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TANKEROperator JANUARY/FEBRUARY 2008 www.tankeroperator.com Features: All is well in Denmark Chem/product future rosy Flag states promoting safety Shiprepairer expands Watch your ballast tanks Tank inspection vital Features: All is well in Denmark Chem/product future rosy Flag states promoting safety Shiprepairer expands Watch your ballast tanks Tank inspection vital

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Page 1: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

TANKEROperatorJANUARY/FEBRUARY 2008 www.tankeroperator.com

Features:All is well in Denmark

Chem/product future rosy

Flag states promoting safety

Shiprepairer expands

Watch your ballast tanks

Tank inspection vital

Features:All is well in Denmark

Chem/product future rosy

Flag states promoting safety

Shiprepairer expands

Watch your ballast tanks

Tank inspection vital

Page 2: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

· EMS New Building & Projects provides plan approval,design approval, new building supervision and commis-sioning services.

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At EMS Ship Management we believe in ship management with a ship owner’s approach and through dedication and innovation we will make a difference.

Please logon to: www.ems-shipmanagement.com for further information

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At EMS Ship Management- we provide complete lifecycle services for your ships...

Page 3: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

Technology

24 Shiprepair - Dubai still

calling the shots

30 Ballast Tank Coatings -

New rules explained

35 Tank Cleaning - Updated

guide published

37 Tank Gauging - Detection

system launched

Conference Report

TMSA - Topics discussed

included - should we follow

oil majors; blaming the 1970s;

crew retention.

January/February 2008 TANKEROperator 01

Vol 7 No 3

Tanker Operator

Magazine Ltd

213 Marsh Wall

London E14 9FJ

UK

www.tankeroperator.com

PUBLISHER/EVENTS/

SUBSCRIPTIONS

Karl Jeffery

Tel: +44 (0)20 7510 4935

[email protected]

EDITOR

Ian Cochran

Tel: +44 (0)20 7510 4933

[email protected]

ADVERTISING SALES

David Jeffries

Only Media Ltd

Tel: +44 (0)20 8674 9444

[email protected]

PRODUCTION

Vivian Chee

Tel: +44 (0)20 8995 5540

[email protected]

TANKEROperator Contents

Markets

Newbuilding contract should

ease the negotiating process

Denmark Report

Small country with large ambitions

Shipowners investing innew tonnage

Equipment base still important

Profile

Chemoil comes to terms with

tragic event

Chemical/Product

Tankers

New trades opening up

New refining capacity drives market

Ship Registries

Promoting safety at sea vital

Services upgraded

Barbados inspection initiative

03

12

04

SUBSCRIPTION

6 months (4 issues)

$142 /Eur110 /£75

1 year (8 issues)

$237/Eur185 /£125

2 years (16 issues)

$398/Eur310 /£210

Subscription hotline:

Tel: +44 (0)20 7510 4935

Fax: +44 (0)20 7510 2344

Email:

[email protected]

15

Front cover photo -Tanker newbuilding

negotiations could be made clearer with the

introduction of BIMCO's NEWBUILDCON

contract, which can easily be adapted to include

an owner or builder's own clauses.

Photo credit - Metrostar.

Printed by FISCHER Poligrafia

ul. Dabrówki 10

40-081 Katowice

Poland

24

21 38

Page 4: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

Are we anywhere nearer closure

in the Erika and Prestige cases?

The answer appears to be - No.

In the last few weeks, a US Judge has

exonerated ABS of liability for the Prestige

sinking while a French Court dished out rather

meaningless fines on those it deemed caused

the Erika to founder.

In each case, appeals are pending which

could result in the fallout reaching the 10-year

mark, especially with the Erika, which sank at

the end of 1999.

Who should shoulder the blame- class

societies, charterers, cargo owners,

shipowners, or managers? Depending on your

point of view, it could be either one of them,

or a combination of all of them.

They obviously all had a part to play in the

running of the vessels, as indeed with most

vessels. Did commercial pressures outweigh

the need for caution when allowing the two

vessels to load their cargoes and set sail?

Where were the Port State Control inspectors

just when you needed them?

Like the Titanic and Exxon Valdez before

them, these two incidents helped change the

face of shipping forever. Would we have seen

a single hull phase out, or Tanker Management

Self-Assessment (TMSA) being introduced? I

doubt it. Ports of refuge have also been

strongly debated since the Prestige case.

The tanker industry has come a long way in

cleaning up its act, witnessed by

TANKEROperator's successful series of TMSA

conferences. People are taking it very seriously.

However, with an orderbook at record levels

and everybody seemingly searching for that

elusive seafarer who has future officer

potential, there is no room for complacency.

There are still some frightening things going

on out there. You've only got to listen to the

pilots who still climb up the ladder of some

ships in fear and trepidation.

There are various other recent rules,

regulations and recommendations appearing

on or near the statute books, such as the

Performance Standards for Protective Coatings

(PSPC), which is supposed to monitor ballast

tank coatings for 15 years in order to prevent

safety threatening corrosion.

At the IMO, this year we have nine sub-

committee meetings planned on top of the

usual Council, MEPC and MSC meetings. In

addition there will be seven inter-sessional

meetings. No little wonder that to the outside

world, the IMO seems to be moving at a

snail's pace.

Since the Erika and Prestige disasters, the

EU has become very active in shipping

legislation and at one stage was thought to be

ready to override the IMO on certain

recommendations. The US Coast Guard has

taken an even more proactive stance, especially

on security issues as a result of 9/11.

Nations acting unilaterally, or in a group,

can certainly move much more quickly than

bodies, such as the IMO. But do we want a

situation whereby a vessel moving from one

area to another is subject to a different set of

rules and regulations?

Tankers can only be as safe as the people

who look after them and sail in them.

Complacency is a human failing, from which

most of us suffer from time to time. Being

complacent means not checking the minutae,

either in the office or on board ship. Just

ticking the boxes won't do anymore.

We have to think for ourselves and not sit

back waiting to be told what to do. Often

that command never comes as the person in

charge thought that the other person had

already carried out the task when in fact, he

or she hadn't.

One leading tanker owner recently told

TANKEROperator that his staff is put through

an in-house self-assessment course in which it

is hoped many of the human failures can be

highlighted and to a certain extent eradicated.

Were the Erika and Prestige sinkings the

result of human failures? Certainly the

integrity of both ships was somewhat wanting.

Whose fault was that? Answer - a lethal

cocktail of almost everybody ashore

technically involved with the vessels. Both

masters tried to save their ships, but were

shamelessly pilloried by the authorities as they

were the easiest people to grab at the time.

We doubt whether we have heard the last of

these cases, which should at least keep the

lawyers happy, if nobody else.

COMMENT

TANKEROperator January/February 2008

Who can we pin the blame on?

02

TO

Despite their high profile cases, the pollution caused by the Exxon Valdez, Erika and

Prestige of 36,426 tonnes, 22,000 tonnes and 62,657 tonnes respectively, only the

Prestige made the top 20 oil spills, coming in at No 20. The Exxon Valdez was rated at No

37 while the Erika was way down at No 63, according to Intertanko.

We have to think for ourselves and not sit

back waiting to be told what to do. Often that

command never comes as the person in charge

thought that the other person had already carried

out the task when in fact, he or she hadn’t.

Page 5: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

January/February 2008 TANKEROperator 03

INDUSTRY - MARKETS

and charterers to create a

balanced platform to discuss the

issues of the day.

Apart from NEWBUILDCON,

the committee has decided that

SHIPMAN '98 needs updating.

For example, there is no reference

to the recent ISPS Code in the

document. The committee is

working with shipmanagement

organisation InterManager to

update the form.

CHEMTANKVOY is also being

updated to reflect LPG type

cargoes.

BIMCO also said that it had

noted a downturn in documentary

paper sales in favour of more

online purchases. The

organisation currently has more

than 1,000 documents available

online.

Today, the organisation has

2,300 members, which was

described as 'stable'. However,

the amount of tonnage controlled

by the members had 'rocketed',

BIMCO said.

Although it has many

strings to its bow,

BIMCO is perhaps

today most widely

known for its charterparties and

other standard documents. Down

the years these forms have

become the optimum methods by

which contracts are negotiated

either by using the contract as it

stands, or an amended version to

reflect an individual company's

modus operandi.

The latest to appear from

BIMCO's documentary

committee is NEWBUILDCON,

which was claimed to be the first

international standard

newbuilding contract. BIMCO

stalwart Nils-Gustaf Palmgren

headed the project team, which

took two and a half years to

produce the finished article.

Complicated task

It was adopted last June and this

year, seminars are being held

worldwide to publicise the

document. Palmgren explained

that it was designed to cater for

all types of vessels and proved to

be a complicated task as the

authors had to start from scratch.

He explained that there was no

international convention covering

shipbuilding and that the

association's members had asked

for some sort of harmonisation

with all the yards and a checklist

when negotiating a newbuilding

contract. At present most buyers

are obliged to rely on the chosen

yard's own contract. One of the

main aims, as with all the

documents, is to minimise

disputes and make the contracts

much easier to negotiate.

NEWBUILDCON does not

attempt to impose a set of rigid

terms and conditions as a

replacement for existing yard

contracts. Instead the document

was designed to form an

important part of the negotiation

process by providing a solid and

balanced contractual platform

from which the parties can reach

agreement.

Another advantage is that

NEWBUILDCON can easily be

amended by the shipyards and

shipowners to reflect their own

contracts if necessary. It is based

on BIMCO's standard numbered

box concept whereby the 'nuts

and bolts' of a clause can be

typed in once agreed by all

parties.

According to Palmgren,

"….most existing forms used for

shipbuilding are routinely

amended and supplemented.

NEWBUILDCON incorporates

these common amendments and

additions in a simply and clearly

worded document. It has been

uniquely structured in a way that

easily guides the parties through

the sequence of events involved

in a shipbuilding contract".

One of the many benefits of

using NEWBUILDCON,

Palmgren claimed, is "the clearer

legal provisions dealing with

important aspects such as

permissible delays, guarantees,

responsibilities and exclusions

from liability, insurance,

termination and dispute

resolution".

Lawyers input

The drafting work was

undertaken by a team of lawyers

specialising in shipbuilding

contracts who had previously

worked on behalf of both buyers

and builders. According to

BIMCO, this experience played

an important role in ensuring an

appropriate contractual balance

and that the interests of the

builders and the buyers were

properly reflected.

BIMCO also benefited from

input from Asian and European

shipbuilding interests, as well as

constructive input from

classification societies and the

insurance industry.

The documentary committee

usually meets twice a year when

the documents are thoroughly

reviewed and updates can be

recommended as necessary. At

the meetings, new contract forms,

such as NEWBUILDCON, can

also be actioned. The committee

is made up of shipowners, P&I

clubs, shipbrokers, legal experts

Standard shipbuildingcontract launched

Another standard form in the successful

series of contracts came off BIMCO's

production line at the end of last year.

Negotiating lengthy newbuilding contracts should be made that

much easier through the introduction of NEWBUILDCON.

TO

Page 6: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

Great Belt concern

One area of concern is navigating

the straits, especially the Great

Belt, which bisects the Danish

islands. This stretch of water is

becoming increasingly busy with

loaded Suezmaxes, Aframaxes and

Panamax bulk carriers transiting

on a regular basis. Although some

interests would like to see the

IMO declare the Great Belt an

area of compulsory pilotage, thus

far this initiative has not proved

possible. Vessels are able to transit

freely, as the area has been

declared an International Strait,

although 95% of the vessels

actually embark a pilot.

According to Jan Fritz Hansen,

the DSA's vice president, there is

an incident nearly every other day

and traffic separation zones will

enter force soon. Some VTS

systems already exist along the

Belt with the possibility of more

coming. The markings in the

channels are also being improved,

he said.

Danish owners and

operators accounted

for 501 vessels of 11

mill dwt at the end

of October, 2007 - about 3% of

the world's tonnage - but more

significantly had an orderbook of

around 325 vessels of 15 mill

dwt, or about 5% of the world's

shipbuilding contracts.

The Danish controlled fleet

amounts to 55 mill dwt, as many

owners charter in tonnage on a

long term basis and also manage

shipping pools, which the EU is

taking a close look at. The Danish

Shipowners' Association (DSA)

claimed that 7% of the world's

tonnage is now controlled from

Denmark and a marketing drive is

underway to persuade foreign

owners to relocate to Denmark as

the government has become

sympathetic to shipping

companies by way of a soft tax

regime. With the Norwegian

shipping industry in disarray

through the threat of punitive tax

demands, the Danes see an

opportunity to do business with

their northern neighbours. Other

countries in which talks have

been held with shipowners,

include Italy and Japan.

The DSA sees the Danish

cluster expanding by 50% during

the next five years as the

government, regardless of which

party was in power at the time,

has been positive towards Danish

shipping concerns for the past

20 years.

Jorgen Hammer Hansen,

director general of the Danish

Maritime Authority explained that

the Danish International Register

(DIS) had been in existence since

1988 and that the government has

had a tonnage tax regime in place

since 2001. Both tax schemes fall

within in the EU State Aid

guidelines, he claimed.

In March 2006, the government

launched an action plan called

'The Danish Maritime Cluster - An

agenda for Growth'. This consisted

of 57 initiatives, which by the end

of October 2007, around half had

been completed. These were based

upon initiatives undertaken by

Germany, The Netherlands, UK,

Isle of Man, Greece, Cyprus,

China and Singapore.

There are seven focus areas

within the action plan. These are -

Better education and greater

flow of skilled labour in the

maritime cluster. The three 'Ts'

- tax, technology and talent -

are being encouraged.

Research and development.

Adjustment of tax incentives

and analyse the possibility of

private funding for financing

smaller shipping companies.

Reduced administrative

burdens and fewer Danish

national requirements.

Promotion of Danish influence

in international forums and

market access.

Enhanced focus on quality

shipping.

An efficient service-

orientated and modern

maritime administration.

Individual shipping companies

have launched campaigns to

attract career people worldwide,

TV commercials have also been

used and on board training

initiatives introduced.

Hansen was proud of the fact

that the Danish flag was on the

port state control 'White List' and

up to the end of October only

had two detentions registered,

which by his own admission was

"quite a reduction".

INDUSTRY - DENMARK REVIEW

TANKEROperator January/February 200804

Denmark forgingahead with massive

expansion plans

Jan Fritz Hansen, vice president,

Danish Shipowners' Association

For a country with a small population and accounting for less than 1% of the world's

GDP, Denmark's shipping cluster is made up of big hitters.

Jorgen Hammer Hansen, director general, Danish Maritime

Authority

Page 7: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

consists of 42 Panamaxes and

apart from the managers,

includes DIFKO, Gotland,

MOSK, Nordic Tankers,

Skagerack and Waterfront.

TORM managed handysize

MR pool is made up of 23

vessels owned by TORM,

Gotland, Primorsk and

Sanmar.

Maersk's Handytankers pool

of 73 vessels, plus one

newbuilding, in partnership

with Seaarland, d'Amico and

Motia.

Swift Tankers pool is operated

by Maersk in conjunction with

Teekay and consists of a fleet

of 24 x 14,000 - 16,000 dwt

ice class chemical tankers,

plus one newbuilding. It

celebrated its first birthday on

16th January this year.

TORM's total pool commitment

is 91 vessels with another 28

operating independently, plus a

substantial newbuilding

programme (see page 6).

Maersk, Lauritzen, Norden and

TORM are all members of pools,

most of which are managed out

of Denmark.

Maersk Tankers' Kristian

Morch said that from day one, his

company had been in dialogue

with the Shipowners' Association

and Brussels on the subject and

thought that there was still too

much guesswork. He appealed to

Brussels to be much clearer on

the guidelines.

Brussels has encouraged pool

members to self-assess their

operations when putting forward

their modus operandi. "We just

have to wait to see what Brussels

says," Morch said.

TORM's ceo Klaus Kjaerulff

said when dealing with the pools'

question….."everybody has to be

transparent."

He likened pools as a…"all for

one and one for all" type of

operation. TORM manages LR1,

LR2 and MR pools with a mixture

of timecharter and spot business.

The Danish authorities are

tendering for an icebreaking oil

spill response vessel, which once

built will be stationed in the

vicinity of the Great Belt.

Pools in the limelight

For several years, Denmark has

been synonymous with the

operation of pools, both for

tankers, gas carriers and drybulk.

There has been much talk

about the attitude of the

bureaucrats in Brussels to pools

and talks are underway between

the individual pool members, the

Danish Shipowners' Association

(DSA) and Brussels to avoid any

unnecessary conflict.

The DSA is working closely

with the European Commission

Shipowners' Association and an

extensive study of pools has been

commissioned. The DSA urged

its members to undertake self-

assessment audits, evaluate them

and make changes where

necessary. TO

January/February 2008 TANKEROperator 05

INDUSTRY - DENMARK REVIEW

The LR2 pool is jointly managed

with Maersk, while the other two

are managed by TORM.

Kjaerulff said that there were

many benefits in co-operating in

a pooling arrangement, similar to

the airlines. Around 80-90% of

TORM's turnover comes from

around 10 customers worldwide,

a number which has shrunk down

the years.

He thought that there might be

one or two changes to the clauses

in the pool structures needed to

appease Brussels and said that his

staff was attending anti-trust law

seminars as part of the self-

assessment realisation plan.

As for the Danish operated

pools, they include the

following:-

Joint Maersk/TORM LR2 pool

totals 26 Aframaxes. As well

as the joint managers,

Primorsk and Rederei Klaus E

Oldendorff have also joined

the pool.

TORM managed LR1 pool

Page 8: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

Kjaerulff thought that generally

more M&A activity was possible

in years to come.

Worldwide operations

Thus far, subsidiary TORM

Singapore looks after 13 vessels -

four drybulk carriers and nine

tankers. Kjaerulff said that

TORM needed a presence in

Singapore to look after the Asian

markets. He explained that

TORM's philosophy was to

operate from offices worldwide to

keep a close watch on the market,

both internationally and locally,

but the real challenge was to

foresee the 'ups and downs' of the

market and act accordingly.

He was positive for the future of

the product tankers trades saying

that today, this type of vessel

accounted for 10-15% of all the

oil shipped. He said that TORM's

particular markets tended to be

more commodity-based.

Part of the OMI deal included

the complete takeover of an office

in Mumbai - OMSI - which

technically managed the 26 ships.

Also included was a part of OMI's

US operation. The Indian office

also handles 2,000 seafarers and

has around 100 people onshore.

The Danish government has given

an exemption allowing TORM to

operate with Indian officers, due

to the current shortage in Europe,

which has affected Denmark

as much, if not more, than

anywhere else.

To help counter the shortage of

seafarer material, TORM has

introduced a cadet scheme, which

now involves 75 recruits. These

are being added to all the time,

Kjaerulff said.

Looking at the long term,

Kjaerulff was optimistic that for

2015-2020 there would be a need

to keep up with the increase in

clean products trade. For the short

term, the large LR2 orderbook

could depress rates, but by

In March 2007, TORM

surprised the market by

buying a significant share

of US-based tanker owner

and manager OMI's fleet together

with Teekay. The deal was

completed on 8th June and the

company's assets were distributed

on 1st August.

This move boosted the

Copenhagen-based owner's fleet

by a further 26 product tankers.

As with any major purchase, the

period of integration took some

time. Ceo and president Klaus

Kjaerulff said that most of the

integration was completed by

31st December, while the various

offices worldwide will be linked

up by the end of January, or the

beginning of February this year.

Most of the newly acquired

tankers were already

timechartered for at least two

years, which Kjaerulff said was

good for future earnings. Of the

26 Hyundai Mipo and STX built

former Teekay vessels, 24 were

gradually being switched from

the Marshall Islands flag to the

Danish registry, while the other

two will fly the Singapore flag

and will be managed out of

Singapore.

INDUSTRY - DENMARK REVIEW

TANKEROperator January/February 200806

Danish shipowners inexpansive mood

TANKEROperator spoke with three of the leading Danish tanker owners

aabout their expansion plans – TORM, Maersk and Lauritzen.

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TORM's ceo Klaus Kjaerulff

Page 9: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

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Page 10: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

LK purchased three 9,000 cu m

ethylene carriers. The gas

division owns or bareboat

charters 19 vessels, has another

two under part ownership, four

under timecharter and another

five under joint charters. LK also

contributes 12 small gas carriers

to the Unigas Kosan gas pool.

Nine wholly-owned newbuildings

are on order or under

construction, plus another six on

behalf of its partners.

With the contracts for two

more 8,000 cu m ethylene gas

carriers at Sekwang Heavy

Industries announced last

November, 12 modern gas

carriers will have been built by

Sekwang by early 2010. Two

were delivered earlier last year

and the third was due to enter the

fleet last November. Two of the

three are on long term charters. In

total, LK currently manages 42

gas carriers in the 3,000 to 8,000

cu m capacity range.

LT is the youngest of the JL

companies - having re-entered the

product tanker business in 2004.

This division owns three vessels,

has five under joint charters and

another four under common

management. Its newbuilding

programme now consists of 14

wholly-owned vessels, plus

another two under timecharter

and two more ordered by its

partners. These include two

recently ordered 50,500 dwt IMO

II/III product tankers.

2009-2010 interesting trends

should emerge.

He attacked the pessimistic

analysts saying that they had not

taken into consideration the extra

tonne/miles that will be created

once the new and ramped up

refineries planned for India and

the Middle East come on stream.

He pointed out that the US was

still importing 25% of the world's

oil exports, although the

Asia/Pacific region is increasing

its intake, most notably China.

By the fourth quarter of 2007,

TORM's orderbook stood at 17.5

vessels for delivery through 2010.

Kjaerulff said that he was trying

to balance the owned,

timechartered and managed fleets.

He thought the use of

timechartered vessels added more

operational flexibility to the fleet.

Since 2000, TORM has put a

lot of effort into branding and

started to paint the company's

logo on the hulls of the vessels.

Maersk bullish

A Danish feature would not be

complete without mention of AP

Moller-Maersk group.

Maersk has been operating

tankers since 1928. In 1968, the

company took delivery of the

world's first coated tanker. Today,

the division owns 44 tankers, split

into - seven crude carriers, 28

product tankers, seven

LPG/ethylene carriers and two

LNGCs, which are operating with

RasGas.

The company also has 29

newbuildings, including six

VLCCs, 11 product tankers, six

LPG/ethylene carriers and

another six LNGCs, either on

order or under construction.

Kristian Morch, group senior

vice president responsible for the

crude and product tanker sectors,

said "….everyone likes to have

IMO III product tankers." He

thought the US policy of not

trading persistent oil could also

change very soon, which could be

good for the products market.

Maersk Tankers participates in

several pools, including the

Handytankers Pool, which consists

of 73 vessels, plus one

newbuilding and has as its partners

- Seaarland, d'Amico and Motia.

Maersk also manages the LR2

pool with partners Primorsk

Shipping, Reederei "NORD"

Klaus E Oldendorff and TORM.

This pool consists of around 26

coated aframaxes. Recently

Maersk chartered Unique's

aframaxes Maersk Privilege and

Maersk Priority, which both

operate in the pool.

In the smaller size range

Maersk runs the Swift Tankers

pool together with Teekay and

last November took delivery of

the Nakskov Maersk, the fourth in

a series of six 16,600 dwt, Ice

Class 1A, IMO II type tankers

from Jiangnan. Maersk also long

term charters small

chemical/product tankers from

Harren & Partner Ship

Management.

Morch said that from day one,

Maersk had been in dialogue with

Brussels and the Danish

Shipowners' Association on the

thorny issue of pools, but thought

that there was still too much

guesswork and the situation

needed more clarity.

Morch explained that by

joining pool, traders get access to

a much bigger player in the

market. He said the areas of

vetting, classing vessels and even

vessel routeing was entirely

different to that of a few years

ago. Maersk has also introduced a

cadet training programme.

As for TMSA, Morch said that

Maersk Tankers was close to

Level 4 stage, which the company

had hoped to reach by the end of

last year. Morch said that Maersk

had good dialogue with the oil

majors on TMSA. Maersk's

crewing policy is to operate the

vessels with a mixture of Danish

officers and others.

Lauritzen gas

and oil tankers

Another group with a major

newbuilding programme is J

Lauritzen (JL).

Senior vice president Tommy

Thomassen of Lauritzen Fleet

Management explained that by

2011 about 80 vessels will be

added to the 135 drybulk carriers,

gas carriers and product tankers

already in the fleet.

Around 16 of the newbuildings

will come from Lauritzen's

partners in the various pools

managed by the company.

In the liquid bulk field, the

group consists of small gas

carrier specialist Lauritzen Kosan

(LK) and product tanker manager

Lauritzen Tankers (LT). Recently

INDUSTRY - DENMARK REVIEW

TANKEROperator January/February 200808

Maersk's Kristian Morch

Lauritzen's Tommy Thomassen

TO

Page 11: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

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Page 12: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

INDUSTRY - DENMARK REVIEW

TANKEROperator January/February 200810

Danish equipment basestill strongDenmark is not just full of shipowners

and operators, the country is also at the

forefront of engineering technology.

includes a range of dual-fuel ME-

GI engines. The GI-system,

comprising a high-pressure

injection system of natural gas, has

proved commercially viable since

1994 when a 12K80MC-GI engine

was employed by a Japanese

power plant. Conversion to dual-

fuel operation, in the form of ME-

GI, is an option currently being

discussed for both the QatarGas

and other LNGC projects.

The ME-GI system is offered

in a package based on Burckhardt

compressors with a fully

integrated tank-pressure and gas-

flow control system. This range

complements MAN's engine

programme that also includes the

51/60DF dual-fuel, medium-

speed engine, which is targeting

LNGCs to be fitted with electric-

propulsion configurations.

At the end of October last year,

MAN Diesel and Burckhardt

Compression concluded an

agreement on a strategic

partnership. The aim of the co-

operation was to achieve a

significant market share for the

ME-GI propulsion system for

LNGCs.

MAN explained that the

philosophy behind the ME-GI

system is that it can be operated

with ecological natural gas or

heavy fuel oil.

One of the most popular

engines with tanker operators is

the 6S50ME, which by the end of

October had been installed in 87

tankers. The larger seven cylinder

version was recently installed on

ice class tankers operated by

Fednav.

Last October, an order was

received for the 6S50ME-B8

engine, the first of the new

50ME-B series. They will be

fitted on board seven 50,500 dwt

chemical/product tankers to be

built at Guangzhou for TORM.

Such household names

as MAN Diesel,

Hempel, Thrane &

Thrane, API Marine,

the European base of Furuno,

plus other interests, including

BIMCO reside in Denmark.

MAN Diesel, formerly MAN

B&W, is seeing near record

orders for its 2-stroke and 4-

stroke diesel engines and is also

benefiting from the service sector

with its recently formed

PrimeServe division driven by the

increasing number of ship

deliveries and the seemingly

never ending orderbook.

However, this in itself has

created problems in that there are

supply bottlenecks building up,

especially for crankshafts. As for

the engines, MAN said that if an

owner or shipyard ordered a

prime mover now, there will be

an average waiting time of two to

two and a half years before it will

be delivered.

The company said it was

looking for a possible franchise in

the Turkish and Indian markets as

shipbuilding will increase in both

countries sooner rather than later.

The management said that some

analysts had become too

pessimistic about the future. "We

are still busy for a number of

years," explained Thomas

Knudsen, senior vice president

responsible for R&D.

MAN is reorganising its

production and will manufacture

large 2-stroke diesels in St

Nazaire with Frederikshavn

concentrating on 4-stroke.

MAN marked its first success

in the LNGC sector when three of

the world's largest gas tankers

successfully tested their

propulsion packages at the end of

September. Each vessel is

powered by two 6S70ME-C

electronically controlled, two-

stroke, low-speed diesel engines,

which will operate on HFO.

The trio are part of a QatarGas

project that comprises 45 vessels,

each fitted with two MAN low-

speed prime movers, making for a

grand total of 90 electronically

controlled two-stroke engines. Of

these, 31 Q-Flex carriers will

receive two MAN 6S70ME-C

engines, each developing 18,660

kW, while the 14 larger Q-Max

carriers will employ two MAN

7S70ME-C engines, each rated at

21,770 kW at 91 rev/min. The

vessels have also been fitted with

four MAN Diesel 9L32/40 type

gensets each.

The HFO-fuelled ME-C

engines chosen to propel the 45

ships comprise a part of MAN's 2-

stroke engine programme that also

MAN Diesel is targeting the 51/60DF dual-fuel, medium-speed engine, for the LNGC market where

vessels are to be fitted with electric-propulsion configurations.

Page 13: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

location using a mixture of

nationals and expats.

For larger vessels, Bach

explained that both Orksovs and

Fredericia were still active, which

is one of the reasons why DNV

has a presence in Denmark,

where only full time exclusive

surveyors are employed.

Bach explained that DNV had

also won a lot of work with

Danish owners with ships under

construction in China, especially

Guangzhou, where around 40

vessels are on order or under

construction for Danish owners.

These include majors such as

Maersk, TORM, Norden and

Lauritzen.

Another illustration of DNV's

involvement in Denmark came

early last year when the Maersk

Training Centre in Svendborg

was awarded DNV's SeaSkill,

which is a four-step certification

system for the professional

verification of training and

benchmarking of performance.

Bach said that the training centre

had also become involved with

LNG cargo operation training.

DNV had previously said that

around 50% of the training

providers were underperforming,

therefore the class society

developed SeaSkill. One area

looked at was the use of

simulators and their level of

realism, while the courses were

examined for their design, learning

objectives and content.

The engines will be built by

Dalian Marine Diesel. MAN will

supervise the construction,

testing, on-site installation and

commissioning of the engines, as

well as participate in subsequent

sea-trials.

The MAN B&W S50ME-B8

engines will be the first two-

stroke engines to be delivered

fitted with TCA 66 turbochargers

with variable nozzle rings

technology (VTA), which

facilitate the control of the

scavenging-air pressure and

thereby compression and cylinder

maximum pressure.

T&T goes broadband

Meanwhile, Danish

communications concern Thrane

& Thrane (T&T) plans to double

its revenue by 2010-2011.

The company recently opened

a sales office in Shanghai and

said that its maritime division

now accounted for 57% of the

company's business and was

growing.

Service centres are located at

45 ports worldwide, where ships

equipment can be repaired and

maintained on board and from

where spare parts can be

supplied.

T&T is now actively marketing

the SAILOR FleetBroadband

terminals since the first type

approval was gained in

November 2007. The SAILOR

500 and 250 FleetBroadband

systems are spearheading the

sales effort.

T&T claimed that the new

systems represented a 'quantum

leap' in terms of marine satellite

transmission speeds. For

example, SAILOR 500

FleetBroadband has data speeds

up to 432 kbps with ISDN

capability, while SAILOR 250

has a data speed of up to 284

kbps.

SAILOR 500 is similar in size

to the Fleet55, with an antenna

diameter of less than 60 cm,

weighing some 16 kg. However,

it is almost seven times as fast,

claimed the company. As for

SAILOR 250, its antenna is

smaller than the Fleet33 with a

diameter under 30 cm and at just

5 kg, weighing only one third of

its predecessor.

Key features for Inmarsat

FleetBroadband and SAILOR

systems include:

Standard IP addresses for e-

mail and internet/intranet

access, including secure VPN

connection.

Streaming IP.

ISDN (SAILOR 500

FleetBroadband only).

Use of voice and data

simultaneously (guaranteed

bandwidth).

Simultaneously having access to

voice and high-speed data

services on a global basis will

enable ECDIS information,

online weather data, route-

planning and crew calling to be

undertaken at the same time,

which the company claimed will

greatly increase information

efficiency on board.

Once all three Inmarsat-4

satellites have been successfully

launched, voice and data will

become global from 76 deg North

to 76 deg South. During the first

stage, coverage will be the

Atlantic and Indian Ocean with

two of the three Inmarsat-4

satellites in orbit.

Operation and service of

FleetBroadband is scheduled to

continue until 2020.

Last year T&T also introduced

three new portable VHF radios as

part of the new SAILOR SP3500

series. The three were SAILOR

SP3510, SAILOR SP3515 and

the SAILOR SP3520 VHF

GMDSS.

The SAILOR SP3510 and

SAILOR SP3515 were developed

to offer the user a portable VHF

for on board communication,

while the SAILOR SP3520 is a

portable VHF approved for

GMDSS.

T&T has also tested LRIT

compliant receivers with the

Marshall Islands flag state and

Purplefinder. The company

explained that it was down to the

flag state to ensure that its vessels

were sending correct messages.

Thus far, this decade has been

a period of rapid expansion. For

example, since listing on the

Copenhagen Stock Exchange in

March 2001, during the Autumn

of 2003 it acquired its largest

distributor in the US - LandSea

Systems and today under the

name, Thrane & Thrane Inc, it is

the company's North American

sales office.

In the spring of 2004, Danish

company Eurocom Industries,

one of the world's leading

suppliers of equipment for

maritime radio communications

and owner of the SAILOR and

Skanti brands, was acquired. This

was followed by the acquisition

of Nera SatCom in October 2006.

Nera SatCom has been renamed

Thrane & Thrane Norway.

Existing and future products in

the maritime segment are now

sold under the T&T and SAILOR

brands.

TT board member Walther

Thygesen, a director since 2001,

was appointed ceo on September

3rd, 2007.

DNV success

Somewhat surprisingly, Danish

repair yards have become more

competitive, DNV's country

manager for Denmark, Henrik

Bach said.

Bach heads up four Danish

DNV offices located in Aalborg,

Copenhagen, Esbjerg and

Fredericia, which offer support on

January/February 2008 TANKEROperator 11

INDUSTRY - DENMARK REVIEW

T&T has launched the SAILOR 500 FleetBroadband system for the

deepsea fleet.

TO

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Rhoon on the outskirts of the port

city. Both the European and

Singapore offices were seen as

major areas for expansion. For

example, once on stream the new

Fujairah station will come under

Singapore's wing.

Fuel oil is traded either direct

with clients, or through the

broking network or via traders.

Trading is mainly undertaken to

supply Chemoil's needs rather

than to serve third party business,

Stoddard said. However, he said

the company needed to be in

constant contact with the trading

houses in order to remain

competitive. Positions are hedged

primarily through swops, but

since taking a hit, the company

has become more careful not to

be caught too short or too long on

the forward positions taken.

He also explained that the

number of customers tended to

remain constant, but the stems

were becoming larger, again

mainly due to the super post

panamax boxships.

All the offices worldwide are

integrated with video

conferencing facilities and have

access to a central reporting, risk

assessment/credit control and

accounting systems.

For European fuel storage,

New locations were

due to be opened in

Fujairah and

Singapore, while a

leading Dutch barge operator had

joined the fold and plans were

afoot to build a terminal in

Panama. Chemoil has since

confirmed that the projects will

come on stream as scheduled.

Chemoil was founded by

Chandran in 1981 and went

public on the Singapore Stock

Exchange in December 2006,

raising $101 mill. Before

Chandran's untimely death on

7th January this year, the

company had said that it had a

clear vision for future growth. Its

goal was to acquire assets to

improve the supply chain and to

open bunker stations in key

locations worldwide, while

keeping control over the whole

logistics chain.

In January, several expansion

initiatives were underway, such as

the opening of station at Fujairah

due to come on stream in

February of this year, while

another facility opened on 10th

January at Jurong Island,

Singapore - a project called

Helios. Helios consists of a

storage terminal plus barges.

Chemoil was also exploring

further expansion prospects in

high volume, strategically located

regions such as Panama, the

Middle East and Southeast Asia.

Talking to TANKEROperator

before the tragedy, Adrian Tolson,

San Francisco-based vice

president sales and marketing,

said that Chemoil's philosophy

was to control its assets from the

supply terminal, including the

blending and barging operations.

Although the company's business

development is mainly controlled

from Los Angeles and San

Francisco, the shipping side is

controlled from Singapore.

Indeed, Indian born Chandran had

recently taken out Singapore

citizenship.

Chemoil has a large European

presence located in Rotterdam.

The North Sea SECA, which

entered into force last August,

brought with it a fair amount of

business to the ARA range.

Reacting to the introduction of

the 1.5% sulphur cap, Rotterdam-

based Chemoil Europe started

specialising in low sulphur fuel

oil (LSFO). It was also noted that

a trend had emerged to supply

heavier density hfo of 500-700

cSt, which was favoured by the

super post-panamax containership

operators. However, large

volumes of gasoil or mdo are not

usually supplied in the ARA

range, Chemoil Europe managing

director Chris Stoddard

explained.

A dedicated barge was brought

into service in 2005, followed by

a second in 2006. The Dutch

registered barges are able to

transit the Rhine-Schelde canal to

supply vessels in Antwerp and

can also reach Amsterdam - thus

covering the ARA range. Since

the part purchase of Burando (see

below), the number of barges

available to Chemoil has shot up

to 21, of which 11 are double

hull. They include the 6,750 dwt

Maxima one of the largest to

operate in the area without

compromising the range of ports

on offer. Some of the larger

bunker barges of up to 10,000

dwt operating in the Rotterdam

area have difficulty in negotiating

the inland waterways to Antwerp

or Amsterdam, Stoddard

explained.

The Rotterdam office is

responsible for the supply of

between 200,000 - 250,000

tonnes per month of which LSFO

takes up around 15%-25%,

depending on demand.

Cargoes are bought on the

charter market, a function which

is handled from Singapore. The

main sources and routes for the

cargoes are the Baltic to northern

Europe and South America to the

US. Chemoil also has arbitrage

operations involving the

movement of cargoes to an area,

which will give the company best

value.

During December of last year,

Chemoil Europe was due to move

to new premises near Rotterdam's

cruise terminal from its office in

Fuel oil is traded either direct with clients, or

through the broking network or via traders.

Trading is mainly undertaken to supply Chemoil’s

needs rather than to serve third party business

Chris Stoddard, Europe managing director, Chemoil

Chemoil survives tragedy- its ‘business as usual’The tragic death of Chemoil founder, executive chairman and ceo Robert (Bob)

Chandran came at a time when the company was going through an expansive period.

INDUSTRY PROFILE - CHEMOIL

TANKEROperator January/February 200812

Page 15: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

Introducing a new way to bunker in Singapore forthose who value complete control.

chemoil.com

Beginning January 2008, Chemoil offers a new approach to Singapore.One company. One supply chain. Total control.A better way to bunker is here. With the opening of the Helios terminal, Chemoil ischanging the way you bunker in Singapore. Now, each and every operation in the supply chainis controlled by the company you trust. This provides you with an unmatched level of consistency,flexibility and choice. The Chemoil marketing team is on call with competitive quotes, twenty-four hours a day, seven days a week. And when you inquire for a bunker quote—you get itimmediately. Call Chemoil and experience the benefits of complete control.

USA | SAN FRANCISCO tel 1.415.268.2740 email [email protected] | LATIN AMERICA | PANAMA tel 507.265.5070 email [email protected]

EUROPE | ROTTERDAM tel 31.10.292.9933 email [email protected] | MONACO tel 33.61.501.5634 email [email protected]

ASIA | SINGAPORE tel 65.6536.3974 email [email protected] | FUJAIRAH tel 65.6536.3974 email [email protected] | SOUTH KOREA

tel 82.2.722.6560 email [email protected] | TAIWAN tel 886.2.2735.7591 email [email protected]

LOS ANGELES | HOUSTON | GULF OF MEXICO | NEW YORK | PANAMA | ANTWERP | ROTTERDAM | FUJAIRAH | SINGAPORE

Page 16: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

TANKEROperator January/February 200814

INDUSTRY PROFILE - CHEMOIL

supply chain from tank to ship;

sourcing fuel products, storing,

blending and barging. Tolson

claimed that thus far no supplier

controls both the terminal and

barging activities.

Furthermore, through its joint

venture in Fujairah with Gulf

Petroleum Services (GPS),

Chemoil will be utilising existing

capacity at the GPS/Chemoil

terminal while construction work

progresses to expand its facility

to a total capacity of 326,000 cu

m by January 2009. The company

will again also control its own

barging function.

Tolson explained: "January

2008 not only marks the start of a

new year, but a major step in

Chemoil's global expansion

strategy with operations in the

world's four largest oil products

fuel ports and the beginning of a

new era in independent fuel

delivery."

Sanjay Anand, managing

director of Helios Terminals said:

"The terminal is ready for

operation and will usher in a new

age for independent marine fuel

suppliers in Singapore." Anand

also confirmed that the Fujairah

terminal expansion would also be

proceeding as planned.

A further expansion project

was announced last year when

Chemoil said that it would build a

new 245,000 cu m capacity

storage terminal in Cristobal,

Panama, which would take two

years to complete. Chemoil

already supplies three mill tonnes

of fuel, or about 45% of the

supply in the region.

Tolson explained that the oil

majors were "still conservative"

resulting in the independents

having an increasing role to play

in the supply of fuel. From its

initial base in Los Angeles,

Chemoil now has operations out

of Houston, Panama, New York,

Rotterdam, Singapore and now

Fujairah. Tolson explained that a

significant amount of the Houston

business is concentrated in the

Gulf of Mexico supplying

VLCCs calling at LOOP and the

Galveston lighterage area.

Chemoil uses the Rotterdam

facilities of Vopak and Odfjell.

But following the purchase of a

stake in Burando Holding,

Chemoil now has a shared

ownership of the 70,000 cu m

capacity Service Terminal

Rotterdam together with Lukoil.

A further 125,000 cu m storage

capacity could come on stream by

2009 if the regulators give the

project the nod.

Burando buyout

One of the examples of strategic

expansion by acquisition was

last October's buyout of 49% of

existing shares in Burando

Holding, a leading provider of

maritime logistics services in the

ARA region. The acquisition

was valued at Eur12 mill after

taking into account the net

tangible asset value of Burando.

The deal includes a portfolio of

subsidiary companies, such as

FTS/Hofftrans, one of the

leading barge operators in the

ARA region.

In 2006, FTS/Hofftrans

transported 8.5 mill metric tonnes

of fuel, operating 21 barges with

an aggregated capacity of nearly

60,000 tonnes. Significantly, 11

of these barges are double-hulled

with a combined capacity of more

than 46,000 tonnes. One of the

key plus points as far as Chemoil

is concerned is that blending can

be undertaken on board the

barges. FTS/Hofftrans had a

market share of 33% and

accounted for the largest part of

Burando's turnover.

In September last year, it

surpassed all previous delivery

records with over 1.1 mill tonnes

of fuel oil transported. It operates

a mix of self-owned barges and

chartered barges. As Chemoil has

chartered barges from

FTS/Hofftrans for a number of

years, including vessels dedicated

to the supply of lsfo, this

investment will enable Chemoil

to convert expenses to assets, the

company said.

Examples of previous co-

operation between Chemoil and

FTS/Hofftrans came in 2003

when the Maxima, a new

generation 6,745 tonne double-

hulled 'super' barge was launched.

More recently, Chemoil

announced the timecharter of its

second dedicated lsfo barge

through FTS/Hofftrans in

response to increasing demand

for the product.

Not stopping there, at the

beginning of November, Chemoil

announced that the derivatives

arm of JPMorgan and Chemoil

had created of a strategic alliance

relating to the joint development

of business opportunities across

their global platforms.

Despite Chandran's passing,

the company said it would press

ahead with operations at its

448,000 cu m $122 mill Helios

terminal in Singapore, which it

subsequently said was 'open for

business' on 10th January. The

company is also planning to start

delivering fuel from the GPS-

Chemoil terminal in Fujairah in

February.

Helios will allow Chemoil

control over its entire delivery

Bandy takes the chair

On 14th January,

Chemoil announced

the appointment of

Clyde Michael Bandy

as chairman and ceo

with immediate effect.

He was unanimously

elected by the board

to undertake the

position following the

death of Robert

Chandran. Bandy has

been the company's

lead independent

director since 31st

August, 2006.

With over 35 years of

experience in the energy

industry, Bandy (59) has held

a number of significant

leadership positions of

multinational companies. In

1997, after 27 years with

Texaco, he was appointed as

president and director of Fuel

and Marine Marketing

(FAMM), a joint-venture

company of Texaco and

Chevron. During the merger of

Texaco and Chevron in 2001,

Bandy was selected to lead the

integration of the two

companies' trading platforms,

and served as Chevron's

president of global trading

until his retirement in 2004.

At the request of the major

shareholders, he remained

chairman and independent

director of the global marine

fuels exchange

OceanConnect.com until 2006.

The Board also appointed

Michael Lim Choo San as lead

independent director and

Philip Calvin Anderson as

chairman of the nominating

and remuneration committee,

effective immediately. Both

have served as independent

directors since Chemoil's

2006 IPO.

Clyde Michael Bandy has

been appointed Chemoil's

chairman and ceo following

the death of founder Robert

Chandran.

TO

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January/February 2008 TANKEROperator 15

INDUSTRY - CHEMICAL/PRODUCT TANKERS

The Panama Canal is a crucial

gateway for transport by sea. The

maximum dimensions allowed for

a ship transiting the canal

currently are - Length 294.1 m;

breadth 32.3 m; draft 12.0 m and

an air draft of 57.91 m. A

Petrochemicals - there

are plans for major

developments and

new plants will be

built in the Middle East, which

will add value to their oil exports.

A lot of the plants in Europe and

the US are old. The transport

costs and the low overheads will

give the Middle East a cost

advantage. This means that

instead of exporting crude oil,

there will be exports of

petrochemicals, such as cargoes

of toluene and xylenes. Also,

before 1st January 2007, these

could be carried on tankers as oil

like substances, but now they are

required to be shipped in

chemical tankers. Toluene

requires a Ship Type 3, Pollution

Category Y chemical tanker, with

an underwater discharge outlet.

Xylenes require a Ship Type 2,

Pollution Category Y chemical

tanker, with an underwater

discharge outlet.

Vegetable Oils/Fatty Acid

Methyl Easter (FAME) - The

changes to the Chemical Code on

1st January last year, moved the

vegetable oil trade into the

chemical tanker trade. Vegetable

oils can be 'refined' to create fatty

acid methyl esters (FAME),

which are a key ingredient in

biodiesel blends. The most

increasing area of production is in

the Malaysia/Indonesia range.

Unmodified vegetable oils require

a Ship Type 2(k), Pollution

Category Y chemical tanker with

an underwater discharge outlet.

FAME requires a Ship Type 2,

Pollution Category Y chemical

tanker, also with an underwater

discharge outlet

Ethanol/ n-Butyl Alcohol -

This is also used for Biofuels and

ethanol is the most common. n-

Butyl Alcohol is a more refined

sugar, which has more calorific

value than Ethanol. Ethanol/ n-

Butyl Alcohol Chapter 18,

Pollution Category Z, stripping

test (best possible extent up to 75

litres), underwater discharge

outlet if after 1st January 2007.

The biggest producer is the US,

but it is also the largest

consumer, so the cargo is not

transported by ship. The next

biggest producer is Brazil, and it

is the largest exporter. Exports of

up to 8 mill cu m by 2010 would

require three Suezmaxes and

three VLCCs. However, Brazil is

planning to increase exports to

18 mill cu m by 2015. The route

to Japan or the west coast US

would go via the Panama Canal.

For Europe, a target of 10%

production by 2020 would

require more than 70% of

European Union farmland.

A chemical tanker tomeet new trades*

LR has identified three areas where there are likely to be large growth in the market.

LR’s Jonathan Morley.

Page 18: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

Panamax tanker category is

usually taken to be vessels with a

dwt of between 50,000 and

80,000 tonnes.

From the Middle East, a

Panamax tanker can also go

through the Suez Canal to

Europe, and the Straits of

Malacca to Japan/China. On

22nd October 2006 in a

referendum, Panamanian voters

approved the $5.3 bill Panama

Canal expansion plan by a wide

margin. It is expected that this

expansion project will be

completed by 2014. The new

Panama locks will have the

following dimensions: Length:

427 m, width 54.9 m, draft: 18.3

m. NPX is the abbreviation for

the new bread of Panamax

vessels that will fit through the

new locks. The maximum

dimensions allowed for a ship

transiting the canal will be:

Length 366 m; breadth 49 m;

draft 15.2 m and an air draft of

57.41 m. The old locks will

continue to be used by the

smaller Panamax vessels.

For an initial tanker design the

following criteria need to be

considered: Cargo lists, class

notation (ship type notation),

tanker construction materials,

parcel sizes (tank size limits),

equipment requirements, a gap in

the market where there is an

unfulfilled demand, a market

where you can carry a cargo more

economically than other vessels

and where the vessel will be able

to trade, given the draft and width

requirements.

The suggested Panamax tanker

specification needs to be flexible

and adaptable. It should be able

to react to changes in the market

for a standard series of ships. The

basic design is for an oil tanker,

but with the option of being a

chemical tanker. This means that

at a later date for existing ships,

they can be easily upgraded

when the market requires.

Therefore the midship section

will have to have a double

bottom height of 2.15 m (for

Type 2 chemical tanker) and side

protection to MARPOL Annex I.

This easily allows the tanks to be

used for Type 2 cargoes.

For a vessel requiring

approximately 84,000 cu m

capacity in the cargo tanks, if it

were to be provided with six

cargo tanks it would result in

each tank being about 7,000 cu

m, but if it is provided with seven

cargo tanks you would arrive at

each cargo tank having a capacity

of 6,000 cu m. If it is provided

with slop tanks of 3,000 cu m

each, then we can get the total

carrying capacity up to 90,000 cu

m. The slop tanks will be bigger

than normal and up to MARPOL

Annex I requirements. Later

vessels should be suitable for

easy upgrades to lift future

cargoes. They should also be

suitable for both Type 2 or 3

cargoes and also for biofuels.

Vessels have to be ready for the

developing market. Also they

have to allow for higher

percentages of vegetable

oil/ethanol to petroleum oil

cargoes, as anything higher than

15% may require a chemical

tanker. Biofuels need to be mixed

on the vessels, or in the

refinery/terminal. There needs to

be flexibility as to the options

required by the operator. For

example, it can be mixed upon

discharge from the vessel, if

required.

A suggested Panamax tanker

specification for

oil/ethanol/unmodified vegetable

oil cargoes to be suitable for Type

2 chemical cargoes in a cost

effective manner is as follows -

with 6,000 cu m tanks, by adding

a transverse bulkhead (ending up

with 3,000 cu m tanks and with

an additional deepwell pump,

which is the best option, or a

valve in the bulkhead). The vessel

needs to be suitable for biofuel,

for unmodified vegetable oil and

ethanol to be carried in all tanks

and suitable for new flows of oil

like substances/petrochemicals.

Some cargoes like toluene require

Type 3 vessels where they can be

carried in each tank.

Economical tank/pump

arrangements include - deepwell

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Page 19: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

January/Febraury 2008 TANKEROperator 17

INDUSTRY - CHEMICAL/PRODUCT TANKERS

cargoes such as xylenes require

Type 2, and would be able to

carry the full range of these

cargoes. The economical

tank/pump arrangements are -

deepwell pumps with four or

eight cargo segregations: it could

have a deepwell pump fitted in

each tank. It will give good

residual value as a Type 2, it will

have good number of cargoes to

choose from in the future.

*Taken from a

presentation given by

Eur Ing Jonathan D

Morley, CEng, CEnv,

lead specialist, Lloyd's

Register EMEA at the

4th Annual combined

Chemical and Product

Tankers Conference,

organised by Lloyd's

List Events.

pumps with four cargo

segregations - Nos 1+5 tanks,

2+6 tanks, 3+7 tanks and

4+slop/residue tanks. The

manifolds will be located

approximately at the bulkhead

between Nos 4 and 5 tanks. One

manifold will serve a tank pairing

forward and another pair will

serve the aft pairing. Good

residual value can be added as it

would be easy to upgrade the

6,000 cu m oil tanks to Type 3/

2(k) chemical tanks.

A suggested Panamax tanker

specification for 13% FAME

Type 2 cargoes: to be suitable for

Type 2 chemical cargoes in a cost

effective manner. With 6,000 cu

m tanks, by adding a transverse

bulkhead (we end up with 3,000

cu m tanks and with an additional

deepwell pump (best option), or a

valve in the bulkhead).

If one pair of tanks is

converted, it will mean that 13%

of the cargo capacity will be Type

2, then each pair of tanks will

give multiples of 13%; if the

3,000 cu m slop tanks are added,

it will give an additional 6%

capacity if required. The vessel is

to be suitable for biofuel. The

vessel may pick up FAME in a

different location to the oil cargo

and so the vessel should be

suitable for new flows of oil like

substances/ petrochemicals. Some

cargoes such as toluene require

Type 3 tanks, while xylenes

require Type 2 tanks.

The economical tank/pump

arrangements will be deepwell

pumps with four cargo

segregations: Nos 1+5 tanks, 2+6

tanks, 3+7 tanks, 4+slop/residue

tanks. The manifolds will be

located approximately at the

bulkhead between Nos 4 and 5

tanks. Again one manifold will

serve one pair of forward tanks

and the other one, the pair of aft

tanks. For good residual value, it

should be easy to upgrade the

6,000 cu m oil tanks to Type 3/

2(k) chemical Tanks. It will also

have a wide range of cargoes that

can be carried in the Type 2

tanks.

A suggested Panamax tanker

specification for 100%

FAME/xylenes Type 2 cargoes:

To be suitable for Type 2

chemical cargoes in a cost

effective manner. All the tanks

are of 3,000 cu m capacity for

Type 2. The vessel is to be

suitable for biofuel. Vegetable oil

producing countries will want to

add value to their product as

FAME, also their

labour/production costs will be

less than those of Europe/US.

The vessel may be suitable for

the carriage of biofuel blends

over 15% and suitable for new

flows of oil like

substances/petrochemicals. Some

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Page 20: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

TANKEROperator January/February 200818

INDUSTRY - CHEMICAL/PRODUCT TANKERS

being delivered from South

Korean shipyards will continue

load palm oil and other similar

cargoes for the Continent to

position themselves into the

Atlantic Basin trades.

Tonne/miles are expected to

grow with new trades possibly

seen from Trinidad and Chile, plus

other Caribbean/Gulf of Mexico

and South American loading areas

to Asia. The Middle East Gulf will

also play its part with the build up

of refinery capacity, despite delays

expected in Iran.

Gilje also warned that she

expected vetting to become much

stricter with major charterers

possibly opting for a 15 year age

limit on vessels.

Lack of LR3s

Nico Borkmann of ACM Shipping

said that there was still insufficient

business for LR3s (Suezmaxes) at

present. "It (they) may take a few

more years," he said. He thought a

breakthrough could come when

India becomes a major exporter to

northern Europe.

However, delegates thought

that with the expansion of the

Panama Canal, it might be worth

considering trading an LR3 with

several parcels, including a

combination of IMO II and IMO

III type cargoes.

Borkmann's research revealed

that there were 12 coated

Suezmaxes built from 2004

onwards, which were all trading in

crude at the end of November. He

warned that vessels of this size

would have to lighten off most US

ports, which would pose logistical

and storage problems and would

also become a more costly exercise.

Research analyst Tina

Gilje of Norwegian

broking house Inge

Steensland gave a

breakdown of the various fleet

segments. She said that the total

existing IMO classed fleet of

3,000 dwt plus vessels, as at the

beginning of December,

amounted to 2,727 totalling 55.1

mill dwt. Perhaps of greater

significance, the orderbook stood

at 1,528 vessels of 37.4 mill dwt,

or 68% of the existing fleet.

The average age of the existing

fleet is only 9.4 years. Those of

over 15 years of age amounted to

a 27% share of the total of vessels

in service, while vessels of over

20 years old amounted to 20% of

the total. Finally, the percentage of

the fleet of over 25 years of age

was only 9%. The assumed

scrapping age was 27 years.

At the time of the research, some

578 tankers were due for delivery

this year, followed by 452 in 2009

and 190 in 2010.

Breaking the figures down into

tonnage segments, the fleet totals

in the 3,000-30,000 dwt range

IMO class chemical carriers were

1,869 in service and another 952

on order or building. The average

age of this sector was 11.4 years

with 37% being over 15 years of

age. Some 12% were over 25

years of age.

In the same size range, taking

product/CPP tankers without IMO

class, the figures were 1,395

vessels in the existing fleet and

only 38 vessels on order. Here the

average age figures were much

higher at 21.6 years with 73% of

the fleet being over 15 years old,

60% of over 20 years of age and

a huge 42% of over 25 years old.

In the larger size range of

30,000-60,000 dwt, owners are

now ordering vessels with IMO

class, but the total coated tankers

not having IMO class stood at

508 of 22.4 mill dwt, while the

newbuildings came in at 95

tankers of 4.3 mill dwt, or 19% of

the present fleet. Here some 34%

were in the 15 years and over age

bracket and the average age of

the fleet was 10.7 years.

In the LR1 coated Panamax

sector, the existing fleet stands at

244 vessels, while confirmed

orders amounted to 45% of the

existing fleet, or 109 vessels. The

average age of the existing fleet

was 10.6 years with 41% being

over 15 years of age.

As for the coated Aframax, or

LR2 sector, the existing fleet stood

at 113 vessels with the equivalent

of a massive 73% of the existing

fleet on order or building, totalling

75 vessels. The average age of the

existing fleet was 7.2 years with

19% over 15 years of age. EA

Gibson's Pat Tye pointed out that

LR2 sizes had increased to an

average of 107,000 dwt and that

more owners and operators were

looking for coated vessels of this

size. He also said that MRs were

increasing in size, with designs

rising to 47,000 dwt, 51,000 dwt

and 52,000 dwt. These were now

taking cargoes from the

Panamaxes.

Looking ahead to the single

hull phase out of 2010, Gilje said

that there were four single hull

coated Aframaxes, 19 Panamaxes,

48 MRs and 81 handysize tankers

currently in service.

In summary, she said that the

IMO class tonnage was growing

exponentially and these types of

vessels will load more products and

become involved in more trades.

There is a huge growth pattern in

the Panamax and Aframax sectors,

which are still relatively small.

These types are expected to grow

by 20% year on year for at least the

next three years.

Scrapping should help balance

fleet growth, but as always,

timing will be the key element,

she said. Intertanko's Erik

Ranheim said in his presentation

that the 2010 single hull phase

out will have little impact on

product tankers.

Gilje continued by saying that

the increase in IMO type trades

will be seen on the Houston/Far

East trades and in the palm oil

exports from the Straits to

northern Europe and elsewhere.

For example, newbuilding MRs

MOL’s 48,358 dwt Pigeon Point is an example of an MR type,

popular in the US. She is seen arriving in Rotterdam.

Refinery expansionkey to success

At the recent Lloyd's List Events Chemical and Product Tanker Conference there were

several presentations given about the state of play in the make up of the various fleet

segments and comments on the market in general.

Page 21: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

January/February 2008 TANKEROperator 19

INDUSTRY - CHEMICAL/PRODUCT TANKERS

refineries were 25 years old or

more and could not easily be

modified.

Galbraiths' Simon Chattrabhuti

agreed that Southeast Asia and

India would continue to grow. He

saw an increase in intra-Asian

market imports from India.

Gibson's Tye said that India would

put pressure on Singapore as an

exporter of product. Chattrabhuti

said that even Vietnam was

building oil refineries.

In the Asia/Pacific region,

demand in Australia/New Zealand,

Japan and South Korea was likely

to fall. North America would

continue to see growth in imports,

but Europe would only produce

low growth. Interestingly,

Chattrabhuti thought that more

LR2s would use Brazilian ports.

Tye expected rates to soften

considerably in the short term,

but once the phase out and the

huge refinery upgrades and

building programmes come on

stream, rates should firm.

He explained that US ports were

still geared to MR trades and not to

larger LR1 and LR2 hulls.

He agreed with Gilje that the

build up of refinery capacity,

especially in Saudi Arabia and

Kuwait, will mean that in general

the Middle East Gulf will

become refined products export

orientated by around 2012. India

also has massive plans to

increase refining capacity and

some of the products will be

designated for export, which

should increase tonne/miles.

Korean domination

As for the shipbuilders, South

Korea dominates the larger sector,

building around 45% of the

world's tankers of all types.

Elsewhere, Turkey has picked up

23% of the smaller tanker market,

mainly chemical/products. By

and large, the smaller size sector

of under 20,000 dwt is not

keeping up with its larger

counterparts in fleet expansion.

In Asia, the lead time from

ordering to taking delivery of a

newbuilding has increased to

around three years from 12-24

months witnessed before the

shipbuilding boom.

Today a 47,000 dwt MR type

will cost around $50 mill, or

more while a five year old vessel

of a similar type will command

almost the same price on the

secondhand market.

Regarding the future of India,

Essar Shipping's ceo Sanjay Mehta

said that European petrochemical

exporters to China would not be

competitive compared with Indian

refiners as by 2011, they will

change from being a net importer

to an exporter of refined products

and chemicals.

He thought that exports would

get more complex in the future

with 100,000 tonne parcel sizes

becoming the norm from India to

Europe and the US. He said that

one of the major problems with

Europe and the US was that their

An example of a small chemical tankers is the 8,674 dwt Cape

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Page 22: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

presents

CONFERENCE TOPICS INCLUDE:• Arctic Sovereignty: International Policies and Current Realities• Debate on the Future of Arctic Navigation • Shipping Needs and Shipownerís Perspective on Future Trends and Investment• New Concepts for Ice Class Vessels• Focus on Winterisation of Equipment for Cold Weather Operations• Ice Training, Navigation and Pilotage

CHAIRS & SPEAKERS INCLUDE:- Vladimir I Evenko, Vice Director-General, Russian Maritime Register of Shipping - Wilhelm Magelssen, Senior VP - Head of Marketing and Business, DNV Maritime- Dr Kirsi Tikka, Vice President, Corporate Technology, ABS- Dr Robert Huebert, Associate Professor, Dept of Political Science, University of Calgary- Dr Lawson Brigham, Deputy Director, US Arctic Research Commission & Chairman of AMSA- Mikko Niini, President, Aker Arctic Technology Inc- Otto Granli, Vice President LNG BD, International Gas Development, StatoilHydro ASA

Supported By:

Admiral Makarov State Maritime Academy

CNIIMF

JOINT LEAD SPONSORS:

SPONSORS TO DATE:

Lloyd's and Lloyd's Crest are registered trademarks of thSociety incorporated by the Lloyd's Act 1871 by the name of "Lloyd's

For further information visit www.arcticshipping2008.com; alternatively contact Nataliya Yatsenkoat [email protected] or telephone +44 20 7017 4390

For sponsorship and exhibiting opportunities, please contact Paul Skinner at [email protected] or telephone +44 20 7017 4402

Official Publications:Supporting Association:

Official VisaProvider:

Strategic OnlinePartner:

SupportingPublications:

VIP: LM1004/Toadv

Page 23: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

January/February 2008 TANKEROperator 21

well as timely. "An appropriate

response can only be achieved by

employing suitably qualified and

experienced personnel."

By mid-November last year,

the Marshall Islands' registered

fleet stood at more than 1,640

vessels of 38.4 mill gt and was

the fourth largest registry. It is

currently white-listed by the Paris

and Tokyo MOUs, as well as

maintaining its position in the US

Coast Guard's Qualship 21

programme for the third year

running.

This programme was initiated

by the USCG in January 2001 to

Speaking at a recent

conference, Ramage

said that the shaping

of new maritime

regulations, in-depth

investigations into vessel

incidents and accurate round-the-

clock technical support all come

under a flag state's responsibility

and are essential to promoting

safety at sea.

He pointed out that the object

of a flag state investigation is not

to apportion blame but to identify

the root cause of an incident. This

information can then be used to

promote the safety of life and

property at sea, as well as

protection of the environment.

Ramage acknowledged that

individual flag states acting

independently cannot decide

whether or not new legislation is

introduced. "The duty of the flag

state at the IMO is more than just

participating in the committees

and signing conventions. Flag

states should have a proactive,

permanent delegation, obtaining

feedback from the industry on

upcoming regulations, which can,

if appropriate, be used to modify

the convention under discussion."

However, developing and

ratifying conventions is only one

side of the process. "Flag states

have a responsibility to provide

advice and guidance to owners in

a clear and concise manner on the

impact of such regulations,"

Ramage said. "Many of the new

regulations coming out are of a

very complex nature and require

experts who are able to translate

such regulations into a useable

form."

It is also important that advice

and guidance is available around

the clock. He stressed that the

technical advice provided by a

flag state should be appropriate as

Flag states crucial topromoting safety at seaThe role of a flag state in assisting shipowners to achieve safe and efficient operation of

ships cannot be understated, said John Ramage, managing director of International

Registries (IRI) (UK), which administers the Marshall Islands Registry.

INDUSTRY - SHIP REGISTRIES

s e r v i c e & q u a l i t y a r e w i t h i n y o u r r e a c h

Dalian

Ft. Lauderdale

Hamburg

Hong Kong

London

Mumbai

New York

Piraeus

Roosendaal

Seoul

Shanghai

Singapore

Tokyo

Washington, DC/Reston

Zurich

INTERNATIONAL REGISTRIES, INC.THE MARSHALL ISLANDS MARITIME AND CORPORATE ADMINISTRATOR

LondonTel: +44 20 7638 4748 | Fax: +44 20 7382 7820 | [email protected] www.register-iri.com

Page 24: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

TANKEROperator January/February 200822

INDUSTRY - SHIP REGISTRIES

Largest registries upgrade their services

IMO and SOLAS, and accepted

by Norway (NOR/NIS), Sweden,

Denmark, UK (MCA), Bahamas,

Singapore, Isle of Man, Marshall

Islands and Malta.

Due to a recent legislative

amendment, an E-license is

required in order to use electronic

logbooks on board any ship,

which means that users will

benefit from the convenience of

obtaining a single annual E-

License rather than buying each of

the traditional printed log books

used on board during the year.

Currently, the PMA's fleet

comprises of more than 7,400

ships totalling 162 mill gt. Since

2004, over 1,000 vessels,

representing around 20 mill gt,

have hoisted the Panama flag,

the PMA claimed.

The two largest

registries - Panama and

Liberia - have both been

very active during 2007.

At the end of last year, the

Liberian registry announced a

major milestone when the number

of vessels entered reached 2,665

and the total gt peaked at

82,165,902, comfortably beating

the previous record of 2,617 ships

and 81.5m gt, which was achieved

between the period 1975 - 1979.

Administrator LISCR's coo

Scott Bergeron said, "The

Liberian Registry is approaching

its 60-year anniversary larger and

stronger than at any point in its

history. The growth we have

experienced is across all markets.

Liberia, for example, is the

fastest-growing fleet in Greece

and Germany, and has increased

its Japanese-owned fleet by 18%

in the past year.

"The days of outdated thinking

about open registries are over.

Independent analytical reports

such as the Round Table of

international shipping association's

Guidelines on Flag State

Performance accurately judge

registers on their performance.

The emphasis is now on quality,

safety, efficiency, environmental

awareness and treatment of

seafarers", he continued.

In the tanker sector, LISCR

boasts 809 vessels of just under

38 mill gt, split into 725 tankers

of just over 35 mill gt and 84 gas

tankers of almost 2.9 mill gt. In

number terms, the number of

tankers equals about 30% of the

number of vessels flying the

Liberian flag.

LR to audit Panama

Meanwhile, the Panama Maritime

Authority (PMA) is to take part

in the IMO Voluntary Member

State Audit Scheme.

To help prepare for the audit,

the PMA has asked Lloyd's

Register Quality Assurance

(LRQA) to undertake an audit of

its quality systems early this year.

The administration claimed to

have improved existing and

established new quality systems

targeting the areas of training,

registration procedures and

quality monitoring controls.

PMA recently made its services

available 24/7 and is in the

process of recruiting a further 150

people for its Panama office to

provide technical assistance and

advice on detentions and port

state control matters.

The association said it had

invested some $17 mill in new

software to support the expansion

and is training its staff to ensure

that they can respond to individual

inquiries with the right depth of

knowledge, following several

complaints from owners and

managers about the level of

service. Particular service emphasis

has been put on the gas and

chemical shipping markets, due to

the rapid growth in these sectors.

Stricter controls will also be

put in place on elderly vessels of

say 15-20 years plus and will

encourage clients to improve the

quality of their vessels by

offering new and favourable tax

regimes for newly built vessels

joining the fleet. Not stopping

there, the administration also said

that it will audit class societies

that it deals with.

Branch offices will also be

opened in Greece, Japan and

China later this year, which could

soon be joined by others.

As part of its drive to enhance

its quality status, the

administration has authorised the

use of electronic logbooks on all

its entered vessels.

One logbook to get the nod is

the Kongsberg Maritime K-Log.

Kongsberg introduced its first

logbook system in 2004 and

currently claims to be the leader

in this particular technology.

K-Log is already installed on

several vessels and approved by

Kongsberg’s Maritime K-Log.

by IRI's headquarters in Reston,

Virginia. IRI's Piraeus office led

this effort and conducted a trial

with a shipowner for issuing

officer licenses.

The registry has also opened a

number of new offices and

appointed further technical

specialists worldwide. Examples

include - Hamburg under the

leadership of Simon Biehl;

Rotterdam under Hans Krijger;

Seoul under Captain Young

Kim; Tokyo by a partnership

agreement with Masaharu

Okamoto, president of Marine

Bureau, Inc and Singapore

under Shawn Tan.

motivate the

industry into

eliminating sub-

standard shipping.

Rewards include

a two-year

certificate of

compliance for

tankers.

To cope with

the increase in the

number of

vessels, the

registry has

decentralised its

technical, marine

safety and

seafarers'

documentation operations to save

shipowners time and money.

Seafarer documentation

During 2006, IRI initiated

substantial upgrades in its

seafarers' documentation

database. All of the registry's

worldwide offices are now able to

issue a Certificate of Receipt of

Application (CRA), check the

status of a seafarer's application

and reissue documents if

necessary.

This was followed last year by

equipping regional offices with the

ability to issue officer licenses - a

task previously only undertaken TOIRI UK’s John Ramage.

TO

Page 25: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

Sawyer explained that it was

mainly the older vessels that were

entered into the Safety Watch

Programme.

The CMRs are supplied to the

owner/manager at the end of

each year.

The CMR/CTA scheme has

been underway for four years

resulting in a lot of data being

already available on each vessel,

Sawyer claimed.

Sawyer operates the registry

with around 130 consultant

surveyors and will only use IACS

class societies. He also told

TANKEROperator that a

shipowners' association is being

formed, which will have a council

and a technical committee, which

will allow the Barbados Registry

greater access to the meetings at

the IMO.

At the smaller end of

the scale in terms of

numbers of vessels

entered is the

Barbados Ships' Registry.

Principal registrar Chris Sawyer

explained that the Barbados

registry was a small flag state,

which was well run within its

resources. He stressed the registry

would not overstretch itself by

becoming too big to handle.

Even so, it grew by 22% last

year to 127 ships from the 104

entered at the beginning of

the year.

What Sawyer claims to be

unique is a Condition Mapping

Report (CMR), which the registry

has introduced aiming at giving a

measurable indication of the

general impressions that a vessel

presents to third parties, such as

port state control (PSC).

It is claimed to be quick and

easy to interpret unlike some

class society surveys, which

could add up to 30 pages or more

just for one vessel and may not

vary much between a five year

old and a 10-year old ship.

A CMR is undertaken by

inspectors who complete a

Condition Trend Assessment

Report (CTA) on every visit to a

Barbados registered vessel, which

is a minimum of once per year.

This enables the inspector to note

and grade his or her impressions

about the ship's condition under

four criteria.

These are; -

Appearance (how the ship

looks).

Functionality (state of

equipment readiness, including

standby units).

Control capacity

(professionalism of the crew).

Maintenance (vessel upkeep).

From these categories, a Mean

Result is generated, which is

monitored to give an early

indication if a vessel is in danger

of falling foul of PSC.

The ship's own age is used as a

benchmark. By using this

method, a final grading reflects

the effort made to maintain the

ship of a given age.

For a vessel entered into the

Barbados' Safety Watch

Programme, another CTA will be

carried out during the same year,

thereby generating a second

measuring point every 12 months.

January/February 2008 TANKEROperator 23

INDUSTRY - SHIP REGISTRIES

Living within its meansBarbados introduces system indicating the

general impression an entered vessel would

give to inspection authorities, especially

Port State Control.

TO

A condition trend assessment report is completed on every visit

to a Barbados flag vessel.

Chris Sawyer

Barbados High Commission, Ship Registry, 1 Great Russell Street, London. WC1B 3ND tel: +44 207 636 5739 fax: +44 207 636 5739 email: [email protected]

Be heard loud and clear.

WHY FLAG WITH BMSR?

PARIS MOU. WHITE LIST.

PRAGMATIC APPROACH TO PRACTICAL PROBLEMS

OVER 300 FLAG INSPECTORS WORLDWIDE

US COAST GUARD’S QUALSHIP 21

24/7 CONTACT AVAILABILITY

SHIP FRIENDLY TAX REGIME

be in safe handswww.barbadosmaritime.com

Page 26: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

TANKEROperator's visit. These

involved two VLCCs, a Suezmax

and a Panamax tanker. The

VLCCs were the FPSO Gimboa,

ex Magdelaine and the Frade, ex

An, ex Lu San, ex Lucina. The

Suezmax was another unit of the

Fred Olsen fleet put up for

conversion - the Knock Allan,

while the Panamax was the Deep

Producer 1, ex Laurita. The yard

had previously handled the

conversion of the world's largest

tanker - Jahre Viking - into the

storage unit Knock Nevis, also for

a company associated with Fred

Olsen.

ABS involvement

Leading class society ABS

claimed it was heavily involved

with FPSO conversions worldwide

and especially at Dubai.

For example, the FPSO Cidade

De Vitoria was converted and has

been installed offshore Brazil in

the Espirito Santo Basin. In late

November 2007, Petrobras

reported that the FPSO had been

put online. Two other recent ABS

However, that was

yesterday. Today, it

is part of Drydocks

World - Dubai

(DDW), owned by the huge

government grouping - Dubai

World. DDW includes Dubai

Drydocks, Jadaf Dubai, Platinum

FZ, Platinum Yachts

Management, Pan United Marine

(PUM) - Singapore and soon to

join the fold another Singapore-

based concern - Labroy.

The core activities at the giant

Dubai facilities are still centred

on the tanker and gas sectors.

DDW managing director Nawal

Saigal said that the Dubai repair

facility still handles just under

50% of the world's VLCCs and

99% of the LNGCs that transit

the Persian Gulf.

In total, 324 vessels were

docked in 2006 and upon

TANKEROperator's visit at the

end of November 2007, the yard

had 101 firm bookings for 2008.

Not stopping there the facility

has been very active in large

conversion work and recently

entered the newbuilding sector

as a separate entity.

New conversion berth

To cope with the expected

continuation of large tanker

conversions to FPSOs and FSUs,

the area of the repair centre,

which used to be dedicated to

tank cleaning is being

restructured into a 650 m x 57 m

specialised conversion facility.

The width of the quay will enable

large structures/modules to be

assembled before being lifted

onto the vessels. Saigal explained

that the FPSO conversion market

should last for another four or

five years and that the new berth

will be capable of handling two

VLCCs simultaneously when it

comes on stream early this year.

LNGCs is also an important

market and recently Dubai

handled the life extension

programme on the 1969-built

Methane Polar and docked Exmar

Ship Management's LNGRVs

Excelerate and Excellence. At the

time of TANKEROperator's visit

to the yard, ADNOC's LNGCs

Mubaraz and Mraweh were

undergoing repairs.

While alongside last November,

the two Abu Dhabi LNGCs were

fitted with Global VSAT systems

supplied by Marlink's Dubai

office. The operation to fit

National Gas Shipping's fleet

began last year when Marlink

Dubai won the contract to supply

Global VSAT systems to its entire

gas carrier fleet.

VSAT systems have been in

use on board North Sea shuttle

tankers for many years and in the

last two years have expanded into

VLCC and LPG/LNG markets.

At the drydocks, a fabrication

area of 16,000 sq m is being

prepared to handle a slop

receiving station fitted with a

dedicated tower crane. Another

8,000 sq m area has been made

available by relocating the scrap

and mobile plant area. The group

is hopeful of achieving ISO

14001 accreditation this year.

Four FPSO conversion projects

were underway during

Dubai takes on the world

Since its opening in 1983, Dubai Drydocks has had to cope with the vagaries of the large

tanker market, which at one stage put the viability of the whole operation in doubt

TANKEROperator January/February 200824

TECHNOLOGY - SHIPREPAIR

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January/February 2008 TANKEROperator 25

classed conversions include the Frade and the

FPSO Gimboa, mentioned above.

ABS' scope of classification for an FPSO

includes: review and approval of the FPSO

design for compliance with ABS Rules, survey

of fabrication components in the field to

facilitate compliance with ABS Rules, survey

of the offshore hook-up and commissioning to

ready for first oil.

ABS said; 'a fully classed unit includes: hull

structure, mooring systems and foundations

and all marine, production, utility and safety

systems'.

In addition to the FPSO conversions, the

second of two double sided tankers - Rising

Phoenix - was having a double bottom fitted

at the time of the visit to enable her to trade

in chemicals and products under the new

IBC/MARPOL codes. Both the Rising

Phoenix and Rising Sun were built in 1987

and are of 39,700 dwt. They are managed by

Sharjah-based Warm Seas Development.

In the VLCC sector, the yard recently

handled the Tanker Pacific managed Maritime

Jewel, which involved the replacement of

3,250 tonnes of steel. In 2006, a total of

17,000 tonnes of steel was fabricated at the

yard. The steel department alone employs

2,100 persons.

At the giant drydock complex several

smaller bunker tankers and local tugs have

been constructed, one of the latest being the

7,500 dwt bunker tanker Whitonia for J

Whitaker, which is currently operating in the

UK's Solent area.

However, a few years ago Dubai Drydocks

as it was then known, cleared an area to

construct a dedicated shipbuilding facility,

which was made ready for ship construction in

2006 and included a Hydralift launch system.

By this time, the yard had already won orders

for two large heavy weather semi-submersible

rig hulls. Since then the company has received

an order for four 50,000 dwt MR product

tankers, plus four further options for

Singapore-based Navi8 group. The contract

was worth $175 mill in total and the

construction of the first vessels is scheduled to

commence in March of this year.

Revenue stream

Due to the yard's diversification, Saigal

claimed that the revenue stream is now split

between repairs (50%), conversions (30%) and

newbuildings (20%).

Not stopping there, DDW has also been

awarded the management and operational

contract for the 6,000 tonne shiplift and 11

repair berths at Dubai Maritime City (DMC),

presently under construction. The recently

opened smaller 3,000 tonne shiplift is being

used by regional business partners.

Drydocks World will also manage the

industrial estate at DMC, including

warehouses, workshops, showrooms and shops

that will be leased out to marine contractors

and relevant businesses.

DDW's expansion overseas began in May

last year with the $424 mill acquisition of

Singapore listed builder and repairer PUM,

TECHNOLOGY - SHIPREPAIR

DDW’s managing director Nawal Saigal

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Page 29: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

which has yards in Singapore and Batam. It

is now known as Drydocks World -

Singapore. A contract was also signed with

the Batam Industrial Development Authority

for the development of a maritime centre on a

200 hectare plot.

This foray into Singapore was followed by

an agreement to purchase another local

publicly quoted company - Labroy Marine -

for $1.63 bill, which will give the Dubai

group an entry into the rig building market.

The trading of Labroy's shares was suspended

on 4th January this year. Like PUM, Labroy

has building and repair yards in Indonesia.

Further expansion is planned in the

Asia/Pacifc arena, including India and China,

plus the Mediterranean and possibly in

Latin America.

DDW business units have also been set up

in Sweden and Japan to market the group in

the Baltic countries and in Japan and South

Korea. The establishment of regional business

centres was aimed at reducing the group's

reliance on agency networks.

Due to the diversification in Dubai itself,

the workforce has been expanded to more than

9,000 and further recruitment is on the cards.

Looking ahead to Ras Laffan's $430 mill

repair project currently under construction to

be managed by Nakilat and Keppel Marine &

Offshore, Saigal commented; "to build a team

takes longer than to build a facility." The new

facility will obviously be competition for both

Bahrain-based ASRY and Dubai.

Scaffolding supply

The giant drydock complex has been using

HAKI Universal Scaffolding systems for 25

years. The repair yard currently utilises about

1.8 mill sq m of HAKI scaffolding, being used

by more than 200 people each day for all the

projects, including in the construction of the

semi-submersible hulls.

HAKI is the largest supplier of scaffolding

for the construction and offshore industry in

Scandinavia, UK and to most of the shipyards

in Europe and the UAE, claimed Bernard

Podlinski, HAKI's sales and marketing

director. He also claimed that HAKI

scaffolding systems are especially suitable for

the marine industry.

The manufacturer recently introduced a new

scaffolding system, which is claimed to have a

significant weight reduction, while at the same

time retaining high standards of safety,

comfort and efficiency.

For example, Podlinski explained that all

the beams and guardrails are supplied with

spring locking catches and are made of high

tensile steel, resulting in up to 20% lower

weight for the same strength. The weight-

savings on the stairtower components are even

more significant as 30% of the weight could

be saved, thanks to an innovative design and

choice of material, he said.

The new lightweight steel scaffolding can

be suspended and connected anywhere and in

any direction, providing the necessary

flexibility. The design allows for a significant

increase in speed of erection as well as a

reduced call on dockside support, resulting in

cost effectiveness and flexibility for the

shipyards.

Looking into the future, HAKI plans to

extend its export markets even further with its

next target being Australia.

January/February 2008 TANKEROperator 27

TECHNOLOGY - SHIPREPAIR

ADNOC’s LNGC Mubaraz seen in dock. Marlink Dubai fitted a Global VSAT system on board

during her visit. Photo credit – Alan Thorpe.

TO

Page 30: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

recently opened at the DMC site

and another 6,000 tonne shiplift is

due to come into operation early

this year together with 11 repair

berths as facilities and companies

gradually relocate from the

original repair complex in Dubai

Creek.

President Paul Friedberg said

there were five areas of growth

earmarked for the company.

These were - the organic growth

of each business unit; developing

further facilities in existing

locations; the setting up of new

locations; trading products and

systems development and

acquisitions and/or joint ventures.

Goltens has built itself up to

become one of the world's

leading in-situ repairers, the

largest part of which concerns

main engines, reconditioning

crankshafts, repairing

turbochargers etc.

The company also trades

original spare parts and

reconditioned spare parts. One of

the major equipment repairs

concerns governors, mainly of

Woodward design. Engine spare

parts also figure strongly in

Goltens' portfolio.

Leading representation

Goltens represents several of the

world's leading equipment

suppliers, including Scandinavian

Electric Systems (SES), ITW,

Bjorge, TeamTec, TTS, Infrafone

and ETech. ETech's nitrogen

generators are used on board

chemical tankers, LNGCs and in

the offshore sector. With Goltens,

ETech has worked with builders

Daewoo and Samsung plus owners

BW Gas and AP Moller-Maersk.

In the Dubai area, Drydocks

World tends to pass on in-situ

work to Goltens, while the

This has included the

opening of a new

workshop and office

complex in Shanghai

in November 2006; the building

of a new repair facility at

Spijkenesse, near Rotterdam to be

opened in January 2008, plus the

opening of offices in Jeddah,

Qatar and Kobe last year.

The Jeddah office may be

followed by a new workshop.

Another workshop is under

construction at Vungtau, Vietnam,

which will come on stream

during the middle of this year.

This will be located on a 6,000 sq

m plot, on which a new marine

centre and workshop will be fully

operational by mid-2008.

Goltens is also looking to

establish a manpower sourcing

centre in the Philippines to supply

technical staff to China,

Singapore, Vietnam and the

Middle East. There is also the

potential for business

development in the Philippines.

Also planned is the opening of

an office in Greece this year,

possibly in Piraeus and the

construction of new facilities,

including a repair shop, at

Algeciras.

Goltens' expansion was

described as extensive in

southeast Asia and the Far East

where the company has

experienced a 50% increase in

sales and profit since 2005 and

due to the development plans

underway, forecasts a further 50%

increase through 2010.

Moving office

As for the company's largest

repair facility at Dubai, it will be

moved to a new home within the

Dubai Maritime City (DMC)

complex around Easter 2009.

Two plots have been reserved of

around 20,000 sq m in total,

which is more than double the

area of the Al Jadaf complex

where Goltens currently operates.

A 3,000 tonne shiplift with its

attendant parking slots was

TANKEROperator January/February 200828

TECHNOLOGY - SHIPREPAIR

Goltens in expansive mood

Leading Dubai-based marine equipment

repair specialist Goltens continues to

expand its empire worldwide.

Goltens also fitted Beme anodes to the ballast tanks of the Knock Nevis.

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January/February 2008 TANKEROperator 29

TECHNOLOGY - SHIPREPAIR

company also has a presence in ASRY,

Bahrain.

For the huge Qatar LNG projects, Goltens

has an agreement with Hamworthy covering

compressors, reliquefaction and regasification

plants as the supplier does not have a

maintenance division.

Friedberg said that main engine repairs had

remained stable but with the massive increase

in newbuildings, more repair and maintenance

work was expected. He said the challenges

facing Goltens was to increase the focus on

OEM after sales, industry consolidation and

the increase in more sophisticated technology.

As for future growth Friedberg said he was

targeting organic growth in each of the

business units, developing the facilities in

existing locations, investing in new locations,

further developing products and systems

trading and lastly investigating the possibility

of further acquisitions and joint ventures.

Anodes fitted on major conversions

Norwegian concern Beme Corrosion

International also used Goltens to install its

patented next generation tank anodes on some

major conversions at Dubai.

One task included the fitting of anodes in

the water ballast tanks of the world's largest

tanker. The 564,650 dwt ULCC Knock Nevis,

ex Jahre Viking, was trading as a crude oil

carrier until shipowner Fred Olsen Marine

Services took over 100% ownership of the

vessel and made the decision to convert her to

a FSO in 2005.

The conversion was carried out at Dubai

Drydocks, since restyled Drydocks World -

Dubai and the vessel now operates as a storage

unit off Qatar on a 10 - 15 year contract.

Beme was awarded the contract to

manufacture and supply of 6,400 patented tank

anode units, which was an increase on the

original order for 4,000 units. This involved

around 150 tonnes of zinc tank anodes for this

one contract.

Full scale production of the anodes was

handled by Beme's licensee in Singapore who

shipped the anodes to Qatar. Most of the tank

anodes were installed in the ULCC's water

ballast tanks, while the vessel was anchored

off Qatar.

The total installation of anodes was carried

out by Goltens Dubai. In a report, which

monitored the time it took for this type of

installation, Goltens confirmed that the

quantity of anodes installed per day is about

four times more than the 'old fashion' plank

type anode. As a result, the tanker's owner

recorded a saving of some $600,000 for the

installation of anodes alone.

Following this, Fred Olsen purchased the next

generation tank anodes from Beme for three

more large tankers up for conversion at Dubai.

In addition to the financial savings for the

mounting of anodes separately, the electro-

chemical properties for the patented tank anode

is far superior to the plank tank anode types,

claimed Jack Monsen, Beme's managing

director.

Monsen also said that he thought that

Beme's next generation tank anode, which was

awarded a patent for both the sacrificial anode

design and the fastening device, is the only

worldwide cathodic protection system using

sacrificial zinc and aluminium anodes to

receive the certificate.

Beme has conducted many years of research

in fighting corrosion in water ballast tanks.

The company said that the scale of the

problem is highlighted more in double hull

tankers as the area of plating exposed to

potential corrosion is two or three times

greater than that on board a single hull vessel.

The lack of accessibility is a good example

of the pitfalls in the design of most double hull

vessels. Numerous reports from surveyors

stressed that they have had particular difficulty

accessing the double hull water ballast tanks.

The traditional method of inspection is often

impossible or dangerous due to the confined

space and because of the positioning of the

structural members.

In some instances there was insufficient

space for the crew to prepare and launch a raft

and that boarding from vertical ladders was

hazardous. Scaffolding can also present

problems where there is not enough clear

space to construct it, or remove it.

Beme claims that the advantages of the new

tank anode are -

Faster polarisation, even on short ballast

voyages.

Anode mounting to 'one point' only.

Easy installation in narrow spaces.

Installation time reduced by 70-80%.

Replacement time reduced by 75-95%.

No special tools needed, only a hammer.

Complete anode installation in the ballast

tanks without any hot work needed.

Optimum and stable metallic contact

between the anode's core and clamp.

The clamp will not loosen due to the

patented spiralock thread.

Unique insert mechanism ensures close to

100% utilisation of the anode material,

compared with 70-75% with traditional

anodes.

Around 50% reduction in the amount of

anodes and fasteners, due to the anodes

distributing more current per time unit. TO

Page 32: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

thickness (DFT), coating

advisers must have either

FROSIO or NACE

certification.

3) Coating quality - which

includes type, pre-qualification

and specification.

Overall, there will be a significant

increase in the entire coatings

process documentation, from the

raw steel plates to the final

coating system. The details must

be included in a Coating

Technical File (CTF), which is to

be kept on board and maintained

throughout the vessel's lifetime.

Hempel pointed out that

shipowners, shipyards and

coatings manufacturers will all be

affected. For example,

shipowners will get a higher

quality vessel with lower

maintenance costs and a higher

retention values. However, there

will be additional costs at the

newbuilding stage to meet the

PSPC inspection criteria. Better

documentation will also be

needed, while the paint

specifications will need to

comply and the CTF will have to

be maintained and kept on board.

Hempel's director of marketing

and business development Klaus

Moller claimed that newbuilding

costs could go up by as much

as 10%.

As for shipyards, new

construction procedures might

have to be introduced,

significantly increasing the need

for documention. This could

result in longer building time

leading to a lower throughput at

the yard, a need to employ and

train more staff to carry out the

inspections, possible investment

in new facilities, as well as

manpower.

Yards will also have to cope

with fewer options available for

the shop primer, ballast tank

Coatings

manufacturers are

developing new

ranges of protective

systems and giving advice on

what to expect in the light of the

forthcoming Performance

Standards for Protective Coatings

(PSPC) regulations.

Copenhagen-based Hempel,

has produced a booklet

explaining what measures need to

be taken from a manufacturer,

owner and shipyard perspective,

from which the following extracts

are taken and from discussions

with the coatings manufacturer.

The history of the PSPC goes

back to 8th December 2006,

when the standards were adopted

by the IMO, to be included within

SOLAS. It applies specifically to

the protective coatings used for

dedicated seawater ballast tanks

in every type of vessel. Its aim is

to reduce corrosion in an area,

which has been somewhat

neglected down the years, due to

its non-earning function,

compared with cargo tanks.

A target has been set for the

coating of 15 years useful life

during which the coating will be

classified as being in good

condition, according to a

definition used by IACS. This has

been identified as the time needed

in enhancing the structural

integrity of the vessel by avoiding

the effects of corrosion, thus

improving safety at sea.

PSPC will be mandatory and

will apply to newbuildings

covering the protection of their

water ballast tanks in all ships of

over 500 gt. It will enter into

force on all contracts placed on or

after 1st July this year. If there is

no newbuilding contract as such,

it will apply to all keels laid from

1st January 2009 onwards. It will

then apply across the board to all

vessels delivered from 1st

January 2012 onwards.

The new performance

standards have already been

applied to tankers' ballast tanks

and double side skin spaces since

8th December 2006, in

accordance with IACS' Common

Structural Rules (CSR).

PSPC covers improved

procedures and better quality

control through increased

inspection requirements at all

stages within the following three

main areas -

1) Surface preparation - primary

and secondary, including

requirements for profile,

cleanliness and shop primer.

2) Coating application - which

includes surface preparation

at all stages, dry film

Ballast Tank Coatings-the new regulations explained

Shipyards, coating manufacturers and

shipowners need to be more vigilant

when it comes to ballast tanks.

TECHNOLOGY - BALLAST TANK COATINGS

TANKEROperator January/February 200830

The confines of a ballast water tank can clearly be seen.

Page 33: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

Trust Application & Curing Ensured by Certifi ed Inspectors

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+01 440-937-6218 Phone+01 440-937-5046 Faxwww.adv-polymer.com

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With proper surface preparation, applica-tion, heat curing and fi nal inspection, your tanks will provide years of service.

We employ our own experienced team of MarineLine inspectors, operating at shipyards throughout the world, to review, test, and approve every phase in the coating project — ensuring a thorough surface preparation, smooth and consistent applications, and con-trolled heat curing to complete the process.

Only after stringent and exacting fi nal tests is the MarineLine coating certifi ed and warranted, ready for immediate service of your profi table cargoes!

The MarineLine ® coating system is in use on hundreds ofchemical vessels throughout the world, safely carrying acids,alkalis, solvents, edible oils and many other liquid cargoes.

Advanced Polymer Coatings, Ltd.Avon, Ohio 44011 U.S.A.

Page 34: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

TANKEROperator January/February 200832

TECHNOLOGY - BALLAST TANK COATINGS

exposed to a wide variety of tests

covering not only application

properties and corrosion

properties but also mechanical

factors to establish

the flexibility of the paint. The

coating systems have also been

tested by independent

laboratories, such as DNV,

which has a ballast tank

simulation facility. Hempel's

range of products for ballast tanks

includes -

Hempadur Fibre 4760 -

Abrasion and crack resistant

light coloured epoxy coating

containing synthetic mineral

fibres that significantly

decreases the risk of coating

cracking. Available in

aluminium pigmented shade

and in both summer and

winter versions for flexible

application properties. It is

claimed to provide a potential

for prolonged vessel service

life and reduce the need for

maintenance and repair due to

coating systems and DFT. They

will also have to contend with the

requirement to have all inspection

data - from raw material to final

coating - both retrievable and

auditable entered into the CTF for

which they will be responsible for

preparing. Surface preparation

could be a problem and prove to

be a far more lengthy process

than before.

Shipyards usually have the

responsibility for choosing the

paint applicator, putting the onus

heavily on the yards to perform to

the new standards introduced.

Meanwhile, coatings

manufacturers will have to cope

with a greater need for testing

and documentation, increased

requirements with the attendant

costs for obtaining type approvals

for water ballast coating systems

from external laboratories. They

will also have to be involved in

the preparation of the CTFs and

will have to modify product data

sheets to conform with the new

requirements and specify the

maintenance plan to meet the

coating system's 15-year useful

life target.

There will also be greater

demand to employ FROSIO or

NACE certified personnel to carry

out the required inspection work.

For its part, Hempel said that

the company had invested heavily

in the research and development

of new protective coatings,

including ballast tank coatings, to

comply with new requirements.

Each individual coating system,

and its constituent paints, is

Ballast tanks must be coated in a light colour to ease the

inspection process.

UNDERWATER SOLUTIONS

Hydrex underwater technology and

services result in high quality

solutions to the repair and replacement

problems encountered by ships and

offshore vessels.

We provide a complete service that will

reduce or avoid off-hire time entirely. From

major projects to simple inspections,

Hydrex has the world-wide facilities and

capability to meet your demands.

The removal and repair of a thruster from an

offshore vessel in situ; stern tube seal

repairs done whilst the vessel carries out its

normal operations in port; propeller

cropping or repairs; hull corrosion and

damage: Hydrex has the technology to deal

with all these difficulties and many more.

We create dry-dock conditions in situ of the

vessel doing work in place and underwater.

Our services prevent the need to go into

drydock so saving time and money.

Our work is fast and efficient and always

authorized by the Classification society.

www.hydrex.be +32 3 213 5300

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January/February 2008 TANKEROperator 33

TECHNOLOGY - BALLAST TANK COATINGS

must be documented.

Turning to the CTF, Hempel

said that it must include as a

minimum -

Statement of compliance or

type approval for the coating

system.

Copy of the coating system's

technical data sheet.

Shipyard's work record with

respect to the coating's

application.

Procedures for the inspection

and repair of the particular

coating system used.

Coating log provided by the

inspector, stating that the

coating was applied in

accordance with specifications

and to the satisfaction of the

coating supplier.

Documentation of the

shipyard's verified inspection,

featuring the completion date,

inspection results, remarks and

the relevant signatures.

Details regarding any repair

and maintenance undertaken

during the coating's service

life.

the increased strength and

flexibility via the fibre

reinforcement.

Hempadur 1763 - light-colour,

epoxy ballast tank coating,

available in both summer and

winter versions. It is claimed

to ensure excellent protection

with minimum subsequent

maintenance requirements.

Hempadur Multi-Strength

4575 - abrasion resistant, pure

epoxy coating. Hempel

claimed it offered long-term

protection in connection with

quality steel finish. It is

particularly suitable for heated

bulkheads, for example of

chemical tankers carrying hot

cargoes, or where abrasion

resistance is required.

Hempel also listed a summary of

PSPC requirements including the

surface preparation, coating

inspection, coating system and

what to include in the coating

technical file.

On the subject of surface

preparation, Hempel advised that

blasting must be accomplished to

Sa 2.5 with profiles between 30-

75 um (DFT). Soluble salts must

be removed to less than 50 mg

per sq m sodium chloride and the

shop primer must be zinc silicate-

based, or equivalent, and the

application and compatibility

with the coating system must be

documented. If not, at least 70%

of the intact shop primer must be

cleaned to Sa 2.

All sharp edges must be

rounded to a radius of 2 mm or

more, visible dust must be

removed and there should be no

oil contamination. Erection joints

must be prepared to St 3 or Sa 2.

Areas with rust and damaged

coating must be blasted to Sa 2.5,

if these amount to more than 2%

of the tank's total surface area.

As for the coating inspection

phase, the persons responsible for

the inspections must be certified

to FROSIO Level III (red), or

NACE Level II or the equivalent.

The inspections must include

the surface preparation at all

stages, including surface

conditions, such as temperature,

relative humidity, dew point,

salts, oil, grease and other

contaminants. For primary

surface preparation, confirmation

of the quality and thickness of the

shop primer and its subsequent

curing must be sought. For block

assembly and erection, visual

inspection and measurements of

DFT must be undertaken.

The coating system itself must

be epoxy-based, or another

system can be used with a

performance that complies with

test procedures. A multi-coat

system of contrasting colours

must be used and the top coat

must be light in colour to ease the

inspection process.

Pre-qualified coating systems

must have a B1 rating (DNV

ballast tank simulation test) and/or

five years in-service life in good

condition, according to IACS.

Two full and one or two stripe

coats should be administered,

while the minimum nominal DFT

must be 320 um with the 90/10

rule. Finally, its compatibility

with zinc silicate shop primer TO

Enraf

TanksystemEnraf

Page 36: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published
Page 37: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

January/February 2008 TANKEROperator 35

Tank cleaning - a majorchallenge on board tankers

Tank cleaning is one example of teamwork

between officers and crew and between the

engine room and deck departments**.

TECHNOLOGY - TANK CLEANING

TANK CLEANING GUIDE by Dr.Verwey

More Products based on Chapter 19 IBC-Code 2007 EditionMore Product Information Procedures to Clean Bio Diesel - Fatty Acid Methyl Esters Procedures with regards to Tank Lining Advice on Chemicals to be used for final cleaning FOSFA and NIOP banned Previous Cargo Lists

INCLUDING :

Chemical Laboratory Dr.A.Verwey Coolhaven 32 - 3024 AC Rotterdam -- HollandPO Box 6003 - 3002 AA Rotterdam -- Holland

Phone : +31 10 4761055 Fax: +31 10 4773562E-mail: [email protected] for ordering new Tank Cleaning Guide

E-mail: [email protected] for Tank Cleaning Assistance

The new 7th Edition 2007

Dr. Verwey has a specialized team of Cleaning Supervisors on stand by

to assist your vessels with tank cleaning at sea

Understandable, because the

supplier wants the tank to be

clean if the cleaning agent is

used; better safe than sorry.

Negatively, linking up with the

above, in a way that coatings are

affected each and every time to a

more or less degree, resulting in a

shortened life span of the tank

coating. So minimising the used

quantities of cleaning chemicals

saves money both immediately

and in the long run. Coating

renewal is a high cost

maintenance item.

The biggest tank cleaning issue

occurs when the initial tank

cleaning procedure was not

correct. The results of a wrongly

chosen procedure are most

difficult and sometimes even

impossible to remove. These

results may consist of greasy

layers, discoloured stains or spots

of high viscous cargo remnants

impossible to remove by standard

cleaning. In some cases, the

above can only be removed by

hand, followed by, if applicable,

coating repairs.

Tank cleaning is inextricably

bound up with inspection. As

long as you don't see the initial

condition of the tank or the

progress made (or not) after a

part completion of a tank

cleaning, it is hard, let alone

Achieving the ultimate

goal of clean and

accepted tanks

depends on

numerous aspects. Such as- type

and condition of the tank lining,

previous cargo, next cargo,

availability of cleaning agents,

tank cleaning equipment on deck

and boiler water temperature and

steam in the engine room. Most

important, however, is the

knowledge/experience and the

dedication of the crew to perform

a proper tank cleaning task.

If, for some reason, the crew

was not familiar with the

previous cargo, or the tank

cleaning procedures used did not

lead to an acceptable result, there

are several sources of information

on how to proceed.

One of these sources is the

Tank Cleaning Guide*, a book

containing advice on the correct

tank washing procedures from

one product to the other. It must

be born in mind that the resulting

tank washing procedure outlined

is an average taking in different

parameters, such as tank size,

type of cleaning equipment and

last but not least the condition of

the tank after discharge and

before tank cleaning.

The Tank Cleaning Guide

provides the user not only with

tank cleaning procedures but also

with properties of the particular

substance to be cleaned. By

following the advice, the user can

familiarise him or herself as to

why that particular cleaning

procedure has been suggested.

Tank cleaning has everything to

do with melting point- and

boiling point temperatures,

solubility and more. For example,

the user will note that it is no use

cleaning a tank with a cleaning

water temperature of 40 deg C

while the substance's melting

point is 45 deg C.

The next aspect of tank

cleaning is initiating chemical

reactions to remove the original

substance - for example, the

cleaning of oil like cargoes. A

detergent is added to the tank

cleaning water in order to

emulsify the oil remnants and

make it possible to remove them

by using the water. Cleaning

chemicals' manufacturers produce

a wide range of chemicals

approved by the IMO, which is of

the utmost importance. If a

cleaning agent is not IMO

approved, using such a product

might have MARPOL-related

consequences, such as

discharging the slops into a

reception facility and an

obligatory pre-wash.

Generally tank cleaning

chemicals are devils in disguise

to tank linings. Tank coatings are

only resistant to agressive

cleaning agents to a certain

degree and not every coating has

the same resistance. For instance,

epoxy coatings' resistance differs

a lot from that of inorganic zinc

coatings. Also the concentration

used is critical.

It has been noted that

generally the use of cleaning

agents is overdone. Users

underestimate the effects of tank

cleaning chemicals, both in a

positive and negative way.

Positively by way of the same

effect would have been obtained

if a smaller quantity of an agent

was used, resulting in a cost-

ineffective tank cleaning. The

concentration listed in the

manufacturer's instructions for

use is often on the high end.

Page 38: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

TANKEROperator January/February 200836

TECHNOLOGY - TANK CLEANING

tank cleanliness. As a result, tank

cleaning becomes even more

extensive and therefore more

expensive. Chartering departments

should try to negotiate practical

requirements for tank cleanliness,

without putting the cargo quality

at risk. However, in a competitive

market these practical problems

are often deferred.

impossible to suggest the proper

way to go.

The Tank Cleaning Guide is

based on general conditions. If

these conditions differ, the

procedure has to be adjusted. A

tank cleaning consultant needs

experienced eyes to assist the

ship's crew in getting the cargo

tanks clean. Some companies

invite a consultant to accompany

the vessel in order to take

advantage of the knowledge and

experience about this crucial

element of transporting liquids in

bulk. The supervisor will suggest

the type and quantity of cleaning

chemicals to be taken on board,

suggests the tank cleaning

procedures to the captain and

chief officer and perform

intermediate inspections to check

whether the efforts result in

getting the tanks cleaner. Seldom

is a procedure amended on the

spot after an intermediate

inspection. In some cases a more

intense cleaning maybe

suggested, in others shorten the

time or minimise the use of

cleaning chemicals due to the

positive intermediate results seen.

Improved technologies will not

facilitate tank cleaning. Although

modern tank cleaning machines,

tank coatings and tank structures

have a positive influence on the

results, advanced techniques will

also lead to a higher traceability

of previous cargoes. Cargo

owners of chemicals and

vegetable oils in particular set

high standards as to the vessel's

cleanliness. Today, specifications

in the range of parts per billion

(ppb) are not uncommon where

two decades ago the part per

million (ppm) was the most

accurate unit used. This means a

1,000 times more exacting and

traceable situation.

Also cost cutting measures on

board of the vessels and lack of

cargo inspectors' knowledge and

experience ashore sometimes lead

to over the top requirements for

*Tank Cleaning Guide,

seventh edition is now

available from Dr Verwey's

Rotterdam office -

Tel +31 (0) 10 476 10 55;

fax +31 (0) 10 477 35 62;

e-mail - [email protected]

**This article was written by

Fred Burgmeijer.TO

Dr Verwey was

founded in Rotterdam

in 1901 as a

laboratory and

superintedency

concern specialising

in testing foodstuffs.

Being located in Rotterdam, it

did not take long for the

laboratory to become involved

in the local shipping industry.

As technology evolved,

laboratories were able to track

remnants of previous cargoes

to lower and lower levels.

A superintendency division

was established to assist

tankers in cleaning their tanks

to acceptable standards. Years

of testing and experience

gained on board vessels

throughout the world led to

the publication of the first

edition of Dr Verwey's Tank

Cleaning Guide in 1970.

Dr Verwey is now part of

US-based Silliker Group, a

leading international network

of accredited food testing and

consulting laboratories.

Page 39: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

Achieving preset fixed level(s)

of the interface in the tank.

Alarm for fixed low level(s) of

the water in the tank.Norwegian-based

Ariston has unveiled

the Surveyor™,

which is an

automatic digital microwave oil-

water interface detection system

together with a tank level and

temperature monitoring facility.

Ariston claimed that the digital

system is unique in that this

solution allows the detection,

measurement and the display of

the tank level, interface level and

water level. The system is a

dynamic one, which allows the

interface detector sensor to

monitor any change in the level

of the interface and

simultaneously compare this level

with the overall dynamic change

of the level in the tank. This

allows the dynamic control of the

inlet and outlet valves.

The dynamic system features:

Preset and adjustable alarms

for low, high and overfill level

in the tank and the ability to

shut down the inlet pumps

/ valves.

Preset and adjustable alarms

for high, low, and very low

level of water in the tank plus

the ability to shut down the

outlet pumps / valves.

The screen can display at any

given moment:

Total level of all liquid in the

tank.

Level of the interface in the

tank.

Level of the water in the tank

Alarms.

Static detection

The system can also be used for

static detection, when the inlet

and outlet valves are controlled in

a batch mode, instead of

dynamically.

The static system features:

Preset alarms for high and

overfill level in the tank and

the ability to shut down inlet

pumps / valves.

Alarms for low, very low level

of water in the tank and the

ability to shut down outlet

pumps / valves.

Preset and adjustable alarms

for low, high and overfill level

in the tank and the ability to

shut down inlet pumps / valves.

Preset and adjustable alarms

for high, low, very low level

of water in the tank and the

ability to shut down outlet

pumps / valves.

The screen displays:

Alarm for fixed overfill level

of all liquid in the tank.

Comparison between the two systems:Dynamic Static Parametres

full full ability to detect interface

full limited ability to measure level in the tank

full limited ability to measure the current level of

the interface in the tank

full limited ability to measure current level of

water in the tank

full full ability to measure temperature at the

interface level

full limited overall gauging functionality

full full stability of operation over long period

of time

full n/a dynamic valve and pump control

full full automatic pump shut-down

full full static (batch) valve and pump control

yes no moving parts

no no special cleaning or maintenance

required

yes no in-tank installation works

high medium price per tank

yes yes Two-year guarantee for the sensors.

January/February 2008 TANKEROperator 37

TECHNOLOGY - TANK GAUGING

Dynamic and static tankdetection system launchedUnique system can detect, measure and display tank levels, interface and water levels.

TO

Page 40: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

operating officer of Stealth

Maritime, and previously

operations director for General

Maritime Corporation, said it is

important not to try to run your

company only along the lines

of TMSA.

It is very important to focus on

continuous improvement, he said.

TMSA is a wonderful tool for

supporting continuous

improvement, but this should not

be confused with it being a tool

for running ships. "Sorry, no," he

emphasised.

"It should be noted you don't

have to do everything that is in

the TMSA," he said. "You should

not be frightened to say no on an

oil major TMSA audit.

The important thing is to sit

down with oil majors, and explain

why you have done things the way

you have done them", he said.

Stockley believed that the

tanker industry went off the rails

around 1975 and was now trying

to get back on track.

In 1975, "West European,

especially British shipping

companies went to management

agencies, employed cheap crew

and closed down their national

schools, and as a consequence we

had an unbelievable drop in

standards," he said.

"TMSA is here because

shipowners allowed the industry

to fall to the state it's in now."

Most of the methods, such as

risk assessment, are not new - they

were already being used in 1972,

he noted. "Many people were

trained properly then," he said.

Stockley said that there was

much confusion in the industry

about KPIs, particularly when

Antonis Iordanidis,

director of Alpha

Marine Services said

that in his view the

idea that TMSA is just guidance

is a myth.

"TMSA is not guidance. It is a

very strict quality management

system," he said. "It is not what

you think about your system - it's

what oil majors think about your

system."

"Oil majors are currently

approving vessels for their

business after vetting ships (SIRE

inspections) in conjunction with

TMSA vetting," he said. "We

expect that the TMSA vetting will

be expanded and will be the

cornerstone for majors approving

vessels, by comparing the TMSA

office vetting with what is

happening on board."

The three 'big words' for

TMSA are trends, measurement

and training, he said. "Training is

the most common word in

TMSA," said Iordanidis.

"It's a requirement, not an

option".

Iordanidis believed that the

industry needs TMSA, since

implementation of ISM systems

are starting to stagnate. "There is

a gap between companies that

embrace the spirit of ISM and

those who just meet the minimum

standards" he said.

He also predicted that TMSA

would grow into a bigger system.

"Until today, implementation of

TMSA is not checked on board

but in the office. This will change

in the near future," he advised.

"I believe that in the coming

years, screening from the oil

majors will be harder," he said. "I

also think in the coming years

there will be more emphasis on

energy conservation, emissions

control."

Iordanidis said that there was

still a lot of ambiguity behind the

idea of crew retention, if it is

calculated as the percentage of

officers who stay every year, or

the percentage of officers who

have been with the company for

over a year. If it is the latter, it

makes it difficult for a company

to keep its retention rate up when

it expands the fleet. "We need

clarity on this" he said.

"Consistency in training

standards is something else that

should be addressed" he said.

Companies' planned maintenance

systems also need a lot of work,

he said.

Iordanidis suggested that the

stage 5 for TMSA could be how

well companies can reduce their

paperwork. "The big challenge is

the paperwork," he said.

On the issue of KPIs,

Iordanidis said that many

companies are begging other

companies to share data, in order

to benchmark their performance.

Typical KPIs that companies

choose include the mandatory

ones, such as retention rates for

seagoing and shore based

personnel, or the number of non

conformities per external

company or vessel audit.

"A lot of companies also use

environmental KPIs for example

CO2 per tonne mile," he said.

Captain David Stockley, chief

TMSA - do you haveto obey oil majors?

Do you have to obey oil majors, did the tanker industry lose its way in the 70s and

how do you get the staff, were some of the big issues discussed at TANKEROperator

magazine’s half day conference in Athens on 24th October last year.

CONFERENCE REPORT

TANKEROperator January/February 200838

The Athenian audience listens to the merits of TMSA.

Page 41: TANKEROperator · 2013. 4. 12. · Technology 24 Shiprepair - Dubai still calling the shots 30 Ballast Tank Coatings - New rules explained 35 Tank Cleaning - Updated guide published

January/February 2008 TANKEROperator 39

CONFERENCE REPORT

155 vessels currently on order,

plus another 4,400 officers for the

263 vessels already planned for

after 2010, he said.

Poaching is a simplistic

approach to the problem, which

will ultimately result in

aggravating the expected

shortfall and increasing hiring

costs, he said.

The only way to do this is to

promote careers as seafaring

officers, increase recruitment,

reduce wastage (people leaving the

company to go to other companies

or shore jobs), and get a better

understanding of why officers stay

with a company, he said.

Exmar currently has 600

officers on its books, and around

10% of them leave every year for

different reasons. About 100

additional officers are needed per

year, the company calculated, to

fill the places of people who

leave (60 per year) and also for

its fleet expansion (40 per year).

Calculating that 25% of the

officers it recruits will leave the

company before completing the

training scheme, the company

said that it will need 500 officers

over the next four years.

Jungbluth believed that every

ship should have two cadets on

board, if the industry wants to

have adequate crews in the future.

Exmar's current retention rate

in the last quarter 2006 for LNGC

officers was 87%, and 64 to 77%

for LPG officers. Part of the

reason for the lower LPG

retention is because Exmar is

companies want to compare their

data with another company.

"KPIs are about continuous

improvement in your own

company," he said.

"Benchmarking against other

companies is like saying, we are

better than your ships so it's OK.

Well it's not."

"In our company, we have

KPIs and said where were we,

where are we now, where would

you like to be next." These KPIs

are used in all levels of our

company not only in the safety

management system.

Spyros Malandreniotis,

group training manager, OSG

Ship Management, emphasised

that the shipping industry´s safety

record is still far from

satisfactory.

Tanker accidents make good

prime time TV. "We live in the

era of television, which is about

images and image making. The

images we are capable of

producing in this industry are

very powerful."

Don't expect anybody to be

kind to tanker companies after an

accident either. He said. "The

finger will always point at our

industry. We are a very suitable

and convenient scapegoat."

The tanker industry is currently

defending itself against the large

numbers of tanker accidents

which occurred between 1978

(Amoco Cadiz) and 2003

(Tasman Spirit).

"All these ships had at least

one thing in common: they were

all manned by appropriately

certified and licensed seafarers

while most of the involved ship

management companies had one

or another screening process in

place," he said.

Malandreniotis noted that the

shipping industry´s idea that once

someone is certified they are fit

to do a job for life cannot be

right. Perhaps the industry needs

to improve the way it certifies

competence.

For company management,

keeping detailed records of what

different people can do is

essential.

OSG keeps detailed records for

the competence and training of

each seafarer. "Every time a

seafarer disembarks it is sent to the

central server and made available

to company managers online," he

said. "When he joins another ship,

it is made available to the ship's

master and chief engineer."

"Every time a seafarer

disembarks, his electronic

Training Record Book is

submitted to the central server, is

updated and made available to

company managers on-line where

it can be accessed and reviewed."

Rene Jungbluth, technical

director of Belgian gas

shipmanagement company

Exmar Shipmanagement,

explained how his company

manages the challenge of finding

and training crew.

Exmar operates 30 mid-sized

gas carriers, 10 pressurised gas

carriers, one semi-refrigerated

gas carrier and four very large

gas carriers.

"The key manning issues are

the decreasing supply and ageing

contingent of European officers,

and the slow increase in supply of

Asian officers," he said. "And

there's no further scope for

reducing crews on board."

The global fleet of LNG

vessels, based on data from

Drewry and Clarkson, is expected

to increase from 115 in 1999 to

345 in 2009, a tripling in 10

years, while the LPG fleet is

expected to double in five years.

It is estimated that the LNG

shipping industry will need an

extra 2,600 officers to man the

Captain David Stockley,

Stealth Maritime

Spyros Malandreniotis,

OSG Ship Management

TANKEROperator magazine's Tanker

Shipping Review 2008 will be published

on March 1st.

It will include a review of the top 20

crude oil tanker operators by deadweight

and updates on trends in tanker operations -

both technical and market issues - written

by TANKEROperator editor, Ian Cochran

- contact: [email protected].

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M a r c h 2 0 0 6

A TankerOperator supplement

TTop 25 Top 25 Tanker Operatorsanker OperatorsBjorn Moller speaks his mind

Bjorn Moller speaks his mindChina's bid to rule the roost

China's bid to rule the roostPollution directive - misguided?

Pollution directive - misguided?

ge 1

Tanker Shipping Review 2008Tanker Shipping Review 2008

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TANKEROperator January/February 200840

CONFERENCE REPORT

will drive wages up, people will

come to the industry, they won't

be the people we want, and the

market will be oversupplied

again," he said.

Apostolos Belokas, managing

director of International Business

Solutions, championed the idea of

computer game type tools, which

enable seafarers to go through the

different scenarios they might

encounter on a ship, such as a

fire, or abandon ship.

Belokas thought that there were

many advantages of a simulated

drill over an actual drill. "On an

actual drill, you can't be sure of

getting feedback," he said. "In

real life, many drills are not being

conducted correctly."

"On a simulator you can

simulate scenarios you can't do in

real life. For example you can't

put a fire on a vessel."

He thought that the simulator

could help seafarers look after

each other, so help nurture an

interdependent safety culture.

Belokas described three stages

of developing a safety culture. A

dependent one (when you have to

always check people are doing

what they are supposed to); an

independent culture, when people

look after themselves; and an

interdependent culture, when

people look after each other.

The reason that the maritime

industry has so many checklists is

because it is a "dependent

culture," he said, where people

are not able to look after

themselves.

One of the biggest safety issues

is a lack of motivation, Belokas

said. For example, when you

continually see audit reports

saying "charts not corrected."

"The root cause is lack of

motivation from the staff and

from the master," he said. "Lack

of motivation is driving our

industry."

However, Stockley was cynical

about how much someone can

learn about fire fighting from a

simulator. "The way to learn fire

fighting is to go on a five day fire

fighting course where they set

fire to you," he said.

moving LPG officers over to

LNG vessels. "We've got to fill

LPG vessels from the bottom up,"

he said. "Retention rate of the

LPG officers is on the increase

again in 2007," he noted.

The biggest factors affecting

retention are wages, career

opportunities, working conditions,

job satisfaction / crew well being,

company image and fleet

composition / flag, Exmar believed.

"We believe in honest and fair

wages supplemented by promotion

opportunities. We are not given to

go in the lead when it comes to

wages." said Jungbluth.

If a seafarer is clearly not up to

the task in a certain area, the

company will opt for corrective

training, rather than dismissal.

"Everybody in his abilities will

have highs and lows," he said.

Staff get trained in

management skills, including

leadership, delegation and

evaluation. "We've gone to a very

high standard of personal

protective equipment," he said.

Exmar believed that it is not

healthy to offer very long

contracts on board. "Seafarers

from India and Ukraine sometimes

want to stay longer in order to

earn more money," he said. "But

we think three months is long

enough. Your efficiency drops

when you stay on board too long."

Dimitris Lyras, director of

Lyras Shipping, told a story which

emphasised how much difference

an experienced crew can make to

a shipowner's bottom line.

At one time, he said, his

company had two very similar

brand new vessels, and had an

experienced crew on one of them,

and had less experienced crew on

the other.

On the vessel with less

experienced crew, "We had

problems with just about

everything," he said.

"The difference in operating

costs between the two vessels

was $1,000 a day," he said. "And

then it escalated and got worse

and worse and never came back.

"My principals kept asking me,

why is this vessel better than that

vessel, and I would reply, because

that vessel has such and such

officers on it."

"Eventually the ship was sold

at less value than the other vessel

and 30% of profitability of the

ship was lost due to the lack of

control of crew."

Lyras said that TMSA (or

something like it) would have

been better if it was introduced

by tanker companies, rather than

by oil majors. "We should have

done it instead of the oil majors

doing it," he said.

He said that companies should

also pay attention to the problem

of the shortage of competent

superintendents, as well as

focusing on the challenge of a

shortage of officers.

"Sometimes there are

insufficient numbers of

superintendents here and ashore,"

he said. "It is very clear

superintendents are overworked

and also not able to rationalise

their work. We should talk about

how superintendents can manage

their time."

Lyras pointed out that the

industry seemed to be moving in

cycles, of not having enough

crew, doing a lot of recruiting,

then having too much crew and

laying people off, and it will

happen again.

"And it will happen again, we

Rene Jungbluth, Exmar Shipmanagement

TO

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Zero pollution

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Common rules

Environmental matters

Arctic operations

Self assessment

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Vessel integrity

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Life is sustained by our environment. Ship owners and operators looking to meet stringent environmental standards and to improve asset integrity can benefitfrom our services. When reputations are increasingly linked to environmental performance, you can rely on us to help you manage your environmental matters.

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