Quarterly October 2004 - Odfjell

odfjell quarterly 1C O M P A N Y M A G A Z I N E F O R T H E O D F J E L L G R O U P - O C T O B E R 2 0 0 4

In this issue:P.O. Box 6101 PostterminalenN-5892 BergenNorwayTel: + 47 55 27 00 00Fax: + 47 55 28 47 41E-mail: quarterly@odfjell.com589Naming Ceremony ofM/T Bow SpringOdfjell Safety InitiativeOdfjell Ship OfficersConference 2004Internett: www.odfjell.comEditor:Klaus WalderhaugEditorial committee:910Management DevelopmentProgramINDIAAn emerging Asiansuperpower5Tor JohansenBrit A. BennettEllen SkagenTor JürgensenHelge OlsenGeir Mjelde121314Odfjell enters into newterminal Venture in ChinaOur Associated SouthAmerican TerminalsRisk Management News10Correspondents:Houston:Petter MaasoeSingapore:1516Vessel of the issue:NCC BahaPhasing OutSingle-hull TankersAtle KnutsenManila:Kjell Johansen1819A new Location for Odfjell’sPID LaboratoryThe Odfjell Quarterly BrainTeaser12Rotterdam:Theo Kruithof20Greetings From Around theWorld25FR WaringDeadline next issue:November 22nd26The Quality RenaissanceProject statusDesign: Feedback ASCover: Bow Spring during seatrials (Photo: Tor-Arve Skjerli,Machinery Inspector)The Lady Sponsor Mrs. Lourdes(Lulu) C. Halog(Photo: Tom Haugen)2728Future Ship Management ofOdfjell-owned VesselsThe Personnel Corner18odfjell quarterly 2

Dear Colleagues...During the week September 13th to17th two important seminars were heldin Bergen; the Management Conferenceand the Ship Officers Conference. Themain focus at both these meetings was onsafety. Odfjell has been through a toughyear with serious events and accidents, and24 persons have lost their lives in Odfjell’sservice. I feel a special responsibility toaddress this issue, and my message to allof you is that safety is something we shallnever compromise on. Remember thatsafety is not only important on board ourships, but also at our terminals, duringcontainer operations and in all parts of ourwork. As I previously have stated in thiscolumn: Safety comes first!Hence, supported by the Board and theSenior Management Group we havedecided to address the whole Odfjellorganization through a Safety Initiative. Iknow that safety is not something that wecreate solely through a campaign. It hasto be embedded in the company culture,and we have to have it under our skin,in our bones so to say. Many accidentshappen because people who should knowhow to do things right, for some reasondid it wrong, or made some shortcuts.Bearing in mind we are operating in arisk-exposed industry, handling hazardousand explosive cargoes. We have manyskilled and experienced people worldwidewith sound attitudes, but we need to bealert and to improve our safety standards,and never get “relaxed” on safety issues.Of course there will always be thecommercial pressure, but let there be nomisunderstanding: High safety-standardsare cost-effective to our business.Our safety policy shall be founded on the“zero accident” philosophy”. Odfjell shallnot accept any accident to happen, and weshall be recognized as a leading companyalso within the area of safety. This isindeed ambitious, but I am confident thatthere simply are no alternatives if we wishto continue in this business. And be certainthat we shall! I ask you all to contribute inreaching this goal.Looking at the 1st half 2004 results, Iam happy to recognize that most of ourbusiness units are doing well. The revenuesfrom our vessels are increasing, and themarket for chemical tankers is developingfavourably. The terminals and containersgive good and stable income. There arealso other positive factors. Recently wetook delivery of Bow Spring, the third shipin our new Polish series. These ships areperforming very well, and we have decidedto increase the series from six to now eightships. Odfjell has also been awarded alicense for doing coastal tanker operationsin China, together with a Chinese partner.Further, we have entered into a jointventure with another Chinese partner forbuilding a new tank storage terminal inJiangyin on the Yangtze River.However, although our results arebetter they aren’t that good, and thereis definitely room for improvements.Although the markets are turning in ourfavour, freight rates still do not reflect ourreal service costs and offer a reasonablereturn on our long-term investments. Itis essential that we all take ownership toour business, and that we work togetherto strengthen Odfjell’s position.Finally I wish all of you in the Northernhemisphere a pleasant fall and those ofyou below the Equator an even nicerspring. Let me also express my recognitionand gratitude for your continuous effortsfor Odfjell.Terje Storeng, President/CEOodfjell quarterly 3

Chairman´s Message:As my Board colleague Peter Livanos recentlyput it, the parcel tanker business is the mostcomplicated segment of the shipping industry.Not that I know too well all the many othershipping segments, but nevertheless, I believePeter to be absolutely right.During an all-employee company Christmasdinner some years back, a now retiredand spirited Board member gave a speech.He confided that at Board meetings wetalked about many things, sometimes evenstrategy...Your present Board is very much preoccupiedwith the evolution of the parcel tankerbusiness, from a long term perspective.There are many technical and regulatoryaspects to cope with, and much vetting andvarying and arbitrary restrictions of all kindsaround the world. New ships are thereforebecoming vastly more expensive to build,with delivery far out. Out at sea such bignew units are economical. The problem isloading and discharging, and the fact that wespend around 40% of a ship’s time in port.Why? Because we cater to many and difficultproducts from and to multi-ports, even multiberthswithin each port. Something has togive; either we must improve on efficiency(and God knows we try) or else we need to bebetter paid - - not exactly music to the earsof our clients. But what is the alternative?There will otherwise be insufficient fleetrenewal, which to our clients is even worse.Not only will freights increase substantially,but there may not be enough transportationto go around. But our clients do not appearto care to worry that far out.The Board has looked to the transoceaniccontainer lines, a success story. How dothey achieve their impressive efficiency, theircompetitive costs? Elementary, Dr. Watson:Larger ships, ever more speed, and less than20% of time spent in port. In other words,time in port is a large part of the answer:The container ships make one-stop andconsolidate all loading and all dischargingto one berth. The clients bring (or fetch)the cargoes (the container boxes) alongsidelarge and specialized terminals, where speedis of the essence. Contrast that to our tradewhere we are shifting around from berthto berth and up many a creek. Not strangethat our large ships spend a week or twoduring a US Gulf pickup, where a containership would have been in and out in a dayor two, and back to sea steaming profitablyahead. With large stainless steel parceltankers now costing US$ 80 million or moreto replace (vastly more than in the past) thereis no economy in shifting about. The upshot?Either future freights must reflect true costsof customer imposed inefficiencies, such asshiftings, or else shiftings must be greatlyreduced, if not eliminated.Remember, we are talking the long termperspective, in which context as a company wehave already achieved something important:We now own and operate some major,efficient terminals at important junctionsaround the world. Already we are arguingharder for consolidation, because it makessense both to our clients and to us. What westrive for is operating excellence; cutting costswithout compromising on safety. The risk ofsomething going wrong, incidentally, whennavigating in narrow waters to many and,sometimes, to inadequate berths translatesinto another reason for our becoming, reallyout of necessity, more discretionary aboutthe business we entertain especially with ourlarger ships.At the beginning of this Chairman’s messageI talked about developments as an evolution,not as a revolution. But an acceleratingevolution is indeed in process and - - inkeeping with Darwin’s theory - - it’s all aboutthe survival of the fittest. So be fit for fightalso for the many and daily tedious tasks,in keeping up with our overriding strategy;operational excellence and competitiveness.Dan Odfjellodfjell quarterly 4

Naming Ceremony of M/T Bow SpringBy Tom HaugenThe naming ceremony for the world´s largestsophisticated chemical parcel tanker washeld at the Stocznia Szczecinska Nowa yard,Szczecin, Poland on August 28th 2004. LadySponsor of the ship was Mrs. Lourdes (Lulu)C. Halog, the Administrative Manager ofOdfjell Manila. After firmly breaking thebottle on the first go, Lulu held a wonderfulspeech wishing Bow Spring, with her officersand crew, safe and prosperous journeys onall seas. Lulu’s speech touched the heartsof everyone present. Mr. Andrzej Stachura,President of the Stocznia Szczecinska Nowa,thanked Odfjell for outstanding cooperationin building Bow Spring and her sister vessels,Bow Sun and Bow Star, and looked forwardto a long-lasting relationship. Mr. DanOdfjell, Chairman of the Board of Odfjell,thanked Mr. Stachura for a superior ship,and pointed to the cooperation between theyard and Odfjell back to the chemical parceltankers built at the same yard 30 years ago.Bow Spring is actually the 19th ship Odfjelltakes delivery of from this yard.The ceremony was attended by a largenumber of proud yard employees togetherwith their families. The banks and financialinstitutions that are facilitating the financingof Bow Spring were specially invited guests,together with representatives from Odfjellin Bergen. Also attending the ceremonywere many of the Polish children who hadmade the many beautiful decorations onboard, and they were invited by CaptainOdd Mikalsen for a special tour of the ship.The yard’s marching band supplied themusic, including a magnificent version of theBergensian Anthem, “Nystemten”.Bow Spring is thethird in a series ofeight ships to bebuilt at the StoczniaSzczecinska Nowayard. Her deadweightat summer load line isVisitors admiring the state-of-the-art bridge39,942 Dwt. She has 40 cargo tanks, including6 deck tanks, with a total tank volume of52,126m³. Her length overall is 182.9 metres,the beam is 32.2 metres and the height frombase to top of antenna is 46.6 metres.Terje Storeng addressing the audienceThe choice of“Lulu” Halog asLady Sponsor wasparticularly wellreceived by theFilipino crew.√√√odfjell quarterly 5

..and The Lady Sponsor´s speechGood evening,First of all, allow me to thank the peoplebehind why I’m here today;To Mr. Dan Odfjell for giving me thisopportunity and wonderful experience;To Mr. Terje Storeng for sending me thebeautiful invitation;To Mr. Andrzej Stachura, PresidentManaging Director of Stocznia SzczecinskaNowa;To Ellen Skagen of course for giving methe details and guide what I supposed todo;To Cap. Haugsand for sending me theinvitation and guaranty letter to Poland;To Cap. Tor Johansen for breaking thenews that I will be gracing this occasions;Of course to my Boss, our Manager inOdfjell Manila Cap. Kjell Johansen for hismoral support and encouragement;To my colleagues from Manila and HeadOffice;To Officers and Crew of Bow Spring;To my countrymen working in Poland;Honorable Guests;Friends, Ladies and Gentlemen;Thank you very much for this wonderfulopportunity and experience. I will cherishthese moments forever.It is indeed with great pleasure and honorfor me and of course for Odfjell Manilato be invited to act as Godmother to thisvery special occasion, the naming of BowSpring. I am so blessed and extremelyglad to be here among you, to witnessthis spectacular event. Forces of destinybrought us here together to celebrate thisgorgeous occasion.Bow Spring, this elegant ship, is somethingto love and care for. May this day bethe beginning of a perpetually successfulvoyage. May Bow Spring sail upon smoothseas and sunny skies that when it touchesany ports, an outpouring of blessingsabundant would abound upon her. Ispeak life upon all the parts of the ship,that it may surmount all the challenges itmight face asail, and may God’s mantle ofprotection be upon her all the days of hervoyage.To the officers and crew, health, joy,peace, safety, and peaceful cooperation beupon each of you. That excitement morethan sorrows, enthusiasm more than fear,abundance more than lack be with all ofyou. Fond memories enrich every voyage,knowledge and wisdom be added untoeach of you as the days goes by. Mostof all, may our Almighty God go beforeyou, and let Him be your rear guard. Letmyriads of angels bring you light in allyour thoughts.To my superior and colleagues, I pray thatOdfjell remains to be at the zenith ofsuccess, in spite of global recession, thatit will remain untouched by any obstacles,as it is fully anchored at the very coreof its mission and vision for excellence,innovations and sincerity. Odfjell, thecompany that nurtures and enrichesthousands of employees on a global scale,had made me who I am now. I am proudto have become a part of this progressiveand loving family.To everyone, may the road rise to meetyou. May the wind be always at your back.May the sun shine warm upon your facesand the rain fall soft upon all of you. Anduntil we meet again, may God hold you allin the palm of his hands.God bless us all, and have a nice evening!With Captain Mikalsen and Dan OdfjellThe picture of the Lady Sponsor will bemounted on boardAt the naming ceremony dinner.odfjell quarterly 6

Odfjell Safety InitiativeSAFETY COMES FIRST!Following recent tragic accidents and subsequent investigation, Ihave concluded that we need to review and further enhance oursafety standards. For obvious reasons, accidents, and in particularthose with fatal outcome, are not acceptable to Odfjell.Excellent safety performance does not come by itself, but throughhard teamwork and continuous commitment from everyoneinvolved. Hence, we will launch a Corporate Safety Initiative toraise the safety awareness throughout the Odfjell Group, as wellas provide means to develop behaviour that improve our safetyperformance. We want to be recognised by the highest safetystandards wherever we operate.Although we are in the planning stage of the Safety Initiative,there are some important statements I would like to share withyou:• I want you to work safely. Make sure that you areconfident with the work you are doing.• What can happen will happen – Take the necessary timeto plan tasks properly prior to doing the job!• If in doubt – stop and ask!• Nobody in Odfjell should work in an unsafe way or acceptunsafe practises!• Never compromise on safety – SAFETY COMES FIRST!I ask you urgently to keep these fundamental guidelines in mindwhenever in service for Odfjell.The Safety Initiative will be further developed in the coming weeks,but we have made some decisions already:• We will review our Safety Policy to further clarify thepriority of safety and the expected safety performance.• We are reviewing relevant procedures to clarify expectedsafety standards.• We will define measures and targets to drive safetyimprovements.• Resources and organisation will be reviewed to supportthe Safety Initiative program.• Training and tools will be provided enabling us better tolearn from accidents and near-misses and enforce safebehaviour.I expect safety to be a prioritised issue at all relevant meetingswithin Odfjell, and I will personally follow the Safety Initiativeclosely. Let us further improve on safety culture and attitudes. Letus all work together to make Odfjell a zero-accident company!Terje Storeng, President/CEOodfjell quarterly 8

ARBEITGEBERZUSAMMENSCHLÜSSE IN DEUTSCHLANDWAS IST EIN AGZ?45Es handelt sich um ein von Arbeitgebern in Form eines Vereinsgegründetes Unternehmen zur Teilung der Arbeitszeitder verfügbaren Arbeitnehmer. Das französische Rechtbeinhaltet innovative und fordernde Bestimmungen: Dennicht gewinnorientierten Charakter der Bereitstellung vonArbeitskräften zwischen Mitgliedern eines AGZ. Es handeltsich weder um Zeitarbeit noch um Unterauftragsvergabe“. 3Der AGZ bildet einen dritten Akteur, welcher die Beziehungenzwischen Arbeitgebern und ihren Angestelltenzum gegenseitigen Vorteil regelt. Die Arbeitgeber einesArbeitgeberzusammenschlusses haften gegenüber ihrenAngestellten. Die finanzielle Solidarität bildet folglich dasKernstück des Modells und bindet die Stakeholder.Auf dieser Grundlage erfüllen AGZ mehrere Unterfunktionen: Netzwerkbildung zwischen den Unternehmen Management der Koordinierungskosten Sicherheit für die Unternehmen (Fachkräftesicherung) Sicherheit für die Beschäftigten (unbefristeter Arbeitsvertragsowie Aus- und Weiterbildung)Im Vergleich zu anderen Modellen auf dem Arbeitsmarktnehmen AGZ eine Sonderstellung ein:Die Zeitarbeit deckt zeitlich beschränkte und nicht wiederkehrendeBedarfe und erfordert in der Regel geringeQualifikationen. Die Zeitarbeit kann abweichend eingesetztwerden, um wiederkehrende Bedarfe zu decken, doch entsprichtdies nicht ihrem Zweck.Beratungsunternehmen und externe Dienstleistungsunternehmendecken im Allgemeinen nur sporadische Fachkräftebedarfe.Die Arbeitgeberzusammenschlüsse reagieren auf dauerhafteArbeitskräftebedarfe, die zwischen mehreren Unternehmenaufgeteilt werden. Sie sind folglich besondersgeeignet, um eine längerfristige Nachfrage der kleinenUnternehmen nach Arbeitskräften auf Teilzeitbasis zu bedienenund erlauben den großen Unternehmen, ihre sozialeVerantwortung wahrzunehmen.3 Joubert, France: Anticiper et gérer le changement en Europe: peut-ontraduire un dispositif d’un pays à l’autre, l’exemple des Groupementsd’Employeurs, Paris 20117

INDIAAn emerging AsiansuperpowerBy Sudesh KamathDowntown Bombay with the FinancialDistrictThe Gateway to IndiaForget the India you once knew: it isgone! Contemplate instead a new selfconfident,resurgent nation, embracingits role as an emerging Asian superpower.With over one billion citizens, India is thesecond most populous nation and thelargest democracy in the world. Withinthe country more than 36 languages andlarge number of dialects are spoken, withEnglish being widespread in the majorcities. The most common bond is the sportof Cricket, a “religion” followed by 90%of the population.Currently the Indian Gross DomesticProduct (GDP) is growing by 9.4% peryear. Agriculture is a very importantsector of the economy, on which 62%of the population directly depends andwhich contributes about 25% of the GDP.Industry & service sectors are growing inimportance, and now account for 26%and 48% of the Indian GDP respectively.Some of the main growth drivers arecomputer software, science, textiles, arts,movies, nuclear power and other servicesectors. India holds the world’s largestmiddle-class population (about 300million), expanding at a very steady paceand with an enormous buying power.Expansions in the chemical/fertilizer/oilindustries have definitely placed India inthe community of leading nations, on thestrength of knowledge rather than size.However, India is not without is shareof problems: Over-population, AIDS,unemployment, corruption, pollution andpoverty.The political scenePolitics is an integral part of the nationalfabric, with general elections beingheld every five years. In April-May2004 approximately 58% of India’s 662million voters cast their ballots for 543parliamentary constituencies in 35 statesand union territories. As a result, bymid May a new coalition governmentheaded by the Congress Party under theleadership of Mrs. Sonia Gandhi, with Mr.Manmohan Singh as the Prime Minister,came to power. It is too early to say whatthis 100 days-old government holds instore for India. Nevertheless, as is the casein all progressive nations, it is mainly thecommercial development and multitude,and not the political processes, that keepsIndia going and growing.The Marine DriveThe market sizeIndia and Pakistan together annuallyimport about 5 million tons of phosphoricacid, about 2.5 million tons of variousodfjell quarterly 10

(petro-)chemicals and about half amillion tons of base oil and lubricants.In addition, albeit of less importance toOdfjell, some 5 million tons of vegetableoils are imported per year. For India, thelargest budget expense after defenseexpenditures are imports of crude oil andclean petroleum products, which amountsRush hour commutingto about 100 million tons per year. Withinthe next couple of years LNG will be thename of the game.Slowly but surely over the last fiveyears, India has grown as an exporter ofchemicals and petrochemicals. The leadingplayer in this respect is the Reliance groupthrough their massive 27 million tons peryear refinery at Jamnagar and their multifeedgas cracker at Hazira on the WestCoast of India. Products like paraxylene,benzene, LAB and glycols, but also castoroil, fatty acids and groundnut oil, areregularly being exported in bulk. Inaddition there is a huge export and importof speciality chemicals in iso-tanks and drybox containers. India is one of the worldleaders in the production and exports ofbulk drugs and pharmaceuticals.Odfjell services to the IndianmarketOdfjell has served the Indian marketfor many years, and continues to havea prominent market presence. We haveone vessel each month from the USGulf via South Africa and one ship fromNorthwest Europe via the Mediterraneanand Suez. Both ships normally go to WestCoast India and Pakistan, and continueonwards to the Arabian Gulf. Two-threevessels a month come from North Africaand/or South Africa with phosphoric acid,primarily discharging in one or two portson the west coast of India. In addition wehave one vessel every three weeks fromSingapore to India/Pakistan and onwardsto the Arabian Gulf. On an averageOdfjell makes about 9-15 port calls everymonth.Cricket, the shared “religion” in Indiasuggest that we are moving in the rightdirection. Recently we have been ableto load export cargoes on some of ourpositions. With our total activity level inthe sub-continent at about 1.5 milliontons per year, we are firmly entrenched inthis crucial and interesting market.We do not expect the Indian importmarket to grow dramatically, and wehave been fairly selective as to how muchof the import business we should pursue.There are always more opportunitiesavailable, but this would not be the wellpaying cargoes. However, establishingthe proper import business to India isalso a question of how many vessels wewish to have open, to take care of ourcommitments from the Arabian Gulf.With the ever-increasing production andexports of (petro-)chemicals in the MiddleEast, it is imperative that we maintainour share of the India/Pakistan importmarket to bring tonnage into the area ona commercially sound basis.Odfjell India - Our local teamOdfjell India covers the markets of India,Pakistan, Sri Lanka and Bangladesh. Thecompany started in New Delhi in 1987,and moved to Bombay in 1995 to focusmore on the growing chemical importbusiness which is primarily located on theWest Coast of India. The Odfjell India teamcurrently consists of seven people: SudeshKamath (joined the company 1988), AnupChatterjee (joined 1993), Hetal Vaishnav(joined 1996), Manisha Desai and SujataShetty (joined 1999) are taking care ofcommercial and operational matter, whileMahendra Patne and Suhas Kawale arecarrying out various other functions.We have a customer base in thesub-continent counting roughly 300companies with whom we are in directcontact, and due attention has to begiven to all. Four of us, led by Sudesh,are into marketing. We are visitingcustomers, domestic as well as in theneighbouring countries, keeping themupdated of our positions and followingup on inbound as well as outboundbusiness. Sujata is concentrating more onthe IT sector, which is also a major task. Inaddition to the marketing, we are closelycoordinating with the respective agentson West as well as East Coast of Indiaplus Pakistan, in order to achieve a quickturnaround for our vessels.Our share of the export market is stilllagging behind, but the last 18 monthsThe Odfjell India Team (from left: Anup Chatterjee, Suhas Kawale, Manisha Desai,Sudesh Kamath, Hetal Vaishnav, Sujata Shetty, Mahendra Patne)odfjell quarterly 11

Odfjell enters into New TerminalVenture in ChinaBy Siri-Anne MjåtvedtFor several years Odfjell has been involvedin the Chinese tank storage market, throughthe terminals in Dalian and Ningbo. OnJune 24th 2004 Odfjell signed a joint ventureagreement with Jiangsu Garson InvestmentCo. Ltd to establish a new Chinese terminal,Odfjell Terminals (Jiangyin). Garson is a wellknownproducer of PET, but is also a traderand distributor of petrochemicals. The newcompany is a 45/55% split between Garsonand Odfjell, and has an initial investment ofabout US$ 30 million. This will be one of twointernational tank storage companies operatingon the Yangtze River.As the name indicates, the new terminalwill be situated in the city of Jiangyin in theJiangsu Province, on the south riverbank of theYangtze River between Shanghai and Nanjing.Jiangsu Province is one of the richest regions inChina, and is today the most important areaof consumption of chemicals and downstreamproducts in China. Main products imported areSM, MEG, Methanol and BTX (mainly toluene),but there are also large volumes of sulphuricacid being imported from Japan and Korea.In addition comes import of smaller quantitiesof products like DEG, phenol, acetone etc. Thelocal authorities in Jiangyin are providing thenecessary infrastructure to the terminal gate;roads, electricity, but also steam and waste waterarrangements. Garson’s main contribution tothe joint venture includes the rights to an areasuitable for a tank terminal with associatedberths. The land size is about 40,000 m 2 , withthe possibility for further expansion at a laterstage. One of the advantages of the locationis the wide shoreline, which can accommodateships up to 50,000 Dwt.From the signing ceremony in Bergen (from left: Wang, Weicheng (Party Secretay JiangjinProvince), Sun, Biao (Chairman of the Board, Garson Group), Terje Storeng (President/CEO,Odfjell), Svein-Gustav Steimler (Senior Vice President Odfjell Terminals) and Dan Odfjell(Chairman of the Board, Odfjell))Construction of the first phase of the terminalwill commence already in December 2004/January 2005, and will include erecting a tankfarm with approximately 80,000 cbm (around20 bonded storage tanks) and a berth that canaccommodate 2 x 50,000 Dwt ships and threesmaller tankers. Of the estimated throughput of800,000 mts of chemicals, Garson will generateabout 200,000 mts. The first phase is estimatedto take some 15 months to complete, andthe plan is to further develop the terminal inaccordance with the market requirements andneeds.Exchanging gifts with our newChinese partners.Preliminary plans for the new tank storage terminalodfjell quarterly 12

The Way We Are OrganizedOur Associated SouthAmerican TerminalsTruck loading at DQM in Callao, Peru.Moreover, excellent dockside land hasbeen acquired for a new terminal atVentanas (in Chile, within the QuinteroBay, just north of Valparaiso), andwe have also secured land for a newterminal in the bay of Mejillones, justnorth of Antofagasta, North Chile.The TAGSA Campana terminal in Argentina.The first Odfjell terminal ever was builtin Buenos Aires in 1968. As amongstour shipping competitors, we were thus”first off the block” with own docksidetank storage facilities.The second terminal in Santos is plannedwith an initial capacity of 50,000 cbm.The river terminal in Ladario will besmaller, in keeping with local inlanddemand.Our Chairman’s brother, Carl-HenrikOdfjell is in charge of these privatelyowned terminals that, between them,employ altogether about 500 people.In addition, incidentally, there is theOdfjell Vineyards in Chile, whichemploys 50 persons year-around -- andmore than double that number duringgrape harvesting. Thus, south of theborder, we very much keep up theage-old slogan of Odfjell, for anythingliquid...In South America ever since therehas been a more or less continuousexpansion, both in terms of individualterminal capacities and capabilities andin overall number of such efficient ship/shore interfacing units. Headquarteredfrom São Paulo, and dotted along thecoasts of Brazil (4), Argentina (2), Chile(1) and Peru (1), the Odfjell family nowcontrols altogether eight tank terminalsand two dry-cargo terminals.Newsworthy perhaps are the two newtank terminal projects in Brazil; one inSantos, in the Alamoa area, and anotherin Ladario (Corumba) on the ParaguayRiver, that is, on the Brazilian side ofthe border with Bolivia, some 250 kmup-river by barge from Buenos Aires...The Ladario river terminal, our dry bulk operations to the left and the new tanks underconstruction to the right.odfjell quarterly 13

Risk Management NewsAdherence to ProceduresBy Toralf SørenesBow Pilot entering Shanghai in smog anddense trafficand organization. Their “field work” will beclosed with a three-day workshop whererelevant personnel from DNV and Odfjellwill participate. The objective of this projectis to make our operations safer by findingpotential risk areas, both technical andoperational, thereby enabling us to reduceor eliminate these. Their report is expectedin October 2004.The Safety Bulletin in the June 2004 issueof Odfjell Quarterly focused on factssurrounding the fatal tank explosions wehave had this year. These have caused a hardtime for many, in particular those directlyaffected. Within the Risk Managementsection, following up towards underwritersand implementation of short and long termpreventive measures have taken a lot of time.Risk avoidance and loss prevention have beenapproached as follows:1. Potential causes and preventive measures2. External review of our operations3. Potential underlying or root causes1 Potential causes and preventivemeasuresThe NCC Mekka and Bow Mariner cases are stillunder investigation by Flag State Authorities,and no conclusions or reports have yet beenissued. On our part, all relevant informationwe have been able to retrieve has beencarefully reviewed. Instructions and Memosto Masters have been issued, to quicklyreduce or eliminate the real and potentialcauses or risk factor we have identified.We have also been in contact with severalof our major customers, to report status,discuss facts and loss prevention, and listento general advice. At the time of writingthis article we have completed an in-depthrevision of our main shipboard instructions,the Shipboard Management Manual and theOdfjell Seachem Requirements & GuidelinesTank cleaningManual. The revision has focused onpreventive measures related to the recentaccidents and the use of nitrogen on ourships. At a later stage we will consider amore editorial and pedagogic revision withmain focus on making the manuals moreuser-friendly.2 External review of our operationsOdfjell top management has decided thatsomeone from an external entity shouldreview and make an assessment of cargorelatedfire and explosion risks on our ships.For this purpose we chose Det Norske Veritas(DNV), a highly recognized independentcompany with significant knowledge andexperience within shipping, both as regards“hardware” and “software”. They haveinterviewed key personnel in our offices,in particular those with recent seafaringexperience, and have reviewed our procedures3 Potential underlying or rootcausesThe simple question “why did this accidenthappen” will almost always lead onebehind the direct cause. The last and mostchallenging issue is therefore to find anddo something with underlying causes.Our procedures are based on regulations,industry guidelines and historical data likerecords, analysis of incidents and near misses.These procedures shall be instrumental indeveloping safe and good working routines.In most serious accidents one often finds asignificant element of procedures that havenot been followed. This is referred to asthe human element which to a great partis related to attitudes. To change attitudestakes time. One of our major challengesthe next couple of years will be to makea visible change towards safer operations,by improving our level of compliance withprocedures. The starting point is verificationof compliance through increased control. Ifthe controls reveal shortfalls, we must takethe necessary time to analyze what causedthe shortfall. Was it wrong attitude, lackof knowledge and subsequent need oftraining or unclear instructions? Whateveris found must be timely and systematicallyaddressed. Increased use of well publishedor known sanctions will also be consideredas a last resort. Odfjell top managementexpects to see a clear reduction in findingsby those controlling us, be it authorities, classsocieties or customers. The Risk ManagementDepartment will spearhead this task, but it isof utmost importance that everyone, on alllevels, ashore and aboard, supports us in thistask.odfjell quarterly 14

Vessel of the issueNCC BahaA Spanish-Arabian beautyBy Captain Hector ConnellNCC Baha was built at the Astilleros shipyardin Spain, originally as the ‘Portela’ for aBrazilian owner. Although the keel of thevessel was laid in 1982 she did not come intoservice until 1988, and thus, she is not quite asold as her build date suggests. The vessel hasbeen commercially operated through Odfjellsince 1989, first as ‘Fjellanger’ (Westfal-Larsen), then for a few months as ‘Bow Falcon’(Odfjell) before NCC took ownership in June1990 and gave her the current name. Since1999 Mideast Ship Management has beenresponsible for technical management.NCC Baha is powered by a 7,890 BHP slowspeeddiesel, with a service speed of 14knots. She has 21 cargo tanks, of which 11are of stainless steel, fitted with ‘Svanhoj’hydraulically driven deep-well pumps. Forextra commercial flexibility, four of theoriginal ballast tanks have been modified toenable the carriage of cargo.The current complement of 22 men comprisesa truly international team: British Master,Croatian Chief Officer, Australian ChiefEngineer, South African Second Engineer,and the balance of officers and ratingbeing Filipino. Several of the crewmembershave served previously on the ship, and themanning stability facilitates maintaining thestandard of condition and operation of thevessel.This year NCC Baha has been operatingbetween North Europe and South America,and she has also completed voyages to theMiddle East, India and South Africa. Visitsto the Middle East offer the welcomedopportunity for visits on board from themanagement office, which enhances a closercontact both professionally and socially.The NCC Baha crew ready for some off-duty fun.Vessel operations give the officers and crew avariety of seamanship challenges, with diversecargoes and navigation to small ports in remotecountries. The NCC Baha is almost continuouslyfully loaded, loading and discharging in eachport of call, which puts extra demands withregard to normal shipboard maintenance.The weather conditions are adding to thecrew’s challenges, as the vessels are runningalmost continually in a hostile environmentto new coating applications. The size of theship results in seawater being shipped on deckeven in moderate seas, and every weatherwindowof opportunity must be taken to carryon the constant battle against the elements.Some of the favourite pastimes at sea arewatching films and playing computer games.We have a fully equipped gymnasium onboard, but it is not used so much. At timesthe gym could be mistaken for a sauna due tothe heat generated by two washing machinesand two tumble-driers. Regrettably there is noroom for table tennis on board as this is oftena favourite with our Filipino crew. Writingletters seems to be a thing of the past notingthe very small amount of mail that is eithersent or received. When in port and withincellphone range, the ‘in’ thing is now to talkdirectly with family and friends or to sendSMS messages. E-mail facilities for the crewhave also changed the traditional mode ofcommunication with friends and family.The implementation of the ISPS Code as fromJuly this year has put an extra burden on thealready overloaded duties of the seafarer. Ithas also severely restricted the chances forshore-leaves. Those on board hope that withsome refinement, the system may adaptsomewhat to needs of the seafarer’s limitedtime for recreation. Whenever possible, goingashore is still a preferred pastime. Duringdry-docking and repair periods, visits to localplaces of interest are always arranged forthe officers and crew. These visits are wellreceived, and the benefits to crew morale andproductivity are clearly apparent.odfjell quarterly 15

Bow Petros, one of Odfjell’s vessels being affected by the out-phasing schemeTable 1 - Criteria for vessel out-phasing categorisationFleet supply impact and possibleadaptationsThe phasing out of single-hull tonnagewill have a significant impact on the fleetsupply. Many tanker-owners will findtrading their ships commercially muchmore difficult, as the ships will be excludedfrom a considerable share of their currentbusiness. In the period to 2010, some 1,100ships totalling about 30 million Dwt will beaffected in the 5-50,000 Dwt range alone.Hence, the question of how to adapt tothe new requirements is very interesting.Table 2 shows the IMO phase-out of shipsfrom 2004 to 2010, as the delivery date ofthe ship each year. Please note that beforeIMO adopts the EU accelerated out-phasingscheme in April 2005, the somewhat morerelaxed IMO out-phasing ruling will apply.Thus, during 2004 and first quarter of 2005there will apply stricter rules for tankerscalling EU ports or flying EU flag than whatis the case elsewhere.As the three out-phasing categories arebased on delivery date and type of oilcargo the ships can take, it is under certaincircumstances possible to re-categorise orupgrade some Category 1 ships to eitherCategory 2 or Category 3 ships. This willprolong the life as oil tankers for theseships. However, this kind of “paperexercise” will either put limitations onthe type of oil product they may carry,or exclude some tanks from loading oilproducts. Another much discussed optionis to re-categorize a single-hull tankeras double-hull tanker, by designatingall wing-tanks for non-oil cargoes only,e.g. chemicals. Hence, the wing-tankswill provide sufficient protection to thecentre tanks, as for a double-hull tanker.However, this alternative may not alwaysbe commercially viable for a ship-owner.Table 2 - Out-phasing scheme for non-double-hull tankers 2004 - 2010.odfjell quarterly 17

A new location forOdfjell’s PID laboratoryIt has been a while since we have heardfrom the Petrochemical Industrial Distillation(PID) unit, the processing plant at OdfjellTerminal (Rotterdam). In this issue of theOdfjell Quarterly, we put the light on PID’slaboratory, which only a few weeks agomoved into new premises. We have spokenwith Nils Taal, Manager Laboratory, proudlyintroducing his department.Research“Before we can distillate a new product,we often have to execute a detailedinvestigation on how we can carry out theprocess in the best and most efficient waypossible and what the results are likely tobe. Such investigations are made at the PIDlaboratory. After the theoretical approach,the next step is a small-scale trial-distillationthat we carry out in our laboratory. In thisway we can closely monitor what the resultsof the process actually will be”, Nils explains.The samples taken during these trial-sessionsare being analyzed very minutely. Based onthese sample results PID specifies the qualityof the end products in the contracts with itscustomers.Process and quality controlThe PID laboratory ensures a continuoushigh quality of the products that are beingdistilled by the PID. Both the productscoming from the feedstock-tanks as wellas finished products are analyzed on theirspecific characteristics. “We also takesamples during the distillation process andanalyze those on key parameters. In this waywe can not only guarantee the quality of thedistilled products, but also the continuity ofthe process”.Nils continues his story: “In the PID-laboratorywe have two very experienced analysts, Anitavan den Bulk and Johan de Jong, and myselfas manager of the laboratory. The abovementionedactivities are done by Anitaand Johan during normal office hours. Butdistillation is a continuous activity, 24 hoursa day – 7 days a week. Outside normaloffice-hours the quality control is handedover to the PID-operators, working in shifts.Before leaving for the evening or weekend,the analysts make sure that all analysisequipment is ready for use by the operators”.Nils confirms: “By working in this way, theproduct quality is secured and guaranteedthroughout the entire distillation-process”.The PID laboratory’s new premisesMoving the laboratoryWednesday September 8th was an importantday for PID’s laboratory-personnel, whenthey moved into the same building asSaybolt. Saybolt is one of the world’s largestinspection companies, and it has an office andlaboratory in OTR’s new office building sincethe beginning of this year. Nils recalls: “Withthe help of a removal company, Saybolt-staffand our own people, all equipment, fittings,documents and administration were movedfrom the old laboratory to the new one.We have our own restricted area withinSaybolt’s laboratory, accessible for Odfjellstaffonly”. Coincidentally, Odfjell PID isalso an important customer for Saybolt, whoanalyses a lot of samples of finished productsat our request. However, Odfjell PID andSaybolt are two different, independent andstrictly separated companies. Nils stresses:“The process and research activities are fullyin our control and discretion, to protect ourcustomer’s interests by guaranteeing 100%secrecy and independence to them”.Beneficial for the customer“Operating next door to Saybolt offerssubstantial benefits”, Nils concludes. “Thelines of communication between us arevery short and consequently the time forprocessing of analyses as well. The result isthat our customers get the analysis-resultsand their processed product much sooner.Another big advantage is that we can useequipment from Saybolt, whenever needed.Preparing for a laboratory test distillationIn short: The relationship with Saybolt leadsto an optimal process control”.Whilst preparing equipment for a nextdistillation, Nils ends: “If customers orcolleagues are interested to see what the PIDlaboratory is all about, feel free to contact usor just pop-by. Also if you have any question,don’t hesitate to call us”.odfjell quarterly 18

The Odfjell Quarterly Brain TeaserThe treasure onWabble IslandOn the very small and remote Wabble Island live two kinds of people;half the inhabitants are wibblers and the rest are wobblers. They look,move and sound just the same, but for one important difference: thewibblers always tell the truth whilst the wobblers always lie. An ancientmyth tells of a grand treasure being buried somewhere on the island, andone day a treasure hunter, Fan Oddbow, arrives on the island to try tofind it. However, before starting to excavate Mr. Oddbow wants to knowwhether there really is a treasure or not, a fact to which the natives areall familiar. The Wabble Chief has allowed him one question only, towhatever person he chooses to ask. The problem for our friend Fan isthat although the islanders understand English perfectly, a strict tabooforbids them to use non-native words. Hence, when asking them a yes/noquestion, they reply ‘Zil’ or ‘Ding’. The trouble is that neither we nor ourfriend Fan know which of ‘Zil’ or ‘Ding’ means yes and which means no.And here finally we arrive at this issue’s brainteaser: How can FanOddbow in just one single question establish whether there is a treasureon Wabble Island? Remember that he does not know whether hisrespondent is a truth-telling wibbler or a lying wobbler, or what ‘Zil’ and‘Ding’ really means.We await your solutions, by November 15th at the very latest. And asusual, to qualify you will have to indicate the reasoning behind youranswer. Good luck!Solution to the previous Odfjell Quarterly Brain Teaser:In the summer issue the problem was to establish whether Anna or Barbara started servingin the first set, which Anna won 6 - 3. Five of the games were won by the player who didn’tserve. There are several ways to reach to correct solution, and below we offer a somewhatmathematically oriented solution:Let’s call the player serving in the first set P and her opponent Q. Nine games were played,thus P served in five games and Q in the remaining four. Assume P won x of the games sheserved and that she won y of the games she didn’t serve. Hence, P lost 5-x of the games sheserved, and consequently, Q won 5-x of the games she didn’t serve. The sum of games wonby the player not serving is y+(5-x), which according to the problem equals 5. Hence: y + (5-x)= 5, which gives x = y. The means that P won x+y = 2x games. This is an even number, andhence, Anna, who were the only player winning an even number (6) of games, must be P.Conclusion: Anna served in the first game.We have received eleven suggestions for solutions, which perhaps may not seem too bad.However, seen in context with the total number of readers (4,000 copies, each read by onaverage 1.6 (or so) persons) the response rate is ridiculously low. Nevertheless, praise andhonour to the six persons who submitted correct solutions. We also send somewhat morelimited applause to the two (both from Houston) who sent the correct answer (Anna), butfailed to provide a reasonable explanation why. Again we had to draw the winner, andthis time the prize and praise go to Ronaldo Gimenes, Odfjell Brasil in São Paulo. Parabéns,Ronaldo!odfjell quarterly 19

Greetings From Around the WorldHere Comes the Sun ...Ø Ø Ø...to SingaporeBy Gareth WilliamsJuly heralded the inaugural visit of theBow Sun to Singapore, and her arrivalwas keenly anticipated by more than afew. The closest that most of us here inAsia have come to seeing one of the newPolish ships is Jan Hammer’s article in theJune 2003 Quarterly.With ISPS and general securityconsiderations in Singapore it is not alwayspossible to visit our vessels. Fortunatelythough, the Bow Sun was alongside atOiltanking to coincide with a logisticsmeeting scheduled there with our sistercompany for the afternoon of July 8th.This presented an ideal opportunity forAtle Knutsen, Port Captain Frode Jusnes,Chin Hao Bay (Oiltanking), and myself tovisit the ship and accept Captain Kvalvåg’skind invitation to dinner.The new Polish class ships undoubtedly havea commanding presence. The manifoldplatform area is substantially larger thanon the Kvaerners, which immediatelycreates an impression of size. In additionto this, the cargo control room is of coursehoused in the main superstructure, whichaffords an unobstructed view forwards tothe forecastle mast. For someone involvedin the CPP sector of the industry, it’s goodto see those 10 ton SWL cranes.Inside, Captain Kvalvåg gave us a guidedtour of the bridge. The main cluster ofcontrols and the overall layout is notdissimilar in design to that a flight deck,with the notable exception of course thatflight decks do not have bridge wings...Over dinner it transpired that PortCaptain Frode Jusnes and Chief OfficerRoy Johansen had previously shared apost on the NCC Najran, so there was aneasy atmosphere and plenty of time tocatch up. A very enjoyable evening andour thanks to everyone on board the BowSun. We look forward to seeing you backhere in September/October.Bow Sun at berth in Singapore(Photo: Julie Thong)...and to South AfricaBy Mel PinksOn July 30th 2004 a function was heldaboard Bow Sun for our long-term client F.R. Waring. Some 36 guests from FR Waringand the local edible oil industry wereentertained to a buffet style luncheonon board the vessel at Durban’s MaydonWharf, where Bow Sun was dischargingpalm oil products for FR Waring to thetanks at the Indian Ocean Terminals. Afterlunch the vessel’s master, Captain Kvalvåg,organised various tours of the vessel forthe guests, covering both deck and engineroom. This was the first call for one of thenew Poland class vessels in South Africaand without doubt, Odfjell’s commitmentto providing the parcel tanker industrywith ”state of the art” tonnage is morethan adequately demonstrated by thequality and sophistication of this vessel.Bow Sun at Maydon Wharf in DurbanAt Odfjell Seachem South Africa we wouldlike to thank FR Waring for their supportover the past ten years, and we lookforward to providing many more yearsof service to them. We would also like tothank Captain Kvalvåg and his crew fortheir hospitality on board which resultedin a very enjoyable afternoon for all.odfjell quarterly 20

A South African traderin vegetable oilsBy Derrick Francis,Senior Trader, FR WaringFR Waring was founded in 1929, and isafter 75 years one of the oldest tradinghouses in South Africa. The original aimof the company was to trade and brokeagricultural produce on the local market.Soon government restrictions in local trademade the company focus on internationalmarkets, specifically the export of grain. Thisactivity remained the principle activity of thecompany until the 1980s.From the early 1980s a series of poorsummer crops prompted a demand for theimport of products that were previouslyproduced locally, and the company startedimporting oilseeds, grains, oilcakes andvegetable oils. These activities have moreor less continued since then, with volumesfluctuating according to the size of the localcrops. During this period the company alsotargeted regional trade in Southern Africa,principally with Zimbabwe, Malawi, Zambiaand the BLSN countries.From 1990 onwards the domestic marketopened up again, and the focus of thebusiness switched to re-establishing thecompany as a major domestic player in thegrain and oilseeds markets, at the sametime maintaining it’s position in the importmarket for oils and fats, especially palm andlauric oils from Malaysia and the soft-oilsfrom South America.The palm oil productsToday FR Waring offers the full range ofstandard palm products, and together withmajor Malaysian refiners we have introducedseveral tailor-made palm products to thismarket. The products imported have severaluses, and are often key ingredients in awide range of finished goods which includelaundry and toilet soaps, margarines, highspec bakery fats and shortenings, coffeecreamers as well as other specialty fats. Thepositive health and nutritional properties ofpalm oil for frying and cooking purposes, aswell as the versatile use of laurics in oleochemicalapplications make palm productsincreasingly popular with South Africanmanufacturers across the various palmprocessingindustries.Bow Chain calling Durban to discharge palm oil products for the account of FR Waring.with consumers demanding good qualitymaterials, at best market prices, shippedon time to meet their operational needs.To this end, the core relationships enjoyedby FR Waring, with first class suppliers ofpalm products and service providers, likeOdfjell, ensure that we offer a seamless andcompetitive door-to-door service. Warings intheir pursuit for service excellence remains acritical component of the supply chain forpalm imports to Southern Africa.Relationship with OdfjellThe relationship between Odfjell andWaring commenced more than ten yearsago, when Odfjell approached Warings tosee if by working together they could obtaina significant share of the palm and lauricoil freight business to Southern Africa fromMalaysia and Indonesia. A strong workingrelationship was established, which hasultimately resulted in both Odfjell andWarings becoming significant players withinRigging the shorelines for discharging theWaring cargoes.the markets they serve. The business ofsupplying palm products to any destinationaround the globe is fairly reliant on suitablefreight from source to destination. Thefreight component is especially important asships need to be fully compliant in all aspectsto handle the various grades of products.The South African MarketThe South African market has evolvedover the years to become competitive,Waring staff, from left: Derrick Francis,Rachelle Beukes, Christopher Berryodfjell quarterly 25

Quality SectionThe Quality RenaissanceProject statusBy Freddie FosseHighlights and learning pointsUp and running again after a nicesummer holiday period, the QualityRenaissance Project is now concludingits second phase. The various businessunits have identified and describedtheir business processes at an overalllevel, likewise the process risks involvedhave been reviewed. Based on the PhaseII business unit input, the prioritiesfor the next phase are revealed. Wehave noted that the second phasewas conducted with various grades oforganisational involvement.Within our commercial operations, the tanker chartering andoperation processes will benefit from scrutiny, mainly due toits commercial criticality and value adding. It is also a fact thatthese processes historically have been subject to limited qualityassurance efforts. To drive the dive a dedicated project teamfacilitated by external consultant Ragnar Tysland has beenestablished involving key OS people, all under the command andsupervision of Jan Hammer and Freddie Fosse.The major terminals are familiar with the process approach.A model consisting of six main processes has been identified.The Terminal Management’s intention for the third phase is todefine global standard business processes based on best practiseassessments.The process - a conceptual viewAlthough the term “process” is widely used, some will probablyask what it really is. A process is a set of activities which takentogether from a known starting point achieves an output tosatisfy an agreed customer need.The quality of our business processes becomes visible through theoutput, i.e. the performance results, profits and level of claims andproblems. Well-performing business processes are characterisedby high-level interaction, well-developed procedures andspecifications as well as skilled and well-motivated employees.Non-ConformanceIn our daily work most of us realise that things often don’t goas we planned. The reasons vary, but from time to time this willbe due to a non-conformance situation. A non-conformance isby definition a “non-fulfilment of a requirement or expressedexpectation”. We all make mistakes - it is even allowed to makemistakes, but we are not allowed to say no to learning from ourmistakes.Having reviewed the capability within Odfjell to deal with nonconformances,we still have some distance to go until we reachthe level of a well-developed learning organisation. In order tostart our move towards a better position there are some general“guidelines” we all should take note of:• Non-conformances should be notified whenrealised.• Non-conformances all have a reason behind (rootcause), they never just happen.• Non-conformances require real action before beingconsidered closed.• Actions we make shall be assessed and confirmedeffective prior to closing a non-conformance item.• In well-developed organisations human error is notaccepted as a root cause.We know for sure that in parts of Odfjell these rules are wellknown and complied to, but in spite of this it will be beneficial toreview the practise with all business units.In order to improve our capability to learn from non-conformances,we have initiated a two-day event in close cooperation with DNV.This course will improve our root cause analysis skills in orderto make better corrective and preventive actions. The initialcourse is scheduled to take place in October, with semi-annualrepetitions.odfjell quarterly 26

Future Ship Managementof Odfjell-owned vesselsBy Jan Didrik Lorentz and Helge OlsenOdfjell has always had a majority ofowned vessel under own management,but also a significant share of thetonnage placed under external shipmanagement. To increase our focus onsafety and performance, Odfjell hasdefined enhanced support and control ofthe ships as a strategic area. As a result wewill increase the number of Odfjell-ownedships under own management.In Bergen ship management will continuewith the current three fleet units, and allthe deep-sea stainless steel vessels will bemanaged from there. The managementof some of the coated ships previouslyon external management will betransferred to one of the Bergen fleetunits. Surveillance of ships on externalmanagement will also continue fromBergen.Expansion in SingaporeOdfjell Ship Management participatesin Odfjell’s expansion in East Asia. Ourship management activities started inSingapore a year ago with some of ourFrom the Ship Management Departmentregional vessels. Now Odfjell is establishinga complete unit in Singapore for a fleetof 10-18 ships. The unit will comprisetechnical and maritime superintendentsas well as purchasers, who will manageregional ships and a number of deep-seaships with coated tanks. They will getsupport from the Maritime Section, RiskManagement Section, Technology Sectionand Purchasing in Bergen. The branchfleet unit in Singapore is organized as asection of Odfjell Ship Management andshall operate under the same Safety andQuality Management System.Helge Olsen has been appointed VicePresident Fleet Management, and he willbe responsible for developing the newunit. Having qualified and experiencedships crew will be one of the mostimportant challenges. Another challenge,of course, will be to put together a wellqualified team of superintendents andpurchasers.External managementAlthough we will take many ships backon own management, we will continuewith some ships on external managementto have flexibility, for benchmarkingpurposes and to secure availability ofcompetent seafarers.Hanseatic Shipping CompanyLtd has carried out shipmanagement for Odfjell forseveral years, and currentlymanages four ships for Odfjell.OSM Norway AS is a wellreputedship managementcompany with main office inKristiansand. They will managethree vessels recently boughtby Odfjell.Odfjell will also increase thefocus regarding supervision ofall vessels operated, as a generalcorporate approach, to furtherimprove vessel performancewithin all relevant areas.Bow Panther, one of the Odfjell ships taken back on own managementodfjell quarterly 27

The Personnel CornerNEW HIRESOdfjell Terminals (Rotterdam):Marc BoelhouwerProject Engineer17.05.2004Frans ZalluPurchaser01.06.2004René StreeflandC2-Operator01.07.2004Theo van WissenManagerEngineering01.08.2004Paul van NiekerkKootenProject Engineer01.08.2004Odfjell Korea Ltd.:J.H KimOperation Manager01.12.2003Sylvia KimPort Coordinator01.06.2003Y.T. KwonPort Operator26.03.2004Danny KwonPort Operator01.02.2004D.H KimPort OperatorAssistant26.03.2004Odfjell Singapore:Y.J ParkAccounting/Secretary01.03.2004W.J LeeAccounting/Secretary01.03.2004Y.K ParkAccounting/Secretary16.02.2004Sylvia Peng Siew LowManager Accounts andFinance03.06.2004Chee Leong CheahIT Coordinator01.07.2004RELOCATIONSIN SERVICE FOR ODFJELL35 years25 yearsRoald GravdalSenior SurveyorBergen05.09.1969Jan Van der GaardenCo-operator StockAdministrationOdfjell Terminals (Rotterdam)01.07.1979Jan Kåre StrønenShip Broker, OdfjellSeachemRelocated fromHouston to Bergen01.07.2004Nils O. LekvenShip Broker, OdfjellSeachemRelocated fromHouston to Bergen01.07.2004Siri Anne MjåtvedtTerminal Controller,Odfjell TerminalsRelocated fromSingapore to Bergen15.09.200430 yearsBas KleinjanSupply CoordinatorOdfjell Netherlands BV01.04.74Retired 01.06.04Paul GordenManager ICTOdfjell Terminals (Rotterdam)01.08.1979Jan de LegeManipulation Co-ordinatorOdfjell Terminals (Rotterdam)01.09.1979odfjell quarterly 28

New positionsHelge Olsen hasbeen appointedVice President FleetManagement inSingapore. Helge hasbeen with Odfjell sinceOctober 2000, holdingthe position as Headof Technology Section.He has previously beenemployed as Directorof the MaintenenceDivision of the RoyalNorwegian Navyand has a Master ofManagement degree.He will take up his newposition November15th 2004.Svend Foyn-Bruun hasbeen appointed VicePresident OperationalSupport, as fromSeptember 1st. Svendholds a degree fromthe Royal NorwegianNaval Academy andhas taken a Master atthe Norwegian Schoolof Management. Hehas been with Odfjellsince 1996, and hasexperience from shipoperations and asManager at Hoyer-Odfjell. His last positionwas Manager CargoHandling and Rules &Regulations.We wish both of themall the best in their newpositions.Service Awards to OdfjellEmployeesOn September 9th, at the ShipOfficers Conference dinner forconference participants and invitedpersonnel from the Bergen Office,our Chairman Dan Odfjell had thepleasure of presenting gold medalsand/or gold watches to long-faithfulemployees of Odfjell, both shipboardand shore-based personnel. The goldmedal is awarded by the NorwegianShipowners’ Association to seafaringemployees having completed30 years of service, of which atleast half the time with the samecompany. The gold watch is for 25years of service with Odfjell. In hisspeech, Mr. Odfjell expressed hisappreciation and gratitude to theaward receivers for their outstandingand loyal service to the company.Editor´sCornerEarly September I hadthe undiluted pleasure ofattending the Ship OfficersConference dinner. It is alwaysvery nice to have a chanceto meet our seafaring colleagues in such amiablecircumstances, and man, do these guys know how totell a story! As the editor of this newsletter, however, Iwas a bit perturbed by hearing complaints from someof the sailors that Odfjell Quarterly contains too littlecoverage of the vessels and life at sea. Although I haveto admit it felt a bit unfair there and then, we still haveto face the challenge.It is and has always been our definite intention that themagazine should reflect what’s going on in our entireorganization, at sea and on land. However, we are fullydepending on the material that we receive from all ourcontributors throughout Odfjell. Hence, let me pass thechallenge back to you. If you want more coverage fromyour arena you simply have to supply text and picturesthat portray it. Be it from a vessel, a tank terminal,a container outfit or some administrative/marketingunit. And when you do, please send both text andpictures. If you have a story that you feel is relevantto the magazine, try to add a picture or three asillustrations. And if you have a couple of nice pictures,we also need some text that explains the situationand provides names to the people appearing on theshots. The quality of the pictures is another importantissue. To be able to print them at all, these need to besharp, well lit and with a reasonably high resolution.Although pictures below 100-200 kb may look OK ona computer screen, they’re too small to be printed inany size larger than that of an average postage stamp.So please send original and uncompressed picture filesor paper copies.You may feel that nothing particular is happening atyour place, and thus, that there is nothing to report.Nevertheless, what you consider everyday routine maystill be interesting for someone that does not live andbreath in the same habitat. As an example, I am surethat many of our readers, I for starters, would loveto read a story with some pictures portraying life andwork on a ship during really rough weather. Or to beeven more specific: in our December issue we wouldlike to present how you celebrate Christmas on board,and I ask all ships to supply words and pictures thattell of yuletide festivities and traditions at sea. Do youaccept my challenge?This is the last issue of Odfjell Quarterly being producedby Mr. Jan Ellingsen and his company Feedback AS, atleast for now. Jan has produced a total of 48 issuesfor us, and has played an important role in thedevelopment of Quarterly, from the four page “folder”that appeared back in 1992 to the magazine we knowtoday. We really appreciate his excellent work for us,and we wish him all the best and much success.Back from left: Knut Henrik Kristiansen (medal and watch), Dan Odfjell, JanEinar Nikolaisen (medal), Bjørn Hovland (medal), Idar Åge Remman (medal andwatch), Sten Arild Pedersen (watch).Front from left: Lars Tjore (medal), Atle Bækken (medal), Bjørn-Åge Veivåg(medal).Regards,Klausodfjell quarterly 29

Fleet, terminal and container overviewGLOBAL TRADESHIPYEAR BUILTDWTCBMSTAINLESSSTEEL, CBMNUMBEROF TANKSOWNED:T/C:Bow Spring 2004 39 942 52 126 52 126 40Bow Star * 2004 39 832 52 126 52 126 40Bow Sun 2003 39 842 52 126 52 126 40Bow Firda * 2003 37 427 40 515 40 515 47Bow Chain * 2002 37 518 40 515 40 515 47Bow Favour 2001 37 438 40 515 40 515 47Bow Century 2000 37 438 40 515 40 515 47Bow Fortune 1999 37 395 40 515 40 515 47Bow Cecil * 1998 37 345 40 515 33 236 47Bow Flora 1998 37 369 40 515 33 236 47Bow Cardinal 1997 37 446 41 487 34 208 52Bow Faith 1997 37 479 41 487 34 208 52Bow Cedar 1996 37 455 41 608 34 329 52Bow Fagus 1995 37 375 41 608 34 329 52Bow Clipper 1995 37 166 41 492 34 213 52Bow Flower 1994 37 221 41 492 34 213 52Bow Sea 1978 27 950 34 656 21 035 43Bow Hunter 1983 23 002 25 026 21 031 28Bow Pioneer 1982 23 016 25 965 20 969 28Bow Eagle 1988 24 728 32 458 19 662 25Bow Viking 1981 33 590 40 956 21 745 36Bow Fighter 1982 34 982 41 184 6 299 34Bow Lancer 1980 35 100 42 468 6 252 34Bow Heron 1979 35 289 42 109 5 882 31Bow Cheetah 1988 40 258 47 604 - 29Bow Leopard 1988 40 249 47 604 - 29Bow Lion 1988 40 272 47 604 - 29Bow Panther 1986 40 263 47 604 - 29Bow Puma 1986 40 092 47 604 - 29Bow Petros 1984 39 722 47 963 - 28Bow Transporter 1983 39 738 47 963 - 28Bow Lady 1978 32 225 41 354 3 077 42Bow Princess 1976 32 362 42 480 1 400 42Bow Peace 1987 45 655 52 173 2 167 23Bow Power 1987 45 655 52 173 2 167 23Bow Pride 1987 45 655 52 173 2 167 23Bow Prima 1987 45 655 52 173 2 167 23Bow Prosper 1987 45 655 52 173 2 167 23Bow Fertility 1987 45 507 52 173 2 167 23Bow Fraternity 1987 45 507 52 173 2 167 23Bow Maasstad 1983 38 039 48 866 - 22Bow Maasstroom 1983 38 039 48 866 - 22Bow Maasslot 1982 38 039 48 866 - 22NCC Jubail 1996 37 499 41 488 34 209 52NCC Mekka 1995 37 272 41 588 34 257 52NCC Riyad 1995 37 274 41 492 34 213 52NCC Yamamah 1977 28 053 34 656 21 035 43NCC Jizan 1976 28 024 34 656 21 035 43NCC Jouf 1976 28 026 34 656 21 035 43NCC Madinah 1976 28 053 34 656 21 035 43NCC Asir 1983 23 001 24 965 20 969 28NCC Arar 1982 23 002 24 965 20 969 28NCC Baha 1988 24 728 32 458 19 662 25Bow Sky 1977 28 083 34 656 21 035 43Bow Neptun 1976 28 060 34 656 21 035 43Bow Saturn 1976 28 030 34 656 21 035 43Bow Merkur 1975 27 952 34 656 21 035 43Bow Americas 2004 19 707 22 050 22 050 36Brage Pacific 1997 17 460 18 620 18 620 24Brage Atlantic 1995 17 460 19 587 19 587 22Isola Blue 2001 26 660 28 115 28 115 27Bow Andino 2000 16 121 17 270 17 270 30Hibiya Park 1990 13 921 16 053 10 721 24Number of ships: 63 2 140 318 2 509 467 1 222 368odfjell quarterly 30

REGIONAL TRADESHIPYEAR BUILTDWTCBMSTAINLESSSTEEL, CBMNUMBEROF TANKSOWNED: Bow Master 1999 6 046 6 878 6 878 14Bow Mate 1999 6 001 6 864 6 864 14Bow Pilot 1999 6 000 6 865 6 865 14Bow Sailor 1999 6 000 6 870 6 870 14Bow Marino 1988 11 289 11 445 6 386 17Bow Giovanni 1987 11 290 11 445 6 386 17Bow Antisana 1989 8 192 9 899 5 777 22Bow Gorgonilla 1989 8 192 9 899 5 777 22Bow Andes (50 %) 1977 28 060 34 756 21 136 43Bow Pacifico (50%) 1982 18 657 22 929 10 849 31Owl Trader 1982 12 450 14 482 8 070 22Angelim (50 %) 1985 10 259 10 136 6 500 18Araucaria (50 %) 1984 10 259 10 159 6 500 18Jatai (50 %, LPG) 1979 4 452 4 031 - 3T/C: Bow de Rich 2003 12 452 13 300 13 300 22Bow Wallaby 2003 11 951 13 486 13 486 22Bow de Feng 2002 12 514 13 289 13 289 22Bow West 2002 12 503 13 299 13 299 22Bow de Silver 2000 11 747 12 296 12 296 20Bow de Jin 1999 11 752 12 296 12 296 20Bow Asia 2004 9 901 10 866 10 866 20Bow Singapore 2004 9 888 10 867 10 867 20Bow Wave 1999 8 594 9 225 9 225 20Bow Wind 1999 8 587 9 226 9 226 20Jacaranda (50%) 1978 9 970 9 924 5 877 17Aragas (50 %, LPG) 1983 9 300 8 026 - 5Multitank Balearia 1998 5 870 5 941 5 941 20Multitank Batavia 1998 5 870 5 941 5 941 20Multitank Badenia 1997 5 870 5 941 5 941 20Multitank Bolognia 1997 5 870 5 941 5 941 20Multitank Bracaria 1997 5 870 5 941 5 941 20Multitank Brasilia 1997 5 870 5 941 5 941 20Multitank Bahia 1996 5 870 5 941 5 941 20Multitank Britannia 1996 5 870 5 941 5 941 20Number of ships: 34 323 266 350 285 276 412YARD DELIVERY DWT OWNER STATUSON ORDER: NB Szczecin - B588/III/4 1/2005 39 500 OdfjellNB Szczecin - B588/III/5 6/2005 39 500 OdfjellNB Szczecin - B588/III/6 12/2005 39 500 OdfjellNB Szczecin - B588/III/7 6/2006 39 500 OdfjellNB Szczecin - B588/III/8 12/2006 39 500 OdfjellNB Shin Kurushima(Bow Santos) 11/2004 19 990 Time-charterNB Fukuoka 10/2005 19 700 Time-charterNB Shin-Kurushima 12/2005 19 990 Time-charterNB Kitanihon 8/2005 30 000 Time-charterNB Kitanihon 5/2006 30 000 Time-charterNB Kitanihon 9/2006 19 800 Time-charterNB Kitanihon 11/2006 19 800 Time-charterNumber of newbuildings: 12 356 780* - Vessel beneficially owned through financial lease.TANK TERMINALSSTAINLESS NUMBERTERMINAL LOCATION SHARE CBM STEEL, CBM OF TANKSOdfjell Terminals (Rotterdam) BV Rotterdam, NL 100 % 1 540 000 31 000 300Odfjell Terminals (Houston) LP Houston, USA 100 % 270 563 81 902 92Odfjell Terminals (Dalian) Ltd Dalian, China 64 % 59 700 5 750 35Odfjell Terminals (Korea) Co Ltd Onsan, Korea 50 % 109 500 2 850 39Oiltanking Odfjell Terminal Singapore Ltd Singapore 50 % 213 000 5 700 51VOTTN Ltd (Ningbo) Ningbo, China 12.5 % 63 500 7 900 36Total capacity 2 256 263 135 552 553TANK CONTAINERS7 990 units operated as per September 30th, 2004.odfjell quarterly 31

OFFICES AND ADDRESSESMAIN OFFICEOdfjell ASA - Odfjell Seachem ASConrad Mohrs veg 29, P.O. Box 6101Postterminalen5892 Bergen, NORWAYTel: +47 5527 0000Fax: +47 5528 4741Fax: +47 5527 9070 (Chartering/Operations)odfjell quarterly 32 4INTERNATIONAL OFFICESOdfjell USA LP12211 Port RoadSeabrook, TX 77586, USATel: +1 713 844 2200Fax: +1 713 844 2211Odfjell Singapore Pte Ltd6 Shenton Way, # 27-08/09 DBS Tower 2SINGAPORE 068809Tel: +65 6349 1300Fax: +65 6224 2285Odfjell Japan LtdOgawa Bldg. 8F2-2 Uchikanda 1-ChomeChiyoda-ku, Tokyo 101-0047, JAPANTel: +81 3 3259 8555Fax: +81 3 3259 8558Odfjell Netherlands BVOude Maasweg 6, P.O. Box 50103197 XC Rotterdam-BotlekThe NETHERLANDSTel: +31 102 953 666Fax: +31 102 953 668Odfjell Brasil LtdaAv. Paulista 460 - 18 andarCEP 01310-904 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5808Odfjell ShanghaiUnit 2309 23/F CITIC Square1168 Nanjing Road WestShanghai, 200041 P.R. CHINATel: +86 21 5298 4068Fax: +86 21 5261 0288Odfjell Argentina SAAlicia Moreau de Justo 1960Office no. 202 - Puerto Madero1107 Buenos Aires, ARGENTINATel: +54 114 313 7837Fax: +54 114 313 4619Odfjell Australia Pty LimitedSuite 4, Level 1443 Little Collins StreetP.O.Box 1279Melbourne VIC 3001 AUSTRALIATel: +61 3 9642 2210Fax: +61 3 9642 2214Odfjell IndiaA-26, Nandbhuvan Industrial EstateMahakali Caves Road, Andheri (East)Mumbai 400093, INDIATel: +91 22 5695 4701Fax: +91 22 5695 4707Odfjell Seachem South Africa Pty LtdB & P House84 Armstrong AvenueLa Lucia RidgeDurban 4051, SOUTH AFRICATel: +27 31 572 8180Fax: +27 31 572 8188National Chemical Carriers Ltd CoRoom 301, 3rd Floor, Al-Akariyah Bldg No 1Sitteen Street, Malaz AreaP.O. Box 8931Riyadh 11492, SAUDI ARABIATel: +966 1 477 3934Fax: +966 1 476 4328Odfjell Korea Co LtdRoom 1301, Dongbu-Dadong Bldg.#103, Da-Dong, Jung-GuSeoul, KOREATel: +82 2 775 9760Fax: +82 2 775 9761Odfjell Manilac/o Magsaysay Maritime Corp.5th floor, 520 t.m. Kalaw StreetErmitaManila, PHILIPPINESTel: 63 2 526 9773Fax: 63 2 525 7720Odfjell Dubaic/o Sharaf Shipping AgencySharaf Building, Al Mina RoadP.O. Box 576,Dubai, UNITED ARAB EMIRATESTel: +971 4 351 9785Fax: +971 4 351 9756Terquim SAMolo Sur s/n, Casilla 148San Antonio, CHILETel: +56 35 211 050Fax: +56 35 211 161Odfjell (UK) Ltd14 Headfort PlaceLondon SW1X 7DHUNITED KINGDOMTel: +44 207 823 0605Fax: +44 207 823 0606REGIONAL OFFICESOdfjell Asia Pte Ltd6 Shenton Way, # 27-08/09 DBS Tower 2SINGAPORE 068809Tel: +65 6349 1300Fax: +65 6224 2285Odfjell Ahrenkiel Europe GmbHGurlittstrasse 11Postfach 100 22020001 Hamburg, GERMANYTel: +49 40 24838 307Fax: +49 40 24838 319Flumar Transportes Fluviais e Maritimos LtdaAv. Paulista 460 - 18 andarCEP 01310-904 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5807TANK TERMINALSOdfjell Terminals (Houston) LP12211 Port RoadSeabrook, TX 77586, USATel: +1 713 844 2300Fax: +1 713 844 2355Odfjell Terminals (Rotterdam) BVOude Maasweg 6, P.O. Box 5010Harbour number 40403197 KJ Rotterdam-BotlekThe NETHERLANDSTel: +31 102 953 400Fax: +31 104 384 679Odfjell Terminals (Dalian) LtdNo. 3 Binhai North RoadZhongshan DistrictDalian 116001, P.R. CHINATel: +86 411 8262 9701Fax: +86 411 8262 3707Odfjell Terminals (Korea) Co, Ltd136, Cheongyong-RiOnsan-Eup, Ulju-GunUlsan, KOREATel: +82 522 311 600Fax: +82 522 376 636Oiltanking Odfjell Terminal Singapore Pte Ltd1 Seraya AvenueSINGAPORE 628208Tel: +65 6473 1700Tel: +65 6479 4500VOTTN, Ningbo LtdJetty No. 16 Zhenhai Port AreaNo. 1 Zhaobao Shan Road, Zhenhai DistrictNingbo 315200, P.R. CHINATel: +86 574 627 5929Fax: +86 574 627 5931TANK CONTAINERSHoyer-Odfjell BVOude Maasweg 6, P.O. Box 5025Harbour Number 40403197 XG Rotterdam-BotlekThe NETHERLANDSTel: +31 102 631 600Fax: +31 102 631 699Hoyer-Odfjell BrazilAv. Paulista 460 - 18 andarCEP 01310-904 Sao Paulo-SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5839Hoyer-Odfjell China21C East Ocean Centre588 Yan An Road EastShanghai 200001, P.R. CHINATel: +86 21 6351 9641Fax: +86 21 6351 9747Hoyer-Odfjell Dubaic/o Sharaf Shipping AgencySharaf Building, Al Mina RoadP.O. Box 576,Dubai, UNITED ARAB EMIRATESTel: +971 4 3520 555Fax: +971 4 3511 467Hoyer-Odfjell Singapore6 Shenton Way, # 27-10, DBS Tower 2SINGAPORE 068809Tel: +65 6223 4073Fax: +65 6225 6798Hoyer-Odfjell Inc16055 Space Center Blvd.Suite 500Houston, Texas 77062 USATel: +1 281 853 1000Fax: +1 281 853 1199www.odfjell.com