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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 />
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SUBSCRIPTIONS<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 />
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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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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 />
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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 />
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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 />
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environment and<br />
standdown<br />
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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 />
generated higher earnings than if left on the<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 />
internationally accepted flag is also possible.<br />
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 />
are not lenders. They are syndicating equity<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 />
comprises a wide range of systems for<br />
rapid and efficient aid to ships indistress<br />
as well as internal communication.<br />
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 />
August/September 2008 � TANKER<strong>Operator</strong><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 />
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by designing vessels with a pre-determined breaking point.*<br />
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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
Celebrating 50 years of service<br />
Voyage Planning Regulatory Advisory Reports and Logs<br />
We are pleased to introduce the<br />
Glosten Ballast Management System<br />
Target Release Date: September 2008<br />
• Software solution for environmental compliance<br />
with ballast management regulations. Designed for<br />
fleet consistency and time savings for crew.<br />
• Easy entry of planned ballast uptake, exchange,<br />
treatment and discharge evolutions by port or tank.<br />
• Immediate compliance feedback based on geographic-<br />
based regulatory database.<br />
• Searchable advisory library of world-wide ballast<br />
management regulations.<br />
• Automated generation of mandatory reports and logs<br />
(e.g. IMO, USCG, Saint Lawrence Seaway, Australia,<br />
California).<br />
• Under Development – Target Release September 2008.<br />
• Contact gbms@glosten.com for more information.<br />
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 />
Phone: 91(278) 2424591/2524407 Fax: 91(278) 2429503 Email: harakhji@gmail.com<br />
Exporters of Marine Machineries and Equipment<br />
Website: www.harakhji.com<br />
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Mitsubishi SJ-3000<br />
Marine Engine<br />
Cat 3606 DI<br />
Wartsila Power Plant16V 26LDGD Turbo ChargerMitsubishi<br />
MET-35<br />
Fresh Water Generator<br />
Alfa Laval JWP-36-200<br />
Refrigeration Compressor<br />
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Exporters of Second Hand Marine Machineries like Main Engines, Generators, Turbo Chargers,<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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© Crowley Maritime Corporation, 2008 CROWLEY is a registered trademark of Crowley Maritime Corporation .<br />
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To meet the challenges of oil tanker escort and assist work in the rough waters of North Puget Sound, Crowley created<br />
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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 />
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Specialists in the design, design<br />
review, plan approval and<br />
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survey of LNG Carriers, LPG<br />
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<strong>Tanker</strong>s and Chemical Carriers.<br />
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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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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 />
Detection instrumentation from GMI<br />
GMI have been providing Gas Detection Equipment to the Shipping Industry for over<br />
half a century. We manufacture and supply an extensive range of single-gas and<br />
multi-gas, portable and fixed gas detection systems to meet all of the following<br />
requirements . . . . and more<br />
VISIT<br />
GMI AT<br />
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STAND No.<br />
B1-OG-444<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 />
Clean<br />
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 />
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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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These are limited to<br />
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executives and are<br />
distributed at the<br />
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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Instruments International AG<br />
Kaegenstrasse 2<br />
4153 Reinach/BL<br />
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Phone +41 61 715 8100<br />
Fax +41 61 715 2500<br />
oil-gas@ii.endress.com<br />
“Hit a hole-in-one with our full range of<br />
solutions for upgrades and new grass<br />
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Global Industry Manager<br />
Come visit us at StocExpo<br />
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February 26 - 27, 2008<br />
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Endress+Hauser has provided solutions in Oil and Gas for<br />
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Solutions for any application<br />
Endress+Hauser offers a full range of instruments,<br />
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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 />
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