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TANKER<strong>Operator</strong><br />

AUGUST/SEPTEMBER 2008 www.tankeroperator.com<br />

<strong>Features</strong>:<br />

� KGs attract overseas investors<br />

� Shipmanagement consolidation<br />

� Hybrid gas carrier<br />

� Science of tank cleaning<br />

� Equipment – fit for purpose?<br />

� Discharge requirements examined


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· EMS Crew Management provides crew management<br />

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· EMS Shipping Agencies provide agency, grab leasing<br />

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TANKER<strong>Operator</strong> Contents<br />

Vol 7 No 8<br />

<strong>Tanker</strong> <strong>Operator</strong><br />

Magazine Ltd<br />

213 Marsh Wall<br />

London E14 9FJ, UK<br />

www.tankeroperator.com<br />

PUBLISHER/EVENTS/<br />

SUBSCRIPTIONS<br />

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Tel: +44 (0)20 7510 4935<br />

jeffery@thedigitalship.com<br />

EDITOR<br />

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Tel: +44 (0)20 7510 4933<br />

cochran@tankeroperator.com<br />

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Only Media Ltd<br />

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Printed by FISCHER Poligrafia<br />

ul. Dabrówki 10<br />

40-081 Katowice<br />

Poland<br />

04<br />

10<br />

11<br />

Markets<br />

Sale and leaseback<br />

opportunities<br />

Spot or timecharter?<br />

UKHO profile<br />

ENCs will be in place on time<br />

German Shipping<br />

Review<br />

� KG schemes face lack of<br />

bank funding<br />

� <strong>Tanker</strong> owners still<br />

expanding<br />

� Germany attracts overseas<br />

players<br />

� GL and DNV expand<br />

academies in Hamburg<br />

� Training centres re-emerge<br />

� GL and Lindenau research<br />

the breaking point<br />

Front cover photo<br />

Blenheim Shipping's Aframax Star<br />

Lady seen recently at Fos. She is<br />

one of four sisters, which the<br />

London-based company outsources<br />

the technical management to<br />

Scinicariello. Another Aframax and two<br />

Suezmaxes are currently under construction.<br />

The company also owns drybulk carriers.<br />

28<br />

Shipmanagement<br />

� New BSM set up explained<br />

� InterManager wants pay rise<br />

� Kristen and the environment<br />

� GL and Ulysses offer software<br />

Chartering<br />

Cargo contamination in spot light<br />

Technology<br />

43 Ship description<br />

New gas hybrid<br />

47 Gas detection<br />

Ensuring it’s fit for purpose<br />

52 Chemical tanker discharge<br />

- should be made easier<br />

55 Tank gauging<br />

- a new name emerges<br />

57 Tank cleaning<br />

- the Achilles Heal?<br />

SMM Preview<br />

This year’s exhibition is set to<br />

break records<br />

August/September 2008 ��TANKER<strong>Operator</strong> 01<br />

41<br />

43<br />

60<br />

TANK CLEANING<br />

We assist <strong>Tanker</strong> <strong>Operator</strong>s with:<br />

IMO-approved Chemicals<br />

in accordance with<br />

MEPC.1 / Circ.590<br />

� Chemical Tank Cleaning during cargo changeover from DPP to various CPP, CPP to<br />

Water White Standard, removal of MTBE residues, Inert Gas Soot, Dye, Veg. Oil etc.<br />

� Preparation and assessment of the required tank cleaning<br />

� Tank Cleaning Advice and Recommended Tank Cleaning Procedure<br />

� Delivery of newly IMO-approved Marine Tank Cleaners from stocks world wide<br />

� Delivery of chemical injection and special spraying equipment<br />

� Supercargo and Supervision during the cleaning at sea by experienced experts<br />

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Tel. +45-4917 0357 · Fax +45-4917 0657 · E-mail: navadan@navadan.com


COMMENT<br />

Will SMM be the turning point, or will it be business as usual?<br />

The bi-ennual fun of rushing headlong through<br />

exhibition halls knocking countless people out of<br />

the way to make an appointment is nearly upon us.<br />

This, as if it would need any introduction, will<br />

shortly be SMM week.<br />

"Bigger, better, more visitors, more stands, more halls" - appear on<br />

every press release. And indeed, ever since your Editor first attended<br />

the show, which was longer then he cares to remember, it has indeed<br />

become bigger and better.<br />

Fed by the gigantic world orderbook, the equipment suppliers have<br />

never had it so good. In fact, the only worry seems to be how to<br />

manufacture and deliver that piece of equipment on time and<br />

within budget.<br />

'Where will it all end?' the cynics ask. Will the economic situation<br />

cause a slowdown in vessel ordering? But, with most yards hanging the<br />

'full up' sign outside until 2011-2012, the suppliers are still sitting pretty.<br />

Many have also signed lucrative after sales deals. One manufacturer<br />

told TANKER<strong>Operator</strong> a couple of years ago, that after sales and<br />

service etc accounted for more than 50% of the company's turnover.<br />

With all the various rules and recommendations from the many<br />

regulators on the horizon, the equipment industry will doubtless<br />

continue to reap the rewards of retrofitting and installing new<br />

equipment on newbuildings - ballast water treatment plants being the<br />

prime example just now.<br />

Like the Greeks highlighted in our June issue, the Germans have<br />

been major investors in new tonnage, but mainly in box ships.<br />

However, the various KG funds have now opened up to other types of<br />

vessels, including tankers.<br />

All is not rosy, however, as in what could turn out to be the shape of<br />

things to come, the German banks have almost ceased lending to KG<br />

fund investors, leaving the shipping companies who rely on KG type<br />

02<br />

Product tankers in demand<br />

It would seem the consolidation bug has struck<br />

the product tanker industry yet again.<br />

Following relatively closely on TORM/OSG's buyout of OMI,<br />

Moller-Maersk has shaken the industry with an agreed bid for<br />

Broström.<br />

Interestingly, the offer was formally made through a company<br />

called Maersk Product <strong>Tanker</strong>s AB, a wholly owned subsidiary of<br />

AP Møller - Mærsk.<br />

"The scale of the combined operation will enable us to offer a<br />

superior worldwide service through a large, modern and<br />

homogeneous fleet. We need scale to ensure our organisation is cost<br />

effective and for customers to have easy access to chartering offices<br />

globally.<br />

"Combining Maersk <strong>Tanker</strong>s and Broström's scale with skilled and<br />

dedicated employees will further enhance our competitive position<br />

and create the world's leading product tanker company", Søren Skou,<br />

Maersk <strong>Tanker</strong>s' ceo said when announcing the deal.<br />

Until this announcement, the No 1 position in product tankers was<br />

held by TORM, following the OMI buyout, but with more than 130<br />

vessels both owned and long term chartered, the new combined<br />

operation will claim that title.<br />

Maersk also said that the demand for energy transportation was<br />

funding bereft of investment for their projects.<br />

Without the proper finance for these projects, the shipyards will<br />

slowly run out of orders, which in turn will have a knock-on effect on<br />

the equipment suppliers. However, this is the 'worst case' scenario. We<br />

do not appear to have reached such a low point thus far, although the<br />

money men (and women) are warning of 'doom and gloom' next year.<br />

There are many problems facing the shipping industry, most notably<br />

operating costs. Most of them if not all will be discussed at SMM and<br />

solutions found, but havn't we been talking about similar problems for<br />

many years to varying degrees?<br />

I admit to being old enough to remember slow steaming in the 1970s<br />

and 1980s when the price of fuel rocketed, resulting in the Norwegian<br />

Fjords being awash with VLCCs and ULCCs. It was difficult to get<br />

finance in those days, due to low earnings, leading to negative equity.<br />

At the time, some even blamed to banks for the shipping crisis for<br />

being too free with their money and not undertaking proper credit<br />

checks. We can't accuse them of that in today's credit crunch aftermath.<br />

Two problems stand out above all- the perceived lack of experienced<br />

seafarers and the environment. In Germany, positive steps are being<br />

taken to recruit and train not only seafarers, but also office staff in the<br />

maritime field.<br />

Environmental issues are also being addressed, mainly by those<br />

seeking to reduce emissions and the polluting of the oceans, although<br />

like many things, opinions vary not necessarily for the right reasons.<br />

Will we be in time to address these issues for the better of the<br />

shipping industry and even more important- for mankind? Time alone<br />

will tell.<br />

The atmosphere at this year's SMM could be rather strange as on the<br />

one hand there is still a state of euphoria over the shipping industry's<br />

recent strength and on the other apprehension over what the next year<br />

or so will bring.<br />

expected to continue to grow, which together with the IMO's phase<br />

out of single hull tankers by 2010, underlined the positive business<br />

environment for the tanker market. It was in this light that AP Møller<br />

- Maersk had previously stated its intention to invest in Maersk<br />

<strong>Tanker</strong>s as one of the growth areas within the group.<br />

Of course, the regulation authorities will have a look at the deal<br />

before it is allowed to go through, but this will probably be a<br />

formality.<br />

Once it is rubber stamped, Maersk said it would evaluate how the<br />

various partnerships and agreements could be integrated into the<br />

business structure.<br />

One partnership was with Hamburg-based Offen Tankschiffreederei,<br />

which was to put eight Hyundai Mipo type 37,000 dwt product<br />

tankers into Broström's fleet, adding to the eight already operated by<br />

the Gothenburg-based concern.<br />

Both companies are in favour of operating in pooling<br />

arrangements and this move will no doubt considerably strengthen<br />

Maersk <strong>Tanker</strong>s' Handytankers pool.<br />

Other pool partners also operate the now standard Hyundai Mipo<br />

37,000 dwt type tankers, most notably another Copenhagen-based<br />

operation, Norient Product Pool, managed jointly by Interorient<br />

and Norden. �<br />

TANKER<strong>Operator</strong> � August/September 2008<br />

TO


First Class tankers: a new perspective<br />

TAKING<br />

TANKERS<br />

SERIOUSLY<br />

Germanischer Lloyd Aktiengesellschaft<br />

Vorsetzen 35 · 20459 Hamburg, Germany<br />

Phone +49 40 36149-0 · Fax +49 40 36149-200<br />

headoffice@gl-group.com · www.gl-group.com<br />

Stand No. 150, Hall B4<br />

See you at SMM 2008<br />

<strong>Tanker</strong>s are like a work of art – the more quality they offer, the more valuable<br />

they are. Welcome to GL, your First Class partner in improving the operational<br />

safety and profitability of your tankers!


INDUSTRY - MARKETS<br />

04<br />

Sale & leaseback as a<br />

financial tool in freight &<br />

credit markets - part 1<br />

By Basil M Karatzas*<br />

As anybody in the shipping industry can attest, prices for shipping assets<br />

have been experiencing their highest levels in recent memory.<br />

Asset appreciation has been more<br />

accentuated in the last four years,<br />

as Graph 1 depicts for five-yearold<br />

tankers - VLCCs, Aframaxes<br />

and MRs. The data is provided by the Baltic<br />

Exchange Sale & Purchase Assessment Index<br />

(BSPA) for which Compass Maritime Services<br />

is a panel member.<br />

Although the asset appreciation is welcome<br />

by shipowners who have had the good fortune<br />

and perspicacity to acquire assets in time, there<br />

is always the strategic consideration of how the<br />

shipowner should be utilising the current state<br />

of the markets by unlocking and deploying the<br />

capital appreciation and optimally positioning<br />

the company for the future.<br />

The selective sale of assets (older vintage,<br />

lower quality vessels, etc) is one obvious<br />

answer. However, for tonnage built in the<br />

early 1990's, the consideration is of<br />

maintaining control of the (still modern) assets<br />

in a strong freight market, and keeping access<br />

to tonnage in order to serve strategic accounts<br />

(charterers with their own cargoes) and<br />

generate operating profits.<br />

One such approach of unlocking capital<br />

gains that has been successfully employed by<br />

several shipowners is the sale & leaseback<br />

transaction (SLB), whereas the shipowner<br />

sells a vessel (a tanker for the purposes of this<br />

article) at today's prevailing market rates and<br />

simultaneously taking back the vessel on<br />

employment for a certain period of the time.<br />

In such transactions, the shipowner frees up<br />

capital which can deployed in any way the<br />

owner sees suitable, optimally by placing<br />

orders to renew and replace the fleet, while at<br />

the same time retaining commercial and<br />

operational control of the tanker for a period<br />

of time in a robust freight market.<br />

In order for such a transaction to become<br />

feasible, several parameters are important and<br />

negotiable between the shipowner and the<br />

lessee, terms such as the period (short term<br />

versus long term) and type of employment<br />

(bareboat versus timecharter employment),<br />

purchase options, if any, and of course the<br />

daily rate that the shipowner will be paying to<br />

the new owner and lessor. Several other<br />

parameters indirectly affect the transaction<br />

such as the credit markets and cost of finance<br />

(for leveraged leases), type of asset class and<br />

assessment of residual risk of the vessel at end<br />

of lease, and finally the credit rating of the<br />

shipowner (an ex-owner and charterer of the<br />

vessel once the transaction has been<br />

consummated).<br />

What type of financial concerns would be<br />

interested in acquiring vessels on such terms?<br />

Leasing companies and investment funds that<br />

specialise in leases due to tax reasons (they<br />

can use depreciation for accounting purposes<br />

versus a tax-free shipowner in most cases), for<br />

residual value reasons (in a market moving<br />

higher vessels can have a market value above<br />

book value and thus offer to the financial<br />

owner an attractive return on investment),<br />

fixed income reasons (low risk, low reward<br />

BP Shipcare<br />

The Professional Lay-up Option<br />

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Tel: +44 1932 771571 Fax: +44 1932 771690<br />

return) above cost of finance for a credit<br />

worthy lessor.<br />

From a financial and tax point of view in<br />

the US, leases are categorised as either -<br />

a) Capital or finance leases - long-term<br />

leases covering more that 75% of the<br />

vessel's economic life, with the present<br />

value of the lease rental payments<br />

constituting 90% of the vessel's fair<br />

market value, and whereas the lessee<br />

automatically acquires the asset or has the<br />

option to acquire the asset at a bargain price.<br />

b) Operating leases - which are all noncapital<br />

leases (usually short-term leases<br />

where the lessee does not have an interest<br />

in the vessel after the termination of the<br />

lease).<br />

There is also the distinction of 'wet lease'<br />

versus 'dry lease' [in the former, the lessor<br />

provides crewing (timecharter in shipping<br />

terms), in the latter the lessor provides the<br />

vessel alone (bareboat charter)]. A couple<br />

more leasing terms to keep in mind are the<br />

'net lease' where all costs associated with<br />

insurance, taxes, maintenance are paid by the<br />

lessee/charterer, and the 'leveraged lease'<br />

where the lessor arranges financing through a<br />

long-term creditor.<br />

Commercial applications<br />

Having covered the basic terminology, it's<br />

time to turn to the commercial applications of<br />

leasing in shipping.<br />

When negotiating the terms of a sale &<br />

Your answer to<br />

a low freightrate<br />

environment and<br />

standdown<br />

periods<br />

Website: www.bpshipcare.com<br />

Tel: +60 87 415277 Fax: +60 87 415330<br />

clean seas safe ships commercial success<br />

TANKER<strong>Operator</strong> � August/September 2008


Asset Price (USD mil)<br />

$180.00<br />

$160.00<br />

$140.00<br />

$120.00<br />

$100.00<br />

$80.00<br />

$60.00<br />

$40.00<br />

$20.00<br />

$0.00<br />

16-Sep-03<br />

Graph 1<br />

16-Apr-04<br />

INDUSTRY - MARKETS<br />

<strong>Tanker</strong> Asset Prices (5yr-old Vessels)<br />

16-Nov-04<br />

16-Jun-05<br />

16-Jan-06<br />

VLCC - 5yr old<br />

AFRAMAX - 5yr old<br />

MR PRODUCTS TANKER - 5yr old<br />

16-Aug-06<br />

16-Mar-07<br />

16-Oct-07<br />

16-May-08<br />

leaseback transaction, the purchase price and the daily rate are usually<br />

the most contested points. The higher the purchase price the happier<br />

the owner/seller, and the higher the daily rate the happier the lessee.<br />

While most asset prices in shipping are quoted basis 'prompt, charterfree<br />

delivery', in a sale & leaseback transaction the purchase price is<br />

some sort of a function of the daily rate.<br />

Usually, the higher the purchase price, the higher the required daily<br />

rate, all else being equal. In other words, the transaction can take place<br />

'at market levels', 'below market' or 'above market.'<br />

An 'at market levels' transaction is when the purchase price of the<br />

asset reflects the sale & purchase market on a 'prompt, charter-free<br />

delivery' basis, and the daily rate is based on the purchase price. A<br />

'below market' transaction is when the shipowner sells the vessel at<br />

below market levels in exchange of a below market daily rate that will<br />

allow generation of higher operating profit during the period of the<br />

charter. An 'above market' transaction is when the shipowner sells the<br />

vessel at above market levels while the daily rate will be higher than<br />

otherwise (think of this type of transaction as the owner using the<br />

vessel as an ATM machine, whereas the sale allows a few million<br />

dollars above market, which of course have to replenished during the<br />

period of the charter in the form of higher daily rate).<br />

An early generation double-hull Aframax built in 1993-1994 of<br />

about 95,000 dwt was contracted back then for about $40 mill. In<br />

today's market, 14 years later, such a vessel has a fair market value on<br />

a prompt, charter-free basis of about $43 mill. In a sale & leaseback<br />

transaction for such vintage vessel based on such purchase price,<br />

originated in 2007, the daily rental rate (bareboat charter to the<br />

financial owner) was around $15,000 - $16,000 for a decent credit<br />

(lowest investment credit) for a five-year term. Assuming the technical<br />

management cost of $8,000 per day, the daily vessel operating expense<br />

was around $23,000 - $24,000. In today's market, while the purchase<br />

price of such vessel is still within the same range, the required daily<br />

rate is in the region of $18,000 per day to reflect the tighter credit<br />

criteria and higher lending costs in the current financial markets. The<br />

daily vessel operating expense based on such a sale & leaseback net<br />

quote adds up to about $26,000 - $27,000.<br />

In Graph 2, we show the charter rates in the last eight years, on<br />

bareboat basis, for an Aframax of such vintage. The data was obtained<br />

from Clarkson Research Services on a timecharter basis, and adjusted<br />

for the daily operating expense and the utilisation rate to 100%. We<br />

have shown the one-year and the three-year firm contract daily rate and<br />

the spot rate against the pre- and post-credit crunch average daily rate<br />

that would have been secured for a typical transaction.<br />

It is no surprise that in the strong freight markets of this period, with<br />

the exception of an overall anemic 2002 and a couple more short-lived<br />

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August/September 2008 � TANKER<strong>Operator</strong> 05


INDUSTRY - MARKETS<br />

Daily Rate (Bareboat Basis, USD / d)<br />

soft freight market windows, the<br />

shipowner/lessee would had the opportunity to<br />

trade the vessel profitably on the spot market<br />

and on one and three year firm contracts and<br />

would had made an operating profit. Of<br />

course, the shipowner/lessee would have been<br />

exposed to the market risk of either renewing<br />

the short-term firm employment contract until<br />

fully covering the leaseback term, or risk the<br />

spot market. However, in such strong markets<br />

06<br />

$80,000<br />

$70,000<br />

$60,000<br />

$50,000<br />

$40,000<br />

$30,000<br />

$20,000<br />

$10,000<br />

$0<br />

2000-01<br />

Graph 2<br />

2001-01<br />

2002-01<br />

Historical Aframax Rates (on bareboat basis)<br />

2003-01<br />

2004-01<br />

2005-01<br />

2006-01<br />

2007-01<br />

2008-01<br />

Post-Credit Crunch<br />

1YR BBC Equivalent Daily<br />

Rate<br />

3YR BBC Equivalent Daily<br />

Rate<br />

BBC Equivalent Daily<br />

Average Spot Rate<br />

Pre-Credit Crunch<br />

conducive to leasing transactions, there was<br />

the case in early 2007 when an Aframax<br />

tanker of such vintage could be sold to a<br />

leasing company, bareboated back for five<br />

years and immediately 'flipped' to a third party<br />

also for five years (no market exposure) at a<br />

small profit ($1,000 - $2,000 per day).<br />

For this article, we have primarily focused<br />

on early vintage double hull Aframaxes, since<br />

they have been offering the best perspectives<br />

for such transactions. A post-2000 built<br />

Aframax with a purchase price materially in<br />

excess of $60 mill would require a daily rental<br />

rate of around $30,000 for five years, which<br />

would have made the project unfeasible from<br />

an economic/commercial point of view. Of<br />

course, the period of the lease can be extended<br />

to more than eight years, among other factors,<br />

in order to become workable.<br />

The term of the lease and the rest of the<br />

parameters will be covered in future articles in<br />

this series, examining the variables and terms<br />

affecting a sale & leaseback transaction. TO<br />

*Basil M Karatzas is managing director<br />

for projects & finance with Compass<br />

Maritime Services, based in New Jersey,<br />

US. He has executed projects in the sale<br />

& purchase (S&P) sector of the shipping<br />

business and has acted extensively on<br />

behalf of operating and financial owners<br />

in originating shipping transactions<br />

(sale & leaseback transactions, raising<br />

equity and debt, advisory services on<br />

shipping transactions and vessel<br />

arrests). He can be contacted at<br />

BKaratzas@CompassMar.com, +201-<br />

585-9999, or www.CompassMar.com.<br />

TANKER<strong>Operator</strong> � August/September 2008


INDUSTRY - MARKETS<br />

Spot or timecharter<br />

your asset?<br />

The old argument as to whether to opt for long term charters or play the spot market<br />

has concentrated some of the finest minds in the shipping industry, usually to no avail.<br />

Upon analysing many fleets'<br />

charter exposure it soon<br />

becomes clear that different<br />

mixes of spot and period charters<br />

are used. The ideal fleet mix will gain the best<br />

results if the peaks of both spot and period are<br />

taken advantage of.<br />

However, traditional market spikes are<br />

becoming more uncertain and short term<br />

market hikes more common, making the job<br />

of shipping planners more complicated and<br />

making it more difficult to predict market<br />

behaviour at any given time.<br />

US consultancy McQuilling Services has<br />

tried to analyse the period charter market. By<br />

placing a vessel on period charter an owner<br />

will be protected from the current high bunker<br />

costs, while at the same time provide a steady<br />

income.<br />

On the other hand, period charters prevent<br />

an owner from maximising potential earnings<br />

by taking advantage of a strong spot market<br />

and triangulating opportunities.<br />

McQuilling said that its analysis showed<br />

that the timecharter market is at times<br />

driven by the spot market, but is also<br />

has its own driving factors. For example,<br />

when the spot market is on the rise, the<br />

period market tends to follow and the spot<br />

market earnings stimulate an increase in<br />

period rates.<br />

When the spot market is falling, the<br />

period market will only fall to a certain<br />

benchmark and it will not sink any further,<br />

regardless of what the spot market does.<br />

During this phenomenon, the period<br />

market rates will remain higher than the<br />

weak spot market earning for over a year<br />

at a time.<br />

McQuilling found that a VLCC fixed for 12<br />

months in December 2006 would have<br />

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August/September 2008 � TANKER<strong>Operator</strong> 07


INDUSTRY - MARKETS<br />

spot market for the same period. Owners are attracted to the spot<br />

market by VLCC rates that could result in over $250,000 per day in<br />

TCE earnings.<br />

The consultant said that it had noticed spikes in a non-traditional time<br />

08<br />

admin@marine-service.gi snp@marine-service.gi<br />

The 12 month MR<br />

charter rate has been<br />

above $20,000 per day<br />

for the past two years<br />

according to<br />

McQuilling Services.<br />

of the year, which is making the spot market an even more attractive<br />

option. If owners are able to take advantage of these spikes, then the<br />

spot market would be a much more lucrative proposition than the<br />

period market. However, not all owners will have vessels in place at<br />

the right time.<br />

The decision on whether to opt for the period or spot market is<br />

also dependent on financing structure, company policy, market<br />

levels, among many other factors. In a simple observation of<br />

historical market earnings, some conclusions may be drawn.<br />

McQuilling said.<br />

For example, in the Suezmax market, earnings have been clearly<br />

higher in the spot market compared with the one year timecharter<br />

market since January 2005. Furthermore, if triangulated, these<br />

vessels earned even more.<br />

In the smaller tanker sector, the immediate picture looked<br />

somewhat different. In the MR sector, the market had favoured 12<br />

months timecharters for the last two years. However, two<br />

observations should be noted - the Singapore/Japan 30,000 tonne<br />

lifting drags down the average spot earnings and triangulation was<br />

not taken into account, despite being an essential part of MR<br />

operation. Notwithstanding this, the 12 months charter rate has been<br />

above $20,000 per day for the last two years and thereby provided<br />

healthy earnings for most of that period.<br />

Turning to longer period, McQuilling said that placing a vessel in<br />

a three year or longer charter is becoming even more complex. There<br />

were simply too many future unknowns that are almost impossible to<br />

predict.<br />

For example, the operating costs were expected to increase within<br />

the general line of inflation including commodities, labour and<br />

administrative costs. However, the cost of the shrinking number of<br />

seafarers was forecast to increase at a much higher rate, thus driving<br />

the operating costs upward.<br />

Even if owners are increasingly trying to regulate escalation costs<br />

into their calculations for period charter earnings, future operating<br />

costs remain an enigma and therefore diminish the attraction of long<br />

term charters, McQuilling warned.<br />

TO<br />

TANKER<strong>Operator</strong> � August/September 2008


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INDUSTRY - UKHO PROFILE<br />

HOs confident of having official ENCs in place<br />

Following the official launch of the<br />

Admiralty Vector Chart Service<br />

(AVCS) earlier this year, the UKHO's<br />

chief executive Mike Robinson said<br />

that the organisation was “very<br />

comfortable” with its progress.<br />

"The sales have exceeded our expectations"<br />

Robinson said. The UKHO is continuing with<br />

its policy of offering three-month trial<br />

licensing periods and thus far about 30 vessels<br />

had taken advantage of the offer. Feedback<br />

has been positive but like any new initiative,<br />

there have been some teething troubles<br />

requiring some fine tuning of the service.<br />

Negotiations are still underway with China<br />

and other countries with a view to having as<br />

many electronic navigational charts (ENCs)<br />

available as possible by the end of this year in<br />

a bid to cover most of the world's largest ports<br />

(see TANKER<strong>Operator</strong>, May, page 36).<br />

While inconsistencies in chart information<br />

are the same whether an ENC or a paper chart<br />

is being used, in the case of ENCs it becomes<br />

much more apparent to the mariner because on<br />

ECDIS adjacent ENCs are displayed together<br />

on screen, whereas paper charts are normally<br />

used one at a time. The problem is highlighted<br />

where ENCs overlap due to sensitive political<br />

boundary type issues, this affects ENCs in a<br />

number of areas around the world, although its<br />

impact on the mariner depends to some extent<br />

on which ECDIS is fitted.<br />

Another difficulty in producing a truly<br />

harmonised ENC dataset is that underlying<br />

hydrographic data could have come from<br />

surveys of different eras resulting in<br />

discontinuities at survey boundaries -<br />

especially where there is a mobile seabed.<br />

The UKHO said that it is determined to<br />

reduce the problems that inconsistency causes<br />

the mariner by working closely with other<br />

hydrographic offices (HOs) and by appropriate<br />

application of its compilation expertise.<br />

The organisation stated that the ENCs had<br />

to be at least as good as the paper charts<br />

currently used, "Users have come to expect<br />

accurate data from the UKHO", Robinson<br />

said. The UKHO is working with other (HOs)<br />

to ensure that the information issued by the<br />

Taunton-based organisation meets rigorous<br />

standards for accuracy and provides the<br />

mariner with the most appropriate<br />

navigational picture.<br />

Regarding the recent IMO NAV54<br />

recommendations; a consensus was reached on<br />

a mandatory carriage requirement for ECDIS<br />

starting in 2012; this will be put to the next<br />

Maritime Safety Committee (MSC) meeting.<br />

10<br />

The HOs believe they will have adequate ENC<br />

coverage and consistency by 2010 and that<br />

pricing levels will have reduced by then. Extra<br />

training within STCW will be needed to ensure<br />

that all navigators have the necessary skills to<br />

use ECDIS safely and effectively.<br />

The NAV54 recommendations were based<br />

around papers submitted by Norway and the<br />

UK. After much debate it was agreed tankers<br />

of over 3,000 gt and passenger vessels of over<br />

500 gt would be the first ship types to be<br />

fitted with ECDIS starting in 2012 for new<br />

hulls, with cargo vessels of over 3000 gt<br />

following in 2013. If these recommendations,<br />

which include retrofitting of existing tonnage<br />

by 2018, are adopted by MSC then this would<br />

mean around 60% take up of ECDIS across<br />

the board, Robinson thought. "ECDIS is the<br />

best method of navigation going forward. The<br />

starting gun was fired at NAV54," he added.<br />

The onus is now on HOs to produce the<br />

ENCs and ECDIS manufacturers to produce<br />

the systems. The UKHO is also looking to<br />

add layers to the ENCs so that other<br />

information that could be integrated into an<br />

ECDIS to support activities, such as passage<br />

planning and voyage execution. Digitising<br />

information, rather than relying on the paper<br />

format would provide greater flexibility in use<br />

of the data and was therefore the ultimate<br />

goal, the organisation said.<br />

Second phase<br />

The UKHO is in what it called a second phase<br />

of discussions with OEMs regarding the<br />

implementation of its plans. Given the lead<br />

times necessary it is hoped to be able to<br />

demonstrate 'front of bridge' operation<br />

sometime next year.<br />

Also under discussion at the IMO was<br />

ENavigation. This new concept could mean<br />

the provision of totally integrated services,<br />

including digitised port information running<br />

on the navigators' and masters' workstations<br />

and aimed at 'front end navigation'.<br />

One thing is certain, that when the use of<br />

ECDIS becomes mandatory in 2012 or later,<br />

depending on its adoption and ratification<br />

period, ENCs will have to be provided by<br />

Government approved HOs, so quite where<br />

this leaves the commercial vector data<br />

producers is not yet clear.<br />

However, the capacity to produce ENCs<br />

could be a problem in the near future for some<br />

nations, and so the UK, along with other states<br />

involved in hydrographic work, is offering<br />

assistance and training in producing ENCs,<br />

working through bi-lateral agreements and<br />

UKHO ceo Mike Robinson.<br />

sharing technical experience.<br />

Nations that are signatories to the SOLAS<br />

convention are obliged to ensure provision of<br />

hydrographic services and when ECDIS is<br />

mandatory this will include ENCs. The<br />

International Hydrographic Organisation<br />

(IHO) encourages all states, which have<br />

navigable waters to recognise this<br />

responsibility. Nations can meet their<br />

obligations either by developing their own<br />

capability, or through agreement with another<br />

state to provide these services on their behalf.<br />

The IHO said recently that its goal was to<br />

improve the level of hydrographic services<br />

throughout the world by capacity building, a<br />

theme supported by the UKHO. The IHO<br />

defined three phases in the development of a<br />

national hydrographic capability as the core to<br />

this strategy.<br />

1) Focus on the need to recognise their<br />

national responsibilities for the provision<br />

of hydrographic services and to initiate the<br />

collection and dissemination of marine<br />

safety information.<br />

The first stage is essential in order to<br />

maintain existing charts and publications to<br />

enable safe navigation.<br />

2) The provision of advice and training<br />

assistance to support the creation of basic<br />

hydrographic surveying capability.<br />

3) Support further development of a national<br />

hydrographic service, including such<br />

capabilities as paper chart production,<br />

ENCs and nautical publications.<br />

Underpinning the IHO initiative is a four-step<br />

process - awareness, assessment, analysis and<br />

action. The organisation said that by<br />

proceeding in such a co-ordinated manner, the<br />

capacity building strategy will over time help<br />

HOs worldwide to develop appropriate levels<br />

of hydrographic capability.<br />

TO<br />

TANKER<strong>Operator</strong> � August/September 2008


Focus on Germany<br />

Germany's seemingly insatiable<br />

appetite for newbuildings<br />

continues, especially in the more<br />

traditional German liner sector.<br />

Despite spiralling newbuilding costs, the<br />

interest continues to be fuelled by the 'KG'<br />

fund schemes, whose liquidity shows no sign<br />

of abating.<br />

However, the more traditional German<br />

finance houses will no longer look at<br />

speculative deals, but rather seek a shipping<br />

project with a charter attached for cash flow<br />

reasons resulting in some of the KG fund<br />

investors finding finance harder to come by.<br />

During the past few years, the KG fund<br />

managers have looked at other projects away<br />

from the traditional containerships and have<br />

recently endorsed almost all types of tankers,<br />

including gas carriers; offshore support vessels<br />

and even a drilling rig. This has attracted more<br />

oversees players to Germany, either in joint<br />

ventures with established German players, or<br />

by setting up shop on their own.<br />

To take advantage of KG type finance, a<br />

company must have an operational base in<br />

Germany and more contentiously, if the<br />

German flag is being considered, then the<br />

Banks pull the plug on KG funding<br />

vessel owner/operator must employ a master<br />

who is fluent in German marine law.<br />

A successful German tonnage tax regime<br />

was introduced in 1999 and to keep it going<br />

for the foreseeable future, the authorities have<br />

asked that German-based owners ensure that<br />

500 vessels will be under the German flag by<br />

the end of this year. This means an extra 70-<br />

100 ships will need to register in the coming<br />

months, a fact not lost on the German<br />

Shipowners Association (VDR), or its<br />

members.<br />

The attraction of Germany and in particular<br />

Hamburg, as well as other centres, such as<br />

Leer and Bremen, is that maritime clusters<br />

have been built up that clearly work.<br />

According to figures produced by the<br />

Hamburg Metropolitan Region, in Germany<br />

there are 440 shipping companies operating<br />

around 3,300 vessels totalling around 67 mill<br />

gt. Of the owning companies, more than 200<br />

are based in the Hamburg area. There are also<br />

many overseas company subsidiaries located<br />

in the German coastal cities.<br />

Within the next three years, according to<br />

figures produced by the VDR, there will be<br />

another 1,300 vessels delivered into the<br />

INDUSTRY - FOCUS ON GERMANY<br />

German-controlled fleet, which will put a<br />

strain on crewing resources and training. At a<br />

recent German Maritime Conference a<br />

decision was made to support the nautical<br />

training locations in the coastal states by<br />

expanding their capacity.<br />

Greek interests<br />

One example of an overseas concern setting<br />

up shop in Hamburg is Hellespont. The<br />

leading Greek-based tanker owner and<br />

manager relocated part of its operations,<br />

including the shipmanagement to Hamburg in<br />

a joint venture to take advantage of the KG<br />

finance system.<br />

As a result, Hellespont Hammonia GmbH<br />

& Co KG was formed, which is 50% owned<br />

by Hellespont, 25% by shipowner Peter<br />

Doehle and 25% by KG emission house<br />

HCI Capital.<br />

Apart from full day-to-day<br />

shipmanagement, the Hamburg office is<br />

responsible for manning, insurance, repair &<br />

maintenance, purchasing, operations,<br />

husbandry, accounting and chartering.<br />

Since the German arm first commenced<br />

operations out of Peter Doehle's offices,<br />

August/September 2008 � TANKER<strong>Operator</strong> 11


INDUSTRY - FOCUS ON GERMANY<br />

Hellespont has built up a considerable<br />

presence, both in terms of ships and of people.<br />

Today, the company has six crude tankers<br />

(five Suezmaxes and one Aframax), six LR1<br />

coated product tankers and three recently<br />

purchased IMO II chemical tankers.<br />

Not stopping there, the company ordered<br />

another eight IMO II chemical tankers and six<br />

platform supply vessels for delivery between<br />

the end of this year and the middle of 2010.<br />

All have been ordered through KG financing<br />

schemes.<br />

The company's ceo Christian Freiherr von<br />

Oldershausen said that Hellespont had<br />

earmarked its eight 17,000 dwt IMO II epoxy<br />

coated newbuilding chemical carriers for a<br />

pool operation. "It (a pool) creates a certain<br />

stability of earnings and the KG fund<br />

investors now understand this concept,"<br />

he said.<br />

Despite the 'credit crunch', von<br />

Oldershausen said that there was still an<br />

appetite among investors for shipping<br />

projects, but the trick was to find the right<br />

project. "Investors’ appetite for shipping<br />

equity has not diminished. The problem is<br />

finding a project that yields an acceptable<br />

return as newbuilding prices have gone up<br />

tremendously," von Oldershausen said.<br />

The escalating cost of newbuildings has<br />

squeezed margins. In addition, the German<br />

finance houses that lend to the KG investors<br />

have become more discerning as have the<br />

investors themselves.<br />

From Hamburg, Hellespont technically<br />

manages all of the fleet under new managing<br />

director Captain Matthias Imrecke. Captain<br />

Andrew Lidgard was also recently recruited to<br />

manage the offshore fleet, also operating out<br />

of the Hamburg office. For crewing purposes,<br />

Hellespont has a small stake in Manila<br />

12<br />

Shipmanagement & Manning Inc.<br />

Hellespont hopes to employ its first cadets<br />

in August of this year as due to the number of<br />

newbuildings, the company needed to grow its<br />

seafarer pool. The company is already<br />

achieving 92-93% seafarer retention and<br />

claimed to have a large officer pool.<br />

The company recently moved out of partner<br />

Peter Doehle's offices on the Elbchaussee to a<br />

more central location as more space was<br />

needed. Another reason was to be near the<br />

major banks, broking houses, laywers etc that<br />

abound in the centre of Hamburg, von<br />

Oldershausen explained.<br />

To cope with the fleet expansion, four teams<br />

have been set up in the office to look after the<br />

crude, product, chemical and offshore sectors.<br />

Von Oldershausen admitted that the chemical<br />

carriers required more attention due to their<br />

specialist nature. A dedicated health and safety<br />

officer will be appointed soon.<br />

Around the same time that Imrecke was<br />

recruited to head up the technical management<br />

team, former head Spyros Vlassopoulos who<br />

had spearheaded Hellespont's start in Germany<br />

went back to Piraeus to take charge of the<br />

company's commercial activities, to strengthen<br />

“<br />

Hellespont ceo Christian<br />

Freiherr von<br />

Oldershausen receives a<br />

commemorative plaque<br />

from Father Apostolos on<br />

the occasion of the<br />

blessing of Hellespont’s<br />

new Hamburg premises.<br />

the relationship with charterers and subcharterers.<br />

As for the current fleet, two of the three<br />

13,100 dwt chemical tankers in the fleet are<br />

working the spot market, while the third is<br />

long term chartered to Vitol trading in Asia.<br />

Von Oldershausen described the chemical<br />

carrier market as "disappointing" in the first<br />

quarter of this year. However, it picked up<br />

slightly in the 2Q08.<br />

He expected a "rough period" until the end<br />

of next year when, "…..in line with<br />

expectations of market participants things<br />

should pick up again. In the meantime there<br />

are a lot of newbuildings coming on stream,"<br />

he said.<br />

The six Panamax LR1s are timechartered to<br />

Sanko for seven years and are operating in the<br />

product market sector. Four of the five<br />

Suezmaxes and the Aframax are also long<br />

term chartered to the Japanese operator.<br />

The remaining Suezmax -Hellespont Trust -<br />

is chartered to Heidmar and is operating in its<br />

Suezmax tanker pool. Sister Hellespont<br />

Trader is also operating in Heidmar's<br />

Suezmax pool having been sub-let from<br />

Sanko.<br />

“Investors’ appetite for shipping equity has<br />

not diminished. The problem is finding a project<br />

that yields an acceptable return as newbuilding<br />

prices have gone up tremendously.”<br />

Christian Freiherr von Oldershausen, CEO,<br />

Hellespont Hammonia GmbH & Co KG<br />

”<br />

TANKER<strong>Operator</strong> � August/September 2008


Although not ruling out the use of the<br />

German flag for some of the vessels in the<br />

near future, von Oldershausen explained that<br />

if the three 13,100 dwt chemical tankers were<br />

put under the national flag, then the company<br />

would need to employ around 15 German<br />

officers, which in today's climate would be<br />

extremely difficult.<br />

Dutch interests<br />

Last year, Amsterdam-based Seaarland<br />

Shipping Management expanded its growing<br />

global network into Germany by setting up a<br />

joint venture with Hamburg-based TB<br />

Marine-Hamburg GmbH.<br />

The same year, Seaarland and TB and<br />

Partners' jointly ordered four IMO II shallow<br />

draft 29,000 dwt product carriers, plus two<br />

coated LR1s from China's Zhejiang Hongguan<br />

Shipbuilding for delivery in 2011 and the<br />

latter from New Century Shipbuilding for<br />

delivery August and September 2008.<br />

To manage the ships and to provide access<br />

to the German equity market in July last year,<br />

Seaarland and TB Marine set up Seaarland<br />

Shipmanagement (Hamburg) GmbH & Co<br />

KG, which now operates under the watchful<br />

eyes of managing directors Andreas Sand and<br />

Claus Bethke.<br />

The joint venture originally started with the<br />

delivery of a secondhand handysize IMO III<br />

product tanker - 36,000 dwt Alia - on 19th<br />

December 2007 while three more handysize<br />

tankers were purchased from Teekay for<br />

delivery this year, plus a newbuilding, which<br />

is due for delivery next January. These were<br />

the first vessel to be technically managed from<br />

Hamburg by Seaarland.<br />

At the time of the agreement, Seaarland's<br />

head Antonio Zacchello said; "We now have a<br />

strong foothold in the Mediterranean, in North<br />

Europe in both Amsterdam and Hamburg, and<br />

in Asia, through our Singapore and Indian<br />

companies. This German initiative with strong<br />

partners follows our strategic growth plan,<br />

always working with good partners to<br />

maximise our mutual strengths and deliver to<br />

our charterers the powerful combination of a<br />

global shipping company with strong local<br />

knowledge."<br />

TB Marine-Hamburg GmbH was founded<br />

on 1st July 2005 by Stephan Bracker and<br />

Steffen Thate to initiate, finance, own and<br />

manage newbuildings and secondhand ships<br />

for both private and public investors in the<br />

German KG market.<br />

It has strong relations with Chinese<br />

shipyards and a Chinese investment group via<br />

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INDUSTRY - FOCUS ON GERMANY<br />

Aquarius Marine Consulting (AMC),<br />

Hamburg. Thorsten Schablinski, sole partner<br />

and managing director of AMC, provides<br />

technical consultancy, plan approval and<br />

newbuilding supervision for TB's projects.<br />

TB Marine and its partners now have 30<br />

tanker newbuildings on order. In a recent<br />

investor presentation, TB Marine said that<br />

vessel Nos 1-24 will be employed under long<br />

term charters and pool arrangements with<br />

leading European pool operators in the size<br />

range of up to 20,000 dwt. For example, eight<br />

of the Ice Class 1A chemical/product<br />

newbuildings were fixed long term to Maersk<br />

<strong>Tanker</strong>s and another eight to the Clipper<br />

Group. The final eight in the 16,500 dwt-<br />

19,000 dwt range are intended to go into the<br />

Swift <strong>Tanker</strong>s pool.<br />

Four 29,000 dwt tankers will join the<br />

Handytankers pool while two LR1s are also<br />

on order and will join the Global <strong>Tanker</strong> Pool.<br />

Other vessels planned include three 92,500<br />

dwt bulk carriers and the latest venture<br />

involving the financing of eight vehicle<br />

carriers (PCTS), which are being built for<br />

Laeisz management.<br />

Amsterdam-based Seaarland Shipping<br />

Management is a commercial<br />

shipmanagement company and part of the<br />

August/September 2008 � TANKER<strong>Operator</strong> 13


INDUSTRY - FOCUS ON GERMANY<br />

Zacchello Group, which also includes Venicebased<br />

Motia Compagnia di Navigazione, as<br />

one of the shipowning arms and the technical<br />

management arm for the group's fleet.<br />

The group controls a fleet of 25 modern<br />

product and Aframax tankers with 15<br />

newbuildings to come, plus three Panamax<br />

bulkers with another seven Panamaxes and<br />

minicapes to come.<br />

At the end of its newbuilding programme,<br />

the Zacchello Group will control about 85<br />

ships, including a fleet of 30 medium to longterm<br />

timechartered ships. In addition, the<br />

group has a 50% ownership of 10 Naplesbased<br />

SynerGas Ethylene/LPG carriers and<br />

has offices in Venice, Naples, Amsterdam,<br />

Singapore and Hamburg.<br />

TB Marine's Steffen Thate told<br />

TANKER<strong>Operator</strong> that initially, the joint<br />

venture was set up to focus on newbuilding<br />

14<br />

Zacchello Group Profile<br />

Zacchello's shipping interests<br />

originated in 1948 when Antonio<br />

Zacchello and some partners<br />

purchased a 10,700 dwt 'Liberty'<br />

ship - Rialto.<br />

He subsequently bought his partners out and<br />

continued to build his shipping empire on<br />

his own.<br />

Today, this consists of Seaarland Shipping<br />

Management BV (Amsterdam), Motia<br />

Compagnia di Navigazione SpA (Venice),<br />

Seaarland Shipmanagement (Hamburg)<br />

GmbH & Co KG, Seaarland Management<br />

Services (Singapore) Pte Ltd, Seaarland<br />

Management Services Pvt (India) and<br />

Seaarland Management Services (Geneva)<br />

SA.<br />

Basically, the companies' operations are<br />

split as follows:<br />

� Seaarland Shipping Management<br />

(Amsterdam) acts as commercial<br />

manager of the ships owned by the<br />

group's Dutch companies and for the<br />

third party owned vessels.<br />

� Seaarland Management Services<br />

(Singapore) is responsible for the day-today<br />

operations east of Suez. The office is<br />

growing as Zacchello puts more<br />

emphasis on the developing Persian<br />

Gulf/Asian markets.<br />

� Motia carries out commercial and<br />

technical management for its owned<br />

vessels and is responsible for the<br />

technical management of the vessels<br />

owned by the Dutch-based companies, as<br />

well as third party owned vessels.<br />

� Seaarland Management Services Pvt is<br />

responsible for the group's Indian<br />

seagoing crew requirements.<br />

� Seaarland Shipmanagement (Hamburg) is<br />

jointly owned with TB Marine-Hamburg<br />

and manages the co-owned vessels with<br />

German investors and provides a gateway<br />

to the major German market.<br />

� Seaarland Management Services<br />

(Geneva) is responsible for advisory and<br />

the execution of FFAs on behalf of the<br />

group and its clients.<br />

Seaarland Hamburg will handle an<br />

additional 24 product/chemical tankers in<br />

the range 16,500 dwt to 19,000 dwt, which<br />

together with four out of eight car carriers,<br />

have been financed by German investors.<br />

Venice-based Motia has 12 vessels under<br />

full management and expects to take<br />

delivery of another four newbuildings.<br />

Motia also operates four ships on<br />

timecharter.<br />

Technical management of the whole<br />

Zacchello group is handled by Motia and<br />

Seaarland Hamburg.<br />

As at June of this year, the total number<br />

of vessels controlled by Seaarland and<br />

Motia was 116. These include 62 currently<br />

in operation, 37 newbuildings and 17<br />

timechartered vessels yet to be delivered.<br />

Zacchello has placed some of the vessels<br />

in pools, such as Suezmax International,<br />

Aframax International, Handytankers and<br />

Baumarine. Other vessels are timechartered<br />

projects. During the past three years, TB<br />

Marine has been responsible for 42<br />

newbuildings and four secondhand vessels and<br />

has built up a pool of private investors within<br />

the KG scheme.<br />

The loan facilities have been arranged<br />

through the world's largest ship financing<br />

bank HSH Nordbank and also with Deutsche<br />

Bank, Hamburg and Norddeutsche<br />

Landesbank, based in Hannover.<br />

"We are now benefiting from the Seaarland<br />

handysize, Aframax, LR1 and Suezmax tanker<br />

pools, which in turn benefit from the German<br />

market, including the KG funding schemes,"<br />

Thate said.<br />

TB Marine/Seaarland Shipmanagement<br />

gained its ISM certificate from ABS in October<br />

2007 and now employs around 25 persons in<br />

Hamburg. Thate explained that Seaarland has a<br />

global network of crewing outlets.<br />

Antonio Zacchello.<br />

to operators such as Trafigura, STX Pan<br />

Ocean, TotalFinaElf (Italia), ST Shipping,<br />

ENI, Cargill and Armada. The group also<br />

operates on the spot market.<br />

The group also holds a 50% stake in<br />

Synergas SrL through a Dutch concern<br />

called Julia Finance, which was set up<br />

specifically for this purpose. The other 50%<br />

is owned by Ca.Fi.Ma, the holding company<br />

of the Cafiero Mattioli Group.<br />

Synergas was formed in November 2005<br />

to purchase the fleet of 10 LPG carriers of<br />

4,000 cu m to 9,000 cu m capacity from<br />

Navigazione Montanari, which was duly<br />

completed a month later. �<br />

As for the future, "By about 2011, we will<br />

have around 35 chemical/product tankers<br />

under full management owned by Zacchello<br />

and his partners," Thate said.<br />

It is Thate's intention to put around three to<br />

five vessels under the German flag while<br />

another 10 are flying the Italian flag under<br />

Motia's control. Other major flag states have<br />

also set up shop in Hamburg, including Liberia<br />

and the Marshall Islands, which employ<br />

German speaking auditors and surveyors.<br />

Oil majors are being focused on by the<br />

group as there is more external control being<br />

exercised today through various schemes,<br />

most notably TMSA.<br />

Frequent safety, security and other meetings<br />

are held between TB Marine, Seaarland and<br />

the pool/charterers. Thate said that the<br />

company was also co-operating very closely<br />

with ABS.<br />

TANKER<strong>Operator</strong> � August/September 2008


As for AMC, this concern offers third<br />

party technical newbuilding supervision and<br />

only puts its own people in the shipyards,<br />

rather than relying on third party<br />

newbuilding surveyors. For example, ACM<br />

newbuilding standby chief engineers will<br />

move into the office as engineer<br />

superintendents, once the newbuilding<br />

supervision period has ended.<br />

Seaarland Shipmanagement only employs<br />

ex seafarers and a cadet scheme is run in a<br />

joint venture with ASP Ship Management<br />

Scandinavia based in Mariehamn, Finland.<br />

KG expertise<br />

The German KG (Kommanditgesellschaft)<br />

equity syndicating system is perhaps not<br />

suffering as badly as other forms of raising<br />

finance in today's economic gloom and doom.<br />

Whereas some would be investors in<br />

shipping equity will still rely on the debt<br />

financing to purchase shares in vessels, other<br />

private shareholders do not.<br />

KGs were originally designed to help the<br />

German shipyards and shipping industry. A<br />

general partner (GmbH) is usually required.<br />

Individuals participate with fixed equity<br />

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To qualify for syndication, vessels must in<br />

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technical management of the vessels must be<br />

undertaken in Germany and the vessels must<br />

be registered in Germany, although an<br />

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Once the domain of smaller container and<br />

multipurpose vessels, all types are now being<br />

considered providing they have a long term<br />

timecharter attached, but not a bareboat, or<br />

demise charter contract.<br />

The change in the German tonnage tax of<br />

1st January 2007, bought no substantial<br />

difference to equity finance deals. Basically,<br />

the tax is based on the gt of a vessel and not<br />

the profit/loss performance (see page 18).<br />

However, Tobias Koenig founder of Koenig<br />

& Cie GmbH said that the syndication<br />

market, which is most important in Germany<br />

for larger projects, is almost totally disrupted<br />

by the current financial crisis. "The KG funds<br />

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Koenig said that despite this, the company<br />

had managed to realise new products. He<br />

criticised HSH Nordbank, the world's largest<br />

ship financier, saying that the default rate in<br />

the vessel mortgage loan sector is zero per<br />

cent. "Their caution with the granting of<br />

loans does not always seem reasonable to<br />

us," he said.<br />

Koenig was founded in 1999 and in 2006<br />

established Marenave Schiffahrts with HSH<br />

Nordbank. It is claimed to be the first German<br />

shipping trust set up legally as a public listed<br />

company. The objective was to provide<br />

institutional investors with the possibility of<br />

investing in the shipping market on a long<br />

term basis, creating a new asset class for<br />

better investment portfolio diversification.<br />

He said the most KG investors were<br />

experienced and many of them invest 'anticyclically'<br />

and "...were in it for the long run."<br />

Due to their cyclical nature, the volatile<br />

markets have led to diversification being<br />

highly valued. For example, besides shipping,<br />

Koenig is now established in real estate,<br />

private equity, renewable energy, secondary<br />

market of UK life insurance policies and<br />

infrastructure.<br />

Our communication product scope<br />

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August/September 2008 � TANKER<strong>Operator</strong> 15


INDUSTRY - FOCUS ON GERMANY<br />

A joint venture - Scorship - was also<br />

formed with Monaco-based Scorpio, which is<br />

involved in the running of two tanker pools, in<br />

which Koenig is participating. "To have a<br />

joint venture, such as Scorship, seemed to be<br />

logical as Scorpio was seeking access to the<br />

German market and we had been looking for<br />

a partner to invest in Panamax tankers,"<br />

Koenig explained.<br />

"Therefore, our Panamax and handymax<br />

product tankers had been managed by Scorpio<br />

Ship Management, Monaco. Later on Scorship<br />

<strong>Tanker</strong>s GmbH was formed by the two<br />

partners, which has now taken up the<br />

management of these vessels," he said.<br />

"There is a lot of interest outside Germany<br />

to find a local partner. And this is the reason<br />

others have formed partnerships and will<br />

probably continue to do so in the future," he<br />

added.<br />

Last June, Scorship <strong>Tanker</strong>s GmbH<br />

christened two further double hull tankers at<br />

New Times Shipbuilding, located on the<br />

Yangtze River.<br />

The tankers were the last two in a series of<br />

six sister ships. They were christened King<br />

Daniel and King Douglas. The latter was<br />

handed over to the charterer ST Shipping and<br />

Transport, Singapore and King Daniel will be<br />

delivered in September. The six double hull<br />

crude oil/product tankers were ordered in<br />

2005 for delivery in 2007 and 2008. They<br />

were Panamax class LR1 product tankers.<br />

The last two both make up the Product<br />

<strong>Tanker</strong> Fund IV, which had been open to<br />

16<br />

Koenig & Cie investors since the end of<br />

March 2008. The fund concept is a<br />

combination of fixed charter and pool<br />

earnings, with one vessel benefiting from the<br />

stability of the former and the other vessel<br />

from the variable earnings of the latter (this<br />

vessel will be deployed in a leading<br />

tanker pool).<br />

Koenig uses what it perceives as the best<br />

partners available to technically manage the<br />

vessels, for example, Columbia<br />

Shipmanagement (CSM), Thien & Heyenga<br />

and V Ships. For example, all of the Marenave<br />

vessels are managed by CSM Hamburg.<br />

The issuing house invests in containerships,<br />

bulk carriers and product tankers. But thus far<br />

the different ship types have not been included<br />

in one fund.<br />

For tankers, Koenig thought that initially,<br />

this had proved more difficult. However,<br />

today Koenig & Cie is a successful tanker<br />

company with…."an unparalleled network in<br />

the tanker markets. We offer investment<br />

opportunities that are hard to match, which is<br />

giving us a competitive advantage over other<br />

German issuing houses," Koenig concluded.<br />

In another move, Jens Mahnke recently<br />

joined Koenig & Cie GmbH as a managing<br />

partner to take on responsibility for all<br />

shipping matters.<br />

Prior to this, Mahnke worked with the<br />

Nordcapital Group, where he was managing<br />

partner for shipping project development for<br />

the last six years.<br />

From 1st June, the shareholder structure of<br />

Koenig & Cie GmbH was Tobias Koenig<br />

holding 86%, Klaus Fickert and Jörn Meyer<br />

each holding 5% and Johannes Bitter-<br />

Suermann and Jens Mahnke each holding 2%.<br />

Since TANKER<strong>Operator</strong>'s visit, Scorpio<br />

<strong>Tanker</strong>s GmbH & Co KG and Scorpio<br />

Shipping Company, Monaco have said that<br />

they are set to broaden the business scope and<br />

as a result have been renamed Scorship<br />

Navigation. As part of the expansion plan, the<br />

company will soon manage drybulk carriers as<br />

well as tankers. Jens Mahnke was named ceo<br />

on 1st August.<br />

Essberger expands<br />

John T Essberger is expanding its tanker<br />

fleet by ordering a series of newbuildings<br />

from China and Turkey. The company has also<br />

extended its shipmanagement portfolio by<br />

winning a management contract for a series of<br />

Swedish product tankers newbuildings.<br />

The Chinese order involves two 8,500 dwt<br />

Ice Class 1A chemical tankers fitted with 16<br />

stainless steel tanks, plus another two options.<br />

The first vessel will be delivered at the end of<br />

2010 and the second in February 2011.<br />

Essberger chose Dingheng (Jiangsu)<br />

Shipbuilding, which Captain Stefan Buelow,<br />

managing director John T. Essberger Ship<br />

Management described to TANKER<strong>Operator</strong><br />

as a new yard specialising in LPG and<br />

chemical tankers. The vessels will be built in<br />

co-operation with the Dutch-based Volharding<br />

Shipyards and were designed by a Norwegian<br />

concern. They will be powered by MAN<br />

The 5,771 dwt chemical tanker<br />

Georg Essberger seen in the<br />

Kiel Canal.<br />

TANKER<strong>Operator</strong> � August/September 2008


INDUSTRY - FOCUS ON GERMANY<br />

medium speed common rail engines from the manufacturer's<br />

Augsburg works.<br />

Earlier, Essberger had selected the new Turkish shipyard of Eregli to<br />

construct an 8,400 dwt and three 5,300 dwt vessels. The larger vessel<br />

is an IMO II type 124 m long, oil and chemical tanker fitted with<br />

MarineLine coated tanks. Construction began on 26th November last<br />

year under the supervision of Essberger and Bureau Veritas and the<br />

vessel is due to be delivered in January 2009.<br />

The three Ice Class 1A 5,300 dwt tankers will be fitted with<br />

stainless steel cargo tanks and all will feature MAN prime movers.<br />

They are due for delivery in September, December 2009 and April<br />

2010 respectively.<br />

As for the management contracts, these were for Svithoid <strong>Tanker</strong>s'<br />

three 3,400 dwt and two 4,500 dwt tankers. Essberger inspectors<br />

travelled to an Estonian shipyard in Tallinn to take over the first vessel<br />

for Svithoid. One 3,400 dwt tanker - Vedrey Thor - was chartered to<br />

Fisher Everard, while the larger units will operate for Herning under a<br />

long term charter.<br />

Buelow explained that Essberger's philosophy was to continue to<br />

operate specialist tankers of up to 10,000 dwt in partnership with the<br />

oil and chemical majors on a mixture of timecharter and spot business<br />

basis. The vessels normally operate in northern Europe, Baltic and<br />

Mediterranean/Black Sea regions.<br />

In 2004, Essberger bought Dutch chemical tanker operator Broere<br />

from the Vopak group and formed the Broere/Essberger chemical<br />

tanker pool. In April of this year, the operation was brought under the<br />

banner of Essberger <strong>Tanker</strong>s. The new vessels and all Essberger<br />

vessels will be gradually renamed taking the Essberger suffix.<br />

At the beginning of this year, Hugo Finlay was recruited to run<br />

Essberger <strong>Tanker</strong>s as managing director. He has had more than 40<br />

years' experience in the tanker business having been employed at<br />

senior level by Stolt Nielsen and Jo <strong>Tanker</strong>s among others.<br />

At present, the fleet flies the Dutch flag (Broere vessels), German<br />

and Madeira flags - the latter as a European flag. As for seafarer<br />

training, Essberger uses various establishments in Poland, China, the<br />

Philippines and in-house seminars are regularly held. On board<br />

training will be continued, Buelow said. The company employs<br />

European masters on its tankers, mainly from Holland, Germany,<br />

Poland and the Baltic States.<br />

The seafarers are employed on a two month on, two month off<br />

rotation, which helps to ensure a good retention rate, Buelow believed.<br />

Being a family owned company, it was easier to bring the seafarers<br />

into a family type working atmosphere, he thought.<br />

In Europe, Essberger has its own crewing agency in Gdynia, while<br />

in Singapore, the company owns the crewing agency -Transocean Ship<br />

Management and has a partnership in a Manila-based training centre,<br />

which is equipped with modern simulators, including bridges. These<br />

can be attached to engine control rooms and a small engine. The Asian<br />

facilities are mainly used for the bulk and cement carriers managed by<br />

Essberger, as well as for ratings on tankers (Filipinos).<br />

Essberger has set up a safety and vetting department in Hamburg<br />

and Buelow said that he was "quite happy" with the TMSA audits.<br />

Similar to the vessels, Essberger has bought the shipmanagement<br />

activities closer to home by dispensing with the old shipmanagement<br />

company Transocean to better reflect the Essberger brand.<br />

Buelow explained that the shipmanagement arm will only look at<br />

third party management business for special projects, such as<br />

newbuildings. It was not Essberger's intention to become a fully<br />

fledged third party shipmanagement concern.<br />

He is an active member of BIMCO, IPTA, the VDR and sits on the<br />

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INDUSTRY - FOCUS ON GERMANY<br />

technical advisory board of Germanischer<br />

Lloyd.<br />

Explaining this involvement, he said; "It is<br />

vital to be in the front line with all the rules<br />

coming up. We have to join together to<br />

present a good image and have to be<br />

proactive. We cannot just lean back and forget<br />

about what is happening. Everybody has to<br />

participate. If something comes up, don't fight<br />

it, but discuss it, otherwise we will loose<br />

credibility," he added.<br />

To ensure adequate repair and maintenance is<br />

carried out, Essberger has a repair shop in<br />

Dordrecht, Holland, which came with the Broere<br />

buyout. The company also uses the Hamburg<br />

shipyard Norderwerft among others for its tanker<br />

fleet. Buelow said that he did not believe in<br />

outsourcing too many activities, but rather keep<br />

them in-house to better monitor costs.<br />

18<br />

GTS opts for Lindenau tankers<br />

Another major German tanker player is<br />

Bremen-based German <strong>Tanker</strong> Shipping<br />

(GTS), which now controls 12 product<br />

tankers averaging 3.5 years old with one<br />

newbuilding still to come.<br />

Eight of the earlier product tankers are of<br />

the Kiel-based Lindenau 32,000 dwt class,<br />

while the newer four are of 40,600 dwt.<br />

Another vessel due for delivery in March of<br />

next year will be slightly larger at 43,000<br />

dwt, but still built to the Lindenau design.<br />

All the vessels were built by Lindenau<br />

Shipyard. Ten are in the KG system while the<br />

other two are wholly-financed by the<br />

company. All the activities connected with<br />

the ships are handled in-house by just<br />

18 people.<br />

The vessels fly the German flag and are<br />

German tonnage tax explained<br />

Introduced in 1999, the German<br />

tonnage tax scheme has been<br />

by and large welcomed by the<br />

German shipping community.<br />

So much so, that moves are afoot to reach<br />

the target of 500 vessels under the German<br />

flag by the end of this year, otherwise it<br />

could be scrapped or amended, according to<br />

the German authorities.<br />

If the target is reached then the tonnage<br />

tax stays in place for the foreseeable<br />

future, and all the signs are that this will<br />

happen as the German shipowners<br />

interviewed by TANKER<strong>Operator</strong> were<br />

considering putting at least some of their<br />

vessels under German flag.<br />

Basically, the scheme allows companies<br />

to elect to have their taxable profits from<br />

shipping activities determined at fixed rates<br />

with reference to their ship sizes for 10<br />

years at a time, hence the call for more<br />

tonnage by the beginning of next year to<br />

start the next decade of fixed rates.<br />

Graduated Tariff<br />

Up to 1,000 nt = Eur0.92 per 100 nt<br />

per day<br />

1,000 - 10,000 nt = Eur0.69 per 100 nt<br />

per day<br />

10,000 - 25,000 nt = Eur0.46 per nt per<br />

day<br />

More than 25,000 nt = Eur0.23 per nt per<br />

day<br />

As an example given by the Hamburg<br />

Metropolitan Region, a graduated tariff is<br />

imposed on the net tonnes, which is then<br />

One of the Lindenau class<br />

32,000 dwt product tankers,<br />

managed by German <strong>Tanker</strong><br />

Shipping.<br />

classed by GL. Managing partner Frank<br />

Jungmann described the flag as "of very<br />

good quality", but said the process of<br />

registration could do with improvement as<br />

at present several different authorities<br />

become involved.<br />

"We need a central department in Germany<br />

for registration and a simple, efficient<br />

administration," he said. Other German<br />

companies spoken with by TANKER<strong>Operator</strong><br />

voiced the same opinion.<br />

Being under the German flag, all GTS'<br />

officers are German, while the ratings are<br />

from the Philippines. Jungmann agreed<br />

with other German owners requiring<br />

German officers that for the future, the pot<br />

was empty.<br />

GTS' vessels normally trade in the spot<br />

market, however, there a few charters<br />

multiplied by the number of days a vessel<br />

is in operation.<br />

In the case of a 40,000 nt vessel, the<br />

calculation is based on an assumed profit<br />

of Eur174.80 per day. For 365 days of<br />

operation, this is calculated at Eur63,802,<br />

on the basis of which taxes will be<br />

charged independently of the actual annual<br />

profit.<br />

Assuming the equity capital totals<br />

Eur21.6 mill, the calculated profit is 0.3%<br />

of the equity capital per annum, which is<br />

claimed to be of minor relevance. In<br />

accordance with the current Income Tax<br />

Act, the amount - assuming that the<br />

economic development of the vessel<br />

operations will be positive - indicates a<br />

largely tax free capital gain. �<br />

TANKER<strong>Operator</strong> � August/September 2008


GERMAN TANKER SHIPPING<br />

German <strong>Tanker</strong> Shipping GmbH & Co. KG<br />

Hans-Böckler-Str. 50<br />

28217 Bremen<br />

Phone +49 421 387638<br />

Fax +49 421 3876390<br />

e-mail info@german-tanker.de


INDUSTRY - FOCUS ON GERMANY<br />

concluded on coa terms. The company was<br />

formed in 1998 by former Carl Buettner<br />

executives. It originally owned seven vessels<br />

up to about 23,000 dwt, but has since<br />

concentrated on the larger size ranges,<br />

leaving Buettner to compete in the smaller<br />

market sector. The six 24,000 dwt tankers<br />

built in Croatia are today Buettner's<br />

largest vessels.<br />

Jungmann described the 40,000 dwt to<br />

43,000 dwt size as being in the middle of the<br />

South Korean designed 37,000 dwt and<br />

47,000 dwt types with good draught<br />

capabilities of about 11 m on maximum dwt<br />

cargo capacity (dwcc).<br />

The Lindenau-built vessels are fitted with<br />

MAN Diesel 4-stroke 8-cylinder medium<br />

speed diesel engines from the manufacturer's<br />

Augsburg works connected to a CP propeller<br />

through a reduction gear. Becker rudders have<br />

also been fitted on the larger vessels for extra<br />

manoeuvrability.<br />

Being fitted with the same engines results in<br />

continuity of spares enabling the use of the<br />

same maintenance and other systems used<br />

across the entire fleet.<br />

20<br />

Classed with GL, the vessels are Ice<br />

Class E3, or E2, equivalent to<br />

Finnish/Swedish Ice Class 1A, or 2A.<br />

Eight are 1A and the other four have the<br />

E2 (2A) notation.<br />

Today GTS operates with six partners and<br />

two managing partners. Jungmann explained<br />

that the company's policy is to operate the<br />

vessels in Europe or transatlantic and sell<br />

them when they reach their second or third<br />

surveys (10-15 years old). "They will still<br />

be in excellent condition," he said.<br />

When operating in Europe, the average<br />

voyage time is only around 4.5 days,<br />

including loading and discharge operations.<br />

The normal economic service speed is 13.5<br />

knots, although the vessels can steam at<br />

15.5 knots if needed. They each carry 18<br />

crew on board.<br />

As for the pumping systems, the smaller<br />

vessels have been fitted with Framo<br />

Deepwell hydraulic pump systems, while<br />

the larger vessels have Hamworthy<br />

Svanehoj electro-pump systems fitted. Each<br />

tank is coated and the vessels are fitted with<br />

cargo heating systems.<br />

Offen up and running<br />

The first four of CP Offen's eight Hyundai<br />

Mipo 37,000 dwt MRs have recently joined<br />

Broström's fleet.<br />

Ordered and technically managed by<br />

recently formed Offen subsidiary CP Offen<br />

Tankschiffreederei, the eight will be<br />

commercially managed by Bröstrom following<br />

the signing of a long term partnership<br />

agreement with the Hamburg-based company<br />

last year.<br />

Before the first four were delivered,<br />

Broström was already operating eight 37,000<br />

dwt MRs in the European<br />

market transporting refined petroleum<br />

oil products.<br />

All the new vessels were scheduled for<br />

delivery by the end of this year from South<br />

Korea. The first four picked up a cargo of<br />

vegetable oil from Asia to reposition to<br />

Europe. They will all fly the UK flag.<br />

*Since this update, it has been announced<br />

that Broström is to be taken over by Maersk.<br />

Where this leaves CP Offen Tankschiffreederei’s<br />

joint venture agreement is thus far unknown<br />

(see page 2). TO<br />

TANKER<strong>Operator</strong> � August/September 2008


INDUSTRY - FOCUS ON GERMANY<br />

GL academies prove<br />

successful<br />

Last year, Germanischer Lloyd (GL) held 276 seminars worldwide,<br />

attracting 4,086 participants, compared with 220 in 2006, which pulled in 3,950 people.<br />

GL has developed what it calls a<br />

'Modular System for Further<br />

Education in Shipping', which is<br />

split into 11 distinct subjects.<br />

Both public and private seminars are held, and<br />

tailor-made in-house tutorials are also offered.<br />

GL Academy's Susanne Schreeck told<br />

TANKER<strong>Operator</strong> that it was not the intention<br />

to compete with seafarer training schools or<br />

universities, but rather join forces if possible.<br />

Seminars and tutorials are held worldwide<br />

in English, although local languages can also<br />

be used, for example to train surveyors in<br />

overseas locations.<br />

Most maritime subjects are covered, from<br />

basic shipping knowledge to high technology,<br />

including a series aimed at 'training the<br />

trainers'.<br />

The UAE and India are areas of obvious<br />

potential, GL said. An academy will be<br />

opened in Dubai this October, which will be<br />

used by the other Gulf States and the class<br />

society is also in talks with Dubai Maritime<br />

City about a co-operative partnership. Another<br />

partnership is also in place with the Indian<br />

Institute of Marine Engineers based in<br />

Mumbai.<br />

Other co-operative training ventures are<br />

“<br />

based in countries such as Vietnam and earlier<br />

this year, GL recently opened GL Academy<br />

Hellas, which is run from Piraeus. The class<br />

society is also one of 12 partners in the soon<br />

to be opened MTC Maritime Training Center<br />

Hamburg (see page 23).<br />

GL has found that the more popular<br />

seminars are the ones that cover general<br />

topics, such as basic shipping and technology,<br />

for example for bank staff involved in the<br />

maritime sector. Some of the courses will<br />

include exercises involving individual and<br />

group work and interactive sessions. "We do<br />

not only show overheads," Schreeck<br />

explained.<br />

One of the more specific training courses<br />

covers the 'Certified Coating Inspector'. This<br />

course will be held between 16-22 November<br />

and is already fully booked with 15<br />

participants. The seminar has been put<br />

together by GL in co-operation with<br />

Muehlhan, which specialises in marine surface<br />

protection.<br />

As for GL's class portfolio, over 6,300<br />

vessels totalling 70 mill gt are now under<br />

regular technical supervision of GL.<br />

In the space of 12 months, GL's fleet has<br />

grown by 10 mill gt. "This is a milestone in<br />

the history of the classification society," said<br />

Dr Hermann Klein, member of GL's executive<br />

board, at the classification society's Hellas<br />

committee meeting in Piraeus at the beginning<br />

of June.<br />

"Based on the incoming orders we expect a<br />

sustained growth rate again," he said.<br />

To cope with the extra tonnage, GL has<br />

increased its staff level particularly in East<br />

Asia. In 2006 alone, a total of 312 employees<br />

were hired worldwide. Since the beginning of<br />

this year more than 300 international positions<br />

were filled. Today the workforce totals over<br />

4,100 worldwide.<br />

In another move, GL has been authorised to<br />

participate in the US Coast Guard's (USCG)<br />

alternate compliance program (ACP).<br />

As a result, US shipowners can select GL as<br />

their recognised organisation, acting on behalf<br />

of USCG. GL is one of only three non-US<br />

classification societies to have a USCG ACP<br />

authorisation.<br />

ACP is a voluntary alternate process for a<br />

US registered vessel to obtain a USCG<br />

certificate of inspection by complying with the<br />

standards of a delegated classification society,<br />

including its ACP Supplement and<br />

International Conventions.<br />

In the space of 12 months, GL’s fleet has grown<br />

by 10 mill gt. “This is a milestone in the history<br />

of the classification society...based on the incoming orders<br />

we expect a sustained growth rate again ”<br />

- Dr Hermann Klein, member, Germanischer Lloyd Executive Board<br />

August/September 2008 � TANKER<strong>Operator</strong> 21<br />

TO<br />


INDUSTRY - FOCUS ON GERMANY<br />

DNV claims second spot in German vessels classed<br />

On 1st June, 2005, DNV moved its<br />

European headquarters from<br />

London to Hamburg. The German<br />

offices cover northern Europe and<br />

Africa.<br />

At the time, DNV said that Hamburg was an<br />

increasingly important international maritime<br />

centre for shipowners, management<br />

companies, financial institutions as well as<br />

shipyards, reflected by the steadily growing<br />

number of vessels managed or owned by<br />

German companies, in particular<br />

containerships.<br />

"The decision to move the regional office to<br />

Hamburg is underlining our strategy to<br />

become the number-one class alternative in<br />

Germany and shall give a clear signal to the<br />

market that we see increasing potential for<br />

growth of DNV services. At the same time,<br />

we recognise the ongoing importance of the<br />

UK maritime market by continuing our good<br />

work in the London market," said DNV<br />

Maritime coo Tor Svensen, speaking at the<br />

time of the move.<br />

Regional manager Joerg Beiler and country<br />

manager Joerg Langkabel said during<br />

TANKER<strong>Operator</strong>'s recent visit to Hamburg<br />

that competition among class societies will<br />

increase the focus on the service level and will<br />

trigger the introduction of new services for the<br />

market. However, competition would not lead<br />

to reduced focus on quality.<br />

DNV has opened its own dedicated academy in Hamburg.<br />

22<br />

Last year, DNV moved into larger premises<br />

located in the centre of Hamburg, close to the<br />

flag administration. Langkabel explained that<br />

the German flag authorities have now<br />

extended the scope to carry out statutory<br />

surveys etc on German flag ships by other<br />

class societies.<br />

DNV now claims the No 2 spot in terms of<br />

German-controlled tonnage entered behind<br />

GL. Although the high number of<br />

containerships controlled by German interests<br />

under GL class is attracting much of the other<br />

class society interest, DNV claimed more than<br />

38% of the tankers in German management in<br />

terms of gt. DNV also boasted 1.3 mill gt of<br />

German newbuildings by the middle of this<br />

year, compared with 1.85 mill gt of<br />

newbuildings entered for the whole of 2007.<br />

The class society has appointed a local<br />

customer service manager whose job it is to<br />

visit the owners and listen to their needs,<br />

Langkabel explained. Thus, the concept of a<br />

Hamburg service centre had been expanded.<br />

For example, a tailor-made service is offered<br />

on fuel savings - a very pertinent example<br />

today when the cost of IFO 380 cSt had hit<br />

the $700 per tonne mark recently. Another<br />

example of the service concept is that advice<br />

can be given on TMSA and Safety<br />

Management Systems.<br />

At the beginning of this year, DNV<br />

employed 70 people in Hamburg and the<br />

satellite offices around Germany. By the<br />

end of 2008, this number will have risen to<br />

90. An office has also been opened in<br />

Bremen.<br />

DNV has a huge database containing what<br />

it calls 'knowledge management'. For<br />

example, some German owners and managers<br />

need to know about potential propeller<br />

damage in routes through ice. The information<br />

held on propeller damage could help the<br />

owners and managers decide upon the need to<br />

carry a spare propeller.<br />

Certification of marine equipment and subsuppliers<br />

is another strong area within<br />

Germany as many suppliers, such as MAN<br />

and MTU among others, have full orderbooks<br />

due to the massive vessel ordering spree<br />

during the past few years.<br />

Several vessel types, including<br />

containerships, cruiseships and ro-ros are<br />

being built in German shipyards to DNV<br />

class. Also included are four LPG carriers at<br />

Meyer Werft for Harpain Shipping. German<br />

ports are among the busiest in Europe and the<br />

repair yards are experiencing better times of<br />

late, creating more work for class surveyors<br />

in general.<br />

Similar to GL, DNV has set up an academy<br />

in Hamburg, which takes up one floor of the<br />

six-storey building. Three rooms are available<br />

in an open type landscape, the largest of<br />

which can accommodate up to 60 persons.<br />

Both seminars and courses are held<br />

focusing on operations and technical topics,<br />

including technical courses aimed at nontechnical<br />

personnel, which are proving<br />

popular.<br />

DNV has been holding seminars and<br />

courses in Germany since 1995 and welcomed<br />

more than 1,200 participants last year, which<br />

encouraged the society to open its own<br />

dedicated facility.<br />

Seminars and courses are split into<br />

categories, such as ship types, which<br />

include containerships, oil and product<br />

tanker, chemical tanker and gas tanker<br />

updates plus design, equipment and cargo<br />

operations.<br />

Another series covers maritime technology<br />

in all its forms from hull inspection to<br />

managing complex electronic systems<br />

integration. Four courses are offered on<br />

maritime rules and classification issues and a<br />

larger selection of courses cover management<br />

systems. General shipping business is also<br />

covered aimed at the office newcomer.<br />

All the listed seminars and courses are held<br />

in English.<br />

TO<br />

TANKER<strong>Operator</strong> � August/September 2008


Large training centre nears completion<br />

One initiative underway in which<br />

GL is a stakeholder is the<br />

Maritime Training Center (MTC)<br />

Hamburg, which is due to open<br />

its doors next February.<br />

Hamburg has been without a major training<br />

facility since many nautical colleges closed<br />

down during the shipping downturn<br />

experienced during the 1980s, which left a<br />

huge gap in training. Hamburg also lost the<br />

'SUSAN' simulator training facility to Leer,<br />

which is now home to a large<br />

shipmanagement fraternity.<br />

MTC will be located at Harburg, a suburb<br />

of Hamburg, built in an old dock area.<br />

Illustrating Hamburg's maritime cluster<br />

mentality, MTC is a joint venture between<br />

shipping companies Rickmers Reederei, Orion<br />

Bulkers and Marlow Navigation who acts as a<br />

crew manager.<br />

Apart from GL, other stakeholders include<br />

MAN Diesel, the River Elbe, Port of Hamburg<br />

and Kiel Canal Pilots' Associations, port and<br />

logistics training concern ma-co maritimes<br />

competenzcentrum (formerly known as FZH),<br />

and private investors. SAM Electronics is<br />

acting as a co-ordinating partner while<br />

Bremen-based Rheinmetall Defence<br />

Electronics will supply the shiphandling,<br />

radar/ECDIS, GMDSS, liquid cargo handling<br />

and ships engine simulators.<br />

Furthermore, hands on training will be<br />

provided for the operation and maintenance of<br />

marine diesel engines and their components<br />

through a MAN Diesel workshop. Previous<br />

FZH fire fighting and rescue boat courses will<br />

also be included.<br />

MTC managing director Heinz Kuhlmann<br />

explained that by integrating the pilot groups,<br />

ma-co specialists and the GL Academy, MTC<br />

will be able to offer quality and professional<br />

knowhow at the highest level in most<br />

disciplines.<br />

Kuhlmann said that marketing the centre<br />

would start in earnest this September when<br />

bookings will be taken. He also claimed that<br />

he already had verbal promises from some<br />

shipowners to use the facilities. All the<br />

training courses, seminars etc, plus the<br />

documentation will be in English to attract<br />

Marine Training Center - Hamburg<br />

www.mtc-simulation.com<br />

INDUSTRY - FOCUS ON GERMANY<br />

An impression of the full mission bridge<br />

simulator.<br />

international clients.<br />

Once MTC is fully operational, it will have<br />

a training capacity of 14,300 man hours,<br />

making it one of the largest training centres in<br />

Europe.<br />

The equipment and operation alone is costing<br />

Eur6.5 mill and the City of Hamburg is<br />

donating Eur900,000 towards the project. Apart<br />

from Harburg, another simulator centre is<br />

planned in Hamburg for a 2010 start up. TO<br />

MTC will open it’s doors beginning of 2009 in Hamburg and provides a wide range<br />

of maritime training courses for navigation, technical operations,<br />

maintenance, GMDSS, safety and tanker operations.<br />

For more information and course catalogue 2009 contact: info@mtc-simulation.de<br />

August/September 2008 � TANKER<strong>Operator</strong> 23


INDUSTRY - FOCUS ON GERMANY<br />

By providing tankers with predetermined<br />

breaking points in<br />

their double hull, Lindenau<br />

believes it can enhance tanker<br />

safety. While mandatory double hulls offer<br />

significantly better protection against the<br />

threat from a collision than single hull vessels,<br />

pollution may still occur if both the outer and<br />

inner hulls are punctured.<br />

If the inner tank shell was designed to<br />

partially disconnect from the supporting<br />

structure in a lateral collision, it would deform<br />

more easily, bulging inwards to produce a<br />

large dent at the point of impact, rather than<br />

rupturing. This would require an inner hull<br />

24<br />

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breaking point<br />

Kiel-based Lindenau Shipyard is further enhancing tanker safety<br />

by designing vessels with a pre-determined breaking point.*<br />

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importantly staying out of bad weather areas”...<br />

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MeteoConsult<br />

A MeteoGroup Company<br />

made from a highly ductile, extensible<br />

material. These ideas inspired the concept of a<br />

so called 'crumple zone' for tankers.<br />

To turn this idea into an actual project,<br />

Lindenau got in touch with Hamburg-Harburg<br />

Technical University (TUHH) and<br />

Germanischer Lloyd (GL) to arrange for a<br />

basic initial research programme.<br />

It was thought that an austenite with high<br />

ductile yield might prove suitable material<br />

for the inner tank shell. Under tensile<br />

loading, these kind of austenites resist<br />

failure for a much longer period than<br />

standard steel types. While shipbuilding<br />

steel has a ductile yield of between 16% and<br />

www.SPOS.eu<br />

22%, austenitic steel can be extended to 30%<br />

to 35% before failing.<br />

However, a tensile shell in itself will not<br />

suffice. To bulge inward across a large enough<br />

area, the shell must be allowed to separate<br />

from its supporting structure. To illustrate the<br />

problem, Lindenau's project head in charge of<br />

developing the design - Ingo Tautz - used an<br />

image of a balloon inflated inside a wire cage<br />

and glued to the bars.<br />

"Pushing the balloon downwards will cause<br />

it to burst. But if you don't glue it to the bars,<br />

it will be free to move so you can push it<br />

inwards to quite an extent before it will burst,"<br />

Tautz explained.<br />

TANKER<strong>Operator</strong> � August/September 2008


INDUSTRY - FOCUS ON GERMANY<br />

Predetermined breaking point. In a collision, the malleable inner hull of the tanker will bulge inwards without causing an oil spill.<br />

(Graphics – Lindenau)<br />

On any ship you will find the cage's<br />

equivalent. It is formed by longitudinal<br />

stringers and vertical frames. Stringers and<br />

frames make up the skeleton that supports the<br />

outer and inner hulls of the ship and which are<br />

spaced about 2 m apart. The critical question<br />

is how to enable the inner shell to separate<br />

from this supporting cage, thereby enlarging<br />

this space.<br />

As far as the longitudinal stringers are<br />

concerned, the solution is straightforward<br />

enough- the stringers are welded only to the<br />

outer hull and have no contract with the inner<br />

hull. A more complicated matter is the case of<br />

the vertical frames. A series of holes, known<br />

as perforated pre-determined breaking points,<br />

are made in the sections closest to the inner<br />

shell. In a collision, the frames are intended to<br />

rupture at these locations, thus releasing the<br />

inner shell. The larger number of breaking<br />

frames, the better.<br />

This design concept was first developed by<br />

Lindenau partner and former managing<br />

director Guenter Stehn, who estimated that<br />

frames may break over a length of 20 m along<br />

a ship's body, allowing the austenitic inner<br />

shell to bulge inwards by several metres<br />

without rupturing. To ensure that this works,<br />

tanks may not be fully loaded and must be<br />

fitted with burst plates designed to break on<br />

impact. The cargo then flows into a<br />

neighbouring tank or ballast tank.<br />

What made Stehn's approach appealing was<br />

its simplicity. The vessel's inner shell deforms<br />

without causing an oil spill. But how far can<br />

this be taken before the ship's structure<br />

becomes unstable? As it is, sailing in rough<br />

seas is a punishing experience for a tanker,<br />

exposing it to incessant assaults from different<br />

load combinations, a constant interplay of<br />

compressive and tensile stresses.<br />

This relentless strain is particularly<br />

aggressive around cut outs and holes where<br />

cracks may form. Perforated pre-determined<br />

breaking points are not exempt from this<br />

threat. The critical question is, how should the<br />

perforations be designed so the frames only<br />

fail in a collision as intended while<br />

safeguarding the structural integrity of the<br />

vessel during normal operations?<br />

In his dissertation completed under the<br />

supervision of TUHH's Professor Eike<br />

Lehmann, Tautz analysed the hidden pitfalls<br />

of calculation methods that simulate the<br />

planned failure of pre-determined breaking<br />

points. The ductile yield of austenitic steel,<br />

while known, does not help in determining the<br />

highly important parameter of time of failure<br />

when calculating collision simulations.<br />

Knowing the time of failure is critical. If a<br />

tank shell separation from the frames is too<br />

late, the striking vessel might penetrate it.<br />

No matter how many calculations are<br />

performed, there is no substitute for physical<br />

measurements and practical tests. To<br />

accommodate this, Lindenau has requested<br />

research funding from the German Federal<br />

Ministry of Economic Affairs. The research<br />

project aims at clarifying important aspects of<br />

operational and collision safety.<br />

Operational safety measurements have<br />

already begun on a ship section built<br />

according to the new design concept and<br />

installed on the 44,700 dwt product tanker<br />

Seychelles Patriot.<br />

Seychelles Patriot. One side<br />

section was built with integrated<br />

predetermined breaking points.<br />

(Photo – Lindenau)<br />

August/September 2008 � TANKER<strong>Operator</strong> 25


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INDUSTRY - FOCUS ON GERMANY<br />

Put to the test. A side section for Seychelles Patriot featuring<br />

perforations. (Photo – Lindenau)<br />

This 189 m long double hull tanker was delivered by the Kiel yard<br />

last February. A three-frame side section of this vessel was built<br />

according to Stehn's design, featuring perforated pre-determined<br />

breaking points. GL is conducting long term measurements on one of<br />

the frames to verify the results of the structural durability calculations<br />

performed thus far.<br />

These measurements were taken using strain gauges attached to the<br />

perforations. These strain gauges consist of plastic strips with etchedon<br />

copper leads. When the material expands, the copper's electrical<br />

resistance will change accordingly. The resistance readings are then<br />

converted into units of tensile force, providing a means to assess the<br />

static and dynamic stresses occurring around the measurement points.<br />

Three perforation holes have been fitted with six strain gauges each.<br />

"Measurements will continue around the clock for an entire year," said<br />

Peter Wania, GL's metrology engineer. "This should provide us with<br />

enough data to answer the question as to whether this design provides<br />

adequate structural durability."<br />

These measurements provide clarity regarding the operational safety<br />

of the design under normal operating loads. "What we cannot do with<br />

these measurements is verify what will happen in a case of collision,"<br />

Tautz conceded.<br />

Therefore, Lindenau will run a series of crash tests, some of which<br />

will involve a scale model of a ship's side, complete with predetermined<br />

breaking points, which will be rammed by a bow-like<br />

element. "We will not be able to substantiate the precise functional<br />

behaviour of our design until we complete the entire research project,"<br />

said Tautz. A three-year window has been assigned for the project.<br />

All parties involved are aware that the new concept will fail in a<br />

worse-case collision scenario, a high speed, right angle impact. "When<br />

a ship collides at a 90 deg angle at high speed, it will cut right through<br />

to the centre of the struck vessel. There is no way to prevent that," said<br />

Stehn. But ships generally heave to when a collision is imminent, so<br />

the impact occurs at an oblique angle. Five to six frames might break<br />

in the process, Stehn estimated, producing an inner-shell dent two to<br />

three metres deep.<br />

The concept of a crumpling zone for tankers may not be ready to be<br />

put into practice immediately. But conceivably, it will shape the way<br />

oil and chemical tankers will be built at Lindenau during the coming<br />

decades. Stehn himself was open to the idea that the patented design<br />

concept of perforated pre-determined breaking points may become an<br />

international requirement at some point in the future.<br />

*This article first appeared in GL’s magazine ‘nonstop’<br />

by whose kind permission this article was reproduced.<br />

TO<br />

TANKER<strong>Operator</strong> � August/September 2008


INDUSTRY - SHIPMANAGEMENT<br />

BSM comes of age<br />

With the ink barely dry on the regrouping programme undertaken by the Bernhard<br />

Schulte Shipmanagement Group (BSM), TANKER<strong>Operator</strong> spoke with ceo Andreas J<br />

Droussiotis about the coming together of the group’s diverse shipmanagement concerns.<br />

BSM is in the big league and currently<br />

manages a fleet of 648 vessels; 285<br />

fully managed and 363 crew<br />

managed and 44 confirmed until the<br />

end of 2008. Furthermore, the group employs over<br />

17,000 personnel on board and onshore.<br />

Droussiotis explained that the whole<br />

purpose of the merger was to protect the<br />

business and invest in a stronger future. "As<br />

with any unification, the systematisation of<br />

the group is taking time with close cooperation,<br />

and a lot of hard work.<br />

Organisations have used acquisitions to reach<br />

new markets and acquire new customers. We<br />

prefer to expand gradually, keeping all<br />

operations under control", he said.<br />

The decision to merge the various companies<br />

was taken by the group as a whole. The<br />

management teams of each concern considered<br />

this as the best solution for the future.<br />

"Merging a group of companies and diverse<br />

cultures under one banner is a challenge, in<br />

addition to a great opportunity. Situations like<br />

this are never easy to deal with. You suddenly<br />

recognise the need to put in place more<br />

effective standards and policies. In order to<br />

achieve this, effective leadership and<br />

teamwork have to be reached on all levels.<br />

"Both the challenge and the opportunity are<br />

there, and by unifying the group of companies,<br />

Bernhard Schulte Shipmanagement plans on<br />

representing just what the power of unity can<br />

Andreas Droussiotis<br />

28<br />

mean in the shipping industry. The result? Being<br />

better for the clients, for the employees and for<br />

the shareholders", Droussiotis said.<br />

Droussiotis explained that the company plans to<br />

manage costs within the integrated group to profit<br />

from opportunities in the shipping industry, while<br />

continuing to provide quality shipmanagement.<br />

"Ultimately, there will be savings; however, we<br />

expect the usage of concentrated power to yield<br />

positive results", he said.<br />

"BSM has a strong management team, with<br />

an established reputation for success. Working<br />

under one banner, the new structure will only<br />

reinforce our efforts to further develop the<br />

opportunities throughout our organisation," he<br />

said talking of the integration of senior<br />

management. New roles have been assumed by<br />

members of the management team, and new<br />

roles were also being made available to cope<br />

with the expansion of the group and the shift in<br />

management roles. "Everyone has taken up<br />

their new roles and they will work fully for the<br />

success of the group", he explained.<br />

All ship management units, which were<br />

previously under the control of the separate<br />

main companies will become fully fledged and<br />

provide all the services to clients directly. Due<br />

to the fleet separation, which was organised for<br />

various reasons, they will report to the group<br />

fleet directors for the different vessels who will<br />

be responsible for their operations.<br />

As a result of the coming together, BSM's<br />

clients' fleet are now managed by strategically<br />

located service delivery centres (SDCs)<br />

around the globe. "These have the specialist<br />

knowledge, the experience, the up-to-date<br />

systems and certifications in place to manage<br />

all types of vessel and fleet currently in<br />

service with maximum efficiency", he said.<br />

He said that from containerships,<br />

conventional bulkers, gravity-fed self-unloading<br />

bulk carriers, through Panamax, post-Panamax,<br />

Handysize, ro-ros, pure car carriers, crude,<br />

chemical, LNG, or LPG tankers, to heavy-lift<br />

vessels, semi-submersibles and FPSOs - the on<br />

board and onshore specialists are highly<br />

experienced in managing vessels and fleets of<br />

every type and age.<br />

Basically, the fleet has been divided into<br />

three categories - dry, tanker, gas/LNG and<br />

each category is managed by a team headed<br />

by a group managing director.<br />

Droussiotis said that the most important<br />

issue for BSM was nothing else but the<br />

continuous training and upgrading of its own<br />

people. The majority of people in BSM's<br />

present training facilities/schools come from<br />

the Philippines, Cyprus, India, and to a lesser<br />

extent, the ex Soviet states.<br />

"Our foundations stand by the principle to<br />

own the agencies we recruit from. We have<br />

the company's policies, philosophy, mentality<br />

and recruiting standards within these agencies,<br />

as well as the training we conduct in these<br />

areas", he explained.<br />

He said that building relationship and<br />

professional networks were just some of the<br />

elements that keep the shipping industry on its<br />

toes. Leadership, collaboration,<br />

communication; these are aspects that are<br />

needed to keep the human factor from<br />

growing stagnant. It is the human factor issues<br />

that are capable of acting as catalysts in<br />

developing technologies, expansion rates, and<br />

so on. "However, with strict follow-up of the<br />

policies, we are able to cope with the<br />

immense problem, as well as with the<br />

unreasonable escalation of wages, which we<br />

try hard to cope with", he said.<br />

As for specialist vessels, Droussiotis said<br />

that over the years, the group has managed a<br />

large number of gas and chemical vessels.<br />

The shipmanagement units are capable of<br />

providing experienced crews for these vessels<br />

from the BSM pool with the guidance and<br />

control of the group managing directors.<br />

"We have a number of our seafarers, both<br />

officers and ratings, who have been with us for<br />

over 10 years; a good number who have been<br />

with us over 15-20 years. Dependable seafarers<br />

are harder to come by today; which is exactly<br />

why we work harder to keep them. We have a<br />

good number of senior officers who started as<br />

ratings with us, meaning we have been satisfied<br />

with their performance and they have been<br />

pleased with us as employers", he said.<br />

As for Hamburg, Droussiotis said that<br />

Bernhard Schulte's role in the group today is like<br />

in the past- that is the role of the shareholders.<br />

There is close co-operation and an information<br />

flow, but the company is not involved in BSM<br />

operations at all, he stressed.<br />

TO<br />

TANKER<strong>Operator</strong> � August/September 2008


INDUSTRY - SHIPMANAGEMENT<br />

must realise<br />

that shipmanagement fees<br />

need to increase otherwise<br />

“Shipowners<br />

the majority of<br />

professional managers will become reluctant<br />

to take on more ships", warned Ole Stene,<br />

InterManager president.<br />

Claiming that shipowners still had to<br />

recognise the valuable role that third party<br />

managers play in today's shipping industry,<br />

Stene complained that owners still "did not<br />

want to pay the fees that managers' deserve<br />

for taking care of their assets"<br />

He added: "I have not seen much<br />

improvement in the management fee structure<br />

since it first started to be debated in the media<br />

and when you see how the shipping market has<br />

improved coupled with the concerns we have on<br />

recruiting and manning and taking care of the<br />

asset value of the ships, we are surprised<br />

owners are not prepared to share their fortune<br />

with us in taking care of their ships."<br />

Despite this reticence on the part of the<br />

owners, Stene claimed it was inevitable that<br />

fees would rise and that owners would start to<br />

realise they have not only to invest in<br />

manning but also in paying for the<br />

management services that they are receiving.<br />

"It is becoming more difficult for<br />

shipowners themselves to recruit the right<br />

shipmanagement resource. In a way it is the<br />

third party managers who control those people<br />

who will be eventually employed as<br />

superintendents ashore. If a shipowner,<br />

particularly the asset players, goes out into the<br />

market to try and hire superintendents or crew<br />

managers, he will find he has a huge problem<br />

attracting the right people," he added.<br />

InterManager has also reiterated its stance<br />

on the continuing detention in South Korea of<br />

the Hebei Spirit's master and chief officer.<br />

"Yet again we see our highly professional<br />

and valued seafarers singled out for appalling<br />

treatment," said Stene. "How can we<br />

encourage young people to take up a career in<br />

shipping when they see experienced and<br />

innocent crew criminalised in this way. Would<br />

30<br />

InterManager speaks<br />

out for a pay rise<br />

One of the major problems facing third party shipmanagement concerns today<br />

is remuneration, especially when basic costs are escalating.<br />

InterManager president Ole Stene.<br />

the airline industry accept this - I think not!"<br />

The 1993-built single hull VLCC was at<br />

anchor waiting for a berth to discharge when<br />

a crane barge broke its tow in stormy<br />

weather and smashed into her side, holing<br />

three cargo tanks.<br />

About 10,500 tonnes of oil spilled into the<br />

sea, causing the country's largest ever oil spill.<br />

Two South Korean tug masters were jailed<br />

for their part in the incident, but the tanker's<br />

two officers, Indian nationals Capt Jasprit<br />

Chawla and Syam Chetan, were cleared of all<br />

charges on 23rd June.<br />

However, they have since been prevented<br />

from leaving South Korea pending a retrial<br />

that is not expected to take place until early<br />

next year. Under South Korean law,<br />

prosecutors have appealed to the country's<br />

high court against the decision by a district<br />

court in the Daejeon area of South Korea that<br />

exonerated the men of blame.<br />

Depending on the outcome of the high court<br />

trial, prosecutors may appeal to South Korea's<br />

Supreme Court, which would result in another<br />

retrial which might not take place until the<br />

middle of next year.<br />

The two men have received support not just<br />

from their employer, V Ships, but also from<br />

other seafarers in messages and telephone calls.<br />

Capt Chawla, who has 17 years of exemplary<br />

seafaring service, said in a recent interview that<br />

he felt he had done nothing wrong and that he<br />

was reluctant to return to sea, fearing that any<br />

future decisions he took at the helm would be<br />

coloured by this experience.<br />

Stene added: "This criminalisation of<br />

seafarers is having a seriously detrimental<br />

effect on recruitment. Seafarers spend many<br />

months away from their families doing an<br />

essential job for global trade. It is horrific to<br />

then confine these men many miles away from<br />

their homes and their loved ones, particularly<br />

when they have already proved they have done<br />

nothing wrong. We are very concerned that this<br />

type of incident is deterring young men from<br />

pursuing a worthwhile career at sea." TO<br />

TANKER<strong>Operator</strong> � August/September 2008


Managing director Stavros<br />

Hatzigrigoris explained that<br />

this initiative was undertaken<br />

to make the company "more<br />

organised" and that it enabled him to "measure<br />

what we are doing".<br />

One of the major topics at present is the<br />

control of the various emissions, such as SOx,<br />

NOx and particulate matter (PM).<br />

Hatzigrigoris thought that logical steps should<br />

be taken to control emissions and said that he<br />

applauded the recent MEPC findings. "It is<br />

wise and workable", he said.<br />

He warned that NOx and CO 2 emissions<br />

problems don't go together as any fuel<br />

consumption increase needed to control NOx<br />

emissions would create more CO 2 . For<br />

example, ballast water exchange would<br />

increase fuel consumption to cope with the<br />

more power needed to run the operation. For a<br />

VLCC, Hatzigrigoris estimated that 800 kW<br />

of extra power would be required to run such<br />

a system.<br />

"We need time to look at everything<br />

including the reduction of CO 2 and NOx.<br />

However, this energy problem is not (only) for<br />

the shipowners, as it needs to be discussed at<br />

IMO level," he said. "We need a safety culture<br />

and an energy culture," he added.<br />

Kristen has listed the initiatives being<br />

undertaken by the company both ashore and<br />

afloat to control energy consumption. For<br />

example, three VLCCs have been fitted with<br />

MAN Diesel electronically-controlled main<br />

engines. These engines have no camshaft but<br />

instead to provide power for fuel injection and<br />

exhaust valve lifting, they use a hydraulic oil<br />

loop with fine filtered oil from the main<br />

engine's lubricating system at about 200<br />

bar pressure.<br />

The loop for heavy fuel oil is maintained as<br />

on mechanically-controlled engines, that is<br />

individual plunger type fuel pumps with<br />

hydraulic activation. Hence, no fuel oil will<br />

enter the precision fast-acting control valves<br />

in the hydraulic oil control loop. This system<br />

enables the adjustment of fuel pump and<br />

exhaust valve timing for optimum economy<br />

and NOx reduction.<br />

Kristen said that this was producing lower<br />

part load fuel consumption, lower emissions<br />

and particularly smoother and better low load<br />

operation. Switching to low emission modes<br />

means that the NOx exhaust emission will be<br />

below the IMO limits, and if desirable below<br />

local emission regulations.<br />

Recognising that prevention is always better<br />

than mitigation, the company said that it opted<br />

for an upstream solution, that is, trying to<br />

reduce the formation of NOx, rather than just<br />

cleaning the exhaust fumes.<br />

To reduce NOx emissions, new sliding type<br />

fuel valves were developed by MAN Diesel,<br />

which have been installed on all of Kristen's<br />

newbuildings since 2003. In addition, seven<br />

out of 19 tankers built prior to this have<br />

been retrofitted.<br />

Slide valves are designed to reduce the fuel<br />

volume remaining in the fuel injection nozzle<br />

when the valve is closed. They are also<br />

equipped with a specially designed injection<br />

nozzle that optimises the distribution of fuel<br />

throughout the combustion process. The aim is<br />

to avoid high temperature peaks and thus<br />

reducing the NOx build up.<br />

INDUSTRY - SHIPMANAGEMENT<br />

A company’s take on<br />

the environment<br />

Athens-based Kristen Navigation, part of the Angelicoussis group of companies, has<br />

established an environmental management system in accordance with ISO 14001:2004.<br />

Kristen Navigation currently<br />

has 34 tankers on its books,<br />

plus another 15 on order.<br />

These are -<br />

� VLCCs = 23, plus four<br />

newbuilding.<br />

� Suezmaxes = Five, plus<br />

seven newbuilding.<br />

� Aframaxes = Six, plus four<br />

newbuilding.<br />

� Seven of the VLCCs<br />

currently in service are<br />

bareboat chartered to<br />

ChevronTexaco.<br />

In addition, these valves optimise the fuel's<br />

combustion ensuring a cleaner engine. The<br />

consequential reduction of the HC emissions<br />

and also of PM results in less smoke<br />

formation, Kristen said. Furthermore, the<br />

engine benefits from reduced piston fouling<br />

and exhaust gas boiler fouling resulting in the<br />

exhaust valve duct being in excellent<br />

condition.<br />

The new VLCCs from Daewoo will be<br />

fitted with asymmetric fins to improve<br />

propeller flow and therefore enhance the<br />

propeller's efficiency. Kristen estimated that<br />

fuel savings of up to 4% can be achieved, but<br />

this was to be confirmed following the trials<br />

of the first vessel, which were due to take<br />

place in June.<br />

Energy audit<br />

Energy efficiency is controlled primarily<br />

through careful ship operation and<br />

management. With the view to enhancing its<br />

energy efficiency, Kristen organised an 'energy<br />

audit' on board one of its VLCCs to assess the<br />

energy performance of the vessel and its<br />

major machinery and operational management<br />

practices. Among the main objectives were:-<br />

� Identifying energy saving opportunities and<br />

the assessment of their technical and<br />

economic feasibility.<br />

� Setting up of energy conservation<br />

programmes for existing vessels.<br />

� Developing design considerations aiming<br />

at higher efficiency levels for<br />

newbuildings.<br />

� Establishing 'best practice' for on board<br />

energy management to be implemented by<br />

the crew during their everyday working life<br />

on board.<br />

Another initiative Kristen regularly undertakes<br />

when necessary is propeller polishing. This<br />

has been estimated to increase the propeller's<br />

efficiency by between 2-4% resulting in<br />

significant fuel savings and therefore<br />

emissions. Kristen now carries out propeller<br />

polishing on all its managed VLCCs on a<br />

regular six month cycle as a company policy.<br />

August/September 2008 � TANKER<strong>Operator</strong> 33


INDUSTRY - SHIPMANAGEMENT<br />

Kristen regularly uses low sulphur fuel oil<br />

when entering an ECA, or other SOx<br />

controlled areas established by national or<br />

regional legislation. In addition, by regularly<br />

carrying out independent fuel oil analysis, the<br />

company is able to closely monitor the<br />

sulphur content of bunkers lifted to ensure<br />

compliance with the various regulations on<br />

sulphur limits.<br />

All the fleet have been supplied with<br />

refrigerant recovery units to deal with<br />

refrigerant gases. Kristen only uses<br />

hydrochlorofluocarbons (HCFCs) and<br />

hydrofluocarbons (HFCs), which are deemed<br />

to be less harmful to the ozone layer. Their<br />

consumption is closely monitored.<br />

Kristen has also set up a Transport Energy<br />

Efficiency Index expressed as grams per hfo<br />

per tonne/mile and as well as a CO 2 index.<br />

These are monitored regularly for<br />

benchmarking and for identifying instances<br />

where corrective action is needed to improve<br />

environmental performance.<br />

34<br />

TMSA 2 hits the streets<br />

Now that the tanker world<br />

has digested the contents of<br />

TMSA 2, it has become clear<br />

that some of the anomalies<br />

that appeared in the original<br />

version, published in 2004,<br />

have been cleared up.<br />

One of the major changes is that smaller<br />

tankers, including bunker barges, are<br />

now included and the text has been<br />

changed to reflect this, that is the word<br />

'tankers' has been changed to 'vessels.'<br />

It was thought that this omission in the<br />

first version left certain gaps when<br />

TMSA was applied to smaller tanker<br />

operators. ISM expert Dr Phil Anderson<br />

writing in ReportISM said that this move<br />

opened up the TMSA concept to a wider<br />

audience, including those drybulk<br />

operators who have seen the benefits that<br />

can be gained by adopting TMSA as a<br />

whole, or in part.<br />

Some of the key performance<br />

indicators (KPIs) have been re-arranged<br />

into a more logical sequence. The<br />

anomalies in the text have also been<br />

clarified, particularly on how the<br />

programme should be used and<br />

monitored.<br />

Basically, the updated version keeps to<br />

Greek nationals tend to stay with Greek<br />

shipping companies and to help retention,<br />

Kristen is organising a survey among<br />

the officers, which it was hoped would show<br />

the level of satisfaction in working<br />

for the company.<br />

“<br />

”<br />

The company is also one of the partners in<br />

the EU-funded integrated R&D project<br />

Hercules. This initiative was set up to design<br />

cleaner and more energy efficient marine<br />

engines by developing and testing new<br />

technologies to reduce emissions and increase<br />

efficiency and reliability, thereby reducing<br />

fuel consumption, CO 2 emissions and engine<br />

lifecycle costs.<br />

Kristen said that the specific objectives<br />

the same format as its predecessor,<br />

which is aimed at helping tanker<br />

operators measure and improve their<br />

safety management systems, while<br />

encouraging detailed and continued<br />

assessments of safety management.<br />

TMSA 2 also includes references<br />

to all of the latest industry regulations<br />

and practices adopted since the<br />

original version was published four years<br />

ago, ensuring consistency with the new<br />

rules entering force since 2004,<br />

Anderson said.<br />

He also said that the guidance on<br />

achieving the required improvements<br />

under the original version has been<br />

enhanced, as has the ability to react and<br />

build on the experiences and feedback<br />

from OCIMF members, vessel operators<br />

and industry organisations.<br />

Anderson thought that TMSA had<br />

evolved in a major risk assessment tool,<br />

which is used to assess whether a vessel<br />

should be accepted to carry a gas or<br />

oil cargo.<br />

Almost 730 operators now have access<br />

to the TMSA website with global interest<br />

reflecting the tanker ownership. Users<br />

include 107 in Greece, 66 in Japan, 62 in<br />

the US and 49 in Singapore.<br />

were to reduce related NOx emissions by<br />

60% by 2020 and other emissions, such as<br />

PM by 40%. This is to be achieved through a<br />

variety of new developments in<br />

thermodynamics and mechanics of 'extreme<br />

parameter' engines by addressing advanced<br />

combustion concepts, multistage intelligent<br />

turbocharging and 'hot' engines with energy<br />

recovery and compounding. In addition, new<br />

internal emission reduction methods, after<br />

treatment techniques and new sensors are<br />

being developed.<br />

Training initiative<br />

To help cope with the lack of quality<br />

seafarers, Kristen has set up its own training<br />

school, near its office on the main Athens<br />

thoroughfare of Syngrou. Hatzigrigoris<br />

claimed that the company had the largest<br />

number of cadets in the Greek fleet and<br />

explained that the company's policy was to<br />

only employ Greek officers as the vessels fly<br />

the Greek flag.<br />

Kristen's maritime institute has been<br />

certificated by DNV. A Kongsberg<br />

Polaris bridge simulator has been installed<br />

as has a PC version of an engine room<br />

simulator. The company uses its own<br />

instructors to run its courses and refresher<br />

courses and including the building, the<br />

investment in the training centre ran to<br />

about Eur500,000.<br />

Greek nationals tend to stay with Greek<br />

shipping companies and to help retention,<br />

Kristen is organising a survey among the<br />

officers, which it was hoped would show the<br />

level of satisfaction in working for the<br />

company. A Sea Tel satnav has been installed<br />

on the vessels and seafarers are able to send<br />

private e-mails through the company's servers,<br />

Hatzigrigoris explained.<br />

Kristen also manages about 10 tankers<br />

owned by sister company Alpha <strong>Tanker</strong>s,<br />

including three coated and stainless steel coil<br />

fitted LR2s. They have been operating in the<br />

naphtha trades for about 18 months, before<br />

switching to dirty trading.<br />

TO<br />

TANKER<strong>Operator</strong> � August/September 2008


Winner - Sea Trade,<br />

Dubai International<br />

Maritime Awards, 2006 for<br />

“Outstanding Maritime Services”<br />

Finalist - Lloyd's List,<br />

Middle East and Indian<br />

Subcontinent Awards, 2006 for<br />

“Shipping Agent of the Year”


255, MADHAV DARSHAN, WAGHAWADI ROAD, BHAVNAGAR (INDIA)<br />

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New are the modules reporting<br />

and analysing plus compliance<br />

management. "Ship operators<br />

and managers have expressed<br />

the need for a more workflow-orientated<br />

software tool in order to overcome the<br />

increasing administrative burdens of<br />

complying with industry requirements and<br />

regulations", commented Heiko Hofmann,<br />

managing director of Ms Logistik Systeme<br />

GmbH (MsLS), the GL Group company,<br />

which put it together.<br />

Based on the results of a focus group<br />

consisting of three of Germany's largest shipping<br />

companies and GL, compliance management<br />

was designed as a best practice solution for<br />

recording, analysing, acting upon and<br />

documenting incidents, as well as occurrences.<br />

The incident management tool is a main<br />

component of compliance management and<br />

facilitates the implementation of a company's<br />

safety and quality management systems. The<br />

module can specify the type of report with<br />

default categories - accident, complaint,<br />

deficiency, hazard, improvement, incident,<br />

near miss, non-conformity and risk.<br />

Given this information, incident<br />

management will delegate and manage tasks<br />

involved in carrying out corrective actions. It<br />

has an action plan, which also includes<br />

preventive action.<br />

The compliance management module<br />

covers all relevant requirements of the ISM<br />

Code, which can be supported by an IT<br />

system, GL claimed. While documentation<br />

management enables easy updating and<br />

dissemination of safety and quality manuals,<br />

certificate management configures crew<br />

profiles for various ship types in compliance<br />

with relevant regulations.<br />

Dynamic<br />

GL ShipManager 2 is dynamic. It is not only<br />

programmed for document management, but<br />

INDUSTRY - SHIPMANAGEMENT SOFTWARE<br />

Class society<br />

offers integrated<br />

software tool<br />

Leading German class society Germanischer Lloyd has released<br />

a second version of its software suite - GL ShipManager.<br />

also for workflow orientation. With<br />

compliance management it doesn't have to be<br />

communicated through an external email<br />

system like Outlook. It has a messaging<br />

function, which is integrated in the mask of<br />

the screen. Furthermore, the messaging<br />

function has a ranking list, so all the persons<br />

involved can be contacted.<br />

The reporting and analysing module is<br />

integrated with all other modules in the<br />

system to collect data on various operational<br />

processes and generate reports. It provides a<br />

tool to analyse, evaluate the efficiency and<br />

optimise costs, as well as processes.<br />

Reporting and analysing offers an array of<br />

standard reports combined with freely<br />

definable reports and the flexibility of ad-hoc<br />

reporting. The user is able to create his, or<br />

her own reports and analyse key figures<br />

on demand.<br />

New license<br />

In order to allow customers to implement<br />

GL ShipManager within their own financial<br />

constraints, MsLS sells GL ShipManager 2<br />

under a new license model. In addition to<br />

purchasing the software licenses, a leasing<br />

option with the same software will be<br />

available. With the upgraded system, the<br />

data handling is claimed to be more<br />

efficient and there is an expansion<br />

of interfaces.<br />

There is an increased efficiency and<br />

security of data transfer, allowing any type of<br />

attachments to be sent quickly and safely. In<br />

addition, there is an increased configurability<br />

of transfer data, which provides a higher<br />

degree of protection.<br />

The enhanced order management has a<br />

function originally designed for a cruise ship<br />

company. Namely, the integration of the<br />

redelivery function as a standard component.<br />

It enables efficient processing of transactions<br />

in which goods or equipment are sent back<br />

from ship to shore, for example, in the case of<br />

incorrect delivery, damaged goods, quality<br />

defect or service.<br />

Each GL ShipManager module can also be<br />

purchased individually. Implemented as a<br />

complete suite, it is an integrated information<br />

system that improves and automates<br />

processes, resulting in a cost saving potential,<br />

a reduction in workload and increased<br />

efficiency, GL claimed.<br />

The system will be continuously upgraded<br />

with another version - 2:1 - due at the end of<br />

this year. Another upgrade is planned for next<br />

year, MsLs' head of marketing Michael<br />

Bauerhaus told TANKER<strong>Operator</strong>.<br />

Functions, such as a new comprehensive<br />

crew management system, TMSA, ISM risk<br />

management, hull monitoring, risk<br />

management and assessment, shipboard<br />

routing assistance (SRA) and condition based<br />

maintenance will be enhanced, or added.<br />

Bauerhaus explained that GL ShipManager<br />

was originally designed to be a base system to<br />

support all the other systems, which had<br />

tended to become isolated.<br />

The system as a whole aimed to cover all<br />

processes, including GL tools, survey status<br />

and many shipboard functions, including<br />

heavy weather routing, crew functions etc.<br />

The monitoring and certification of many<br />

cargo and ballast tanks can be accomplished<br />

in a short space of time with the minimum of<br />

resources. Compliance documentation can be<br />

speedily accessed. An incident report system<br />

can be used with an integrated<br />

communications system, between ship<br />

and shore.<br />

GL and MsLs will give comprehensive 24/7<br />

support and training and among the companies<br />

that have tested the system and provided<br />

feedback are Hamburg-Sud (HSDG),<br />

Columbus Shipmanagement, MPC and AIDA<br />

Cruises. HSDG made use of the system's crew<br />

management module.<br />

TO<br />

August/September 2008 � TANKER<strong>Operator</strong> 37


INDUSTRY - SHIPMANAGEMENT SOFTWARE<br />

38<br />

User friendly system<br />

continuously<br />

enhanced<br />

Leading software developer Ulysses Systems has continued to develop its fully integrated<br />

system - Task Assistant - for both shipboard and shoreside use.<br />

This system is claimed to be very<br />

user friendly as it allows the user<br />

to access the task to be undertaken<br />

and information needed without<br />

scrolling through pages of information, which<br />

might be irrelevant to what was required at<br />

the time.<br />

There are around 50 plus functions<br />

available for each role at present and once the<br />

user has quickly learned how to navigate the<br />

system, the task to be undertaken can be<br />

speedily accessed, Ulysses claimed.<br />

Task orientation is the key differentiation of<br />

Ulysses: Task orientation is an activity based<br />

way to organise information so that it appears<br />

to the user not only when he or she looks for<br />

it, but also more when they are involved in a<br />

task that might need it.<br />

This is extremely important in making the<br />

system user friendly and even more important<br />

in rendering a system that helps seafarers with<br />

their jobs, Ulysses said. People learn when<br />

they are given information, which they did not<br />

know, that is relevant to what they are doing.<br />

“<br />

Structuring a system enabling that relevance<br />

to be achieved is the key to usability and<br />

value of an enterprise software system.<br />

Only those authorised to undertake certain<br />

tasks are allowed access to the relevant pages.<br />

The delegated persons can have access to<br />

either part or the whole system depending on<br />

what the requirements are. Once logged on,<br />

the system will show the user what he or she<br />

has access to and an audit trail can if needed<br />

automatically track the user's actions.<br />

Also Task Assistant pre-emptively provides<br />

the user with relevant information from<br />

various sources within the enterprise that<br />

could be needed for the task at hand. Since the<br />

user may not be aware of information<br />

contained in the system that may be needed<br />

for the execution of a task, the task orientation<br />

presents the user with all relevant information<br />

at the right time in the execution of the task.<br />

Maintenance<br />

One example is maintenance tasks,<br />

maintenance schedules and work to be<br />

Task orientation is the key differentiation<br />

of Ulysses: Task orientation is an activity<br />

based way to organise information so that<br />

it appears to the user not only when he or she<br />

looks for it, but also more when they are<br />

involved in a task that might need it.<br />

”<br />

undertaken can be seen, including specifics<br />

such as sorting by ship by fleet by<br />

machinery including work schedule, spares<br />

orders etc. For a person in an organisation,<br />

such as a fleet manager who gets involved<br />

only when others call him in, a view of this<br />

information can be very different from that<br />

of a chief engineer who is involved with the<br />

same ship every day. Ulysses role task<br />

orientation ensures the right configuration<br />

for the right role.<br />

Ulysses had found that the marine<br />

industry has neither the time nor the budgets<br />

to train officers to use unintuitive software.<br />

Hence the software has been specifically<br />

developed for multi-tasking users with a lot<br />

of logical indexing structure tailored to each<br />

role and task, resulting in the ease of<br />

navigation of the system which is of<br />

prime importance.<br />

Thus the common requirement that<br />

information for a certain user only makes<br />

sense if combined with other relevant<br />

information is fully accounted for. A prime<br />

example is a group purchasing manager who<br />

needs to see spares ordering information in<br />

such a way as to back up his subordinates and<br />

ensure the vessels were supplied in time, as<br />

well as to check whether pricing criteria had<br />

been adhered to.<br />

The problem today is that the number of<br />

qualified seafarers is decreasing while the<br />

number of tasks, which need to be<br />

undertaken on board, is increasing. This<br />

results in more risk assessments, KPIs and<br />

other tasks, which all involve a certain<br />

amount of form filling, including the recently<br />

revised TMSA for tankers. This means that a<br />

lot more information needs to be collected in<br />

forms for the above tasks, and a lot more<br />

relevant knowhow needs to be provided to<br />

users at the time it is needed to ensure<br />

TANKER<strong>Operator</strong> � August/September 2008


quality and co-ordination.<br />

"If you had around 100 vessels in your<br />

fleet, you could be collecting and using<br />

information on 700 forms per day," director<br />

Panteleimon Pantelis said. So organising<br />

this information is clearly a priority. A<br />

maritime system such as Ulysses organises<br />

the information relevant to role, task<br />

and context.<br />

Accident investigation<br />

Accident reports can be compared with the<br />

crewing model enabling the shore staff to see<br />

which seafarers, vessels etc have had the<br />

most accidents and analyse the reasons why<br />

to prevent similar situations occurring again.<br />

The results can be saved as a 'Word'<br />

document, or in an Excel spreadsheet.<br />

Several reports can be compiled using the<br />

stored data, such as a list of injuries,<br />

accidents, non-compliances, records of chart<br />

and publications upkeep, plus seafarers<br />

qualifications and certificates, among others.<br />

For example, seafarers' cargo operation<br />

experience can be recorded and ascertained<br />

using the seafarer audit voyage management<br />

INDUSTRY - SHIPMANAGEMENT SOFTWARE<br />

system, which will give all the relevant details<br />

of his or her records, qualifications and<br />

certificates and even which type of vessels<br />

they had previously served on.<br />

The non-compliance reports are fully<br />

integrated with the other tasks. Ulysses<br />

explained that if they were separated, it<br />

would be extra work to reconcile all<br />

activities relevant to resolving a non<br />

conformance; activities such as maintenance,<br />

purchasing, crew management etc, with the<br />

underlying non-compliance. By using an<br />

integrated system, the lifecycle of a non<br />

compliance can be assembled with all the<br />

related activities to help co-ordinate the<br />

resolution, ensure process control, enable<br />

statistical analysis, etc. Task Assistant blends<br />

these tasks with all other corporate processes<br />

to create what Ulysses believed was a<br />

fundamental improvement in the way a<br />

company benefited from information and<br />

information technology.<br />

"You need to have software that virtually<br />

enables the user to teach him or herself how<br />

to use the system. We tend to train the trainer<br />

and this takes around four hours to cover all<br />

the models available in the system," Pantelis<br />

explained.<br />

As mentioned, the biggest problem today<br />

is the shortage of seafarers. The system can<br />

help as a by-product by keeping a company<br />

well informed of seafarer experience and<br />

thus primed for most eventualities.<br />

The system is continuously being updated<br />

and Ulysses has offices worldwide that can<br />

offer support. The company will tailor-make<br />

the content of a system for a new client and<br />

ship if needed, as it would obviously cause<br />

major problems if a maintenance system<br />

intended for a tanker turns out to be a system<br />

meant for a containership once installed.<br />

The idea is to start the system<br />

configuration from a pre-configured<br />

platform for as many of the tasks as<br />

possible and ensure that the platform is<br />

readily upgraded as situations, rules and<br />

regulations, equipment on board and so<br />

on changes.<br />

Ulysses is used by a number of tanker<br />

operating companies who are finding it more<br />

and more essential to control the quality of<br />

their operations, the company claimed. TO<br />

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The Aframax Eos undertook a<br />

voyage from Amuay Bay to New<br />

York with a cargo of 549,087<br />

barrels of fuel oil under a Shellvoy<br />

5 charter form.<br />

During the voyage, the vessel's heating coils<br />

leaked and an amount of fresh water was<br />

introduced into the fuel oil. The cargo had<br />

reportedly been purchased with a maximum<br />

sediment & water (S&W) of 1%.<br />

The supplier's load port certificate of<br />

analysis showed S&W of 0.7%. However,<br />

upon arrival at New York, the cargo inspectors<br />

found the S&W to be 1.8%.<br />

Following an initial partial discharge and<br />

considerable subsequent testing and retesting,<br />

the charterer ordered the vessel to move from<br />

the berth to the anchorage. The vessel<br />

remained at anchorage for 18 days before reberthing<br />

and completing her discharge.<br />

As a result, the charterer lodged a claim for<br />

$471,435, primarily for blending stock<br />

required to reduce the S&W content to<br />

acceptable limits and related tankage costs.<br />

The owner counter-claimed for demurrage<br />

totalling $1,117,842, including the 18 days<br />

spent at the anchorage.<br />

The charterer contended that it had proved a<br />

prima facie case by establishing that the S&W<br />

was 0.7% on loading and 1.8% on<br />

discharging. Furthermore, the owner did not<br />

dispute that the vessel's heating coils had<br />

leaked fresh water into the cargo and therefore<br />

the ship was unseaworthy at the<br />

commencement of the voyage.<br />

According to the US arbitrator, the owner<br />

contended that the load port analysis of the<br />

cargo used by the charterer was at least<br />

suspect, if not erroneous. Moreover, the<br />

amount of fresh water which could have<br />

entered the cargo through the leaking heating<br />

coils was inconsequential and therefore could<br />

not and did not cause the considerable<br />

increase in S&W content found at New York.<br />

He said that the first issue was whether the<br />

load port analysis used by the charterer as the<br />

basis for its claim fairly represented the<br />

condition of the cargo upon loading. The<br />

cargo was loaded from a massive open pit<br />

identified as open pit 801. Just before the Eos<br />

berthed to load her cargo, a vessel loaded fuel<br />

oil from pit 801 which had an S&W of 1.4%.<br />

The Eos' certificate of analysis was prepared<br />

by the supplier's laboratory and not by an<br />

independent inspection company. The owner<br />

had no involvement with the sampling or<br />

analysis of the cargo from pit 801.<br />

Further, if - as the charterer contended - the<br />

sole cause of the increase in water content<br />

from 0.7% to 1.8% was due to the leaky coils,<br />

then there would have been a commensurate<br />

increase in the volume of the liquid in the<br />

ship's tanks. There was an increase of about<br />

1,704 barrels based on the difference between<br />

ship's ullages at load and discharge ports.<br />

No evidence<br />

However, to support an increase in the volume<br />

based on a difference of 1.1%, there would<br />

have had to be a volumetric increase of about<br />

6,050 barrels. There was no evidence to<br />

support this position, the arbitrator said.<br />

While load port certificates may be prima<br />

facie evidence of the cargo quality as between<br />

buyer and seller of the product (and indeed<br />

this is often 'final and binding'), the quality<br />

certificate does not have the same import as<br />

between a charterer and an owner. The sole<br />

arbitrator, Jack Berg, concluded that, based on<br />

the credible evidence, the cargo on loading<br />

likely had a water content of between 1.4%<br />

and 1.5% and that the leaky coils added about<br />

0.3%. "The overwhelming bulk of the<br />

problem" was the excess water existing in the<br />

cargo at loading, for which the owner was not<br />

responsible. The result was that the charterer's<br />

claim was denied.<br />

The arbitrator then considered the owner's<br />

INDUSTRY - CHARTERING<br />

Charterer’s cargo<br />

contamination case<br />

not proven<br />

The Society of Maritime Arbitrators, New York, has sent a case note on<br />

a recent arbitration award dealing with liability for cargo contamination*.<br />

demurrage and expenses claim of $1,117,842,<br />

of which $324,438 was for loading and<br />

discharging operations and $822,066 for time<br />

spent at the anchorage.<br />

He had no difficulty awarding the former.<br />

With respect to the latter, the charterer argued<br />

that the high water content caused by the<br />

leaky coils made it impossible to discharge the<br />

cargo promptly.<br />

However, the arbitrator found that this<br />

position was not sustained by the evidence.<br />

The terminal would have taken the cargo in at<br />

any time and ultimately did so. Instead, the<br />

arbitrator found that the time spent at the<br />

anchorage had less to do with the cargo's S&<br />

W content than charterer's decision to use the<br />

ship as floating storage in a rapidly rising<br />

market from which it "profited enormously".<br />

The full amount of the owner's claim was<br />

awarded.<br />

Each side also claimed legal expenses in<br />

excess of $600,000. With very little<br />

discussion, the arbitrator awarded the owner,<br />

as the prevailing party, $550,000 as being<br />

reasonable in the circumstances.<br />

(Case - Andorra Services Inc and Chemoil<br />

Corp as charterer - and Venfleet Ltd, as<br />

owner).<br />

The 1993-built 99,440 dwt tanker Eos is<br />

owned by Venfleet, a subsidiary of Venezuelan<br />

oil concern PDV Marina and managed by<br />

Bernhard Schulte Shipmanagement. She is<br />

entered with the UK P&I Club and classed by<br />

Bureau Veritas, according to Equasis. TO<br />

*We are indebted to Maritime<br />

Advocate for permission to<br />

reproduce this article and to the sole<br />

arbitrator, Jack Berg, and the<br />

Society of Maritime Arbitrators<br />

based in New York for providing the<br />

case study.<br />

August/September 2008 � TANKER<strong>Operator</strong> 41


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Anthony Veder’s innovative hybrid gas carrier - the 7,500 cu m LNG/LEG/LPG carrier<br />

Coral Methane* - is due to enter service in December this year.<br />

She was launched at the Gdansk<br />

shipyard of Remontowa on 7th<br />

May this year and is being built on<br />

an owner/supplier basis.<br />

Anthony Veder's managing director Jan<br />

Valkier explained that the company was in<br />

total control of the shipbuilding process, due<br />

to the Coral Methane's complex design. There<br />

were options attached to the original building<br />

contract but these have expired.<br />

The gas plant and tanks were designed and<br />

developed by TGE Engineering. The<br />

Hamworthy Svanehoj pumps had to be<br />

redesigned to cope with LNG and other<br />

gasses. Rolls-Royce supplied the complete<br />

power and propulsion package, which<br />

includes Bergen Diesel gas/diesel electric<br />

propulsion unit and a twin Azipull propulsion<br />

system for ease of manoeuvrability.<br />

Coral Methane is being built to Bureau<br />

Veritas Ice Class 1B and will fly the Dutch<br />

flag. She has been chartered to Gasnor for 15<br />

years but will used by other operators when<br />

not engaged in Gasnor's LNG trade, which<br />

will be mainly confined to the Norwegian<br />

coast. She has been fitted for ship-to-ship<br />

transfers and will also be able to load at most<br />

European gas receiving terminals, including<br />

the two being built in Rotterdam, acting as a<br />

North European/Norway/Baltic Sea feeder.<br />

Valkier admitted that the Coral Methane<br />

had a larger capacity than currently needed in<br />

Norway, but was convinced the trade will<br />

grow as several Norwegian controlled coastal<br />

vessels, such as ferries and offshore supply<br />

vessels, now use LNG as their main fuel<br />

source.<br />

Anthony Veder technically and<br />

commercially manages 15 LPG/Ethylene<br />

carriers and has another four under purely<br />

commercial management. The company<br />

operates its own commercial pool in which the<br />

other four vessels are included.<br />

Like everywhere else, crewing is a problem<br />

as the seafarers need a gas certificate and gas<br />

experience. The company has a pool of Dutch,<br />

Ukrainian and Indonesian officers and as<br />

salaries have been rising appreciably, Valkier<br />

thought that the incentives were in place to<br />

recruit proper candidates. Gas courses are<br />

available in Rotterdam and training is also<br />

undertaken on board ship.<br />

Anthony Veder operates a cadet programme<br />

where potential seafarers are taken on<br />

annually. Demands have also been put on the<br />

shore staff. For example, the safety and<br />

quality department used to consist of just one<br />

person, but now there are three people<br />

TECHNOLOGY - SHIP DESCRIPTION<br />

Hybrid gas carrier<br />

sets the standard<br />

employed. In general Valkier thought that the<br />

business was more demanding and there were<br />

occasions where the crew was less<br />

experienced than would be preferred resulting<br />

in more supervision being necessary.<br />

Veder favours the Dutch and Liberian flags<br />

and although most of the vessels trade in<br />

European waters, including the Mediterranean<br />

and the Baltic, two vessels have been trading<br />

for Japanese trading houses in Asia since 2000<br />

and another newbuilding will join them<br />

shortly.<br />

Three of the vessels have been built to<br />

Finnish/Swedish Ice Class 1A thus<br />

guaranteeing them winter shipments in the<br />

Northern Baltic, especially Finland.<br />

A few months ago, Veder purchased<br />

Bergesen Gas' Ice Class 1A 6,100 cu m BW<br />

Helen on the back of a charter from YARA to<br />

lift ammonia cargoes.<br />

The ships mainly lift petrochemicals (80%)<br />

and the remaining 20% of the cargoes are<br />

made up of LPG. Other projects could be on<br />

the horizon, including the carriage of CO 2 and<br />

the question of shipping carbon capture<br />

cargoes.<br />

Charterers' vetting procedures tended to be<br />

quite strict and Anthony Veder is also<br />

involved with the TMSA process. About 70%<br />

Once delivered, Coral<br />

Methane will be<br />

chartered to Gasnor<br />

for 15 years.<br />

August/September 2008 � TANKER<strong>Operator</strong> 43


TECHNOLOGY - SHIP DESCRIPTION<br />

44<br />

TANKER<strong>Operator</strong> � August/September 2008


of the vessels are on long term contracts, such<br />

as coas. Spot charters are used to optimise<br />

some of the voyages. Normally just one cargo<br />

is carried as Veder prefers to keep each ship<br />

in the same trade for ease of purging,<br />

although they are fitted with a nitrogen<br />

generator for purging purposes.<br />

As for the petrochemical and LPG markets,<br />

Valkier said that they remained good. He<br />

explained that the rates in this more specialist<br />

market tend not to experience the same degree<br />

of extremes as seen in other markets. TO<br />

Wavespec Limited<br />

Consulting Marine Engineers and Naval Architects<br />

Specialists in the design, design<br />

review, plan approval and<br />

construction, commissioning and<br />

survey of LNG Carriers, LPG<br />

Carriers, Oil <strong>Tanker</strong>s, Oil Product<br />

<strong>Tanker</strong>s and Chemical Carriers.<br />

Fullbridge Mill, Fullbridge,<br />

Maldon, Essex, CM9 4LE.<br />

Telephone: ++ 44 (0) 1621 840447<br />

Fax: ++ 44 (0) 1621 840457<br />

General E-Mail inbox@wavespec.com<br />

Web Site: www.wavespec.com<br />

TECHNOLOGY - SHIP DESCRIPTION<br />

*A full ship description of the Coral<br />

Methane will appear in the first<br />

issue of TANKER<strong>Operator</strong> following<br />

her delivery.<br />

August/September 2008 � TANKER<strong>Operator</strong> 45


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Visit us at SMM 2008<br />

Hall A1 / Stand 451<br />

� � � � � ��� � � � ���� � �� � � ���� �� � ���� ��� � �� ��


TECHNOLOGY - GAS DETECTION<br />

Ensure the equipment is<br />

fit for purpose<br />

Gas detection equipment is required on board all types of ocean going vessels.<br />

The requirement can range from simple enclosed space monitors to<br />

multiple portable instruments and multi-point sampling systems*.<br />

As with any large market, there are<br />

a significant number of<br />

equipment suppliers.<br />

Unfortunately for those on board<br />

the vessels, decisions can be made within<br />

procurement departments that do not take key<br />

factors into consideration; suitability for<br />

required use, spares availability and technical<br />

back-up. This can and does lead to problems<br />

when the equipment does not meet the<br />

requirements for the application and technical<br />

support is required at the next port of call.<br />

Suppliers looking to sell gas detection<br />

equipment to the marine market often view<br />

this sector as like any other. That being the<br />

case, they meet the regulation or requirement<br />

at the lowest cost and the orders will come in.<br />

This often results in equipment that was<br />

designed for another market being reclassified<br />

and offered as a solution to the marine market.<br />

Within Europe, Marine Equipment Directive<br />

(MED) approval is gained and this is the end<br />

of the process - equipment is certified for<br />

marine use, make the sales !!<br />

The intensive cost of the research and<br />

development of a new product is such that it is<br />

natural to look for the greatest return possible<br />

on the investment. A new confined space<br />

monitor, for example, will be designed with<br />

the major land-based opportunities in mind -<br />

these being telecommunications, water<br />

treatment, construction and<br />

petrochemical/refinery applications.<br />

The temptation is to get the same equipment<br />

marine approved and sell into the marine<br />

market. This is perfectly acceptable when<br />

being used as a confined space monitor on<br />

board, as these are numerous such as hold<br />

spaces, void spaces and cargo handling<br />

spaces. Dangerous situations can arise,<br />

however, when these units are adapted slightly<br />

and sold as gas measuring instruments suitable<br />

for specialist applications, such as the<br />

monitoring of inerted cargo tanks.<br />

Once the European Marine Equipment Directive approval is gained, that tends to be the<br />

end of the matter.<br />

An instrument being used for monitoring<br />

during inerting operations is required by the<br />

International Convention for the Safety of Life<br />

at Sea (SOLAS) Chapter II-2 Reg.16 3.2.1 to<br />

monitor hydrocarbon vapour concentration in<br />

the cargo tank to less than 2% by volume. As<br />

a confined space monitor is designed for<br />

safety monitoring, it typically will not have a<br />

suitable resolution or accuracy required to<br />

monitor at low percentage volume levels; the<br />

key measurement with these instruments is<br />

LFL (Lower Flammable Limit) or LEL as it is<br />

categorised in land-based applications.<br />

Similarly, ISGOTT 3.2.2 demands that no<br />

static hazard is introduced to a tank when<br />

sampling to monitor gas levels. Specialist<br />

marine equipment manufacturers understand<br />

this requirement and will provide sample line<br />

that is conductive, thus eliminating a possible<br />

source of ignition. Equipment suppliers<br />

without knowledge of the marine market will<br />

supply adapted confined space monitors with<br />

standard sample line; typical markets on land<br />

do not require conductive sample line,<br />

meaning it is not readily available.<br />

Spares critical<br />

Another feature of the marine market that is<br />

often overlooked is the availability of spares<br />

and technical support when needed. It is<br />

straightforward when selling to land based<br />

industries to be able to guarantee spares<br />

availability and technical support. After all,<br />

the end users will be in the same time zone, if<br />

not the same country as the sales office. The<br />

marine market requires such availability on all<br />

of the main shipping routes.<br />

Port authorities and coast guards require<br />

that gas detection equipment is operational<br />

and within calibration. Failure to satisfy these<br />

checks can mean that a vessel will not be able<br />

to dock in port or leave the port. This can be<br />

extremely costly if the cargo has been sold on<br />

the spot market and is required on a tight<br />

shipping schedule thousands of miles away.<br />

It is worth checking with your intended<br />

supplier of gas detection equipment that they<br />

August/September 2008 � TANKER<strong>Operator</strong> 47


TECHNOLOGY - GAS DETECTION<br />

have the necessary infrastructure in place to<br />

support the equipment. The basics of this<br />

infrastructure should be authorised repair<br />

centres in place on the majority of vessel<br />

trading routes. It is important to confirm that<br />

the repair centres are authorised as this will<br />

mean they have a direct line of supply to the<br />

original equipment manufacturer for<br />

availability of spares and are regularly checked<br />

for quality of work. When required, the repair<br />

centres will have qualified technicians available<br />

to come on board and assess any problems;<br />

repair and putting systems back into<br />

commission where required. The key issue is<br />

that there will be a stock of key spares<br />

available, removing the need for the crew of<br />

shipmanagers to chase around looking for a<br />

solution to what should be readily available.<br />

Having a network of authorised repair centres<br />

will provide additional benefits. These can be<br />

significant such as a no-hassle warranty<br />

exchange programme, equipment swap-out and<br />

centralised invoicing, if required.<br />

As with any instrumentation, gas detection<br />

equipment can fail due to a number of<br />

conditions. Knowing that such a failure will<br />

be serviced or replaced at the next port of call<br />

48<br />

without delay is reassuring. The validity of the<br />

warranty claim can be assessed later; the most<br />

important aspect is not to delay the vessel.<br />

A direct link and common policy between<br />

authorised repair centres and the equipment<br />

manufacturer increases the flexibility of<br />

service. When gas detection equipment<br />

requires a non-standard repair it is often<br />

possible for the repair centre to supply a<br />

temporary loan instrument that can be<br />

swapped out at the next port of call with the<br />

repaired instrument. This prevents any<br />

problems with the vessel not having sufficient<br />

operational units on-board while retaining the<br />

familiarity of equipment usage by the crew.<br />

Advanced payment<br />

When a new customer looks to purchase parts<br />

or a service, the terms can often be payment in<br />

advance. This can be impossible to arrange for a<br />

vessel visiting port one day and leaving the<br />

next. Using an equipment manufacturer with<br />

worldwide service centres means that invoicing<br />

can all be passed through a centralised account.<br />

Again, this serves to provide the vessel with the<br />

required service without delay.<br />

As has been explained, a procurement<br />

Introducing the new range of Gas<br />

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department will often select gas detection<br />

equipment primarily based on price. It is<br />

possible that this equipment can mean that the<br />

crew of the vessel will attempt to use it for<br />

applications that it was not designed for. In<br />

fact, it can introduce a dangerous situation<br />

that would not arise if using equipment<br />

designed specifically for specialist marine use.<br />

Examples of such are lack of resolution and<br />

accuracy for gas measurement in inerted tanks<br />

or the introduction of a static hazard within a<br />

cargo tank. Also, an often ignored factor is the<br />

support required to keep equipment operational.<br />

The support of authorised repair centres in ports<br />

where they are required with available<br />

technicians, spares and technical support can<br />

outweigh the initial cost savings at purchase.<br />

The motto of the story is that if you decide<br />

to purchase gas detection equipment based on<br />

selling price alone; be prepared to hear back<br />

from the crew regarding excessive costs<br />

relating to delays or being held in port. TO<br />

*This article was written by David<br />

McLafferty, formerly marketing<br />

manager, Gas Measurement<br />

Instruments Limited (GMI).<br />

GMI can provide a complete<br />

Gas Detection package:<br />

Portable Instruments<br />

Fixed Systems<br />

- Gas Sampling Systems<br />

- Addressable Detection Systems<br />

Ballast Tank Monitoring<br />

Pump Room Monitoring<br />

Confined Space Monitoring<br />

Void Space Monitoring<br />

Inert Gas Monitoring<br />

Accommodation Monitoring<br />

for<br />

for<br />

OIL TANKERS<br />

CHEMICAL TANKERS<br />

LIQUIFIED GAS CARRIERS<br />

BULK CARGO CARRIERS<br />

REFRIGERATED CARGOES<br />

GMI Head Office:<br />

Inchinnan Business Park,<br />

Renfrew, PA4 9RG<br />

Scotland, U.K.<br />

Tel: +44 (0) 141-812 3211<br />

Fax: +44 (0) 141-812 7820<br />

TANKER<strong>Operator</strong> � August/September 2008


With a two-year lifespan and<br />

guaranteed to be repair-free<br />

during that time, the new<br />

Draeger X-am 1700 is one of<br />

a new generation of one-to-four gas detectors<br />

specifically designed for personal monitoring<br />

applications.<br />

The new gas detector is claimed to be ideal<br />

for use where explosive gases and vapours as<br />

well as O 2 , CO and H 2 S may pose a threat<br />

to health.<br />

No larger than a mobile phone, this<br />

lightweight, ergonomically designed<br />

instrument is easy to use and features the<br />

latest miniaturised XXS generation of<br />

powerful electrochemical DraegerSensors.<br />

For improved safety when facing unknown<br />

hazards, the catalytic Ex sensor, calibrated to<br />

methane, responds quickly to explosive gases.<br />

Offering a high level of sensitivity to<br />

combustible organic vapours it also ensures<br />

dependable warnings in the event of explosive<br />

hazards, Draeger said.<br />

With a practical two-button control panel<br />

and straightforward menu guidance system,<br />

the X-am 1700 benefits from a large liquid<br />

crystal display which provides all readings<br />

at a glance. Fitted with a crocodile clip for<br />

secure attachment to clothing, it also<br />

incorporates gas inlets on both the top and<br />

front to ensure that, even if it is accidentally<br />

placed in a jacket pocket, it will still<br />

provide a reliable warning against<br />

gas hazards.<br />

In alarm situations, the X-am 1700 provides<br />

three different types of warning. These are an<br />

audible multi-tone alarm, a visual 180 deg<br />

alarm and a built-in vibrational alarm.<br />

Dust and water-resistant to IP67, this<br />

rugged instrument remains fully functional<br />

and ready for use even after being dropped in<br />

water. The integrated rubber protection and<br />

shockproof sensors provide additional<br />

TECHNOLOGY - GAS DETECTION<br />

Two hand held gas<br />

detectors launched<br />

Leading gas detector<br />

manufacturer and supplier<br />

Draeger has introduced two<br />

new products.<br />

The pocket gas detectors are ideal for potentially hazardous areas, such as machinery spaces.<br />

resistance to impact and vibration and the unit<br />

is also able to withstand electromagnetic<br />

interference, Draeger claimed.<br />

The X-am 1700 can be used with either the<br />

standard alkaline or optional NINH batteries.<br />

In addition it can be fitted with a T4 battery<br />

which can be recharged in the workshop or in<br />

a vehicle, while still inside the instrument.<br />

Equipped with a data logger as standard,<br />

the unit allows data such as alarms, errors<br />

and the results of function tests to be<br />

transmitted via infrared interface to a PC.<br />

The data can then be analysed using the<br />

DraegerGas Vision software. A variety of<br />

options are also available.<br />

Meanwhile, the new Draeger X-am gas<br />

detection instrument provides accurate,<br />

reliable measurement of one to five gases.<br />

Lightweight and as small as a mobile phone, it<br />

is completely maintenance free and ensures<br />

fast, reliable monitoring of ambient air.<br />

Rugged in design and easy to use, this<br />

innovative, ATEX approved to zone 0<br />

instrument also offers extremely low<br />

operational costs.<br />

August/September 2008 � TANKER<strong>Operator</strong> 49


TECHNOLOGY - GAS DETECTION<br />

Incorporating the latest miniaturised XXS<br />

generation of high performance sensors, the<br />

X-am 5000 can be fitted with up to four<br />

sensors to detect as many as five gases at<br />

once. For example, by using a catalytic Exsensor<br />

together with two electrochemical<br />

sensors and a combination, double sensor for<br />

CO and H2S, it will provide simultaneous<br />

measurement of explosive gases and vapours<br />

as well as O 2 and other toxic gases.<br />

50<br />

As well as a wide range of sensors to<br />

protect against CO, H2S, CO2, Cl2, HCN,<br />

NH3, NO2, PH3 and SO2, Draeger oxygen<br />

sensors offer a five-year expected lifetime,<br />

and the catalytic Ex sensor, calibrated to<br />

methane, offers exceptional longevity, the<br />

company said.<br />

Providing improved safety when facing<br />

unknown hazards, this Ex sensor responds<br />

quickly to explosive gases (additional<br />

Inert gas generator from Coldharbour<br />

UK based Coldharbour Marine, a<br />

division of Transvac Systems<br />

has added a new type of inert<br />

gas generator (IGG) to its<br />

existing range of products.<br />

The new, patented third generation IGG<br />

system (3gIGG) is claimed to reduce the<br />

risk of explosions in cargo tanks and for<br />

other applications, such as ballast water<br />

treatment.<br />

Howard Towers, Coldharbour marine<br />

director said; "Our new third generation Sea<br />

Guardian IGG represents the result of<br />

several years intense research and<br />

development effort by the team here in the<br />

UK, and that in turn was based on our<br />

combined in-house experience of more than<br />

50 years in this important sector."<br />

The new technology incorporates several<br />

significant advances over traditional IGG<br />

systems, in both burner and quench<br />

scrubber design, resulting in a safer, cleaner,<br />

lower maintenance, simpler to operate unit,<br />

the company said.<br />

It is fitted with a specially developed<br />

Venturi type burner, using axial flow staged<br />

fuel and low NOx atomisation and has been<br />

developed from the power generation<br />

sector, where the basic technology has a<br />

well established history of stable, reliable<br />

operation over long periods.<br />

Coldharbour said that the patented<br />

quench scrubber design is a particular<br />

highlight of the system, offering an end to<br />

Venturi/scrubbing towers, spray nozzles and<br />

demister pads.<br />

As a result, the units are more compact<br />

than earlier technologies and this will<br />

facilitate the retrofit market, as well as<br />

newbuildings in the future.<br />

calibrations are available) and offers a<br />

high level of sensitivity to combustible<br />

organic vapours. As a result, it ensures<br />

dependable warnings in the event of<br />

explosive hazards.<br />

A variety of options are also available such<br />

as an external pump with flexible hose for use<br />

in pre-entry/confined space measurement<br />

applications and the Draeger E-Cal automatic<br />

test and calibration station.<br />

Howard Towers.<br />

Long term reliability and benchmark<br />

performance testing was completed in late<br />

2007 and the units are currently in the final<br />

stages of receiving appropriate approvals<br />

and certification.<br />

Towers continued; "Our aims were to<br />

design and build the best IGG for the<br />

current and all foreseeable future market<br />

requirements, capable of operating at 0.5%<br />

or lower residual O2 levels while<br />

maintaining zero soot output. We also<br />

wanted to address the typical operating and<br />

maintenance issues associated with the<br />

earlier IGG technologies."<br />

Coldharbour Marine is looking to expand<br />

its distribution network for the technology<br />

worldwide. It has already received<br />

indications of interest from Europe, the US<br />

and Japan and expects to deliver the first<br />

customer units in 2009. �<br />

TO<br />

TANKER<strong>Operator</strong> � August/September 2008


FOUR IN A SERIES on operating chemical tankers more profitably<br />

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Quick Turnaround in Port Starts with Fast Cleaning<br />

MarineLine ® coating squeezes more profi t<br />

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cleaning, leading to faster port turnaround and<br />

more service hours on the high seas.<br />

Often, tank cargos will change between<br />

voyages, so effective tank cleaning is essential.<br />

MarineLine ® coating maintains a very slick<br />

and hard surface, i.e. an Ra 0.7 rating (very<br />

smooth) vs. Ra 1.8 for Phenol Epoxy. So, the<br />

steps of tank washdown, cleaning, drying and<br />

desorption move along quickly, with superior<br />

tank cleanliness as the ultimate result.<br />

The cross-linked polymer structure of<br />

MarineLine ® also ensures superior resistance<br />

for thousands of chemical cargoes as well as<br />

food grades and edible oils, when compared<br />

to the limited service and extended cleaning<br />

requirements for stainless steel or other coatings.<br />

MarineLine ® is the best choice for clean,<br />

profi table tanks!<br />

MarineLine ® tanks are easily washed and cleaned so they can<br />

be quickly readied for the next chemical cargo.<br />

Advanced Polymer Coatings, Ltd.<br />

Avon, Ohio 44011 U.S.A.<br />

+01 440-937-6218 Phone<br />

+01 440-937-5046 Fax<br />

www.adv-polymer.com


TECHNOLOGY - CHEMICAL TANKER DISCHARGE<br />

52<br />

Discharge<br />

requirements should<br />

be simplified<br />

Achemical tanker is a type of<br />

vessel designed to transport<br />

chemicals in bulk. Ocean-going<br />

chemical tankers generally range<br />

from 5,000 dwt to 40,000 dwt in size, which<br />

is considerably smaller than the average sizes<br />

of other oil tankers. Chemical tankers<br />

normally have a series of separate cargo tanks,<br />

which are either coated with specialised<br />

coatings such as phenolic epoxy or zinc paint,<br />

or constructed from stainless steel.<br />

Tank cleaning after discharging cargo is a<br />

very important aspect of chemical tanker<br />

operations, as tanks which are not properly<br />

cleaned of all cargo residues can adversely<br />

affect the purity of the next cargo loaded.<br />

Hence they are fitted with very efficient tank<br />

cleaning system.<br />

Since the design requirement of chemical<br />

tankers is more stringent than oil tankers, they<br />

are capable of carrying oil cargoes with some<br />

modification. Most shipowners ensure that<br />

their chemical tankers are certified to carry oil<br />

and chemical cargoes.<br />

The freight earned when lifting clean<br />

petroleum products (CPP) is low compared<br />

with chemicals, hence a shipowner will only<br />

carry oil when a chemical cargo is not<br />

available.<br />

This happens on average once per year.<br />

Another Annex 1 cargo is lubricating oil.<br />

The carriage of lubricating oil requires a<br />

Should discharge criteria of Annex II cargoes be applied to<br />

carriage of Annex 1 cargoes in chemical tankers?*<br />

CPP<br />

Source:<br />

250000000<br />

200000000<br />

150000000<br />

100000000<br />

50000000<br />

higher degree of cleanliness and care of cargo,<br />

thus chemical tankers are the natural choice.<br />

Their freight is comparable to that of<br />

chemicals. Hence lubricating oil is carried<br />

exclusively on chemical tankers.<br />

Broadly we can divide Annex 1 (oil<br />

cargoes) carried in a chemical tanker into<br />

three categories -.<br />

1) Non-persistent clean petroleum products<br />

like Mo gas, Kerosene and Naphtha. They<br />

are volatile hence will tend to evaporate in<br />

few hours. They are moderately toxic to<br />

the marine environment. However, they are<br />

more volatile then chemicals like Xylene<br />

and Toluene. When compared to<br />

Acrilonitrile, or Benzene they are certainly<br />

less harmful to human health and the<br />

marine environment.<br />

2) Diesel and light grade lubricating oil (SN<br />

150, SN 600). They are moderately<br />

viscous. However, their viscosity is less<br />

than 50 MPa.S at 20 deg C and they may<br />

Need anchors and chains?<br />

Meet us at SMM 2008<br />

Hall A1, stand number 122<br />

0<br />

2000 2001 2002 2003 2004 2005 2006 2007<br />

Year<br />

1000000<br />

900000<br />

800000<br />

700000<br />

600000<br />

500000<br />

400000<br />

300000<br />

200000<br />

100000<br />

www.wortelboer.nl<br />

0<br />

Lub Oil<br />

CPP<br />

Lub oil<br />

TANKER<strong>Operator</strong> � August/September 2008


take up to 12 to 24 hours to evaporate. As<br />

far as their adverse effect on environment<br />

and on human health is concerned they are<br />

certainly less harmful than most of the pure<br />

chemicals.<br />

3) Base oil, such as SN 2500. This is<br />

persistent oil. If spilled in<br />

large quantity, it can have<br />

similar of heavy grade fuel<br />

oil. However, it is less<br />

persistent than many of<br />

highly viscous category Y<br />

chemicals.<br />

If we compare the properties of<br />

some chemical and oil cargoes<br />

we will see that tone for tone<br />

adverse effect of Annex 1<br />

cargoes carried in a chemical<br />

tanker is several times less than<br />

oil cargo. But the moment a<br />

shipowner loads CPP or<br />

lubricating oil, he has to<br />

comply with following<br />

requirements.<br />

1) Instantaneous rate of<br />

discharge should be less than<br />

30 litres per nautical mile.<br />

2) Vessel should be more than<br />

50 miles off nearest land.<br />

3) <strong>Tanker</strong> should be en route.<br />

4) <strong>Tanker</strong> shouldn't be in a<br />

special area.<br />

5) Discharge should be through<br />

overboard line.<br />

6) Operational ODCMS.<br />

7) Total quantity of oil<br />

discharged should be less<br />

than 1/30,000.<br />

While complying with first six<br />

conditions is easy, compliance<br />

with the 7th condition poses an<br />

extra burden. The operator has<br />

to keep the slops on board.<br />

Since most of the chemical<br />

loading terminals do not have<br />

shore reception facilities, the<br />

operator has to arrange for a<br />

barge for slop disposal. The<br />

total quantity of wash water<br />

after settling and discharging as<br />

per MARPOL will be too little<br />

to justify the use of barge.<br />

If a vessel is trading in<br />

special area, there is another<br />

problem of huge quantity of<br />

wash water, as most of small<br />

chemical tankers do not have<br />

inert gas fitted on board. The<br />

layout of piping and pump<br />

system is not suitable for<br />

TECHNOLOGY - CHEMICAL TANKER DISCHARGE<br />

reusing wash water. Hence, they cannot use<br />

recycled wash water. Since copious amount of<br />

water is needed for cleaning to chemical<br />

standard, a large quantity of tank washing<br />

builds up. Either he has to keep the slop on<br />

board, which means short loading of the next<br />

cargo, or else arrange for a big barge which<br />

may be very costly, or may not be available.<br />

Now let us compare the discharge criteria of<br />

Annex 1 with Annex II cargoes as per<br />

MARPOL for category Y for a vessel built<br />

before 1st January, 2007.<br />

1) The total residue in the tank<br />

should be 150 litres.<br />

2) Vessel should be en route.<br />

3) Vessel should be 12 miles off nearest land<br />

in a water depth of more than 25 m.<br />

4) Discharge is made below water line.<br />

Now take an example of a chemical tanker<br />

with 20 tanks and a deadweight 15,000 dwt.<br />

After discharge of the Cat Y chemical, the<br />

total quantity of chemical discharged will be<br />

20 x 100 = 2,000 litres or 2 cu m.<br />

In the case of Annex 1 oil cargo, the total<br />

quantity allowed will be 15,000/30,000 =<br />

0.5 cu m.<br />

Seut Industrier as Mosssev. 63/65 - 1615 Fredrikstad, pb.352, 1601 Fredrikstad<br />

Tlf: 69 36 87 70 - Fax: 69 36 87 71, E-mail: torbjorn@seut.no, www.seut.no<br />

The SUET valve placed in<br />

Drain/Outlet Pipes from<br />

tanks/reservoirs prohibit any<br />

accidental discharges of<br />

toxic/forbidden chemicals to the<br />

environment. With a seal in the<br />

top Bolt/Nuts it will convince the<br />

Environmental Authorities and<br />

the Insurance Co. that it will be<br />

fool proof regarding wrongful<br />

opening of the valve.<br />

Seut blind flange valves<br />

A product based on quality, efficiency, simplicity.<br />

Easy to operate and reliable in use. Suitable for:<br />

Ships � Rigs and platforms � Refineries � Terminals<br />

Chemical and petrochemical industries<br />

As shown in the drawing the<br />

valves establish a "double<br />

barrier" closing. Make the valve<br />

able to bind off lines with all<br />

known liquids and gases.<br />

Also in the matter of bleeding<br />

and take out samples of the<br />

pipeline you can use the valve<br />

together with pressure and<br />

volume measures.<br />

This valve can be delivered in<br />

Carbon steel, ST.52.3, in<br />

stainless: AISI 317L and in<br />

Duplex material.<br />

Wherever you require security when blinding:<br />

Liquids � Oils � Solvents � Chemicals �<br />

Gasses � Steam and water<br />

Approved by: DET NORSKE VERITAS - NUREAU VERITAS - LLOYD'S REGISTER OF SHIPPING<br />

- U.S. COAST GUARD - AMERICAN BUREAU OF SHIPPING - RINA ITALY -<br />

GERMANISCHER LLOYD - USSR REGISTER OF SHIPPING<br />

August/September 2008 � TANKER<strong>Operator</strong> 53


TECHNOLOGY - CHEMICAL TANKER DISCHARGE<br />

If we compare the property and effect of<br />

CPP and lubricating oils with some of the Cat<br />

Y chemicals, we find that larger quantity of<br />

harmful chemicals are allowed to be<br />

discharged compared to less harmful Annex 1<br />

cargoes.<br />

When we compare the total quantity of<br />

chemicals transported with the total quantity<br />

of CPP, we find that total CPP carried in any<br />

year is 20 times more than chemical cargoes.<br />

Furthermore, the average size of product<br />

tankers is 50,000 dwt or more, while the<br />

average size of parcel chemical tankers is<br />

12,000 to 20,000 dwt.<br />

The larger size and greater number of oil<br />

tankers mean in real terms that they will<br />

discharge much larger quantities of oil<br />

residue, which calls for very strict measures.<br />

While due to the small size and relatively<br />

small number of chemical tankers, the sum<br />

of all the cargo discharged will be much less<br />

than the total sum of oil residue discharged<br />

at sea. If we compare the total CPP imported<br />

in the US with the total lubricating oil<br />

imported, we find that on average the total<br />

CPP imported is 170 mill tonnes compared<br />

to only 610,000 tonnes of lubricating oil.<br />

(See graph).<br />

Now take the case of CPP and lubricating oil<br />

carried in a chemical tanker. The total quantity<br />

of Annex 1 cargo carried is not more than 20%<br />

of the total cargo in a year. Hence the total oil<br />

discharged at sea will be a fraction of similar<br />

chemicals discharged at sea.<br />

If the discharge criteria of Annex II<br />

cargoes, is applied to Annex 1 cargoes<br />

carried in modified chemical tankers it will<br />

be of great relief to chemical tanker owners<br />

in the present day scenario of spiraling<br />

expenses.<br />

1) Instantaneous rate of discharge should be<br />

less than 30 litres per nautical mile.<br />

54<br />

Forecast seaborne trade of liquid chemicals<br />

(1982-2007, mill tons)<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

1985 1990 1995 2000 2003 2007<br />

2) Vessel should be more than 50 miles off<br />

nearest land.<br />

3) <strong>Tanker</strong> should be en route.<br />

4) Discharge should be through overboard<br />

line.<br />

5) Operational ODCMS.<br />

6) The total residue in the tank should be less<br />

than 150 litres after discharging.<br />

7) Vessel should be in water having a depth<br />

of more than 25 m.<br />

8) Total carrying capacity of tanker should<br />

not be more than 20,000 dwt.<br />

9) She should not be used exclusively for<br />

carrying Annex 1 cargoes.<br />

If it is not possible to extend all the criteria for<br />

discharge of Annex II, at least the parcel<br />

chemical tankers of less then 20,000 dwt<br />

should be exempt from "total discharge should<br />

be less than 1/30000" requirement of the<br />

discharge criteria.<br />

TO<br />

Organics Inorganics Triacylglycerols Others<br />

*This article was written by Capt D<br />

Kishore who graduated from TS<br />

Rajendra in 1979. He joined<br />

Shipping Corporation of India as a<br />

deck cadet. Subsequently, he has<br />

served in most types of vessels. He<br />

joined Executive Shipmanagement,<br />

Singapore in 2001 as master on a<br />

chemical tanker and later joined<br />

Samundra Institute of Maritime<br />

Studies (SIMS) in 2004 as a faculty.<br />

At SIMS he is lecturing in tanker<br />

(oil & chemical) subjects, plus BTM<br />

and other safety courses.<br />

Speed claims...fact or friction?<br />

The CASPER ® Service provides technical managers with the information they need to<br />

sustain highest propulsion efficiency in a changing technology environment for drydock<br />

treatment, planned maintenance and performance monitoring systems.<br />

www.propulsiondynamics.com<br />

Hull Performance Monitoring � Fuel Conservation � Emissions Reduction<br />

©2008 Propulsion Dynamics, Inc. All rights reserved.<br />

TANKER<strong>Operator</strong> � August/September 2008


Enraf Holding consisted of six<br />

groups, which at the time of<br />

writing are being merged into the<br />

Honeywell range of services, a<br />

task which is almost complete. Of specific<br />

interest to the marine sector is Enraf Marine<br />

Systems, which is now part of Honeywell<br />

Marine Solutions, while its land-based<br />

division - Enraf Tanksystems becomes<br />

Honeywell Tanksystems.<br />

Philippe Despagne, managing director of<br />

Honeywell Marine Solutions told<br />

TANKER<strong>Operator</strong> that the buyout gave the<br />

former company a greater advantage<br />

worldwide, especially in the service sector as<br />

Honeywell was a well established name with<br />

operations around the globe.<br />

Of particular advantage to the shipping<br />

sector is Honeywell’s presence in South<br />

Korea, Japan, China and the Middle East. The<br />

company also has a large research and<br />

development capability. Enraf being a small to<br />

medium size concern did not have all the<br />

advantages that can come by using economies<br />

of scale, he said.<br />

Another advantage is that by having the<br />

entire marine portfolio in one division, a 'one<br />

stop shop' service can be offered, involving<br />

integrated systems. Honeywell has already<br />

gained experience by installing integrated<br />

systems (IAS) on LNG carriers building in<br />

South Korean yards. Despagne claimed that<br />

the division already had 60% of the LNGC<br />

market and it is already installing a similar<br />

TECHNOLOGY - TANK GAUGING<br />

Honeywell builds on<br />

Enraf purchase<br />

It is just over a year since Honeywell agreed to buy Enraf Holding,<br />

a division of the privately held Dutch company - Enraf Instruments.<br />

BRUNVOLL – the single source<br />

supplier of thruster systems<br />

Refined and proven concepts<br />

teamed up with supreme<br />

technical solutions ensures<br />

low life cycle costs<br />

BRUNVOLL – manufacturer of<br />

• Tunnel Thrusters<br />

• Azimuth Thrusters<br />

• Low-Noise Thrusters<br />

• Thruster Control Systems<br />

integrated system on board a large crude<br />

carrier having developed the software.<br />

Products include tank gauging, portable<br />

level gauging, fire detection systems,<br />

automated integration systems, portable<br />

devices for gas detection in ballast tanks and a<br />

portable topping off device. Retrofitting<br />

wireless technology on vessels' bridges and<br />

also newbuilding installations is another area<br />

of potential for the company. With 15% of the<br />

world's tanker fleet over 20-25 years of age,<br />

the retrofit market was seen as being very<br />

much "alive and kicking".<br />

Based on the experience of work in<br />

refineries, Honeywell is also introducing the<br />

concept of front end engineering demand<br />

(FEED) to both shipowners and shipyards.<br />

TRUSTED WORLD WIDE<br />

Another successful story...<br />

The offshore construction vessel «Boa<br />

DeepC» – equipped with Brunvoll lownoise<br />

tunnel- and retractable thruster<br />

units. Built by Factorias Vulcano S.A., for<br />

owner Boa Offshore AS.<br />

telephone + 47 71 21 96 00<br />

fax + 47 71 21 96 90<br />

e-mail: office@brunvoll.no<br />

www.brunvoll.no<br />

August/September 2008 � TANKER<strong>Operator</strong> 55


closed gauging<br />

International trade fair<br />

Hamburg<br />

Meet us at SMM 2008<br />

Stand no. 60, Hall A1<br />

The HERMetic<br />

UTImeter Gtex is a<br />

portable electronic<br />

level gauge for closed<br />

gas tight operation<br />

resulting in increased<br />

safety and efficiency.<br />

The unit is used for custody transfer,<br />

inventory control measurement and<br />

free water detection on marine vessels.<br />

Connected to a HERMetic vapour control<br />

valve, the UTImeter Gtex avoids<br />

any gas release during operation and<br />

enables 3, optionally 4 measurements<br />

in one single operation, Ullage,<br />

Temperature, Oil-water interface level<br />

and Innage. By increasing safety and<br />

efficiency, Honeywell Enraf Tanksystem<br />

helps customers improve business<br />

performance.<br />

For more information visit our website<br />

www.tanksystem.com or call +41 26 919 15 00<br />

© 2008 Honeywell International, Inc. All rights reserved<br />

TECHNOLOGY - TANK GAUGING<br />

“ With 15% of the world’s tanker<br />

fleet over 20-25 years of age,<br />

the retrofit market was seen<br />

as being very much<br />

“alive and kicking”.<br />

”<br />

Training is another important aspect, involving both Honeywell<br />

employees and seafarers on board vessels. Last year, the company<br />

introduced a planned maintenance scheme for its systems whereby the<br />

crew could be trained to the first level of maintenance, thus allowing<br />

the service engineer to gain as much information as possible before<br />

coming on board and starting a repair or maintenance project.<br />

Despagne claimed that Honeywell was No 1 in the portable level<br />

gauging market with a 60% share and one major competitor and<br />

around 25% of the fixed tank gauging market with three main<br />

competitors, coming in at No 2. Honeywell also boasted the No 1<br />

position in LNGC IAS with 75% of the market. For example, Teekay<br />

has ordered an IAS for one of its newbuildings in South Korea. Over<br />

900 tankers have been fitted with tank radars thus far.<br />

He explained that even an 8,000 dwt to 15,000 dwt chemical tanker<br />

still had around 14 tanks plus a slop tank to take into consideration.<br />

He also said that the systems needed to be made to suit the product as<br />

for example, the same crude oil gauging system would not work in a<br />

tank full of vegoils.<br />

As mentioned, the service side of the business is becoming of<br />

increasing importance and the company thought that today is was<br />

essential for shipbuilders and owners to look for a powerful network<br />

of service stations to provide a seamless and timely service concept.<br />

To market this concept, Honeywell is active in 195 countries and<br />

boasts a short response time with spares shipped within 24 hours of<br />

a request.<br />

For the future, wireless technology is seen as the way forward. In<br />

addition, Honeywell is working on the ballast tank gas detection<br />

technology with enhanced safety systems built in and a portable<br />

topping off device to measure the level of ullage at the top of a tank.<br />

Taking advantage of the lead in IAS technology is another area to<br />

be exploited and the further development of the 'one stop shopping'<br />

policy for both yards and owners resulting in the supply of entire<br />

integrated systems, plus the FEED concept<br />

Today, under the corporate banner of Honeywell International, the<br />

Automation and Control Solutions division under ceo Roger Fradin<br />

consists of Honeywell Marine Solutions, which in turn controls<br />

Honeywell Enraf Tanksystems, Honeywell Enraf Terminal<br />

Automation, Honeywell Enraf Fluid Technology, Honeywell Enraf<br />

Calbron Solutions and Honeywell Enraf Contec.<br />

Honeywell Marine Solutions France is responsible for all tank level<br />

measurement and control activities and last year recorded $29 mill in<br />

revenue; Tanksystems is based in Switzerland and markets the<br />

portable tank level gauging systems and last year posted revenue of<br />

$20 mill; Norway is the home of ELTEK fire detection and fighting<br />

systems with a 2007 revenue of $6 mill; the LNG IAS division is<br />

based in South Korea and recorded revenues of $30 mill last year and<br />

finally US-based BW offers portable gas detection equipment and<br />

boasted a revenue of $5 mill for 2007.<br />

TANKER<strong>Operator</strong> � August/September 2008<br />

TO


TECHNOLOGY - TANK CLEANING<br />

The Science of Cargo<br />

Tank Cleaning<br />

If you ask any commercial or operational management company of a chemical<br />

or petroleum product tanker, they will probably say that tank cleaning<br />

is the Achilles Heel of the entire operation*<br />

Certainly it is the rate determining<br />

step and very often it is the main<br />

reason why a vessel may or may<br />

not load its nominated cargo.<br />

But contrary to what you may hear, tank<br />

cleaning is not difficult; it is sometimes<br />

confusing and very often frustrating, but there<br />

is always a reason why something has<br />

happened and identifying this reason will very<br />

often resolve a problem. The importance of<br />

experience can of course never be underestimated,<br />

but as a great deal of experience has<br />

already retired, or is in the process of retiring, it<br />

has to be said that experience is not critical.<br />

It is actually noticeable that the days of the<br />

little 'black book' containing tank cleaning<br />

secrets are clearly becoming numbered, not<br />

just because the number of individuals with<br />

the experience is decreasing but also because<br />

many of the most effective tank cleaning<br />

secrets are pre-MARPOL regulations and<br />

based on using tank cleaning materials that are<br />

now prohibited.<br />

The use and availability of tank cleaning<br />

materials today is far more strictly controlled<br />

in terms of marine pollution, but as a direct<br />

consequence, the potency of many of tank<br />

cleaning materials has diminished, which does<br />

have an impact on the tank cleaning.<br />

Safety is also a far more significant concern<br />

and the tendency is to only use tank cleaning<br />

materials that are non hazardous, non toxic<br />

and non flammable. This too also affects the<br />

efficiency of the tank cleaning materials and<br />

does have a bearing on the tank cleaning,<br />

particularly when coated cargo tank surfaces<br />

are involved.<br />

When one considers that most tank cleaning<br />

materials are detergent based and detergents<br />

contain surface active ingredients, it is clear<br />

that the primary role of such products is to<br />

'clean the surface of the cargo tanks'. If the<br />

cargo tanks are lined/plated/clad with stainless<br />

steel, these products are completely<br />

satisfactory, but if the cargo tanks are lined<br />

with organic or inorganic based paints that<br />

allow previous cargo residues to become<br />

A large cargo tank with a deepwell pump, drop line and a cleaning machine.<br />

trapped inside the matrix of the coating, surface<br />

active cleaning materials are largely ineffective.<br />

This is mainly common sense, but knowing<br />

and understanding this is sometimes difficult<br />

to comprehend when there are apparently no<br />

other solutions available.<br />

What is tank cleaning?<br />

All tank cleaning procedures are a logical<br />

sequence of events that will ultimately lead to<br />

the objective of loading the next nominated<br />

cargo. The precise nature of the cleaning<br />

process is specifically determined by the<br />

chemical and physical properties of the cargo<br />

being cleaned from, the type of lining inside<br />

the cargo tanks, the size and dimension of the<br />

cargo tanks and the pre-loading specifications<br />

of the next nominated cargo.<br />

The key to any successful cleaning<br />

operation is very simply knowing how far to<br />

clean and determining whether each step of<br />

the cleaning has been effective.<br />

In practice most tank cleaning procedures are<br />

very similar, because there are not that many<br />

different variables available to the vessels:<br />

i) Fixed tank cleaning machines or portables<br />

(or both).<br />

ii) Water or solvent for the pre-wash?<br />

iii) Reaction of the previous cargo(s) with the<br />

cargo tank coating.<br />

iv) Cold water or hot water?<br />

v) Tank cleaning materials or not?<br />

Determining the correct plan is essential, but<br />

this can usually be gained from the many and<br />

varied tank cleaning guides available on the<br />

market. Of far greater significance and<br />

importance is the monitoring of each step of<br />

the plan, in order to make sure that it has<br />

actually been carried out.<br />

Tank cleaning guides are useful but they can<br />

also be extremely misleading for the simple<br />

reason that inexperienced operators will tend to<br />

use the guides as a definitive method for any<br />

particular tank cleaning. This is a mistake which<br />

can and does cause problems.<br />

Still today in legal disputes on whether a<br />

vessel is deemed to have cleaned (or not as<br />

the case may be) with "due diligence" in the<br />

preparation of the cargo tanks prior to loading<br />

the nominated cargo, legal reference is drawn<br />

August/September 2008 � TANKER<strong>Operator</strong> 57


TECHNOLOGY - TANK CLEANING<br />

as to whether the vessel cleaned within the guidelines stipulated in one<br />

or two of the most commonly used and published tank cleaning guides.<br />

One has to ask the question, "how can the outcome of a legal case be<br />

influenced on a ‘guideline’?" By definition, this is an indicator and not a<br />

definitive procedure? The answer to this question is quite simply that<br />

there is no other indicator, apart from experience, which is almost<br />

impossible to quantify.<br />

In the same breath, many chemical cargoes are now only loaded if a<br />

wall wash inspection is found to be within a set of pre-determined<br />

specifications. Achieving a wall wash standard (particularly in a coated<br />

cargo tank) is extremely challenging and requires extensive tank<br />

cleaning. If a vessel fails to meet the required specifications, it implies<br />

that the vessel is still dirty, yet in many cases this is just not true.<br />

Wall wash specifications are very often set to the same levels of<br />

magnitude as the export specification of the cargo being loaded. For<br />

example:<br />

i) Zero hydrocarbons in the wall wash and zero hydrocarbons in the<br />

final loaded cargo.<br />

ii) 0.5 ppm inorganic chloride in the wall wash and 0.5 ppm inorganic<br />

chloride in the final loaded cargo.<br />

In some cases, the wall wash specifications are actually stricter than the<br />

export specifications of the cargo being loaded.<br />

But we are now moving beyond a tank cleaning issue. How can a cargo<br />

tank be rejected because an independent load port inspector finds a wall<br />

wash sample does not meet a set of pre-determined specifications?<br />

Specifications that actually apply to all cargo tanks of all vessels,<br />

irrespective of vessel type, volume, shape, coating type and so on.<br />

The wall wash test by definition is random and the sampling technique<br />

(which can only be carried out on accessible areas of the cargo tanks which<br />

are furthermore only representative of between 10 and 15% of the internal<br />

surface area of the cargo tank) is impossible to standardise.<br />

Yet the sample is analysed to the highest levels of analytical precision<br />

in the cargo supplier's laboratories and it is these results that ultimately<br />

determine whether a vessel is clean or not and of course whether the<br />

nominated cargo can be loaded.<br />

This goes against all the laws of science, which suggest that the<br />

validity of any analytical procedure is directly governed by the quality<br />

of the sample. If the sample is not representative/typical/reproducible/<br />

standardised, the analytical procedure is not valid.<br />

It is hardly surprising that tank cleaning is considered to be the weak<br />

link of the operational chain, but realistically the odds appear to be<br />

stacked well against the vessels.<br />

Failing a wall wash inspection does not always mean that the tank<br />

cleaning plan has been ineffective; similarly it does not mean that the<br />

next nominated cargo cannot be successfully loaded. On the contrary,<br />

passing the wall wash inspection does not guarantee that the next<br />

nominated cargo can be loaded without the risk of contamination. Yet<br />

still there is pressure to achieve this standard and without acceptance,<br />

the vessel does not load and the competence of the crew is questioned.<br />

This is where monitoring the tank cleaning procedure comes into its<br />

own. Indeed, it is found that the wall wash test is actually a very good<br />

means of monitoring the efficiency of any tank cleaning procedure,<br />

because in many cases the cargo tanks are visually clean, but still there<br />

are residues inside the tanks that are invisible to the naked eye, that can<br />

be picked up in a wall wash sample.<br />

Confirming the presence of these residues is only half of the solution.<br />

Identifying what the residues are and removing them is the key to a<br />

successful tank cleaning procedure.<br />

The hydrocarbon or water miscibility test is one of the most important<br />

parameters on a standard methanol or acetone wall wash. But the test is<br />

TANKER<strong>Operator</strong> � August/September 2008


not specific and does not tell the analyst what<br />

the hydrocarbon is. In terms of monitoring<br />

tank cleaning, it is very important to know the<br />

nature of the hydrocarbon, because this can<br />

directly impact on the subsequent cleaning<br />

steps. It could be:<br />

i) Previous cargo.<br />

ii) Tank cleaning chemicals.<br />

iii) Old cargo absorbed into coated surfaces.<br />

iv) Reaction of the wall wash solvent with the<br />

coating.<br />

v) Other - for example hydraulic oil, leaking<br />

adjacent cargo etc.<br />

Different hydrocarbon products also have<br />

different responses to the hydrocarbon test,<br />

depending on the relative solubility of the<br />

hydrocarbon in water. The most common<br />

Five of eight 5,600 dwt double<br />

hull chemical tankers delivered to<br />

Bergen-based Mowinckel are<br />

fitted with a Norclean super<br />

stripping system. The other three<br />

are still under construction.<br />

According to Mowinckel Ship Management's<br />

Ove Berntzen, the advantage in fitting the<br />

systems is the reduced time and work needed<br />

for tank cleaning. "In many cases there is no<br />

need to gas free the vessel and go down to<br />

collect the remaining liquid", Berntzen said.<br />

"When we are using the super stripping<br />

system, the remaining liquid is only 0.5-1 litre<br />

in each bilge well. If, for instance, the<br />

remaining cargo is gasoline, we just run the<br />

nitrogen system to clear out the remaining<br />

liquid," he explained.<br />

For these types of vessels, the requirements<br />

for stripping is a maximum of 75 litres<br />

hydrocarbon products to slip under the net of<br />

the hydrocarbon test are aromatics, because<br />

many aromatics have a very slight solubility<br />

in water.<br />

For example toluene has a solubility in<br />

water of approximately 0.18%, meaning that if<br />

the wall wash sample contained for example<br />

0.175% toluene, it would pass the<br />

hydrocarbon test. Clearly having 1,750 ppm of<br />

toluene in a wall wash sample is not the<br />

preferred objective, yet this is quite possible.<br />

Accurately monitoring tank cleaning goes<br />

beyond just 'passing' a wall wash sample and<br />

if done correctly, the cargo tanks will actually<br />

be much cleaner than passing an independent<br />

wall wash inspection.<br />

The responsibility for the tank cleaning is<br />

remaining in each tank with the associated<br />

piping system.<br />

He said that during stripping tests on board<br />

one of the sisterships, the remaining cargo was<br />

found to be 24-50 litres. "As we comply with<br />

the stripping requirements by the use of<br />

'normal' stripping, we do not use the super<br />

stripping system during normal unloading<br />

operations", he explained.<br />

Each ice class tanker has a cargo carrying<br />

capacity at 98% of 6,350 cu m and 138 cu m<br />

of slops and has 13 cargo segregations each<br />

with a double valve. They are fitted with<br />

eight 200 cu m per hour, four 150 cu m<br />

per hour and one 100 cu m per hour<br />

centrifugal pumps.<br />

They are provided with a cargo stock on<br />

each side and a common line of 200 mm port<br />

and starboard for and aft of the manifold.<br />

All the tanks can be discharged through any<br />

TECHNOLOGY - TANK CLEANING<br />

always on the vessel and in the case of a cargo<br />

tank rejection or cargo contamination claim<br />

there is no recourse on the choice of tank<br />

cleaning guide or the validity of the<br />

independent load port inspection. The vessel<br />

has to know how clean the cargo tanks are<br />

before any cargo is loaded and without<br />

monitoring the tank cleaning process this<br />

TO<br />

is impossible.<br />

*This article was written by Guy<br />

Johnson, BSc (Hons) MRSC CChem<br />

CSci), director L&I Maritime (UK)<br />

operations@limaritime.com<br />

Tel. +44 1909 532 003<br />

Super stripping system fitted on board small chemical tankers<br />

of the common lines and/or separately through<br />

the manifold. A stern line of 200 mm is also<br />

fitted. Each presentation flange from the COT<br />

is of DIN standard and 150 mm.<br />

The entire cargo system is constructed of<br />

stainless steel and the vessels are coated with<br />

MarineLine. As well being fitted with the<br />

Norclean super stripping system, a nitrogen<br />

system was also installed in the tanks for<br />

inerting and purging.<br />

Out of the eight DNV classed vessels, the<br />

Frosta, Troma, Lycian, Lydian and Ionian<br />

have been delivered, while the remaining<br />

three - Hadra, Hitra and Vinga will follow<br />

this year and next. They are all products of<br />

the Celik Tekne Shipyard in Tuzla, near<br />

Istanbul.<br />

Of the vessels in service, Frosta is chartered<br />

to Esso Norge, Troma, Lycian and Lydian to<br />

StatoilHydro and the Ionian to Gefo. TO<br />

Left: The stripping requirement is a maximum of 75 litres for this type of vessel. Right: Troma is long term chartered to StatoilHydro.<br />

August/September 2008 � TANKER<strong>Operator</strong> 59


SMM PREVIEW<br />

To cope with the number of stands,<br />

the floor space has been enlarged<br />

from two years ago by about<br />

10,000 sq m to 87,000 sq m to<br />

cater for the expected 47,000 visitors.<br />

SMM's organisers have developed a system<br />

whereby a visitor will be able to obtain an<br />

admission ticket promptly and easily and thus<br />

avoid waiting at the cash desk.<br />

With the new online ticketing, a visitor will<br />

now have the opportunity to order an<br />

admission ticket from home via the internet.<br />

Tickets can be booked and paid for<br />

instantaneously. Payment is exclusively by<br />

credit card.<br />

A visitor can also take advantage of the<br />

convenience of online ticketing by receiving<br />

an invitation ticket from an exhibitor. Printing<br />

tickets out at home saves time and ensures<br />

you can arrive at the SMM without stress, the<br />

organisers said.<br />

Upon arrival, the visitor will be confronted<br />

by 11 halls, seven of which are new. A new<br />

'sales lounge' will be built in the Central<br />

Entrance -upper floor. Information will be<br />

available on SMM Istanbul to be held 21st -<br />

23rd January next year in the Turkish city.<br />

SMM 2008 will be opened by German<br />

Federal Minister of Economics and<br />

Technology Michael Glos at 19.00 on 22nd<br />

September. At the opening ceremony new EC<br />

vice president in charge of transport Antonio<br />

Tajani, honorary president of the Community<br />

of European Shipyards Associations (CESA)<br />

Corrado Antonini and Hamburg's Mayor Ole<br />

von Beust will give addresses.<br />

Several side events are also taking place<br />

including Europe INNOVA Standards<br />

Network (EUROMIND), which will be<br />

organising an international workshop on<br />

'Improving Interoperability in the<br />

Shipbuilding Supply Chain' to be held on 23rd<br />

September at VSM - Verband für Schiffbau<br />

und Meerestechnik e.V.<br />

The shipbuilding industry is characterised<br />

by intensive co-operation between different<br />

stakeholders (shipbuilders, suppliers,<br />

60<br />

SMM set to break<br />

records<br />

This month's SMM shipping exhibition, the 23rd to be held in Hamburg<br />

will be the largest ever, as the event has already attracted more than<br />

1,800 exhibitors from over 50 countries, 250 of which will be new to SMM.<br />

classification societies and others) and the<br />

increasing demand of working in highly<br />

flexible networks, with often changing project<br />

arenas. This intensive co-operation is apparent<br />

in all phases of shipbuilding projects from<br />

conception, design to production of the ship<br />

until end of life.<br />

Leading edge shipbuilding production is<br />

aimed at the integration of latest developments<br />

in ICT and logistics in the local and<br />

distributed shipbuilding process. Without the<br />

interoperability of ICT systems, which require<br />

standards and compatibility between<br />

standards, advanced forms of E-business are<br />

impossible. Real progress towards reducing<br />

production cost and lead time depends on a<br />

deeper understanding of the integration of<br />

internal processes and those of suppliers into<br />

an 'integrated production system'.<br />

The EUROMIND network, a project funded<br />

by the European Commission, defined a<br />

generic highly flexible reference standard<br />

through a pragmatic bottom-up approach by<br />

borrowing and learning from standards that<br />

are best in their field and extending these for<br />

the use in the maritime industry.<br />

The consortium will present its results<br />

during a special event, organised by VSM in<br />

Hamburg. The workshop on 23 rd September,<br />

will start with a walk-in session and<br />

continuing with a workshop in the afternoon<br />

with guest speakers from the European<br />

Commission, the industry and European<br />

associations.<br />

Of course, the number of exhibitors are far<br />

too numerous to be mentioned in this<br />

TANKER<strong>Operator</strong> preview. However, we have<br />

endeavoured to mention a few together with<br />

their exhibits in strict alphabetical order.<br />

Advanced Polymer Coatings will be<br />

showing the technology that has persuaded<br />

leading shipowners worldwide to specify the<br />

coating- MarineLine®.<br />

Donald Keehan, APC's chairman, the<br />

developer and manufacturer of the<br />

MarineLine® coating system, said, "The first<br />

ship coated with MarineLine® was in 1994. In<br />

2006, we announced in Hamburg at SMM that<br />

the milestone 100th tanker ship had been<br />

coated with MarineLine®. Just last year, 107<br />

tankers were coated with MarineLine®, and in<br />

2008 we expect to break that record, and we<br />

are doing larger tankers then ever before. At<br />

SMM 2008, this fall, we will present the<br />

300th MarineLine-coated ship."<br />

Demand for MarineLine® has led<br />

Advanced Polymer Coatings to open offices in<br />

the major shipbuilding centres across the<br />

world. Existing offices, including Advanced<br />

Polymer’s headquarters in Avon, Ohio US,<br />

MarineLine Europe in the UK, and<br />

MarineLine Turkey in Tuzla, have now been<br />

joined with new offices such as Advanced<br />

Polymer Coatings China in Shanghai,<br />

MarineLine Korea in Pusan, MarineLine<br />

Japan in Shizuoka, and Advanced Polymer<br />

Coatings SEA in Singapore.<br />

At SMM 2008, the company is preparing to<br />

launch an application company that will offer<br />

services in applying MarineLine® and other<br />

coatings. "With our vast experience gained in<br />

the past 18 years with regard to MarineLine®<br />

application, heat curing, and inspection, we<br />

know we can take coating application to<br />

another level, thus ensuring for shipowners<br />

and shipyards that their coatings work is done<br />

professionally and will meet all the warranty<br />

requirements."<br />

Alfa Laval will display its PureThinking<br />

solutions PureBallast and PureVent, as well as<br />

the new S and P Flex range separator module<br />

and the F-152 fuel oil filter. The focus will<br />

also be on integrated ship support, which<br />

combines spare parts procurement with other<br />

value-added services. Similar to Alfa Laval's<br />

preventive maintenance initiative, it provides<br />

a way of streamlining and safeguarding a<br />

supply chain, enabling faster and smoother<br />

communication that results in more<br />

economical operation.<br />

Alfa Laval will also unveil AQUA - a new<br />

freshwater generator - as well as the new<br />

Gunclean Toftejorg i65 D tank cleaning<br />

machine.<br />

TANKER<strong>Operator</strong> � August/September 2008


Alphatron Marine will be presenting a<br />

comprehensive range of marine electronics<br />

including -<br />

� Alphaminicourse: The Alphaminicourse is<br />

a gyro compass range including a fully<br />

redundant DNV approved interswitch<br />

according to OSV rules.<br />

� Alphaseapilot: The Alphaseapilot is a<br />

series of autopilot systems, ranging from a<br />

basic autopilot MFC to the fully extended<br />

MFA line.<br />

� Alphaline MF: The Alphaline MF is a full<br />

type approved line of marine instruments,<br />

combining analogue and digital read-out into<br />

one single instrument. This range includes:<br />

� wind information system<br />

� meteorological system<br />

� rate of turn indicator<br />

� gyro repeater<br />

� shallow water echosounder<br />

� udder indicator system<br />

� engine RPM info centre<br />

� Alphabridge: The Alphabridge is a<br />

modular bridge console concept for small,<br />

medium and large vessels.<br />

� Alphabridge T: Apart from the "standard"<br />

Alphabridge a full network based version<br />

is available, which is produced in close<br />

cooperation with Transas and JRC Japan<br />

Radio Company.<br />

� AlphaConnect & AlphaAnnounce: The<br />

AlphaConnect telephone exchange and the<br />

AlphaAnnounce Public Address system<br />

will also be displayed at the exhibition.<br />

� Alphatron JRC river radar JMA 609: The<br />

Alphatron river radar JMA 609 has been<br />

designed in close co-operation with JRC,<br />

resulting in a very sophisticated river radar<br />

targeted for the inland shipping market.<br />

Alphatechnique: Alphatechnique, a<br />

subsidiary company of Alphatron Marine,<br />

formerly Progress technique, will also be<br />

present at the Alphatron booth 334 and will be<br />

displaying automation and control systems<br />

such as;<br />

� Alphatechnique bulk handling system<br />

� Alphatechnique alarm monitoring system<br />

� Alphatechnique tank monitoring and<br />

control system<br />

Altro Transflor is exhibiting its unique<br />

maritime flooring, Gallium. It is the only<br />

fully-approved, non-PVC slip resistant<br />

lightweight flooring on the market. Gallium<br />

offers enhanced underfoot slip and high levels<br />

SMM PREVIEW<br />

of fire resistance and wear resistance. It is full<br />

compliant with MED under the guidance of<br />

the IMO and full USCG approval.<br />

Leading pump manufacturer Bornemann<br />

will demonstrate how its intelligent pump<br />

solutions are able to meet growing demands<br />

in shipbuilding. Bornemann's flagship product<br />

is its screw spindle pump, which comes in<br />

various design and performance sizes and is<br />

used depending on the task on hand and the<br />

requirements. For special requirements,<br />

Bornemann offers individual package<br />

solutions, including monitoring and control -<br />

high-end pumps for special requirements.<br />

The screw spindle pumps are used as<br />

loading pumps on tankers, as transfer pumps<br />

for heavy-duty HFO quantities and as<br />

lubricating pumps for supplying the main<br />

engine. Bornemann progressive cavity pumps<br />

are used as sludge pumps, bilge pumps, as<br />

pumps to feed oil extractors, and to empty<br />

tanks (residue pumps).<br />

Caterpillar Marine Power Systems<br />

(CMPS) will showcase a wealth of<br />

advancements achieved in technology,<br />

manufacturing, customer support and financial<br />

solutions.<br />

August/September 2008 � TANKER<strong>Operator</strong> 61


SMM PREVIEW<br />

Caterpillar has two marine engine brands<br />

Cat® and MaK. MaK has been on show since<br />

the first SMM back in 1960.<br />

The technology display segment will<br />

present emission reduction solutions like<br />

ACERT Technology, Caterpillar common<br />

rail (CCR) and flexible camshaft technology<br />

(FCT). Also on display will be the most<br />

advanced MaK low emission engine<br />

technology (LEE).<br />

Finally, a new version of the MaK DICARE<br />

engine diagnosis and monitoring system can<br />

be seen.<br />

Chemring Marine, parent company of<br />

Pains Wessex, is exhibiting the Pains Wessex<br />

Mark 8 range of pyrotechnics.<br />

Sales manager Holger Muegge will be<br />

available throughout the exhibition to meet<br />

customers and distributors. Both managing<br />

director Robert Hill and product manager Keith<br />

Bradford will also be visiting from the UK.<br />

Also exhibiting is Chemring's UK<br />

distributor, Cosalt International.<br />

Çiçek Shipyard's stand will display recent<br />

ships completed or under construction,<br />

62<br />

Chemring’s product manager Keith Bradford.<br />

including IMO II chemical tankers ranging in<br />

size from 15,000 dwt to 26,000 dwt, some of<br />

which were built to ice class 1A standards for<br />

North European trading; a 1,300-teu<br />

multipurpose breakbulk/container vessel; and<br />

a 58,000 dwt Supramax bulk carrier, the<br />

largest vessel ever to be built in Turkey.<br />

New at SMM will be the yard's 3,150 dwt<br />

coastal tanker design, which offers early<br />

delivery dates, and its handysize bulk carrier.<br />

The first 3,150 dwt tanker is now under<br />

construction and is due for completion shortly<br />

as an IMO II chemical tanker. Various<br />

versions are available, including refined<br />

products and bunker tanker options.<br />

To be classed by Bureau Veritas and<br />

constructed to meet ice class 1B standards,<br />

these ships will be capable of worldwide<br />

trading, transporting oil products, chemicals<br />

and vegetable, animal and fish oils.<br />

MarineLine coatings have been selected by<br />

Çiçek to give the ability to carry a wide range<br />

of cargoes while high manoeuvrability is<br />

aided by the choice of twin azimuthing<br />

propellers and a bow thruster.<br />

Furuno Electric will be presenting INS<br />

Voyager the Integrated Navigation System<br />

(INS) and the new Bridge Alarm System BR-<br />

1000. In addition, the Furuno INS training<br />

centre (INSTC) will be introduced:<br />

INSTC was established in Copenhagen in<br />

TANKER<strong>Operator</strong><br />

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publisher's<br />

discretion.<br />

TANKER<strong>Operator</strong> � August/September 2008


SMM PREVIEW<br />

Furuno will be introducing its training<br />

facility.<br />

2005. The sole aim of the training centre is to<br />

educate the seafarers on the correct operation<br />

of the navigation equipment installed on their<br />

vessels - both during ordinary day-to-day<br />

64<br />

operation and under extreme conditions. The<br />

training center offers ECDIS education, bridge<br />

management training and product/ system<br />

training.<br />

To ensure and maintain a high level of<br />

quality in the ECDIS training, the education<br />

programme has been audited and certified by<br />

DNV SeaSkill. This allows Furuno to issue<br />

official ECDIS certificates in compliance with<br />

IMO STCW 95 and course code 1.27, which<br />

are accepted by the maritime authorities.<br />

Also, the new VSAT and FleetBroadband<br />

systems will be presented.<br />

Hatlapa Marine Equipment will be<br />

presenting its range of steering gear, which<br />

has been further enlarged to meet the<br />

requirements of the newest 13,000-teu<br />

containerships, which have rudder torques up<br />

to 10,000 kNm.<br />

After several European company buyouts,<br />

Hatlapa now claims to be the only non-Asian<br />

manufacturer of large ram-type steering gears.<br />

All its competitors are Japanese makers who<br />

operate mainly as licensors in South Korea<br />

and China.<br />

In addition, Hatlapa has further developed<br />

its range of small compact steering gears,<br />

starting at rudder torques of 30 kNm ideally<br />

suited for smaller vessel types.<br />

With the start-up of Hatlapa-Korea in early<br />

2007, the ability to serve the Asian and<br />

especially the South Korean shipbuilding<br />

market has been extended still further.<br />

Hatlapa's co-operation with rudder supplier<br />

Becker Marine Systems (BMS) represents a<br />

valuable addition. The companies are aiming<br />

at extending their knowledge range through an<br />

intensive exchange of experience, to provide<br />

Ballast water solutions - one of the highlights of the show<br />

Many of today's ballast water<br />

systems will be on show at<br />

SMM, due to the new IMO<br />

regulations on ballast water<br />

management, which have<br />

motivated manufacturers to<br />

come up with a series of<br />

innovations.<br />

Some of these will be presented for the first<br />

time at the SMM 2008. All new vessels will<br />

be required to filter all ballast water before<br />

taking it on board and before discharging it<br />

again soon.<br />

Along with the 12 bill tonnes of ballast<br />

water taken on board every year, vessels also<br />

carry an armada of stowaways to other parts of<br />

the world - including plankton, invertebrates,<br />

fish larvae, plants, and also pathogens.<br />

According to the environment protection<br />

agency World Wide Fund for Nature<br />

(WWF), there are more than 4,000 different<br />

species being carried in ballast water to new<br />

shores, sometimes with disastrous<br />

consequences.<br />

To back the arguments for the IMO ballast<br />

water regulations, the BSH (Federal<br />

Maritime and Hydrographic Agency)<br />

conducted an analysis as early as 2004<br />

showing the costs for fishery, aquaculture,<br />

coastal facilities, etc resulting from this<br />

transportation of organisms. For example,<br />

the shipworm has caused Eur50 mill worth<br />

of damage in the Baltic Sea since 1993, and<br />

the Chinese mitten crab between Eur73.5<br />

mill and Eur85 mill.<br />

The 'International Convention for the<br />

Control and Management of Ships' Ballast<br />

Water and Sediments' put forward by the IMO<br />

in 2004 aims to put an end to uncontrolled<br />

migration of organisms to foreign waters.<br />

From 1st January 2009, ballast management<br />

will be introduced on ships, preventing<br />

uncontrolled exchange of water.<br />

By 2016 all ships, both new and old, will<br />

have to be fitted with a cleaning system - a<br />

lucrative market in view of the 44,500 ships<br />

of more than 300 gt trading today, according<br />

to figures of the ISL (Institute of Shipping<br />

Economics and Logistics, Bremen).<br />

Bremen-based ROW, a member of Veolia<br />

Water Solutions & Technologies, will<br />

showcase its new CleanBallast system at<br />

SMM. Following extensive onshore testing,<br />

the system has now been delivered to a<br />

shipowner for a live application. The system<br />

comprises DiskFilters and the EctoSys®<br />

electrolysis system for disinfection, treating<br />

the ballast water inline at full flow rate, and<br />

guaranteeing compliance with the IMO<br />

Performance Standard D-2.<br />

The northern German concern Hamann, a<br />

manufacturer of marine purification systems,<br />

will presents its three-part Sedna system.<br />

Hamann started to develop this system as<br />

early as 2001 and has IMO final approval<br />

and more recently from the German flag<br />

administration. The system works with<br />

cyclones and filters. Any remaining<br />

organisms are killed by means of a chemical<br />

in the third cleaning stage.<br />

Envio Water will show its EnvioMar®<br />

system, which kills micro organisms in<br />

ballast water after a hydrocyclone has<br />

removed the suspended particulates. This<br />

system can handle up to 5,000 cu m of<br />

ballast water per hour. The results of the onshore<br />

test will be available at SMM.<br />

Mahle NFV will have its<br />

OceanProtectionSystem OPS for<br />

mechanical/physical ballast water treatment<br />

on the stand. It is another system that will be<br />

show cased for the first time at SMM. The<br />

approval procedure has just started.<br />

Alfa Laval has a lead in this field - the<br />

Swedish company already has IMO approval<br />

for its new development PureBallast, a<br />

chemical-free ballast water treatment system,<br />

and took the first order for it in August 2007.<br />

In total, Alfa Laval already has orders for 20<br />

systems. Alfa Laval received its certification<br />

from DNV on behalf of the Norwegian flag<br />

administration.<br />

In October 2007, the NEI Venturi<br />

Oxygen Stripping (VOS) system was issued<br />

with type approval certification by the<br />

Liberian Bureau of Maritime Affairs. This<br />

included a technical review by ABS.<br />

The IMO Convention requires type<br />

approval certificates from flag<br />

administrations but not class.<br />

Earlier, Alfa Laval and Hamann had IMO<br />

G-9 Basic and Final Approval for their<br />

active substances. However, the IMO G-9<br />

Approval process does not apply to VOS<br />

because it does not use an active substance,<br />

according to NEI.<br />

NEI will be exhibiting at SMM with its<br />

German agent DVZ-Services. �<br />

TANKER<strong>Operator</strong> � August/September 2008


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SMM PREVIEW<br />

Around 37 Dutch companies will be exhibiting in the Holland Pavilion.<br />

common rudder systems.<br />

The range of vane type steering gears<br />

currently exceeds 1500 kNm. With this<br />

additional development, Hatlapa claims to be<br />

the only supplier worldwide offering all<br />

available types of steering gears.<br />

The importance in recent years of frequency<br />

inverter controlled AC motors has meant that<br />

more than 1,000 winches with this motor type<br />

have been delivered. This development was<br />

patent-protected at an early stage and is<br />

differentiated by the creation of nominal pull<br />

even at zero speed. This is a key advantage for<br />

mooring winches in their holding function.<br />

The feature is also available as ex-proof<br />

design for all kinds of tankers and gas<br />

carriers.<br />

Holland Marine Equipment organisation<br />

will be putting together the Holland Pavilion<br />

at SMM.<br />

Some 37 Dutch maritime suppliers will<br />

present their latest technologies in the<br />

pavilion, located in Hall B2, lower floor. The<br />

pavilion will measure 840 sq m and<br />

incorporate a 'superyacht lounge'.<br />

The Imtech Marine Group will be<br />

officially launched at SMM.<br />

It is an independent group of well<br />

established Imtech companies who have<br />

joined forces to offer the marine industry a<br />

wide range of technical solutions.<br />

The group offers tailor made, innovative<br />

solutions (systems and services) in<br />

automation, nav/com, HVAC (heating,<br />

ventilation & air condition), fire protection,<br />

energy and AV entertainment.<br />

It includes companies such as HDW-<br />

Hagenuk Schiffstechnik, Imtech Marine &<br />

Offshore, Imtech Schiffbau-/Dockbautechnik,<br />

Radio Holland Group and Royal Dirkzwager.<br />

The Minimax Group will be showing its<br />

66<br />

new Minifog marine XP high-pressure water<br />

mist extinguishing system.<br />

Minifog can be deployed in all vessel areas<br />

- whether cabins, corridors or in the engine<br />

room - and with one single sprinkler it has an<br />

area of coverage of up to 32 sq m.<br />

Compared with classic sprinkler systems,<br />

Minifog requires up to 90% less extinguishing<br />

water in the event of fire. Due to this<br />

extremely low need for water, the system's<br />

piping and water supply are small and easily<br />

laid out. Less need for space for piping in turn<br />

significantly facilitates retrofitting.<br />

One single Minifog sprinkler achieves can<br />

cover an area of up to 32 sq m. In total the<br />

Minifog system requires far fewer sprinklers<br />

than before. Consequently, the piping network<br />

has fewer branches and fewer fittings. As a<br />

side effect this not only means a saving in<br />

system costs but also a lower total<br />

extinguishing system weight. Fuel costs can<br />

also be reduced.<br />

SAM Electronics will be showing its Ship Control Centre (SCC).<br />

Rovsing Dynamics will join together with<br />

shipowners, classification societies and<br />

machinery manufacturers at SMM to<br />

exchange views and experience with vessel<br />

condition monitoring.<br />

Condition monitoring of critical vessel<br />

machinery is rapidly becoming an industry<br />

standard. To meet the increasing demand,<br />

Rovsing, a MAN Diesel approved condition<br />

monitoring supplier, will provide a forum on<br />

24th and 25th September at SMM.<br />

The open seminars are entitled "Vessel<br />

Condition Monitoring for Condition Based<br />

Maintenance - What to gain and how to get<br />

there."<br />

Shipowners, who have implemented<br />

monitoring solutions together with Rovsing<br />

Dynamics, will share their practical<br />

experience with monitoring of main engine<br />

bearing wear, thrusters and turbochargers.<br />

These include PRISCO (tankers), Reederei<br />

F Laiesz (car carriers) and Scandlines<br />

(ferries). DNV, Germanischer Lloyd and<br />

Lloyd's Register will present their guidelines<br />

for a successful condition based maintenance<br />

strategy, supplemented by the requirements of<br />

MAN Diesel.<br />

MAN now recommends that shipowners<br />

completely disregard regular open-up<br />

inspections of the crank-train bearings of<br />

certain engine types with an approved bearing<br />

wear monitoring system, among other things.<br />

SAM Electronics, an L-3 Communications<br />

company will exhibit a wide range of<br />

equipment at this year's SMM.<br />

The company will display a series of newgeneration<br />

automation, navigation, power<br />

supply and energy distribution systems, as<br />

well as safety, security and infotainment<br />

systems, together with equipment from other<br />

L-3 companies.<br />

TANKER<strong>Operator</strong> � August/September 2008


Major exhibits include a complete Ship<br />

Control Centre (SCC) bridge assembly<br />

integrating navigation, communication,<br />

propulsion control and alarm monitoring<br />

functions on ergonomically-designed,<br />

standardised consoles via a series of four new<br />

23-inch flatscreen monitors.<br />

Realistic visual simulation on three 40-inch<br />

monitors, supplied by Rheinmetall Defence<br />

Electronics will be featured in co-operation<br />

with the newly established Hamburg Marine<br />

Training Center (MTC).<br />

Key sub-assembly components based on the<br />

NACOS XX-5 range include new-generation<br />

series 1100 MULTIPILOT, TRACKPILOT<br />

and CONNINGPILOT units together with a<br />

CHARTRADAR and CHARTPILOT ECDIS.<br />

The navaid systems will be exhibited<br />

alongside the latest high-precision and typeapproved<br />

Speedlog SATLOG SLS 4120 with<br />

integrated alarm functions and which can be<br />

used in all ambient conditions. A new<br />

Integrated Navigational Data Display (INDD)<br />

is capable of showing CONNING functions at<br />

numerous on board locations.<br />

Energy and drive activities will also be<br />

highlighted. The latest diesel electric<br />

propulsion systems from 1 MW up to 25 MW<br />

will be exhibited, as will a new ecological<br />

power connection system, SAMCon, housed<br />

in a standard container for interfacing between<br />

on board 6.6 kV electrical installations and<br />

Alternative Maritime Power (AMP) sources<br />

on piers.<br />

Also featured for the first time will be a<br />

switchboard system (ISA) comprising<br />

complete process monitoring of the total<br />

network, including visualisation by touchscreen<br />

technology and a new network safety<br />

concept.<br />

Other key exhibits include an integrated<br />

and modular high-end automation system<br />

(IAS) Damatic from L-3 Valmarine of<br />

Norway, which has modern human machine<br />

interface solutions for crew and maintenance<br />

personal, of which over 600 systems have<br />

been sold. The latest version of L-3 MAPPS's,<br />

Canada, Safety Management System (ISMS)<br />

will be similarly demonstrated in association<br />

with the IAS assembly.<br />

The latest dynamic positioning systems<br />

from L-3 Dynamic Positioning and Control<br />

System of the US will be shown, as well as<br />

the latest echo sounders and sonar systems<br />

SMM PREVIEW<br />

from L-3 ELAC Nautik of Kiel.<br />

Finally, ship operation sensor systems will<br />

be demonstrated by APSS, recently acquired<br />

by SAM, and cost-effective window wiper<br />

systems from WG Schulz of Hamburg will<br />

also be exhibited.<br />

Solar Solve Marine's existing ranges of<br />

marine roller blinds and solar screens will be<br />

on display as well as SOLASAFE-SR, the<br />

latest product launched earlier this year.<br />

The exhibition stand will be located in the<br />

British Pavilion, in partnership with the<br />

British Marine Equipment Association.<br />

The new SOLASAFE-SR scratch resistant<br />

anti glare roller screens are expected to<br />

generate a great deal of interest and the eco<br />

benefits of all the marine products will be<br />

emphasised.<br />

Tamrotor Marine Compressors will<br />

exhibit its new compressor range for large<br />

capacities, the TMC 240-365 series.<br />

In addition to this, TMC personnel will be<br />

present to provide information on other<br />

services, such as the TMC spare part kits that<br />

makes maintenance of the compressors easier<br />

and cheaper.<br />

The energy-saving, award-winning TMC<br />

See us at stand 135, Hall B6<br />

at SMM<br />

August/September 2008 � TANKER<strong>Operator</strong> 67


SMM PREVIEW<br />

Tamrotor will be showing its compressor range.<br />

Smart Air® frequency controlled marine<br />

compressor will also be exhibited.<br />

The TMC 240-365 series will replace the<br />

previous ML range. It is slightly smaller than<br />

the ML. However, the actual footprint, in<br />

terms of installation/fastening points, is the<br />

same. This means that users who have already<br />

planned installation of an ML compressor in<br />

the engine room can install the TMC 240-365<br />

without having to change the specifications.<br />

Also, for repeat users, the new TMC 240-<br />

365 compressor can be delivered with a kit for<br />

making all attachment points the same as for<br />

the ML series.<br />

All service points are accessible from one<br />

side, which means that placement is flexible<br />

not only in terms of height but also in terms of<br />

horizontal space, as it is not necessary to be<br />

able to access the compressor from more than<br />

one side. All canopy walls can be removed.<br />

At SMM 2008, Transas said that it will<br />

continue to demonstrate its ability to provide<br />

'total solutions' to the maritime industry.<br />

To illustrate this approach, the stand will<br />

feature the company's Integrated Navigation<br />

System (INS), a solution for both Shipyards<br />

and crew training. This high-quality,<br />

navigation product is designed to provide<br />

seafarers with significant advantages in on<br />

board navigation, while an identical system<br />

can be used as a training tool enabling a<br />

simulated training environment to be as<br />

realistic as possible.<br />

The INS is based on the world's only DNV<br />

type-approved INS Class C Hyundai-Transas<br />

intelligent bridge system. Incorporating the<br />

company's type-approved ECDIS, radar and<br />

vector conning applications and having been<br />

developed in close co-operation with seafarers<br />

68<br />

and shipyards, Transas INS focuses heavily on<br />

user-friendly and intuitive functionality.<br />

As part of a continued product development<br />

programme, Transas is constantly expanding<br />

its range of on board systems to incorporate<br />

the increasing number of bridge functions and<br />

sensors needed to the INS such as gyro, echo<br />

sounder, autopilot, log and many others.<br />

Transas will also be displaying The Transas<br />

Full Mission Bridge Simulator operating as a<br />

fully functioning training tool.<br />

It has been developed in compliance with<br />

the DNV requirements for INS/IBS training.<br />

Westfalia Separator will be unveiling a<br />

new generation of mineral oil Separators -<br />

eagleclass.<br />

Westfalia Separator Mineraloil Systems has<br />

expanded the capacity range both up and<br />

down, and has designed the separators to be<br />

more compact, lighter, more energy-efficient<br />

and with fewer wear parts.<br />

A new sensor technology system further<br />

minimises oil losses during de-sludging<br />

operations. The smallest and largest separator<br />

in this new series will be exhibited at SMM.<br />

Transas will be exhibiting its Integrated Navigation System (INS).<br />

Westfalia Separator Mineraloil Systems is<br />

also extending its product line to include a<br />

newly developed fresh water generator,<br />

providing shipping companies and shipyards<br />

with a further module for the engine room<br />

from a single source<br />

This is the SeaWater Distiller, which has a<br />

capacity range of 10 to 30 tonnes per day. The<br />

Visco booster unit with a newly designed<br />

pump module is claimed to be more compact,<br />

lighter and more easily accessible. The<br />

module also takes up less space.<br />

As from next year, Westfalia Separator will<br />

market the BilgeMaster system with maximum<br />

oil contents of 15 ppm in the bilge water for the<br />

complete series; without additional adsorption<br />

filter and without chemicals.<br />

Sewage treatment will be a new addition to<br />

the range of equipment offered by Westfalia<br />

Separator Mineraloil Systems.<br />

With a combination of a centrifuge for<br />

separating coarse impurities, a buffer tank and<br />

an ultrafiltration system for removing fine<br />

impurities, Westfalia is developing a new<br />

sewage treatment system which is to be<br />

launched to coincide with the coming into<br />

force of the new IMO guidelines.<br />

This year, ZF Marine will display a variety<br />

of transmissions, controllable pitch propellers<br />

and electronic controls on the stand and also<br />

outside, where a propulsion shaft-line, with<br />

ZF W43100 gearbox and CPP, will be shown.<br />

The new transmission ZF W17000,<br />

available in reduction (NR) or reversereduction<br />

versions, is designed for continuous<br />

duty, commercial application with engine<br />

powers up to 3,000 kW (4,000 hp) at 1,200<br />

rev/min and a ratio range from about 2 to 4.5.<br />

Several PTOs and PTIs are available as well<br />

as a 'get home' device and either manual or<br />

automatic trolling for slow-speed operation.<br />

Another new transmission system, the ZF<br />

9050, represents ZF Marine's 9000 series,<br />

which is available in many different<br />

configurations - parallel offset (vertical and<br />

horizontal), down-angle and vee-drive. TO<br />

TANKER<strong>Operator</strong> � August/September 2008


14 million tons isn’t a drop in the bucket<br />

Yes, size matters when trading bunkers. Let’s just say that with sales of 14<br />

million tons annually, we’re big enough to meet your needs worldwide at<br />

competitive prices—direct from our own stores or those of trusted partners.<br />

On the other hand, we haven’t forgotten the importance of friendly service and<br />

flexibility when it comes to doing business. Guess we’re not so big after all.<br />

Physical Supply · Global Trading · Risk Management<br />

www.owbunker.com<br />

dependent<br />

but hardly minor


DETAIL – FOR US IT’S NATURAL<br />

OUR ATTENTION TO DETAIL IS YOUR SOLUTION<br />

TO COMPLEX ENVIRONMENTAL ISSUES.<br />

www.lr.org/marine<br />

Christmas tree worm, Caribbean Sea. The detailed spirals are the ocean worm’s highly-developed respiratory structures.<br />

Services are provided by members of the Lloyd’s Register Group. Lloyd’s Register is an exempt charity under the UK Charities Act 1993.

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