tn

APRIL 2012 www.tankeroperator.com
TANKEROperator
Front cover April 12_Front cover.qxd 29/03/2012 14:46 Page 1





































































































w l a
e h
o r a
u s i
n k
u O




o t e l b a l i a vva a s yys a wwa
p x eex l a c o l d n a p l
d l r o wwo e h t d n u o
3 n I . d e h c t a m n u
e r d n a e g d e l w o
v o r p o t y t i l i b a r u




. s rrs e b m e m o
s i e s i t rr e p
t o p s - e h t - n o
s tts r o p 0 5 3
e s n o p s ee
l a c o l e d i v































































































IFC-TO April 2012_Front cover.qxd 29/03/2012 14:48 Page 1
April 2012

TANKEROperator 01
Contents
Markets
Moving sideways
Profile
Thome’s Steffen Tunge
Middle East Report
Fujairah the new hub
Shiprepair giants square up
Owners hit by VLCC carnage
Classification Societies
IACS addresses CSR harmonisation
Russian Register progress
DNV’s Fuel saving guidelines
GL’s Greek meeting
LR’s ECA calculator
Piracy
Piracy down -ransoms up
West African problems escalate
Technology
37 Asphalt/products tanker
Front cover
Leading Bahrain-based shiprepairer ASRY has started the year well by handling three VLCCs. The company said that thus far,
2012 had mirrored 2011 in that the yard has seen the return of the large tanker. Last year ASRY handled 13 VLCCs out of a
total of 52 tankers, which visited the yard in the 12-month period.
37
11
38 Ballast Water Treatment
Systems commissioned
41 Bilge Water Treatment
Alfa Laval claims breakthrough
43 Bunker Operations
FOBAS spells it out
P&I viewpoint
IBIA’s convention
48 Luboils
One fits all not the answer
50 Manning & Training
Competency manager tool
Germans sign ECDIS agreements
DNV approves Kongsberg
Admiralty to sponsor training
55 Tank Services
IPTA looks at IBC Code
6
06
08
28
17
TO April 2012 Contents p1_p1.qxd 29/03/2012 14:49 Page 1
TANKEROperator

April 2012 2
COMMENT
Have we learnt anything from the
Titanic?
TANKEROperator
Vol 11 No 5
Tanker Operator Magazine Ltd
2nd Floor, 8 Baltic Street East
London EC1Y 0UP, UK
www.tankeroperator.com
PUBLISHER/EVENTS/
SUBSCRIPTIONS
Karl Jeffery
Tel: +44 (0)20 8150 5292
[email protected]
EDITOR
Ian Cochran
Tel: +44 (0)20 8150 5295
[email protected]
ADVERTISING SALES
Melissa Skinner
Only Media Ltd
Tel: +44 (0)20 8950 3323
[email protected]
SUBSCRIPTION
1 year (8 issues)
£195 / US$320 / €220
2 years (16 issues)
£300 / US$493 / €336
Subscription hotline:
Tel: +44 (0)20 7017 3405
Fax: +44 (0)20 7251 9179
Email:
[email protected]
PRODUCTION
Wai Cheung
Tel: +44 (0)20 8150 5291
[email protected]
Printed by PRINTIMUS
Ul.Bernardynska 1
41-902 Bytom
Poland
I was wondering how on earth I could get a
reference to the 100th anniversary of the sinking of
the Titanic in Tanker Operator and then those
insurance boys and girls at Allianz answered my
prayers.
Allianz (AGCS) has come up with a report highlighting new shipping
risks and although it has greatly improved since 1912, key challenges
still remain, the insurer said.
It should be remembered that the sinking of the Titanic and the
subsequent enquiry spawned SOLAS - as major shipping disasters tend
to spur the regulators into action – Exxon Valdez, Erika and Prestige
being prime illustrations of this. In addition, the 1987 Herald of Free
Enterprise disaster helped to produce the ISM Code.
Down the years, apart from the two World Wars and the Iran/Iraq
War, shipping losses have dramatically reduced, despite the world’s
fleet trebling in numbers. However, Allianz said that the increase in
vessel sizes, not particularly applicable to tankers here, the ‘human
error’ factor and Arctic navigation were the next hurdles to be
overcome.
Since 1912, the world’s commercial shipping fleet has trebled to over
100,000 vessels (actual figures may vary, according to the criteria), yet
overall shipping loss rates have declined from one ship per 100 per year
in 1912 to one ship per 670 per year in 2009.
While factors such as new technologies and regulations have
tremendously improved marine safety, new risks have emerged.
AGCS’s comprehensive report, ‘Safety and Shipping 1912-2012:
From Titanic to Costa Concordia’, based on research from Cardiff
University’s Seafarers’ International Research Centre (SIRC), highlights
several key challenges for the industry including the growing trend to
‘super size’ ships and cost pressures pushing shipowners to source
crews from emerging economies where standards of training and
assessment can be inconsistent.
Other significant safety risks include reduced crewing numbers,
which may compromise margins of safety and encourage ‘human error’
risks; increasing bureaucracy on board ships; the continued threat of
piracy off Somalia and elsewhere; and the emergence of ice shipping
and its associated navigational and environmental complications.
Commenting on the findings of the report, Dr Sven Gerhard, AGCS’s
global product leader hull & marine liabilities, said: “While the seas are
safer than ever today, the industry needs to address these new risks
proactively. For example, ultra-large ships pose challenges for insurers
due to their sheer size and value, while others raise concerns on
structural integrity and failure.
“While scale alone does not make these ships riskier, the increased
sizes introduce specific risks that need to be addressed, such as salvage
and recovery considerations and emergency handling,” he warned.
Although the days of the ULCC appear over, the largest modern
containerships under construction are so big that there is space below
deck for a basketball court, a full-sized American football stadium and
a spectator-filled ice hockey arena. Ships of this size raise questions of
adequate loss coverage in the event of an incident and of potential
structural limitations, said AGCS.
Human error – the weakest link
The report also highlights the continued challenge of human error in
maritime operations – a factor which remains critical despite 100 years
of technological and regulatory improvements in safety.
Over 75% of marine losses can be attributed to a wide range of
‘human error’ factors, including fatigue, inadequate risk management
and competitive pressures, as well as potential deficiencies in training
and crewing levels.
Dr Gerhard explained: “As technological improvements reduce risk,
so does the weakest link in the system – the human factor – become
more important. This is where the industry should focus most closely,
so that best practice risk management and a culture of safety becomes
second nature across the world fleet.”
While technologies such as Radar, or Global Positioning Systems
(GPS) have driven improved safety, it has often been major accidents
that have been the catalysts for key changes.
“Historically, high profile shipping disasters have led to
improvements in marine safety. And Costa Concordia is certain to be
no different, whatever the result of the official investigations into this
cause will be,” said Dr Gerhard.
AGCS’ research boffins have come up with a list of key facts and
figures taking in the 100 years since an iceberg inadvertently changed
maritime history forever.
Since 1910, world fleet tonnage has increased by a factor of 23 and
has now approached one billion gross tonnes (2010 figures).
World seaborne trade has trebled since 1970 to over 8.4 bill tonnes
of cargo loaded per annum.
TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 1
TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 2
COMMENT
TANKEROperator

April 2012 4
Professional seafarer fatality rates have
fallen in many countries: for example, in
the UK, in 1919 it was estimated that there
would be 358 fatal accidents for every
100,000 seafarer years spent ‘at risk’ – a
rate which had fallen to 11 by the period
1996-2005. However, this fatality rate is
still 12 times higher than in the general
workforce.
Accident ‘black spots’ include South China,
Indo-China, Indonesia and Philippines with
17% of total losses in 2001-2011, followed
by East Mediterranean and Black Sea
(13%), and Japan, Korea and North China
(12%). The seas around the UK also show
relatively high loss concentrations (8%).
Technical innovations over the last 100
years include improved construction
techniques, echo-sounding, Radar, Very
High Frequency (VHF) radios, Automatic
Radar Plotting Aid (ARPAs), satellite
communications, GPS positioning finding,
and Electronic Chart Display and
Information Systems (ECDIS – all of
which have supported marine safety.
I have deliberately deleted reference to
passenger vessels with apology to AGCS.
However, the cost in both human and
monetary terms of a chemical tanker
ploughing into a 200,000 gt cruise vessel
doesn’t bear thinking about, let alone what
the final total of the Costa Concordia sinking
will be.
For all those who find the
shipping language baffling with
its range of acronyms made up
for virtually anything, help is at
hand.
In an attempt to explain the complexity of the
industry’s terminology in simple terms,
Braemar, Incorporating the Salvage
Association, surveying and technical
consultancy arm, as the company likes to be
called, has published a second edition of its
Guide to Hull & Machinery.
For anyone baffled by jargon, the shipping
industry isn’t the best choice of workplace,
Braemar acknowledged, a statement with
which Tanker Operator’s Editor fully concurs.
Although primarily aimed at the marine
insurance industry, whose claims people have
to wade through piles of incident reports
packed with jargon, the book will be a
godsend to anybody just starting out in the
industry.
It is essentially a reference book covering
some of the common terminology used for
ships, their engines and related operations,
which is often encountered in survey reports.
The first version of the Guide to Hull &
Machinery, released last year, was met with
such enthusiasm by the marine insurance
market that Braemar have now produced a
new enhanced version, the company said.
Marine survey reports frequently contain
nautical and engineering technology, which
can often be unfamiliar. Braemar drew on
material from 24 authoritative sources to
produce more than 70 pages of diagrams and
explanations of terms relating to the key
functions of ships and clear illustrations of
ship components, which often figure in
insurance claims.
The Guide to Hull and Machinery has been
welcomed by the industry. “This is a unique
source of reference,” said John Hutley, vice
president, P&C Claims, Swiss Re Services.
“It will not only give support to the
established claims professionals but also, with
its considerable depth of information, to those
who are new to the business.”
This second edition of the guide has been
updated in response to feedback from the
marine insurance market and includes
additional data, such as explanations on gross
and net register tonnages, subdivision and
load line, deck mooring fittings and lifting
appliances, while some useful guide formulas
are included on selection of wires and
synthetic ropes.
In the machinery section, data can be found
on gear boxes, fuel and lube oil systems,
purifiers and transmission systems, while the
sheer scale of marine engines in comparison
to a human body can now be appreciated on
the section of typical propulsion engines.
Dino Levantis, Braemar’s business director
for the Mediterranean and Eastern Europe
region is the lead author of the publication.
“The intention has been to keep it simple,” he
explained. “Targeted at experienced marine
professionals and newcomers alike, it is not
intended as an unwieldy dictionary of
terminology but as a quick reference tool
with easily understood illustrations that
covers the essentials in a user friendly way.”
Much of the book taken up with technical
explanations on the left hand page with the
right hand page left blank for note taking.
The guide is available in hard copy, or pdf
format and is free of charge to those working
in the marine claims and insurance
industry, but will be a useful tool for other
sectors of maritime life.
Help – somebody get me a dictionary!
TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 3
TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 4
TANKEROperator

April 2012 06
INDUSTRY – MARKETS
Are we on the
rebound?
As the first quarter of this year is consigned to history, it is clear that the tumultuous
situation seen 2011 was not a one-off.
T
ensions between Iran and the West
are supporting rising oil prices and
have the potential to further
destabilise an already shaky
economy. Meanwhile, developments in Syria,
Yemen and Sudan are also limiting oil
supplies, reported McQuilling Services in the
‘Short Term Outlook’ report.
There have been some positive indicators
out of the US, but other regional economies
remain under pressure. The debt crisis in
Europe continues to cast a cloud over the
continent and recently, the European Union’s
(EU) statistics office released data confirming
GDP contracted by 0.3% in Q4 2011.
Compounding concerns, China’s official
economic growth target of 7.5% for 2012
indicates that even the dragon economy may
not be formidable enough to halt the slide.
Against this background, the tanker market
has performed reasonably well and has even
slightly outperformed McQuilling’s January
forecast. Despite this development, the tanker
market will continue to be pressured by
overcapacity and the currently high bunker
prices.
Liftings out of the Arab Gulf have come
under some pressure from a more narrow
spread between Dated Brent and Dubai that
has made West African grades comparatively
cheaper.
During the January-for-February 60-day
cycle, used by McQuilling to track fixtures,
spot charters increased strongly in
the middle of February, breaching
the upper threshold of the five year
range for the first time during this
period, indeed since the May-for-
June cycle in 2008.
This helped support rates, but
after gaining too much momentum,
charterers pulled out of the market
and rates retreated. The February-
for-March cycle has closely
followed the five-year average and
there has been much less activity
between the middle and end of the fixing
month.
The reduced fixing activity in this cycle has
also likely been influenced by the rising price
of crude, which has been strongly influenced
by sanctions surrounding Iran. These sanctions
have basically eliminated owner’s ability to
acquire shipping insurance for Iranian liftings,
as importing nations look for alternative
supply sources.
Suezmax fixtures were down sharply during
February, but remained slightly above the
previous years’ levels. Fixtures from West
Africa to the US Atlantic Coast were
unchanged at seven, but with Sunoco’s
Philadelphia refinery due for closure in July,
an upward shift is unlikely.
Although supply security is a permanent
issue in West Africa, a new crude stream from
the Usan field off Nigeria’s coast is expected
to add 180,000 barrels per day into the
market by the end of 2012. In North
Africa, China recently inked a deal to
import 140,000 barrels per day of
crude from Libya.
Following last year’s civil war,
Libya’s oil production has steadily
rebounded and was reported at 1.4
mill barrels per day in February.
In the Middle East, after several
weather related delays, the first of four
single point moorings (SPM) is
reportedly ready to begin operations at
Iraq’s southern port of Basrah. The
SPM has a capacity of 850,000 barrels
per day and is expected to initially
increase Basrah’s export capacity by 400,000
barrels per day once operational, according to
Platts.
In the clean tanker market, with the
exception of the LR2s, activity declined. The
downturn was likely influenced by relatively
high levels of refinery maintenance. The most
notable of these, McQuilling said was the
290,000 barrels per day central distillation
unit at India’s Jamnagar complex that was
offline for three weeks for a planned
turnaround.
However, reduced US refinery throughput
on the East coast and tight pipeline capacity
combined with the looming start of the driving
season should allow activity to rebound in the
near-term.
MR2 fixtures recorded the steepest decline
but still remain above year ago levels. The
drop in MR activity was influenced by the
closure of the St. Croix refinery in the
Caribbean.
The expectation of continued deliveries
from previous orderbooks continues to limit
improvement in market sentiment. To date,
McQuilling anticipated that 17% of its
forecasted deliveries and exits would have
transpired.
Market balanced
At the end of February, 27 tankers had been
delivered and 22 were sent to the breakers.
This represented 12% of the consultancy’s
year-to-date expected deliveries and 30% of
the forecasted exits. As a result, at this point
in the year (mid-March), market fundamentals Source - McQuilling Services.
* See page 7. Source - Gibson Research.
US products imports and exports*
TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 5
April 2012

TANKEROperator
are more balanced than had initially been anticipated.
The exit profile of Suezmaxes has been robust with seven deletions
versus a forecast of four. All of the tankers sent to the breakers have
been between 22 and 24 years old, highlighting the pressure owners of
older tonnage are under.
With the exception of Panamaxes, delivery profiles have generally
been below expectations. McQuilling expected a total of three
Panamaxes to enter the trading fleet this year and to date two have been
delivered. The Nave Estella and SCF Progress were delivered to Navios
and Sovcomflot respectively from South Korean shipyards.
Looking forward, McQuilling expected rates to move sideways in the
coming months, as economic concerns will reign in demand and vessel
supply will continue to remain ample. The start of the US driving
season should provide some support for clean tanker rates in the
Atlantic Basin but demand may be capped by rising pump prices.
Despite high OPEC production levels as the producers group aims to
limit the impact of global supply concerns, crude and residual tanker
demand could be negatively impacted, if any other pressures occur.
Resilient MRs
Perhaps, one of the clearest examples of the recent major changes in the
tanker sector was the shift in trading patterns in the Atlantic Basin MR
market.
The gasoline flow from Europe to the US has traditionally been the
dominant route for MRs in the West.
However, the economic turbulence coupled with high oil prices has
translated into a reduction in US gasoline requirements in recent years,
with total gasoline imports down by 0.35 mill barrels per day from peak
levels in 2007 to 0.81 mill barrels per day last year, reported Gibson
Research in a report.
Imports have been even more sluggish over the past few months,
averaging just 0.66 mill barrels per day since the beginning of 2012.
However, these bearish developments have not been reflected in the
Atlantic Basin MR market. In contrast, we have seen quite a few major
spikes in rates in recent months, Gibson said.
TCE earnings for MRs trading UK/Continent - US Atlantic Coast
rose to $23,000 per day at its highest peak on round voyage basis at
design speed, while MRs in other regional markets in the West followed
a similar pattern. This is in stark contrast to the East, where MR
earnings have lately battled to remain above zero.
In terms of fundamentals, one of the key reasons for the firmer
product tanker market in the West is the ongoing strong growth in US
products exports. First, distillate exports out of US, primarily to Latin
America and Europe, have been on a rapid upward trend since 2007 and
surpassed in terms of volume the US gasoline imports seen last year.
This year, US distillate exports have seen further growth, with
average daily shipments out of the country rising above 1 mill barrels
per day. US gasoline exports, almost solely to Latin America, have also
been rising fast, quadrupling since 2007.
As a result, gasoline trade out of US has reached 0.61 mill barrels per
day this year, not far behind total gasoline imports over the same period,
Gibson said.
INDUSTRY – MARKETS
Correction- Drewry Maritime Research
On Page 19 of the March issue of Tanker Operator, the sources quoted for
the graphics were inadvertently transposed.
The top right graphic source should have read….Gibson Research, while the
bottom left graphic should have been sourced to Drewry Maritime Research.
We apologise for any embarrassment caused.
TO
TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 6
INDUSTRY - PROFILE - SHIP MANAGEMENT
TANKEROperator

April 2012 08
S
teffen Tunge has taken on the role
as a director and new COO for
Thome’s tanker fleet and Tanker
Operator asked him about his
hopes and aspirations for the third party
shipmanagement industry and the tanker
sector in particular.
When asked, what were his priorities in his
new position going forward, Tunge said that
quality and experienced tanker officers,
particularly senior officers, are still in short
supply and this is not likely to get much better
on the short term. Securing and retaining
officers will therefore continue to be a
priority.
“We will also with our new organisational
structure focus very much on dedicated
tankers procedures, which will improve our
quality going forward. We have noticed that
the requirements to the tanker industry are
ever increasing and we intend to stay on top
as a tanker manager,” he said.
He also said that Thome intended to
continue to grow the tanker side of it’s
portfolio as there is still a strong demand for
quality shipmanagement and the company will
continue to grow with existing clients, as well
Tanker expert heads
up Thome’s new
wet division
Singapore-based third party shipmanagement concern Thome Ship Management has
split its management portfolio into wet and dry divisions and appointed a
new COO to run the wet operation.
as bring in new ones if and when there is
capacity to do so.
“We expect that we will grow but only in a
controlled way with due respect to our
existing principals and to the requirements of
the charterers,” he said. He estimated that the
company could grow by another 10 – 15
tankers, but this would be subject to timing
and conditions, “….as we do not want to
jeopardise our quality standards,” he stressed.
Talking of possible growth due to distressed
tonnage in today’s economic climate, he said
that most probably there is a potential, but so
far Thome has seen “…more talk and less
action. We have noticed it is a complex
system with many stakeholders, so we do not
expect a rapid change in the way the industry
works,” he said.
He admitted that the current demand for
increased safety is a never ending saga. The
demands for reduced risks and improved
safety will continue and every time there is a
major incident, it leads to new SOLAS or
MARPOL regulation, or industry demands.
“This has been the nature of our industry
for several decades and is not likely to
change. We have identified a strong vetting
performance as our ticket to operate tankers,
so we will maintain a very strong focus on
keeping, or improving our results. The same
goes for TMSA. A good result is needed to
meet the requirements of the commercial
people in our industry,” he said.
All tanker types
Thome currently manages all ranges of oil
tankers, as well as chemical tankers, bitumen
carriers, plus LPG and LNG carriers. Tunge
explained that the company was particularly
strong in the chemical tanker sector, because a
large number are under management.
However, he stressed that all other tanker
types are also under management and there
was no particular preference.
Turning to InterManager’s KPI initiative,
Tunge said; ”We like the InterManager KPI’s,
but also believe we still have a way to go to
make the system operational.”
The question of third party shipmanagement
remuneration is never far away when talking
with the third party shipmanagement
concerns, especially today with increasing
costs and increasing pressure to reduce
operating costs.
l86 $0$1ßl8ß8ll l8l86f
Koperweg 3 2401 LH Alphen aan den Rijn The Netherlands Phone: +31 (0j 172 41 80 08 Fax: +31 (0j 172 24 08 23
lnternet: www.cryonormprojects.com E-mail: [email protected]


LNG Fuel Tanks ·
LNG automatic bunker connections ·
Re-gasificationsystem (coldbox) ·
Controlsystem ·
l86 $0








0$ ßßl ßß8ll 88 886f l l 88 111ß 1ß



































3 g e w r e p o K









t e N e h T n j i R n e d n a a n e h p l A H L 1 0 4 2 3
c e j o r p m r o n o y r c . w w w : t e n r e t n l









h P s d n a l r e h t
m - E m o c . s t c a
o











G
c r
m e
n o C











· s k n a TTa l e u F
· s n o i t c e n n o c
· ) x o b d l o c ( m
· m e t s y s l o r t n
TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 7
PROFILE – SHIP MANAGEMENT
April 2012

TANKEROperator
Tunge countered; “This is a very competitive business and with
shipping for the most part in a slump, there is not much appetite for any
increased costs, including management fees. Improved productivity is
what we have to strive for, but there is a limit of what can be achieved.
“We do however believe that the industry has to accept an increase in
a not too distant future, as requirements continue to increase and
charterers expect a flawless operation, which unfortunately cannot be
done without cost. This of course also ties back to the charter hires
offered and we believe any quality charterer will have to accept a
certain level of operational expenditure, otherwise a quality operation
cannot be delivered,” he warned.
Some shipmanagers, especially the larger companies, have always
said the economies of scale kick in once a critical mass of tonnage is
reached. “There is obviously an advantage of scale and bigger is often
better. However, there is a limit how big it can go before other issues
become too complicated and may result in reduced performance.
“We are well aware of that and will be very attentive to our quality
level. We do believe that a critical mass is more needed than ever,
mainly due to the depressed market and the need for a quality
operation,” Tunge said.
Satcoms contract
Earlier this year, Thome signed a contract with Inmarsat and its
distribution partner AND group to provide Inmarsat FleetBroadband
and AND’s IPSignature2 communications software to its managed
vessels.
Under the new framework agreement, AND group became the
exclusive communications provider to Thome for Inmarsat
FleetBroadband and will deliver the FleetBroadband service through a
combination of pricing packages, including the Very Large Allowance
(VLA) package.
Tunge explained that the recent signing of the contract to offer the
installation of FleetBroadband on board Thome’s principals’ vessels
was for varying reasons. “We have made a competitive package we can
offer to our principals, as we believe the future will belong to
broadband on board ships - both for professional and operational
reasons - but also to improve the communication our seafarers can have
with their families and friends. So the agreement serves several
purposes,” he said.
Finally, he thought that going forward there will be consolidation
among owners and managers. “We believe there will be some
movements going forward, both from the owner side and perhaps also
among managers. We would expect that smaller tanker managers will
find it difficult to cope with the requirements and will perhaps also be
in trouble in obtaining acceptance from certain charterers, which then
will drive a certain consolidation in the manager industry,” he
concluded.
At the time of his appointment, Thome said that Tunge’s arrival
brought on board a vast amount of experience from the tanker industry
and he will add valuable hands-on experience from his many years in
leadership positions at Stolt Nielsen, B+H Equimar and MSI in
Singapore.
Tunge is an active member of Intertanko and sits on Intertanko’s
Chemical Committee and is a Council member representing Singapore.
As COO, his role has been created to head the tanker fleet and it
reinforces Thome’s demand to uphold and deliver the highest level of
service to its valued stakeholders, the company said.
Senior management
At the same time, three other senior management positions were filled
internally. These included senior manager Yatin Gangla, who is the
TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 8
TANKEROperator

April 2012 10
INDUSTRY – PROFILE - SHIPMANAGEMENT
newly appointed COO in Thome’s bulk
division.
In addition, Sandy Kumaran has been
appointed senior manager to head up the
newly created fleet services department. This
department was established to assist and
support the Thome fleet in a range of services
in response to the company recognising that a
more stringent level of quality check and
support system is required in order to support
the operation successfully.
Finally, Atul Vatsa has been promoted to
senior manager in tanker operations and will
be heading the marine standard and vetting
function.
At the time of the appointments, Olav Eek
Thorstensen, group chairman & CEO, said:
The appointment of Steffen, Yatin, Sandy and
Atul demonstrates our commitment to
servicing our client base in a consistent and
professional manner.
“Steffen Tunge joins Thome after a
remarkable career in some of the world’s
leading shipping companies. I am delighted he
is joining Thome as his experience will benefit
our company greatly.
“I am particularly pleased we have been
able to promote Yatin, Sandy and Atul from
within. They are three senior managers who
have been with us for some time, they
understand our working culture, what is means
to serve Thome principals and the standards
they must maintain. I am certain they will
excel in their new posts,” he said.
Managing director, Carsten Brix Ostenfeldt,
said: “These four appointments show Thome
is moving ahead with the times and able to
attract the very best experienced and talented
managers available. I am looking forward to
working with these four colleagues and I
believe that together we can take Thome to the
next level in terms of leadership in the
international shipmanagement field.”
Not stopping there, Thome’s offshore
services arm Thome Offshore Management
(TOM) and Thome Oil & Gas (TOG) has
appointed John Sydness, as managing director,
effective immediately.
Buoyed by the rising offshore markets, the
company said that its offshore and energy
division is expanding its management
capability to better support its activities and
ensure its service standards are maintained
and improved.
Sydness took over from Claes Eek
Thorstensen, who is moving into a group role
in TSMI – the holding company of the Thome
Group of companies. In his new role,
Thorstensen will be supporting the
development of all the companies within the
group, including commercial and
marketing activities.
Steffen Tunge heads up Thome’s tanker
fleet. 
TO
TO April 2012 p2-10_p2-7.qxd 29/03/2012 14:56 Page 9
April 2012

TANKEROperator 11
INDUSTRY - MIDDLE EAST REPORT
Could tensions stifle
growth?
With US and EU sanctions coming in against trading with Iran in a couple of months, all
eyes have turned to the Straits of Hormuz, the strategic waterway that
commands the entrance to the Persian Gulf.
T
here has already been a certain
amount of sabre rattling in the area
with the Iranian Navy exercising
in the Straits and threatening to
close the vital shipping lanes, while units of
the US fleet resides in Bahrain and elsewhere
in the region.
If the Iranian oil ceases to flow, Saudi
Arabia and Iraq could plug the gap and
indeed, both have ramped up their oil
production recently with Iraq opening an
offshore export facility. Iraq could also look at
the pipeline option, thus bypassing the Gulf
altogether.
Qatar is awash with gas leading to huge
export figures going through Ras Laffan. Most
of the gas is shipped in large LNGCs, which
have seen charter rates soar recently on the
back of huge demand.
In addition, the petrochemicals industry is
expected to grow significantly in the area with
new refinery capacity coming on stream
coupled with chemical and products storage
facilities springing up.
Down the years, the ports and terminals
straddling the Gulf have spawned a massive
service industry to cater for the tankers and
gas carriers, plus other types of vessels, now
regularly calling in the region.
We have seen the growth of ports, such as
Salalah in Oman, Jebel Ali, Khor Fakkan and
Fujairah in the UAE. There are plans to
expand others, such as those in Bahrain, Qatar
and Iraq.
Taking Fujairah as an example, the waters
off the former small village have been used as
an anchorage for many years, long before the
infrastructure ashore was built. It is
strategically located just outside Hormuz and
apart from the anchorage, which still plays
home to around 100 vessels at any one time, it
has thriving bunker facilities, a large container
terminal, a drybulk loading terminal and an
ever growing number of product and chemical
storage facilities.
Bunker hub
The port is today the leading bunkering hub
after Singapore and Rotterdam and plans to
more than double its oil storage capacity to 7
mill cu m in the next two to three years. By
the middle of this year, Fujairah will have
been boosted still further with the opening of
a crude oil export pipeline connecting
Habshan in Abu Dhabi to Fujairah.
The commissioning of the $3.3 bill, 370 km
Habshan-Fujairah pipeline is due to take place
in April, or May and it will be ready to
transport oil a couple of months after this.
Once in service, the pipeline will handle up to
1.5 mill barrels per day, although according to
local reports, its capacity could increase to 1.8
mill barrels per day at a later stage.
This will give Abu Dhabi direct access to
the Indian Ocean cutting out transiting the
Straits and avoiding loading tankers at the
UAE’s oil terminals. The new pipeline is also
expected to lower shipping costs for the
UAE’s oil exports, as a premium is charged, if
the area is deemed a War Risk by insurers.
The conceptual design of the pipeline was
completed in 2006 and the construction
related contracts were awarded in 2007 with
the actual building starting on 19th March,
2008.
Again according to local reports, during the
first year of operation, the pipeline will enable
the Abu Dhabi Company for Onshore Oil
Operations (ADCO) to export roughly half its
total production. The pipeline is owned by the
International Petroleum Investment Company
(IPIC), an investment arm of the Abu Dhabi
Government.
The Murban blend crude will be carried
through a single 48-inch diameter pipe. The
project comprises the pipeline, main oil
terminal at Fujairah, offshore loading facilities
and the ancillary services needed.
Under the plan, a strategic crude reservoir
will be set up in Fujairah. The pipeline will
also serve a planned $3.3 bill, 200,000 barrels
per day refinery to be built in Fujairah by
IPIC, local sources said.
Tank farms have sprung up throughout the
area.
Fujairah is now a major oil storage port.
T
T
T
T
T
T
T
T
T
T
T
T
T
T
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 1
A.t Fujairah, there are already several oil
berths. For example, three were commissioned
in January 2006 (Terminal No 1) able to
handle up to 115,000 dwt tankers at 15 m
draft. Terminal No 2 was opened in June 2010
and has four berths for vessels of up to
180,000 dwt at 18 m draft.
According to the port’s website, another
1,000 m of berths are being built dredged
down to 20 m and a master plan is in place for
another 11 berths in the future.
Storage facilities
There are several independent storage
concerns in Fujairah, including Vopak
Horizon, which in 2010 decided to expand its
storage area capacity for products by 606,000
cu m.
The company said at the time, that this
expansion project was on the back of the
growing demand and development of a
refining centre in the Middle East region. As
a result, Fujairah was developing from a
regional hub into a global logistics hub. This
in turn has led to an increase in international
trade flows that fostered a growing need
for make-bulk and breakbulk services
and blending.
After completion of the expansion project in
the first quarter of 2012, the total storage
capacity will be more than 2.1 mill cu m, the
company said. The expansion consists of 20
new tanks with sizes ranging from 20,000 cu
m to 40,000 cu m for the storage of fuel oil
and clean petroleum products.
This year, a port spokesman said that
Fujairah planned to raise its overall fuel
storage capacity by about two thirds, as tank
operators expand.
The port will raise tank capacity to 10 mill
cu m by 2014 from about 6 mill cu m today,
general manager Mousa Murad said in a
March 12 interview with Bloomberg. He also
said that the Emirate may also add power
facilities and a natural gas import plant at the
site.
Fujairah is seeking to compete with
Singapore and Rotterdam as a hub for bunker
fuel. Traders in Fujairah supply about 24 mill
tonnes of fuel a year, Murad said, reported
Bloomberg.
Both the Vitol Group and Vopak lease fuel
storage capacity in Fujairah. In addition, State
Oil Co of Azerbaijan (SOCAR) is building a
terminal that should receive its first oil-
product shipment by the time that Tanker
Operator goes to press.
Murad said that his forecast for growth
assumes the completion of all tank terminal
projects planned in the Emirate. That includes
the potential addition of tanks on reclaimed
land at the Vitol and Vopak sites.
The SOCAR facility has a storage capacity
of 114,000 cu m, or about 640,000 barrels, of
oil. The 20 tanks will be able to store fuel oil,
gasoline, naphtha, middle distillate products
and blending components. A plan to further
boost its capacity to 350,000 cu m is also on
the drawing board, according to reports from
the area.
Meanwhile, it was reported earlier this year
that UAE-based trader Gulf Petrochem had
agreed to sell a 12% stake in its planned oil
storage terminal to the government of
Fujairah, according to Reuters. Gulf
Petrochem has been building a $136.4 mill,
412,000 cu m oil storage terminal in Fujairah..
Although outside the Straits of Hormuz,
Fujairah Anchorage could become a ‘sitting
duck’ for pirates. At as recent conference in
London, it was said local coastguard patrols of
the area were at best intermittent. There had
already been a reported attack only 65 miles
away, or so.
Most vessels anchor with their
accommodation ladders down ready to receive
the various supply boats operating out of
Fujairah. In addition, the anchored vessels are
usually floodlit as supplies and repairs are
carried out 24/7.
TANKEROperator

April 2012 12
TO
INDUSTRY - MIDDLE EAST REPORT
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 2
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 3
INDUSTRY - MIDDLE EAST GULF
Shiprepair sector has
its ups and downs
The Middle East Gulf area is home to four major shipyard complexes and several
smaller ones of varying capacities.
T
he four largest yards are ASRY,
Drydocks World-Dubai, Nakilat-
Keppel Offshore & Marine (N-
KOM) at Ras Laffan, Qatar and
the newest -Oman Drydock Company, located
at Duqm, Oman.
They have all experienced mixed fortunes,
but for ASRY, the return of VLCCs has given
the yard a welcome boost.
As for ASRY, the first quarter of 2012
mirrors the year 2011 for the Kingdom of
Bahrain’s Arab Shipbuilding & Repair Co
with the return of the large tanker market, a
company spokesman explained..
In the first three months of 2012 the Persian
Gulf-based repairer drydocked three vessels in
excess of 300,000 dwt for repairs, all owned
by the National Shipping Corp of Saudi
Arabia (NSCSA) and managed by Dubai’s
Mideast Shipmanagement – the 302,977 dwt
Marjan, the 317,788 dwt Wafrah and the
303,138 dwt Safwah.
Last year turned out to be an acceptable 12
months for ASRY. Following the false dawn
of an expected market upturn in 2010, the
year started slowly and then picked-up with
the Bahrain yard repairing a total of 200
vessels to the end of 2011.
An encouraging trend was the large number
of tanker repairs undertaken during 2011,
especially on VLCCs and LPG carriers. These
vessels came from the fleets of Iraq Oil
Tanker Co, Kuwait Oil Tanker Co (KOTC);
NSCSA (Mideast Shipmanagement); Vela
International Marine, Red Sea Marine
Services, Springfield Shipping, Greece, Sun
Enterprises, Greece; Pratibha Shipping, India;
MARCAS-V Ships, Monaco; Nordic
Maritime Services, Norway; Odfjell
Management, Norway; BW Fleet
Management, Norway; Pakistan National
Shipping Co; Selandia Shipmanagement,
Singapore and Thome Ship Management,
Singapore;
The total number of tankers repaired at
ASRY last year was 52 – including 13
VLCCs, seven large LPG carriers and 16
chemical tankers. Noteworthy, according to
the company, was the return of the large
tanker market, especially from Middle East
owners.
During 2011, ASRY repaired some 13
tankers of over 300,000 dwt, of which 10
came from the Arab market and three from the
international market. NSCSA/Mideast
Shipmanagement led the way with four
VLCCs: the 303,115 dwt Harad, and the three
300,361 dwt sisterships Ramlah, Ghawar and
Safaniyah.
KOTC drydocked three large tankers – the
317,250 dwt Kazimah III, 310,543 dwt Al
Salheia and the 310,513 dwt Al Shegaya, the
latter being one of the largest repairs in terms
of value during 2011.
Meanwhile Saudi Arabia’s Vela
International Marine also docked three
VLCCs - the 316,808 dwt Pisces Star,
316,476 dwt Aries Star and the 301,824 dwt
Alphard Star.
Finally, the three VLCCs from the
international market all came from Greek
owners. Two vessels were stemmed by
Springfield Shipping - the 303,184 dwt
Olympic Loyalty and the 302,789 dwt Olympic
Legacy, while Sun Enterprises docked the
301,824 dwt Chios.
In December of last year, ASRY completed
its $188 mill expansion programme with the
opening of a 1.38 km repair quay (see Tanker
Operator, January/February 2012, page 10).
N-KOM
Further north, last year, the giant N-KOM
shipyard received the first Qatargas-chartered
LNGC Al Wakrah to drydock at the Erhama
Bin Jaber Al Jalahma Shipyard, Qatar’s new,
offshore and marine hub at Ras Laffan.
The 1998-built 135,300 cu m Al Wakrah,
which is owned by a Japanese consortium led
by Mitsui OSK Lines and managed by MOL
LNG Transport underwent general
maintenance work, such as main and
generator turbine inspections, cargo pump
overhauling, main switchboard and high
voltage cargo switchboard maintenance,
electric motor overhauling, main boiler
cleaning, and hull painting at the yard.
The new yard was officially inaugurated on
23rd November 2010. Previously, there was
only a limited range of offshore and marine
services in Qatar. With the build up of
primarily gas carriers calling at Ras Laffan,
vessels will no longer have to wait for
drydocks to become available in Singapore,
the UAE, South Korea or China for general
maintenance work, the company said.
Nakilat’s fleet of LNG carriers is expected
to take up about 25% of the yard’s repair and
maintenance capacity at any one time, leaving
75% free for other vessels on a commercial
basis.
Highlighting the yard’s potential, the
company said that by 2020, some 4,000 ships
are expected to call at Ras Laffan port every
year.
Dubai complex
Further south towards the entrance of the Gulf
NSCSA’s VLCC Wafrah seen undocking at ASRY.
TANKEROperator

April 2012 14
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 4
INDUSTRY - MIDDLE EAST GULF
lies Drydocks World-Dubai. This huge facility
seemed to have been badly hit by the
economic events in the UAE and Dubai in
particular.
The repair company’s parent Drydocks
World (DDW) has been in discussions with its
main group of lenders to restructure its debt
obligations under its $2.2 bill syndicated loan
facility since late last year.
In a statement last month, the company said
that significant progress had been made over
recent months in all aspects of the
restructuring. As a result, DDW said that it
was confident that it would receive the
support of a majority of its syndicated lenders
to the terms of its debt restructuring.
Consequently, on 8th March 2012, DDW
presented the terms of its proposal and the
steps required to implement it’s plan along
with the associated timeline to all its
syndicated lenders. DDW has targeted a
completion date of all aspects of its
restructuring by July 2012, according to
Khamis Juma Buamim, DDW and Maritime
World chairman.
“The Company remains extremely confident
it can gain support for its proposals and that it
will secure the necessary support of its lenders
to successfully implement its’ restructuring.
This will leave the group in a strong position
to continue to develop and implement its
strategic plans,” said Buamim.
The company exceeded its budget in 2011 –
the actual EBITDA for CY 2011 for Drydocks
showed an increase of 65% over budget.
Strong growth has been witnessed by the
company over the recent past and at this point
in time, Drydocks Dubai expected to close CY
2012 with a higher EBITDA than budgeted.
Furthermore, the company has won
contracts totaling $255 mill since the turn of
the year, which puts it in a strong position to
achieve its 2012 business plan, Buamim
claimed.
The huge complex was designed and built
with three giant drydocks in the mid 1970s at
a time when it was envisaged that ULCCs
were here to stay and a 1 mill dwt tanker was
on the drawing board.
Today, the company has diversified into the
offshore and conversion fields, building
supply vessels, bunker barges, tugs and
converting older tankers and gas carriers into
FPSOs and FSOs.
Oman to open
Located outside the Straits of Hormuz at
Duqm is the brand new shiprepair complex of
Oman Drydock Company (ODC), which is
due to be officially inaugurated next month.
However, since it opened for business in April
2011, ODC has been gradually ramping up its
operations. Starting with the handling of
relatively small vessels, ODC has since
handled more than 32 vessels of varying sizes.
For example, last November, ODC received
its first LNGC, the Muscat LNG, owned by
Oman Shipping Corp.
As part of its mid-life service, the vessel
underwent an 11-day docking period at ODC
and was redelivered within the estimated 12
days.
The repairs included the mechanical
cleaning of the main boilers and the fire sides.
She was pressure tested and the LNG cargo
pumps, ballast pumps and the safety and
mounting valves for the main boiler were
overhauled.
In addition, the cable hangers and cables
were renewed at five locations and new cable
supports (20 sets) for the cable way were
installed during the passage and the core wires
were modified in tube type fluorescent light.
As part of the regular maintenance work, the
hull was recoated.
After docking at ODC, the ship loaded
LNG at the Qalhat Terminal and left for the
Far East.
DMC facilities
At the smaller end of the scale, Dubai
Maritime City (DMC) recently signed a Land
Lease (Mustaha) agreement for 25 years with
shiprepair and building entity, Dubai Ship
Building.
The area of the land is over 11,196 sq m
and is a shiprepair plot within DMC’s
business district.
“We continue to strengthen our operations
in Dubai Maritime City, since the formal
launch of the maritime district last year. This
partnership will help us take greater strides at
promoting the region as a global maritime
hub. We are keen to promote local and
international players within the City, which
will be a unique meeting point offering wide-
ranging choices for the industry,” said Khamis
Juma Buamim, chairman of Drydocks World
and Maritime World.
DMC’s head Bader bin Mubarak, said,
“Dubai Maritime City, being the mammoth
project that it is, has been a part of our long
term planning for relocating our extensive
projects. Being a part of the maritime history
of Dubai and representing the national spirit,
we at Dubai Ship Building aim to partner with
the pioneering group of Drydocks World and
Maritime World to further strengthen the
maritime industry within the region and bring
into focus national proficiency.”
Maritime activity at DMC primarily
revolves around the maritime and business
districts. The maritime district is built on
148,989 gross sq m of land and will be centre
for marine and maritime related facilities and
the industrial precinct of the business district
will cover a gross area of 519,780 sq m,
consisting of industrial and retail facilities.
Another company to pledge its support for
DMC was Goltens who last October carried
out a ground breaking ceremony of its new
office and workshop facility in DMC.
Goltens, which has a strong presence in the
Middle East and across 21 locations
worldwide, has signed a long term Mustaha
ground development agreement with DMC for
two plots within the complex. These are of
about 23,000 sq m each and have been leased
to the company for 25 years.
“When we announced the opening of the
maritime zone of the city in March 2011, we
were determined to develop Dubai Maritime
City as part of the Strategic Plan of 2014. The
vast collection of amenities and facilities
provided by DMC to encourage business by
sea is an opportunity for real growth and
development of this vital sector. Infrastructure
development is progressing rapidly and we see
heightened interest from companies all over
the world in this unique facility,” said
Buamim at the signing ceremony.
“The Middle East marine repair market is
expected to grow significantly medium to long
term and Goltens Dubai will for the
foreseeable future be a large hub for the
Middle East and we especially see a future
growth within our specialist core disciplines
diesel, in situ and mechanical”, said Paul
Friedberg, president – Goltens Worldwide
Services.
DMC has rapidly evolved since the launch
of Phase 1 in early 2011 when 110 units of
different sizes were constructed and declared
operational. More offices, shops, showrooms,
yacht manufacturing workshops, and
warehouse and workshop units will be
released on completion of Phase II.
April 2012

TANKEROperator 15
DDW chairman Khamis Juma Buamin.
TO
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 5
INDUSTRY - MIDDLE EAST REPORT
A few years ago, the Middle East countries started to invest in their own tonnage in an
effort to woo cargoes away from the independent companies’ hulls.
Gulf owners see a
brighter future
emerging
T
his has met with only limited
success mainly due to the general
downturn in freight rates
experienced for the past four
years, or so.
However, with the build up of refinery
capacity and petrochemical plants in the
region, those companies investing in
chemical/product tankers seem to have a
brighter future than those opting for large
crude oil carriers. Several companies chose
both.
One, Dubai-based Gulf Navigation
(GulfNav), could benefit from both the large
and the chemical/product sectors, as at the
time of writing, Asian refinery demand was
pushing VLCC rates north again. However,
whether this rise is sustainable in the wake of
an increase in the supply of vessels, remains
to be seen.
US and EU sanctions against companies
buying oil from Iran has already led to Indian
and Chinese oil importers seeking other
sources of crude oil, which could give the
market for large tankers a further boost by
increasing tonne/miles, given that some oil
will be imported from West Africa, the
Caribbean and the North Sea, despite other
Gulf states ramping up their production.
GulfNav is also active in the IMO II and
IMO III chemical sectors and in 2009, formed
Gulf Stolt Ship Management (GSSM), a joint
venture company with Stolt Tankers, to
provide a more focused and complete range of
integrated marine services. At present four
chemical tankers are managed by GSSM.
In addition, the company has two VLCCs
and eight chemical tankers, plus two VLCC
newbuildings, due to be delivered next year.
They are believed to have been fixed to
China’s Hainan Group for 10 years.
Also based in Dubai is Gulf Energy
Maritime (GEM). This tanker owner was
formed in 2004 as a joint venture shipping
company with Emirates National Oil Co
(ENOC).
GEM currently has the fleet of 19 tankers,
comprising eight modern Panamaxes and
nine chemical/product tankers- six MRs and
three Handysize vessels. Two Aframaxes are
to be delivered later this year from Samsung.
Profit downturn
Perhaps illustrating the problems facing tanker
owners and not only those located in the Gulf
was the annual consolidated financial results
for 2011 recently released by the National
Shipping Corp of Saudi Arabia (NSCSA).
Net profit totalled SAR287.8 mill,
compared to a net profit of SAR414.9 mill for
2010, a decrease of 30.6%. Earnings per share
from net profit (EPS) amounted to SAR0.91
compared to SAR1.32 for 2010, the company
said.
Gross profit totalled SAR339.2 mill,
compared to SAR557.4 mill for 2010, a
decrease of 39.1%, while operating profit was
reported as SAR229.5 mill compared to
SAR453.6 mill, a decrease of 49.4%.
NSCSA CEO, Saleh Nasser Al-Jasser, said
that the decrease in net profit last year was
due to the following reasons:
1) A decrease in average TCE rates in the
VLCC spot market, due to excess capacity of
tonnage resulting from the entry of new
tonnage into the market.
2) The expiries of three VLCC timecharter
contracts during the year, which had
negatively affected the results of crude oil
transport sector, in addition to the rising
bunker costs.
He said that other sectors had shown
improvement in their net income results,
which helped to minimise the negative impact
on the overall consolidated net income
compared to net income of last year.
The bunker subsidy item has been
reclassified, which impacted on the gross
profit and operating profit. Similarly,
corresponding items in the consolidated
income statement for the 2010 financial year
have been reclassified for comparison
purposes.
NSCSA currently owns a fleet of 17
VLCCs, manages 20 chemical carriers and
four conros. In addition, another five 46,000
dwt chemical carriers are due to be delivered
this year, plus a larger 75,000 dwt chemical
carrier to be delivered in 2013.
All of the chemical tankers are operated by
National Chemical Carriers (NCC), an 80:20
joint venture company with SABIC.
In 2009, NCC entered into a 50:50 joint
agreement with Odfjell and established an
operating concern in Dubai. The company also
has a 30.3% stake in LPG carrier operator
Petredec.
Saudi Aramco subsidiary Vela International
Marine, also managed from Dubai, currently
owns 15 VLCCs, one LR2 and five MRs.
According to its website, Vela also has up to
40 tankers ranging from VLCCs downward on
charter at any one time.
There are other companies in the Gulf, such
as Kuwait Oil Tanker Co (KOTC), a
subsidiary of Kuwait Petroleum Corp and
NITC, which is the subject of much
conjecture at present.
Just outside the Gulf is Oman Shipping Co
(OSC), which has 14 VLCCs, plus four more
on order; two LR2s; two methanol carriers;
two chemical tankers and two product tankers
in operation.
Middle East owners are strong in the VLCC
sector
TANKEROperator

April 2012 16
TO
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 6
INDUSTRY - CLASSIFICATION SOCIETIES
April 2012

TANKEROperator 17
IACS to submit CSR
harmonisation
rules to IMO
The International Association of Classification Societies (IACS) has a busy year coming
up, not least with the harmonisation of the Common Structural Rues (CSR).
The latest release of the IACS Blue Book package
continues and enhances our technical support to the
shipping industry through IACS work on research
and development both at the classification
and statutory level.
“
”
- Derek Hodgson, IACS Permanent Secretary
A
t IACS Council’s winter meeting
at the end of last year, the
members considered the current
position regarding the important
project to harmonise the CSR.
This will lead to the submission of the
harmonised rules to the IMO for verification
of compliance with the IMO Goal Based
Standards by the end of 2013.
During the meeting Industry representatives
from shipowning and shipbuilding
associations were consulted and their input
assisted in the preparation of a robust,
consistent and thorough set of rules, which it
is anticipated will be well received, IACS said.
Council also took the opportunity to
introduce new quality measures, which will
greatly enhance the performance of their
Accredited Certification Bodies who have
taken over the auditing of the 13 IACS
members.
Finally, under the leadership of Russian
Maritime Register of Shipping’s Pavel
Shikhov, IACS said that it was resolved to
support the CSR harmonisation process with
the continuing substantial investment of time,
finance and human force from its members.
In March of this year, IACS released an
updated version of its Blue Book. This is an
electronic library of technical resolutions (both
past and present) adopted by IACS, as a result
of its technical work for the benefit of
international shipping since its establishment
in 1968.
It contains -
IACS ‘Unified Requirements’, which IACS
members incorporate into their rules.
‘Unified Interpretations’ of IMO
convention requirements, which members
apply uniformly when acting on behalf of
authorising flag administrations, unless
instructed otherwise.
‘Procedural Requirements’ governing
practices among IACS members.
‘IACS Charter’ and ‘IACS Procedures’,
which define the purpose, aim and working
procedures of the Association.
‘Recommendations’ relating to adopted
resolutions that are not necessarily matters
of class but which IACS considers would
be helpful to offer some advice to the
marine industry.
‘UR - Unified Requirements Status’
advising on implementation status.
‘UR HF & TB’ containing the history and
technical background files for the Unified
Requirements.
‘Quality Documents’ containing QSCS
(IACS’ quality system certification scheme)
description, quality management system
requirements, audit requirements, ACB
(accredited certification bodies)
requirements and other quality procedures.
Improve access
To improve access, speed and availability of
the Blue Book at any time, the latest version
will be made available for downloading from
the IACS website.
Ship designers, shipbuilders, classification
societies, shipowners, shipbrokers, insurers,
associations, accredited certification bodies
and the shipping industry at large will be
able to download the package free of charge.
IACS permanent secretary Derek
Hodgson said; “The latest release of the
IACS Blue Book package continues and
enhances our technical support to the shipping
industry through IACS work on research
and development both at the classification
and statutory level.”
TO
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 7
TO
INDUSTRY – CLASSIFICATION SOCIETIES
Russian class society
speaks its mind
Currently, the Russian Maritime Register of Shipping’s (RS) chairs the 13-member
International Association of Classification Societies (IACS). RS is represented by its
director of classification and development Pavel Shikhov.
TANKEROperator

April 2012 18
S
hikhov took over the chair from
ClassNK’s Noboru Ueda at a time
when the class societies have a lot
on their plate with several major
issues coming to the fore in the shipping
industry.
In a wide ranging interview, Mikhail G
Ayvazov, RS’ director general gave its views
on a number of topics affecting shipping
today.
Perhaps the most urgent consideration is the
fitting of ballast water treatment plants in
view of the impending Ballast Water
Management (BWM) convention, which at the
time of writing was very near to ratification.
RS said that it urged shipowners to install
approved equipment as soon as possible,
ahead of the BWM convention ratification.
“RS strongly recommends to shipowners to be
aware of the development of the required
documentation and to choose the ballast water
treatment system for their ships with ballast
water volume less than 5,000 cu m,
constructed in 2009, or later,” Ayvazov said.
This is to be done without delay for the
following reasons:
1) According to rule B-3.3 of the BWM
convention, the first date of the Ballast
Water Performance Standard D-2
application, in case of the BWM
convention entering into force, will be
defined for the above-mentioned vessels.
2) It will be difficult to fit the ships with the
necessary equipment in such a short space
of time.
In the near future, shipowners will have to
modify ballast water systems on their existing
vessels. In the case of approved BWT systems
installation, the individual approach to every
vessel in service is required. However, the
integration of such systems on board vessels
under construction is much easier, as the
system can be designed into the vessel in
advance.
During the development of the project
documentation for BWT systems, for
installation on existing vessels, the following
is to be assessed.
A) Sufficient space in which to install the
system.
B) Adequate power within the electrical
system on board.
C) The provision of the required ballast pump
pressure in the event of a pressure loss in
the ballast water treatment system.
D) The possibility of the BWT system
installation subject to the existing ballast
system structure (eg, ballast pumps are
situated in different spaces, there are
several discharge outlets, cargo tank is
used as ballast water tank, etc).
In the event that there is not enough space to
install the system and its pipelines, several
decisions will have to be taken, such as to
place the system on deck in a container, or in
a cargo tank with the installation of an
additional bulkhead. In this case, RS will
review the technical documentation for
compliance with the RS’ rules.
Integration of a BWT system at the ship
design stage is an important issue for the
shipowner together with the classification
society. For example, in most cases at the
approval of technical documentation stage, RS
will require the corresponding calculations to
RS has specialised in the classing of ice class shuttle tankers.
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 8
T
April 2012

TANKEROperator . 19
INDUSTRY – CLASSIFICATION SOCIETIES
prove the system’s compliance with that of the
class requirements.
Arctic considerations
Turning the increasing summer use of the
Northern Sea route (NSR), the shortest
maritime routes connecting Northwest
European markets with the Pacific region pass
through the Arctic.
According to the experts, the NSR is about
35% shorter than the traditional southern
routes (through the Suez Canal) and therefore
may become a new alternative navigation
route. In 2010 - 2011 about 20 large tankers
and bulkers transited the NSR.
Moreover, the development of Russian
offshore fields in the Arctic requires an
effective transport system to supply offshore
oil and gas units and to safely ship energy
resources.
One of the solutions is to extend the
capacity of the NSR. Its safe navigation
should be accomplished with the aid of a
powerful icebreaking fleet, large Arctic ships,
plus communications, navigation and
hydrographic systems.
The icebreaking fleet is the basis for the
safe operation along the NSR, Ayvazov said.
Nuclear powered icebreakers enable the
efficiency of the NSR to be increased,
ensuring year round navigation in the western
part of the Arctic. An icebreaking fleet is
essential for ice navigation.
He confirmed that RS is currently involved
in all Russia’s icebreaker construction
projects. Besides traditional hull designs, the
most up-to-date icebreakers feature innovative
solutions. After the development of the
double-acting (DAT) ships, the next step for
ice class is an asymmetric hull.
Under the Russian Federal Target
Programme on ship construction, a new
asymmetric icebreaker (a project developed by
Aker Arctic Technology) will be constructed
to RS class by the Yantar shipyard
(Kaliningrad, Russia) in co-operation with
Arctech Helsinki Shipyard.
The vessel will feature a patented oblique
design with an asymmetric hull and three
azimuth propulsors, which will allow the
vessel to operate efficiently ahead, astern and
at other angles. The vessel will be able to
proceed at a continuous speed in 1 m thick
level ice both ahead and astern and in an
oblique mode, the vessel will be able to
generate a 50 m wide channel in 0.6 m thick
level ice.
In addition, the vessel will feature high
manoeuvrability during ice operations.
Besides icebreaking, the vessel may be used
for environmental protection purposes. The
additional functions of the asymmetric
icebreaker will include firefighting and rescue
operations, as well as ability to deal with oil-
spills on the sea.
In January 2012, RS took part in a keel
laying ceremony for the two multi-functional
icebreaking supply vessels ordered by SCF
Sovcomflot at Arctech Helsinki Shipyard. The
vessels are intended for offshore supply and
are being built as a result of an agreement
signed by SCF and Exxon Neftegas.
The vessels will be assigned dual RS/LR
class with the RS Class notation - KM(*)
Icebreaker7[1] AUT1 EPP OMBO FF3WS
DYNPOS-2 supply vessel.
In view of the growing interest/demand for
exploration and transportation of
hydrocarbons from the Russian Arctic, most
of the research studies RS is now undertaking
are aimed at the development of an adequate
and efficient regulatory framework for the
common use by all the parties involved,
Ayvazov explained.
These activities could further the idea that
the NSR could be an alternative seaway from
Europe to East Asia. The passage through the
Arctic Ocean is significantly shorter in
distance, but there are still many challenges to
be addressed, with a lot of work ahead to
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 9
TANKEROperator

April 2012 20
INDUSTRY – CLASSIFICATION SOCIETIES
Russian Register CEO Mikhail Ayvazov.
make the navigation along the northern coast
of Russia feasible, safe and economically
effective, he said.Today, with the growing
interest in hydrocarbons production and
transportation from the Russian Arctic, RS
foresaw a significant increase in the number
of large ice class offshore units, oil tankers
and LNG carriers designed to operate in heavy
ice conditions.
Enhanced documentation
Being seriously concerned about
communications improvement with RS’
clients, the class society recently launched an
optimisation programme for documentation
management, which will speed up and
simplify the applications and requests
processing, thus increasing efficiency of
information exchange, management and
access, as well as minimising its loss.
The class society explained that in recent
years, the number of applications and requests
from shipowners to RS had significantly
increased. The uniform system will connect
the RS divisions in 34 countries.
“All the changes will significantly benefit
our partners and clients and therefore are
essential for the wellbeing of our society”,
emphasised Ayvazov.
According to the class society, “RS
annually processes around 60,000 documents.
Timely implementation of the corporate
document management system will provide
reliable and effective document control at all
stages and will significantly benefit the RS
clients”.
The first phase of the project
implementation includes docflow
automatisation in 25 RS branch offices in
Europe and St Petersburg.
In addition, RS plans to broaden the range
of its services. Having gained experience in
in-service survey of modern LNGCs, in 2012
for the first time RS will provide technical
support during design and construction of this
type of vessel.
Two LNGCs of 170,000 cu m capacity each
will be built by STX Offshore & Shipbuilding
to a dual RS/LR class with RS acting as the
leading society. The RS class notation will be
- KM (*) Ice2 AUT1 OMBO EPP ANTI-
ICE LI CCO ECO-S WINTERIZATION(-
30) Gas carrier type 2G (methane).
The specific feature of these newbuildings
is a tri-fuel diesel-electric propulsion plant
allowing the use of the LNG cargo carried as
fuel. This will enable reduction of nitrogen
and sulphur emissions to the atmosphere,
which is an important step towards reduction
of the maritime transport share in the
environment pollution.
The agreement with STX Offshore on the
classification of the LNGCs triggered an
establishment of an additional RS office in
South Korea, which will technically support
ship design and construction, optimise co-
operation with South Korean shipbuilders, as
well as develop services in the region.
The Centre was established in line with the
RS’ strategic global expansion plans. The
main objectives of the newly established
office are:
To foster closer contacts with clients and
partners within one time zone.
To provide technical support to RS
surveyors involved in newbuilding projects
at Korean yards.
To render the full range of RS services in
newbuilding for Korean market, including
design review, surveys of ships during
construction, certification of marine
equipment.
To liaise and hold joint seminars with
representatives of the Korean maritime
industry.
The official opening ceremony and evening
reception took place on 7th March 2012 in
Busan. At the ceremony Ayvazov said: “Our
clients’ ambitious fleet construction plans
have prompted us to expand our global
presence, especially within the major
shipbuilding centres.
“The first RS office in the Republic of
Korea was established back in 1996 with the
main focus on ships in operation. Since 2005,
RS has continuously been involved in various
newbuilding projects in Korea and has
acquired substantial experience of co-
operation with the major Korean shipyards.
“The high-tech marine projects involving
RS participation in Korea range from Arctic
shuttle tankers to state-of-the-art drilling units.
These projects have enabled us to establish
good relationships with the local maritime
industry,” he said.
Another office has been opened in Panama
to facilitate the organisation of quality and
timely request performance in the Republic of
Panama, the US, Canada, Mexico, the
Caribbean, Colombia, as well as Venezuela
and Ecuador. This forms part of RS’ strategic
plans for the expansion of the class society’s
worldwide presence.
For example, the RS Regional Office for the
Atlantic Area, opened in December 2011 in
Hamburg co-ordinates all requests in Europe,
plus North and South America.
RS is also heavily involved in maritime
scientific research. On 19th December 2011,
the class society held the annual meeting of
the RS Scientific and Technical Council
(STC) Presidium.
Leading scientists and experts in the
maritime industry attended the meeting at
which STC members summarised the 2011
research results and prioritised future
developments.
STC was established in 1915 for maritime
safety scientific research co-ordination. Now
the council comprises about 300 leading
scientists and high-profile professionals
within the industry, representatives of
research institutes, design bureaus and
universities. TO
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 10
DNV takes on a more
proactive role in
vessel operations
By now, the maritime world now knows that the IMO requires that CO2 emissions from
vessels be regulated starting with all vessels ordered from 1st January 2013.
T
ankers will have to comply with a
specified Energy Efficiency
Design Index (EEDI), plus a ship
specific Ship Energy Efficiency
Plan (SEEMP) containing operational
guidelines for the vessel’s fuel efficient
operation, which must be kept on board.
The EEDI will become more stringent for
vessels ordered in future years. For example,
it is required to be reduced by 10%, 20% and
30% for vessels ordered from 2015, 2020 and
2025 respectively.
This is likely to drive both vessel designers
and equipment manufacturers to further
develop energy efficient systems, which could
affect the freight and secondhand market for
vessels. For example, when future vessels are
10 years old, they may be competing in the
charter market with newer vessels that are at
least 30% more fuel efficient.
To help shipowners, vessel designers, etc to
come to terms with this new index, DNV,
together with the independent privately-owned
German Hamburg Ship Model testing facility
HSVA, has published ‘DNV Fuel Saving
Guideline - for Tankers’. This is part of a
trilogy of guidelines - the other two concern
containerships and bulk carriers.
At the guide’s launch, DNV’s business
director Jost Bergmann illustrated this point
by saying recently MOL had sold a 14-year
old VLCC for recycling. Although the reasons
for selling the vessel were unknown to DNV,
Bergmann suggested that with today’s high
fuel costs, the vessel might not be as
competitive as when it was designed and built
in the mid 1990s.
With new designs offering up to 30% higher
fuel efficiency is is expected that charterers
will focus more on fuel efficiency in the
future, Bergmann warned.
DNV said that any measure considered for
reducing EEDI must affect one or more of the
index’s equation’s parameters. For example,
the most effective method is to reduce the
vessel’s design speed. A 10%
reduction in the design speed
results in at least a 25% reduction
in installed power, giving an EEDI
reduction of around 20%. It is the
installed power that reduces the
EEDI and not the power demand,
the guideline pointed out.
The Guideline listed some of the
possibilities on offer today for
reducing EEDI, together with the
parameter affected. DNV gave the
following examples;
M/e installed power reduction -
the hull and propeller efficiency
can be improved and/or the speed
reduction can be achieved by de-
rating the engine.
Lower specific fuel consumption – switch
to a more efficient engine/engine control
tuning.
Increase the speed without increasing
installed power – improved hull and propeller
efficiency (ie, fitting Mewis Duct, prop boss
cap fin, or other flow devices).
Fuel as an energy source with lower carbon
content - eg LNG, biofuel (no guideline in
place).
Innovative mechanical energy efficient
technology – eg kites (no guideline in place)
Innovative electrical energy efficient
technology – eg waste heat recovery.
Increase the capacity – larger vessels.
In addition there will be compensation
when using shaft generators and applying ice
strengthening. Other correction factors are
under development, eg voluntary structural
enhancements.
Some of the suggestions, such as kites and
solar panels, cannot provide the power needed
all the time for the main engine and thus the
EEDI will not be reduced. There are no
guidelines in place for the use of these
measures to reduce EEDI, but they are
expected to be developed at a later stage,
DNV said.
Propulsion efficiency devices are not expected
to reduce the engine power, but will enable
the vessel to attain a higher speed, while the
use of biofuels is not covered in the current
framework as their cargo content cannot easily
be ascertained.
Efficiency indicator
DNV said that it is essential to be aware that
EEDI is basically an indicator for the potential
fuel efficiency for a specific vessel for one
single operation condition – speed, cargo on
board, draft, trim etc. For most vessels, high
fuel efficiency over a range of conditions will
be preferred, based on the likely vessel
operations profile. This will require
considerations beyond what is required to
meet the IMO requirements.
The bottom line for fuel efficiency is very
much influenced by the vessel’s operation.
SEEMP can be regarded as a formality with
minimum content to guide the persons on
board to fuel efficiency. However, it can also
be an efficient and more detailed and practical
guide for those on board.
Updating SEEMP and the content’s
The Guide includes reference to hull coatings.
Source - International Paint.
April 2012

TANKEROperator . 21
INDUSTRY – CLASSIFICATION SOCIETIES
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 11
continuous improvement in line with TMSA is
an opportunity for those who wish to use
SEEMP as an active tool for the management
of fuel consumption, the guide said.
The guide then goes into the main fuel
saving elements and descriptions, such as
reducing hull resistance and their measures,
such as hull coatings, hull form optimisation
and propeller polishing/hull cleaning, giving
the costs and benefits accrued for each
measure.
A part of the guide is given over to
improving the propeller’s efficiency looking at
the separation in the aft body, frictional losses,
rotational losses, axial jet losses, hub vortex
losses, tip vortex losses and a combination of
several effects. This chapter analyses the
various types of propellers and attachments on
offer, such as the many
ducts and fins available.
Power plant efficiency is
also covered in depth,
including the low load/part
load performance, energy
recovery, other sources of
energy and other measures
that could be used for the
main engine. They include
engine de-rating, electronic
engine control, exhaust gas
bypass, variable turbine area,
shaft generator and waste heat recovery.
A chapter is included on operational
efficiency tasking in tactical speed
optimisation, weather routing and voyage
planning, trim optimisation, engine tuning and
performance monitoring.
Finally, the guide gives a summary in
tabular form of the upper bound of fuel
savings potential of the various measures
contained in the book, including the
percentage savings possible where applicable.
As for the future, DNV and HSVA said that
promising technologies are already under
development, which should be available soon,
including added resistance to waves, ship
performance modeling in realistic conditions
and the development of lightweight, composite
materials.
Both of the publishers pointed out that they
have advisory services available and the guide
comes with a ‘Return on Investment’ user
guide tool, for which a password will be
needed.
FellowSHIP project
The DNV led FellowSHIP project, involving
partners Wärtsilä, and Eidesvik, has now
reached its third phase.
This entails introducing an energy storage
capability in the form of a battery pack on
board an offshore supply vessel already fitted
with a fuel cell and powered by LNG.
Although being tested on board an OSV,
DNV’s principal researcher, maritime transport
and FellowSHIP project manager Bjorn Johan
Vartdal told Tanker Operator that this hybrid
energy system has the potential to be used on
board shuttle tankers, bunker and chemical
tankers, or any other type of vessel on coastal
voyages.
He also said a battery pack and fuel cell
could be installed on vessels for use when in,
entering, or leaving ports and harbours when
full power is not often needed. A battery pack
can easily be re-charged in port, once the
suitable infrastructure is in place. It can also
meet the requirements for redundancy.
The three-year old LNG-fuelled vessel
Eidesvik’s Viking Lady had already made
INDUSTRY - CLASSIFICATION SOCIETIES
TANKEROperator

April 2012 22
Eidesvik’s OSV Viking Lady is at the heart of DNV’s
FellowSHIP project.
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 12
INDUSTRY - CLASSIFICATION SOCIETIES
April 2012

TANKEROperator 23
history by being the world’s first vessel to be
fitted with a fuel cell as part of her propulsion
system. Once the battery is installed, the
partners claim that the vessel will be fitted
with a true hybrid system.
When the new system is complete, the
operation of the engine will be smoother and
more cost effective, giving further emission
reductions. For example, gas burning engines
can have a methane emissions problem, DNV
said.
The OSV’s fuel cell, which generates an
electric output of 330 kW, was installed in the
autumn of 2009 and has successfully run for
more than 18,500 hours.
DNV said that once the battery pack is in
place, the ship will operate using a hybrid
system similar to that which has been installed
in hybrid cars for a number of years. However,
the potential emission reductions are higher
and the return on investment period is shorter
for ships than it is for cars.
As for Capex, this involves the battery
energy storage system and the size of the
battery will be fully dependant of the vessel’s
size. For those vessels trading along the
Norwegian coast, Norway’s NOx Fund can be
triggered, whereby an owner investing in
environmentally friendly equipment can claim
a government grant towards the cost.
However, in most cases it will be the charterer
who will benefit from cheaper fuel costs.
As for Opex, this is dependant on the type
of vessel and its trade, although the benefits
will include reduced maintenance costs
and adherence to local emissions regulations.
Both oil majors and other leading charterers
are now looking for more environmentally
friendly ways of transporting cargo and
offering services, such as for the offshore
sector.
The primary potential benefits of the hybrid
energy system for a vessel, such as the Viking
Lady are a 20%-30% reduction in fuel
consumption and CO2 emissions through
smoother and more efficient operation of the
engines and fuel cell. The reductions of other
exhaust components are even higher, it was
claimed.
The whole shipping industry is currently
facing record-high fuel costs, which are
forecast to go up to about $1,320 per tonne by
2030, according to DNV. Based on these
actual costs, the return on investment period
for the hybrid system is estimated to be less
than two years.
Vartdal explained: “We know that the hybrid
system will reduce the energy consumption.
When operating, for example, on dynamic
positioning, there will be a major fuel saving
potential. When in harbour, too, the ship
should be able to operate on the fuel cell and
its battery power alone, which will reduce
emissions significantly. For environmentally
sensitive areas, this will be an essential
benefit. Additional benefits are related to
reductions in machinery maintenance costs
and in noise and vibrations.”
A comprehensive measurement programme
will be carried out to verify the savings
potential. The hybrid system will also be
modelled in detail. Calibrated and verified
process models will facilitate simulation and
optimisation of future hybrid systems for
various types of vessels.
New DNV class rules for battery-powered
ships have been developed in parallel with this
project. These are the first class rules
developed to facilitate the use of batteries to
be used as part of a vessel’s propulsion energy
- both as hybrid solutions and for ‘pure’
battery-driven vessels.
The first phase of the project from 2003-
2005 entailed a feasibility study into the
installing of fuel cells on board ship. The
second phase (2006-2010) involved the design
of the system and its installation on board the
Viking Lady, which took place in 2009. The
third phase was implemented this year when
the system will be tested onshore and the
simulation modeling will commence. The
whole project is due for completion in 2013
and on board testing and measuring equipment
will be installed.
FellowSHIP is financially supported by the
Research Council of Norway, which put up
some 40% of the estimated NOK37 mill total
cost with the three partners picking up 60%.
Henrik Madsen has become CEO of the
DNV Group.
Following the transfer of the
majority shareholding in KEMA,
DNV has established a group
structure to manage the strong
industry positions it now holds.
As of 1st March, DNV’s operations are
carried out through three separate companies -
DNV Maritime and Oil & Gas, DNV KEMA
Energy & Sustainability and DNV Business
Assurance. Each company in the DNV Group
has a dedicated leadership team.
CEO Henrik O Madsen has become CEO
of the DNV Group, which now has more than
10,000 employees and has offices in 100
countries. The company has a strong foothold
in the US, where DNV has 1,700 employees,
as well as in China where it has more than
1,200 employees.
“Historically, DNV has been strongest in
the shipping industry and this is still true
today. Our solid base in the maritime industry
has allowed us to branch out into the oil and
gas sector, where we now have a firmly
established presence.
“From there, we have expanded into
cleaner energy and built up our work in
certification. Now we are further expanding
into the fields of power generation and
transmission, gas distribution and sustainable
energy use by joining forces with KEMA,”
explained Madsen.
DNV Maritime and Oil & Gas,
headquartered in Oslo, Norway, provides
services to DNV’s traditional core markets.
The company has a strong foothold in the
offshore and oil & gas sectors. It is headed by
CEO Remi Eriksen, the former COO of
DNV’s Asian operations.
Tor Svensen continues in his role as
president of the maritime and oil & gas
division.
DNV KEMA Energy & Sustainability,
headquartered in Arnhem, the Netherlands,
provides services covering the entire energy
value chain from energy source to end user.
The company is headed by Thijs Aarten, the
former CEO of KEMA.
DNV Business Assurance, headquartered in
Milan, Italy, has operated as a separate legal
entity in DNV since 2010. It is one of the
world’s leading certification and is headed by
Luca Crisciotti, the former director of
operations of DNV Business Assurance,
division Asia and Australia.
DNV splits into three divisions
TO
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 13
TANKEROperator

April 2012 24
INDUSTRY - CLASSIFICATION SOCIETIES
T
his was the theme that ran through
this year’s annual meeting of GL’s
Hellenic technical committee, held
in Athens on 8th March.
The dramatic increases in fuel prices, new
regulations and an increased awareness of the
importance of protecting the environment are
leading shipbuilders, designers and owners to
push against the established boundaries,
developing smarter ships for tougher times.
Every year, this meeting brings together
representatives from the Greek maritime
community to hear and discuss presentations
from both GL and external experts.
Dimitrios Korkodilos, the chairman of the
committee and Athanasios Reisopoulos, GL’s
area manager for Southern Europe, joined with
the CEO of the GL Group Erik van der
Noordaa to welcome the participants.
The shipping industry was still going
through a difficult period, Matthias Ritters,
GL’s region manager Europe/Middle
East/Africa noted.
Looking over the status and outlook for the
shipping markets in 2012, the persistent
weakness of the world economy and the
oversupply in all segments would continue to
have a significant impact, Ritters said.
In shipbuilding, contracting at South Korean
yards had been relatively strong in 2011, he
said, but even so there was significant capacity
still idle at both South Korean and Chinese
yards.
Chinese yards had increased their capacity
over the past years and were taking steps to
further diversify their product portfolio, such
as large container vessels, LNG carriers and
offshore vessels.
The future
Looking ahead, he said, the impact of new
energy efficient ship designs would be felt,
while over capacity would put further
downward pressure on newbuilding prices.
Fridtjof Rohde from GL’s consulting
subsidiary FutureShip in his presentation
‘Chances of Improvement’ looked at how,
even in the tight conditions facing the industry
today, there are many opportunities for finding
and exploiting efficiencies to save fuel and
money.
He said that the use of new computational
techniques has opened up the design space for
shipping, both in the development of new
designs and in the ability to make
improvements during conversions or upgrades.
Upgrades to propellers, improving the wake
field and appendages, and installing new
‘smart’ software systems such as FutureShip’s
ECO-Assistant, could significantly improve a
vessel’s performance. While in newbuildings,
the use of computational fluid dynamic (CFD)
techniques to optimise the hull form of an
existing design, selecting the right engine and
‘smarting up’ auxiliary systems, could result in
improved competitiveness and a better bottom
line.
Aristidis Efstathiou, GL business
development manager area Southern Europe,
concluded the meeting with his presentations
on ‘SEEMP: Introduction and
Implementation.’
Efstathiou, highlighted the fact that the
SEEMP will soon become mandatory for all
vessels (larger than 400 gt) at their first IAPP
renewal, or intermediate survey after 1st
January 2013.
In order to support its clients, GL has
developed a clear guidance on the form and
implementation of the SEEMP. He showed
how GL’s user friendly standardised templates
and energy management expertise could make
it easier for a vessel’s operators to create a
SEEMP, either as a stand alone document or
as an integral part of a broader management
system.
New members of the committee included
Michael Androulakakis, technical manager of
Avin International, Chondros Pantelis,
technical manager of Efnav Co, Georgios
Kavounis, technical manager of Allseas
Marine, Dimitrios Kyriakakos, technical
manager of Goldenport Shipmanagement,
Kostas Maounis, managing director of
Phoenix Energy Navigation, Spyros Psychas,
technical manager of Odysea Carriers and
Stylianos Vatistas, technical manager of
Navarone.
GL discusses the
future of shipping at
Greek meeting
Hamburg-based class society Germanischer Lloyd (GL) has said that its goal was to
identify and seize chances for improvement in a difficult business environment.
Hellenic Technical Committee Speakers (from left to right): Christian von Oldershausen (GL
senior vice president global sales), Matthias Ritters (GL region manager Europe/Middle
East/Africa), Nicholas Skiadaresis (managing director of ENES Marine Service), Athanasios
Reisopoulos, (GL area manager for Southern Europe), Dimitrios Korkodilos (managing
director of Andriaki Shipping and chairman of the committee), Erik van der Noordaa (GL
Group CEO), Dr Tjerk de Vries(senior executive vice president classification) and Fridtjof
Rohde (GL FutureShip).
TO
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 14
H
e said that owners were asking –
how can I save money by using
the new conventions? How do I
avoid a lot of additional expense
in complying with these conventions?
Boardley noted that port state control was
increasingly looking at the management
systems on board a vessel in an effort to check
that the boxes are not just being ticked and
then forgotten about.
In ship design, gone are the days of
planning for 10 years hence, as shipowners
want an eco-friendly, efficient ship now. He
expressed fears that the EEDI calculations
could lead to the design of an underpowered
vessel.
LR is currently working on eco systems and
designs as Boardley believed that buyers
would return to the shipbuilding market by
next year. More designers are looking at
design systems, such as computational fluid
dynamics (CFD), even for redesigns. For
example, a lot more work is undertaken today
on optimising the vessels and their engines, he
said.
Boardley will take the chair at IACS in June
of this year and said that his agenda was to
push the association into playing a more
INDUSTRY - CLASSIFICATION SOCIETIES
April 2012

TANKEROperator 25
Owners looking for
eco-friendly vessels
At a recent presentation, Lloyd’s Register’s (LR) marine director Tom Boardley tried to
analyse the future of classification as he saw it in today’s difficult market environment.
significant leadership role at the IMO, as he
firmly believed that self-regulation worked in
the shipping industry.
“IACS needs to step forward again with a
louder voice, since the EU has recognised the
association as a legal entity,” he said.
New standard
Speaking of the new marinised ISO 50001
standard, Boardley said that it delivered real
payback in terms efficiency, especially in the
tanker sector in which OCIMF is developing
guidelines. He described the new standard as
“similar to SEEMP”.
Basically, the ISO 50001 standard enables
organisations to improve energy efficiency by
establishing an energy management system.
Through LR’s certification, gap analysis
and training services, the class society said
that it could help an owner, manager, or
operator to gain certification to the standard
and help ensure that the management system
meets the requirements.
LR explained that ISO 50001 is a certifiable
voluntary international standard that enables
organisations to ‘establish the systems and
processes necessary to improve energy
performance, including energy efficiency, use
and consumption’.
The requirements of the standard are similar
to any management system and can be easily
integrated into a company’s existing
management system.
Implementation of an energy management
plan can help -:
Develop a baseline of energy use.
Actively manage energy use and costs.
Reduce emissions without negatively
affecting operations.
Continue to improve energy use/product
output over time.
Incorporate specific energy efficiency plans
like the Ship Energy Efficiency Plan
(SEEMP) into a corporate energy
management system.
LR explained that the benefits of gaining a
certificate can -
Cut costs through increased efficiency.
Reduce energy security risks through
improved energy performance.
Increase stakeholder confidence (eg oil
majors) and employee engagement due to
organisational commitment to an integrated
climate change emissions reduction
strategy.
Create competitive advantage through the
implementation of industry best practices,
eg OCIMF energy efficiency guidance,
TMSA.
Improve productivity and compliance.
Formalise policies.
Integrate easily with existing systems and
Standards such as ISM, ISO 14001 and the
SEEMP.
LR said that any shipping company regardless
of its size and range of activities can be
certified against ISO 50001.
As for LR becoming involved, the class
society said that it could –
Conduct a gap analysis to ensure that your
energy management system meets the
requirements of the standard.
Provide certification against ISO 50001 to
enable an owner to increase his or her
energy performance and reduce the
LR’s marine director Tom Boardley.
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 15
organisational energy security risk.
Provide training to help educate staff: LR
offers both public and in-company training,
including customised training solutions.
Hector Sewell, LR’s head of marine sales and
marketing said that there was “a lot more
innovation in the market and the technologists
were getting the ear of the financiers.”
Today, a class society needed to conduct
quick engineering appraisals at the pre-
contract and contract stages. “Engineers know
the envelope of existing rules and how to help
satisfy those rules,” he said. He also thought
that risk assessments were no longer the
complete answers.
He urged owners looking to order vessels to
employ class before the finance and contract
stage to ensure the design process is a quality
operation. By and large, he said that LR’s
clients prefer to go by the rules in place when
considering a newbuilding.
ECA calculator
LR has also recently introduced an ECA
Calculator, a tool which is claimed to assist
with strategic planning for SOX compliance
with MARPOL Annex VI, Regulation 14.
At present, the majority of vessels choose to
comply with the current 1% ECA requirement
by operating with a fuel of lower sulphur
figure content where required. In the majority
of cases this is residual fuel oil. In the future,
however, in order to meet the 0.10% and
0.50% maximum allowable sulphur contents
required within an ECA from 2015 onwards
and in all other areas from 2020/2025
respectively, distillate fuel is likely to be used.
Crucially, however, MARPOL Annex VI
allows, under Regulation 4, the use of an
equivalent compliance method, which is at
least as effective in terms of emissions
reduction as the levels required by regulation
14 (which limits the sulphur content of fuel).
One of these methods is the use of an Exhaust
Gas Cleaning System (EGCS).
As a result of the current and impending
situation, (ie 2015 = 0.10% limit within an
ECA and 2020/2025 = 0.50% outside an ECA)
operators may need to evaluate their position
in terms of SOX compliance costs and
alternative options, LR said.
Decisions can be affected by a number of
factors, including the size and type of the fleet,
the time spent within an ECA, potential
introduction of additional ECAs in the future,
the relative cost of installing an EGCS (and
payback period versus age of the vessel), the
cost of fuel and price differential between
fuels of different sulphur contents and many
more.
In this complex environment, some
decisions may affect the viability of a vessel’s
service or operation. To assist with making
such strategic decisions (which may involve
either fitting an exhaust gas cleaning system,
or operating on distillate fuels), LR developed
the ECA Calculator.
Assuming a core (but realistic) operational
scenario and using inputs, which are easily
available, the ECA Calculator projects the cost
for the different scenarios in the future and, as
the reduced fuel sulphur content requirements
enter into force, allows for different fuel price
scenarios to be used.
Also, parameters which have increased
impact on the decision making process and,
quite often, are associated with a high degree
of uncertainty, can be easily adjusted
providing an instant update of the results. With
the ECA Calculator, LR said that it aimed to
provide a tool to support a company’s strategic
planning.
Ultimately, however, the input and decisions
are left with the user of this tool. The tool
should be seen as a relative and comparative
guide for reference and not absolute in its final
determination.
The main output of the ECA Calculator is a
fuel cost projection using either exclusively
fuel switchover (as per Regulation 14) or an
EGCS (as an equivalent compliance method).
The EGCS investment is also evaluated in
terms of Net Present Value (NPV) for which
the payback period is calculated.
In addition to these main outputs, other
useful information is calculated at different
stages of the tool, such as annual fuel
consumption figures, average cost breakdowns
for key periods, etc.
It essentially provides an estimate of the
annual fuel consumption, taking into account
machinery types and operational scenarios. By
combining the annual fuel consumption with a
simplified fuel price model (which is
dependent on price scenarios and cost of
different types of fuel required for
compliance), the future fuel cost is projected,
based on present fuel consumption and prices.
This is compared to the fuel cost using an
EGCS. The EGCS investment is then
evaluated by considering potential fuel cost
savings as positive cash-flows.
The ECA Calculator is designed to
accommodate up to six different cases,
compared side by side.
This allows quick comparison and evaluation
of:
Different ships in the fleet;
The same ship but in different operational
scenarios and time spent within an ECA;
The same ship but with different EGCS
configuration or type;
A combination of the above.
INDUSTRY - CLASSIFICATION SOCIETIES
TANKEROperator

April 2012 26
ECA calculator mechanics. Source: Lloyd's Register. TO
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 16
TO April 2012 p11-27_p2-7.qxd 29/03/2012 15:02 Page 17
O
INDUSTRY - PIRACY
The pirates have not
gone away
In the face of less reported piracy attacks in the Indian Ocean/Gulf of Aden region
during the last few months, experts have warned against complacency
saying that the problem has not gone away.
T
his was illustrated by the hijacking
of a chemical tanker in March of
this year. Although the number of
hijackings have been drastically
reduced – from March to December 2011
there were just three- the ransom level now
demanded is spiralling as the pirates become
more desperate.
Capt Philip Haslam, Chief of Staff EU
NAVFOR, at the recent Navigate/IPTA
Chemical and Product Tanker conference said
that the use of private armed guards had made
a difference by way of alerting the military to
a vessel’s exact location when under attack, or
threat of attack.
He claimed that around 70% vessels passing
through the area were adhering to Best
Management Practice (BMP) - others claim
the figure is nearer 80%. However, we warned
against what he called ‘tokenism’ that is just
agreeing to comply with BMP without
actually doing anything about it, or just
addressing it to a minimum, thus claiming to
be compliant.
He also said that the shipping industry,
including the authorities, needed to weigh up
the cost of protecting vessels in the High Risk
Areas (HRA) against the economics of
providing such protection.
Vessels at designated anchorages were
proving to be cause for concern at EU
NAVFOR. For example, one of the major
concerns is a possible attack in the Fujairah
Anchorage, where normally around 100
vessels are gathered at any one time up to 25
miles offshore.
A precedent has already been set with the
hijacking of the chemical tanker Fairchem
Bogey while at anchor in Salalah, Capt
Haslam said. In this particular case, both the
Citadel and BMP proved to be ineffective.
Off Fujairah, vessels anchor with their
embarkation ladders down and are usually
well lit. The local UAE Coastguard patrols of
the area were of an unknown frequency and
duration, he warned.
He said that in general, while port security
was good, anchorage security was unknown in
the area. Illustrating his point, Capt Haslam
said that last year there was a pirate attack
reported within 65 miles of Fujairah. “The
strategic effect of pirates in Fujairah is
unthinkable,” he said.
He concluded by saying that the piracy
situation as a whole needed legal closure
aided by Masters’ testimonies. He also called
for greater efforts to trace the ransom money,
once it was paid.
Ashore, alternative livelihoods needed to be
developed to give the local people an
alternative to joining the pirate gangs.
EU NAVFOR has signed up to continue
naval patrols until at least 2014. This month
the force’s strength will be 10 naval vessels.
Speaking at the same conference, Harmut
Hesse, special representative of the IMO’s
secretary general for maritime security and
anti-piracy programmes, said globally there
were 544 attacks in 2011, compared with 489
the year before, a rise of 11.3%.
Total Average Number
2010 $79.8mill $3.19mill 25
2011 $146.2mill $4.87mill 30
2012*$9.4mill$4.7mill 2
Ransoms
Source - EU NAVFOR.
*To beginning of March.
TANKEROperator

April 2012 28
EU NAVFOR - Captain Philip Haslam.
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 1
INDUSTRY - PIRACY
Looking at the figures on a regional basis, in
Southeast Asia and the Malacca Straits, there
were 113 and 22 attacks reported, compared
with 134 and zero respectively in 2010.
West Africa saw the biggest jump to 61
attacks last year, compared with just 14 in
2010.
As for East Africa, including the Gulf of
Aden/Indian Ocean areas, there were 287 in
2011 as against 172 the year before.
Speaking specifically at the Indian
Ocean/Gulf of Aden situation, he said that the
2011 pirate success rate went down to 33 from
the 50 recorded in 2010 (11.5%, compared
with 29%). The number of vessels held by
pirates fell from 45 as at January 2011 to just
14 by November last year and falling by a
further one by the end of December.
Vessels held
At the end of last year, 13 vessels together
with 261 seafarers were being held, compared
with 28 vessels and 656 seafarers at the end of
2010. As of March this year, the number of
seafarers held hostage had dropped to 246, but
the number of vessels remained the same.
Hesse, said that the reasons for the apparent
success in the Indian Ocean/Gulf of Aden
regions were:-
Naval forces patrol.
LRIT data provision.
Improved guidelines and BMP
implementation.
Imprisonment of 1,000 pirates and several
hundreds lost.
The use of PCASPs on board ship.
However, he warned that the consequences of
these actions had lead to the pirates expanding
their geographical reach, for example, up to
1,750 miles off the Somali coastline, or 2.8
mill sq miles of ocean, plus the increased use
of ‘motherships’ often captured vessels and
dhows.
The increase in the number of attacks seen
since 2005 has led to several IMO and UN
Security Council resolutions and the forming
of the Contact Group on Piracy off the Coast
of Somalia (CGPCS), the Gulf of Aden
Internationally Recommended Transfer
Corridor (IRTC), the Djibouti Code of
Conduct (DCoC) and the Kampala Process.
He explained that the DCoC was formed in
January 2009 and today 18 of the 21 states in
the region are members. Its aims are to co-
operate in the investigation, arrest and
prosecute suspected pirates; interdict and
seize; rescue vessels, people and property; and
to agree a conduct for any shared operation.
The so called ‘four pillars’ are the
implementation of national legislation;
establish law enforcement/coastguard
capability; capacity development through
training and other technical assistance and the
improvement of maritime situational
awareness.
In addition, information sharing centres are
being set up, such as the MRCC in Mombasa,
RCC in Dar es Salaam, a regional security
information centre in Sana’a, Yemen and a
regional training centre in Djibouti, which is
due to be opened by the end of this year.
He said that the IMO’s guidelines were
continuing to be revised, as was BMP, now in
its fourth edition, with more experience
gained. In addition, the IMO is working on
guidelines to assist in the investigation of
piracy and armed robbery against ships.
Interim guidelines on the use of PCASCs on
board ship in the HRA will be reviewed. They
are split into three circulars aimed at
shipowners, flag states and coastal states. He
said that around 25% of all vessels transiting
the HRAs embark armed guards.
Under MSC 89 the use of armed guards was
deemed to be the sole responsibility of flag
states, although he said port states may have
different rules in place.
Future action by the IMO includes a
April 2012

TANKEROperator 29
IMO - Harmut Hesse.
SAMI - Peter Cook.
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 2
INDUSTRY - PIRACY
ministerial DCoC signatory meeting in May of
this year and a conference on counter-piracy
capacity building. MSC 90 will include a
high-level segment on arms on board ships.
He concluded that there were many
initiatives taking place to bring Somalia into
the maritime and social international
community in an effort to dissuade its people
from turning to lawlessness for a living.
Financial burden
Peter Cook, founder and director of Security
Association for the Maritime Industry (SAMI)
addressed the financial burden of Somali
piracy to the maritime industry last year.
He said that the total cost of anti-piracy
initiatives to the maritime industry in 2011
was $5.3 bill. This was split between -
Total cost of increasing speed when
passing through an HRA = $2.71 bill.
Fitting of security equipment and hiring of
private maritime security companies =
$1.11 bill.
Extra insurance = $635 mill.
Vessel re-routings = $583 mill.
Ransom payments = $160 mill.
Labour costs = $195 mill.
“And what of consequential losses”, he asked.
Costing the methods for countering piracy
taken from figures taken from an Oceans
Beyond Piracy (OBP) report, he said that the
three naval coalition forces, plus other forces
cost around $1.3 bill.
Taking around 80% of the 42,450 vessels
transiting the HRA each year utilise BMP 4
effectively, including the use of citadels costs
the industry $4.2 bill, while a significant use
of PMSCs for vessels transiting the HRA was
$531 mill.
Currently SAMI has 130 members out of
the more than 200 PMSCs claiming to offer
anti-piracy solutions in and around the Indian
Ocean region. Cook said that the growth in
companies was expediential with about three
to five per week springing up.
Demand growth for PMSCs is running at
around 25% and Cook claimed that reputable
firms were having to turn away business, as
around 90% of the unsuccessful attacks were
deterred by armed security teams, according
to EU NAVFOR and no vessel had been
successfully hijacked with an armed security
team on board, thus far, Cook claimed.
The attraction for PMSCs is that they can
see their income grow by 350% per annum in
this fast evolving market. For example, SAMI
members conduct some 95% of the armed and
5% of the unarmed vessel transits in the HRA,
amounting to about 1,500 per month.
As for the question of regulating this
fledgling industry, Cook said that there was a
major drive by its membership for self-
regulation, which he claimed “….would be
more nimble and responsive than a centralised
governmental organisation.”
The conference’s chairman Capt Ian Finley
of the IMO countered that any accreditation
should be undertaken by a legislative body, as
he said that a fleet may have vessels attached
to different flag states.
Cook said that the future lay in accrediting
SAMI members giving potential contractors
the ability to look at reports via the
association’s licensing process. PMSC
engagement contracts should be used, such as
BIMCO’s GUARDCON.
He also saw the need to formulate a training
and education structure for PMSC personnel
to put the maritime security industry under a
more professional footing. SAMI should also
represent this sector to industry bodies and
naval coalition forces to improve relations and
to provide information exchange for better
intelligence gathering.
Also in the future, Cook saw the need to
introduce an equipment, technology &
hardware (ET&H) division within the
association to promote a more ’holistic’
approach to maritime security and take
advantage of new technologies designed to
mitigate the risk of maritime crime.
He also stressed that the association was not
just trying to address piracy off East Africa, as
the volume of world trade is due to increase
by 50% over the next 20 years, while at the
same time, the strength of western navies will
shrink by about 30%.
Offshore R&D is now taking place in
almost inaccessible areas, which will be
difficult to police and with the world’s
increasing population, cargoes will become
increasingly more valuable, putting huge
pressure on ports worldwide to cope with
security.
Legal aspects
The last word on piracy at the conference was
left to Ince & Co’s Stephen Askins, himself an
ex Royal Marine.
He outlined the onus placed on the Master
when making a decision as to whether to
transit the HRA and referred to the case of the
bulker Triton Lark and CONWARTIME 1993,
which was recently the subject of a
Commercial Court decision.
In this particular case, the Court considered
the true construction and implementation of
the CONWARTIME 1993 clause in a
timecharter on the NYPE form (Pacific Basin
IHX Limited v Bulkhandling Handymax AS ).
Bulkhandling was represented by Ince & Co’s
Michael Stockwood and Katy Hanks.
Triton Lark was chartered to carry a cargo
from Hamburg to China, via Suez and the
Gulf of Aden. The defendant owners refused
to proceed on that route, due to the risk of
pirate attack and instead proceeded via the
Cape of Good Hope. As a result, extra costs
were incurred, which a Tribunal held should
be borne by the charterers. The charterers then
appealed.
According to the various articles written
concerning this case, this appeal centred on
the construction of sub-clause (2) of
CONWARTIME 1993, in particular as to:
(i) The meaning of the words “may be, or are
likely to be, exposed to War Risks”.
(ii)Whether on the facts owners had made the
reasonable judgment required by the
clause.
(iii) Whether the clause gives owners a
discretion and if so, whether they are
obliged to make proper enquiries before
exercising it.
The charterers’ appeal was allowed. Owners
were required to show a ‘real likelihood’,
based on evidence rather than speculation, that
the vessel would be exposed to acts of piracy.
A refusal of orders required owners to make
an objectively reasonable judgment as to
whether such a real likelihood existed. In
order to do this, all necessary enquiries must
be made. If owners make enquiries, which
they consider sufficient, but do not make all
necessary enquiries, the judgment may still be
objectively reasonable.
The judge recommended that the award be
remitted to the Tribunal in order for it to
reconsider whether, in owners’ reasonable
judgment, there was a ‘real likelihood’ that the
vessel would be exposed to acts of piracy.
When the question arises - do I have to go?
- in the case of a Master refusing to transit the
Gulf of Aden, or Indian Ocean, according to
Conwartime – ‘War risks’ – includes acts of
piracy. ‘The vessel shall not be ordered to or
….through…any area….where it appears that
the vessel in the reasonable judgement of the
Master and/or the owners, maybe, or are likely
to be, exposed to War Risks.’
A Master can refuse if in his/her reasonable
judgment it -“maybe dangerous, or are likely
to be or to become dangerous to the vessel,
her cargo, crew….”
As to the question on whether to deviate
away from the area, thus prolonging the
voyage, here the key question is whether there
is a real likelihood that the vessel would be
exposed to acts of piracy in the sense that the
Gulf of Aden will be dangerous on account of
TANKEROperator

April 2012 30
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 3
April 2012

TANKEROperator 31
INDUSTRY - PIRACY
the acts of piracy, as the judge said. (The
case summary can be viewed on Ince &
Co’s website).
Askins warned that any decision must be
based on evidence and not speculation, while
‘dangerousness’ depends on facts and will turn
on the likelihood that piracy might occur and
owners can have regard to seriousness of
consequences.
According to the BIMCO Piracy Clause-
….’The Vessel shall not be obliged to proceed,
or required to continue to or through
any….area or zone….which in the reasonable
judgement of the Master and/or owners is
dangerous to the vessel…. due to any actual,
threatened or reported acts of piracy
…whether such risk existed at the time of
entering into the charterparty…..’
If an owner refuses to allow his vessel to
transit an area deemed at risk, then the
charterer must give alternative voyage orders.
However, if an owner consents to the passage,
the charterer must pay any reasonable extra
costs for protection and the possible use of
security guards and pay for hire for lost time.
If the vessel is seized by pirates, then the hire
is payable for 90 days, under BIMCO’s clause.
Turning to the use of firearms, Askins
explained that in the UK, licenses and permits
for the carriage of firearms are contained in
the Fire Arms Act of 1968. Under Section 5
(Licensing), the applicant needs an existing
contract and will have to have carried out a
risk assessment. Details of the weapons to be
carried and the personnel delegated to carry
them need to be submitted. For Export Control
licenses, local end user certificates need to be
attained.
He warned that when a company was facing
a crisis management situation, its aim should
be to minimise financial losses and to
safeguard its assets. In addition, negative
reaction needs to be minimised and any
personal liability needs to be reduced.
The main areas of concern once a vessel has
been hijacked is the possibility of general
average being declared where there is more
than one cargo owner involved. Another
concern is the possible low value of the vessel
today, compared with the ransom being
demanded and also the exclusion of all the
stakeholders in the negotiating process could
cause problems, Askins said.
He also said that choosing the right security
company is paramount. Here IMO Guideline
1405 should be adhered to and the personnel
involved should have the relevant experience.
All the parties involved should have a full
understanding of BMP and a knowledge of the
company’s structure plus the extent of the
insurance cover.
Following an incident at sea involving a
pirate attack, possible issues for armed guards
to be conscious of, is damage to the vessel
and/or its cargo, death or injury to the crew,
death or injury to third parties, the possibility
of criminal liability and any delay to the
vessel’s voyage directly caused by the security
company.
Askins was involved with the drafting of
BIMCO’s new GUARDCON clause. He said
that the key areas in this particular clause were
the contractors obligations, the Master’s
authority, insurance and liability and what is
called ‘knock for knock’.
He concluded by saying that a lot of
responsibility is now being put on the owners’
shoulders at a time when many stakeholders
are becoming involved in the anti-piracy
decision making, such as whether to avoid the
piracy areas altogether, to put armed guards on
board, or to do nothing. “The cargo owners
and charterers have been given a bigger stick
against the owners,” he warned. TO
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 4
INDUSTRY - PIRACY
TANKEROperator

April 2012 32
A
ccording to Harmut Hesse, special
representative of the IMO’s
secretary general for maritime
security and anti-piracy
programmes, also speaking at the
Navigate/IPTA Chemical and Products Tanker
conference, there were 61 attacks last year off
West Africa, compared with just 14 in 2010.
However, the Gulf of Guinea pirates aim is
totally different in that their goal is to steal
cargoes while vessels are at anchor and in the
case of tankers, transfer the cargoes in a ship-
to-ship transfer (STS) operation, rather than
hold out for ransoms.
To illegally take cargoes using this method,
medium size vessels are needed, most of
which come from Nigeria. Once transferred,
the cargoes are then taken to Nigeria, or
Cotonou in Benin.
One analyst recently told Bloomberg that
eight vessels were attacked last February,
raising the total to 12 for the first two months
of this year.
Tanker Operator talked with Richard
Mcenery of Ocean Protection Services (OPS)
about the growing problem and how
companies, such as OPS, can help.
He acknowledged that it is a lot more
difficult for vessels to enter the territorial
waters of the Gulf of Guinea with Western
security guards. He said that in most cases,
OPS uses local national navies. He also
warned that many PMSCs would be trying to
offer the same services, as seen in the Indian
Ocean/Gulf of Guinea.
However, he said that the local navies have
been doing a good job not to warrant PMSCs
working in the area. It is only in the last
month, or so that the situation started to
change in favour of the use of PMSCs.
Last resort
Countering criticism that private armed guards
would only escalate the problem, he said this
would only be a problem if PMSCs used
security guards with no understanding of the
rules for the use of force, as firearms would
only be used as a last resort.
As with the Indian Ocean/Gulf of Guinea
situation, Mcenery said that it would definitely
help by having PMSCs on vessels, as they
could liaise and co-ordinate operations with
the local naval forces. However, he said that at
present, he would only recommend the use of
armed guards on board those vessels already at
anchor.
One commentator recently said that the
Nigerian vessels could be easily pinpointed
using LRIT and/or AIS, but as Mcenery
pointed out, the pirates usually switch all
communications off, including the AIS, during
an operation.
He said that he didn’t think that this area
would become as big a hunting ground for
pirates compared with East Africa, as the Gulf
of Guinea tends to be a congested area. As
there will be more vessels in the area, the local
navies will have an easier task in identifying
the pirates.
Mcenery recommended that all vessels have
a risk assessment undertaken if they are to
enter the Gulf of Guinea in much the same
way as vessels transiting the Indian
Ocean/Gulf of Aden.
He explained that thus far, BMP4 was only
meant for protection against Somali pirates,
however, many of the procedures could be
used for vessels in the Gulf of Guinea. The
new BIMCO clause GUARDCON only
applies to security guards on vessels and does
not specify the area of operation. However,
this may change, Mcenery said.
Surrounding countries could not solve the
escalating problem unilaterally, but will have
Gulf of Guinea
problems hot up
While most of the world’s anti-piracy efforts seemed to have been focused on the Indian
Ocean/Gulf of Aden areas, problems in the Gulf of Guinea located on the other side of
the African continent have escalated.
Anchers and chaincabIes
all sizes and diameters directly available from our large stock in Rotterdam
www.wortelboer.nl
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 5
April 2012

TANKEROperator 33
INDUSTRY - PIRACY
to join together and create a unified naval
coastguard unit to tackle it, Mcenery said.
OPS is currently operating out of Lome,
Togo and Tema, Ghana and other countries are
being approached, but at present it is difficult
to get countries to allow PMSC operations on
their soil.
He said that future IMO initiatives should
include the helping of PMSCS open dialogue
with Indian Ocean bordering countries to
allow the free passage of armed guards
through their ports and harbours, which in turn
would make it cheaper for the owners using
their services.
Another factor working against the owners
is the cost of insurance. He said that OPS is
working with the insurance industry to
persuade insurers to offer a financial incentive
to those owners and operators using PMSCs.
“I can see this coming into effect soon,” he
said.
Finally, Mcenery thought that regulation
was needed to put maritime security
companies firmly on the map. He said that he
fully supported SAMI’s efforts to enable the
industry to be properly regulated, as he
thought that there were around 200 companies
operating unlawfully.
Call for action
Nautilus International has voiced concern
about an increase in violent attacks on
shipping off West Africa – and said that is to
urge shipowners to declare the area an official
high-risk zone.
The Union says it is disturbed by such
incidents as the recent hijacking of a reefer
vessel said to be the first case in which
Nigerian pirates have taken crew members off
the ship to be held hostage.
In another recent incident off Nigeria,
heavily armed pirates attacked an anchored
chemical tanker in Lagos roads and assaulted
the master before stealing his personal effects.
They forced the crew members to sail the ship
to a location around 80 to 100 miles south of
Lagos, where the pirates stole cargo from the
ship in a lightering operation.
Nautilus general secretary Mark Dickinson
said that the Union is calling for an urgent
meeting of the UK’s national warlike
operations area committee (WOAC) and is
also urging the International Transport
Workers’ Federation (ITF) to do likewise for
the International Bargaining Forum (IBF)
WOAC.
Following this, the IBF has declared a HRA
for the territorial waters of Benin and Nigeria.
The designation came into effect on 1st April
2012 in order to allow ship operators to make
any necessary preparations.
It affords the same benefits and protections
to seafarers in those areas as the HRA in the
Gulf of Aden and around Somalia, including:
the need for enhanced security measures;
advance notice of intent to enter the area; the
right to refuse to enter it; and a doubling of the
daily basic wage and of death and disability
compensation while within the area of risk.
The HRA provisions apply to all ships
operated under an IBF agreement. The ITF’s
Fair Practices Committee steering group will
decide on whether to also apply them to all
ships under non-IBF ITF agreements. IBF
agreements on high risk areas also provide an
indicator of good practice to national flag
registers. TO
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 6
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 7
I
t takes much the same successful format
as in previous years with a mixture of
meetings, seminars and dinners, but not
forgetting the social element.
Intertanko said that registrations for this year’s
event were still open.
“We sincerely hope that as many of you as
possible will join us in Singapore for this
year’s main tanker industry gathering – a place
to see old friends and make useful new
contacts, and to catch up on what makes our
industry tick,” the organisation said.
Despite rising costs for the hosting of such
events year on year, Intertanko claimed to
have been able to control costs with the result
that the cost to members will remain the same
as last year, with special discounts for those
booking early.
Although the exact scheduling will be
updated regularly on both the weekly news
bulletins and on the association’s website, the
initial itinerary says that the executive
committee meeting and council dinner, for
council members only, will be held on
Wednesday 9th May.
On Thursday 10th May the council meeting
will be held, followed by the annual general
meeting, which will be open to all members
and associate members. This is followed by
what for some is the highlight of the event, the
gala dinner, which is open for all registered
delegates.
On Friday 11th May, the event concludes
with a tanker seminar and a tanker chartering
seminar, complete with a tanker event table
top exhibition.
Invited to open the seminar is Singapore’s
Minister of Transport, Lui Tuck Yew and
among the latest confirmed speakers at the
tanker market session are chairman Jack Hsu
of Oak Maritime; Steve Christy, E A Gibson
Shipbrokers talking about the crude oil tanker
April 2012

TANKEROperator 35
INDUSTRY- INTERTANKO EVENT
Intertanko members
set to invade the
Lion City
Intertanko is holding this year’s annual event in Singapore between 9th-11th May.
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 8
It's not a MIRACLE...
MÌRACLE tank cleaning guide
[email protected]|www.chemserve-marine.com
INDUSTRY- INTERTANKO EVENT
TANKEROperator

April 2012 36
market; Geir Olafsen of Inge Steensland
taking on the subject of the chemical and clean
products tanker market and Petter Haugen,
DnB NOR Bank, who will tackle the subject
of slow steaming.
The session will also include a presentation
on the oil markets. The Piracy session will
include a speech by Commodore Bruce
Belliveau, deputy Chief of Staff Operations,
NATO.
As for the technical session, this will
include presentations and panel discussions on
innovations in technology to address the needs
of the tanker owner and operator in meeting
requirements on the following areas:
Ballast water management.
Air emissions.
Greenhouse gases.
Confirmed panel members include: Henrik
von Platen, Saudi Shipholding and chairman
of Intertanko ISTEC Committee; Hiroshi
Iwamoto, senior shipyard representative
and Sigurd Jensen, managing director,
Hamworthy Krystallon.
Further speakers/panel members will be
announced shortly, the organisation said.
Interactive session
An all day tanker chartering seminar will also
be offered in conjunction with the
association’s tanker event. This will focus on
current issues relevant to tanker chartering law
and practice, including the use of mock
arbitrations. These popular interactive sessions
illustrate key issues in a lively and thought-
provoking way, Intertanko claimed.
The venue for the event is the Conrad
Centennial Singapore, where a number of
rooms have been blocked booked for delegates
and their partners.
Meanwhile, the 29th session of Intertanko’s
North American Panel took place at Stamford,
Connecticut coinciding with Shipping 2012,
organised by the Connecticut Maritime
Association (CMA). Intertanko‘s panel event
proved highly successful with 50 attendees
made up of members, associate members and
guests.
Intertanko chairman, Teekay’s Graham
Westgarth, provided the panel with an
overview of the major issues that the
association is addressing to assist members,
the most important being the financial
sustainability of the tanker industry.
Jeff Lantz of the US Coast Guard (USCG)
also gave the panel a presentation on the latest
USCG issues affecting the tanker industry.
David Cotterell, OCIMF director, informed
the panel about the organisation’s most recent
activities, while Kathi Stanzel, Intertanko’s
deputy managing director, provided the panel
with a comprehensive update of environmental
issues on the association’s agenda.
Intertanko’s managing director, Joe Angelo,
reported on the most recent developments at
the association’s Executive Committee and
Council meetings and facilitated a lively
discussion on piracy.
Finally, the panel said goodbye to Richard
du Moulin, who had served as panel chairman
for the past 13 years. The panel thanked him
for his dedicated service and excellent
leadership and then unanimously elected
OSG’s Robert Johnston as the new panel
chairman.
TO
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 9
April 2012

TANKEROperator . 37
TECHNOLOGY - SHIP DESCRIPTION
Two MAN L27/38
engines to power
7,000 dwt tanker
Spanish concern Empresa Naviera Elcano has placed an order for
two medium-speed engines.
T
he main engines form part of a propulsion package for a
newbuild tanker. The MAN L27/38 engines will be
constructed at the MAN Diesel & Turbo facility in
Frederikshavn, Denmark and will power a 7,000 dwt asphalt
and products tanker to be built at Sedef Shipyard in Turkey.
The 6-cylinder main engines will each deliver 2,040 kW at 800
rev/min.
Elcano has chosen the engines as part of a MAN Diesel & Turbo
propulsion package that also comprises an Alphatronic 2000 propulsion
control system, an MAN Alpha VBS Mk 5 CP propeller, and a double-
reduction gearbox with multiple PTO clutches operating at 1,200 kW at
1,200 rev/min.
Characterised by its heavy-duty propulsion and manoeuvring power
performance, the robust L27/38 engine series is claimed to perform
well over the entire load range, offering an immediate load response
and quick acceleration.
The L27/38 is smokeless at idling, part-load and full-load, is
optimised for high-torque layout and emits low levels of NOx while
minimising fuel-oil consumption, MAN said.
The Sedef Shipyard is located in Tuzla Bay, near Istanbul and is part
of the Turkon Holding Group, a large international enterprise with
interests in shipping, tourism and shipbuilding, among others.
Based in Madrid, Elcano was founded in 1942 and is involved in the
shipping of bulk products. These include both solids, such as coal, ores
and grain, and liquids such as LNG, LPG, oil, oil products and
chemical products.
Including its global subsidiaries, Elcano is the parent company of an
international shipping group that manages its own fleet of 27 vessels
totalling over 2.2 mill dwt and include LNGCs, oil and
chemical/product tankers, LPG carriers and bulk carriers.
Principal Particulars- 7,000 dwt tanker
Type………………………………………Asphalt and products
Shipyard……………………………………………………..Sedef
Length, oa……………………………………………………110 m
Length, bp…………………………………………………105.7 m
Breadth………………………………………………………10.6 m
Draft, design………………………………………………….6.9 m
Deadweight at operating draft…………………………..7,150 t
Deadweight at scantling draft…………………………...8,450 t
Trials speed…………………………………..14 kn at 80% MCR
Main engine……………………………………2 x MAN 6L27/38
Rating………………………………2 x 2,040 kW & 800 rev/min
A schematic of MAN’s L27/38 medium speed engine. A model of the asphalt/products tanker to be built at Sedef for Elcano.
TO
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 10
TANKEROperator

April 2012 38
TECHNOLOGY - BWT INSTALLATIONS
Nynas opts for Alfa
Laval BWT systems
Swedish oil products supplier Nynas has commissioned four Alfa Laval PureBallast
ballast water treatment (BWT) systems ahead of the BWT’s convention’s ratification.
T
wo were fitted on board a pair of
newbuilding bitumen tankers while
two type 2.0 EX were retrofitted
on board another two bitumen
tankers that Nynas operates under bareboat
charter.
Explaining the company’s decision to install
the equipment now, Nynas project manager for
newbuilding Björn Karlsson said; “I think the
convention will be ratified quite soon, which
means that the international regulations will
most likely take effect within the next two
years. We at Nynas began preparing for
ratification about five years ago when we
started investigating options for ballast water
treatment on board the bitumen tankers we
charter.”
He said that to be prepared was the main
reason why Nynas decided in 2008 to
purchase and install Alfa Laval PureBallast
BWT systems on board two newbuild tankers.
However, he said that the decision to invest in
the system will end up saving the company
money in the long run.
“Our vessels typically sail in waters too
shallow for ballast water exchange,” he
explained. “That’s why we decided to buy
ballast water treatment systems on board two
newbuild tankers. The vessels we charter have
a ballast water capacity of less than 5,000 cu
m, so we didn’t have to comply immediately.
But by doing so, we avoid the costs associated
with retrofitting the vessels later.”
Selecting a ballast water treatment system
that meets Nynas’ criteria for health, safety,
security and the environment was also
important. The company has a comprehensive
policy in place and employs certified
management systems to ensure minimal
impact of its products and operations on the
people’s health and the environment, Karlsson
explained.
“We assessed the other IMO-approved
ballast water treatment systems available at
that time,” he said. “Nynas chose PureBallast
because we believe that it was the best system
available. Treating ballast water with a
chemical-free system is better for the
environment than the other systems. Plus,
PureBallast came with Alfa Laval engineering
support, equipment quality, and spare parts
and service availability in our trading area.”
As one of the first companies to install
ballast water treatment systems on board
tankers, Nynas claimed to have blazed the trail
for other tanker owners and operators. Trail
blazing is never easy, but Karlsson noted it has
been made much easier with the support and
service of a reliable partner.
“Nynas has a solid long-term business
relationship with Alfa Laval that spans more
than three decades,” Karlsson said. “We
appreciate the engineering expertise and
support that Alfa Laval brings to the table. The
two PureBallast 500 systems we ordered in
2008 for the (newbuildings) Ardea and
Mergus, for instance, were not Ex-approved
because such systems did not exist at that
time. But together with Alfa Laval, we
developed a solution for our vessels.”
Alfa Laval adapted PureBallast to Nynas’
requirements for operation in a hazardous
tanker environment with cargo at temperatures
ranging from 160 deg C up to 250 deg C.
Rather than installing the PureBallast system
below deck as on vessels carrying cargo that is
not potentially explosive, Nynas and Alfa
Laval decided to build a pressurised structure
on the vessels’ decks. A double-door
construction serves as an airlock and an over-
pressurised ventilation system creates a gas-
free zone to ensure safe operation. This
enabled system certification by Bureau
Veritas.
Support beyond design
Alfa Laval support and service, however,
didn’t stop after the design and certification of
the system but continued strong throughout
installation. In fact, said Karlsson, Alfa Laval
was instrumental in allaying shipyard concerns
about installation.
“The Wuhan Nanhua Huanggang Jiangbei
Shipyard, which built the Ardea and Mergus,
is a relatively small yard with no prior
experience in working with PureBallast,” said
Karlsson.
“Alfa Laval arranged a trip to the Mawei
shipyard where PureBallast was being
installed on another vessel so our shipyard
workers could see first hand just how compact
and easy to install PureBallast is.
The old adage, “Seeing is believing,’ held
true in our case. The interaction between the
shipyard crews was priceless. It provided our
Wuhan Nanhua workers with full transparency
of the installation requirements for the
PureBallast system. Alfa Laval went the extra
The Alcedo was retrofitted at Falkvarv
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 11
TECHNOLOGY - BWT INSTALLATIONS
April 2012

TANKEROperator 39
mile for us, which really helped us a lot”, he
said.
Another advantage was that Alfa Laval
Shanghai provided a natural link to
PureBallast experts in Sweden in addition to
quick access to local support in China. This
gives Nynas, as well as other western-based
shipowners, close contact with experts at the
Alfa Laval head office in Tumba, Sweden,
while the shipyard in China has the same
direct contact with Alfa Laval Shanghai.
According to Karlsson, Alfa Laval’s global
presence and broad competence gives it a
competitive advantage over other BWT
manufacturers who only have local agents
nearby.
Alfa Laval Shanghai commissioned the
systems on board the two newbuilding
bitumen carriers at the end of February 2012.
Turnkey retrofits
Following the order for the newbuildings, in
July 2011, upon recommendations from
Nynas, Swedish shipowner Frederiet placed an
order for two PureBallast 500 EX, generation
2.0 - the second generation of the chemical-
free PureBallast systems - to be retrofitted on
board the bitumen tankers Alcedo and
Pandion.
Rather take on the challenge of managing
these projects, Nynas placed the job of
retrofitting the vessels in the hands of Alfa
Laval sub-contractor Marine Environmental
Solutions (MESAB) for design, class
approval, project management, integration to
on board systems, installation and
commissioning services.
“The advantages of having a turnkey partner
are obvious,” said Karlsson. “It was only
natural that we place our trust in Alfa Laval
and MESAB, the people who know the system
best.”
Karlsson said that he appreciated having a
turnkey ballast water treatment retrofit partner.
MESAB dealt directly with the shipyard
Falkvarv, where the ships docked for routine
service. The entire retrofit process, from pre-
survey and engineering survey to installation
and commissioning services, took about three
weeks from start to finish.
To determine the placement of equipment,
MESAB conducted a pre-survey, which
resulted in a detailed written report and 3D
drawing of the system layout. In contrast, the
engineering survey produced a set of drawings
that enabled pre-manufacturing of all major
piping in order to minimise vessel downtime.
Installation, startup and commissioning
services ensured proper function of the
system.
Commenting on the co-operation with
turnkey retrofit partner MESAB, Karlsson
said, “Accountability speaks volumes.”
Back in 2008 when the PureBallast systems
were ordered for the newbuildings, Nynas
asked Alfa Laval to develop an Ex version. As
a result, PureBallast 2.0 EX comes with
additional safety modifications for Zone I,
group IIC and temperature class T4, making it
suitable for installation on board most vessels
that carry ignition-sensitive cargo. It also
features the 40% power savings and operating
advantages, such as automatic flow control.
“The reduced power consumption of the
PureBallast 2.0 makes it easier for shipyards
to work with the designed power on board,”
said Karlsson. “This is especially true for our
bitumen tankers where available power is at a
premium.”
The PureBallast 2.0 EX’s modular design
enabled the re-use of existing ship ballast
water equipment and pipe work, which is
another big advantage for shipowners.
When talking about the best way to handle
Source: Alfa Laval/Nyas.
+, -, .-+
Owner FrederietAB FrederietAB
Bareboatchartererand
operator
NynasAB NynasAB
Flag Cyprus Cyprus
Shiptype Bitumentanker Bitumentanker
Sailingroutes NorthwesternEuropeincluding
theBalticandNorthSeasaswell
astheMediterraneanSea
NorthwesternEuropeincluding
theBalticandNorthSeasas
wellastheMediterraneanSea
Capacity(m
3
) 4,300 4,300
Length(m) 99.9 99.9
Beam(m) 15.86 15.86
Draft(m) 6.1 6.1
Deadweight(m/t) 4,700 4,700
Max.continuousrating(kW) 4,000 4,000
Servicespeed(knots) 14 14
Delivery 2012 2012
Builder WuhanNanhuaHuanggang
JiangbeiShipyard
WuhanNanhuaHuanggang
JiangbeiShipyard
$"
Ordered 2008 2008
Ballasttankcapacity(m
3
) 2,150 2,150
Typeofsystem PureBallast500 PureBallast500
Ìnstallation Deckhouseondeck Deckhouseondeck
-
--/
$, ,
Owner FrederietAB FrederietAB
Bareboatchartererand
operator
NynasAB NynasAB
Flag Sweden Sweden
Shiptype Bitumentanker Bitumentanker
Capacity(m³) 6,400 7,100
Sailingroute NorthwesternEuropeincludingthe
BalticandNorthSeasaswellas
theMediterraneanSea
NorthwesternEurope
includingtheBalticandNorth
Seasaswellasthe
MediterraneanSea
Length(m) 116.9 116.9
Beam(m) 18 18
Draft(m) 7.5 7.5
Deadweight(m/t) 7,130 6,996
Max.continuousrating(kW) 4,250 4,250
Delivered 2003 2003
Builder ShanghaiEdwardShipbuildingCo
Ltd
ShanghaiEdwardShipbuilding
CoLtd
Shipyardforballastwater
retrofit
Falkvarv Falkvarv
Managementcompanyfor
ballastwaterretrofit
MarineEnvironmentSolutionsAB MarineEnvironmentSolutions
AB
$"0)12
Ordered 2011
Ballasttankcapacity(m
3
) 2,550
Typeofsystem PureBallast500EX
Ìnstallation Belowdeckinthepumproom
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 12
on board systems, Karlsson had three words -
reliability, compatibility and convenience.
“That is the way we like to work with our
on board systems. At Nynas, we strive to have
as few suppliers as possible. It is better to
have a larger scope of supply from one partner
and then let them take complete responsibility
for the reliable operation of the equipment or
system,” explained Karlsson. “Reputation and
reliability matter a great deal to us. We’re not
just buying equipment, we’re investing in a
partnership and the knowhow, expertise,
resources and support that comes with it.”
Other Alfa Laval equipment fitted on board
Nynas’ operated vessels include purifiers, fuel
oil booster unit and fresh water generators.
For the time being, Karlsson did not
anticipate the placement of new orders for
PureBallast 2.0 EX system, or other Alfa
Laval equipment. He said that he planned to
keep a watchful eye on the four systems
currently in operation. He concluded that the
lessons learned from installing and operating
these systems put Nynas that critical step
ahead and ultimately make them better
prepared for 2016.
More than 250 PureBallast systems have
been sold thus far, including retrofits on more
than a dozen vessels. The system was type
approved in 2008. Selected owners choosing
Alfa Laval’s system include AP Moller-
Maersk, MOL, NYK, CMA CGM, Bernhard
Schulte and Hamburg Sud, plus various
shipyards in 15 countries.
Alfa Laval said that the system is
available to meet different vessel types
capacity requirements and that the installation
was backed by a global network of
support and services.
BWT state of play
At the last MEPC meeting, a lack of a
sampling standard delayed the convention’s
ratification, as the meeting was not able to
make a decision, which in turn held back some
of the major flag states from ratifying it,
explained Per Warg, business manager,
PureBallast.
Thus far, the number of flag states needed to
ratify the BWT conventions has exceeded the
minimum, but the amount of tonnage had still
not met the 35% target. The IMO’s BLG
committee will need to ratify the convention at
its next meeting and then present it the
following MEPC meeting at the end of this
year, or beginning of next.
As for the US, the first USCG rules are
expected to be put in place very shortly
roughly in line with the IMO’s convention,
however, the second phase due to enter force
in 2016 is described as very strict.
Today, Warg said that Alfa Laval’s
intelligence thought that around 1,200 systems
had been sold worldwide, as last year saw a
massive intake of orders. He said that around
15% of all newbuilding orders had a BWT
system specified in the design.
Although shipyards were responsible for
installing and integrating the systems,
shipowners were specifying which system to
use and were increasingly querying the type
approvals, as it has been found that systems
had been tested in brackish and salt waters but
not in fresh water, where different reactions
could occur.
As for Alfa Laval, he estimated that the
company had a market share of around 22%
with more than 250 systems sold and around
60 already commissioned. Of the UV type
market, Alfa Laval claimed 70% of the
systems operating at below 2,000 cu m per
hour capacity.
At present, the company has a capacity to
manufacture some 500 systems per year at its
base in Denmark, but was looking to expand
into Asia. The company was also looking at
the EX market for tankers.
The company said that there were filter
problems with UV systems and that supplier’s
were finding it difficult to support shipyards
when installing the systems. Once the rush to
fit systems starts, there will be a bottleneck
due to lack of drydock availability, together
with a lack of welders, fitters etc, while the
class societies will be weighed down with the
burden of approving all of the installations
needed.
Warg said that most owners were ordering
two systems and that it was not a problem for
redundancy purposes. He claimed that there
was little maintenance needed once a system is
installed.
TANKEROperator

April 2012 40
TECHNOLOGY - BWT INSTALLATIONS
Alfa Laval’s PureBallast system.
The retrofit took aound three weeks to accomplish.
TO
TO April 2012 p28-40_p2-7.qxd 29/03/2012 15:07 Page 13
D
NV Clean Design class notation is
a voluntary newbuilding
specification which covers most
aspects of ship design and
operation. For bilge water, Clean Design
stipulates a maximum 5 ppm of oil remaining
in the water after treatment, prior to pumping
overboard. MARPOL regulations stipulate 15
ppm.
In 2011, DNV introduced a 5 ppm type
approval process for marine bilge water
separators. Alfa Laval’s PureBilge was the
first system to obtain the new 5 ppm DNV
type approval certificate, which has also been
granted the US Coast Guard Certificate of
Approval.
According to Alfa Laval’s Pauli Kujala,
previously, shipowners specifying 5 ppm have
had to take the word of the equipment
suppliers that the system really does meet the
limit. Unfortunately, this has not always been
enough. Some systems actually have problems
reaching even 15 ppm under real life
conditions, claimed Alfa Laval.
While claiming that their equipment can
meet the limit, it is not unknown for suppliers
to simply adjust the oil-in-water monitor down
from 15 ppm to 5 ppm, so that it functions as
an oily water alarm with automatic stop.
In such cases, the equipment is not
removing the oil down to 5 ppm, as it simply
prevents it from being discharged overboard.
The bilge water then goes into recirculation
and fills up the bilge water tank. When this is
full, it is pumped to the waste oil tank and
when that has filled, then the ship has a
problem. It is in situations like these that
environmental infringements may occur, the
company explained.
In May 2011, the DNV 5 ppm Type
Approval Programme No. 771.60 became
available for certification for Oily Water
Separators (OWS) for the first time.
Alfa Laval’s PureBilge system was tested
according to this procedure and in December
2011 Alfa Laval obained Type Approval
Certificate No. P-13965 for PureBilge 2005
and 5005 (2.5 cu m per hour and 5.0 cu m per
hour).
Since its release on the market in June 2009,
PureBilge had been tested on board ships
under real life conditions and consistently
achieved results below 5 ppm, the company
claimed. The system gained type approval on
12th December last year.
Two notations
DNV Environmental Class notation reduces a
ship’s environmental impact due to air
emissions, sea discharges and accidental
damage to the ship’s hull. The notations award
owners and operators who choose to design
and operate their ships in an evironmentally
sustainable manner. The aim is to reduce the
emissions from each ship so that the overall
environmental burden from shipping is
reduced.
DNV Clean notation stipulates that the
vessel must be designed and operated in
accordance with current and future regulations
for protection of the environment. Technical
and management processes and procedures for
collection, transfer and storage of waste must
also be adopted.
This notation is based on the same clean
goals but is stricter. It stipulates that the
constructional design and operation of vessels
should be such that it minimises their impact
on the environment.
Clean and Clean Design class notations are
both voluntary environmental newbuilding
specifications. Important drivers of these
policies, especially for tankers, are the oil
majors’ environmental policies, which are
becoming increasingly stringent following
number of environmental disasters.
As cargo owners and charterers, the oil
companies typically demand higher than
normal environmental compliance from the
shipowners transporting their cargoes, such as
tanker owners and owners of offshore supply
vessels. The same applies to owners building
LNGCs and other ship types.
DNV pointed out that the image of the
individual shipowner and operator will clearly
improve with customers and authorities,
“…since the notation demonstrates that the
company’s policy is to be environmentally
proactive in order to prevent accidental
pollution as well”.
.
Clean Design aspects
Clean Design notation stipulates requirements
for controlling and limiting operational
emissions and discharges. These requirements
cover the most important environmental
aspects: Fuel tanks’ protection from grounding
damage; handling of sewage and garbage;
environmentally friendly antifouling;
combustion machinery emissions (NOx and
SOx); use of refrigerants; Green Passport
Inventory for recycling the ship; handling of
ballast water; handling of fuel oil; handling of
bilge water.
As stated in DNV’s ‘Guidance for the
Environmental Class Notations Clean and
Clean Design’, “….for Clean Design the
vessel must have bilge water holding tanks as
required for the Class Notation OPP-F, which
means that they must have required capacities
dependent on the engine rating. The
machinery space bilges must not be discharged
to sea, but be discharged to shore. Clean
TECHNOLOGY – BILGE WATER TREATMENT
April 2012

TANKEROperator 41
Alfa Laval leads the
way in bilge water
treatment
Shipowners seeking DNV’s Clean Design class notation can now specify a bilge
water treatment system that is certified according to the class
society’s new 5 ppm type approval process.
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 1
Design requires oil content of bilge water to
be less than 5 ppm.”
However, meeting DNV’s Clean Design
requirements for bilge water takes more than
setting the oil-in-water monitor to 5 ppm. The
treatment system must actually achieve 5 ppm,
Alfa Laval said.
Current MARPOL legislation stipulates that
separated bilge water containing 15 ppm, or
below oil in water can be discharged into
international waters. In reaction to increasing
environmental awareness in the shipping and
other industries, future legislation is expected
to be more stringent, requiring the limit to be
reduced to 5 ppm. For vessels trading in the
Great Lakes area it is already 5 ppm.
Since a growing number of shipowners are
specifying it and DNV now has a 5 ppm type
approval process for bilge water separators, a
MARPOL 5 ppm limit may not be far away.
IMO’s resolution MEPC 107(49), effective
from 1st January, 2005, for type approval of
bilge water separators for 15 ppm, specifies
that, in addition to the removal of oil from
bilge water, bilge water separators must be
tested with a stable emulsion (including fine
particles and a surfactant chemical).
What differentiates DNV 5 ppm type
approval testing from type approval testing for
15 ppm according to MEPC 107(49)?
Actually, very little. It is the same basic
process with one very important difference. As
stated by DNV, “…the 5 ppm bilge water
separator must be designed to operate in each
plane that forms an angle of 22.5 deg with the
plane of its normal operating position.” This
simulates a ship listing 22.5 deg.
This testing process has gone some way
towards simulating real life operating
conditions at sea. Although Alfa Laval
believes that it could have gone even
further and simulated sea heave. The
company saw this as confirmation of its
assertion that centrifugal separation was
the only effective technology for bilge
water treatment on board ships.
“The gyroscopic effect of the liquid
circulating at high speed inside the
separator bowl offsets pitching and
rolling,” said Kujala, senior business
manager, oily waste treatment systems,
Alfa Laval Marine & Diesel Equipment.
“The result is sustained high separation
efficiency. If traditional static systems were
to be tested with a realistic bilge water
‘cocktail’ under conditions simulating a
rough sea state 24/7 for 20 days, they
would immediately be eliminated.”
Many suppliers claim to provide the
DNV Clean Design performance standard,
but only Alfa Laval with PureBilge
currently holds the certificate.
PureBilge is the only system on the
market that provides a cleaning
performance in real life conditions of 0-5
ppm oil content in the water without
chemicals, adsorption filter or membranes.
This cleaning performance is unaffected by
sea heave, oil shocks or high solids loading
and no backflushing is required, the
company said.
Similar to Alfa Laval’s fuel oil and lube
oil separators, it offers the full automation
and remote control that will be required by
the unmanned engine rooms of the future.
No manual engagement is required.
The system is supplied with the fully
integrated tamper-proof BlueBox Bilge
Data Recorder, which locks in critical data
and encapsulates the whole sampling line.
In combination with PureBilge’s certified
performance, the result is assured
compliance – not only with IMO MEPC
107(49), but with the wishes of all who
demand a greener profile, the company
claimed.
TANKEROperator

April 2012 42
TECHNOLOGY – BILGE WATER TREATMENT
TO Alfa Laval’s PureBilge system claims to go down to 5ppm.
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 2
TECHNOLOGY- BUNKER OPERATIONS
April 2012

TANKEROperator 43
Bunker concerns
highlighted
What are the major concerns in the bunker industry?
D
espite many years of trying to
overcome problematic bunker
issues worldwide, problems
persist and with current changes
in legislation, they still could have far
reaching effects on bunker quality if not
handled correctly.
Speaking at the recent Navigate/IPTA
Chemical and Products Tanker conference,
bunker testing and fuel management concern
LR FOBAS’ principal specialist Timothy
Wilson said that another year has passed with
increasing uncertainty as to the favoured
directions the shipping industry will take in
order to meet the upcoming environmental
legislations.
The revised MARPOL Annex VI gives the
road map of the step-wise reduction in the
sulphur content of the fuel; for both inside and
outside the special areas called ECA–SOx.
Time will tell to what extent, the changing
environmental legislation will impact, apart
from other things, the quality of fuels that will
be available to the marine industry. Keeping a
close look at the quality trends and statistics
will help provide a better understanding of the
effects of these changes.
Based on the samples analysed by FOBAS
last year, just under 4% of the bunkers
exceeded the 95% confidence limit (>95R) of
at least one or more of the parameters
specified in table 1 or table 2 of ISO
8217:2010. This figure is based on the
comparison of all the analysis results against
ISO 8217:2010 regardless of the fact whether
the fuel was purchased in accordance with the
latest or earlier ISO 8217 revisions.
Off-spec fuels
When it comes to off specification fuels
(>95R), the FOBAS experience is very clear
that most of the off-spec fuels can still be
managed safely on board the vessel
minimising potential adverse effects on the
machinery plant. The suitability of the fuel is
dependent on a number of factors - the extent
to which the specific fuel parameter is off-
spec, the type and condition of machinery and
above all the effectiveness of the fuel
management systems on board to prepare the
fuel for use.
Due to these multiple factors FOBAS
continued to stress the importance of correct
procedures and best practices being adopted
and applied at all times from the bunker order,
delivery station through to the exhaust stack.
Comparing the results against the latest ISO
8217:2010 specs, gave FOBAS the advantage
to see a) how many bunkers did not meet the
specs for ISO 8217:2010 in 2011 and b) which
were the main parameters failing to meet the
required specification and particularly, for
looking ahead, determine which are the
quality concerns, that may be hindering the
supply of ISO 8217:2010 of compliant fuels.
The biggest contributor to the 4% off-spec
cases is the viscosity for residual and
distillates fuels at 33.5%, of which 0.5%
related to distillate viscosity. A surge in the
slight off-spec viscosity in the last two months
of 2011 was seen, which may be as a result of
new blending practices to meet the new
MARPOL Annex VI 3.5% limit, effective
from 1st Jan 2012. Higher viscosity fuels,
however, may be countered by the vessel’s
fuel pre-heat capacity to achieve the required
injection viscosity therefore the same may be
critical for some vessels but for others, the
higher viscosity might not be an issue.
Failure rate
Some 15% of these off-spec samples failed to
meet the required maximum sulphur content
limit of 1% m/m for use within ECA-SOx, as
per revised MARPOL Annex VI regulation
14.4.2. The samples which could not meet the
maximum sulphur content of 0.1% for use at
berth in EU ports equates to about 7%.
In total, the off-spec sulphur content, which
failed to meet the ECA-SOx and the EU at
berth requirements for residual and gas oils
respectively, counted to around 22 % of the
4%, which is high. However, no cases of off-
spec fuels - in excess of 4.50 % m/m - were
noted. With the increasing restriction of
sulphur content of the fuel, such high
percentage of off-spec samples emphasises the
importance and necessity of strictly adhering
to sampling procedures adopted.
Another concern for these off-spec fuels is
the presence of water in the fuel. Water in
most of the cases was not at excessive levels,
however, FOBAS identified just under 18% of
samples where the water content did exceed
the required limits, of which just under 2%
had high sodium content, suggesting the
induction of saline water in the fuel.
About 7% of the off-spec cases were due to
the presence of the abrasive catalyst fines of
Aluminium and Silicon (Al+Si) exceeding the
requirements of the ordered grade. Although
the Al+Si contribution of the off-specs is less,
the severity of their consequence if they are
not reduced to the recommended levels for
engine entry can be serious in terms of engine
fuel system and cylinder component damage.
Abrasive reduction
FOBAS data showed the average purifier
efficiency is around 60%, which suggests that
at any levels above 40 mg/kg, the ships need
to put special efforts in making sure that the
abrasives are being reduced by the amount
required to meet the recommended maximum
at the engine inlet of below 10-15 mg/kg.
Just above 1% of the 4% off-spec fuels
were as a result of the fuel failing the Total
Sediment test parameter. It must be
understood that potential problems associated
with sediments are based on the nature of
sediments present in the fuel and the stability
of the fuel, therefore it is generally difficult to
predict the extent and frequency of problems
that might occur, if at all, during the use of
such fuels.
This year we have seen a slight rise of just
above 1% of the 4% off specification cases
caused by the presence of used lubricating oils
(ULO) which may be attributed to the stricter
criteria to determine the presence of ULO in
the 2010 standard. This will need to be
monitored for a longer period in order to
determine whether this is the case.
Managing the unexpected by recognising
that marine fuel quality will remain a
challenge over this next one to two decades as
current statistics show some variants in trends.
The bottom line is that it does not change the
variants in fuel quality that can be expected.
Finally, invest in an effective bunker
management programme and integrate it into
the Ship Energy Efficiency Management Plan
(SEEMP), Wilson advised. TO
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 3
TANKEROperator

April 2012 44
TECHNOLOGY – BUNKER OPERATIONS
H
ighlighting the problems that
still exist over bunkers, North
P&I Club’s risk management
executive Alvin Forster gave a
P&I clubs take on the subject at the
Navigate/IPTA Tanker conference.
The main problems seem to have been
around for years, such as a quantity shortage
at the point of loading, incorrect specification
fuel ordered by the charterers, fuel remaining
on board (ROB) incorrectly calculated at the
time of onhire/offhire, fuel quality and the
physical loading of the bunkers.
What is happening? Some vessels’ crew are
agreeing to an amount of bunkered fuel less
than what was loaded and signing the bunker
delivery note (BDN) accordingly. There are
also reports of a ‘capuccino’ effect in bunkers
loaded at Singapore.
How is this happening? These incidents are
still occurring due to bunker suppliers’ alleged
tricks of the trade, including allegations of
internally redirecting fuel, false sounding
tables, split tanks and aerating the fuel to
increase its volume.
Prevention - a receiving ship’s crew should
have company issued procedures in place
(ISM) and these should be followed each
time, for example through bunker checklists.
Codes of practice should be followed and
the crew should exercise caution when signing
a BDN. In addition, letters of protest should
be used in commercial and MARPOL Annex
VI related disputes.
A company’s proper procedures should
include the taking of full sets of
sounding/ullages and temperatures of all fuel
tanks (whether nominated or not) on both
receiving vessel and bunker barge. This
applies to both before and after the bunker
operation.
On board quantities should be calculated
accurately using volume correction factors,
correct densities and allowing for trim, bunker
barges should be checked for suspicious, or
improper piping and air blowing
arrangements.
And if time allows, give the loaded
fuel tanks time to settle before taking
final soundings.
Incorrect specification - what is happening?
Prevention is better
than cure
P&I clubs are often left to pick up the pieces in terms of claims when a
bunker stem goes wrong for whatever reason.
- Alvin Forster, Risk Management Executive, North P&I Club
The success of any bunker quality or
quantity dispute will depend upon the
quality of evidence collected in
support of the claim...
“
”
Depending on the charterparty, either the
owner or the charterer will be responsible for
ordering and supplying bunkers. There are
instances where the incorrect grade, sulphur
content, or specification of fuel has been
ordered
How is this happening? Fuel bunkers may
be being ordered and arranged by non-
technical personnel and/or the charterparty
lacks sufficient information as to what
bunkers should be supplied, such as only
stating the viscosity.
Include a well drafted clause that provides
that bunkers supplied must meet a particular
specification and be suitable and fit for the
ship in question.
For example;
BIMCO fuel quality and liability clauses.
BIMCO sulphur content clause.
Specify ISO 8217:2010.
Ship’s crew to thoroughly check
nomination and spec before bunkering
commences.
Incorrect ROB declaration - what is
happening? Disputes relating to the amount of
fuel ROB arise between the owner and
charterer when finalising on-hire charges upon
completion of a charter period. Other disputes
can include the determining of ownership of
on board bunkers.
How is this happening? By the incorrect
calculation and/or declaration of ROB bunkers
at the start and/or end of a charter period, or
the incorrect calculation of loaded bunkers,
Wilson explained.
To prevent this, an independent bunker
survey should be taken when going on-hire
and off-hire and also consider independent
bunker surveys for bunkering operations.
However, during surveys the ship’s Chief
Engineer should not absolve all responsibility
to the attending surveyor and should carry out
his or her own calculations, while the ship’s
crew should maintain a clear daily record of
tank contents and fuel consumption.
Fuel quality
What is happening? The fuel can be received
out of specification, or contaminated, leading
to potential damage to the main and auxiliary
engines, resulting in periods of off-hire and/or
deviation while repairs are carried out,
resulting in a hull & machinery claim.
This could also affect a vessel’s speed and
performance, leading to breach in the terms of
a charterparty.
How is this happening? This can be caused
by the incorrect, or contaminated bunkers
received from the suppliers, coupled with the
vessel’s crew not identifying potential fuel
problems in a timely manner, or poor on board
treatment of fuel before use.
To prevent this occurring use on board fuel
test kits to carry out basic tests at start and
during bunkering, send fuel samples to an
approved laboratory and refrain from using
until the test results are known.
There should be a charterparty clause
inserted to allow laboratory testing but beware
of supplier evidence clauses. The vessel’s
crew should follow the correct on board
treatments, such as effective set up and
operation of purifiers, clarifiers and filtration,
while clear and concise on board records
should be kept in event of a performance
claim.
“The success of any bunker quality or
quantity dispute will depend upon the quality
of evidence collected in support of the claim,”
Forster said, before adding; “be proactive with
evidence.”
TO
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 4
T
his move was announced at IBIA’s
Annual Convention, held in
Barcelona last November, by its
acting chief executive Trevor
Harrison who told delegates that the
association would become more involved in
the ongoing discussions on LNG as a fuel at
the IMO.
The potential of LNG as a fuel for
commercial vessels has received considerable
attention of late. Several speakers at the
convention referred to the issue while
addressing industry concerns about the 2015
implementation of the 0.1% sulphur content
cap in bunkers used within Emission Control
Areas (ECAs).
In addition, one session was entirely
devoted to the prospects for widespread use of
LNG.
While there were some cautionary voices,
the focus on LNG reflected IBIA’s considered
view that now is the time for the bunker
industry to become involved in the
development of gas powered ships.
IBIA board member Nigel Draffin is to
work closely with the Society of International
Gas Tanker and Terminal Operators (SIGTTO)
to provide input into the development of
IMO’s Code for Gas as Ship Fuel (IGF-Code).
The annual convention did, however, cover
many other topics of concern to both bunker
suppliers and buyers. A record breaking 170
delegates registered for this event, which was
spread over three days.
IBIA chairman Bob Lintott remarked: “This
has been a highly successful convention. I am
especially pleased that there has been lively
debate from the first to the last sessions.”
While the debates were good natured,
several of the issues covered were
controversial, right from the keynote speeches
which put forward opposing views on the
impact of the 2015 ECA regime.
ECA views
Manuel Carlier, director general of the Spanish
Shipowners’ Association (ANAVE) and a
director of the European Community
Shipowners’ Association (ECSA), expressed
owners’ concerns. Arnaud Leroy, senior
project officer, European Maritime Safety
Agency (EMSA), who was also working with
the European Commission (EC) on the Marine
Fuels, countered with the case for continuing
with its proposals, which in some respects
April 2012

TANKEROperator 45
TECHNOLOGY- BUNKER OPERATIONS
Nigel Draffin addresses the conference.
IBIA to engage in
LNG issues
With the surge of interest in LNG as fuel, the International Bunker Industry
Association’s (IBIA) board took a formal decision last year to
“become more closely engaged in LNG matters.”
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 5
TANKEROperator

April 2012 46
TECHNOLOGY – BUNKER OPERATIONS
exceed IMO ECA requirements.
Carlier said that it was likely that bunker
costs for ship operators would increase by
between 70% and 100% while operating in
ECAs and that there would be a total increase
in operating costs by between 25% to 40%.
He asked: “Can this cost be passed to
customers in the freight market?”
Leroy emphasised the need to enforce
regulations and also pointed to claimed
environmental and health benefits of imposing
stricter sulphur limits. He also noted
uncertainties surrounding the impact of the
0.1% sulphur cap. He was particularly
doubtful about predictions of a modal shift
away from shipping.
He said: “Overall, the various studies offer
differing conclusions as to whether a modal
shift is imminent, which may in part, but not
entirely, be explained by the difference in
routes selected for their analyses. While the
Swedish, German and ECSA studies in their
high price scenario mainly foresee a
substantial shift from short sea shipping to
land-based modes, the COMPASS study
acknowledges that there will be a cost increase
and a change in transport volumes, but
concludes that ‘it is not expected that changes
in entry/exit points, or shifts in modal balance
(SSS to land) will take place’.”
This sanguine view was certainly not shared
by Interferry’s executive director of EU and
IMO Affairs, Johan Roos, who in a later
presentation strongly challenged the
suggestion that there might not be a modal
shift to land-based transport once the 0.1% cap
was in force.
He said that ferry operators were “baffled”
by the EC’s stance. He asked: “Who cannot
see that a 30% ticket price increase will not
cause a modal back-shift?”
This year’s IBIA Annual Convention will
held in Dubai, with a provisional start date of
7th November.
Later, following an election, IBIA appointed
Robin Meech (Marine and Energy Consulting)
and Ciric Cheung (Fratelli Cosulich Bunkers
HK) to its board from 1st April 2012.
They replaced previous IBIA chairman
Mike Ball (Gearbulk UK) and Mustafa
Muhtaroglu (Energy Petrol) who have served
seven and nine year terms of office,
respectively. Trevor Harrison was re-elected to
serve another term as acting CEO. The
announcement was made at the IBIA Annual
Dinner in London on 20th February this year
by vice chairman Nigel Draffin who became
chairman on 1st April.
Draffin took over as IBIA chariman 1st April
TO
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 6
April 2012

TANKEROperator 47
TECHNOLOGY- BUNKER OPERATIONS
OW Bunker has created a regional
management structure for its
trading division within Northern
Europe. 
The model, which has proven successful in
OW Bunker’s Asian operation, is designed to
ensure that as the company continues to
experience exponential growth and that the
trading division is fully optimised to continue
to deliver bunkering solutions for customers in
a dynamic and fast-paced way.
Commenting on the move, Götz Lehsten,
executive vice president, OW Bunker, said:
“OW Bunker has prided itself on its ability to
make fast decisions and provide customers
with a total bunkering solution that meets the
needs of their businesses. It means responding
quickly on quotes, and putting in place an end-
to-end service that gets fuel oil to the customer
on time, when and where they need it, and at
the right price.
“Northern Europe is a key region for OW
Bunker. And as we continue to grow at such a
rapid pace, it is vital that we invest in more
resource to ensure that we maintain the levels
of dynamism that we are known for and
consistently delivering the high levels of
service for our customers that our business is
founded upon.
“The new regional structure within Northern
Europe will ensure that this happens by
creating an additional layer of experienced
management within each Northern European
region, who have the experience and
responsibility to ensure fast decision making at
a local level,” he concluded.
The regions that come under the Northern
European regional management structure
include Aalborg, Copenhagen, Hamburg, the
UK and the Russian desk.
Kristian Nielsen, the current manager within
the worldwide trading division will become
regional manager for Northern Europe,
reporting to Lehsten. Jesper Schmidt will be
manager for Copenhagen, Rune Pejtersen for
Aalborg, Boris Gronenberg for Hamburg,
Andrew Ananiev for the Russian desk and
Robert Preston for the UK and India. All the
managers will report to Nielsen.
Fujairah expansion
In addition, OW Bunker has strengthened its
position in Fujairah and the Middle East with
the appointment of Sahar Zarghamian as a
bunker trader.
Zarghamian rejoins OW Bunker Middle
East, where she started her career as a bunker
trader before moving on to work as a trader
for a derivatives company in the region.
Jesper Jervild, OW Bunker’s regional
manager for the Middle East and South Africa,
said: “Strategically, Fujairah is a very
important area of operation, as one of the
world’s top three bunkering hubs and a rapidly
expanding port. Having highly trained staff
with a forensic knowledge of local operations,
and important local business relationships is
critically important to our continued success.
“With a global presence, influential local
business partnerships and a strong financial
backing, our team is able to provide customers
with competitive prices and tailored bunkering
and risk management solutions that meet the
precise needs of their businesses and
operations. We have experienced significant
growth in the Middle East in the past year and
I am confident that Sahar Zarghamian will
play an important role in contributing to our
continued development.”
Last year, OW Bunker Middle East moved
to larger premises in Dubai due to its positive
rate of growth.
Another bunker concern to open up in
Dubai is Cockett Marine Oil, a member of the
Grindrod Group.
The South African owned supplier and
trader opened of a new office in the Emirate
on 26th March 2012.
It is being managed by Chris Fletcher, who
previously working as a senior bunker trader
in the UK. He is assisted by fellow bunker
trader, Arron Rayner.
OW Bunker continues to expand
Checking bearings for degradation and
lubrication
Kittiwake Holroyd has launched
MHC Bearing Checker, a small
handheld device designed to
provide an instant indication of
machinery condition.
The acoustic emission-based instrument is a
cost-effective solution to monitoring an
unlimited number of machines on a periodic
basis, the company claimed.
Based on the detection of high frequency
activity that is naturally generated by
deterioration in rotating machinery, the MHC
Bearing Checker is simple to use as its
Distress® parameter removes the need for
machine specific interpretations.
If Distress® is greater than 10, the user
knows there is a problem and can instigate
further checks. A dB Level is also provided,
giving an indication of the overall noise of the
bearing - it increases with speed of rotation,
but also with degradation of the bearing, or
inadequate lubrication.
As the mechanical condition of machinery
deteriorates, energy loss processes such as
impacts, friction and crushing generate sound
wave activity that spans a broad range of
frequencies.
By detecting only the high frequency part of
this signal with special acoustic emission (AE)
sensors, it is possible to detect miniscule
amounts of activity, for example a slight rub, a
brief impact or the crushing of a single particle
in the lubricant.
Each measurement takes in the region of 10
seconds, requires no set-up, previous history
or knowledge of machine design details, such
as bearing type, number of balls or race
diameters for example.
The same Distress® interpretation is applied
across all machine types so by ‘deskilling’
technology, all maintenance professionals are
empowered to take a proactive approach to
predictive maintenance, making informed
decisions quickly and with confidence.
Martin Lucas, managing director, Kittiwake
group explained: “The MHC Bearing Checker
provides entry level condition monitoring at a
price that makes it a feasible addition to every
engineer’s back pocket. This is a simple, cost
effective means of spotting problems in
bearings, gearboxes, motors and pumps at an
early stage, ultimately saving the company
money by avoiding downtime.
“If maintenance personnel are empowered
to monitor condition themselves, identify
where action is needed and then check that the
action taken has solved the problem, then AE
has significant advantages of cost, speed,
flexibility and ease of field application in
comparison to other condition monitoring
techniques. The Checker’s real value stems
from collating historical data and trending,” he
concluded. TO
TO
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 7
TANKEROperator

April 2012 48
TECHNOLOGY - LUBOILS
Answers sought on
‘one fits all’ cylinder
oils boast
Leading Chinese shipowners are seeking further guidance on claims from certain
lubricants suppliers that a mid-range Base Number cylinder oil product can meet
critical challenges set by tightening environmental legislation on
the sulphur content in fuel oils.
A
s regulations on emissions tighten
over the sulphur permissible in
marine fuels, certain lubricants
suppliers have responded by
launching single solution cylinder oils that
they claim will perform consistently well with
a wide range of marine fuels.
While seemingly attractive, shipowners
operating in the key Chinese growth market
are already questioning whether the ‘one fits
all’ cylinder proposition will stand up to the
full range of operating conditions, particularly
in the context of the slower steaming that has
become commonplace across the industry as
owners pursue cost savings.
The reservations were voiced by leading
lubricants supplier Castrol Marine, which
adopted what it termed a ‘distinct position’ in
recommending that a range of cylinder oils is
required in order to enable a ship to operate
most efficiently, taking into account its fuel
sulphur content, engine power and cylinder oil
feed rate. Customers need a cylinder lubricant
that can allow its ships to operate safely,
without compromising engine performance, or
risking engine damage and achieve the large
fuel cost savings and emissions reductions
enabled by slow steaming.
The development of slow steaming practices
is a new variable that has made the equation to
calculate which cylinder lubricants offer the
most efficient cylinder lubrication solution
more complex, according to Castrol.
From January 2012, the maximum sulphur
content permitted by the IMO dropped from
4.5% to 3.5%. The allowed sulphur content of
fuel has already been cut in predefined
Emission Control Areas (ECAs) - the Baltic
Sea, the North Sea and the English Channel,
with North American coastal waters due to
follow - from 1.5% to 1% in 2010 and is due
to be cut further to 0.1% from 1st January
2015. The use of heavy fuel oil will still be
permitted inside ECAs, but only if ships are
fitted with sulphur scrubbers.
The potential attraction of a ‘one fits all’
lubricant that works with all bunker fuel types
is therefore easy to understand. However,
Castrol said that if the appropriate cylinder oil
lubricant is not selected under prevailing slow
steaming conditions, engines operating on sub-
optimal loads may face corrosion on piston
rings and cylinder liners. Using an
appropriate cylinder oil lubricant is therefore
very important to ensure the vessel gets the
optimum balance between sulphur content,
Base Number (BN) and feed rate, which
will enable to vessel to operate most
efficiently and avoid the risk of engine
damage.
Recent engine inspections suggest
that the desire for simplicity, which is
driving consideration of the ‘one mid-
range BN fits all’ lube, may compromise
reliability and lead to engine damage,
particularly under slow steaming
conditions, the supplier said. It cites a
recent service letter from a leading
engine maker advising that, when ships
are slow steaming, operators should
increase lubricant feed rates due to
incidences of corrosive wear.
Castrol argued that increasing the BN
in cylinder oil is a better alternative to
having to increase federates for mid-
range BN cylinder oils when using
higher sulphur fuels. Only by having a
comprehensive range of cylinder oils to
choose from can owners hope to
maximise machinery performance over
time across the board, Castrol said.
Chinese disquiet
One of China’s largest tanker owners, China
Shipping Development Co, indicated its intent
to continue requiring a full range of cylinder
lubricants from its suppliers. The company,
which owns 79 tankers ranging between
40,000 dwt and 110,000 dwt in size, as part of
a larger CSDC operation, estimated that 20%
of the lubricants it uses are supplied by Castrol
Marine.
Liu Xun Wei of China Shipping
Development Co’s Tanker Company
marketing department, shipping division, said
that the owner considered a range of criteria
Castrol’s Paul Harrold.
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 8
TECHNOLOGY – LUBOILS
April 2012

TANKEROperator 49
when selecting lubricants. He added that the
company also set much store by developing
long-term relationships with its lubricant
suppliers, with Castrol having established
itself as a supply partner supplier over a period
of two decades.
“When we choose the lubricants we use, we
consider three main points,” he said. “Of
course, we consider the competitiveness of
pricing, but we also need to be convinced that
technical support and port coverage are
available. The third, no less critical,
consideration is that we can rely on a product
that is fit and right for purpose. We take
guidance from our trusted lubricants suppliers
on key performance indicators.”
Tommy Li, of SWS Ship Management
Maritime Consultant Co, was more explicit in
his concerns about how effective a ‘one fits
all’ approach could be in satisfying the needs
of ship operators under the new regulatory
regime. The company, which owns 10
handysize bulk carriers, has been specifying
Castrol oils for over 15 years and has built up
its usage of the supplier’s products to meet
100% of its greases, hydraulic oils and
cylinder oils needs.
“Clearly, as sulphur content levels are
restricted, the concept of a single solution
cylinder oil is quite appealing, but we are
sceptical,” said Li. “It promises an effective
and convenient resolution to a difficult
problem. But when it comes to a knowledge-
based answer, we are of the view that different
sulphur content fuels will demand cylinder oils
featuring different BNs. We feel more
comfortable with the different types of
products that Castrol supplies.”
Paul Harrold, Castrol’s technology manager
marine & energy lubricants, explained: “Under
certain high load conditions, a mismatch
between low fuel sulphur levels and cylinder
oil BN may lead to excessive deposits on
piston crowns, top lands and rings. These are
disruptive to effective lubrication of the liner
and may ultimately lead to damage of the
cylinder liners, bore polishing and scuffing.
This can, however, be avoided by using an
appropriate cylinder oil designed to counter
these problems.
“Castrol’s position is that the selection of
mid-range (50-60BN) cylinder oils as a
‘single’ solution for all fuel types will not
achieve optimal engine operations under all
load conditions. Opting for a mid-range
lubricant to cover all fuel types, could lead to
increased corrosive and/or mechanical wear
with consequent unscheduled and costly
maintenance costs.
“If a mismatch occurred between low
sulphur content fuels (1.0%) and BN, then
OEM guidelines suggest this would not be
apparent in performance terms until after 10-
14 days. However, if the mismatch were to
occur in the case of fuels featuring 0.1%
sulphur content, then operational problems
would emerge more quickly,” he concluded.
CSDC’s Liu was in no doubt of how critical
it was for shipowners to be kept fully aware of
the consequences for their fleets in selecting
cylinder oils. “We develop partnerships with
suppliers like Castrol who believe in the
future. When it comes to our newbuilds, we
can specify the type of new equipment that
will operate efficiently in line with new
legislation. When it comes to our existing
vessels we are particularly dependent on
lubricants suppliers to help us to ensure that
our equipment is operating to its maximum
potential in the current regulatory
environment.”
TO
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 9
TANKEROperator

April 2012 50
TECHNOLOGY - MANNING AND TRAINING
Videotel has launched a new
continuing competency manager
tool (CCM).
In a hard hitting message, Nigel Cleave,
Videotel Marine International CEO said
“Continuing competency in the maritime
industry should be at the very top of every
ship operator’s agenda. The education and
training of seafarers is key and the more
competent and well-trained the crew, the less
likelihood there is of costly accidents or
incidents.”
CCM is designed to identify and develop
the skills essential to safe and efficient
shipboard operations. It provides a one-stop
solution for training, assessment and record
keeping that will allow companies to develop
crew competence at every level, from junior
ratings to Master, or Chief Engineer.
Seafarer competence impacts on every
shipping company and the implementation of a
competency management system is crucial to
both running a safe ship and maintaining a
competitive advantage.
“Our training is both top-quality and highly
authoritative,” said Cleave. “All our material
is developed in conjunction with experts in the
field to make the learning process as effective
as possible. We include interesting and
informative video, dynamic animated content
and a substantial range of randomised
questions to really challenge seafarers to learn
and remember.
“Our training is not easy – we don’t want it
to be just a ‘tick-box’ exercise; we have
designed it to increase skill, ability and
onward development. That is certainly the
reason why our training is endorsed by many
professional maritime organisations,” he said.
Forming what is essentially a circle of
continuing competency, the CCM system
provides a CPD life cycle, which moves and
progresses with individuals and forms detailed
crew training schedules and reports as
companies plan, train, assess, record and
report all their training activity.
Developed and perfected over five years, it
uses cloud-based technology to provide
continuous training and assessment directly
through Videotel’s web Fleet Training
Administrator (webFTA) portal. This
empowers companies to take control of their
own competency solutions by giving them
access to a range of blended training tools
which are instantly available online, on board
and onshore.
Cleave concluded; “The challenge to the
maritime industry is clear. The Manila
Amendments coming into force are intended
to make sure that the highest standards of
seafarer competence are maintained globally.
“The old days of prescriptive learning are
gone, replaced by competency based
programs, using continuous assessment against
benchmarked standards. Videotel’s wide range
of top quality training material delivered
through Videotel on Demand (VOD) and our
newly launched secure web-based VOD
Online, delivers against that objective,
ensuring safe, efficient and cost-effective
operation on ships the world over,” he
claimed.
USCG signs up
One of the latest
concerns to select VOD
is the US Coast Guard
(USCG).
Videotel announced
the deal at the recent
CMA Shipping 2012
event.
USCG based in
Yorktown, Virginia,
trains Port State Control
Officers (PSCO) and
has taken delivery of
three VOD units.
The units are pre-loaded
with marine safety and
operational training
videos, computer-based
training materials (CBT)
and instructional
courses.
Comprehensive and
interactive, the training
material will be used by
the USCG to augment
existing PSCO training.
“We are delighted to be
supporting the USCG’s
efforts,” said Cleave.
“Towards the end of last
year we worked with the US Department of
Homeland Security’s Customs and Border
Protection agency to develop a training
programme, which offered a new and updated
approach to US Port State Control. We
welcome the opportunity to once again
contribute to the training needs within this
complex and important environment.”
Crew competency not a tick box exercise
TO
CEO Nigel Cleave makes a presentation to
USCG.
Videotel’s crew competency model.
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 10
TECHNOLOGY – MANNING AND TRAINING
April 2012

TANKEROperator 51
German ECDIS trainers expand networks
In the rush to get approved ECDIS
training certificates, a couple of
German training concerns have
signed up with training centres
and equipment manufacturers.
ETC, the MSG MarineServe operated ‘ECDIS
Training Consortium’, has reached agreement
with the Sir Derek Bibby Maritime Training
Center in Mumbai to act as its local partner.
MSG will provide its ECDIS training
courseware, ECDIS training systems and
approved train-the-trainer courses. In addition,
MSG will provide 24/7 certificate
authentication and trainee database services
for reference by its partners, customers, Port
State Control and other concerned authorities.
The Sir Derek Bibby Maritime Training
Center will deliver the training, which is
configured on a single, comprehensive,
training structure and methodology in order to
guarantee the quality and consistency of the
training.
This training centre is part of Bibby Ship
Management Group and was opened in April
2006 in Mumbai to provide a cost effective
solution to the global offshore and marine
industry’s increasing need for competently
trained officers.
As a member of the International Maritime
Contractors Association (IMCA), the Mumbai
training centre is dedicated to delivering and
developing the industry’s best practice
standards with international infrastructure and
faculties experienced in their respective fields.
Commenting on the agreement, Prakash
Agarwal, managing director of Bibby Ship
Management, India said: “Building on our 200
years of heritage and maritime legacy, we are
proud to provide a high class
shipmanagement, crew management and
training solutions to the global maritime and
offshore industries. We have been constantly
working to extend the best training facilities to
the international seafaring community.
“We are glad ETC has chosen us, Sir Derek
Bibby Maritime Training Centre, as their
training partner in India for their worldwide
consortium,” he said.
MSG MarineServe, as the driving force
behind ETC, is an established maritime
training company providing training solutions
covering ISPS Code requirements, German
and UK Flag State shipping law, loading
stability, English competence, radar and
ECDIS training.
MSG has been appointed to act as an
approved training agent and preferred
equipment-specific training provider for
Danelec Marine, ChartWorld, 7Cs, Transas
Marine, JRC, Raytheon Anschuetz, Sperry
Marine and Imtech.
ETC is a consortium of leading training
institutes again located in the main shipping
centres offering ECDIS courses based on the
MSG-courseware, standardised instructor
training and the MSG certification and
database facility.
One of the latest ECDIS manufacturers to
join MSG and ETC was Danelec Marine,
which signed up to be able to provide ECDIS
training services locally and worldwide.
The agreement with MSG includes ETC to
ensure that Danelec is able to offer a complete
equipment training service in support of its
global customer base.
The training provided by MSG and its ETC
partners is configured on a single,
comprehensive, training structure and
methodology in order to guarantee the quality
and consistency of the training while allowing
Danelec to monitor content, quality standards
and record keeping through a single point of
contact.
Commenting on the new collaboration,
Hans Ottosen, Danelec CEO, said: “We are
very pleased with the partnership with MSG
and ETC. We see a growing demand among
our customers globally for type-specific
training for our ECDIS solutions.
“The partnership with MSG and ETC
Danelec’s CEO Hans Ottosen.
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 11
ensures that our ECDIS offering is fully
supported by high quality and approved type-
specific training. With MSG’s training
facilities in nine countries around the world
offering ECDIS training combined with the
Danelec sales and service network in more
than 50 countries to support our user-friendly
ECDIS, we feel very confident in meeting the
total need for ECDIS for our customers
globally,” he said.
Web-based training
Meanwhile, Safebridge, a specialist in web-
based type-specific ECDIS training, has
teamed up with Japan Radio Co (JRC) to
develop type-specific ECDIS training for the
JRC ECDIS. J
JRC joins a number of other ECDIS
manufacturers in believing that online training
is the key to meeting the huge numerical
challenge set by STCW 2010, as Safebridge
already holds agreements with SAM
Electronics, Northrop Grumman Sperry
Marine, Imtech Marine, 7Cs, ChartWorld,
Raytheon Anschütz and Transas Marine.
With the implementation of ECDIS as the
primary means of navigation, and the now
mandatory training requirements, Safebridge
and JRC will provide seafarers worldwide
with an effective and easy solution to train
online and prepare themselves for their next
assignment.
Safebridge will develop the courseware for
use in its learning platform, which integrates
the central, server-based, learning content with
JRC’s own ECDIS software running in real
time for delivery via the Internet.
This process results in a standardised
product that guarantees the quality and
consistency of the training while providing
JRC with the transparency required on the
content, which will, of course, be approved
in accordance with STCW and Flag
State requirements.
Updates are simplified, as these are
implemented only on the central server.
Safebridge will also provide course
certification on behalf of JRC and trainee
database services for reference by Port State
Control and other authorities involved.
The courseware will be released in the late
summer of 2012.
Bas Eerden, product manager at JRC
Europe, added, “It is expected that tens of
thousands of vessels will be required to install
ECDIS over the next six years and we are
more than pleased with the partnership with
Safebridge. Effectively, with nowadays the
importance of the total cost of ownership, JRC
is content with this new and innovative way of
offering cost-effective JRC ECDIS type
specific training solutions to shipowners and
seafarers.”
TANKEROperator

April 2012 52
TECHNOLOGY - MANNING AND TRAINING
TO
Kongsberg expands in China- wins approval
for cargo handling simulators
Kongsberg Maritime’s China
division, Kongsberg Maritime
China, has opened its new
premises in Shanghai.
Staff and equipment were moved to the new
six-story, 5,060 sq m building during the first
quarter of this year while the official opening
ceremony took place on 15th March.
The facility features a state-of-the-art new
training centre, which incorporates a training
room, simulator room and instructor room.
This new facility is accredited as a DP
operator training centre in accordance with
Nautical Institute standards.
The existing premises, two kilometres away
from the new building, will be maintained for
Kongsberg Maritime product testing and
factory assembly.
Cargo handling
Kongsberg has also won an approval for
cargo handling simulation. It has been
approved to the latest DNV standards.
The Class A approval, received early March
2012, covers the ship models available within
the system and joins recent DNV certification
for Konsgberg’s engine room and navigation
simulators.
In addition to approval for its VLCC load
calculator system, Kongsberg has received
DNV certification for six ship models
available in the cargo handling simulator.
These are: LPG carrier, LNG-M (membrane),
LNG-S (spherical), chemical carrier, product
carrier and VLCC.
“It is important to ensure all of our
simulators have approvals to the highest
standards. It supports us in meeting customer
and industry demand for the highest quality
training tools while demonstrating that our
systems are designed to operate under the
most up to date legislation,” said Terje
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 12
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 13
Heierstad, product & technology manager,
Kongsberg Maritime.
The Kongsberg Neptune cargo handling
simulator also meets the requirements of
STCW section A-II/1, A-II/2, A-II/3, A-III/1,
A-III/2 and A-V/1 that states the requirements
for planning and ensuring safe loading, care
during the voyage and unloading of cargoes,
as well as maintaining seaworthiness of the
ship regarding trim, stability and stress.
All models within the cargo handling
simulator are based on real ships. Several
different simulator configurations are available
where the cargo control room may be
represented by any combination of interactive
mimic panels, operational panels, consoles
and/or desk-top stations.
“Because Neptune is based on the same core
software, it is extremely flexible. It enables
our customers to specify the exact
configuration they need and can be easily
upgraded, or expanded according to changing
needs,” explained Steffen Jensen, product
advisor, cargo handling simulators, Kongsberg
Maritime.
TO
Admiralty launches global ECDIS training
sponsorship initiative
Admiralty has taken a different
approach to ECDIS training by
offering sponsorship to 100 bridge
officers to undertake
comprehensive ECDIS training in
maritime colleges worldwide.
This promotion offers bridge officers from
anywhere in the world the chance to win a
place on a generic ECDIS training course
based on the IMO Model Course 1.27
(operational use of ECDIS).
The courses, which will be available from
participating training institutions, will provide
bridge officers the opportunity to develop a
comprehensive understanding of ECDIS-based
navigation, Admiralty said.
It is open to qualified bridge officers of
international trading ships, who can register
online for their chance to win ECDIS training.
Admiralty said that it is launching the
promotion to highlight the need for
comprehensive ECDIS training. UK
Hydrographic Office CEO, Ian Moncrieff
CBE, explained, “We believe the maritime
community needs to focus on mariner training
and especially providing practical guidance on
using ENCs to make the transition to digital
navigation successful.
“As an industry, we need to equip thousands
of mariners with the right skills to be
confident and competent in the use of ECDIS.
We have a duty to support the mariner and
comprehensive training is the only way to
overcome that challenge,” he said.
Admiralty said that the requirement for
ECDIS training is acute. Recent research by
SIRC demonstrated that bridge officers were
least confident about the use of ECDIS,
compared against four other key bridge
technology systems.
The research also showed that more than
half of respondents had used ECDIS before
completing any training ashore. In addition,
the number of mariners who require training is
significant; estimates range between 140,000
and 200,000 mariners to be trained in the next
six years.
Moncrieff continued, “The first deadline for
the mandatory carriage of ECDIS comes into
force in July 2012. We need to support bridge
watchkeepers to ensure they are prepared for a
new era of navigation. Clear and properly
accredited training will ensure they have the
skills to make digital navigation a success;
improving both the safety of life at sea and
bridge efficiency. We hope our promotion will
contribute by starting that process for 100
mariners.”
The training promotion is part of a series of
initiatives from Admiralty this year to help
deliver ‘Digital Navigation Insights’, as the
shipping industry is making preparations for
the mandatory carriage of ECDIS.
The initiatives are aimed to help the
maritime community confidently, safely and
successfully, integrate digital navigation into
both ship and shoreside operations as the
mandate comes into force on a rolling
timetable that begins in July 2012.
These initiatives also include the
development of a training module to promote
ENC knowledge, which will be offered to
maritime colleges around the world and a
series of free digital integration workshops.
The workshops were launched at Marintec
in November 2011 and have already featured
at Asia/Pacific Maritime in 2012 and at last
month’s CMA’s Shipping 2012.
TO
TECHNOLOGY - MANNING AND TRAINING
TANKEROperator

April 2012 54
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 14
I
t had been recognised that if all the
products in the IBC Code were
evaluated according to the current
criteria a large number of products
would be affected, with a number of high
volume products moving to Type 1, some also
to require carriage in independent tanks.
This would lead to serious shortages of
freight. Accordingly, the IMO has looked at
the criteria which trigger these carriage
requirements in order to examine whether a
higher ship type and/or tank type is
appropriate to the hazard in question.
It has been established that the prime
triggers are acute inhalation and dermal
toxicity, and the recent session of BLG
accordingly agreed that saturated vapour
concentration and behaviour in water should
be taken into account – if the product has a
low vapour pressure and is therefore unlikely
to be inhaled and evaporates, or sinks when in
contact with water, then it should be possible
to apply less stringent requirements.
She reported that a small group of pilot
materials is going to be used to test this
approach, which may then lead to amendments
of the criteria for assigning carriage
requirements in chapter 21 of the IBC Code
and subsequent amendments to chapters 17
and 18 of the Code.
The initial indications are that this approach
would lead to a number of changes in carriage
requirements, including some products moving
from type 3 to type 2, but would eliminate the
more drastic changes that had previously been
indicated without compromising safety.
Turning to the agreement in principle of the
application of inert gas systems (IGS) to new
tankers of below 20,000 dwt and new
chemical tankers, Strode explained that at
IMO’s FP 55 (July 2011), it was agreed that
the lower size limit for this should be 8,000
dwt and where appropriate vessels of less than
20,000 dwt would be allowed to use shore
supplied inert gas, rather than install an IGS.
In order to address the different operational
requirements on chemical tankers, these
vessels would be allowed to apply inert gas on
completion of loading, but before the
commencement of discharge, with application
to continue until completion of the tank
cleaning phase.
Amendments
Text is being developed for amendments to
SOLAS and the IBC Code to reflect these new
requirements and there will be a need for
consequential amendments to various
instruments, such as Fire Safety Systems
Code.
TECHNOLOGY – TANK SERVICES
April 2012

TANKEROperator 55
IPTA addresses
several chemical
carrier issues
At the recent Navigate/IPTA conference, Janet Strode, IPTA general manager, reported
that the concerns expressed by the industry in relation to the proposed review
of the IBC Code were being addressed.
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 15
TANKEROperator

April 2012 56
TECHNOLOGY - TANK SERVICES
The International Parcel Tankers
Association (IPTA) held a
reception at the Naval Club in
Mayfair on Wednesday 7th March
to celebrate the 25th anniversary
of its founding. As well as IPTA
members, the event was
attended by a wide variety of
industry representatives and IMO
delegates.
IPTA chairman, Hugo Finlay, managing
director of Essberger Tankers, commented in
his address on the importance of recognising
the substantial investment that chemical
tanker owners make in their sophisticated
vessels. He also noted that the organisation’s
aim remained the provision of sound
representation for the industry and a level
regulatory playing field under which IPTA
members could compete in a free and open
market.
In responding, the director of the IMO’s
Marine Environment Division, Stefan
Micallef, referred to the significant
contribution IPTA had made to deliberations
at the IMO on a variety of issues, particularly
in the provision of data on this highly
specialised sector of the industry.
The reception marked the close of the
annual Chemical and Product Tanker
Conference organised in London by IPTA and
Navigate Events, which in its fourth year
proved the most successful yet.
Some 180 delegates drawn from all sectors
of the industry gathered to hear analysis of
the chemical, product and biofuel markets, get
information on forthcoming regulatory
developments and discuss pressing issues,
such as how to implement the Maritime
Labour Convention (MLC) and deal with the
continuing threat of piracy.
IPTA turns 25
Hugo Finlay, Essberger Tanker’s managing director and IPTA chairman; IPTA general
manager Janet Strode; IMO’s marine environment division director Stefan Micallief.
It will also be necessary to give
consideration to cargoes that require oxygen-
dependent inhibitors and the implications of
the inert gas requirements on such cargoes.
With all this still to be done, Strode estimated
that that the earliest date for entry into force of
any new requirements would be January 2016,
but emphasised that this was purely an
estimate.
Strode also reported that after a number of
years discussing the implications of claims
made by the UK and a number of other EU
states that tankers were often operating in
conditions of reduced or zero residual stability,
the IMO has developed guidelines for the
verification of damage stability at both design
stage and on board.
At the IMO’s SLF 54 (January 2012), it was
agreed that there should be a mandatory
requirement for on board stability instruments
covering both intact and damage stability
requirements for new and existing vessels,
with associated performance standards. Text
needs to be developed for amendments to
MARPOL Annex I and the IBC Code to
reflect this, meaning that the earliest date
Strode estimated for entry into force is January
2015.
With regard to the carriage of biofuel
blends, Strode reminded the conference that
MEPC.1/Circ.7611 – Guidelines for the
Carriage of Blends of Biofuels and Petroleum
- is now effective and all such blends must be
carried according the provisions of the
guidelines.
Where the blend contains 75% or more
petroleum the cargo should be carried
according to the provisions of MARPOL
Annex I. The Oil Discharge Monitoring
Equipment (ODME) on the vessel must be
approved for the carriage of the blend in
question, although there is a waiver for this
requirement until January 2016 providing all
cargo residues are pumped ashore.
Where there is more than 1% but less than
75% of petroleum in the blend the product
should be carried as an Annex II cargo
according to a set of generic requirements
found within the guidelines. These generic
carriage requirements are also in the latest
edition of the MEPC.2/Circular and will be
included in chapter 17 of the next edition of
the IBC Code. In cases where there are 1% or
less petroleum oil, the product is to be treated
as the Annex II product in the blend.
Strode reported that the prohibition of the
blending of cargoes during the sea voyage, as
set out in MSC-MEPC.2/Circ.8, is to be
reflected in a new SOLAS regulation. The
draft regulation makes it clear that physical
blending refers to the process whereby the
ship’s cargo pumps and pipelines are used to
internally circulate two, or more different
cargoes with the intent to achieve a cargo with
a new product designation.
Cargo transfers
However, it does not preclude the Master from
undertaking cargo transfers for the safety of
the ship, or protection of the marine
environment and does not apply to the
blending of products for use in the search and
exploitation of seabed mineral resources on
board ships used to facilitate such operations.
Strode advised that a clarification had been
sought and confirmed that the prohibition does
not apply where cargo is recirculated within its
cargo tank, or through an external heat
exchanger during the voyage for the purpose
of maintaining cargo homogeneity or
temperature control, including when two or
more different products have previously been
loaded into the same cargo tank within port
limits. TO
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 16
TO April 2012 p41-56_p2-7.qxd 29/03/2012 15:36 Page 17
OBC-TO April 2012_Front cover.qxd 29/03/2012 15:15 Page 1