the company. This is 

particularly relevant for the next couple of 

years when we believe the market will be 

weak", concluded Norén. 

The company said that the latest transaction 

would not affect the 2008 results, as out of the 

three vessels, one will be delivered in 2009 

and the other two in 2010. 

 

The Stena P-MAX Stena Primorsk seen leaving Stockholm following her naming 

ceremony in 2006. 



Frontline reveals all 

Reflecting a stronger spot market 

Frontline has announced that net 

income for the 1Q08 was $221 

mill, equivalent to earnings per 

share of $2.95. 

Operating income for the quarter was $235.4 

mill including a gain on sale of assets of $15.5 

mill. This gain included $17.1 mill relating to 

the termination of the lease for the Front Maple. 

The average daily time charter equivalents 

(TCEs) earned in the spot and period market 

in the first quarter by the company's VLCCs, 

Suezmax tankers and Suezmax OBO carriers 

were $82,400, $51,600 and $43,200 per day 

respectively, compared with $45,700, $33,100 

and $42,400 per day respectively in the fourth 

quarter of 2007. 

These results also showed a continued 

differential in earnings between single and 

double hull tonnage. For example, the spot 

earnings for the double hull VLCCs and 

Suezmaxes were $104,700 and $53,700 per 

day in the first quarter, compared to $43,600 

and $37,500 per day in 4Q07. 

A profit share expense of $33.7 mill was 

recorded in the first quarter as a result of the 

profit sharing agreement with Ship Finance 

International compared to $16.1 mill in the 

fourth quarter. No profit share expenses were 

recorded in the first quarter of 2007 since Ship 

Finance was consolidated in that quarter. 

Charterhire expenses increased by $19.5 

mill in the first quarter compared with the 

4Q07 mainly as a consequence of chartering 

in six vessels from Nordic American Tankers 

under a floating rate timecharter agreement. 

These six vessels are also included in the 

results on a timecharter basis with $19.8 mill 

on about 450 trading days. 

Interest income was $10.9 mill in the first 

quarter, of which $7.5 mill related to restricted 

deposits held by subsidiaries reported in 

Independent Tankers Corp (ITCL). Interest 

expense, net of capitalised interest, was $47.9 

mill in the first quarter of which $13.6 mill 

relates to ITCL. 

Other financial items in the first quarter include 

an $18 mill gain on the spin-off of 17.53% of the 

company's shareholding in ITCL and a $3.5 mill 

gain on the forward contract to purchase shares in 

Overseas Shipholding Group (OSG). 

As of 31st March, 2008, Frontline had total 

cash and cash equivalents of $766.9 mill, 

which included $638.2 mill of restricted cash. 

Restricted cash included $414.6 mill relating 

to deposits in ITCL and $223.6 mill in 

Frontline Shipping and Frontline Shipping II, 

which were restricted under the charter 

agreements with Ship Finance. 

As of May 2008, the company had average 

total cash cost breakeven rates on a TCE basis 

for VLCCs and Suezmaxes of approximately 

$31,500 and $23,500 per day respectively. 

Fleet development 

In line with the strategy to reduce exposure to 

single hull tonnage, in the 1Q08 Frontline 

agreed with Ship Finance to terminate the long 

term charterparty between the companies for 

the single hull VLCC Front Sabang. Ship 

Finance simultaneously leased the vessel to an 

unrelated party. Frontline has received a 

compensation payment of approximately $24.6 

mill in the second quarter of 2008 for the early 

termination of the charterparty, which will be 

reported in the second quarter results. 

The single hull Suezmax Front Maple was 

sold in January 2008 by Ship Finance and the 

charter with Frontline terminated. Frontline 

gained around $17.1 mill related to the 

termination of the charter. 

The vessels Front Granite and Front Marble 

were delivered to Dockwise for conversion in 

February and March 2008, respectively. The third 

heavy lift vessel, Front Comor, converted by 

COSCO, was redelivered to Dockwise in May. 

In April, Frontline entered into a contract 

with Zhoushan Jinhaiwan Shipyard (Jinhaiwan) 

in China for the delivery of four 320,000 dwt 

VLCC newbuildings at a contract price of $135 

mill each and with attractive payment terms. 

The vessels are expected to be delivered in the 

second half of 2011. Frontline also announced 

that it had declared options for a further two 

similar VLCC newbuildings at a fixed price for 

delivery in the first half of 2012. 

Other Matters 

In February, Frontline spun off 17.53% of its 

holding in ITCL to Frontline shareholders, 

recording a gain of $18 mill in the first quarter 

as a result. 

The same month, Frontline agreed to invest 

$20 mill in NAVIG8 LIMITED (Navig8) 

against the issue of new share capital 

representing a 15.8% stake in the company. 

Navig8 controls about 30 tankers representing 

approximately 1.4 mill dwt, including 

newbuildings on order. Navig8 actively trades a 

timecharter fleet, owns and invests in tonnage, 

commercially and technically manages vessels 

for third parties and trades in the freightderivatives 

market. The investment should be 

considered as purely financial, but at the same 

time gave Frontline a foothold in the clean 

petroleum product market. 

In March, it was announced that Frontline 

and companies indirectly controlled by 

chairman and principal shareholder John 

Fredriksen, together held an aggregate of 

1,628,300 shares in OSG, or 5.3% of the total 

outstanding shares. In addition, Frontline also 

entered into a forward contract for another 

1,366,600 OSG shares, or an additional 4.4% 

of the total outstanding shares. 

On 20th May the company filed a Schedule 

13 D with the US Securities and Exchange 

Commission reporting that companies 

indirectly controlled by Fredriksen had 

reduced their holding in OSG to 244,900 

shares and that they together held an 

aggregate of 1,794,900 shares in OSG, 

corresponding to 5.2% ownership. 

In April, Frontline Management ceo Bjørn 

Sjaastad, informed the board of his 

resignation and he left the Company in the 

following month. The board has since started 

the recruitment process in order to find a new 

ceo for Frontline Management and expects 

that conclusion will be made at the end 

of August. 

 

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08 


Hellespont has strengthened its 

management team by promoting 

Spyros Vlassopoulos to director 

responsible for chartering and 

sale & purchase. 

Formerly managing director of Hellespont 

Hammonia, Vlassopoulos will now be located 

at Hellespont's Piraeus-based chartering 

division. 

Taking over as managing director of the 

Hamburg-based fleet and safety division is 

Captain Matthias Imrecke 

Captain Imrecke has long experience in 

shipping both at sea and ashore with a number 

of managerial positions held in Germany, 

Switzerland, Greece, Malta and the UAE. 

Christian von Oldershausen, group ceo, 

said, "Spyros has done a great job building up 

our management here in Hamburg. Now that 

we have grown to 14 tankers in operation, 

with a further 15 to come, we need to beef up 

our commercial management in Greece. 

Spyros will do that, while Matthias will bring 

solid management experience in to meet the 

constantly increasing challenge of taking 

delivery of and running our modern fleet." 

Today, Hellespont operates 14 new crude, 

LR product and chemical tankers and has a 


Hellespont strengthens management 

team in Germany and Greece 

Captain Matthias Imrecke 

further 15 vessels under construction - the 

Hellespont Credo, a 13,000 dwt IMO 

chemical tanker to be delivered at the end of 

May, six platform supply vessels and eight 

17,000 dwt chemical carriers with delivery 

dates through 2010. 

 

Braemar business divisions rebranded 

Braemar Shipping Services has 

renamed three companies within 

its group. 

The service company said that this move was 

meant to create greater awareness of the 

breadth of its maritime services. 

The following concerns were rebranded: 

Environmental division - DV Howells - 

became Braemar Howells. 

Specialist loss adjusting arm Steege 

Kingston is now known as Braemar Steege. 

Falconer Bryan, the group's technical 

survey and marine consultancy services 

business, changed to Braemar Falconer. 

Quentin Soanes, executive director of 

Braemar Shipping Services, said: "….(the) 

rebranding will further demonstrate the 

breadth of the Braemar Shipping Services 

Group. It's an important harmonisation, which 

highlights the range of services our companies 

are able to supply to the maritime industry." 

Nigel Carpenter, ceo of Braemar's newest 

acquisition, which becomes Braemar Steege, 

said: "For us this new name places us clearly 

within the Braemar group of companies, 

enabling us to benefit from the associations 

and resources available within it while still 

maintaining our own individuality." 

Simon Rickaby, managing director of Braemar 

Howells said: "Braemar Shipping Services is an 

around the clock around the globe leading 

maritime services group of which Braemar 

Howells with 60 years counter pollution 

experience proudly contributes its own unique 

specialities as a class leader while remaining a 

client's natural choice of solution provider." 

John Falconer, executive director of Braemar 

Falconer welcomed the change mentioning: 

"We are the preferred survey service providers 

in the Far East for the marine and offshore 

industry. This change of name consolidates our 

position within the Braemar group of 

companies and gives us the strength to expand 

in other areas of the world." 

The name changes have already become 

effective while further rebranding of websites 

and corporate literature is scheduled to take 

place over the coming months. 

 



All change at Wilhelmsen 

Tor Øiseth, president of 

Wilhelmsen Ships Equipment, has 

been appointed president of 

Wilhelmsen Marine Engineering, 

succeeding Lars Marcusson. 

In turn, Peter Stockley, managing director of 

Wilhelmsen Marine Systems, has been 

appointed president of Wilhelmsen Ships 

Equipment, succeeding Øiseth. 

Wilhelmsen Marine Engineering was 

formed following Wilhelmsen Maritime 

Services' recent acquisition of the Callenberg 

Group. 

"Tor Øiseth and Peter Stockley have solid 

experience and track records within this part 

of the industry and have been working closely 

together for years. 

"Their combined experience gives us a very 

good opportunity to create synergies between 

the two business areas. The market is 

Securewest appoints vice president 

Leading global maritime security 

services provider, Securewest 

International, has appointed 

Stuart Flynn to the post of vice 

president business development. 

Managing departments in the UK, US and 

Singapore, Flynn will be responsible for 

identifying new markets, as well as 

introducing and developing bespoke solutions 

and services to existing clients. 

He replaces former vice president Paul 

Singer who left Securewest at the end of April 

to take up a new position in the technology 

solutions sector. 

"These are exciting times for Securewest 

booming, capacity is stretched and order 

books are increasing by the day," said Dag 

Schjerven, president and ceo of Wilhelmsen 

Maritime Services. 

Marcusson has headed the Callenberg 

Group for the last 12 years and expressed a 

wish to step down, but continue as a member 

of the Wilhelmsen Marine Engineering 

management team, focusing on business 

development. 

Wilhelmsen Marine Engineering and 

Wilhelmsen Ships Equipment supply systems 

and turnkey solutions to the newbuilding, 

retrofit and offshore markets. 

Wilhelmsen Maritime Services is a whollyowned 

subsidiary of Wilh Wilhelmsen and 

operates through four business areas - 

Wilhelmsen Ships Service, Wilhelmsen Ship 

Management, Wilhelmsen Ships Equipment, 

and Wilhelmsen Marine Engineering. 

International," explained Flynn. "The 

company is now monitoring over 16 mill 

tonnes of shipping for clients worldwide, and 

in many respects I will be the 'face' of the 

business as regards its existing international 

clients and potential new customers." 

The appointment comes on the back of the 

opening of new international offices and a 

growing portfolio of services, including new, 

flexible security training delivery options. 

Flynn comes to Securewest with 21 years 

experience, specialising in security, IT and 

telecommunication applications within the 

governmental and private sectors, both 

nationally and internationally. 

Castrol extends 

global port coverage 

Castrol Marine has added 80 

ports to its global supply network 

worldwide and upgraded delivery 

capacity at a number of others. 

The marine lubricant supplier has expanded its 

service in 26 countries across Asia, Europe 

and in the Americas, with immediate effect. 

Highlights included the launch of barge 

deliveries at three ports along China's lower 

Yangtze River - Nanjing, Jiangyin, and Taicang. 

Until now, vessels had to rely on marine 

lubricant deliveries by drum. As well as cost 

savings and loading and efficiency benefits, 

bulk supply improves overall safety levels 

with less storage of drums required on board 

vessels. Six other Chinese ports have also 

been added to the supply network. 

Albert Chan, global offer director, Castrol 

Marine, said: "The roll-out of bulk supply 

along the Yangtze underlines our ongoing 

commitment to China. It means Castrol 

Marine customers can now benefit from 

speedier and more cost-effective lubricant 

product deliveries." 

The service upgrade continued a series of 

improvements by Castrol Marine at various 

Chinese ports in recent years, including 

Shanghai, the world's largest port, in response 

to the country's expanded role in international 

maritime trade. 

Elsewhere, barge supply has been 

introduced at nine locations in Japan, while in 

Europe, Castrol Marine has added 10 new 

ports to its UK network, and nearly 20 new 

ports across Scandinavia. 

"At a time when many others are reducing 

the number of ports they supply, Castrol 

Marine has expanded its global port coverage 

by approximately 10%," said Chan. 

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10 


ISS expands shipping services 

worldwide 

Inchcape Shipping Services (ISS) 

has opened up in Nigeria offering 

full agency services. 

As from 15th May, the new offices, located in 

Lagos and Port Harcourt, are managed by 

Captain Reidar Roed, formerly ISS general 

manager in Saudi Arabia. 

ISS ceo Claus Hyldager said: "Nigeria is 

home to Africa's largest population - around 

120 mill - as well as being the world's sixth 

biggest oil exporter. The economy is buoyant 

and we see good potential for our core port 

agency business and for several of our other 

activities as well. 

"The IMF has influence in the country 

now," added Hyldager, "and as a result, the 

economy is being further opened up to 

encourage foreign investment." 

The new company is a joint venture 

between ISS and Union Maritime, a UKregistered 

shipowner with a well established 

operating base in Nigeria. 

Allan Vermaak, ISS' regional director, 

Africa said: "By joining forces with Union 

Maritime we benefit from their 20 years 

experience of operating in Nigeria and from 

their strong relationships with both local 

authorities and with local customers. 

"ISS will share waterfront office space 

with Union Maritime in Apapa/Lagos and 

we have taken on some of their key 

personnel who are now undergoing further 

training to ensure we service our 

customers to our global quality standards," 

Vermaak continued. 

ISS Nigeria will service all ports and 

terminals across the country through a 

head office in Lagos and a branch office in 

Port Harcourt. The company has been 

launched with an initial staff of 17 in Lagos 

and 10 in Port Harcourt. The senior 

management positions have been filled by 

experienced expatriates and to reflect the 

strong focus on service delivery the 

business is headed up by Roed, a 

Norwegian master mariner. 

"For our charterer principals we have 

focused on establishing clearly defined 

operational, communication and financial 

processes in line with our global ISO 9002 

accreditation and quality management 

system," said Vermaak. "Our Nigerian 

operations will be audited as a priority so they 

quickly become part of this global 

accreditation." 

Captain Roed added: "In a location such 


as Nigeria one of our key functions as an 

agent is to ensure timely and accurate 

updates to our principals. Nigeria remains 

one of the few locations where the principal 

relies absolutely on the agent for accurate 

reliable information and ISS, through its 

structured approach to the communication 

process, is well placed to introduce a new 

standard to the Nigerian market. 

"For owners' matters ISS Nigeria is 

providing full custody control for both crew 

and spares movement within the country," he 

continued. "From a crew perspective all landbased 

transfers will be using ISS' own 

vehicles and staff, and for transfer offshore 

this will be carried out via ISS' own launch 

from our private jetty in Apapa. 

"Similarly for spare parts deliveries, we 

have established an in-house clearance and 

delivery team with bonded warehousing in 

Tin Can Port and additional secure 

warehousing in an ISS marshalling yard next 

to our jetty in Apapa from where we will 

transfer spares offshore using the ISS 

launch," said Roed. 

Another area in the latest succession of 

new office launches is the fast developing 

market of Mexico. 

ISS regional managing director for 

North and Central America, Lars 

Westerberg, commented: "We see Mexico as 

a country with great potential and vast 

opportunities, which is of strategic 

importance to our region. 

"We have started up a greenfield operation 

with Octavio Armas as our country manager 

based in Mexico City. Octavio brings with 

him a strong track record of experience within 

the maritime industry in Mexico and will be 

responsible for establishing ISS offices in the 

country's principal ports." 

Elsewhere, effective 1st June, ISS has 

joined with leading New Zealand agency, 

McKay Shipping, to form ISS-McKay. 

The announcement follows hard on the 

heels of the ISS acquisition a couple of 

months ago of Adsteam Agencies Tauranga 

(AATL) and Ports and Shipping Services 

(PASS). 

"We have pooled our businesses and ISS- 

McKay will perform all the operations of ISS 

in New Zealand as well as all the vessel 

operations of McKay Shipping, including 

tankers, and its associated companies," 

explained ISS regional managing director for 

Australasia, Royce Brain. 

 


INDUSTRY - GREEK SHIPPING REVIEW 

The winds of change 

A huge orderbook, younger executives and an eye for a business deal help 

to keep the Greeks in the forefront of world shipping. 

At the beginning of this year, Greek 

controlled companies accounted 

for 21% of the world's tanker 

tonnage, including the number of 

vessels under construction, or on order. 

In the growing chemical and product carrier 

sector, the percentage controlled by Greek 

managers and operators grew to 14%. 

Although difficult to quantify as the total 

changes almost daily, at the beginning of 

2008, Greeks were believed to control around 

1,270 tankers, of which 400 were 

newbuildings (see facts and figures section). 

During the past decade, the image of the 

Greek fleet has been drastically overhauled, 

whereas before it consisted of many elderly 

vessels, today the average age of the fleet is 

below 10 years. 

This has been due to the phenomenal 

newbuilding contracting and younger tonnage 

acquired on the sale & purchase market. We 

are also seeing a step change in the typical 

Greek entrepreneur. Gone are the days of the 

sea captain coming ashore, getting a bank loan 

and buying a secondhand ship. Nowadays, the 

senior executive is more likely to be a young 

Harvard, or similar, business school educated 

person, who would probably have had some 

experience in a worldwide broking house, or 

shipowner's commercial department in which 

to hone his or her skills. 

On the back of several years of a boom 

market, new players have emerged in virtually 

all sectors, even the LNGC market. Several 

have floated in the US and the UK and they 

all have readily embraced the IMO and EU 

rules and regulations, together with OCIMF's 

TMSA, without so much as a whimper, unlike 

in the old days. 

There has always been a certain amount of 

respect for a Greek shipowner, going back to 

the Niarchos and Onassis days and this has 

grown today as several of the key jobs in 

shipping - IMO secretary general, chairman of 

the International Chamber of 

Shipping/International Shipping Federation, 

Intertanko, Bimco and Intercargo chairmenare 

held by Greek nationals, as is the senior 

shipping position within the Royal Bank of 

Scotland, to name but a few. 

In recent times, several owners have 

embraced both codes, either by adding dry 

hulls to wet or the other way around in the 

wake of the burgeoning drybulk markets. 

However, not all roads to Athens are paved 

with gold. The Greek government is acutely 

aware of not having an active shipping 

element in the local stock exchange, due to 

restrictive regulations. However, a meeting 

was due to be held involving all interested 

parties on 26th May to try to resolve the 

problem. 

Most of the Greek public shipping 

companies are listed on the New York Stock 

Exchange or NASDAQ with just a handful 

joining London's Alternative Investment 

Market (AIM). However, all is not rosy across 

Spyros Polemis, chairman of the 

International Chamber of Shipping and the 

International Shipping Federation 



the pond and a few prospective IPOs have 

been pulled. 

In addition, the UK Government looked to 

have alienated foreign shipping concerns as in 

April, it was announced that overseas people 

living in the UK and considered as nondomicile 

for tax purposes -non-doms - will 

lose their exemption status. 

UK Finance Minister Alistair Darling has 

since announced a working group to advise 

Facts and Figures 

Last February, the Greek Shipping 

Co-operation Committee (GSCC) 

published its annual report, which 

contained facts and figures about 

the current state of Greek 

controlled shipping*. 

This survey concerns Greek controlled vessels 

of over 1,000 gt, flying both the domestic flag 

as well as other flags. As of 18th February this 

year, the fleet both domestic and overseas 

registered had increased significantly both in 

terms of deadweight tonnage and gross tonnes 

compared with the same date in 2007. 

the government on 'long-term challenges' to 

the UK tax system. Multinational companies 

have been invited to join the group, but it is 

unclear if shipping interests will be 

represented. 

Baltic chairman Michael Drayton has held 

talks with the UK Chamber of Shipping and 

they had agreed that their common goal was 

to make sure that someone with authority and 

with a broad view on all the cluster's shipping 

For example, Greek interests controlled 

4,173 vessels of 261 mill dwt, including 1,054 

on order of 50 mill gt, an increase of 474 

vessels of 43 mill dwt. Those flying the Greek 

flag also registered an increase and comprised 

1,197 vessels, including 422 on order, 

compared with 969 in 2007. 

The numbers of vessels entering the Greek 

register are expected to increase due to the 

measures taken to make the domestic flag 

more competitive. Out of the 1,054 vessels 

on order, some 422 are earmarked for the 

Greek registry. 

interests sits on the Treasury working group. 

Recent known high-profile Greek 

defections from the UK have included some 

of the Goulandris and Fafalios shipping 

families. 

Any more would play into the hands of the 

Greek Registry and boost attempts to 

persuade shipping companies to join the 

Athens Stock Exchange, once it becomes 

business friendly, in favour of London. 

TO 

Greek interests now control about 8.7% of 

the world's fleet in service or on order by 

number, 16.4% by deadweight tonnes and 

14.1% expressed in gt terms. In terms of 

vessels on order, these percentages are 11%, 

16.8% and 14.6% respectively. 

A comparison of flag used by Greek 

interests showed that there were no significant 

losses to any of the registries last year. Apart 

from the significant gains registered by Greek 

interests, there were also increases noted by 

Liberia and the Marshall Islands. 

In total, Greeks controlled 592 oil tankers, 

Greek parent companies ship types and age analysis. Ships of over 1,000 gt in service and currently on order. 

TYPE TO TAL O RDER BOOK (0-4) (5-9) (10 -14) (15 -19) (20 -24) 25 & ABOVE 

CARGO NO 524 49 83 40 31 41 72 257 

GT 7,976,749 2,087,663 3,208,183 874,119 262,414 445,193 748,220 2,438,620 

DW T 5,059,869 733,086 1,156,970 269,804 203,315 305,610 700,368 2,423,802 

CH EM ICAL & PRODUCTS NO 681 273 421 52 17 39 71 81 

G T 13,687,136 5,472,788 9,343,257 1,500,559 340,272 543,640 1,242,655 716,753 

D W T 22,951,384 9,130,638 15,701,192 2,476,519 539,579 927,715 2,129,877 1,176,502 

COM BINATION CARRIERS NO 7 1 3 3 

G T 302,839 63,709 114,969 124,161 

D W T 500,784 103,203 186,955 210,626 

LIQUID G AS N O 121 38 53 11 19 7 6 25 

GT 2,871,691 1,042,054 2,038,758 158,117 80,141 29,402 63,584 501,689 

DW T 2,985,117 1,146,044 2,035,509 186,165 84,307 28,525 64,575 586,036 

OIL TANKERS NO 592 125 257 104 48 103 55 25 

G T 44,804,635 10,809,221 20,923,065 9,022,842 3,884,354 7,518,629 2,435,103 1,020,642 

D W T 83,874,607 20,799,586 39,854,874 17,069,428 7,183,687 13,640,521 4,312,149 1,813,948 

ORE & BULK NO 1,793 487 670 217 214 97 244 351 

G T 70,846,171 25,445,688 33,686,136 9,198,852 7,459,436 3,802,548 7,401,420 9,297,779 

D W T 131,454,902 48,646,877 64,104,995 17,178,428 13,713,506 7,058,361 13,166,768 16,232,844 

OTHERS NO 64 13 22 5 7 6 6 18 

G T 529,665 157,872 183,187 18,705 64,162 50,029 54,828 158,754 

D W T 526,184 47,741 69,085 19,500 80,617 43,380 52,985 260,617 

PASSEN G ER N O 128 6 9 28 12 16 6 57 

GT 1,656,767 84,266 99,564 517,009 112,833 195,931 95,610 635,820 

D W T 355,144 8,586 12,336 100,738 27,350 45,392 24,436 144,892 

PURE CONTAINER NO 263 63 85 15 18 36 39 70 

G T 11,923,621 4,808,260 6,232,120 911,166 555,039 1,196,979 1,342,269 1,686,048 

D W T 13,221,230 5,178,430 6,754,238 1,041,493 649,539 1,405,292 1,506,626 1,864,042 

TOTAL NO 4,173 1,054 1,600 472 366 346 502 887 

G T 154,599,274 49,907,812 75,714,270 22,201,369 12,758,651 13,846,060 13,498,658 16,580,266 

D W T 260,929,221 85,690,988 129,689,199 38,342,075 22,481,900 23,557,999 22,144,739 24,713,309 

Source: GSCC/LR-Fairplay. 

14 


“Blueland Centre” 6-8 Agisilaou str., 151 23 Marousi, Athens Greece


Flag analysis of vessels owned by Greek parent companies 

FLAG SH IPS DEADW EIGHT GROSS 

ANTIGUA & BARBUDA 2 3,891 2,840 

BA H A M A S 292 16,147,423 11,293,149 

BA RBA D O S 12 412,259 254,229 

BELGIU M 3 172,605 145,430 

BELIZE 1 2,909 1,982 

BERM U D A 2 151,940 137,342 

BRAZIL 2 49,680 31,212 

CAYM AN ISLAN D S 20 1,131,373 639,986 

CHINA,PEOPLE'SREPUBLICOF 2 6,106 6,281 

COM OROS 7 90,381 53,972 

CY PRU S 345 20,245,145 12,578,148 

DENM ARK (DIS) 4 50,235 38,238 

DOM INICA 9 1,033,525 549,636 

EGY PT 7 487,994 274,639 

GEORGIA 2 14,825 8,587 

G ERM A N Y 4 212,000 124,000 

GIBRA LTAR 7 155,229 109,910 

GREECE 1,197 93,870,095 55,560,010 

HONDURAS 3 2,236 15,198 

HONG KONG,CHIN A 29 1,625,288 944,121 

INDIA 1 13,022 8,562 

ISLE OF MAN 73 7,160,996 3,928,594 

ITALY 15 712,436 566,467 

JA M A ICA 7 171,547 100,875 

K ENY A 1 341 1,502 

KOREA,NORTH 1 20,005 12,180 

K O REA ,SO U TH 2 360,000 180,000 

LEBANON 2 34,381 22,268 

LIBERIA 472 30,897,835 17,514,023 

M A LTA 505 27,558,555 15,614,120 

M ARSHALL ISLAN D S 388 22,695,503 12,934,381 

NORW AY 1 2,203 2,028 

NORW AY (NIS) 3 446,130 250,847 

PA N A M A 575 29,525,466 17,378,641 

PH ILIPPIN ES 4 229,130 127,420 

PORTUGAL (M A R) 4 17,903 49,962 

RUSSIA 1 4,392 3,835 

SAO TOM E & PRINCIPE 1 6,910 4,154 

SAUDIARABIA 12 3,928 47,424 

SIN G A PO RE 21 762,147 438,305 

SLOVAKIA 3 14,286 10,376 

ST KITTS & NEVIS 1 12,450 9,992 

ST VINCENT &THE GRENADINES 75 1,913,489 1,148,375 

UNITED ARAB EM IRA TES 3 10,839 7,000 

UNITED KINGDOM 11 118,966 94,334 

UNKNOW N 32 2,240,378 1,280,705 

URUGUAY 1 3,390 2,521 

VANUATU 5 34,472 36,977 

VENEZUELA 3 92,982 54,496 

G rand Total 4,173 260,929,221 154,599,274 

Source: GSCC/LR-Fairplay. 

681 chemical and product tankers, 121 liquid gas carriers and seven 

combination carriers. Last year, the oil tanker total went down by just 

three vessels, mainly due to the single hull phase out, while the 

chemical and product tanker sectors showed an increase of 90 vessels 

of 2.5 mill dwt. Liquefied gas carriers also increased by 12 of 190,000 

dwt in total, while the combination carrier fleet lost two members. 

Out of the 1,054 vessels on order, 125 were oil tankers, 273 chemical 

and product tankers and 38 liquefied gas carriers. 

The average age of the overall Greek controlled fleet dropped to 12.5 

years, compared with 14.3 years in February 2007 and 15.3 years the 

year before. As for the Greek flag, the average age fell to just nine 

years, against 11.1 years in 2007 and 11.7 in 2006. 

Six major IACS member class societies share the majority of the 

Greek controlled fleet. These included:- 

Lloyd's Register = 878 vessels (825 in 2007) 

American Bureau of Shipping = 766 (612) 

Det Norske Veritas = 598 (569) 

ClassNK = 492 (446) 

Bureau Veritas = 462 (447) 

Germanischer Lloyd = 216 (208) 

Plus the Hellenic Register, which accounted for a further 126 vessels. 

*Figures were supplied to the Greek Shipping 

Co-operation Committee by LR-Fairplay. 

16 



A commitment to 

continuous improvement 

During April's Intertanko Istanbul event, several leading Greek shipping personalities 

endorsed the idea of the Poseidon Challenge. 

Among them was Captain D 

Kastanias, senior HSSQE and 

training officer with relative 

newcomer Kyla Shipping. This 

company was established in 2006 and 

currently manages seven small coastal 

chemical/product tankers, which mainly trade 

in the Mediterranean region. The company 

also manages four bulkers trading worldwide. 

The tankers are classed with Lloyd's 

Register and have an average age of only 

three years. Since joining the European Union, 

Greece has been faced with the single hull 

phase out of its large fleet of coastal tankers, 

both trading locally and serving as bunker 

vessels. 

Encapsulating the new breed of Greek 

shipowner/manager/operator, the company's 

mantra is - 'Commitment to continuous 

improvement through innovation'. 

Captain Kastanias explained that Kyla's aim 

was to raise the HSSQE standards and culture 

in the very demanding world of coastal 

shipping. 

He said that safety was a way of life and 

was the top priority in all of Kyla's operations. 

He believed in encouraging initiatives that 

went beyond the committee room. "Be 

creative," he urged. 

He saw one of his roles as inspiring and 

motivating people to enhance the safety and 

environment culture and by adopting this, they 

would inspire others. "We need to raise the 

bar by talking to seafarers' hearts and minds," 

he explained. 

Managing is based on the principles of 

continuous improvement and people 

empowerment and in practice continuous 

improvement meant that a company had to - 

Establish plans and develop effective 

working practices. 

Analyse, measure record and monitor 

performance and results. 

Identify improvement opportunities. 

Praise and correct. 

He explained that people empowerment meant 

providing people with the ability to perform, 

have no blame culture in the company and 

trust people to perform a task. This could be 

achieved by leadership as the leaders would 

be the ones who demonstrated commitment, 

desired attitudes and behaviour through their 

own example. 

They would also be accessible involving 

people in communications processes and would 

share the common vision, values and goals. 

People should be encouraged to be creative 

and be provided with the required resources 

and effective tools. 

He then described how a shipping company 

should be motivated. Top management should 

be committed and make frequent visits on 

board their ships as should the superintendents 

for inspections and audits. There should be 

reward schemes established for the best 

suggestions and initiatives. A spirit of 

emulation should be developed among the 

personnel for safety and environment 

excellence and that this culture should be 

enhanced both on board and ashore. 

"Make people proud to be a part of the vital 

role towards the achievement of these goals," 

he urged. 

He claimed that Kyla's staff came from the 

first Greek ship operator to be accredited with 

an ISO 14001 certificate. An exhaustive risk 

assessment was undertaken on any new 

project. All the environmental sensitivities 

would be considered, operating procedures 

reviewed and, if necessary, revised to 

minimise local environmental impact. 

Energy audits have been carried out to 

identify and implement any savings potential 

both in the office and on board ship. "Through 

energy management initiatives, we can 

incorporate energy efficiency improvements 

into routine operations," Captain Kastanias said. 

Environmental improvements have been 

factored into newbuilding designs and 

shipboard operating practices. 

Kyla Shipping manages 

seven small 

Mediterranean trading 

coastal chemical/product 

tankers. 



Kyla also strives for a 'nobody gets hurt' 

policy. "We know that there are potential 

risks, but these can be substantially reduced if 

managed properly. We need to spend time, 

effort and money on recognising and 

eliminating hazards," he said. 

The company has found that crews' safety 

and environmental awareness in coastal 

vessel trades was unsatisfactory. He repeated 

that the key was in talking to seafarers' hearts 

and minds. 

A family culture was created and a spirit of 

advanced teamwork nurtured. The decision 

making was based on brainstorming sessions. 

Co-operation with local environmental and 

community groups was also vital in coastal 

trades to keep the ecological balance intact in 

an area served. 

Last year, Kyla put more emphasis on 

behaviour-based safety by adopting what it 

called the 'Take 5' initiative whereby the crew 

asked themselves five basic questions before 

starting a task. This helped remind people of 

the main points for maintaining continuous 

situation awareness. The award scheme 

allowed the supervisors to instantly recognise 

and reward employees and contractors. Open 

forums and workshops also led to an 

improved safety culture. 

Captain Kastanias said that the plan for this 

year focused on team safety targets, 

supervisory leadership and safety leadership 

training. "We have focused our efforts on 

employing efficient and well trained 

personnel," he explained. The company had 

recently introduced a computer-based 

selection, induction and ongoing assessment, 

psychometric tools and personalised training 

procedures. 

Kyla had established a realistic and dynamic 

training plan both on board and ashore, based 

upon the needs identified by KPIs, appraisals, 

drills, audits and other tools. Frequent on board 

and onshore training is given, both by in-house 

and by external trainers. Workshops and open 

forums are also held. 

Benchmarking performance was a very 

important tool. To be effective it must be 

ongoing, an integral part of the improvement 

process and should keep abreast of ever 

improving best practice. 

Captain Katsanias said that by and large, the 

shipping industry was reluctant to 

communicate results so he had proposed that 

Intertanko be the 'reference point' where all 

companies could submit their results. "TMSA 

and LTI's were not enough", he said. 

Kyla goes so far as to have forums for 

suppliers and sub-contractors on 

environmental and safety topics. For example, 

a fully certificated garbage contractor was 

appointed. "In this way, we overcame the 

bureaucratic obstacles surrounding garbage 

reception facilities ashore," he explained. 

Waste reduction has also been achieved by 

buying in bulk, thus reducing the volume of 

packaging needed. 

The company is also fully committed to 

social responsibility and offers scholarships 

and pays for summer camps for seafarers' 

offspring. Company personnel are encouraged 

to take higher education to better themselves 

and the company. Kyla is also an active 

member of Helmepa. 

However, the real problem today is the 

image of shipping in society. "A lot has been 

done, but little has been communicated to the 

outside world," Captain Kastanias said. "It 

should be improved", he stressed. 

Returning to Kyla, he said; "The framework 

of mutual understanding has paid dividends." TO 

18 



Greeks look to the 

Future 

A seminar was held in Athens last month in an attempt to persuade the Greek shipping 

community to participate in the Forward Freight Agreements (FFAs) markets. 

Headed by SSY Futures senior 

director Ben Goggin, who also 

holds the post of chairman of the 

Forward Freight Agreement 

Brokers' Association (FFABA), co-ordinated 

by London's Baltic Exchange, the seminar 

attempted to address some of the most 

frequently asked questions, such as - who is 

participating, how does it work, do I want to 

be involved, can I lock in going forward and 

how can I avoid volatility in the future? 

It focused both on the dry and wet sectors in 

different sessions as although the drybulk FFA 

market is quite mature as it has been in existence 

longer, there is now a lot of interest in the tanker 

market, especially as the physical earnings were 

very high at present, which is most unusual as 

we approach the summer months. 

Goggin explained that it was easier to get 

audience participation with just one company 

at the helm, as those attending could take 

advantage of 'one to ones' discreetly, which 

might not be possible in a more publicly 

organised event. He explained that SSY holds 

seminars annually in Athens, Geneva and 

Copenhagen and is looking to organise an 

event in Houston in the near future. 

He thought that the new breed of younger 

Greeks coming to the fore in shipping were 

highly educated, both in shipping and 

commercial terms, open to new ideas and were 

more than capable of turning some of the new 

ideas into practice within their companies. Years 

ago, traditional Greek shipowners tended to be 

retired sea captains who did everything 

themselves, but were averse to change. 

SSY's philosophy is to link the physical 

market to the FFAs by giving a lecture on the 

current situation in drybulk and tanker 

chartering to set the picture. Indeed, SSY's FFA 

brokers tend to sit near the physical brokers in 

order the glean information on the latest fixtures 

and also liaise with the research department. 

Goggin explained that the ideal FFA 

department would consist of specialist futures 

brokers mixed with those having experience 

with the physical day-to-day chartering. In the 

tanker sector, SSY Futures employs six 

brokers in London and another four in 

Singapore, reflecting the island state's fast 

increasing commercial tanker operations 

sector at present. 

In Singapore, Vitol, Glencore, Trafigura and 

others were now strong players in the market 

and in recent years, tanker companies, brokers 

and traders had moved in-house 'heavyweights' 

to the island to beef up their operations. Goggin 

explained that by 07.30 London time, 

Singapore was already trading and no longer 

waited for the London market to open as had 

happened in the past. Channelled through the 

Southeast Asian powerhouse were customers 

located in Japan, Taiwan and China. 

Goggin had found that US interest was 

growing "a little bit slower" than other parts 

of the world. He explained that SSY has an 

office in Connecticut and is planning a 

seminar in Houston soon. 

On the dry side, the company has 17 futures 

brokers in London and another three in Hong 

Kong. When added together with the tanker 

desks, this makes SSY probably the largest 

futures broking house, Goggin thought. 

To his knowledge there was only one other 

fully integrated broking house having both 

futures and physical desks under one roof and 

that was Clarkson. However, tanker specialist 

ACM was also involved in a joint venture 

with GFI. ICAP was also believed to be 

moving into FFAs and currently owns London 

broking house JE Hyde. The company also 

recently took over Capital Shipbrokers. 

Goggin said that his role as chairman of the 

FFABA was to impartially promote the 

concept of FFAs, organise seminars and 

general get togethers and to speak with one 

authoritative voice. The Baltic Exchange is 

responsible for printing the number of lots 

traded and for selecting and monitoring the 

indices on which the trades are based. The 

figures are reported on a quarterly basis. 

Today tankers are regularly traded into 2009 

and even 2010 and Goggin thought with the new 

Timecharter Equivalent (TCE) index, which is 

quoted in US dollars rather than Worldscale, this 

would boost interest still further. 

Goggin is half way through a three year 

plan at SSY, which hinges on making the 

tanker futures desk more active in terms of 

lots traded to emulate the drycargo desk, 

which is a more mature market mainly 

because drycargo indices have been traded for 

a longer period of time. 

The most liquid trade at present is route 

TD3, which is the Persian Gulf/Japan VLCC 

spot voyage, which at the time of writing was 

trading on the physical market at near W200 

(roughly $160,000 per day), which has given 

the market food for thought. 

Volumes increased 

Meanwhile, last year was the first full year of 

formal reporting of trade volumes by brokers in 

the drybulk FFA market. The Baltic Exchange 

said that drybulk volumes were estimated to 

have increased by 34% year on year, while 

tanker trade volumes were estimated to have 

increased by 14% year on year. 

In the tanker market, FFA volumes were 

estimated to be 374,870,440 tonnes traded (a 

lot represents a day's hire or 1,000 tonnes), 

which was a 14% increase over the 2006 

figure of 329,434,250 tonnes. In the tanker 

market cleared business is thought to represent 

about 46% of volume. 

Commenting on the figures earlier this year, 

Jeremy Penn, Baltic Exchange ceo said; 

"This data will serve to show newcomers to 

the market just how much liquidity is now on 

offer and how successful this market has 

become. With the high rates achieved, 

especially in dry in the latter part of the year 

(2007), the dollar value of contracts will no 

doubt have increased at an even greater rate. It 

is noteworthy that the overall cleared figure 

for the year in dry business underplays the 

transition which has taken place. In the latter 

part of 2007 each week more than 50% of 

business was cleared and in some weeks it 

was 70%. The development of the tanker 

market is particularly pleasing recognising 

that overall the physical market had a quiet 

year with lower volatility than usual. This 

bodes well for the future." 

TO 

20 



Greek controlled management companies 

Listed below are the major Greek 

controlled management and 

operating concerns. This list 

reflects companies that manage 

or operate chemical, product and 

crude oil tankers of over 30,000 

dwt. 

We have not included gas carriers, or 

managers/operators with only smaller vessels 

on their books. This list, which includes the 

known newbuildings, has been compiled from 

information taken from various public 

sources. 

It should only be used as a rough guide to 

Greek activity in shipping, as due to the fast 

moving nature of this sector, it has proved to 

be very difficult to gain an accurate snapshot 

of Greek shipping. 

The list has been compiled in alphabetical 

order of owner/manager/operator followed by 

the types of vessels managed and a 

newbuilding roundup. 

A.K. Shipping & Trading 

Chemical/product tankers, product tankers, 

crude carriers 

Aegean Shipping Management 

Chemical/product tankers, crude carriers 

Athenian Sea Carriers 

Product tankers 

Newbuildings - Four VLCCs 

Atlas Maritime 

Crude carriers 

Newbuildings - One Aframax 

Avin International 



Newbuildings - Five MRs 

Benelux Overseas 

Newbuildings - Four MRs 

Blue Line Ship Management 

Chemical/product tankers, product tanker 

Newbuildings - Three MRs 

Brave Maritime Group, including 

Stealth Maritime, StealthGas 


Newbuildings - Two Aframaxes (Stealth 

Maritime) 

Newbuildings - Three Suezmaxes 

Chandris Hellas 

Product tankers, crude carriers 

Newbuildings - Two Suezmaxes, two 

Aframaxes 

Chartworld Shipping Corp 

Chemical/product tankers 

Cyclops Ships 


Delfi SA 



Despina Investments 


Diamlemos Shipping Corp 


Dileton Maritime 

Chemical/product tanker 

Dorian Hellas 

Crude carrier 

Newbuildings - Two Aframaxes 

Aeolos Management 


Alba Maritime Services 

Newbuildings – possible seven VLCCs 

Alpha Tankers 

Newbuildings - Five Aframaxes, three 

Suezmaxes, two VLCCs 

Ancora Investment Trust 


crude carrier 

Andriaki Shipping 


Arcadia Shipmanagement 

Product tanker, crude carriers 

Archipelago Ships Management 


Aries Maritime Transport 


Astron Maritime 


StealthGas has diversified into MRs 

Byzantine Maritime Corp 

Newbuildings - Three Aframaxes, two MRs 

Capital Ship Management 

Chemical/product tankers, chemical tankers, 


Newbuildings - Six MRs 

Cardiff Marine (George 

Economou) 


Newbuildings – Nine Aframaxes, two VLCCs, 

six Suezmaxes (Drytank) 

Cavodoro Shipping Corp 


Centrofin Management 


Dynacom Tankers Management 


Newbuildings - Nine Panamaxes, four 

Suezmaxes, five VLCCs 

Eastern Mediterranean 



Eletson 


Newbuildings - Eight MRs 

Enesel 


Enesel’s Aframax Pantelis at Coryton. 

22 


Winner - Sea Trade, 

Dubai International 

Maritime Awards, 2006 for 

“Outstanding Maritime Services” 

Finalist - Lloyd's List, 

Middle East and Indian 

Subcontinent Awards, 2006 for 

“Shipping Agent of the Year”


Enterprises 



Estoril Nav 


European Navigation 


European Product Carriers 

Chemical/product, product tankers 

LR2 Elka Athina seen at Fawley 

Eurotankers 


Golden Energy Marine Corp 


Newbuildings - Two Panamaxes, four MRs 

Goldenport/Oceangold Tankers 


Newbuildings - Two Panamaxes 

Harmony Navigation 

Chemical/product tankers, product tankers 

IMS 


Newbuildings – Two MRs 

Ionia Management 



Newbuildings - One Panamax, one Aframax, 

seven MRs 

Kristen Navigation/Agelef Shipping 


Newbuildings - One VLCC, four Suezmaxes, 

two Aframaxes 

Kyklades Maritime Corp 


Kyla Shipping 

Newbuildings - Two Suezmaxes 

Liquimar Tankers Management 



Aframaxes 

Liquimar’s MR High Nefeli also at Fawley 

Magnus Carriers 


Mantinia Shipping 


Marine Management Services 


Newbuildings - Four Suezmaxes, three 

Aframaxes 

Marmaras Navigation/Delta 


Newbuildings - 15 Suezmaxes, three VLCCs 

Marmaras’ Aframax Delta Pioneer at Coryton 

Medcare Shipping (Hellas) 


Metrostar Management 


Millenia Maritime 


Minerva Marine 




Neda Maritime Agency 

(Lykiardopulo) 


Nereus Shipping 


OSG Ship Management Greece 


Olympic Gulf Tankers 


Olympic Shipping & 

Management/Springfield Shipping 


Omega Navigation Enterprises 


Newbuildings - Five Handymaxes 

Paradise Navigation 


Phoenix Energy Navigation 



Pioneer Tankers Shipping Corp 

Chemical product tankers 


Pleiades Shipping Agencies 


Polembros Shipping 


Prime Marine Management 


Newbuildings - Four Panamaxes 

Project Shipping 


Queensway Navigation (Vemaoil) 


Kyklades Suezmax Rio Genoa 

24 

Metrostar’s VLCC Crudestar 

Roxana Shipping 


Newbuildings - Two chemical tankers, six 

Panamaxes 



Salmar Shipping 

Product carriers 

Samos Steamship 


Newbuildings - One Panamax, three 

Aframaxes 

Sea Pioneer Shipping 


Seatramp Tankers/Hellespont 

Hammonia 

Chemical products, crude carriers 

Seaworld Management & Trading 



Stamco Ship Management 


Styga Compania Naviera 



Sun Enterprises 




Target Marine 



Thenamaris Ships Management 




Panamaxes 

Thenamaris’ Aframax Saint Nicholas 

Tomasos Brothers 


Top Ships 




Transmed Shipping 

Newbuildings - Eight MRs 

Trustoil Tankers 


Tsakos Shipping & Trading 



Newbuildings - Two Aframaxes, four 

Panamaxes 

Unibros Shipping 

Chemical/products tanker 

Val Enterprises 


TO 

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INDUSTRY - POSIDONIA PREVIEW 

Record Greek 

shipping growth 

stimulates Posidonia 

A record year-on-year increase in Greek newbuilding orders fuelled by 

strong economic growth in Asia is helping Posidonia to break records this summer. 

With over $50 bill in committed 

investments in the Greek fleet 

renewal programme 

announced in 2007 alone, 

double the amount invested in the previous 

year, and almost two-digit annual sustainable 

growth rates in Asia - a region that holds 

almost half of the world's population, the 

global shipbuilding industry, equipment 

suppliers, and other relevant sectors, plus the 

secondhand market are all gearing up for 

Posidonia 08, which promises to be the 

biggest in its 40 year history. 

The possible opening up of Greece's largest 

ports to foreign investors has also enticed the 

interest of major Chinese and Arab funds 

competing for a stake and the management 

contract of Piraeus' container transhipment 

hub strategically situated at the crossroads of 

three continents. 

"Despite a downturn in the US economy, 

the general global economic conditions 

favour an even stronger shipping industry 

and the appeal of Posidonia 2008 reflects 

what can only be described as the most 

exciting period for the world's maritime 

community in recent memory," said Nana 

Michael, managing director, Posidonia 

Exhibitions, the organiser of the event to be 

held between 2nd and 6th June at the 

Hellenic Exhibition Centre (HEC). 

Michael claimed that Posidonia will this 

year see a record number of more than 16,000 

trade visitors as exhibitor bookings have 

already passed the 1,600 mark seen in 2006. 

"Stronger demand has led to a 1,000 sq m 

increase in floor space to reach 27,500 sq m, 

the biggest in Posidonia's history, as 

traditional participants have booked more 

space and a considerable number of first-time 

exhibitors making their event debut this year," 

Michael said. 

Greek shipowners' confirmed investment in 

newbuilding projects reached just under $32 

bill in 2007 while another $16.94 bill was 

spent on the secondhand market. In fleet 

terms, last year's investment corresponds to a 

newbuilding orderbook of 556 ships. Bulk 

Intertanko’s Nikos Fistes will be one of 

the personalities present at this year’s 

Posidonia. 



carrier orders accounted for 371 vessels of 

36.6 mill dwt, compared with just 74 units of 

6.4 mill dwt contracted in 2006. 

"By comparison, 2006 saw newbuilding 

orders by Greek shipowners of around $25 

bill, a figure which has been dwarfed by last 

year's historic levels that is expected to 

catapult Greece's maritime industry to new 

heights," said Michael. 

Fleet increased 

The Greek-owned fleet has increased by 

more than 50% since 1994, in a 14 year 

period when the average global shipping 

industry growth stood at a modest 9%. Today 

Greeks control 4,200 ships, in operation or 

on order, of some 250 mill dwt, and have a 

current orderbook of over 850 ships of 67 

mill dwt. 

This year's Posidonia is sponsored by the 

Ministry of Mercantile Marine, The Aegean 

and Island Policy, the Municipality of 

Piraeus, the Municipality of Hellenikon, the 

Hellenic Chamber of Shipping, the Union of 

Greek Shipowners, the Greek Shipping Cooperation 

Committee, the Mediterranean 

Cargo Vessels Shipowners Union, the 

Visitors are expected to flock to Posidonia. 

Association of Greek Coastal Shipping 

Companies and the Association of Greek 

Passenger Shipping Companies. 

More countries 

In addition to an increase from participating 

companies from established maritime nations, 

others from Honduras, Iceland, Luxemburg 

and Mongolia are making their Posidonia 

debut this year further increasing the total 

number of participating countries to almost 

80, setting a new show record. 

And this year's event is also inching closer 

to yet another landmark for the most national 

pavilions ever fielded at Posidonia with 

Romania, Argentina, Sweden and Honduras 

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Exporters of Marine Machineries and Equipment 

Website: www.harakhji.com 

Oil Purifier 

Mitsubishi SJ-3000 

Wartsila Power Plant16V 26LDGD 

Turbo ChargerMitsubishi 

MET-35 

Cylinder LinerSulzer 

RND-90 

Marine Engine 

Cat 3606 DI 

Fresh Water Generator 

Alfa Laval JWP-36-200 

Refrigeration Compressor 

Carrier 5H-20 

Hydraulic Motor 

Fukushima MA-10 

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Oil Filters, Air Compressors, Hydraulic Equipments, Chilling Compressors etc. 

28 



“ 

“For Asian shipbuilders, Posidonia is a must-attend biennial 

calendar event where they network with decision-makers of the 

Greek shipping community, who control the world's biggest 

newbuilding orderbook, standing at the end of March at over 

1,050 vessels of some 75 mill dwt.” 

Nana Michael, managing director, Posidonia Exhibitions 

” 

bringing the total number of national pavilions 

to 22. The full list is - Belgium, Belize, 

Cayman Islands, China, Croatia, Cyprus, 

Denmark, France, Honduras, Ireland, Japan, 

Republic of Korea, Liberia, Malta, The 

Netherlands, Panama, Romania, Singapore, 

Sweden, Turkey, UK and US. 

"The credit crunch in the US has had little 

effect on an industry that draws its strength 

from the booming BRIC economies (Brazil, 

Russia, India & China) and Asian markets 

where the bulk of shipbuilding activity is 

concentrated," Michael said. 

Looking eastwards, Posidonia 2008 has 

already confirmed the strongest exhibitor 

participation from Asia/Pacific than any 

other major trade shipping event held in 

Europe or North America. Participation from 

Asian exhibitors for this year's event has 

grown in accordance with the region's 

increasing wealth. 

Over 300 Asian exhibitors have confirmed 

their presence this summer, nearly three times 

the number that attended the 2000 event. A 

third of them will come from China and 62 

from Japan, with Singapore and Korea 

together accounting for 50% of Asia's total 

Posidonia 2008 exhibitor participation. 

"We are also unique because the major 

shipbuilders from Asia deploy standalone 

pavilions on the Posidonia floor as opposed to 

their policy of joining their respective national 

pavilions in the other major international 

shows," said Michael. 

Traditional Posidonia independent 

participants Tsuneishi and Cosco will this year 

be joined by South Korea's STX with its own 

standalone pavilion as Asia's shipbuilding 

sector bids to impress the burgeoning 

spending power of the Greek shipping 

community, which control the world's biggest 

tanker fleet and almost a fifth of the overall 

industry's deadweight tonnage. 

"For Asian shipbuilders, Posidonia is a 

must-attend biennial calendar event where 

30 


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they network with decision-makers of the 

Greek shipping community, who control the 

world's biggest newbuilding orderbook, 

standing at the end of March at over 1,050 

vessels of some 75 mill dwt. 

"Currently, availability in Asian berths is 

scarce and the majority of the orderbook is 

slated for delivery post 2010, but this doesn't 

mean that newbuilding orders will wane. 

Strong global economic indicators could fuel 

further demand for shipping services and a 

new growth cycle could lurk just around the 

corner," said Michael. 

The party gets under full swing on Friday 

30th May when the regular sailing tournament 

takes place for the Posidonia Cup. This will be 

held in Faliron Bay, Piraeus and this year the 

organisers have included a new single sailing 

route and an additional category. 

The LR sponsored regatta is expected to 

attract more than 50 boats in four sections - 

performance division, standard division, IRC 

division and classic yachts division. 

The following day -Saturday 31st May - 

sees the start of an inaugural soccer 

tournament, which will be held at the 

Karaiskaki Stadium at Neo Faliron, starting 

at 17.30. 

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Among the 12 teams taking part will be 

representatives of DNV, LR, OSG (bronze 

sponsor), Minerva Marine, Marichem 

Marigases and Danaos Shipping, plus the 

event's Gold sponsor Deloitte. 

The event's success has resulted in 

increased interest from sponsors, the 

organisers claimed. Included in the silver 

category are GAC, Inchcape Shipping 

Services, and the Royal Bank of Scotland, 

while other bronze sponsors are Atlantic 

Shipping Services and Wilhelmsen 

Ships Service. 

The exhibition itself will be opened on 

Monday evening - 2nd June - in a 

ceremony due to start at 18.30, 

which is by invitation only. The 

main event then takes place from 

Tuesday through Friday 6th June 

opening at 10.30 and closing at 

19.00, except on Friday when 

the exhibition will finally close 

at 17.00. 

Among the shipping luminaries 

due to put in an appearance are 

the Greek Shipping Minister 

George Voulgarakis, Joseph 

Boakai, Vice President of 

Liberia, Jim Fitzpatrick, the 

UK's Minister of State for 

Transport, Dr Austin Gatt, 

Malta's Minister for Transport 

and Communications, Binyah 

Kessely, Liberia's Minister of 

Mercantile Marine, N Nicolaides, 

Cyprus Minister of 

Communications and Works, 

Dion Foulkes, Bahamas Minister 

of Maritime Affairs and Labour, 

Xu Zhuyuan, Chinese Vice 

Minister Ministry of 

Communications, Angelique 

Weeks and Margaret 

Ansumana, Liberia's Deputy 

Minister of Mercantile Marine, 

Efthymios Mitropoulos, IMO 

secretary-general, Sean 

Connaughton, maritime 

administrator of the US 

Department of Transportation, 

Leonidas P Raptakis, US 

Senator, Spyros Polemis, 

chairman ICS/ISF, Nikos Fistes, 

president of Intertanko, Nikos 

Papadakis, president of 

Intercargo, Filippos Embiricos, 

president of BIMCO and LLM 

Liang, Mayor of Zhoushan 

Municipal Government 

in China. 

TO 

32 



Posidonia exhibitors 

There are obviously far too many 

companies and organisations 

exhibiting at this year's Posidonia 

exhibition to be included in 

TANKEROperator's roundup. 

However, we have included a few and 

apologise to the many that have been left out 

due to lack of space within the magazine. 

For example, most if not all the major class 

societies and several flag administrations will 

have booths, either independently or in their 

respective country pavilions. 

If one looks at the list of luminaries 

preceding this roundup, it will be noticed that 

there are several Liberian government officials 

named as attending. The reason for this 

probably has something to do with the fact 

that the Liberian Registry will be celebrating 

its 60th anniversary at Posidonia. 

The first Liberian registered ship was the 

tanker World Peace owned by Greek shipping 

magnate Stavros Niarchos. Since then Greek 

shipowners have supported the Liberian flag 

in great numbers and an invitation only 

reception will mark this event. 

Celebrating its 50th anniversary at 

Posidonia will be the US search and rescue 

organisation AMVER. Exhibiting for the 

eighth time, the organisation said that it is the 

only place where it is possible to have access 

to shipping people to promote participation in 

AMVER's search and rescue system. 

Dutch marine equipment specialist AEP 

Marine Parts will be launching a range of 

marine antennas aimed at the deepsea sector. 

As well as antennas, AEP will be introducing 

a 23 inch nautic monitor, which is fully 

certified and complies with IEC60945 and 

ECDIS standards. 

Paris-based AXSMarine will launch a new 

web-based sale and purchase tool. AXS 

specialises in chartering tools and database 

solutions and by taking a stand the company 

said that it hopes to cement its position as the 

leading internet-based chartering tool and 

database provider to the shipping and 

shipbroking industry. 

Greek bunker and lubricants trader Baluco 

will be demonstrating LUBCARETM. 

This is a used lubricant monitoring 

programme designed to provide a clear picture 

of the condition of used lubricating oil and 

machinery found in vessels' engines. 

The company claims that this offers lube 

life optimisation, engine maintenance 

forecasting requirements and it also extends 

the equipment's life span, while minimising 

downtime. 

Dubai-based GMMOSTECH and 

GRANDWELD, part of the GMMOS group, 

said that 80% of its business comes from the 

international shipping market and it hoped to 

increase this exposure still further. 

One of the leading class societies at 

Posidonia will be Germanischer Lloyd (GL). 

GL will be presenting what it calls - 

Environmental Protection Put into Practice - 

the CO 2 -Index. 

The class society has launched a prototype 

CO 2 -index, based on MEPC/Circ.471. This 

index is available for all GL classed ships. 

Each shipowner and management company 

can check the complete survey status of their 

GL classed fleet. 

The CO 2 emission will be measured on the 

basis of installed power, consumed fuel and 

transported cargo. Computed index values can 

be compared to other ships' indices and 

eventually be used to minimise emissions 

from transport. 

The index can be used today to record fuel 

consumption, transported cargo and distance 

between two consecutive ports. With carbon 

emission factors specified by IMO, the CO 2 - 

index is calculated for each voyage and later 

averaged for a still to be defined period (a 

year might be practical). At the end of the 

period, a GL surveyor will check the recorded 

data and eventually issues - on behalf of a flag 

state - a certified CO 2 -index which is then 

valid for the next period. 

If data for more than one vessel is entered 

into the online tool - visible for the owner and 

The opening of 

Posidonia 2008 will take 

place on Monday 2nd 

June at 18.30. 



manager of a particular vessel or fleet - a 

comparison of CO 2 -indices across the fleet is 

possible. 

GL said that this function in particular is 

expected to trigger a learning effect, as 

differences in fuel consumption will be made 

explicit and more transparent with the data 

associated to each vessel and voyage segment. 

German deck machinery supplier Hatlapa, 

has more than 85 years' experience in supplying 

deck machinery, towing winches, research 

winches, compressors and steering gear. 

The company can offer worldwide customer 

service, technical advice and support through 

any one of 42 agencies in 35 countries. 

Today, Hatlapa accounts for all the 

equipment, deck machinery, steering gear, 

compressors and cranes on around 12,000 

vessels worldwide. 

Dutch equipment organisation, Holland 

Marine Equipment (HME) is organising the 

Holland Pavilion at Posidonia. 

The Holland Pavilion is situated in Hall 4 

and will be officially supported by the Dutch 

government. 

This year, the Holland Pavilion not only 

consists of participants from The Netherlands 

but also from overseas parts of the Kingdom. 

For the first time it will include five 

participants from Curacao. 

Participants in the Holland Pavilion are: - 

Aegir Marine, Curacao Ports Authority, 

Curacao Towage, Curacao Drydock, Cur Oil, 

Damen Shiprepair Rotterdam, Damen 

Shipyards Gorinchem, Deno Compressors, 

Miami Diver, Serdijn Ship Repair, Smits 

Neuchatel Marine Department, TurboNed, van 

West-Holland and Winteb. 

On Thursday 5th June, the Royal 

Netherlands Embassy in Athens and HME will 

organise a network reception at the Athens 

Golf Club (Glyfada). 

Another class society regularly exhibiting at 

Japanese shipyard Universal Shipbuilding delivered the Aframax Rio Genoa to ABS class 

last year. 

Posidonia is the Indian Register of Shipping. 

The register boasts a holistic portfolio of 

services, including statutory surveys, 

classification and certification, nonclassification 

and technical services. 

Also provided are design evaluations, 

inspection and certification services, technical 

investigation and advisory services, risk 

management and safety audits. 

One of the flag administrations to exhibit 

will be the Isle of Man, which will take this 

opportunity to brief shipowners about its latest 

changes, the administration said. 

These have been introduced to render the 

registration process more cost-effective. The 

new policy waives restrictions on pre-registry 

survey requirements and also extends the age 

limit on vessels to a further five years. 

Another regular at Posidonia is the Japan 

Ship Exporters Association (JSEA), which 

in co-operation with the Shipbuilders' 

Association of Japan (SAJ), will be 

promoting its hull forms and designs. 

The 12 leading Japanese shipbuilders will 

be sharing the area with ClassNK, which will 

be financed by the Nippon Foundation. 

Leading UK-based navigation equipment 

supplier Kelvin Hughes will be showing off 

the company's newest products and services. 

Demonstrations will be conducted on the 

stand on the new products and services, some 

of which will be launched shortly. 

At this year's Posidonia Exhibition SAM 

Electronics, an L-3 Communications 

company, will feature its latest navigation aids 

and automation hardware from its extensive 

product portfolio. 

Exhibits will include the BSH and USCG 

type-approved Multipilot 1100 multi-function 

navigation workstation combining ARPA 

radar, ECDIS, conning and automatic steering 

control functions. 

Also featured will be the similarly typeapproved 

Chartpilot 1100 ECDIS system 

SAM Electronics Ship 

Control Centre. In 2005, 

the company opened a 

service station in 

Greece in co-operation 

with its local agent – 

EPE. 

34 



developed for planning, navigation monitoring 

and conning station operations and designed 

for either desktop or console mounting. 

Multipilot and Chartpilot exhibits are housed 

in award-winning design consoles. 

Automation exhibits include the MCS 2200 

integrated control assembly with newlydeveloped 

standardised modular workstations 

providing rapid acquisition, processing and 

display of data while also extending and 

simplifying all main ship operating functions. 

Automation demonstrations will be possible 

through a desktop Panel PC. 

SAM Electronics will also feature its 

alternative maritime power (AMP) Shore 

Connection System (SCS). 

SAM Electronics will be featured on its 

local agent, Environmental Protection 

Engineering´s (EPE) stand (No 212). 

Together with EPE, SAM Electronics opened 

a service station in Greece in 2005 to be 

closer to its Greek customers and which is 

increasingly carrying out service activities 

and retrofits on tankers, as well as other 

ship types. 

Tamrotor Marine Compressors (TMC) 

will exhibit at this year's Posidonia at the joint 

stand of Alpha Marine Engineering, TMC's 

agent in Greece. 

TMC will exhibit the TMC Smart Air® 

frequency controlled marine compressor. In 

addition to this, TMC personnel will be 

present to provide information on other items, 

such as TMC's new high-capacity compressor 

and the TMC spare part kits, which is claimed 

to make maintenance of the compressors 

easier and cheaper. 

TMC Smart Air® - frequency controlled 

compressors: saves energy costs and 

significantly reduces CO 2 emissions, the 

company said. Frequency control has been 

used on sea water and fresh water pumps on 

board ships for years. 

Energy costs make up to 80% of 

compressed air cost. By using a frequency 

controlled compressor, you can, in most cases, 

save more than 40% energy, TMC said. 

A variable speed compressor is equipped 

with a frequency-controlled motor. This 

enables the compressor to adjust the 

compressed air production precisely according 

to the compressed air consumption. 

Some of the benefits by using TMC Smart 

Air® frequency controlled compressors are: 

The frequency controlled compressor is 

controlling the capacity and power 

consumption precisely to the air demand. 

This means 35 - 40% energy saving - 

which also means a reduction in CO 2 

emission. 

Constant pressure in the network at all 

times will minimise the power 

consumption and reduce the wear on the 

compressor. 

Soft start will increase the lifetime on the 

transmission such as belts and couplings 

and give lower pressure and less 

movement on all parts. 

This leads to reducing the life cycle cost by 25 

- 30%, TMC claimed. 

This year, TMC is also introducing a new 

compressor designed to handle large 

capacities - the TMC 105-235. 

The unique design, with all high elements 

placed at one end, allows for installation in a 

smaller/lower area than with competing 

compressors, TMC claimed. Also, all service 

points are accessible from one side, which 

means that placement is flexible not only in 

terms of height but also in terms of 

horizontal space, as it is not necessary to be 

able to access the compressor from more 

than one side. All canopy walls can 

be removed. 

For many years, TMC has advocated the 

use of original spare parts. In all sectors of the 

ships equipment industry, non-original spare 

parts are becoming more and more 

sophisticated and identical looking, but the 

risk is still the same. 

Material specification is often rationalised, 

resulting in rapid wear, compromised 

performance, poor reliability, higher oil and 

fuel consumption and even component 

damage or system failure. 

To make it even easier for the ships to 

choose original TMC spare parts for their 

compressors, TMC has introduced spare part 

kits. These contain all parts that should be 

replaced after a certain number of running 

TMC’s new high capacity compressor. 

hours/years, and they also come with 

instructions for changing the parts. 

Benefits of using these kits include - lower 

price per part than when purchased item by 

item, time saved on ordering and checking 

and certainty of getting all necessary parts - 

and no unnecessary parts. This means there 

will be no unscheduled stops due to 

missing parts. 

Included in the range on offer is the 1,500 

hours/one year kit, oil change kit, separator 

kit, etc. TMC said that these kits are available 

for all the company's compressor models. 

At Posidonia, Transas - a world-leading 

developer and supplier of a wide range of 

software solutions- will focus on integration 

of its current technological innovations. 

Transas will present the INS (Integrated 

Navigation System) as an on board system 

and INS operational simulator training, and 

talk about the benefits which come from 

their association. 

Training using a Transas NTPro 4000 

navigational simulator may be conducted in 

the class-room with PC's running the same 

INS software as the one supplied on 

board ship. 

An exact TINS (Transas INS) system 

(navigational bridge simulator) replica can be 

installed, enabling the trainee not only to learn 

the system's functionality, but also the 

appearance of the system on board. 

To achieve the training objectives, TINS 

sensor data maybe either simulated from the 

simulator or by pre-recorded TINS logs. This 

option will also be presented by Transas 

specialists at Posidonia this year. 

Also the concept of integration will be 

presented with Transas improved generation 

of on board equipment - a new 4000 series 

Navi-Sailor ECDIS (multifunction display), 

Chart-Radar and Navi-Conning. 

Transas' Navi-Sailor ECDIS 4000 (MfD) - 

the kingpin of the series - combines typeapproved 

ECDIS, Chart-Radar, Conning 

Display, the Chart Assistant utility and SPOS 

weather module giving the navigator the 

option of switching between applications at 

the touch of a button. 

The improved functions of every system 

combined together lead to an unprecedented 

multiplicity effect, the company said. The 

navigator-friendly environment for the 'one 

man bridge' operation reduces workload and 

stress, while chart correction, route and user 

database synchronisation is available at all the 

workstations and applications; and the sensor 

redundancy and dual network ensures data 

integrity and reliability for network 

configuration. 

TO 


TECHNOLOGY - SHIP DESCRIPTION 

A product tanker 

for all seasons 

The fourth in a series of innovative Ice Class Panamax products tankers (LR1) left the 

Brodosplit shipyard in Croatia on 7th May to load her first cargo in Turkey. 

Built for interests connected with 

Gothenburg-based Marinvest, the 

74,999 dwt product tanker Mariann 

was designed by Marinvest and is 

fitted with several innovative features. 

Mariann is of double hull construction and 

being designated 1A Ice Class by DNV, means 

the vessel can sail through ice of up to 1 m 

thick. This should make year round Baltic 

operations possible as products are exported 

from ports such as the Russian terminals at 

Primorsk and Vysotsk as the Russians wish to 

avoid using the ice free ports in Latvia and 

Lithuania to cut costs. 

Marinvest claimed that the vessels' 

operating costs were the same as for non ice 

class tankers. 

She has been designed to DNV's older 

notation meant for 20 years' trading in the 

North Atlantic, which is equal to 25 years 

under the recently introduced Common 

Structural Rules (CSR). 

Her full class notation is - DNV +1A1, 

Tanker for Oil, ESP, ICE 1A, E0, NAUT-OC, 

LCS-DC, VCS-2, COAT-2, ETC, TMON, 

Nauticus (Newbuilding). 

She and her sisters have been built to 

Panamax dimensions and have a cargo capacity 

of 85,659 cu m, which means that the vessels 

can load up to 55,000 tonnes of naphtha. 

Marinvest had found that many LR1 types do 

not have sufficient capacity to load low density 

cargoes, such as naphtha and condensates. 

The full deadweight of 74,999 tonnes at a 

scantling draft of 14.2 m allows for a full 

cargo of diesel. For cargoes having a density 

of up to 0.87 of the full volume, 83,900 cu m 

at 98% load can be lifted, which includes 

cargoes such as gasoline and diesel. 

At 61,000 dwt on a design draft of 12.2 m, 

a large cargo carrying capacity is available for 

shallower ports and harbours, which reduces 

the need for lightering operations. The vessel's 

overall length of 228.6 m is also claimed to be 

an important factor in some ports and 

harbours, especially in the US, due to current 

berthing restrictions. 

The manifold height of 14.5 m in ballast 

makes it easier for the vessels to call at more 

terminals as in many places the loading 

system can only accommodate manifolds of 

up to 15 m in height. 

Each vessels has been fitted with 12 cargo 

tanks, two slop tanks and a residual tank. The 

slop tanks can be used for cargoes and their 

residues will be contained in the residue tank. 

One of these vessels' innovations is that 



Mariann’s deck was covered with two extra coatings to mitigate the threat of corrosion 

and thus reduce maintenance costs. 

they has been fitted with corrugated bulkheads 

and with a large cubic metre tank capacity, 

this gives them added flexibility to load larger 

volumes of low density cargoes, such as 

naphtha and condensates, Marinvest claimed. 

Also by using Framo submerged pumps and 

deckheaters, a variety of cargo parcels can be 

shipped. High discharge rates can also be 

achieved as up to six cargo pumps can be used 

simultaneously and even more with the right 

mix of lighter cargoes. 

Heated cargoes can be handled efficiently 

without the need to fit heating coils, which 

would make the task of tank cleaning that 

much more difficult. The cargo and slop tanks 

were coated with Sigma Guard 745 phenolic 

epoxy, which is claimed to give good resistance 

to all types of cargoes, while the ballast tanks 

were treated with Sigma Prime 800 epoxy 

coatings and they fulfil the forthcoming IMO 

Principal Particulars Mariann 

rules for ballast tank coatings. 

As for the hull, this was coated with Sigma 

Ecofleet 290 tbt free self-polishing antifouling, 

while the deck has been covered with 

two extra coats to avoid corrosion and to 

reduce the cost of maintenance. Cathelco 

supplied the cathodic protection system. 

Marinvest claimed that with the combination 

of the cargo capacity together with clean 

internal areas, cargo pumping and heating, plus 

the tank cleaning arrangements, these vessels 

are more flexible that most of the other product 

tankers in the Panamax range. 

A Saab tank gauging system was installed 

giving real time data as was a Lyngso 

automation system. Teknotherm supplied the 

vessels' HVAC system. Fixed tank cleaning 

machines were supplied by ScanJet and Jowa 

supplied the oily bilge water separator. 

Environmental and safety issues have also 

been built into the design. For example, all 

the fuel and diesel tanks have double sides 

and bottoms, while all the service and engine 

room storage tanks were designed with a 

cofferdam separating them from the vessels' 

outer skin. Marinvest said that this design 

exceeded the forthcoming IMO requirements, 

which will make double skin for bunker tanks 

mandatory. Even the lubricating oils are kept 

in a protected location. 

To further enhance safety, Marinvest has 

designed a 'take-me-home' system for 

emergency propulsion, which is claimed to be 

the first of its kind to be fitted to a 2-stroke 

main engine. 

Class Notation…DNV+1A1, TANKER FOR OIL, ESP, ICE 1A, E0, NAUT-OC, LCS-DC, VCS-2, COAT-2, ETC, 

TMON, NAUTICUS (NEWBUILDING) 

Length, overall 

228.50 m 

Length, bp 

220.00 m 

Breadth, moulded 

32.24 m 

Depth 

20.45 m 

Design draft, moulded 

12.20 m 

Summer draft 

14.18 m 

Deadweight at design draft 

61,280 t 

Deadweight at summer draft 

74,999 t 

Main engine Brodosplit MAN 6S60MC-C 

Output 

13,560 kW at 105 rev/min 

Trial speed at 85% MCR 

16.4 kn 

GRT 42,835 

NRT 22,045 

Tank Capacities 

Cargo at 98% 

83,960 cu m 

Ballast at 100% 

31,818 cu m 

HFO 

2,228 t 

MDO 

164 t 

Fresh water 

245 cu m 

(plus 425 cu m for tank washing) 

Marinvest Fleet Deployment 

Name dwt built charterer 

Kirsten 83,600 88 Waterfront 

Northern Bell 83,600 90 LR 1 Pool (TORM) 

Marinex 31,206 94 Waterfront 

Eternal Diligence* 74,000 06 LR1 Pool (TORM) 

Eternal Pride* 74,000 06 LR1 Pool (TORM) 

Marilee 74,999 06 Eiger Shipping 

Maribel 74,999 07 Eiger Shipping 

Mari Ugland 74,999 08 LR1 Pool (TORM) 

Mariann 74,999 08 LR1 Pool (TORM) 

Yd No 456** 74,999 08 LR1 Pool (TORM) 

Yd No 457** 74,999 08 LR1 Pool (TORM) 

*Chartered in 

**To be operated in LR1 Pool unless long term timecharters 

arranged elsewhere. 

38 


Marinvest provides uncompromised quality as 

manager for international investment consortia 

of which Skagerack Invest is the largest. 

www.marinvest.se 

Marinvest specializes in larger 

product tankers and has designed, 

contracted and supervised the 

building of the Marinvest class 

LR1, ICE class 1A, product tankers. 

Marinvest manages seven existing vessels 

transporting all types of refined petroleum 

products plus easy chemicals and vegetable oils. 

Marinvest will take delivery of a further pair of ICE 1A, LR1 product 

tankers completing a series of six ICE classed environmentally friendly 

modern product tankers with focus on flexibility. 

Marinvest has since 2004 a productive and mutually rewarding cooperation with Sirius 

Rederi, a shipowning company from Donsö with the same focus as Marinvest on quality.

1 

SW L 15t 

5,0 -25,0m 


Tank capacity and general arrangement drawings. 

WINCH 

ONLY 

40 



Using the hydraulic power from the Framo 

cargo pumping system (see page 46), the so 

called PTI can power the tanker at a speed of 

around nine to 10 knots, depending on the 

weather conditions. When combined with a 

controllable pitch propeller (CPP), this system 

gives good manoeuvrability and power 

control, Marinvest said. Thus propulsive 

power can also be maintained during engine 

shut downs for maintenance purposes. 

Marinvest has patented this system and claimed 

that connecting it is easy and only takes between 

10 and 20 minutes to attach (see page 43). 

Ballast water piping has also been arranged 

for the fitting of a future ballast water 

treatment plant, once the final approval is 

given by the IMO. Marinvest said that that 

until a greater number of systems have been 

type-tested and the results published, the 

company will continue to use standard water 

exchange systems. 

A Rolls-Royce Kamewa CPP was chosen to 

enhance the vessels' performance in ice. It is 

an anti-clockwise (right handed) 4-bladed 

propeller having a diameter of 6,800 mm. 

Marinvest explained that a CPP gave a better 

thrust when operating at low speed in ice 

conditions and were also less prone to damage 

as the blades always hit the ice with the 

thicker edge leading. The CPP can also 

optimise performance during part load 

conditions and gives extra manoeuvrability in 

harbours and while operating at single buoy 

moorings, the company explained. 

The design of the hull was also optimised 

with transverse ice framing to reduce the 

weight increase caused by ice strengthening. 

The reduced weight will reduce fuel 

consumption and can mean the option of a 

larger cargo carrying capacity at a given draft. 

By opting for a CPP at the design stage, the 

size of the main engine could be the same as 

that used for open water operations, meaning 

that by not fitting a larger engine, the 

operating costs can be kept at the same level 

as for ice class vessels of the same type. The 

engine need not go into reverse for the vessel 

to go astern using this system. 

The Rolls-Royce steering gear is an electrohydraulic 

rotary vane type. 

Propulsion 

Each of the quartet is powered by a Brodosplit 

MAN 6S60MC-C, 2-stroke, crosshead type, 

non-reversible, six-cylinder, 600 mm bore, 

2,400 mm stroke diesel engine, developing 

13,560 kW at 105 rev/min. 

Three generators driven by MAN 6L23/30H 

diesel engines, each developing 1,137 kVA 

(910 kW) at 900 rev/min, make up the 

auxiliary machinery. An emergency generator 

is also fitted driven by a 310 kVA (248 kW) 

diesel engine. 

A foam fire fighting system was fitted in 

the engine room, which is claimed to be safe 

and environmentally friendly. The use of 

high expansion foam is an efficient, 

environmentally friendly tool as it is safeto 

release while the crew is in the vicinity as it 

will not be a danger to their health and 

reduces the time needed before initiating 

fire fighting efforts when compared 

with CO 2 . 

The Blohm + Voss propeller shaft stern 

tube seal has been fitted with an air pocket 

to eliminate the risk of oil leakages into 

the sea. Leakage from propeller shafts is 

one of the remaining 'oil into water' problems 

at sea. 

Sperre provided the starting air compressor, 

while TPK-NOVA supplied the boilers. 


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 


Navigation 

On the bridge, the vessels were fitted with a SAM Electronics 

integrated navigation system with a pilot-co-pilot arrangement 

utilising dual ECDIS for paperless navigation. The bridge equipment 

and layout has been designed for a one-man bridge operation to 

NAUT-AW class notation. However, as this is not possible today, this 

class notation was not included on the certificate, but all the 

equipment necessary is fitted. 

Automation systems have been fitted to the engine room and for 

cargo handling, while an always on-line C-band SEVSAT satcom has 

been included giving internet and e-mail access 24/7 for the seafarers 

and enables efficient communications between ship and shore. This 

communication link also enables remote analysis, upgrade and repair 

on different systems on board possible. 

The vessels are also fitted with an Inmarsat Fleet 77, a mh/hf 

transceiver, DSC scanning watch receiver and a Satcom C unit with 

VDU, keyboard and printer, two SAT EPIRBS, plus radiotelephones/ 

telephones and transponders. 

The bridge has been designed for an almost 360 deg vision and is 

offset to allow vision to the stern, a necessity when transiting the 

Panama Canal. 

For mooring purposes, 16 winches have been provided as it was 

found that many terminals were now asking for eight plus eight 

mooring winches to be used. A MacGregor hose handling crane has 

been installed amidships. 

The Mariann has been built with a 'Green Passport' in mind as all 

the dangerous materials to be found on board have been listed. 

The first vessel in the series - Marilee - was delivered in 

September 2006. She was followed by the Maribel in April 2007 and 

the Mari Ugland in February of this year. The Mariann was delivered 

last month. 

All the vessels are technically managed and crewed by Thome Ship 

Management in Singapore, with whom Marinvest has had a working 

relationship for several years. 

Thome has a controlling fleet manager looking after Marinvest's 

interests and each superintendent should have responsibility for a 

maximum of three vessels. The shipmanager has also put three cadets 

on each vessel - one engineer, one deck and an electrician adding to 

the 23 crew already on board. Marinvest has its own manning pool 

within the Thome organisation. 

The vessels have accommodation for 30 persons, plus six Suez 

Canal riding crew. 

Thome is shortly to join Intertanko's Tanker Officer Training 

Standard (TOTS) and Lars Mossberg, Marinvest ceo used to sit on the 

organisation’s vetting committee and is now a Council member. 

Mossberg explained that the reason for opting for Ice Class came 

from a charter requirement from Finnish oil company Neste in 

October 2002. 

Adding to the four in service, another two vessels in the series 

are currently under construction at Split. One (No 456) is already 

afloat while the other (No 457) is due to be launched at the 

beginning of July. 

Marinvest intends to have three drydocks every 10 years policy on a 

four, three and three years basis and the vessels could be converted into 

IMO III types in the future if necessary. 

Mariann is one of three, plus two chartered in Panamaxes, 

operating in TORM's LR1 pool. She was fixed for her first clean 

cargo, loading in Turkey for the Persian Gulf and having left the 

yard to undertake trials of its PTI system on 7th May called in 

Greece for bunkers. 

TO 



‘Help Me Home’ drive for slow speed diesel engines 

Cargo owners and charterers are 

increasingly focusing on safety, 

including the operation of the 

main propulsion machinery. 

A certain number of ships with geared 

medium speed engines have been fitted with 

'help me home' emergency drive, usually by 

means of an electric motor connected via a 

clutch to a suitable pinion shaft in the gear 

box (PTI). In normal service the motor serves 

as a shaft generator (PTO). 

The installation of emergency drive in a 

ship fitted with a slow speed main engine 

requires a different solution. This is due to the 

high torque, high power and low rev/min, both 

in normal and emergency mode. 

For its four newbuildings at Brodosplit, 

Marinvest has developed a different type of 

emergency drive for slow speed main diesel 

engines. The system works equally well with 

fixed pitch and CP propellers. 

Apart from being an emergency drive 

system, it may also allow maintenance work 

to be carried out on the main engine with the 

emergency drive system being on stand-by 

during loading/discharge operations. 

The emergency drive power is taken from 

the hydraulic system for the cargo discharge, 

with a hydraulic flow of 5,700 litres per min 

at 250 bar giving about 2,400 kW. Four 

Hägglunds Compact high torque hydraulic 

motors drive a drum on the intermediate shaft 

by means of a chain drive at about 65 rev/min. 

The drum is normally free from the shaft. In 

emergency drive mode the drum is connected 

to the shaft by friction bolts allowing a 

connection at any angular position. 

The main engine must of course be 

disconnected from the shaft. This is achieved 

by means of a special disconnector located at 

a flange in the intermediate shafting. The 

disconnector will allow free rotation of the 

intermediate shaft and propeller with the main 

engine at stand still. At the same time the 

propeller thrust will be transmitted to the main 

engine thrust bearing. The disconnector is 

relatively small having a length 750 mm and a 

diameter of 1,000 mm. 

The ‘help me home’ PTI system. 

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The CPP, shaft and PTI system. 

The disconnector transmits the propeller 

thrust by using two spherical roller bearings. 

Between the disconnector and the shaft flange 

there is a gap of 5 mm. The shaft torque in 

normal mode of operation will be transmitted 

across the gap by 10 cylindrical dowels fitted 

radially in grooves in each flange surface. The 

flange bolts are not fitted bolts but have a 

liberal radial play. 

When the bolts have been tightened the 

shaft torque in normal drive mode is being 

transmitted across the gap by shear forces in 

the radial dowels. When the nuts of the 

flange bolts have been released the bolts can 

easily be unscrewed by hand. There will be 

no problems encountered such as the 

withdrawal of fitted bolts. Following this, 

the radial dowels are also taken out. The 

propeller is now free from the main engine 

and may be rotated by hydraulic motors, or 

Brodosplit is also building tankers for Tankerska Plovidba. 

another drive arrangement along the 

intermediate shaft. 

The engine room staff can change over to 

emergency drive in less than 20 minutes, 

using ordinary hand tools, even given a shaft 

of diameter of 500 mm. The system weighs 

around two tonnes. 

Sea trials have confirmed a speed in 

emergency drive mode of more than 10 knots 

with only the auxiliary machinery running. 

Marinvest chose a chain drive to transmit 

power to the intermediate shaft. Other 

solutions can also be used. This was chosen 

since there was a significant hydraulic power 

already available on board. In other cases 

electric drive may be used. 

This disconnector is patent protected and is 

the property of Marinvest Engineering. The 

company said that it is keen to invite 

prospective licensees and other interested 

parties for discussions on marketing this 

system to third parties. 

TO 

Marinvest chose a 

chain drive to transmit 

power to the 

intermediate shaft. 

44 



Marinvest – a history 

Marinvest can trace its history 

back to 1988 when Lars 

Mossberg founded the company. 

He had left his previous position 

as executive vice president of 

Zenit Shipping. 

In 1990, Per Johansson joined Mossberg as a 

partner bringing with him financial expertise 

and today he is Marinvest's cfo. 

Some seven years later, Marinvest attracted 

investors to form LR Shipholding of Bermuda 

specifically to purchase the LR1 product 

tankers - Northern Bell and Panda. In 2000 

and 2001, additional Panamax tonnage was 

acquired, which entered TORM's LR1 pool. 

In 2004, LR Shipholding gave Marinvest 

the mandate to order the four vessels from 

Brodosplit, Croatia. In connection with this 

order, LR Shipholding formed Skagerack 

Invest and its 75% owned subsidiary, LR 

ICE Shipholding. 

During the spring of 2006, Skagerack 

agreed to acquire another two LR1s from 

the shipyard. 

Today, Marinvest is an active member of 

Marinvest at a Glance 

1988 Founded by Lars Mossberg 

1988-89 Invested in Panamax 

bulkers 

1989 Purchase of Northern Bell 

newbuilding contract 

1992 Purchase of Maribel 

1994 Purchase of Marilee 

1996 Sale of Marilee 

1997 Concentrated on LR1s 

Panda purchased 

2000 Purchase of 50% in 

Kirsten 

2001 Purchase of Mariella, 

Maritina 

Intertanko and the Swedish Shipowners' 

Association and together with the 

newbuildings, manages eight LR1s valued at 

around $500 mill. Mossberg said he hadn't 

ruled out investing in another two LR1s in 

the future. 

The first of the newbuildings cost in excess 

of $40 mill each, but due to the enhancements 

fitted on board the latter two and the general 

increase in raw materials, the newbuilding 

costs had risen. 

Marinvest also has a 50% stake in Donsobased 

chemical tanker owner Sirius Rederi. 

All the LR1s under Marinvest's 

management are claimed to have "special 

advantages" over more standard tanker 

tonnage. For example, the Kirsten and 

Northern Bell have the chemical certification 

IMO III, which means that they can carry 

vegetable oils and easy chemicals, including 

methanol, apart from petroleum products. 

As for employment, the Northern Bell, Mari 

Ulgand and Mariann, plus the chartered in 

Eternal Pride and Eternal Diligence are 

operating in the TORM managed LR1 pool. 

2003 Entered into two 

timecharter contracts with 

a 50% share in each 

2004 The four LR1s contracted 

at Split 

Maribel sold 

Purchase of 50% in Sirius 

Rederi 

2005 Purchase of 50% in Kirsten 

Panda sold 

2006 Delivery of Marilee 

2007 Delivery of Maribel 

Two more LR1s contracted 

Delivery of Marinex 

Sale of Maritina 

2008 Sale of Mariella 

Delivery of Mari Ugland 

Delivery of Mariann 

Marinvest’s Roger Karlsson and 

Lars Mossberg 

Kirsten is on a long term charter to 

Waterfront, a subsidiary of Methanex and is 

dedicated to the methanol shipment trade, 

primarily sailing in the Atlantic. 

The first of the Split newbuildings - 

Marilee- was handed over directly to Eiger 

Shipping, a subsidiary of Lukoil, on a three 

year timecharter. The charterer wanted the 

vessel for Baltic trading thus taking advantage 

of her Ice Class 1A status. 

Unless they are fixed to other interests, the 

two newbuildings will also join the LR1 pool 

once they are delivered this year. 

Marinvest also operates the 31,200 dwt 

tanker Marinex. 

Mossberg told TANKEROperator that the 

company preferred to be involved with LR1s 

due to their greater flexibility and would 

continue on that path. The companies involved 

own around 50% of the vessels with other 

private investors taking the remainder. 

He also said that he was a champion of 

continuous improvement and was chairman of 

Intertanko's vetting committee and has served 

his maximum term on the executive 

committee. Today he is a member of the 

Council. His company is ISO 9000:2000 

certificated. 

Commenting on the large chemical/ 

product orderbook, Mossberg said; "The 

devil lies in the detail", meaning that some 

of the vessels are more technically 

sophisticated than others. 

TO 



Brodosplit - a nervous future 

By and large, the five Croatian 

state owned yards are in a state 

of flux, not too dissimilar to the 

Polish shipbuilding industry. 

This is due to the forthcoming entry into the 

European union, whereby the yards 

theoretically loose their subsidies. 

"We have to learn how to adjust to the EU 

rules”, said Srecko Kurtovic, Brodosplit sales 

manager. The subsidies are currently running 

at 7% for 2008-09, dropping to 6% in 2010. 

However, the following year they will become 

zero under EU legislation. 

A restructuring programme has been put to 

the Croatian government while the possibility 

of privatisation has been discussed for several 

years Kurtovic thought that as a result, at least 

one yard could close. 

The shipyard employs about 3,000 people, 

while the whole Brodosplit group has 4,000 

employees on its books, plus sub-contractors. 

Kurtovic said that the aim of the yard was 

to concentrate on improving product ranges as 

much as possible, to improve efficiency and to 

be financially viable. Also the yard's 

equipment needed upgrading, especially the 

craneage. 

At present there are two slipways at Split - 

one up to Suezmax dimensions (the maximum 

size handled) and a smaller slipway of around 

160 m in length. The future of the smaller one 

could be in doubt if the restructuring 

programme gets the go ahead. 

The last vessel on its books is a Stena 'P' 

type products tanker, which is due to be 

handed over in the first quarter of 2010. The 

yard recently secured a couple of bulk carriers 

for domestic owners. 

Six 65,000 dwt Ice Class 1B Stena 'P's have 

already been handed over and including the 

last one, another four are due to be built. As 

well as the Marinvest and Prime Marine 

Management Panamaxes of which there are 

four to come, Brodosplit is building two 

Aframaxes for Zadar-based Tankerska 

Plovidba and two BC-52 type bulkers for local 

Split-based shipping company Jadroplov. 

At present, Brodosplit is looking to get 

back into the more sophisticated shipbuilding 

market, vessels such as dredgers, ropaxes, 

passenger ferries, reefers, offshore vessels 

and others, as it realises it can no longer 

compete with the rapidly expanding Asian 

yards for standard type vessels, such as 

bulkers and tankers. 

The yard claimed that it did not produce 

any standard vessels as such as the the inhouse 

design team will work closely with a 

shipowner to incorporate his of her ideas as 

was the case with the four Marinvest 

Panamaxes. 

"We prefer to build using a 'from design to 

delivery' strategy for all the vessels coming 

out of the yard. We believe the yard's tailor 

made approach to design is a very important 

aspect of the business,” Kurtovic said. 

Brodosplit’s sales manager Srecko 

Kurtovic. 

In 2006 and 2007, the Split yard delivered 

11 vessels of which 10 were product tankers. 

The remaining ship was rather unusual in that 

it was a 2,000 dwt product tanker/ro-ro hybrid 

built for Greek island operations. 

Framo pumping systems 

Norwegian pump designer and 

manufacturer Framo supplied of 

the complete cargo pumping 

system, including deck mounted 

cargo heat exchangers, for the 

six Split newbuildings. 

The cargo pumping system comprised 

following equipment: 

12 submerged cargo pumps, type 

SD300, each with a capacity of 1.000 cu 

m per hour. 

Two submerged cargo pumps, type 

SD150 for slop tanks, each of 300 cu m 

per hour. 

One submerged cargo pump, type 

SD100 for the retention tank, rated at 80 

cu m per hour. 

One transportable pump, type TK 150. 

Two submerged ballast pumps type SB 

400, each rated at 1,500 cu m per hour. 

Hydraulic power unit, comprising a 

combination of diesel/hydraulic and 

electro/hydraulic power packs, arranged 

on a common skid. Total rating of this 

power unit is 2,855 kW giving a 

discharge rate of 6.000 cu m per hour. 

Control /monitoring system for all 

pumps and hydraulic power unit. 

Complete hydraulic piping system. 

12 Deck mounted cargo heaters. 

The slop tank pumps can also be converted 

to cargo tank pumps. 

A Framo cargo pump. 

46 


One tank 

One pump 

One supplier 

Frank Mohn AS, located outside Bergen 

in western Norway, is the leading supplier of 

submerged cargo pumps to the world tanker market. 

More than 32.000 Framo submerged cargo pumps 

are in service onboard some 2.200 tankers. 

In 2007 alone 240 complete cargo pumping systems 

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tel. +47 55 999 000 - fax +47 55 999 380 

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TECHNOLOGY - SHIP DESCRIPTION IN PICTURES 

The cargo tanks were coated with phenolic epoxy. 

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48 


TECHNOLOGY - SHIP DESCRIPTION IN PICTURES 

Marinvest’s Yd No 457 on the slipway. 

The port of registry reflects the home of 

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Engine control room 

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TECHNOLOGY - SHIPREPAIR & MAINTENANCE 

A week in the life of 

a special VLCC 

The world's first double hull VLCC recently completed her third special survey, 

following 15 years in service.* 

On 28th February, the VLCC 

Arosa entered the No 1 drydock 

at Drydocks World- Dubai to 

embark on her third special 

survey under the watchful eye of Lloyd's 

Register's surveyors. 

Managed by Neda Maritime Agency 

(Lykiardopulo), Arosa was somewhat unique 

as she was the first double hull VLCC to be 

built when handed over by Hitachi Zosen in 

February 1993. She had a carrying capacity of 

291,000 tonnes when delivered. 

The latest drydocking was the culmination 

of a rolling survey programme, which started 

in 2007 and was carried out at sea, in 

Singapore where her cargo tanks were 

surveyed and in Fujairah where her ballast 

tanks were examined. 

At the time of her construction, in the 

aftermath of OPA 90, the IMO was still 

undecided on a standard for double hull 

construction and the concept was being met 

with considerable resistance from some 

quarters. 

For example, cracks had been experienced 

in single hull tankers and it was assumed that 

any cracks appearing in double hull tankers 

would result in a leakage of oil from the cargo 

tanks to the ballast tanks with the risk of 

pollution and even explosion. There was also 

the question as to how the confined double 

hull spaces would be maintained or properly 

inspected. 

Against this background, Neda placed an 

order for a single hull tanker with Hitachi in 

1989 with an option attached to change her to 

a double hull tanker. The IMO had set itself a 

deadline of 1991 to resolve the double hull 

debate and so the managers had to double 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50 



guess the outcome, in the end opting for a 

double hull design based upon noises coming 

out of the US. 

Neda claimed that it enjoyed excellent cooperation 

with LR and Hitachi on the project. 

To meet the challenge of operating the world's 

first double hull VLCC, Neda subjected Arosa 

to a strict maintenance schedule and 

standards. This was underpinned by the 

vessel's manning levels, which at the time 

could have been as low as 12 to look after the 

bridge, engine room, perform deck 

duties, oversee cargo control and 

staff the galley. Arosa was fitted 

with a fully automated engine room 

and a well instrumented bridge 

layout to comply with 12-crew 

regulations. 

However, Neda insisted on 

employing 35 persons on board. She 

carried an additional electrician and 

pump man and to keep on top of the 

hull, tank and machinery 

maintenance, the managers put a five 

strong coating and maintenance 

riding crew on board, which were 

permanently assigned to the 

inspection and maintenance of the 

coating system. 

Neda's naval architect, Gerry 

Vagliano, who was mainly 

responsible for the VLCC's design 

said that he had assured the 

managers that Arosa would reach her 

fourth special survey without the 

need of one kilo of replacement 

steel. On completion of her third 

special survey, Vagliano's forecast 

was still on target, it was claimed. 

He explained that the design team 

made several unilateral decisions. 

For example, the double bottom 

would be 3 m and the width of the 

side spaces 2.44 m, which later 

became an industry standard. 

Stringers in the ballast tanks were 

arranged in three levels, which could 

also be used as inspection and 

maintenance platforms. Also 

calculated was the number of tanks 

that could be damaged before the 

tanker's stability would be 

compromised. 

LNGC experience 

The inner hull was also built to the 

same strength as the outer one and 

the ship was specified with a raking 

damage over 75% of her length, 

which was in excess of previous 

class requirements. Problems, such as how 

to detect cracking in the cargo containment 

area, which would allow oil to seep into the 

ballast tanks was solved by following the 

example seen in double hull LNGCs. 

Dipping of the cargo tanks on a ship of this 

size would have been totally impractical, 

so Vagliano adapted the gas carrier system 

for testing a ballast tank's atmosphere for 

leaks, by adjusting it to be sensitive to crude 

oil gases. 

 

At the time, detractors were saying that 

cracking would occur between the inner and 

outer hulls. However, Vagliano explained that 

the team had the history of chemical tankers 

as a precedent and there were no cracks 

appearing in their double hull configuration. 

The design team also examined the 

theoretical arguments, which said that a 

tanker's integrity depended on the loads and 

stresses being continuous. Single hull 

tankers were always subject to the effects of 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SHIPREPAIR & MAINTENANCE 

Celebrating 50 years of service 

discontinuous load, purely by virtue of their design. 

On a single hull vessel, the run of the cargo wing tanks is broken 

twice on each side by four ballast tanks. When the cargo tanks are full, 

the ballast tanks are empty and vice versa. This causes undue stress on 

the hull plates especially in heavy weather as the plates covering the 

empty tanks flex causing cracking along the bulkheads that divide the 

full tanks from the empty ones. 

However, on a double hull tanker, this problem would not arise as the 

run of the outer ballast tanks are either continuously 

full or empty. 

Voyage Planning Regulatory Advisory Reports and Logs 

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with ballast management regulations. Designed for 

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treatment and discharge evolutions by port or tank. 

Importance of coatings 

Vagliano also stressed the importance of looking after the coatings. He 

explained that six months after delivery, the coating systems fitters 

continuously worked on board Arosa, looking for blisters and 

upgrading an maintaining the coating. It was the chief officer's 

responsibility to monitor the inspections, which proved to be a never 

ending job. 

While the vessel is in service, no uncoated areas are permitted. Every 

rusty edge is touched up as soon as it appears. This not only applied to 

the deck and deck fixtures, but also to the ballast and cargo tanks. 

When in a laden condition, the ballast tanks are regularly maintained. 

The access to all the tank areas was made possible by the addition of 

the stringers. Removable aluminium ladders had rubber covered ends 

fitted to protect them from damage. The main ladders between the 

stringers are of a strong construction and their coatings are strictly 

monitored for possible corrosion. 

This penchant for cleanliness is also extended to the pump room 

where on most tankers, a build up of oil residue is common as is 

sludge in the bilges. However, the rules on the Arosa require that 

the pump room be totally clean and being painted entirely in white, 

any contamination can clearly be seen. 

A similar regime applies to the engine room where clean deck 

plates are required and the bilges devoid of leakages. Discarded rags 

are not allowed, neither are temporary solutions as everything has to 

be repaired promptly. 

On deck, all the VLCCs hawsers and wires on the drums have to 

be covered with a canvas to protect them from the sun and spray. 

All the pipelines are marked with the last test and inspection dates 

and all valves and flanged joints are fitted with Denso wrapping for 

protection against corrosion, which is expensive but efficient, the 

company claimed. 

• Immediate compliance feedback based on geographicbased 

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• Under Development – Target Release September 2008. 

• Contact gbms@glosten.com for more information. 

The Dubai repair complex with Dubai Maritime City in the 

background. 


SHIPREPAIR & MAINTENANCE 

The Arosa's coatings were well maintained. 

For movement on deck, safe lines are marked by white lines and are 

coated with anti-slip paint, while all the obstacles are highlighted in 

bright yellow. The entire deck area around the anchor windlasses and 

mooring equipment on the forepeak are also similarly covered. 

During the drydocking, the propeller was removed and the tail shaft 

tested. In the engine room, the main engine fuel oil pumps, turbochargers 

and air coolers were all stripped down. The bilge water discharge system 

was also inspected. 

Arosa was scheduled to remain in Dubai for just seven days. The 

speed of the operation was helped by pre-survey planning co-ordinated 

by LR EMEA from its Asia offices in Singapore and in Dubai, which 

enabled much of the survey work to be undertaken while the tanker was 

still operating. The vessel also benefited from LR's condition assessment 

programme (CAP) service. 

As tankers get older, they have to have a CAP certificate and also 

have to satisfy MARPOL, SOLAS and major oil charterers' 

requirements and in the Arosa's case, the Greek flag regulations. 

LR's CAP includes the assessment of the hull structure, machinery and 

cargo systems. 

Disruption to Arosa's operating schedule was avoided by carrying 

out machinery inspections during a single voyage that ended with a 

cargo discharge. LR explained; "Participation in our CAP ultimately 

results in your ship acquiring an LR CAP rating. A ship which has been 

through the programme and achieves a high CAP rating is easily 

identifiable as being well maintained with many benefits for the owner 

and charterer." 

Inspection programme 

In 2006, Arosa was put through an advanced hull measurement and close 

up inspection programme conducted by LR. No diminution of steel, 

fractures or weaknesses were found, which earned her a CAP1 rating, 

which is the equivalent of a newbuild vessel for hull machinery and 

cargo systems. 

The method of close up cargo tank inspection involved a basic 

process by which the surveyor accesses every corner 

of the tanks' structures, which is called 'rafting' and not allowed while 

a vessel is in drydock. 



Pre-survey 

planning was 

co-ordinated by 

LR EMEA from its 

Singapore and 

Dubai offices. 

John Etherington, LR EMEA's senior 

surveyor at Dubai explained; "The 

procedure involves filling the tank with 

water, launching a dinghy into it and 

paddling around in it (to carry out the 

survey requirements). 

"You then have to climb out of the tank. 

The water is lowered, you go back in and do 

the next level down. No one stays in the raft 

in the tank when they are moving water," 

he concluded. 

This practice saves the expense and time 

of erecting staging inside the tank. However, 

it does carry all the attendant risks of 

operating in dark spaces surrounded by 

obstacles that at any time could tip a less than 

vigilant surveyor into heavily oiled and very 

deep water. 

Structurally, the ballast tank poses less of 

a challenge. Integral stringers running along 

the length of the ship and under the cargo 

tanks to the centreline provide safe 

companion ways down to the double 

bottom, which has a clearance of 3 m 

making inspection easy. 

However, the weather can play its part as 

the operation is relatively easy in 

temperatures of around 19 deg C when the 

Arosa was drydocked. But during the 

summer months, the heat normally varies 

between 45 deg and 55 deg C in Dubai. In 

the vessel's tanks this can rise to 65 deg C 

plus, meaning that after about 30 mins, a 

surveyor can become like a wet rag and heat 

exhaustion can set in. 

While in dock, apart from the new hull antifouling 

preparation and application, the other 

major job below the waterline is the removal 

of the propeller. The single cast bronze 

propeller is jacked off and then tested for edge 

damage, cavitation damage and cracks. The 

blade roots are inspected visually and by using 

ultra sound testing. 

Mike Darley, one of LR's surveyors in 

Dubai said; "Minor wear and tear can simply 

be ground clear, but there are limits to which 

you can grind edge damage smooth. Beyond 

that, with a single casting bronze propeller, 

you need to get a new prop. And that is not 

cheap, or easy to come by. A ship can be out 

of service for a long time if it has to wait for a 

new prop to be cast." 

This is followed by the tailshaft inspection. 

To accomplish this Dubai uses a technique 

called Magnetic Particle Inspection, which 

involves passing a current through the 

tailshaft, which for a VLCC can be anything 

from 800 cm to 1 m in diameter. It is then 

sprayed with iron filings, which are 

immediately magnetically trapped in any 

crack and show up as a dark line. 

Even relatively small cracks in a tailshaft 

will be aggravated by the torque created by 

the direction of drive from the engine and the 

force of water acting against the propeller. 

Naturally, any tailshaft failure would be 

catastrophic. 

Other new requirements were adhered to 

during the drydocking, including an oil 

Need anchors and chains? 

www.wortelboer.nl 

54 



major edict that for the vetting process, 

special chocks have to secure new 

vapour emissions collection system (VECS). 

The system will contain all the vapours 

from the cargo tanks and then discharge 

them ashore or into another vessel, instead 

of allowing the vapours to vent into 

the atmosphere. 

Meanwhile, Arosa's master Captain Costas 

Koulouris said that the activity going on 

around him at Dubai was like that of a factory 

floor. Apart from the general safety and 

environmental responsibilities, the ship is in 

the hands of the drydock superintendents. 

"Even to do the smallest job, we have to ask 

the drydock's ship manager for permission," 

he said. 

Arosa's management company Neda 

Maritime makes frequent visits to all of the 21 

vessels - eight tankers and 13 bulkers. Each 

superintendent has no more than three to four 

vessels under his responsibility. All the ships' 

officers are Greek and employed directly by 

the company. 

Neda claimed to be first company to 

introduce e-mail access to all the crew 

members. The crew can SMS and e-mail their 

Arosa's Captain Costas Koulouris likened the activity in Dubai to that of a factory floor. 

families and friends and this approach also 

gives the vessels more contact with the 

shore office. 

Following her stint in drydock, Arosa was 

fixed to load a cargo at Kharg Island for 

discharge in China. 

 

*This article first appeared in Tanker 

Focus, published by Lloyd's Register. 

TANKEROperator is indebted to LR 

and Neda Maritime for their kind 

permission to reproduce this article. 

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UMC opens in 

Singapore 

UMC's managing director, Alan 

Trevarthen said, "The move into 

Singapore is a natural 

progression as part of our 

expanding global footprint. Singapore's 

geographical location represents an important 

maritime hub where our core business of 

afloat maintenance and repair services will be 

maximised." 

Attracting some 130,000 vessel calls 

annually, Singapore has become a strategic 

port, with vast traffic of oil and chemical 

tankers, a leading shiprepair centre and nearly 

40 shipyards able to accommodate some of 

the largest vessels afloat. 

A comprehensive underwater engineering 

service is now available, including the mini 

pamper hull cleaning vehicle, which has been 

designed to successfully clean the new 

generation of silicone based fouling release 

coatings. 

Trevarthen continued, "Hull cleaning now 

represents a relatively small part of UMC's 

business, but we still clean over 400 ships per 

year around the world and have now 

successfully cleaned more than 100 with 

silicone based fouling release coatings. These 

coatings are a challenge, but the years we 

have invested working with major paint 

companies, commercial shipping and naval 

customers to hone our capabilities and gain 

their approval is now paying off. It is very 

satisfying to be able to introduce a proven hull 

cleaning system into Singapore." 

Earlier this year, underwater 

maintenance concern UMC 

International started 

operating in Singapore. 

The UMC/MUM partnership is not an 

entirely new union; the two companies have 

had an ongoing relationship of technology 

transfer and training for some 25 years. 

MUM's spread of commercial and naval 

customers and reliable resources provides a 

good base in Singapore to ensure that quality 

support is offered not only for routine 

underwater maintenance such as survey, 

propeller polishing and hull cleaning, but 

also the more demanding services such as 

the repair and replacement of damaged 

hull plate, rudders, seals, propellers 

and transducers. 

Steve Tan MUM's co-owner and director 

said, "The combined strengths of UMC and 

MUM will enable us to deliver an 

unparalleled quality and range of services to 

our customers at a competitive price. This is a 

very exciting development for all of us." 

Prop blade change 

Elsewhere, UMC Rotterdam has carried out 

an underwater propeller blade change on a 

37,048 dwt tanker at the port. 

Earlier this year, the Dutch subsidiary was 

called upon to carry out an underwater CCTV 

inspection of the four-blade propeller. 

This was done under the direction of the 

attending propeller manufacturer and DNV 

surveyor in order to determine the condition 

of a previously-reported crack and cavitation 

damage to the propeller blades. 

Once the inspection report had been 

verified, the UMC dive team performed an 

underwater changeout to a blade that had 

already been reported as damaged with 

cavitation of up to 25 mm deep. 

Some heavy-duty equipment including 

pneumatic cycles and hammers had to be 

employed in order to remove the unyielding 

blade bolts. A small section of the rope guard 

outer edge in-between the 10 and 2 o'clock 

position was cut off in order to make way for 

the new blade to be installed. 

During the underwater inspection, the 

UMC dive team was also tasked to carry out 

grinding repairs on reported crack to a 

second blade and arrange for non-destructive 

testing (NDT). 

The first ACFM crack examination, NDT 

on the grinded areas did not pass inspection 

and UMC divers were asked to polish the 

rough edges of the crack. 

Jean-Paul Engels, UMC continental 

manager said, "We were able to use our 

specialist underwater propeller polishing 

equipment to achieve a smooth surface finish, 

we can use abrasive sizes down to 360 grade 

grit to produce a finish of 0.5-microns CLA 

(0.5m Ra). After our polish the ACFM test 

•••• 

56 



“ 

“The combined strengths of UMC and 

MUM will enable us to deliver an unparalleled 

quality and range of services to our customers 

at a competitive price.” 

Steve Tan, co-owner and director, MUM 

was successfully completed and no cracks 

detected after the grinding work anywhere on 

the blade area in way of the grinded out 

crack," he concluded. 

Next, the new blade was lowered into the 

water and divers, using hydraulic tools, 

tightened the bolts while maintaining torque 

pressure. 

The propeller was then turned 180 deg and 

divers used compressed air to remove all 

water from inside the bolt holes. 

After closing the bolt heads the propeller 

was again turned 180 deg in order to gain a 12 

o'clock position. Divers then covered all 

” 

securing bolts and locking bars with a twocompound 

steel epoxy. Once the blade plugs 

were secured, UMC was then instructed to 

polish the propeller before a final DNV Class 

inspection was carried out. 

The underwater work took five days to 

complete. 

Trinidad move 

In another move, a recent partnership was 

formed between Trinidad-based Offshore 

Technology Solutions Ltd (OTSL) 

and UMC. 

This initiative was prompted during the 

latter part of last year, when UMC and 

OTSL collaborated to clean three LNG 

carriers that were laid up for a period of time 

in Trinidad. The combined success of 

UMC's mini pamper hull cleaning equipment 

to tackle these large vessels in a short space 

of time, prompted OTSL to form an alliance 

with UMC. 

Traditionally, OTSL provides diving, 

marine construction and ROV services to 

the offshore oil and gas industry, as well 

as offering local resources for engineering 

support. 

A comprehensive underwater engineering 

service is now available, including the mini 

pamper hull-cleaning vehicle, which has been 

designed to clean the new generation of 

silicone based fouling release coatings. 

This Caribbean partnership provides a good 

base to ensure that quality support is offered 

not only for routine underwater maintenance 

such as survey, propeller polishing and hull 

cleaning, but also for the more demanding 

services such as the repair and replacement of 

damaged hull plate, rudders, seals, propellers 

TO 

and transducers, the company said. 

 

 

 

 

 

 

 

 

 

® 

 


MARINE EQUIPMENT 

Deck Machinery 

Compressors 

Steering Gears 

World-wide Service 

Stand No. 356 

Uetersener Maschinenfabrik GmbH & Co. KG 

info@hatlapa.de 

www.hatlapa.de

TECHNOLOGY - EMISSIONS 

Intertanko examines 

MARPOL Annex VI 

During the Intertanko Istanbul event in April, the organisation’s Peter Swift and 

Dragos Rauta gave their take on the theme of emissions following the recent 

IMO announcement. (see TANKEROperator, May, page 4) 

MARPOL Annex VI revised 

regulation 14 on SOx and 

particulate matter (PM) ruled 

on compliance through the fuel 

only. Alternative methodologies were accepted 

as what were called 'equivalent measures'. 

The quality of marine fuel would also be 

further improved. However, there will be no 

shipboard measures to compensate a vessel 

that does not receive and adequate supply of 

the correct fuel. 

Guidelines should be issued to assess 

compliance if the Bunker Delivery Note 

(BDN) is challenged by Port State Control or 

subsequent laboratory test results. 

As for regulation 4 - Equivalent Measures, an 

administration may allow any fitting, material, 

appliance or apparatus to be fitted on board or 

other procedures, alternative fuels, or compliance 

methods used as an alternative to that required by 

the Annex providing that such methods are at 

least as effective in terms of emissions reductions 

as that required by the Annex. 

Intertanko explained that his meant that the 

administration and not the ship has to 

acknowledge that the alternatives- 

Have equivalent efficiency in terms of 

SOx, PM and NOx. 

Do not harm the environment. 

Operate within the requirements of the 

IMO guidelines. 

As for revised Regulation 18 this says that 

each party shall take all reasonable steps to 

promote the availability of fuel oils to comply 

with this Annex. If a ship is not compliant it 

should present evidence or records claiming 

that it tried to buy the compliant fuel in 

accordance with the voyage plan. 

A ship should not be required to deviate 

from its voyage and should not be delayed if 

evidence is provided and there should be no 

measures taken against such a ship. 

Also a ship should notify the administration 

and the relevant port of call each time a 

compliant fuel cannot be found. 

As for the records or evidence taken, this 

should include the bunker quotation and/or 

correspondence; voyage plan; BDN; fuel 

quality test report; notification(s); report or 

indication that obtaining compliant fuel would 

cause deviation, or undue delay to the ship. 

Intertanko said that the IMO secretariat 

should request the ISO to consider a revision 

of a marine fuel oil specification (ISO 8217) 

addressing:- 

Air quality. 

Ship safety. 

Engine performance. 

Crew health. 

These together with recommendations should be 

submitted to the IMO for future consideration 

and, if feasible, report to MEPC 58. 

Older engines 

Moving onto NOx emissions, on a pre-2000 

built engine, if it does not meet the Tier 1 

NOx emission limitations, it will be subject to 

measures only if there is an upgrading system 

certified by a party to MARPOL Annex VI, or 

only if it certifies that such a system reduces 

the emissions of that particular engine to Tier 

1 limits. 

Any upgrading system is to be considered as 

commercially available 12 months after a party 

to Annex VI deposits the notification on certification 

to the IMO. The upgrade should take 

place at the vessel's first renewal survey after the 

system becomes commercially available. 

In the case that an upgrading system is not 

available at the time of completion of the 

renewal survey (the shipowner must have 

document evidence to that effect), the flag would 

give an extension to the next annual survey. 

If the engine already meets Tier 1 NOx 

emission limits, simple certification is 

sufficient. As part of this process, it should be 

checked that the upgrading system does not 

decrease the engine rating by more than 1%, 

does not increase the fuel consumption by 

more than 2% and it has no other adverse 

effect on the durability or reliability of the 

engine. Upgrading to an acceptable 

Peter Swift 

cost/benefit level should be calculated to a 

cost efficiency formula. 

The parameters for Tier II and Tier III (new 

engines) were explained in the May issue of 

TANKEROperator. 

Intertanko said that there was the possibility 

of a US ECA (formerly known as SECAs), 

within 200 miles of the west coast US and an 

undetermined distance on the east coast, or 

Gulf coast, or the Great Lakes and St Lawrence 

Seaway, or any combination of these. 

The organisation reiterated the fact that it 

welcomed this package and said that 

Intertanko's goals had been fully achieved 

namely that the revision will - 

Ensure a solid platform of requirements. 

Is realistic and feasible. 

Will contribute to achieve a global, long 

term and positive reduction of air 

emissions from ships. 

Will contribute to a long term and 

predictable global regulatory regime. 



Emissions on ICS/ISF agenda 

The International Chamber of 

Shipping (ICS) and the 

International Shipping 

Federation (ISF) held their 

Annual General Meeting in 

Athens, from 19th to 21st May, 

at the invitation of the Union of 

Greek Shipowners. 

The representatives of national shipowners' 

associations from 40 countries discussed a 

number of important issues, including 

confirming their commitment to work with the 

IMO in the delivery of practical solutions for 

reducing the CO 2 emissions of the 50,000 

ships engaged in transporting around 90% of 

all global trade. 

Significantly, the meetings supported the 

rapid development of a new and separate 

section to Annex VI of the MARPOL 

convention - the so called 'Part B' - to 

address carbon emissions. This would provide 

the fastest means of bringing a global 

maritime CO 2 regime into force, but without 

delaying the introduction of new IMO rules 

on sulphur emissions which are expected to 

be adopted, again with full industry support, 

in October 2008. 

ICS/ISF chairman/president, Spyros M 

Polemis, explained: 

"The critical IMO meeting on Green 

House Gas emissions in Oslo, at the end 

of June, must make real progress on 

developing a global framework for ships, in 

order to present a coherent maritime 

package, with realistic and practical 

solutions, to the next major UN Climate 

Change Conference in 2009, which will 

debate the post-Kyoto regime. 

"Shipping is already the most carbon 

efficient form of transport, but the 

international industry will evaluate carefully 

all proposals put forward by governments at 

IMO and will submit its own ideas - for the 

moment we have ruled nothing out. 

However, our current focus is on exploring 

both short term and longer term operational 

and technical solutions - to reduce our 

emissions still further - that might be 

applied to both existing ships and those 

built in the future. 

"Although alternative fuel sources and 

innovation must play their part, our meeting 

confirmed that the focus of the shipping 

industry's immediate attention should be 

means of reducing fuel consumption in 

continuation of our longstanding search 

for efficiency. With bunker prices as high 

as they are today, this is also a matter 

of enlightened self-interest," he said. 

Human element 

The meeting also discussed various 

human element issues, including progress 

with regard to the ratification by 

governments of the ILO Maritime Labour 

Convention, and preparations for important 

ILO meetings in September that will 

develop guidelines for governments on flag 

state and port state control procedures for 

the new convention governing seafarer 

employment standards. 

The meeting also considered the manpower 

shortage and the current IMO review of the 

STCW convention governing seafarers' 

training and certification standards. 

"In addition to updating these important 

STCW rules to take account of new 

operational developments, it is important that 

the review, to which ISF is contributing on 

behalf of maritime employers, also looks at 

means of ensuring that governments only 

issue certificates to seafarers who actually 

meet the standards of competence prescribed 

by IMO. This is especially important in view 

of the global shortage of qualified and 

competent ship officers. 

"The IMO review of STCW is vital for 

maritime safety. However, at a time when the 

demand for shipping services means that high 

calibre seafarers, in the numbers required, are 

in short supply, it is a tragedy that many 

seafarers, particularly from developing 

countries, are in effect unemployable because 

their training does not yet meet the rigorous 

IMO standards introduced 10 years ago," 

he declared. 

Communications 

The meetings also confirmed the importance 

of communication and dialogue between ICS, 

ISF, and their member national shipowners' 

associations with governments on all issues 

that might impact on shipping, in order to 

influence the outcome of regulatory 

discussions at IMO, ILO and other bodies 

such as the European Commission. 

Elections 

In Athens, Spyros M Polemis was re-elected 

for a further two year term as ICS chairman 

and as ISF president. 

The meetings also elected Robert Ho 

(Hong Kong) and Lars Vang Christensen 

(Denmark) as ICS vice chairmen, and Luis 

Ocejo (Mexico) and Captain Dirk Fry 

(Cyprus) as ISF vice presidents. 

ICS’ secretary general Tony Mason. 

Code updated 

The International Chamber of Shipping (ICS) 

has updated its Code of Practice on Shipping 

and the Environment. 

The expanded 4th edition is intended to 

provide a concise but comprehensive 

summary of the environmental obligations of 

shipping companies as required by the latest 

international regulations, and a clear set of 

environmental standards by which companies 

should operate. The Code also incorporates a 

recommended management framework to 

ensure compliance with the MARPOL 

Convention. 

ICS secretary general, Tony Mason 

explained "The ICS Environment Code also 

contains information about the current overall 

environmental performance of the industry. 

As with previous editions, we hope this will 

prove a useful tool to help policy makers 

understand that shipping remains the most 

environmentally benign form of commercial 

transport." 

The new edition is available from 

maritime booksellers (or direct from 

Marisec Publications for £25, including 

worldwide airmail delivery - see 

www.marisec.org/pubs.) 

 

60 



Weathernews helps to reduce fleet emissions 

Weathernews has signed a threeyear 

contract with BP Shipping 

for the provision of safe weather 

and optimum routing services to 

the oil major's fleet. 

This is deemed significant as it will help BP 

Shipping work toward a goal of an annual 

reduction of up to 4% in emissions from its 

global tanker fleet, the company said. 

The contract award follows an extensive trial 

period and subsequent competitive tender process. 

Weathernews will be working closely with 

BP Shipping's masters to provide the very best 

possible weather and voyage planning 

information in order that they can ensure their 

voyages are not only the safest, but the most 

efficient in terms of fuel consumption. 

The fuel and emissions savings proven during 

the trial period are consistent with the potential 

shown in previous studies, including the IMO's 

'Prevention of Air Pollution from Ships' (2000). 

Weathernews' European director Con Carey 

hoped that other shipping companies would 

follow BP Shipping's example. "This is a winwin 

situation, where a system which enhances 

safety and reduces fuel consumption can be 

provided at a cost which is a fraction of the 

resultant savings made" he said. 

The system 'Total Fleet Management 

Service' (TFMS) had been developed in 

partnership with Weathernews' clients over a 

number of years. Masters receive fully 

comprehensive recommendations and 

forecasts and an on board system to simulate 

possible sailing routes. 

Onshore, operators can view the entire fleet 

via the web and are alerted to potential 

problems before they occur. In effect, the 

system closes the loop between the master and 

the onshore operator in terms of weather risk 

and scheduling of voyages, the company 

claimed. 

With BP Shipping's focus on safety and 

emissions reduction, a natural synergy exists 

with Weathernews, whose founder -Hiroyoshi 

Ishibashi- was a log trader in the Far East in the 

1970s when a vessel he had chartered went 

down in bad weather with the loss of all hands. 

Since then, Hiro has made it his life's 

work to improve safety at sea by providing 

the best possible meteorological information 

to masters. 

 

Copenhagen meeting airs its views 

In May, Germanischer Lloyd's (GL) 

Scandinavian committee 

discussed the theme of 'Future 

potential of energy effiency in 

maritime transport' at its sixth 

meeting held in Copenhagen. 

In an industry characterised by increasingly 

keen competition, the key issues are 

designing, building and operating ships 

efficiently. An efficient ship is profitable and 

environmentally compatible, GL said. 

With regards to cost efficiency, compliance 

with stricter environmental standards and 

technical safety for the maritime industry 

worldwide, GL said that it engages in the 

research and development of ship efficiency. 

"There exist many possibilities to improve 

ship efficiency, GL helps to identify the best", 

said Torsten Schramm, coo region 

Europe/Middle East/Africa. 

"The reduction of fuel usage is increasing in 

importance and fuel costs dominate ship 

operation. The GL approach to reduce fuel 

costs is the CO 2 index which is a tool to 

determine the fuel consumption. The measured 

CO 2 index can be compared with other indices 

within a given fleet", added Schramm. 

This function in particular is expected to 

trigger a learning effect as differences in fuel 

consumption will be made explicit and more 

transparent with the data associated to each 

vessel and voyage segment. 

With certified CO 2 -index values becoming 

public, the transport industry can actively 

further minimise emissions. Ships with a low 

index will transport more cargo and improve 

their index even further. 

GL launched a prototype CO 2 -index for 

shipping, based on MEPC/Circ.471. The 

innovative index is available for all GL 

classed ships. Each ship owner and 

management company can check the complete 

survey status of their GL classed fleet. The 

CO 2 emission will be measured on the basis 

of installed power, consumed fuel and 

transported cargo. Computed index values can 

be compared to other ships' indices and 

eventually be used to minimise emissions 

from transport. 

"Reducing CO 2 emissions from ships has a 

high environmental priority for the shipping 

industry. The implementation of project 

development together with our clients starts at 

an early stage", said Rainer Gutzmer, 

chairman of the Scandinavian committee and 

GL area manager Scandinavia. 

 


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now available on 

TANKEROperator’s 

website at 



and is updated 

weekly. 


TECHNOLOGY - EMERGENCY RESPONSE 

Co-operating with 

shore authorities for 

successful salvage 

From time to time major accidents and spills occur, which have catastrophic 

consequences. They become 'benchmark' events and often trigger fresh rounds of 

regulation. However, it is impossible, unfortunately, to 'regulate to eradicate', with total 

success, despite the widespread adoption of zero tolerance strategies*. 

While major spills are now rare 

occurrences, it is impossible 

to totally eradicate the risk, 

due to human error and the 

natural perils of ocean transportation. Human 

factors now predominate, due to the shipping 

industry's inability to increase the supply of 

experienced seafarers at a rate matching the 

rapid expansion of the world fleet. 

Potentially serious incidents continue to 

occur, despite the best efforts of all concerned. 

Therefore, attention should focus on timely 

and effective response, whenever an 

emergency arises. The marine salvor, 

operating to the requirements of Lloyd's Form 

and the Salvage Convention 1989, is obliged 

to use his 'best endeavours' to save property 

and protect the environment. Today's tanker 

owners are practised in emergency response 

skills and governmental agencies are much 

sharper in their response capabilities. 

Nevertheless, weak spots remain in the marine 

emergency response infrastructure. 

Some weaknesses were exposed in 2002, 

with the loss of the tanker Prestige. Whenever 

there is a possibility of a pollution disaster, 

hard decisions must be taken. Inevitably, these 

decisions tend to be political in nature. There 

is a wide consensus that the decision to deny 

shelter to the Prestige contributed to the 

destruction of this ship and the total loss of 

her cargo. At the same time, most people 

would sympathise with the person faced with 

a decision relating to a damaged laden tanker 

already leaking oil. 

There were two positive outcomes to the 

Prestige disaster (if 'positive' is an appropriate 

word). First, there is now a much greater 

appreciation that the instinctive reaction to a 

tanker casualty - ordering it away from the 

Who could ever forget the 2002 Prestige 

sinking..... 

threatened coast - might well compound the 

problem and produce the worst case: total loss 

and devastating pollution. Second, the IMO 

took rapid action and adopted Resolution 

A.949 (23), "Guidelines on Places of Refuge 

for Ships in Need of Assistance". 

It should be said that the IMO was aware of 

the need to take action on this front before the 

Prestige accident in November 2002. Places 

of Refuge were very much on the agenda 

following the loss of the tanker Erika in 

December 1999. The matter grew in 

prominence 12 months later, when the tanker 

Castor developed structural problems in the 

Mediterranean and became a 'leper of the sea'. 

The IMO's December 2003 Place of Refuge 

Guidelines attempted to reconcile two 

conflicting issues. The best way to reduce the 

pollution threat may be to transfer cargo and 

bunkers and there is less risk when an STS is 

performed at a sheltered place of refuge. 

Allowing the casualty in, however, might well 

endanger the marine environment, the 

coastline, fisheries and other economic 

interests. Not surprisingly, local communities 

and shore authorities can be expected to 

strongly oppose such action. 

The IMO has called on coastal states to 

apply its guidelines, identify safe havens and 

put in place plans for their use in emergencies. 

The EU has required its member states to list 

places of refuge. Most states are extremely 

reluctant to do so, at least in the public sense - 

due to obvious political sensitivities. Some 

have adopted a novel solution: declaring the 

entire coastline as a potential place of refuge. 

No coastal community is singled out. Equally, 

no coastal community is left out! 

New developments 

There have been some important 

developments since the IMO's guidelines on 

places of refuge were adopted in late 2003. 

The International Salvage Union (ISU) 

welcomed the IMO guidelines, but pointed out 

that guidance for shore authorities and masters 

is required for all types of casualty situation, 

not just those requiring refuge. Subsequently, 

the ISU proposed broader-based Guidelines on 

Maritime Casualty Management, dealing with 

refuge issues and matters such as command 

and control and responder immunity. 

In April 2005, the IMO's Legal Committee 

decided that there was no case for developing 

an International Convention on Places of 

Refuge. The Comité Maritime International 

62 



(CMI), however, decided to press on with its 

work on a first draft. This has since been 

completed. It has six main objectives: 

To emphasise the position under 

customary international law of the 

presumption of a right of access to a place 

of refuge for a vessel in distress. 

To make the presumption rebuttable by the 

coastal state if it can show that it was 

reasonable to refuse access (Article 4). 

To give immunity from suit to a state, 

which grants access to a place of refuge to 

a vessel in distress (Article 5). 

To give more force to the IMO guidelines 

(Article 8), which CMI recognises as 

playing a significant role in 

assisting to define the ambit of 

'reasonableness' when considering the 

behaviour of both shipowners (and their 

masters) and states (and port authorities). 

To clarify the position regarding 

the issue of letters of guarantee, 

to secure claims of a port or 

coastal state, which grants access 

to a ship in distress (Article 9). 

To require coastal states to 

designate places of refuge in 

advance, although not 

necessarily to publicise them 

(Article 12). 

It would be hard to argue against these 

objectives. Nevertheless, the draft suffers from 

the same fundamental flaw as that of the 

existing IMO guidelines on refuge in that it 

places too much emphasis on a single (albeit 

important) issue - place of refuge - at the 

expense of other, equally important 

considerations. 

Matters took a fresh turn last October, when 

IMO's Maritime Safety Committee approved 

'Guidelines on the Control of Ships in an 

Emergency', drafted largely by The Bahamas. 

Once again, we supported this initiative. It is 

difficult to find fault with a new initiative 

arising from such good intentions (other than 

to say, perhaps, that this guidance is too 

general in character). 

Ship control 

The new guidelines on the control of ships in 

an emergency are aimed at governments, 

shore authorities, masters, owners and salvors. 

They aim to provide 'a framework of 

authority' within which the parties are 

expected to operate. The guidelines' core 

principles of good practice include the need 

for a clear chain of command in an 

emergency. There is also some clarification of 

issues relating to the fair treatment of 

seafarers, who are often at risk of being 

caught up in a tangled web of criminalisation. 

Paragraph 4.5 of the October 2007 

guidelines states: "At no time should the 

master be prohibited from taking action 

which, in the master's judgement, is required 

to protect the lives of crew and passengers or 

others on board". 

The term 'others' might well relate to a 

salvage team. This provision could be of 

significance in a situation where a damaged 

casualty is ordered out of coastal waters to 

face hostile weather, having been refused a 

place of refuge. 

From the salvors' standpoint, paragraph 5.4 

is also potentially significant. This declares 

that a state intending to intervene should 

ensure that the master, owners and salvage 

team are told clearly what the shore command 

structure is and, in addition, are made fully 

aware of what degree of responsibility 

remains with them and what limitations are 

being placed on their freedom of action. 

Furthermore, the new guidelines call on the 

casualty's master to 'co-operate with the 

salvage master to the maximum extent'. As for 

the salvor, the guidelines recognise his need 

for 'reliable information' concerning ship, 

cargo and the emergency situation. The 

importance of ready access to the casualty is 

also stressed. 



.....or the earlier Erika disaster. 

Once again, the IMO has adopted useful 

guidelines that address important aspects of 

casualty management. Unfortunately, as in 

the case of the earlier Guidelines on Places 

of Refuge, the new Guidelines are too 

narrowly focused. As such, they fail to take 

account of the importance of a fully 

integrated response. 

Shore authorities 

Salvors have an excellent record in 

recovering property and preventing pollution. 

They do not, however, achieve such successes 

in isolation. The outcome almost always 

depends on effective co-operation with many 

parties, including shore authorities. This may 

focus on the need for entry into a port or 

sheltered haven. In other situations, however, 

this may not be important during the acute 

operational phase. 

Today, the quality of the working 

relationship between salvor and shore 

authority is a crucial success factor. This is 

why it is so strange that there are still no 

international arrangements that seek to 

harmonise casualty management in an 

integrated manner. One would expect this to 

be a top priority for the EU and IMO - given 

the high profile spills in North West European 

waters and the ever-present risk of 

catastrophic pollution in all world regions. 

Best endeavours 

The ISU's proposed Guidelines on Marine 

Casualty Management would promote a 

timely, fully integrated response by salvors, 

crew, owners, coastal state(s) and national 

response agencies. Under The Salvage 

Convention and Lloyd's Form, the salvor is 

required to use his 'best endeavours' to save 

the ship and cargo and while engaged in such 

operations to prevent or minimise damage to 

the environment. We believe that the spirit of 

the 'best endeavours' commitment (as opposed 

to any legal interpretation) should be extended 

to all parties involved in casualty response. 

This can be achieved by drafting casualty 

management guidelines setting out best 

practice and examples of what 'best 

endeavours' actually means in the context of 

each response party. 

In the case of the salvor, for example, 'best 

endeavours' in terms of pollution prevention 

means working with others to arrive at the 

best environmental option in the shortest 

possible time. As for the shipowner, 'best 

endeavours' should require, among other 

things, the immediate and frank disclosure of 

the casualty's status. The shore authorities' 

'best endeavours' should include special 

arrangements to ensure that salvage personnel 

and equipment enter the country without delay 

and that the salvage master boards the 

casualty at the earliest opportunity. 

The integrated guidelines would be bound 

together by a strong focus on spill prevention 

through timely salvage intervention. They 

would not be concerned with clean-up, as this 

is already covered comprehensively by 

existing IMO instruments. 

The spirit of 'best endeavours' is a strong 

motivator. Certainly, all involved are only too 

well aware of the potential for massive 

economic dislocation, environmental damage 

and disruption to the life and well-being of 

coastal communities. For these reasons, the 

ISU welcomes support and contributions to 

the task of producing straightforward, 

clear best practice guidance for marine 

casualty response. 

 

*This article was written especially 

for TANKEROperator by Arnold 

Witte, president International 

Salvage Union (ISU). 

Tsavliris towed the 

stricken tanker Castor 

around the 

Mediterranean looking 

for a place of refuge for 

several days. 

64 


TECHNOLOGY - NEWS 

Biofuels players 

poised to meet new 

eco-energy challenges 

A new conference being launched in London this month will assess the 

emerging biofuels market and its impact on demand for shipping. 

Organised by Lloyd's List Events, 

'Biofuels - a new shipping 

market' takes place at the 

Marriott Marble Arch on 25th - 

26th June, when more than 20 speakers will 

examine prospects and practicalities for the 

parcel tanker and barge sectors, as well as port 

and storage terminal operators, feedstock 

suppliers, oil majors and commodity/energy 

traders. 

Stemming from the increasing scarcity and 

price of crude oil, worldwide interest in 

biofuels as a renewable energy source has 

been boosted by political initiatives in the US, 

Europe and Asia to reduce global warming 

through wider use of eco-friendly alternatives 

to fossil fuels. 

The drive to reduce greenhouse gas 

emissions has led to measures such as a 

European Union target that 10% of petrol and 

diesel will come from biofuels by 2020. 

An oil company perspective will be 

provided by Bent Pedersen, vice president of 

refining and supply optimisation at Norway's 

StatoilHydro, who said: "A lot of people see 

biofuels as a threat, not least after press 

coverage about the effect on food prices. The 

food challenges are real, but biofuels are not 

the main cause. They are here to stay because 

the political will has been demonstrated. 

"We look at it as an opportunity. Today the 

market is relatively small but we believe 

demand in western Europe will move more in 

line with political ambitions. The EU targets 

are very ambitious, however, and it's probable 

that they will not be met in all countries," 

he added. 

Same approach 

Shipowners will approach the biofuels market 

in much the same way as any other trade 

according to Klaus Walderhaug, senior analyst 

at Norwegian parcel tanker specialist Odfjell. 

He said that demand for vegetable oils 

transportation will have to be weighed up 

against a number of technical and operational 

concerns such as MARPOL regulations, 

tank coatings specifications, the effect of 

heating or cooling on other cargoes, berth 

rotation and 'last cargo' requirements that 

could restrict what can be carried on the next 

three voyages. 

But he emphasised: "It's not a major 

challenge - from an owner's point of view, 

biofuels are just another cargo. At Odfjell we 

transport 300-400 different cargoes per year so 

we will look at vegetable oils just as we 

would look at any other product. 

"So far, biofuels are not of major 

importance to us but the relative increase in 

certain cargoes, particularly ethanol, has been 

quite substantial over the last five years. 

Further ahead we see potential for continued 

rapid growth in demand and transportation, 

depending on factors such as the development 

of second and third generation biofuels, the 

location of production facilities and the 

political climate for further use. 

"Certainly no shipowner can afford to say 

that they won't touch biofuels. It's all a 

question of the marginal cost of taking them 

on compared with any other cargo," he said. 

The applicable MARPOL regulations - 

depending on whether the biofuel is in pure 

form or a blend with petroleum products - will 

be outlined by Janet Strode, general manager 

of the International Parcel Tankers Association 

(IPTA), which has been instrumental in IMO 

discussions on this issue. 

"It's relatively simple," she explained. "All 

the biofuels currently being shipped in bulk 

are classified as noxious liquid substances 

(NLS) and therefore have to be carried under 

the provisions of MARPOL Annex II. 

"Where it becomes a little more 

complicated is when blends of biofuel and 

mineral fuel are shipped, since there is often 

confusion as to whether such blends should be 

carried as Annex I or Annex II. IPTA is 

currently seeking clarification on this at the 

IMO," she said. 

Asia's position 

An overview of Asia's role as a major 

feedstock supplier will come from 

Mohammad Jaafar Ahmad, general manager 

Europe for the Malaysian Palm Oil Board. 

Malaysia and Indonesia produce almost 90% 

of the world's palm oil, which is claimed to be 

the cheapest, most productive and most 

sustainable biofuels feedstock. 

Ahmad predicted that commitment to 

reducing greenhouse gas emissions will see 

countries such as China, India, South Korea 

and Japan join the EU as major biofuels 

customers in the longer term, but went on to 

cast doubts about production levels in the 

foreseeable future. 

"In the past, we have heard plans in 

Malaysia, Indonesia and Singapore to expand 

biodiesel production capacity to a total of nine 

million tonnes in the next two or three years, 

but the current increase in palm oil prices 

relative to petroleum prices have somewhat 

distorted the profitability of the business," 

he warned. 

"The market is now facing a lot of 

uncertainty and many of the expansion plans 

may not be realised. If palm oil prices 

continue at the current level, only committed 

plants will continue operating, which 

represents a maximum capacity of about 

TO 

two million tonnes," he reasoned. 



Guangzhou service station opened 

Booming demand for lifeboat and 

davit servicing in China has led 

leading lifeboat and davit 

manufacturer Schat-Harding to 

open a third Chinese service 

station, at Huangpu (Guangzhou). 

The new base is close to all the major repair 

yards in Guangzhou and ideally suited to offer 

faster response times for the yards and ports 

of Shenzhen, Hong Kong and the South China 

region. It opened on 1st June with four service 

engineers and a service administrator. 

Andrew Lemmis, who heads up Schat- 

Harding's China service division said, "When 

we first started service in China in February 

2006 we were in a small office operating from 

Online tracking service 

Cybit, the UK's online Telematics 

service provider, said that its 

BlueFinger maritime division has 

launched a new worldwide webbased 

online vessel tracking 

service. 

Saffire-Online allows shipping companies to 

combine compliance with IMO Long Range 

Identification and Tracking (LRIT) regulations 

with a comprehensive suite of shipping fleet 

management tools over the web to enhance 

operational efficiency. 

It is claimed to provide a clear view of 

every vessel in the fleet and enable full 

activity and status reports to be easily 

generated. Fleet managers can quickly 

acquire location information on each vessel 

and together with vessel grouping and 

geo-fencing management facilities, can 

KH obtains type approval 

Kelvin Hughes has gained 

European type approval for its 

SharpEye solid-state navigation 

radar. 

It was tested by QinetiQ, the UK's type 

approval authority. QinetiQ's Peter Goddard 

commented, "SharpEye is the first solid-state 

system we have seen and it represents the latest 

in technology. It has passed all the required 

tests and has a noticeably sharper picture than 

an equivalent magnetron-based system". 

Barry Wade, Kelvin Hughes' technical 

development manager said, "This is the first of 

our products making use of the new 

SharpEye solid state radar technology that we 

the Qingdao manufacturing plant with just 

four service engineers, a service co-ordinator 

and myself. We outgrew that office is less than 

a year and relocated to Shanghai. Now we 

have service facilities in Qingdao, Shanghai 

and Guangzhou with 22 service engineers and 

back office support from 10 service staff." 

David Bradley, executive vice-president of 

Schat-Harding's service division said, "More 

and more responsible shipowners are finding 

that it makes both economic and operational 

sense to have their lifeboats and davits 

serviced by manufacturer-approved facilities. 

That way they comply with the IMO 

guidelines in MSC1206 and dramatically 

reduce the chances of an accident with 

ensure that all shipments are on-course 

and on-time. 

This also enables them to identify any 

exceptional events and then react quickly and 

effectively. Saffire-Online is fully compatible 

with Inmarsat-C, D+ (IsatM2M), Iridium, 

Thuraya and other leading satellite 

communication systems, the company said. 

Saffire-Online will automatically provide 

the necessary reporting to the LRIT 

international data centres and to any other 

destinations that the shipowner may require. 

BlueFinger has provided vessel monitoring 

systems for over 10 years. With over 15,000 

fishing boats and other small vessels being 

tracked every day by BlueFinger's Saffire 

VMS systems around the world, Saffire- 

Online will bring this experience to the 

commercial shipping sector. 

 

have developed over the last three years. This 

new technology will revolutionise the radar 

industry, providing performance and reliability 

that has previously only been possible with 

multi-million dollar military systems. 

"The technology in both its S-Band and X- 

Band formats has application not only for 

navigation but will play an important role in 

security with its incorporation in VTS and 

coastal surveillance systems", he continued. 

The first deliveries of SharpEye systems 

occurred in April and with its worldwide 

installation and service capability, Kelvin 

Hughes has already secured global sales for 

the new system. 

 

their boats. 

"Many owners now have five year fleet 

service agreements with us, and we have to 

play our part by building a global network to 

meet their needs. It is likely Schat-Harding 

will soon have to open a fourth service facility 

in north China, possibly Dalian or Tianjin, 

such is the demand we are experiencing in 

China and across Asia," he said. 

Schat-Harding's service division now 

employs over 300 personnel including 165 

trained and authorised service engineers 

working out of 17 Schat-Harding owned 

service stations, supported by 15 certified 

service partners operating in over 30 

countries. 

 

MCA invites STS 

comments 

The UK's Maritime and 

Coastguard Agency (MCA) has 

initiated a 12-week public 

consultation on proposals for new 

legislation to regulate ship-to-ship 

transfer operations in UK waters. 

The legislation is meant to regulate transfers 

of hazardous substances, including oil, 

between ships in UK territorial seas. If the 

proposals are adopted, transfers will only be 

allowed to take place in harbour authority 

waters where the environmental impact of the 

transfers will be assessed. 

In a statement issued by the MCA, shipping 

minister, Jim Fitzpatrick, said: "These 

measures will ensure that ship-to-ship transfer 

operations in UK waters continue to be of the 

highest standards in terms of safety and 

protecting the environment, and further 

reduces the risk of an oil spill in UK waters." 

The consultation period ends on 7th July 

and anyone with an interest in the topic can 

submit comments to the MCA. 

This comes soon after plans put forward to 

transfer Russian crude oil in the Firth of Forth 

were aborted due to local opposition. 

Get the 

latest news on 

updated 

weekly 

TANKEROperator’s website 


66 


Chris-Marine co-operates with IOP 

Chris-Marine and IOP Marine 

both supply high-quality 

products very much to the same 

customers. 

By working together this year, both companies 

expect to provide even better support for the 

growing customer bases, they claimed. 

Chris-Marine designs, manufactures and 

sells high precision maintenance machines for 

shipboard diesel engines. Headquartered in 

Malmö, the company offers products and 

Leading training software 

provider, Videotel Marine 

International has launched a new 

course on electronic charts 

display information systems 

(ECDIS). 

As ECDIS is becoming an increasingly 

significant part of maritime navigation, the 

course is claimed to provide a clear and 

comprehensive explanation of current 

international law and explains the differences 

between various types of electronic charts. 

Captain Milind Karkhanis, Videotel vice 

president, explained: "The course includes 

exercises that simulate some of the key 

functions of using an ECDIS system. 

Completing the course gives an 

understanding of both the benefits and 

limitations of ECDIS, together with a 

practical grasp of how it can be used for 

navigation and passage planning." 

This interactive, computer-based training 

course consists of five modules - an 

services worldwide through its own 

subsidiaries and sales representatives. 

IOP-Marine 's Obel-P Products has been 

developing products for MAN Diesel's 2- 

stroke engines since 1969 and today has cooperative 

ventures with several of the major 2- 

and 4-stroke engine designers and 

manufacturers worldwide. 

IOP develops low and medium-speed fuel 

injector test equipment, as well as hydraulic 

power packs for use with the same engines. 

Videotel launches ECDIS course 

introduction to ECDIS, understanding ECDIS, 

two modules on using ECDIS, and the 

exercises. 

It is presented in English on CD-ROM 

using short video sequences, graphics and 

interactive elements. It can be undertaken in 

seven hours of study and when completion of 

the final test has been authenticated, Videotel 

will issue a standard course certificate. 

Completion of optional assignments is 

acknowledged by the award of an ECDIS 

advanced course certificate. 

Videotel's ECDIS training course was 

designed for shipboard personnel who have 

responsibility for, and already have a good 

knowledge of navigation and passage 

planning. The course can be undertaken on 

board ship, or ashore and is for individual 

self-study. 

The company's risk assessment at sea 

training course has recently been given full 

approval from the UK's Maritime and 

Coastguard Agency (MCA). 

 


Hamworthy wins 10-ship 

tanker series order 

When Hamworthy was chosen to 

supply pump room systems for 10 

Suezmax tankers on order for 

Brazilian state-owned operator 

Transpetro, technology was a 

more important factor than price, 

the company claimed. 

Hamworthy had signed an order for 10 shipsets 

of pump room systems worth a total of around 

$12 mill with the new shipyard Estaleiro 

Atlantico Sul in the northern part of Brazil. 

Transpetro, the transport unit of the Brazilian 

national oil company Petrobras, ordered the 10 

Suezmax tankers earlier this year. 

The series of 157,500 dwt ships are the 

largest of the 26 tanker newbuildings of 

various types and sizes thus far that form the 

first phase of Transpetro's fleet expansion and 

modernisation programme. A total of 42 

tankers could be ordered in this programme. 

"This is a major breakthrough for 

Hamworthy in Brazil," said Terje Bjørnemo, 

Hamworthy's sales director responsible for 

pump room systems, "as we have not had a 

pump room system order from Petrobras for 

10 years. It is also a pleasure to announce that 

we won the contract for technological reasons 

rather than price." 

Each shipset of equipment for the 

Transpetro series will include - cargo and 

ballast pumps in Ni-Al-bronze from 

Hamworthy's own foundry; steam turbines; 

electric motors; gas-tight power transmissions; 

stripping system; and stripping pump. The 

packages will be delivered from January 2009 

through 2011. 

The equipment will all be controlled and 

monitored by Hamworthy control systems. 

Speaking engine room simulator launched 

PC Maritime has introduced 

v4.5 of the PC-based full mission 

simulator Virtual Engine Room 

(VER). 

It is claimed to be the first 'speaking' engine 

room simulator in the world. 

VER has been substantially enhanced 

with the addition of synthesised speech. 

Checklist instructions and communications 

with the bridge are all spoken and fully 

integrated into the scenarios provided by 

the simulator. 'Ask Chief' - a unique 

artificial intelligence expert system, tells the 

user what should be done as a next step in 

engine room preparation or equipment 

malfunction. 

VER 4.5, which is type approved and 

compliant with the STCW and ISM Codes, 

is used for ships' engine room training. 

Based on a slow speed diesel engine, it is 

equipped with all controls and alarms found 

in a real engine room. Faults can be injected 

into the simulator, and student competence is 

measured accurately with built-in 

standardised assessment tests. 

It is available in three different formats to 

suit training budgets. It can be supplied as 

software only, to run on a single PC with 

twin-screen support or on a network. For 

greater realism it can be supplied as part of a 

desktop console or now as a full-size engine 

room console. 

One of a series of eight engine room 

training products from PC Maritime, 

VER is used by maritime training 

establishments worldwide, including recent 

installations in Japan, Brazil, Australia 

and India. 

Upgrades from v4 to v4.5 are available 

free of charge to existing customers. 

Versions earlier than v4 can be upgraded at 

favourable rates. 

 


CONFERENCE REPORT 

An end to 

endless paper? 

The first public conference in the 

world about Shipdex, a new 

standard for electronic ship 

manuals, was held in Hamburg on 

14th May. It was organised by UK shipping IT 

magazine Digital Ship, chaired by Till Braun, 

head of department - sales projects, 

Germanischer Lloyd (GL) and sponsored by 

SpecTec, ABS Nautical Systems and CiBS. 

Shipdex is a standard method for providing 

all the information in ship manuals 

electronically, so it can automatically and 

easily be imported into shipping companies' 

planned maintenance and purchasing systems. 

This ensures that information in shipboard 

maintenance and purchasing systems is 

accurate and easy to update, and seafarers can 

find the information they need much more 

quickly than looking for the right page of 

paper manual. It means that purchasing 

systems always contain the right part 

numbers, so companies always order the right 

part. This all leads to greater safety and 

efficiency on board, and less searching for the 

right piece of paper in a manual, it was 

claimed. 

“ 

New standard for electronic 

ship manuals - first 

conference held in Hamburg. 

A typical new vessel can have 700 to 900 

components, with up to 1,000 parts per 

component, and a further 33,000 different 

general stores. It is not hard to see how long it 

would take to type all of this information 

manually into a maintenance and purchasing 

system, as shipping companies do now. 

Furthermore, it is an enormous task to 

manage the paper documents, which is 

mitigated if they are electronic. 

Cost savings 

Dr Ing Giancarlo Coletta, purchasing director 

of Grimaldi Group Naples, speaking at the 

Hamburg conference, estimated that he can 

save total costs of maintenance by 8%, if all 

of the ship manual information is available 

electronically. 

It also makes it much easier for people to find 

the answers to questions, which leads to safety 

benefits. "People ask - we have 25 tonnes of 

“Shipowners can improve their spares and 

maintenance costs - they know what to buy 

and what to maintain” 

Björn Stenwall, 

director, sales, marketing & major project unit, 

MacGREGOR 

” 

There are also plenty of benefits to a ship 

supplier from being able to provide ship 

manuals electronically, because it helps set up 

a two way line of communication between the 

shipowner and the supplier. 

"We need to get the feedback from the 

owner, and with this system we're able to do 

that," he said. "You can have a better two way 

connection and learn about how the parts are 

performing. You can do performance based 

maintenance." 

Shipdex was originally conceived in 

February 2007 by shipowners Intership 

Navigation and Grimaldi Naples, who 

between them were purchasing 110 new 

vessels, and were tired of receiving all the 

manuals for their new vessels' equipment on 

paper. They thought it was a good opportunity 

to encourage their suppliers to provide all of 

the manuals for the new vessel electronically. 

New standard 

They brought together maritime software 

company SpecTec, and equipment suppliers 

MacGREGOR, Alfa Laval, MAN Diesel and 

Yanmar, to develop the new standard, and 

form the first working group. The first public 

presentation was held at Digital Ship Cyprus 

in February 2008. 

Shipdex is not completely new - it is a 

scaled down version of S1000D, which is 

accepted as the international standard for 

electronic manuals for equipment on naval 

vessels and aircraft. The S1000D standard is 

2,600 pages long; the Shipdex standard is 

much shorter, which should make it easier to 

manage. However anything in S1000D format 

is fully compatible with Shipdex. 

TO 

Currently, the information in shipboard 

maintenance and purchasing systems is typed 

in manually, either by shipowners themselves, 

or in data processing centres. This can take up 

to 90 days for a new ship, is error prone and 

expensive, and involves either photocopying 

the ship's full set of manuals and drawings (up 

to 1.5 tonnes of paper for a new vessel), or 

posting the only copy the shipowner has to the 

data processing centre. 

cargo. Can we load this on the vessel? Instead 

of searching through your manuals, you can get 

an answer immediately," he said. "It will be a 

great advantage in my opinion." 

"Shipowners can improve their spares and 

maintenance costs - they know what to buy 

and what to maintain," said Björn Stenwall, 

director, sales, marketing & major project 

unit, MacGREGOR, speaking at the 

conference. 

For further information 

bout the conference, see 

www.thedigitalship.com/Shipdex.htm 

or contact Karl Jeffery, 

conference producer, on 

jeffery@thedigitalship.com. 

For further information about 

Shipdex see www.shipdex.com 

68 



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