MARINE ENGINEERS MESSENGER
8 January 2018
DNV GL LOOKS TO THE FUTURE
ABB UPGRADES CCG FLEET
ONE THIRD OF SHIPS OPT FOR SCRUBBERS
ECOSPEED USED TO PROTECT SCRUBBER OUTLETS
DAMEN BWT SYSTEM IN MORE PORTS
WARTSILA ENTERS THE UNDERWATER HULL REPAIR BUSINESS
NAVAL DOME TESTS UNDERSCORE CYBER THREAT
MARINE ENGINEERS MESSENGER
MEM Issue 47
8 January 2018
pinion differs as to the shipping industry’s fortunes for 2018, with shipping adviser Moore Stephens
pointing to “encouraging signs of recovery, and potential for further improvement”, while the ratings
agency Fitch says the outlook for global shipping remains negative and does not “expect a material
improvement in market fundamentals due to lingering overcapacity”.
Looking further ahead, however, is DNV GL. According to the classification society’s Energy Transition
Outlook (Martime), published in late December, shipping will continue to enjoy robust growth. But from
2030 to 2050, demand will increase less rapidly , with growth primarily in non-energy commodities, such
as the container trade and non-coal bulk.
In addition to changing energy production and export patterns, shipping’s fuel mix will become much
more diverse. While DNV GL expects oil to remain the main fuel option for trading vessels upto 2050,
natural gas (LNG and LPG) will step up to become the second-most widely used fuel, and new low carbon
alternatives will proliferate.
“Big and rapid changes are happening in the way the world uses and produces energy,” says Remi
Eriksen, Group President and CEO of DNV GL. “[The report ] shows that by mid-century, the energy supply
mix is likely to split equally between fossil and renewables. Advances in energy efficiency will also see the
world’s demand for energy flattening after 2030. These trends will impact all players in the maritime
The classification society sees “the trends of today become the paradigms of tomorrow” as shipping
continues its drive for greater efficiency by reducing costs, improving utilisation, lowering fuel
consumption, increasing vessel size, and deploying new technologies.
The 82 page report states that the move towards decarbonisation will challenge the way ships are
designed and operated, while furture fleet-growth could be challenged by future regulations, requiring
significant investment to ensure compliance.
Changes in manufacturing processes will also have an impact. Additive manufacturing (3D printing),
robotisation, and automation, for example, could engender the relocation of production back to developed
countries, thereby shortening global value chains and potentially reducing demand for seaborne transport.
DNV GL predicts that digitalisation, in particular, is expected to change current business models and how
ships are operated, which may impact on their energy use.
In the report’s Executive Summary, DNV GL states that phasing in autonomous ships will open the way
for very low ship speeds without incurring high crew costs, and greater use of batteries and alternative
fuels. The results are reduced energy demand, fuel use, and emissions. However, based on its forecast of
the most likely future energy , the world will fail to achieve the Paris Agreement’s target of limiting
average global warming to well below 2°C above pre-industrial levels.
“Securing a 2°C future will not be achieved without a steeper reduction in the use, and hence transport,
of fossil fuels,” the report states. “But this low-carbon future would require more energy-efficient ship
designs and operations, and carbon-neutral fuels which, together with antipated regulations, might imply
significant investment to upgrade and renew ships.”
To help companies prepare for and mitigate carbon-related risk, the report includes a chapter on DNV
GL’s “carbon-robust ship” concept, describing a three-step approach for evaluating and improving the
carbon robustness of vessels and fleets.
HYBRID MODULES FOR ESCORT TUG
Wärtsilä will supply two HY 2 hybrid power modules for a new escort tug being built for the Swedish port of
Luleå located on the Gulf of Bothnia in the northern end of the Baltic Sea. The vessel is being built at Gondan
Shipbuilders, in Asturias,
Spain. When launched in
early 2019, it will become
the first vessel operating
with a Wärtsilä HY solution.
The Wärtsilä HY solution
will bring notable
environmental benefits, as
well as operational and
flexibility advantages that
result in considerable
economic gains. It will can
operate on electrical battery
power when in transit.
Although it is configured as
a mechanical set-up, the
mode will allow the number
of prime movers utilised to be reduced to just one for various operational tasks. These include ship assist with
a bollard pull of up to 55 tons, or 90 tons on two main engines in diesel-mechanical mode. A bollard pull of 100
tons will be available when in boost mode.
The vessel will be capable of being completely independent from additional charging facilities, since recharging
of the energy storage system will be automatically managed by the Energy Management System, the
"brain" of the Wärtsilä HY. In addition, the installed onshore electrical connection will give the tug the
flexibility to re-charge the energy storage system, even when the tug is berthed at the quay. The Wärtsilä HY
product's operational flexibility will yield significant fuel, emissions, and maintenance cost savings.
"We expect to see the Wärtsilä HY 2 hybrid power module becoming the new technological benchmark for
tug propulsion systems given its clear economic, operational, and environmental benefits. The Wärtsilä HY
technology opens the door to a new era in shipping, and is based on our unmatched in-house capabilities in a
broad range of disciplines," explains Giulio Tirelli, Director, Marine Engineering, Wärtsilä Marine Solutions.
"The integrated hybrid functionality of this vessel will give us a bollard pull of up to 100 tons, while saving
fuel and maintenance costs and producing emission levels some 20% less than from a conventional ship of this
type and size. In other words, we shall have first-class performance in both its operation and its environmental
impact. We are very pleased to be getting a tug that reflects the future needs of the industry," says Henrik
Vuorinen, Managing Director, Port of Luleå.
"This new vessel will represent the state-of-the-art for modern tugs. The highly advanced technology
enhances the overall performance in terms of operations, economics, and environmental impact," says Daniel
Scavuzzo, Gondan Shipbuilders Commercial Manager.
Since the Gulf of Bothnia is typically frozen over in winter, the 36m long tug will be capable of icebreaking
operations and able to handle one metre thick ice at a speed of up to 3 knots. The Wärtsilä HY is designed to
cope with these harsh conditions.
The Wärtsilä HY scope includes an energy management system that optimises the combined use of the
engines, the energy storage systems, and the power distribution train. The mechanical machinery part is based
on two Wärtsilä 26 engines. The Wärtsilä scope also includes the tug's integrated automation and alarm
system. The equipment is scheduled to be delivered to the yard during summer 2018.
BATTERY SYSTEM FOR SUBSEA VESSEL
Wärtsilä has agreed to retrofit the world’s first energy storage solution on board a large offshore supply vessel.
The North Sea Giant, one of the world’s largest and most advanced subsea construction vessels, will be fitted
with an energy storage system that reduces the vessel’s energy consumption, operating costs and exhaust
The retrofit energy storage system improves the operational efficiency and environmental footprint of the
North Sea Giant, responding to key requirements of Norwegian North Sea Shipping AS, the owner of the vessel.
The solution provides power redundancy and increases responsiveness of vessel operations.
Typically, a vessel with dynamic positioning uses two or more engines simultaneously to secure back-up
power. This means that the engines’ load run low. By using a hybrid/battery system to provide the needed
back-up power, the operational engine can be used closer to its optimal load. In addition to the hybrid/battery
solution, the agreement includes transformers, filters, switchboard, shore connection equipment, upgrades of
existing components and commissioning.
“For us is it important to reduce environmental emissions and modernise the vessel to make it more
competitive. In addition, with a more efficient vessel, we will save fuel expenses. The estimated reduction in
emissions is 5.5 million kg CO2, 30 tons of NOx and 1,200 kg SOx per year. After Wärtsilä had retrofitted our
ship Atlantic Guardian in 2014, we really understood how much fuel can be saved by improving the vessel’s
efficiency. Efficiency also saves time, because you only need to refuel every second or third port visit,” says CEO
Hallvard Klepsvik, North Sea Shipping AS.
The North Sea Giant is a DP3 vessel. The ship is listed in the most advanced category of vessels that apply
dynamic positioning. Installation of an energy storage solution into a class DP3 vessel has never been carried
out before and requires a redefinition of applicable classification rules. Therefore, Wärtsilä and North Sea
Shipping AS are working in close collaboration with the DNV-GL classification society.
North Sea Shipping AS owns, operates and provides management services for advanced offshore supply
vessels. Based in Austevoll on the west coast of Norway, the company has extensive experience in offshore
“Wärtsilä has gained a high competence on hybrid projects on many different vessel types, and has a close
relationship with the customers. For this reason, we can test new technology on many different types of vessels.
We are the first in the world to work with hybrid systems on bigger vessels such as the DP3 classified North Sea
Giant, and the project will set a new standard for this type of vessels,” says Cato Esperø, Director Sales Norway,
ABB UPGRADES CCG FLEET
ABB has successfully concluded the first
modernisation on a Canadian Coast Guard (CCG)
icebreaker, installing the latest hardware and
software onboard the 38-year-old CCGS Pierre
Radisson as part of the complete upgrade to the
ship’s propulsion power distribution system that
entailed the installation of twelve new DC-Drives
and complete Propulsion Control System.
The contract includes the option to amend the
modernisations of two other ships in the CCG
fleet, CCGS Des Groseilliers and CCGS Amundsen, both
of which have clocked up more than 30 years of
Ultimately the project also kicked off a fleet life
extension program that will see ABB upgrading 10
of the CCG’s 13 High Endurance Multi-Tasked Vessels as
well as Heavy and Medium Icebreakers, which conduct
major search and rescue operations and play a vital role
in keeping the shipping lanes of northern Canada ice
The upgrades will take place in succession between
now and 2020 while the vessels are afloat and docked at
their homeports, in partnership with a domestic
specialist in electrical systems integration.
Nathalie Pilon, President ABB in Canada, said: “We
are delighted the Government of Canada selected ABB
to support the Canadian Coast Guard in a project of this
magnitude and importance for the nation’s maritime
infrastructure and we look forward to building upon
and continuing a longstanding cooperative relationship
that will safeguard the fleet for many years to come.
Investment in the icebreaking segment has grown in
recent times. Reflecting its long history of working with
icebreakers, ABB stands at the forefront of this regeneration.”
Modernisation of CCGS Pierre Radisson was needed because the original power system, installed 38 years
ago, was approaching end of life. While the upgrade will see the vessel retain its existing control arrangement
of six AC alternators with rectifiers to supply direct current to the motors through upgraded breakers and
contactors, the installation of the new ABB Drives will improve availability and extend endurance, allowing the
ship to spend more time at sea.
Specifically, ABB fitted twin AC/DC Diesel-Electric propulsion systems for greater redundancy, with each
featuring a DC electric motor connected directly to the vessel’s propeller. ABB also took the opportunity to
attach digital sensors to a variety of onboard equipment to provide its shore-based expert engineers with a
virtual presence on board the ship to help diagnose problems at any time. ABB’s Remote Diagnostic Service
will significantly improve maintainability and contribute to reduced vessel down time.
Juha Koskela, Managing Director of ABB’s Marine and Ports business unit, said: “When CCGS Pierre
Radisson was constructed in the late 1970s, ship to shore connectivity was mostly limited to radio. The
Internet as we know it today simply did not exist. Today ships are digitally tethered to shore by satellite, which
enables greater shore-side involvement and flexibility in vessel operations. The pivot to digital promises
innumerable opportunities for the CCG’s icebreakers to operate safely and perform their missions more
“We are proud to be working closely with the Canadian Coast Guard to help them maintain safe and reliable
vessel operations for years to come. CCG vessels operate in harsh environments carrying out a variety of
important missions year-round. By delivering improved vessel endurance together with round-the-clock
Remote Diagnostic Service, we can support them in fulfilling those duties.”
BAKKER SLIEDRECHT SCOPE FOR NEW SIGMA 10514 LONG-RANGE PATROL VESSEL
Bakker Sliedrecht has received the order from Damen Schelde Naval Shipbuilding (Damen) to deliver the
electrical auxiliary propulsion system for a SIGMA 10514 long-range patrol vessel.
Key components of the electrical auxiliary propulsion
system are two 1325 kW electric propulsion motors
from Indar and two water-cooled variable-frequency
drives with active front ends. Both frequency drives will
be cooled by one water-cool unit to save weight, space
Each frequency drive will be connected to the vessel’s
power grid, without the use of a transformer, to save
weight and space. Without certain measures, this direct
(conductive) coupling can cause unwanted effects on
sensitive operational equipment connected to the grid.
Bakker Sliedrecht created smart filter techniques to
mitigate the disturbance levels in order to comply with
the IEC- and Navy regulations. A selective earth fault
detection is also included in this design. This
evolutionary design has already been installed successfully by Bakker Sliedrecht on frigates for the Indonesian
The new order is a result of the successful cooperation between Damen and Bakker Sliedrecht during the
build of the guided missile frigates for the Indonesian navy. The long-range patrol vessel is scheduled for
delivery in early 2020.
RESEARCH VESSEL MODERNISED WITH SCHOTTEL PUMP JET
The 28-year-old Aranda, the first Finnish vessel to be modernised with a
diesel-electric hybrid propulsion system, will be fitted out with a
Schottel Pump Jet.
While the conventional shafting is being retained, an electrically
powered Schottel Pump Jet (SPJ) of type SPJ 132 RD will be installed as
a new auxiliary propulsion unit. It features an input power of 400 kW, is
installed flush with the bottom of the research vessel and provides
maximum thrust over the full 360° range, with no resistance, even in
After a very short project planning phase, the customer requested
delivery of the equipment in three monthly partial shipments of well,
steering system and propulsion unit. As the last item, the Pump Jet has
now been shipped to the Finnish shipyard Rauma Marine Constructions.
The Aranda is owned by the Finnish Environmental Institute and is
intended for year-round research and surveying missions. Besides the
propulsion assistance provided by the auxiliary drive, the SPJ is also
used for dynamic positioning with an accuracy of half a meter.
The resilient mounting means that the steel and cast-iron structure
of the Pump Jet is completely isolated from the vessel’s hull, thus
eliminating high-frequency excitations. In addition to extremely quiet
operation, this property is a prerequisite for undisturbed seismic measurements, which will be one of the many
tasks of the research vessel.
The 59.2 m long and 13.8 m wide ice-going research vessel will also be fitted with a 3MW shaft generator.
ONE THIRD OF SHIPS TO CHOOSE SCRUBBERS
According to naval architecture and engineering consultancy Foreship, shipowners weighing up their future
marine fuel choices after the 2020 IMO 0.5% sulphur cap should also consider oil company expectations that up
to 30% of commercial shipping will gravitate back to high sulphur fuel oil by 2030.
With just over 100 ships running on LNG today, the number in service is likely to be significantly below 500
by 2020. At the same time, while the 0.1% fuel sulphur content limit inside emissions control areas has brought
1,500 scrubber installations, yard capacity could only
grow that number to 3,000-4,000 by 2020. Most ships
will run on 0.5% sulphur content HFO to meet the cap.
Foreship Head of Machinery Department, Olli
Somerkallio explains that, post 2020, 0.5% sulphur
content fuel will be blended from distillates and HFO of
up to 2.5% sulphur content. Higher sulphur HFO
(HSHFO) can be used as a marine fuel where scrubbers
are installed, but could also be a substitute fuel in gas
powerplants in former Soviet countries, or a coal
substitute. This will change the pricing dynamic of
HSHFO: to compete with coal, prices would have to be
The implication is that HSHFO will return to favour as
a marine fuel after the dust settles. “This will have a
significant impact on the ROI of scrubbers in the future,”
Foreship has significant experience in offering
independent advice on adapting ships for new marine
fuels and emissions abatement. Its reference list includes
34 exhaust gas scrubber retrofit projects to enable 13 cruise ships, 11ro-pax ferries, nine ro-ros and one
containership to burn HFO in ECAs. In this case, work includes conceptual design, technology and supplier
evaluation, installation feasibility, the classification and basic design work needed for system integration, plus
mechanical, piping, electrical systems and automation. Foreship also covers engineering and structural design
for equipment foundations and new tanks, as well as safety plans and stability updates, supervising detail
design and installation during systems integration.
Foreship has advised customers to select multi-stream or in-line scrubbers, open loop, closed loop or hybrid
systems. The high opportunity cost of losing sailing time in the cruise market has seen work planned
underway, as well as for ro-ro ship projects work carried out in dock.
“We have faced and overcome a broad range of installation challenges, including the fact that scrubbers eat
into the revenue-earning space required for passengers or freight,” says Somerkallio. “We are also very
familiar with the equipment options in the market and supplier references.” As well as needing new pumping,
water treatment and tank storage equipment, exhaust gas scrubbers demand considerable new pipework on
board. Installing inline means that existing silencers need to be replaced with larger equipment, causing a
space challenge for casing.
“Gaining this experience provides a wealth of independent experience that owners of cargo ships can draw
on as the 2020 global sulphur cap approaches,” says Somerkallio. “The track record is also long enough to
understand that ships within the same project do not always benefit from the same equipment selection.”
JHT DELIVERS 200TH MHI-MME BOILER
Jiujiang Haitian Equipment Manufacture (JHT), a licensee of Mitsubishi Heavy Industries Marine Machinery &
Equipment has delivered its 200th MHI-MME Marine Auxiliary Boiler
JHT, the state-owned marine equipment manufacturer owned by the China State Shipbuilding Corporation
(CSSC) mainly received orders from shipyards under the CSSC umbrella. Other shipyards outside the CSSC
group, however, have also placed orders. Their delivery record includes boilers not only for Chinese
newbuildings but also vessels for European shipowners.
The license agreement covers Auxiliary boiler which evaporation amount is up to 55 ton per hour, Exhaust
Gas Economizer, Exhaust Gas Boiler, etc., and MHI-MME proceeds with further development and expansion of
product line-ups to meet the market demand.
MHI-MME, in the wake of the achievement of the 200 units order record, will accelerate business development
in Chinese market further.
BLENDING-ON-BOARD SYSTEM LAUNCHED TO GREEK AND CYPRIOT MARKETS
Piraeus-based Technava have commenced with the promotion of the
Maersk Fluid Technology’s (MFT) SEA-Mate Blending-on-Board (BOB)
system as the official sales agent for the technology in Greece and
Originally developed by Maersk for use on A.P Moller-Maersk Group's
fleet of containerships, MFT’s BOB technology allows for the blending of
the in-use system oil, as a base oil, with a high-BN cylinder oil product to
produce a Fit-for-Purpose cylinder lubricant and facilitate the addition of
fresh system oil to the engine sump. With BOB units on board, ship
operators can blend cylinder lubricant compositions that match actual
engine operating conditions and fuel sulphur levels. The use of this
technology can reduce cylinder oil consumption and alleviate issues such as
cold corrosion and excessive cylinder wear. It can also mitigate issues
associated with worn system oil causing problems for the hydraulic control
system in modern, electronic two-stroke engines.
The SEA-Mate BOB system has obtained letters of no objection from MAN
Diesel & Turbo and Winterthur Gas & Diesel (WinGD) engines and is suitable
for use on all types of two-stroke engines.
Founded in 1968, Technava is a supplier of marine equipment and
provider of technical support to the Greek and Cyprus shipping industry.
Today, Technava is one of the leading companies in the supply, installation
and service of equipment on board all types of ships. The company also acts
as the representative for leading developer of two-stroke low-speed gas
and diesel engines WinGD in Greece and Cyprus. The fact that WinGD is
also working cooperatively with MFT, makes the establishment of Technava as the official sales agent for the
SEA-Mate BOB system in Greece and Cyprus well positioned.
“Maersk Fluid Technology is honoured to be working with Technava for the sales of our SEA-Mate BOB
system in Greece and Cyprus. Our Blending-on-Board technology can support Greek and Cypriot ship owners
with both changing engine operating conditions and fuel sulphur levels. Therefore, we believe that introducing
our Blending-on-Board technology jointly with Technava, will bring great technical and financial value to the
Greek and Cypriot marine industry,” says Jens Byrgesen, Managing Director at Maersk Fluid Technology.
Andreas Angelidis, Projects' Engineer at Technava comments: “As a highly reputed supplier of marine
equipment we welcome the opportunity to act as the sales agent for MFT in Greece and Cyprus. We represent
first class manufacturers with strong brand names and highly reliable product, so we are proud to welcome the
MFT SEA-Mate BOB system into our portfolio of products.”
GTT TO DESIGN THE LNG TANKS FOR NEW CARRIER
GTT received at the end of 2017 an order from a South Korean shipyard regarding the design of the LNG tanks
of a new LNG carrier scheduled for the first quarter of 2020.
GTT will design the LNG tanks of the unit, allowing for a capacity of 174,000m3. The insulation solution
Mark III Flex has been chosen for its ability to reduce the daily guaranteed Boil-Off gas rate to 0.085% of tank
volume. 48 vessels in service already benefit from this technology.
The shipowner and shipyard's names have not been disclosed at this stage.
BALLAST WATER TREATMENT IN EIGHT EUROPEAN PORTS
Shipowners are now able to treat
their unmanaged ballast water
or load cleaned ballast water in
eight different Northern
European ports using Damen’s
unique IMO certified InvaSave
ballast water management
system. In a cooperation
between Damen Green Solutions
and Damen Shiprepair &
Conversion (DSC), this ballast
service will be available in
Rotterdam, Amsterdam, Brest,
Dunkerque, Vlissingen, Den
Helder, Stellendam and
Damen’s InvaSave is the first
external ballast water treatment
unit designed primarily to offer
shipowners a port-based ballast water solution. With this cooperation, vessels coming into these eight ports
will be able to take advantage of a one-stop-shop for their ballast water treatment requirements.
“Our goal is to build up a reliable worldwide ballast water service network,” says Philip Rabe from Damen
Green Solutions. “Since the IMO Ballast Water Management Convention was enforced on 8th September 2017,
some owners are already facing delays in ports due to unmanaged ballast water. For example, unmanned
barges do not have the capabilities to perform mandatory ballast water exchanges; the D1 Standard.
“With our ballast water bunkering service we can both accept used ballast water for disposal, as well as fill
up ballast water tanks with certified clean water at the port of departure. As a result, this eliminates the need
for ballast water exchange.”
This service will offer benefits to many more clients, Rabe continues: “Vessels that use an on-board
treatment systems and saltwater to make free chlorine will not always be able to function in freshwater ports
such as Amsterdam. These vessels would need to load hundreds of tonnes of seawater to operate their onboard
systems – and as a consequence, will lose precious cargo capacity.
“Using the InvaSave ballast water treatment service in the port, vessels can load clean, D2 standard, ballast
water at the quay without the need to operate their own on-board treatment systems.”
Damen Green Solutions is in talks with several other ports and harbour service providers around the world
to offer the InvaSave service.
RAPID TURNROUND FOR AHC ORDER
Scantrol recently mobilized an Active Heave Compensation
(AHC) Upgrade system in less than 4 hours for
Aberdeenshire based solutions provider Aleron Subsea.
“We were able to ship off a complete AHC system in only
3 hours and 26 minutes due to a highly standardized
control system and good communication with the
customer. The system was already configured before
shipment. In today’s subsea market we need to be able to
turn around quickly when a customer needs an AHC system
to get the job done. Upgrading an existing system is a costefficient
and time-saving solution when working on a tight
time-line,” explains Rolf Krogh Hjelmeland, Business
Development Manager for Scantrol AHC.
Aleron Subsea was appointed by James Fisher Marine
and Britannia’s Gold Ltd (BGL) to utilise the AUXROV
system to assist a highly profiled Salvage operation
targeting wrecks that sank during World Wars 1 and 2. This
is the first of a series planned operations by BGL.
Working with a tight timeline to mobilize the equipment
Aleron Subsea contacted Scantrol.
The order was received on Monday lunchtime. The
Scantrol team quickly turned around to meet the tight
timeline of one day delivery time. Martin Nybø, Service
Engineer at Scantrol, and his colleague, Johannes
Sletteskog, managed to get the system assembled and
tested before the end of the day and shipped off to
Aberdeen on the same night. When Martin arrived the test
site Tuesday morning together with the control system, the
winch had only just been rotated by means of a hydraulic
lever. Scantrol took advice from their associate UK
Company, Dynamic Integrating Ltd, who vetted the
hydraulic system for AHC compatibility. This reassurance
took no time at all and Scantol were able to give Aleron a
quick and confident solution.
“By Tuesday evening we had the whole control system
up and running, and were able to control the winch from it.
Wednesday at lunchtime the system was fully
commissioned and we were running dynatests showing
promising compensation levels. In less than two days we
had successfully integrated the control system with the
winch and had it ready for shipping. This was achieved due
to our standardized AHC solutions for different applications
and to a dedicated and efficient team of engineers working
on this project,” explains Martin.
KONGSBERG INTRODUCES ITS LATEST ECHO
Kongsberg has released the EM 304, the third generation of
its de facto industry standard 30 kHz Multibeam Echo
Sounder System. The technology is used for high resolution
seabed mapping from depths of 10m to beyond the
continental rises – deeper than 8000m.
Developed as a low noise echo sounder with state-ofthe-art
electronics, the EM 304 delivers superior data that
requires minimal post-processing.
In addition to offering increased range and resolution
performance, the EM 304 introduces a broad range of
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functionality and cutting-edge new features that serve as a significant upgrade to the current generation EM
As part of a new technology platform designed for future challenges, the EM 304 is compatible with a new
Kongsberg-developed datagram format, which supports several new features, such as extended backscatter
calibration, with more features already in development. The new format is supported by Kognifai, Kongsberg’s
open digital ecosystem which brings opportunities to transform survey operations through digitalisation.
“The EM 304 provides state-of-the-art survey vessel operators with the highest performance, most accurate
mapping capability. The system replaces the EM 302 which has been the de facto industry standard since it was
launched in 2006,” says Helge Uhlen, Director Sales Subsea. “The unparalleled performance of the EM 302 has
resulted in a record number of medium-to-deep water systems being delivered for operations around the
world, so we are pleased to introduce the next generation of our leading technology, which offers even more
functionality and higher performance.”
Considering the extensive EM 302 global user-base, KONGSBERG has developed the EM 304 to utilise the
same transducers as its current generation system. This simplifies upgrading from the EM 302 to the new EM
304 platform. Installation is optimised thanks to a highly, modular and flexible system with compact
electronics. The EM 304 also accommodates easier installation through the use of a sub-bottom profiler. The
KONGSBERG SBP 300 can be fully integrated, by sharing the same receiver transducer as the EM 304.
The EM 304 is a highly scalable mapping system that takes advantage of features and benefits achieved in
the development of the EM 2040 family and the EM 712. It joins Kongsberg Maritime’s unmatched range of
leading Multibeam Echo Sounder Systems, from very shallow water to full ocean depth, all with proven
superior performance and reliability.
For operations in artic waters, the system can be delivered with ice windows for protection of the
transducers, enabling light ice-class vessels to heavy ice breakers operating in the toughest ice conditions to
enjoy the benefits of our new solution. And like all Kongsberg EM multibeam echo sounders, the EM 304
ensures the best operating environment to safeguard marine life inhabiting the survey area, through decreased
emitted sound levels.
WARTSILA ACQUIES TRIDENT
Wärtsilä has strengthened its service offering by acquiring Trident BV, a Netherlands-based company
specialising in underwater ship maintenance, inspection, and repair services. Through the acquisition Wärtsilä
becomes the first global operator in the underwater services market. The acquisition is estimated to be closed
in January 2018.
Wärtsilä has a long history in providing underwater services through partners. With this acquisition, the
company builds in-house competence, captures the full potential of services' product synergies, and
strengthens its position in the market.
As a result, the acquisition enables the integration of Trident's services with Eniram's analytics. Wärtsilä
expands its 'vessel-as-a-service' value offering to achieve maximum fuel savings by optimising hull cleaning
cycles. Eniram is a Wärtsilä company focusing on providing the maritime industry with energy management
technology to reduce fuel consumption and emissions.
The enterprise value of the transaction is €17.5 million and an additional €3.5 million earn-out, based on
the business performance in the coming years. The turnover of Trident is approximately €9 million.
Trident Group, established in 1993, is a
leading innovative underwater service
supplier specialising in repair, overhaul,
and maintenance of propulsion systems,
hull, and machinery. With fully equipped
workshops and certified personnel in the
Netherlands, Italy, and Canary Islands, the
company serves customers around the
"This acquisition supports Wärtsilä's
strategy on several fronts, starting from
Wärtsilä's purpose to enable sustainable
societies with smart technologies.
Reduced fuel consumption, efficiency
improvements, and higher utilisation
rates are always on the top of the
operators' agenda," says Tamara de
Gruyter, Vice President, Area North
Europe and Propulsion System Services,
Wärtsilä Services. "At the same time,
environmental issues are becoming an integral part of customers' business planning. Trident is a pioneer in the
development of environmentally sound solutions, for example, hull cleaning," de Gruyter continues.
"We are very excited to join Wärtsilä," says Managing Director Adrie Huijbregts, Trident BV. "We have
identified several synergies between the companies, such as the ability to develop more specific products due to
increased knowledge, and thus provide an even more enhanced offering to our customers," he continues.
Trident and Wärtsilä have previously co-operated in research and development. One result of this cooperation
has been the jointly developed Wärtsilä-Trident Thruster preservation bag.
ARANDA MARINE RESEARCH VESSEL UPGRADE
Valmet will upgrade the Aranda marine research vessel's control and machinery monitoring system to meet
current needs as part of a renovation project for the vessel.
Valmet's delivery includes the upgrade of the Valmet DNA control and machinery monitoring system, training
and commissioning. The system is used to control and monitor the vessel's machinery and monitor alarms.
The order was placed by Telesilta Oy, a Finnish company responsible for integrating electrification and the
machinery monitoring system with other systems on the vessel.
"As renovation projects are often technically very challenging, we wanted to have a product that we know
well for our system. Successful cooperation with Valmet and its earlier experience with the original system on
the vessel were two main reasons in favor of choosing Valmet DNA," says Kari Laulajainen, Managing Director,
"Upgrading the control and machinery monitoring system increases the reliability of this advanced vessel. One
of Valmet DNA system advantages is its easy upgradability to the latest technology," says Heikki Tanner, Sales
Manager, Automation, Valmet.
Owned by the Finnish Environment Institute (SYKE), the 30-year-old Aranda is an ice-reinforced research
vessel. She was planned and built for
Baltic Sea research but is able to operate
on all seas. During construction, Aranda
was equipped with a Valmet Classic
machinery monitoring system that was
upgraded to the Valmet Damatic XD
system in 2006.
Vessel renovation began by Rauma
Marine Constructions at its Rauma
shipyard in late July 2017 and will be
finished in the spring. As part of the
renovation project, Aranda's length will be
extended by seven meters to 66 meters,
and research and laboratory facilities will
also be built.
ECOSPEED CHOSEN FOR SCRUBBER OUTLETS
Subsea Industries’ glass-flake, non-toxic hard coating Ecospeed has been chosen to protect the exhaust
scrubber outlets of three newbuild container vessels building at a yard in Zhoushan, China.
A durable coating was required, with the ability to withstand the very high exhaust gas temperatures and
the chemical pollutants encountered in this application. Scrubbers are intended to filter out oxides of sulphur
and harmful hydrocarbons, soot, particulates, heavy metals and ashes to prevent pollution of the atmosphere.
Some scrubbers, such as those fitted to these vessels, can also reduce the amount of nitrogen oxides and carbon
However, according to Subsea Industries, some shipowners have experienced damaged pipework at the
outlet end of the scrubber system due to the highly corrosive wash waters produced during the exhaust gas
Manuel Hof, Production Executive of Subsea Industries, said: “There have been some instances where
unprotected pipework has completely corroded after just three years of scrubber operation. Shipowners and
shipbuilders looking to install exhaust gas scrubbers must not overlook protecting internal pipework with an
“Ecospeed is highly suitable as a protective coating for scrubber outlets and interior surfaces because it is
highly resistant to chemicals and will last the lifetime of the ship. The nature of the process taking place inside
the scrubber requires a coating with special qualities, which Ecospeed can deliver.
“Its proven durability means that no recoating will be required, cutting down on out-of-service time and
thus saving the owner money in the long run. It is also highly resistant against a wide range of chemical
products, which is one of the main reasons why Ecospeed is being increasingly selected for this kind of
Ecospeed’s durability has been proven by the fact that classification society DNV GL awarded it the highest
B1 classification following tests of its suitability as a ballast tank coating. B1 is the superior grade in a six-grade
Independent research has shown Ecospeed to be 100% toxin-free, with no adverse environmental effects
resulting from its use or application, unlike other coatings which can contain biocides, copper or tin
Shipping is coming under increasingly tight environmental legislation. The need to reduce sulphur emissions
requires ships to either use expensive low-sulphur fuel oils, or fit exhaust gas scrubbers to remove sulphur and
other harmful compounds from the exhaust gases before they are vented to the atmosphere. Scrubbers allow
ships to continue to use the lower-cost heavy fuel oils, even in tightly-regulated coastal areas, so they are
increasingly being installed onboard vessels. To maintain the scrubbers at optimum efficiency, they need a
durable, inert coating to prevent corrosion.
“Ecospeed fits in seamlessly with the environmental idea behind these systems,” said Hof.
Subsea Industries is based in Antwerp, Belgium, and was founded in 1983 to develop a range of hard marine
coating systems suitable for ship hulls as well as demanding applications such as interiors. All products have
the common goal of clean rivers, seas and oceans, protecting and preserving the marine environment for future
NEWBUILDS & DELIVERIES
DAMEN AND CONCORDIA
Damen Shipyards Group and
Concordia Group have signed a joint
venture agreement with the purpose
of cooperating in the construction
and trade of inland waterway
vessels. The joint venture will
operate under the name Concordia
“Damen and Concordia are
joining forces in order to better
support clients in their investments.
Concordia Damen Shipbuilding will,
beside catering to the general
demand, focus on the development
of sustainable vessels with a
diversity of new shipbuilding
techniques, in order to achieve a
bright and clean future for shipowners.
We are very pleased to
partner with Damen to expand our
activities in the inland waterways
market. We look forward to working
together with Damen and its
international network of shipyards
and sales,” says Chris Kornet, CEO of
Concordia has been active in the
Dutch inland waterways business
since 2001 and also internationally
over the past 10 years. The
corporate identity of Concordia will
remain within the new joint venture.
The joint venture will increase
This year, Damen is celebrating
its 90th birthday. The company has
been active in almost all sectors of
the maritime industry since the
beginning of the 20th century.
Damen operates a global network of
shipyards as well as an international
SAVE MILLIONS IN DRYDOCK
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Over that time period, the coating
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no longer worth trying to patch it up.
And it costs you a fortune in fuel to
compensate for the additional hull
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sales and service network. The Inland Waterways team, led by Product Director Inland Waterway Transport
Simon Provoost, will move from the Damen headquarters in Gorinchem, to the Concordia office in Werkendam,
“Both parties are very pleased with this partnership and look forwards towards a future with ambition and
mutual trust,” says Mr. Provoost, who will be appointed as Managing Director of Concordia Damen
ICEBREAKING CRUISE VESSEL FOR PONANT
Ponant has developed an innovative and environmentally friendly luxury cruise vessel in close cooperation
with Aker Arctic and Stirling Design International.
The Ponant Icebreaker intends to take passengers to never explored polar destinations, such as true
geographic North Pole, the Weddell Sea, the Ross Sea and Peter I Island. To ensure operation in these harsh and
ice infested areas, PONANT contracted Aker Arctic to take part in the design of the vessel. Prior to start of the
development, the different operational areas were evaluated to set up the design basis for the operation and
vessel technical requirements. Aker Arctic has utilized its long-term experience as an icebreaker designer in
developing this world’s first luxury icebreaker cruise vessel with PC 2 ice class.
“We are delighted to work with the world’s leading expedition operator PONANT and ship design company
Stirling Design International. The combined expertise of the companies involved in the project has resulted in
this pioneering cruise vessel for the polar regions” states CEO Reko-Antti Suojanen, Aker Arctic.
Ponant has confirmed the order with the Norwegian shipyard VARD which has previously also built
icebreaking vessels based on Aker Arctic design. “We are looking for a continued cooperation in the building
phase of the project” states Reko-Antti Suojanen.
CYBER PENETRATION TESTS UNDERSCORE NIGHTMARE
Naval Dome has demonstrated the maritime industry’s nightmare security scenario
with a series of cyber penetration tests on systems in common use aboard tankers,
containerships, superyachts and cruiseships. Test results revealed with startling
simplicity the ease with which hackers can access and over-ride ship critical
With the permission and under the supervision of system manufacturers and
owners, Naval Dome’s cyber engineering team hacked into live, in-operation
systems used to control a ships’ navigation, radar, engines, pumps and machinery.
While the test ships and their systems were not in any danger, Naval Dome was
able to shift the vessel’s reported position and mislead the radar display. Another
attack resulted in machinery being disabled, signals to fuel and ballast pumps being over-ridden and steering
gear controls manipulated.
Commenting on the first wave of penetration tests, on the ship’s Electronic Chart Display and Information
System (ECDIS), Asaf Shefi, Naval Dome's CTO, the former Head of the Israeli Naval C4I and Cyber Defense Unit,
said: "We succeed in penetrating the system simply by sending an email to the Captain's computer.
“We designed the attack to alter the vessel’s position at a critical point during an intended voyage - during
night-time passage through a narrow canal. During the attack, the system's display looked normal, but it was
deceiving the Officer of the Watch. The actual situation was completely different to the one on screen. If the
vessel had been operational, it would have almost certainly run aground.”
According to Shefi, the Naval Dome hack was able to alter draught/water depth details in line with the
spurious position data displayed on screen.
“The vessel's crucial parameters - position, heading, depth and speed - were manipulated in a way that the
navigation picture made sense and did not arouse suspicion,” he said. "This type of attack can easily penetrate
the antivirus and firewalls typically used in the maritime sector.”
Commenting on the ease with which Naval Dome was able to by-pass existing cyber security measures, Shefi
explained: "The Captain's computer is regularly connected to the internet through a satellite link, which is used
for chart updates and for general logistic updates. Our attacking file was transferred to the ECDIS in the first
chart update. The penetration route was not too complicated: the attacking file identified the Disk-On-Key use
for update and installed itself. So once the officer had updated the ECDIS, our attack file immediately installed
itself on to the system.”
In a second attack, the test ship’s radar was hit. While the radar is widely considered an impregnable,
standalone system, Naval Dome's team used the local Ethernet Switch Interface - which connects the radar to
the ECDIS, Bridge Alert System and Voyage Data Recorder – to hack the system.
“The impact of this controlled attack was quite frightening,” said Shefi. "We succeeded in eliminating radar
targets, simply deleting them from the screen. At the same time, the system display showed that the radar was
working perfectly, including detection thresholds, which were presented on the radar as perfectly normal.”
A third controlled attack was performed on the Machinery Control System (MCS). In this case, Naval Dome's
team chose to penetrate the system using an infected USB stick placed in an inlet/socket.
"Once we connected to the vessel's MCS, the virus file ran itself and started to change the functionality of
auxiliary systems. The first target was the ballast system and the effects were startling. The display was
presented as perfectly normal, while the valves and pumps were disrupted and stopped working. We could
have misled all the auxiliary systems controlled by the MCS, including air-conditioning, generators, fuel systems
Itai Sela, CEO of Israel-headquartered Naval Dome, furthered that the virus infecting ship systems can also
be unwittingly transferred by the system manufacturer.
“As manufacturers themselves can be targeted, when they take control of onboard computers to carry out
diagnostics or perform software upgrades, they can inadvertently open the gate to a cyber attack and infect
other PC-based systems onboard the ship. Our solution can prevent this from happening.”
PEN TEST PARTNERS ESPOUSE SHODAN’S CYBER SECURITY GAME CHANGER
Following their recent blog which highlighted vessel satcom box vulnerabilities using Shodan, a search engine
which finds devices connected to the internet, Pen Test Partners has again warned ship owners and operators
to ensure their satcom boxes are secure.
In the updated blog, senior partner Ken Munro explains how he was able to use a new real time ship-mapping
feature on Shodan to geo-locate vulnerable vessels through their satcom boxes.
By combining this with AIS data, a hacker has everything they need to select a suitable ship to attack. They can
choose a vessel en route to a nearby port, ready for load theft. Or perhaps cripple a ship in a particular area,
ready for piracy.
“Although it was possible before to find a specific vessel’s location, it required a lot of work to analyse and
present it on a map. The new mapping feature makes it trivially easy for hackers and criminals alike,” said Mr
He went on to urge ship owners and operators to secure their satcom boxes by changing default passwords and
applying all updates received from their satellite communication providers immediately.
ROLLS-ROYCE AND MITSUI O.S.K. LINES TO DEVELOP SHIP INTELLIGENT AWARENESS
Rolls-Royce has signed a deal with
Japanese multi-modal transport
company Mitsui O.S.K. Lines (MOL), to
collaborate in the development of its
intelligent awareness system.
The collaboration will be on board
165 metre passenger
ferry SUNFLOWER, which is owned
and operated by Mitsui O.S.K. Lines’
Ferry SUNFLOWER operates on a 222-
nautical mile route between Kobe and
Oita via the Akashi Kaikyo, Bisan Seto
and Kurushima Straits.
Rolls-Royce Intelligent awareness
systems will make vessels safer, easier
and more efficient to operate by
providing crew with an enhanced understanding of their vessel’s surroundings. This will be achieved by fusing
data from a range of sensors with information from existing ship systems; such as Automatic Identification
System (AIS) and radar. Data from other sources, including global databases, will also have a role.
Kenta Arai, Director at Mitsui O.S.K. Lines, said: “Ferry SUNFLOWER operates in some of the most congested
waters in the world and will provide an opportunity to test rigorously Rolls-Royce’s intelligent awareness
system. We also expect it to provide our crews with a more informed view of a vessel’s surroundings in an
accessible and user-friendly way. This can give our crews an enhanced decision support tool, increasing their
safety and that of our vessels. This is a significant challenge to front-line technology leading to our ultimate goal
of autonomous sailing.”
Asbjørn Skaro, Rolls-Royce, Director Digital & Systems – Marine, said: “We are exploring and testing how to
combine sensor technologies effectively and affordably. Pilot projects such as this allow us to see how they can
be best adapted to the needs of the customer and their crews so that our product effectively meets the needs of
“Successful pilots and product development programmes are also an important step towards the further
development of remote and autonomous vessels and meeting our goal of having a remote controlled ship in
commercial use by the end of the decade.”
Rolls-Royce expects to be able to undertake an Approval of Concept and have its intelligent awareness
product commercially available in 2018.
The system builds on experiences from R&D work worldwide. The intelligent awareness system will benefit
from Rolls-Royce’s extensive experience in the Tekes funded project Advanced Autonomous Waterborne
Applications Initiative (AAWA), which has been running since June 2015. The company has been conducting a
series of tests of the sensor arrays in a range of operating and climatic conditions on board Finferries’ 65 metre
double ended ferry Stella, which operates between Korpo and Houtskär in the Archipelago Sea on the southwest
coast of Finland.
NAVIGATION & ELECTRONICS
SIMPLIFIED LICENSING FOR C-MAP
C-MAP, the supplier of digital marine cartography and cloud-based mapping solutions, has announced the
availability of 'FixedFee', a new, simplified licensing concept. C-MAP FixedFee enables customers to access all
the Electronic Navigational Charts (ENC) they require, for an annual fixed amount.
FixedFee provides complete access to global ENCs for voyage planning and navigation, combined with easy
chart updating, one annual invoice and the ability to license whatever charts a customer might need for a 12-
“We want to give our customers freedom of choice,” said John Klippen, Head of Commercial Services, C-MAP.
“Modern navigation is complex and our aim at C-MAP is to make things easier. FixedFee offers customers a
simple and straightforward way to acquire and manage the charts they need for safe and efficient navigation.”
Available for AVCS and C-MAP ADMIRALTY ENC Service (CAES) - FixedFee offers the same flexibility as C-
MAP FlatFee service without being a PAYS based solution.
CLASSIFICATION & REGULATION
ABS TO CLASS LNG BARGE
ABS has been selected by Q-LNG, LLC to class an Articulated Tug Barge (ATB) for LNG bunkering in North
America. The vessel is scheduled to begin construction at VT Halter Marine in Pascagoula, Mississippi, in early
“This project represents another significant milestone for the region in the continued development of LNG
infrastructure in North America, helping the maritime industry meet stricter emissions requirements,” says
ABS Chairman, President and CEO, Christopher J. Wiernicki. “ABS is committed to working with all project
stakeholders to support safety both during construction and operations.”
“We chose ABS as our class partner for this project because of their extensive understanding of LNG as fuel
and LNG bunkering applications,” says Q-LNG Transport President Chad Verret. “This project will expand the
LNG supply chain and play a critical role in the advancement of LNG as a marine fuel throughout the region and
The LNG bunker barge, with 4,000m3 LNG capacity, will be owned and constructed by Q-LNG while the
operations will be handled by New Orleans-based Harvey Gulf International Marine. The barge will be
chartered by Shell, and will supply necessary LNG fuel to cruise vessels throughout the Southeast Coast of the
US. The barge will be designed to be efficient and manoeuvrable to allow LNG bunker delivery to a range of
ABS is also classing the LNG bunkering barge for North America that is currently being built at Conrad
Orange Shipyard and is scheduled for delivery in 2018.
RULES UPDATE FOR SHIP CONSTRUCTION
Classification society ClassNK has announced that it released amendments to its Rules and Guidance for the
Survey and Construction of Steel Ships on 25 December 2017.
ClassNK is constantly revising its Rules and Guidance in order to reflect the latest results from relevant
research and development projects, feedback from damage investigations, requests from industry as well as
changes made to relevant international conventions, IACS unified requirements (UR), national regulations, etc.
More specifically, some of the requirements amended this time are as follows:
Amendment related to the Incorporation of Material Factors for High Tensile Steel into Structural Strength
Requirements of Floating Docks (to incorporate research and development results)
Amendment related to the Intermittent Power Demand of Motors for Steering Gear Power Units Marking of
Safe Working Loads (in response to industry requests, etc.)
Amendment related to the Fuel Consumption Reporting (in response to changes in international
Amendment related to the Testing Procedures of Watertight Compartments (in response to changes in IACS
Unified Requirements, etc.)
The PDF files of ClassNK Rules and Guidance are available free of charge via ClassNK’s
website www.classnk.com for those who have registered for the ClassNK “My Page” service. To register for
the “My Page” service free of charge, go to ClassNK’s website and click on the “My Page Login” button.
KR TO CARRY OUT SURVEYS USING DRONES
The Korean Register (KR) is now
conducting inspection services using drones,
responding to the industry-wide trend to
use more unmanned technology.
The new service
follows extensive collaboration and research
conducted with the University of Gyeongnam
The drone inspection is expected to save
KR’s customers time and money and enhance
the safety of the classification society’s
workforce. The Inspection is conducted
onboard, in and around ships and many of
the inspected areas are high risk and difficult
to access safely. The inspections will be
carried out using drones (U.A.V. unmanned
aerial vehicle) and underwater drones
(R.O.V. remotely operated vehicle) and will
be an important part of the decision-making
and assessment process for KR’s surveyors,
complimenting their traditional surveying
After researching the possibilities and
technology available, KR successfully
completed a series of tests utilising cameraequipped
drones for ship inspections, and at
the same time established a registration
process for service suppliers, including the University of Gyeongnam Geochang. The two organisations now
plan to work together on future technological developments.
Lee Jeong-kie, Chairman and CEO of KR said: “We are delighted to announce that we can now offer full ship
inspection services with camera-equipped drones, employing the very latest technology. This development will
be a significant advantage for our customers’, saving their time and capital resources as well as increasing
efficiency and safety at the worksite, which I hope, will in turn improve competitiveness across the shipping
“This is just the latest development in KR’s continuous efforts to identify and develop new practical ways to
meet our clients’ needs, and to enhance their businesses prosperity”.
Moving forward, KR plans to provide services using a variety of different drones to expand its inspection
service areas. To offer high quality and more diverse services to more clients, KR will carry out further research
and development into the relevant technology, while vetting and registering more secure service suppliers
around the world, particularly in China and across Asia.
CONFIDENCE REMAINS AT HIGH LEVEL
Shipping confidence held steady at its highest rating in the past three-and-a-half years
in the three months to end-November 2017, according to the latest Shipping
Confidence Survey from international accountant and shipping adviser Moore
The average confidence level expressed by respondents was unchanged at
the level of 6.2 out of 10.0 recorded in the
previous survey in August 2017. Confidence
on the part of charterers was significantly up,
from 4.7 to 7.7, the highest rating recorded
for this category of respondent since the
survey was launched in May 2008 with an
overall rating of 6.8. Managers (up from 5.8
to 6.1) were also more optimistic, while
brokers’ confidence was unchanged at 6.3.
The rating for owners, however, fell from 6.5
to 6.4. Confidence levels were down in Asia,
from 6.4 to 5.7, and unchanged in Europe and
North America, at 6.3 and 5.8 respectively.
The likelihood of respondents making a major investment or significant development over the next 12
months was down from 5.4 to 5.3 out of 10.0. Charterers’ confidence, however, was up from 4.0 to 6.2.
Expectations on the part of owners and brokers were up from 5.8 to 5.9 and from 4.4 to 5.3 respectively, but
down from 5.4 to 5.3 for managers. Asian respondents (down from 5.9 to 5.0) were less confident in this
regard, but in North America the rating was up from 4.9 to 5.4. In Europe, expectations held steady at 5.2.
Although overall expectations of making major investments over the next 12 months were marginally down
on the three-year high recorded in the previous survey, several respondents saw encouraging signs of recovery,
and potential for further improvement, particularly in the dry bulk sector. One respondent said: “Undeniably,
things are a little better, but there is not such a significant improvement that we can break out the champagne
and celebrate a recovery.”
59% of respondents expected finance costs to increase over the coming year, up from 50% last time to equal
the highest figure since October 2008. Owners’ expectations were up from 48% to 54%, while the increase for
charterers was from 67% to 83%, and for brokers from 42% to 60%. Managers, meanwhile, recorded a fall
from 62% to 61%.
Despite a fall from 27% to 23%, demand trends continued to be the factor expected to influence
performance most significantly over the coming 12 months followed by competition and finance costs. One
respondent said: “Shipping continues to be volatile and unstable, with an oversupply of tonnage, and new
finance continuing to pour in, while geopolitical issues and new regulations are causing disruption.”
The number of respondents expecting higher freight rates over the next 12 months in the tanker market was
down by 1% on the previous survey to 44%, while there was a one percentage-point fall, to 13%, in those
anticipating lower rates. There was a six percentage-point fall, to 50%, in the numbers expecting higher rates in
the dry bulk sector, and a five percentage-point increase to 12% in the numbers anticipating lower rates. In the
container ship sector, the numbers expecting higher rates dropped by four percentage points to 36%, while
there was a two percentage-point fall, to 15%, in those anticipating lower container ship rates.
Net sentiment was positive in all the main tonnage categories. It was unchanged in the tanker market at +31,
but down in the dry bulk market from +49 to +38, and in
the container ship sector from +23 to +21.
Richard Greiner (pictured), Moore Stephens partner,
Shipping & Transport, says, “Confidence is at its highest
level for three-and-a-half years, testament to the industry’s
remarkable durability. Not all our respondents were
upbeat and uncertainty persists, for example, over how
and when to comply with the Ballast Water Management
Convention and the true extent of cyber-crime. A
slowdown in newbuilding activity has started to redress
the imbalance in supply and demand, and that should be
reflected in improved freight rates. There is an appetite for
investment, and finance is available.”
RENK ACQUIRES DAMEN SCHELDE GEARS
Marine gear manufacturer Renk has
acquired a 100% stake in Damen
Schelde Gears B.V.
The December 2017 acquisition of
the Netherlands-based company will
see the company rebranded as Schelde
Gears B.V. (SG).
The new Dutch facility is able to
draw on many years of experience in
gear design, calculations as well as
inspections and overhaul of marine
MACGREGOR ACQUIRES WINCH MANUFACTURER
MacGregor, part of Cargotec, has signed an agreement to acquire Rapp Marine Group (RMG) in order to
strengthen its offering for the fishery and research vessel segment. MacGregor's existing portfolio includes
already various deck handling equipment, such as cranes and booms, but with RMG, MacGregor is able to offer
complete solutions with advanced winches and related control systems. The enterprise value of the acquisition
was approximately €16 million.
"We are happy to join forces with MacGregor and be part of the company. The agreement will benefit the
niche customer base, which will be now offered a wider portfolio of safe and efficient equipment from one
provider to their specific vessels," says Terje Arnesen, CEO of RMG.
"I am happy to see that Rapp Marine Group, under our five years of ownership, has developed to become a
global leader in providing winches and related equipment to fishery and research vessels. Many of these
projects have been developed and delivered in close cooperation with MacGregor Triplex, and as such I am
convinced that the positive development in RMG will continue under Macgregor's new ownership," says Bjørn
Hesthamar, managing partner in Nord Kapitalforvaltning, the PE-company now selling RMG.
"MacGregor has a strategic interest in widening services for customers within fishery and research segment.
Products needed for these demanding vessel types have to be safe, robust and reliable with a good after sales
network," says Michel van Roozendaal, President, MacGregor. "This is exactly what our combined offering is
able to provide, be it fishery segment that operates in harsh conditions, or solutions needed for research
vessels to handle sophisticated tools and equipment".
"With MacGregor's Triplex deck handling portfolio we already today have a very strong position in the
fishery and research segment and with this investment as part of our growth strategy we are able to further
strengthen our position," states Høye Høyesen, Vice President, Advance Offshore Solutions, MacGregor.
The results of RMG business will be consolidated in MacGregor business area results once the transaction
has been completed which is expected during the first quarter of 2018.
RMG employs about 120 people with main locations in Norway, the USA and United Kingdom. The sales in
2017 is estimated to be approximately €40 million, of which approximately 30% is related to service. RMG's
profitability (EBIT-margin) is on the same level as MacGregor's current profitability.
LNG AS A MARINE FUEL: TIPPING POINTS, STEP CHANGES, BLIZZARDS, AND
By Stephen Cadden, COO, and Steve Esau, General Manager of SEA\LNG
As we begin a new year, this feels like a natural point for reflection on the year that’s passed, as well as some
projections for the 12 months ahead. One theme that pervaded every month of 2017 for the marine
industry was 2020 – the 0.5% global sulphur cap looms large and has been the source of much debate and
conjecture. Although it could be argued that there remain more unanswered questions than definite answers,
the momentum behind LNG as a viable, sustainable marine fuel is undeniable.
Despite an uncertain jigsaw when it comes to the future fuel matrix, prices, and availability, ship owners are
continuing to bet on LNG’s potential by ordering LNG-fuelled vessels. A survey conducted by German trade fair
organiser, Hamburg Messe and Congress revealed that 44% of respondents cited LNG as their first choice when
contemplating newbuild orders. And evidence shows that this is being acted upon.
Today there are 119 LNG-powered vessels in operation with a further 1251 on order. The passenger and
cruise segment can be commended for leading the charge and stimulating the demand for LNG bunkers. A
headline from Interferry 2017 – “From Ferry-tale to Reality” – captures this sentiment well! This trend
continues with Carnival’s seven newbuilds on order, plus newbuildings planned by Royal Caribbean and P&O
Cruises, to give just a few examples.
But importantly, this confidence in the future of LNG as a marine fuel is now permeating other segments of
the industry too, to cite a few examples; Teekay Offshore Partners has options for two Suezmax-sized, DP2
shuttle tankers, Van der Kamp has a dredger on order, and the OOS Zinlandia – the world’s largest semisubmersible
crane vessel – will also be LNG-fuelled. In the US, TOTE Maritime (TOTE), Matson, and Pasha
Hawaii, have all announced LNG-fuelled newbuilds. And TOTE announced its partnership with MAN Diesel &
Turbo for its retrofit of Alaska trade vessels.
However, what really marks a step change in the evolution of LNG as a marine fuel is that we are now seeing
orders for deep sea shipping extending beyond ECAs, for example Sovcomflot has ordered six Aframax tankers,
Siem has two transatlantic car carriers on order for charter to Volkswagen, Polaris Shipping confirmed orders
for ten, LNG-ready very large ore carriers (VLOCs). Notably, 2017 culminated in a major announcement from
CMA CGM, stating that it will power its nine ultra-large container ship newbuilds – due to be delivered from
2020 – with LNG delivered by Total. “LNG is the fuel of the future for shipping,” Rodolphe Saade, chairman and
chief executive of CMA CGM was quoted as saying.
Like a game of chess, this decision by CMA CGM is so significant as it tips the balance for so many that may
have – until now – been contemplating their next move, waiting to see how the largest industry actors will
influence 2020 game plans. Other container lines are now likely to follow suit, as volume brings investment,
which expands infrastructure and stimulates supply chains. The snowball effect is inevitable.
The lack of infrastructure is always top of the list for those citing the largest hurdles to uptake of LNG as a
marine fuel. However, this argument is being steadily eroded and it’s fair to say that 2017 represents a tipping
point for LNG
one respected industry
reported “a blizzard of
developments in 2017.”
And it certainly seems
that way – of the world’s
top oil-bunkering ports,
nine of the top ten (the
exception being Long
Beach) offer LNG
bunkering or will do so by
LNG is now readily available in bulk at approximately 150 locations worldwide, and there is a huge bulk LNG
infrastructure of regasification terminals and liquefaction plants globally. Of significance, this infrastructure is
already well aligned with many deep-sea trade routes. It is the movement of LNG from bulk facilities to the
ships, more commonly known as the ‘last mile’, where efforts are being concentrated to enable easy access to
LNG as a marine fuel. Ship-to-ship (STS) transfers are a much quicker and more efficient operation than
jettyside truck-to-ship (TTS) bunkerings, and by 2018 there will be six LNG bunker vessels in service globally,
with four more projects confirmed.
Gas4Sea has the Engie
Zeebrugge, its Zeebruggebased
5,000m3 LNG bunker
vessel that was delivered in
April 2017 and the first LNG
bunker vessel to enter into
operation. In August 2017,
Shell took delivery of the
6,500 m3 Cardissa, an LNG
bunker tanker that is being
operated from Rotterdam.
Shell has also announced a
cooperation with Anthony Veder on the
conversion of the Dutch shipowner’s
7,500m3 coastal LNG carrier Coral Methane into a bunker
vessel, with plans for long-term charters of bunker barges serving the
Amsterdam, Rotterdam, and Antwerp (ARA) region in North West Europe and the southeast coast of the
US. Skangas took delivery of a purpose-built LNG bunker vessel this summer – the 5,800m3 Coralius. The Clean
Jacksonville is North America’s first ocean-going LNG bunker barge, with a 2,200 m3 fuel capacity. And Titan
LNG will introduce its first LNG bunker vessel, the FlexFueler1 pontoon, in mid-2018 to enable the delivery of
LNG fuel to vessels throughout the ARA region.
With the majority of LNG bunkering stations currently located in Europe, the region currently dominates the
LNG bunkering market with a share of 85%. But with high marine trade and home to Singapore, the world’s
largest bunkering location; Asia-
Pacific is expected to catch up quickly.
Ports play a crucial role in facilitating
this uptick in confidence, not only in
relation to infrastructure, but also
through incentives. This year, for
example, the Maritime and Port
Authority of Singapore (MPA)
commenced its LNG bunkering pilot
project, which provides various
companies grants of up to S$2 million
per LNG-powered vessel constructed;
and in Japan, the Yokohama-Kawasaki
International Port has initiated an
ambitious LNG bunkering programme.
Looking ahead, the supply side is gearing
up significantly and we are seeing
announcements for investments in the next
tier of bunker vessels, focused on NW
Europe, the US East Coast, China, and Korea.
ENN Group, for example, has announced
plans to develop an LNG-bunkering hub at
Zhoushan, near Shanghai, which includes
plans for an 8,000m³ LNG bunker-supply
ship. The Wärtsilä built Tornio Manga LNG
terminal project in Northern Finland also has
plans to provide bunkering for LNG fuelled
ships visiting the northern Baltic Sea waters.
And with increasing bulk LNG supply
capacity from Qatar, the US, Australia, and
Russia, new entrants and pressure from
existing buyers for more flexible, shorterterm
contracts are likely to stimulate the
emergence of a more liquid LNG market.
On the regulatory side, we are seeing a push to develop uniform bunkering standards, informed by the work
our partner association, the Society for Gas as a Marine Fuel (SGMF), is doing. Striving for harmonisation of
regulations on a global level is critical to the long-term success of LNG. Ports, for example, are learning from
early adopters, such as the Ports of Rotterdam and Jacksonville, and sharing knowledge and best practice to
create uniform local regulation.
The global 0.5% Sulphur cap provides immediate impetus for the development of LNG as a marine fuel, but
as new Emission Control Areas (ECAs), with far tighter local emissions limits, emerge, this stimulus will
increase further. ECAs are being considered in areas including the Mediterranean, the Strait of Malacca, Central
America, Japan, and Australia. And China is taking a phased approach to the introduction of full ECAs by
regulating the Sulphur content of fuels at four locations around their major ports. The introduction of new ECAs
supports local and regional uptake of LNG as a marine fuel, and longer term, bunkering infrastructure
established in the ECAs is likely to emerge as key hubs for the deep-sea shipping space.
We know that ship owners are looking for certainty on LNG supply and infrastructure, and those developing
the infrastructure are looking for people to order LNG-fuelled ships. With so many examples of tipping points
and step changes for LNG in terms of both newbuilding orders and infrastructure developments throughout
2017, it seems that the blizzard of change will continue through 2018, with a snowball effect that’s gathering
momentum apace towards 2020 and beyond.
As an organisation, SEA\LNG has grown from 13 founding members to more than 30, representing the
entire marine LNG value chain, uniting key players including shipping companies, classification societies, ports,
major LNG suppliers, downstream companies, infrastructure providers, shipyards, and OEMs. We are proud
that our members have been at the forefront of developments during 2017, which will no doubt continue
through 2018 and the years ahead.
MEM Marine Engineers Messenger
Publisher: Seaborne Communications Ltd
Contributions: Bill Thomson
The information published in MEM does not
necessarily represent the views of Seaborne
Communications Ltd. The publisher makes no
representation or warranty as to the accuracy or
correctness of the information or accepts
responsibility for any loss, damage or other liability
pertaining to the information published in this
©2018 Seaborne Communications Ltd