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Page 1: For organizations, the strongest capital is · 2000 and 2007, in RMK Marine Shipyard. Between 2007 and 2015, he worked as Shipyard Manager of Yardımcı Group, and since 2015, he
Page 2: For organizations, the strongest capital is · 2000 and 2007, in RMK Marine Shipyard. Between 2007 and 2015, he worked as Shipyard Manager of Yardımcı Group, and since 2015, he
Page 3: For organizations, the strongest capital is · 2000 and 2007, in RMK Marine Shipyard. Between 2007 and 2015, he worked as Shipyard Manager of Yardımcı Group, and since 2015, he

For organizations, the strongest capital is intelligence, attention and honesty, and to know how to conduct technical and methodical works. Work hard with this motivation, you will definitely become successful! You will find the ambition and energy in your hearts for working, achieving your goal and moving up if you consider the goal of success as national price, national matter of honour rather than a personal matter of honour.

Page 4: For organizations, the strongest capital is · 2000 and 2007, in RMK Marine Shipyard. Between 2007 and 2015, he worked as Shipyard Manager of Yardımcı Group, and since 2015, he

INDEX

Page 5: For organizations, the strongest capital is · 2000 and 2007, in RMK Marine Shipyard. Between 2007 and 2015, he worked as Shipyard Manager of Yardımcı Group, and since 2015, he

08TURK LOYDU FOUNDATION CHAIRMAN Cem MELİKOĞLU

TURK LOYDU UDH A.Ş GENERAL MANAGER Lütfü SAVAŞKAN

TURK LOYDU FOUNDATION 06

ABOUT US 04

MARINE SECTOR 16

INDUSTRY AND CERTIFICATION SECTOR 46

TRAINING SERVICES 82

FOUNDATION ACTIVITES 92

TL TECHNICAL RD and DESING COMPANY 106

12

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04

OUR PRINCIPLES

Independence and Impartiality,

Honesty and Reliability, Continuous

improvement, Generating and

Sharing of Knowledge, Customer

Oriented and Quality Service,

Employee Appreciation

OUR VISION

To become the most preferred

international classification and

certification society that is powered

by its own rules and knowledge as

well as expertise

OUR MISSION

To provide conformity assessment

services in the field of safety of life,

property and the environment, in

accordance with our principles

ABOUT US

ANNUAL REPORT | 2018

Page 7: For organizations, the strongest capital is · 2000 and 2007, in RMK Marine Shipyard. Between 2007 and 2015, he worked as Shipyard Manager of Yardımcı Group, and since 2015, he

TURK LOYDU CONFORMITY ASSESSMENT CORP, BOARD OF

DIRECTORS

Chairman of the BoardLütfü SAVAŞKAN

Deputy Chairman of the BoardAyfer ADIGÜZEL

MemberOkan ÇETİN

05

TURK LOYDU HEALTH, SAFETY, ENVIRONMENT AND QUALITY POLICY

TURK LOYDU ;

• Maintain the principles of independence, impartiality,

confidentiality and reliability,

• Ensure compliance with the Code of Ethics of TURK LOYDU,

• Provide services in accordance with the applicable legislation,

rules and standards, including the requirements of customers,

• Contribute to the protection of safety of life, property, and the

environment with its rules and services,

• Maintain national and international recognitions in compliance

with the Health, Safety, Environment and Quality standards,

• Ensure customer satisfaction by providing services in line with

customer expectations in a timely and equal manner,

• Ensure an efficient training and qualification system to maintain a

highly qualified staff,

• Manage the risks related to service processes,

• Provide the necessary environmental conditions and resources to

prevent injuries and health problems of its employees and to ensure

their safety,

• Demand their customers to provide the necessary resources to

ensure safe performance of field activities,

• Exercise its power and responsibility not to provide service until

the necessary health and safety conditions are met in cases that may

endanger the health and safety of its employees,

• Always keep its employees aware of occupational health and

safety, and protection of environment,

• Assess and minimize the environmental impacts during

operations, and prevent pollution,

• Use resources in a sustainable manner,

• Constantly improve its Health, Safety, Environment and Quality

performance by periodically reviewing the key performance

indicators and objectives determined for this purpose

TURK LOYDU FOUNDATION

Chairman of the BoardCem MELİKOĞLU

Deputy Chairman of the BoardAtilla ÇİFTÇİGÜZELİ

TreasurerHalim METE

MemberMehmet Akif EROĞLU

Atilla OKSAY Ferhat ACUNER Gürsel GÜRÇAY Gürsel YILDIZ

Prof. Dr. Hakan AKYILDIZ

Supervisory BoardAli ÖNDER

Derya TURGUTUfuk TEKER

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06

TURK LOYDU FOUNDATION

Cem MELIKOĞLU Chairman of the Board

Cem Melikoğlu was born in 1964 in Istanbul. After completing his education in the Private German High School of Istanbul, he grad-uated from Istanbul Technical University, Department of Naval Architecture and Marine Engi-neering in 1988. He has good command of German and Eng-lish.He worked as the EMEA representative of ExxonMobil for over 21 years in Health, Safety, Environment and Security areas, then served as a senior executive in OMV Petrol Ofisi Company and TANAP Natural Gas Pipe-line Project. He worked on sys-tem installations for collection of waste oils in Petder created by the leading oil companies in our country, served as a member of the board, chaired the OHS Commission in Petder and the Chamber of Naval Architects, and hosted the OHS-themed weekly radio programs called “Testi Kırılmadan” on Açık Ra-dio between 2011 and 2012. He supports the education of young students through his Occupa-tional Health and Safety lectures in Istanbul Technical University and professional seminars in var-ious universities. Cem Melikoğlu was elected by the TURK LOY-DU Foundation Board as the Chairman of the Board of TURK LOYDU Foundation in 2015 and 2017, and continues to serve as the Chairman.

Atilla ÇIFTÇIGÜZELIDeputy Chairman of the Board

He was born in 1951 in Kilis. He graduated from Istanbul Technical University, Maritime Faculty in the 1974-1975 Aca-demic Year. He is a member of TMMOB Chamber of Marine Engineers. Until 1988, he served as the Marine Chief Engineer in D.B. Deniz Nakliyatı T.A.Ş. and Chairman of the New Con-struction Control Committee in Türkiye Gemi Sanayi A.Ş. He worked as a specialist sur-veyor between 1988 and 1996 in TURK LOYDU. He served as a Vice-Chairman in 2012 and 2013 in the Turkish Asso-ciation of Ship Industrialists. He is one of the founders of Defav Foundation and chaired the foundation from 2002 to 2004. He served as a Council Mem-ber in the Chamber of Shipping between 2009 and 2013. He is currently a Council Member in Istanbul Chamber of Industry. Since 1996, he has been serv-ing as the Chairman of the Ex-ecutive Committee of Istanbul Shipyard.

Halim METETreasurer

He was born in 1948 in Rize. He completed his higher education in Istanbul University, Faculty of Economics. He is the President of Mete Kardeşler Group of Companies, and a partner in nearly 15 companies within and outside the group. Apart from his profession, he served in the management of many institutions and organizations related to both his sector and various social topics. He takes active roles in the boards of numerous foundations and institutions, primarily the Union of Chambers and Commodity Exchanges of Turkey. He is currently the Vice-President of TOBB. He is a Council Member in IMEAK Chamber of Shipping. He is married with three children and five grandchildren.

Prof. Dr. Hakan AKYILDIZMember

Hakan Akyıldız was born in 1965 in Istanbul. In 1987, he graduated from ITU, Faculty of Naval Architecture and Ocean Engineering as a Naval Architect and Marine Engineer. He received his M.Sc. in 1989, Ph.D. in 1999, and started his academic ca-reer as a faculty member. Prof. Dr. Hakan Akyıldız continues his aca-demic and administrative studies as the Head of Shipbuilding and Ocean Engineering Department at ITU. Prof. Dr. Hakan Akyıldız has taken part in many academic and com-mercial projects, and has numerous academic publications as a result of these studies. He has also served as a delegate of TURK LOYDU at different times. Along with his aca-demic and administrative duties and studies, he carries out projects in dif-ferent disciplines as well. Prof. Dr. Hakan Akyıldız speaks English

ANNUAL REPORT | 2018

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07

Gürsel GÜRÇAYMember

Gürsel Gürçay graduated from Kadıköy Anatolian High School in 1988, and Yıldız Technical Univer-sity, Department of Naval Architecture and Marine Engineering in 1995. In 1995, he started working as a Ship Repair Officer in Torgem Shipyard, and until 2002, he worked as a Service Engineer in Nis-san Otomotiv A.Ş., and as a New Construction Control Engineer in Tem-mar Denizcilik and Selay Denizcilik companies, re-spectively. Between 2002 and 2006, he made com-mercial and special pur-pose ship designs and con-tracting activities in ATG Mühendislik Gemi İnşa San ve Tic. Ltd. Şti., where he was a founding mem-ber. In 2006, he founded Güray Mühendislik to manufacture piping sys-tems, and Pastem Gemi İnşa San. ve Tic. Ltd. Şti. to operate in piping system surface preparation and phosphating works, and he is currently continuing his activities in these com-panies.

Gürsel YILDIZMember

He was born in 1967 in Ardahan. In 1989, he completed his undergrad-uate education in Istanbul Technical University, Fac-ulty of Naval Architecture and Ocean Engineering, then received his Master’s Degree from the Ship-building Program of Grad-uate School of Natural And Applied Sciences. In 1991, he received welding en-gineering education for 6 months in Japan, and had the chance to examine the Japan shipbuilding tech-nology during that period. Between 1989 and 1995, he worked as a Chief Clerk in the Design Department of Türkiye Gemi San. A.Ş. Camialtı Shipyard, then completed his military duty as a reserve officer in the Taşkızak Shipyard Command. Between 1997 and 2000, he served as the Ship Department Manag-er in Gemak and Torgem Shipyards, and between 2000 and 2007, in RMK Marine Shipyard. Between 2007 and 2015, he worked as Shipyard Manager of Yardımcı Group, and since 2015, he has been a mem-ber of the Academic Staff in ITU, Faculty of Naval Architecture and Ocean Engineering to support the collaboration between the University and Industry. He is currently working as the Manager of New Ship-building Department in Kuzey Star Shipyard.

Ferhat ACUNERMember

Ferhat Acuner was born in 1966. He graduated from Istanbul Technical Univer-sity, Department of Naval Architecture and Marine Engineering in 1991. Be-tween 1994 and 2010, he served as the Company Partner and Manager in Fast Denizcilik, İnşaat ve Ticaret Ltd. Şti. Between 2007 and 2008, he served as the General Manager of Düzgit Group of Com-panies. Between 2009 and 2014, he worked as the Powership Program Coor-dinator of Karadeniz Hold-ing A.Ş., and since 2014, he has been the General Manager of Navtek Deniz Teknolojisi A.Ş. Between 2015 and 2016, he served as the Vice-Chairman of the Board of Directors of TMMOB Chamber of Turkish Naval Architects and Marine Engineers. He has good command of English.

Atilla OKSAYMember

Atilla Oksay was born in 1972 in Ankara, and grad-uated from Istanbul Uni-versity, Faculty of Political Sciences, Department of Business Administration in 1994. Oksay started his career in 1995 as a re-searcher in the Association of Insurance, Reinsurance, and Pension Companies of Turkey, and worked as a specialist, technical group assistant manager, and technical unit manager within this association. He participated in trainings in various insurance branch-es, and instructed short term courses in the field of insurance at universi-ties. He has various papers presented in sectorrelated meetings and seminars, as well as articles published in relation to insurance busi-ness. Oksay was appointed as the Assistant Secretary General of the Association of Insurance and Reinsur-ance Companies of Turkey on 03.10.2011. He contin-ues to serve as a member in the boards of TURK LOY-DU Foundation, Turkish Motor Insurers’ Bureau, and OSEM Sertifikasyon A.Ş. He is married with one child.

Mehmet Akif EROĞLUMember

He graduated from An-kara University, Faculty of Political Sciences, De-partment of Internation-al Relations in 1991. He started his career in 1992 in the Undersecretariat of Treasury. Between 1992 and 2007, he took part as the bank examiner during bank audits and consoli-dated financial structure audits of their affiliates such as banks, financial institutions, and insurance companies. Eroğlu com-pleted his MBA at the Illi-nois University in Chicago, USA, between 2004 and 2006. Afterwards, he was appointed as the “Head of Department” in BRSA. In 2009, he joined the found-ing team of Ziraat Life and Pension Company as the Assistant General Manage-ment of Financial Affairs. In 2010, he was appointed as the General Manager of the company, and the Gen-eral Manager of Ziraat In-surance Company in 2012. Eroğlu has been serving as the Secretary General of the Insurance Associa-tion of Turkey (TSB) since May 2015. He is currently a member of TARSIM, DASK, Arbitration Board, and has CPA and Indepen-dent Audit certificates.

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CemMELİKOĞLUChairman of the Board ofTurk Loydu Foundation

08

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“Turk Loydu continues its journey by overcoming

challenging obstacles one by one.”

Considering important events in 2018, we have seen the trade wars started against Russia, China and Iran by the United States, the introduction of various protective measures in the global economy and the foreign trade regressions that negatively affect the freight rates, and in general, foreign policies used as a weapon on economies. Due to the impact of developments encountered in the world economy, it has been a difficult year for the maritime sector that provides nearly 90% of the logistics services for these trade operations. The slowdown in the marine defence industry projects in our country compared to the previous years and the fact that the orders did not reach the desired levels in the newly built commercial vessels unfortunately had negative effects on the shipbuilding industry and subordinate industry.

Despite all such negative developments in 2018, important steps were taken for the development of the sector with the support activities carried out under the leadership of the Ministry of Transport and Infrastructure, and Turkish maritime industry continued its development on a macro scale. The sector reached an economic size of approximately USD 2.5 billion with the infrastructure investments related to the maritime industry, and the Turkish marine trade fleet continued to develop and reached 28.6 million DWT in terms of carrying capacity. In addition to works aimed at growth of the maritime sector, regulations were made for transfer of boats that navigate in Turkish territorial waters and marinas and are owned by Turkish citizens to Turkish flag. As TURK LOYDU, we maintained our support for all efforts made for our country and flag, and we worked to spread our cooperation with the Ministry of Transport and Infrastructure to new areas.

As TURK LOYDU, we continued our growth in the maritime sector in 2018 and managed to increase the number of ships registered to our class in both number and tonnage. While increasing the number and tonnage of ships, we carried out various works in order to increase the type of ships in our fleet, in order to show more presence in our strategic areas. In this context, Turkey’s first drilling ship Fatih began to serve under TURK LOYDU class. Scope of the protocol executed with the Ministry of Transportation and Infrastructure has been extended, upon which agreements have been executed for classification of energy production ships that are pride of Turkey. We will continue our works in line with the localization and nationalization targets of our country. Our experience and competence that started with MILGEM Project on naval ships, are increasing each day, and we are fulfilling this valuable duty assigned to TURK LOYDU by Undersecretariat of Defence Industries and our Navy, with national consciousness and pride. Being positioned among the most experienced organizations in the classification of military ships in the world as a result of, giving class certificates to nearly 150 military ships until now is a source of pride for TURK LOYDU. We continue our efforts to consolidate our existing leadership in naval ship projects and improve our cooperation

09

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with the Directorate of Defence Industry and shipyards in the new projects.

We continue our efforts in line with the progress plans made for achieving one of the biggest strategic targets of TURK LOYDU - becoming an IACS member - the Association of International classification Societies - and an entity recognized by the European Union. The IACS criteria integrated into our systems have now become TURK LOYDU criteria and the quality of the services provided has been improved to world quality. TURK LOYDU continues its journey by overcoming challenging obstacles one by one.

As a result of works we carried out in 2018, TURK LOYDU undersigned an important accomplishment for Turkey in the International Maritime Organization (IMO). TURK LOYDU’s Class Rules were approved at the 100th session of the Maritime Safety Committee, one of the most important committees of IMO. TURK LOYDU was the first organization outside IACS whose rules were verified by IMO. We made “IACS + TURK LOYDU” phrase take place in IMO literature. Thus, we have been one of the very few organizations in the world that have been certified by IMO to make new construction classifications of Tankers and Bulk Carriers over 150 meters. With this competence, we are aiming for classification of more new construction commercial vessels in the upcoming years.

Another important achievement of TURK LOYDU in 2018 has been the maintenance of our position in the ”High Performance” category in the last 12 years based on Paris MoU evaluations and

ranking 9th among the class societies in the world. We showed better performance than most IACS member organizations, thanks to this performance level. However, more importantly, we have contributed to the protection of white flag status of the Turkish flag at the highest level. Undoubtedly, the fact that no vessel has been detained due to an omission of TURK LOYDU since 2015 is a development that increases our success.

Considering our Industrial and Certification activities in 2018, energy, we continued providing services by extending our domestic and international geographical field in parallel with our service range particularly including energy, construction, mining, chemicals, transportation and logistics sectors. Our steel structure inspection services grew by 200% compared to the previous year. In 2018, we implemented many projects including various steel structures, bridges, stadiums, hospitals, aircraft maintenance hangars, industrial facilities and various types of civil structures, particularly including Çanakkale Bridge and the new İstanbul Airport.

We obtained “Nuclear Structure Inspection Body Authorization” from TAEK in accordance with provisions of the Regulation on Inspection of Nuclear Power Plants, in order to provide compliance inspection services for safe installation and operation of nuclear power plants in our country particularly including Akkuyu Nuclear Power Plant in accordance with the applicable legislation and standards. This authorization allows us to provide our services to nuclear power plants that will be strategic energy source for our country, with TURK LOYDU assurance. We have started to provide a wide range of training,

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ANNUAL REPORT | 2018

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inspection and certification services from infrastructure to signalization, driver training, TSI certification, in the railway sector that has been included in our service range in the previous period.

TURK LOYDU will further strengthen its brand value, diversify the product range, and become a reputable brand in our country and in the region by offering many innovative and technological services as well as compliance assessment and technical expertise services as per requirements of the sector in accordance with our strategic objectives.

In parallel with the expansion of the activity area, TURK LOYDU Foundation contributed to research and development, scholarships, and increased contributions to conferences and academic events, training of technical staff, and technical works performed in the international platforms for safety of life and property, climate change and protection of the environment.

In 2018, TURK LOYDU Foundation continued with its non-refundable scholarships and educational grants for undergraduate and graduate students studying at higher education institutions. We aim to fulfil our social responsibility by contributing to the areas where we operate and our country’s beneficial human resources through our unrequited scholarship and educational grant supports.

Founded by TURK LOYDU Foundation and restructured in 2017, TL Teknik ARGE ve Tasarim Ltd. Sirketi successfully continued with technical consultancy services in maritime and onshore operations in 2018 thanks to the support of 57 years of experience of Turk Loydu, in addition to research and development operations. In addition, the European Union supported NEO-COL and SEAMAP projects have been completed and SKILLSPATH and MARED projects are being carried out with high performance. Our company TL Teknik ARGE ve Tasarım Ltd maintains its successful growth rate and is moving towards becoming our second important company which provides useful and added value services to our country under the roof of our Foundation.

A new world is being built “where we can survive through change and transformation rather than following an introverted approach”. It appears that we need to talk about facts, offer solutions and develop a common wisdom and vision in order to make Turkey a strong and leading country in the world. Steps should be taken to develop new and even higher targets by improving our steps taken towards localization and nationalization. We must also strive to increase the use of high technology in all areas while fulfilling our tasks.

We can use digitalization to leverage high-tech production and service, create high added value and increase our global competitiveness. Digital transformation is not a goal, but it is a tool for development-oriented sustainable economy. We have a chance to catch up with advancing global technologies in this period. We should use this chance in the best way possible.

As a country, we must increase the share allocated for R&D from GDP; we must already design the new economic, social and public life they will create instead of merely producing and using such technologies. We believe that the real agenda of our country should be a digital transformation from A to Z. We should keep in mind that digitalization is not a luxury but a necessity.

I would like to express my deepest gratitude to all staff members of TURK LOYDU who worked hard relentlessly and undersigned excellent accomplishments in 2018, and I hope 2019 brings success and happiness to our country, TURK LOYDU Foundation and companies as well as all esteemed stakeholders.

Cem MELİKOĞLUChairman of the Board of Turk Loydu Foundation

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We are shaping the future of Turk Loydu in the Digitalized World

12

Following a difficult year for both Turkey and the World, we are happy to close 2018 in accordance with our targets. We successfully completed 2018 by completing the ongoing projects and adding new services that will accelerate the scope of our work.

As TURK LOYDU team, we are striving to create a unique structure that will draw attention with success, follow technological advancements closely, creating innovative projects, despite the challenging business environment. Based on this understanding, our priority is to provide fast, customized and high-quality service to our customers and stakeholders.

We managed to improve our shipbuilding portfolio in 2018 within the scope of our maritime services. In both contexts, we signed new projects and successfully maintained projects that were already signed and initiated. Taking part in many projects considered as the pride of our country gives us strength in our efforts. At the last point of the journey in connection with the military ship building that starts with TCG Yarbay Kudret Güngör that was put into service in 1996 and extends to the gigantic project to be named TCG Anadolu when

delivered, TURK LOYDU took a role in nearly 150 national and international military projects, and accumulated expertise and knowledge that will create great value for our business. Our employees will create new works by transferring their vast experience to new projects which are of great importance for the security of the Turkish Nation.

We continue our efforts to consolidate our existing leadership in military ship projects and improve our cooperation with the Directorate of Defence Industry and shipyards in connection with the new projects. In this process, along with the military ship classification activities that are performed jointly with the Directorate of Defence Industry for nearly 20 years; collaboration between TURK LOYDU and Directorate of Defence Industry has been underpinned with the signing Memorandum of Understanding covering consultancy and R&D services on 12 June 2018.

TCG Anadolu Project, a good indicator of our classification activities and expertise level of our staff and will be launched in 2019, strengthened the position of TURK LOYDU as a reliable, transparent and independent stakeholder in military

LütfüSAVAŞKAN

General Manager and Chairman of the Board of Directors, Türk Loydu Uygunluk Değerlendirme Hizmetleri A.Ş.

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and civilian projects and increased out hopes for the future. The last 4 units of the Hercules series High Speed Boats for which building operations and classification procedures started in 2014 with the collaboration of TURK LOYDU and Ares Shipyard have been delivered and the project has been completed successfully. The largest ship of the series, the 150 Hercules Open Sea Patrol Ship, has been recognized with the World’s Best Award in the segment by the Work Boat World Magazine of Australia and this recognition made us very proud.

Building operations for Emergency Response and Diving Training Vessels for which classification agreements were executed in 2017 and Logistics Support Vessels due for delivery in 2019 are continued successfully under supervision of TURK LOYDU.

In 2018, an agreement was signed between TURK LOYDU and Sefine Shipyard in connection with the Classification Services for Sea Supply and Combat Support Ship. Our vessel will serve as a platform capable of performing fuel, water, food, spare parts, medical materials and ammunition supply with underway replenishment method for warships of Turkish Naval Forces Command.

We continue with military ship classification services without

slowing down both in Turkey and many countries around the World. In 2018, a classification agreement was signed for two military training ships that will be built by Adik Shipyard for meeting the demand of Qatar Naval Forces. Military student training ships that are planned to be completed within 3 years will have a special importance for TURK LOYDU, which is preparing to take part in many projects abroad.

In 2018, Asfat A.Ş. has been founded for serving the global defence industry and contributing to the economy, by using opportunities and capabilities of 27 Military Factories and 3 Military Shipyards associated with the Ministry of National Defence and MILGEM Corvette agreement was executed between Asfat A.S. And Pakistan Ministry of Defence Production for building 4 ships in total among which two will be built in Istanbul Military Shipyard Command and the other two will be built in Pakistan Karachi Shipyard. The classification services of the project, which is expected to start in the first quarter of 2019, will be performed by TURK LOYDU. We are waiting for this large-scale and challenging project with great excitement. We would like to take this opportunity to commemorate our former Chairman Prof. Yucel Odabasi with respect for his contributions for the commencement of MILGEM Project with TURK LOYDU and we would like to thank Naval Forces Command and Directorate of Defence Industry that ensured

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TCG ANADOLU

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improvement of our defence technologies and military ships by supporting TURK LOYDU since the beginning of this project.In 2018, we successfully completed many projects for merchant ships as well as new construction projects for Defence Industry and we signed agreements for new projects. The last two ships of the project for 4 passenger ships that were built for using in Istanbul Strait by Dentur Avrasya Company under the TURK LOYDU class have been delivered and they started services for locals of Istanbul as planned. Another project that excited us in 2018 was the “Zero-Emission Tugboat” project. The classification process of the project for which agreement was signed in October, was started at TK Tuzla Shipyard. The project, where Li-ion batteries are used as the main power supply, falls into a class with very few examples in the world.

In 2018, we increased the number and tonnage of vessels in the TURK LOYDU register and improved the average fleet age. By the end of 2018, the number of vessels registered under TURK LOYDU increased to 610. By the end of 2018, we managed to increase the total tonnage of the ships under our class to 941,923 GRT.

As we increased the number and tonnage of the ships in service, we also worked to increase the types of ships in our fleet. Fatih,Turkey’s first drilling ship that has a length of 229 metres, began to serve under TURK LOYDU class. We initiated classification process for another ship that is identical to this special ship and was added to our country’s assets by TPAO. Upon extension of the authorization protocol made with the Ministry of Transport and Infrastructure, Karpowership that owns the world’s only energy ship fleet, will use classification services for Integrated Floating Power Plants flying Turkish flag. As the range of the ships in our fleet is increasing each day, we also worked to make our staff qualified according to new technologies, new types of ships and international rules which are becoming more complex every day. In this context, we started activities to enrich our human resources by adding experienced and professional colleagues and lecturers who have taken part in the most important class societies in the world. I believe this activity will have very important outcomes throughout the organization. I sincerely believe that TURK LOYDU will be the centre of attraction for everyone in the sector in the future and will be in a special position on the international platform.

The position of Turkish flag in Paris MoU- White List that was earned with great efforts by Turkish maritime sector has been maintained, Turkish flagged ships closed the year with

the lowest rate of arrest thanks to diligent efforts displayed in 2018together with the Ministry of Transportation and Infrastructure. According to the performance evaluations made by Paris MoU, TURK LOYDU has maintained its position in the “High Performance” category for the last 12 years and it has been another happiness to witness that no arrest attributable to us was made since 2015.

In 2018, in the field of Industry and Certification, we continued our activities by expanding our services in construction, mining, manufacturing industry, transportation and logistics sectors including power plants, steel and reinforced concrete structures.

Our steel structure inspection services grew exponentially with the activities carried out at Çanakkale Bridge and the new Istanbul Airport. In addition to steel construction inspections carried out in our country, we also provide services for many mega projects abroad.

Projects we carried out in 2018: Siempel Camp American MDF Factory, Industrial Plant built for Lithuania, Expo 2020 Dubai Subway for which production was made in China, Erdemir Galvanization Plant, THY Aircraft Maintenance Hangar built in the New Istanbul Airport and inspection services for Kartal State Hospital.

We are providing inspection services for Mersin Akkuyu Nuclear Power Plant with the authorization granted by Turkish Atomic Energy Authority for the purpose of compliance assessment services aimed at safe installation and operation of nuclear power plants in our country. As a national organization, we make diligent efforts in connection with services for nuclear power plants that will open new horizons in meeting energy needs of our country. In addition to nuclear power plants, we offer industrial inspection services for conventional power plants, thermal power plants, wind turbines, chemical and petrochemical plants and pipelines.

Considering the rail systems for which we started providing services in the recent years, we offer wide range of services from rail system infrastructure and signalization to training and certification in many ongoing projects in our country.

We take a role in committees of Defence and Aerospace Cluster Association for the purpose of improving the capacity and capabilities of the sector within the scope of works aimed at increasing the use of domestic products and services in defence industry investments. We aim to ensure that certification requirements of the defence industry are met by TURK

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ANNUAL REPORT | 2018

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LOYDU that is a national certification body. As the first stage of the process of extending the services of the Industry and Certification Sector within the scope of the defence industry, we completed our first training for the Quality Management System Standard for Aviation, Space and Defence Entities. In this context, we are also working to extend our activities in 2019.

In this rapidly changing and renewed world of technology, we attach great importance to research and development activities to provide better and new services to our customers and stakeholders. The Seamap and Neo-Col projects supported by the European Union and carried out in cooperation with the TL Teknik Arge ve Tasarim Limited Sirket, which is an affiliate of TURK LOYDU Foundation, continue successfully.

Class Societies are now obliged to invest in digitalization in maritime and industrial sectors that rapidly change shape with digital technologies and innovative developments; adapt to and even lead the improvements. As TURK LOYDU, we closely follow developments and try to shape our future. In parallel with the digitalization processes in all sectors we serve, we are conducting innovative surveys to increase the ability of remote surveying tools, virtual reality applications and training capabilities.

For the purpose of these projects, which we will share with the sector in more detail in 2019, works have been started to establish a sector-oriented R&D Design and Excellence Centre.

We strive to contribute to our efforts related with the national technology and take a leading role in the areas we serve.

I would like to take this opportunity to thank all colleagues for their efforts in fulfilling their duties with care for improving and maintaining services we provide as TURK LOYDU.

We would like to express our gratitude to all our customers and stakeholders who support us with the trust they place in TURK LOYDU and wish that the new year to bring success to all of us.

Lütfü SAVAŞKANGeneral Manager and Chairman of the Board of Directors,

Türk Loydu Uygunluk Değerlendirme Hizmetleri A.Ş.

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MARINE SECTOR

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We believe that Turkish maritime sector will cross rough seas and reach to calm ports in 2019. As Turk Loydu Maritime Sector, we will continue supporting our stakeholders by working harder during this period.2018 has been a challenging year for the global trade and maritime sector that serves as a driving force for the global trade. Especially with global trade wars we experienced since the second half of the year and slowdown encountered with Turkey’s imports and exports that were affected from this situation, we witnessed decline in marine trade, transportation sectors and port operations. In addition, our country’s shipbuilding sector and shipbuilding industry were adversely affected by the decrease in defence industry projects in our country compared to the past and the failure in achieving the desired levels with the new merchant shipbuilding orders. The fact that the average ship operating costs are higher than 2017 and the freight market remained at low levels during substantial part of 2018 have created additional cost pressure on the ship owners.

As TURK LOYDU, we continued our growth in the maritime sector in 2018 and managed to increase the number of ships registered to our class in both number and tonnage. By the end of 2018, the number of vessels registered under TURK LOYDU increased to 610. We managed to increase the total tonnage of the ships under our class to 941,923 tons. Together with these developments, we made efforts to reduce the average age of our fleet and increase the types of ships in our fleet.

ANNUAL REPORT | 2018

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Okan ÇETİNDirector Marine Sector

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As the awareness on protection of the environment increases in the world, new rules and regulations are introduced in the maritime sector. Many recent regulations, such as new emission control zones, low sulphur fuel requirements, ballast water convention, MLC 2006, Monitoring Reporting and Verification regulations, created changes in the maritime sector with significant impacts. Cyber security concerns also increased with the digitalization and increased use of technology at sea. All these developments resulted in higher costs of average ship operating costs, causing cost pressures on shipowners and ship operators. This impact, partially experienced in 2018, is expected to increase its strength, especially in 2019.

We continue our efforts with all the strength we have within the framework of plans made for achieving one of the biggest strategic targets of TURK LOYDU - becoming an IACS member - the Association of International Class Societies - and an entity recognized by the European Union. Due to the membership criteria changed in the end of 2017, we intend to conclude the delayed membership process in a short period of time. The quality of the services increased in accordance with all IACS standards that were into our systems during the membership process.

On 1 October 2017, IACS updated its membership criteria and identified it as a prerequisite for verification by the IMO Maritime Safety Committee (MSC) that the class rules for member organizations and members of the class societies comply with IMO’s Goal Based Building Standards (GBS). GBS, which entered into force on 1 January 2012, requires that all oil tankers and bulk carriers over 150 meters or more constructed on 1 July 2016 or later must comply with the relevant structural requirements of the standard. On March 27, 2018, TURK LOYDU applied to IMO with the support of the Ministry of Transport and Infrastructure and requested class rules to be verified within the scope of GBS; passes all inspection with extraordinary performance and obtained right for submission to IMO MSC Committee. The final decision on the verification of the TURK LOYDU class rules was made with great majority of votes by IMO during the 100th session of the Maritime Safety Committee held at the IMO Headquarters on 4 December 2018, and compliance of TURK LOYDU within the scope of GBS has been approved by IMO. As a result, TURK LOYDU’s rules for the construction of tankers and bulk dry cargo ships above 150 m are overcoming impossible barriers one by one as the first non-IACS member class society having rules approved by IMO.

TURK LOYDU successfully completed the classification services of more than 150 military ships with its 20 years of experience in this field and in 2018, it successfully continued

providing classification services to Turkish Navy and other naval ships in different types and sizes.

In 2018, 4 new built military ship projects were completed and the classification process of several important military ships, including TCG ANADOLU, was successfully continued. The last 4 of the Hercules series high speed boats, a project that was carried out with the cooperation of TURK LOYDU and Ares Shipyard, were delivered to Qatar Coast Guard Command in 2018 and the project was completed.

An agreement was signed between TURK LOYDU and Sefine Shipyard in the end of 2018 in connection with the Classification Services for Sea Supply and Combat Support Ship. The Naval Supply and Combat Support vessel will be able to supply fuel, water, food, spare parts, medical equipment, ammunition to marine vessels owned by Naval Forces Command.

We continue our activities in many countries around the world in the field of military ship classification. The classification agreement for military training ships to be constructed by Adik Shipyard for meeting requirements of Qatar Navy was signed in 2018 and the project is expected to be completed in 2021.

A classification agreement has been executed between Pakistan Defence Production Ministry and Asfat A.S. that was founded under the command of the Ministry of National Defence, for 4 MILGEM Corvettes among which two will be built in Istanbul Military Shipyard Command and two will be built in Pakistan. We continue with our activities without slowing down in order to extend leadership of TURK LOYDU in the field of military ships.

Building operations for Emergency Response and Diving Training Vessels that are built under class of TURK LOYDU and Logistics Support Vessels due for delivery in 2019 are continued successfully under supervision of TURK LOYDU.

We have successfully delivered many new shipbuilding projects and signed new projects within the scope of merchant ships. The last two boats of 4 passenger boats belonging to Dentur Avrasya that started to serve in Istanbul Strait, were delivered and put into service.

“Navtek TK NB02” that is considered as an innovative and important project for TURK LOYDU and for which classification process was initiated in 2018 is classified as battery powered marine vessel that is very rare around the world as it uses Liion batteries as power supply. Ro-Ro passenger ship named ‘Gelibolu’ that has been included in Gestas fleet upon

ANNUAL REPORT | 2018

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completion of shipbuilding and classification process in Aksoy Gelibolu Shipyard in 2018 took its place among TURK LOYDU class large passenger ships with a length of 88 metres.

Classification services for Ilhan Yilmaz 3 New type fishing boats that were built in Ustamehmetoğlu Shipyard have been completed in 2018. The ship that is the largest fishing vessel with a length of 50 meters and a width of 17 meters, has been put into service.

Cebi Meleksu Ro-Ro Passenger Ship built in Trabzon Cebi Shipyard with a length of 90 metres and with of 22 metres, for which classification services agreement was signed on December 2018 will be the largest cargo carrier built in the Eastern Black Sea Region.

Increases have been observed with material and product certification projects in quality and quantity with the increase of new construction projects carried out within the scope of TURK LOYDU class services. Type approval certification contracts for new types of diesel engine manufacturers such as MTU, Wartsila, Mitsubishi, Scania, Yanmar and Volvo that are the world’s leading machinery manufacturers, continue in 2018. Type approval certification projects have been completed and type approval certificates have been released for companies such as Caterpiller, Tenmat Ltd, Scania, Baudouin, Shanghai Diesel and Jotun Boya that produce some products that are the most preferred products in the maritime sector.

In 2018, we increased the number and tonnage of the vessels in the TURK LOYDU register and improved the average fleet age and we carried our works to increase the types of ships in our fleet. Fatih,Turkey’s first drilling ship that has a length of 229 metres, began to serve under TURK LOYDU class. We initiated classification process for inclusion of another ship that is identical to this special ship and was added to our country’s

assets by TPAO, into TURK LOYDU class.

We signed a protocol with the Ministry of Transport and Infrastructure to classify integrated floating power plants of Karpowership, owner of the only energy production fleet in the world, with Turkish flags. Pursuant to this protocol, classification services will be provided for new Turkish flagged vessels in the fleet.

According to the performance evaluations performed by Paris MoU, one of the most important performance indicators for service vessels and the world’s first and most important Port State Control regime, TURK LOYDU maintained its position in “High Performance” category in 2018. The fact that we did not experience an arrest attributed to us since 2015 has also been a source of pride for us.

Even though global developments in the world, trade and customs wars, raw materials and energy need directly affect maritime sector, we are hopeful about 2019. Data from the end of the previous year indicates that this year is expected to be a better year than 2018. Markets will be more dynamic with the balancing of the new shipbuilding orders and scrapped ships, works aimed at renewal of Turkish coaster fleet, execution of Ballast Water Agreement and expected increase in scrap tonnage for old marine vessels due to this rule, new regulations to be introduced in connection with SOX-NOX on flue gasses, Tier 3 etc.

In 2019, the Turkish maritime sector will be supported more, and especially the substandard ships will be withdrawn from our waters and the Turkish flag fleet will be renewed and extended. We believe that Turkish maritime sector will cross rough seas and reach to calm ports in 2019. As TURK LOYDU Maritime Sector, we will continue supporting our stakeholders by working harder during this period.

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MARINE SECTORNEW SHIP BUILDING DEPARTMENTOur organization classified many different types of ships, and successfully maintained its experience in 2018 through classification services offered for various types and sizes owned by Turkish Navy Forces Command, local and foreign shipowners since its formation. Below Table 1 and 2 shows distribution of 28 ships by types which classification process was completed and 18 ships by types which new building agreements were signed in 2018.

DEFENCE INDUSTRY PROJECTSTURK LOYDU successfully completed the classification service of more than 140 navy ships with nearly 20 years of experience in the classification of navy ships. In 2018, 4 new building projects were completed and the classification processes of important navy ships, including TCG ANADOLU, still continue.

Military Projects Completed in 2018ARES HERCULES FINALIZEDIn October and July 2018, last 4 boats have been completed within the scope of 17 Hercules series high-speed boat projectswhich building and classification activities were performed by TURK LOYDU and Ares Shipyard since 2014.

2 Hercules 150 type and 2 Hercules 110 type patrol boats built according to TURK LOYDU Navy Ship Rules and started operating in Qatar Bay and oceans.

Ares 150 and 110 Hercules coastal safety ships which have been completed in Ares Shipyard Antalya Free Zone built for Qatar Ministry of Interior Affairs are the largest composite-hull ships ever built in Turkey, and their length and breadth are 48 and 34 metres and 9 and 8 metres, respectively.

2 pieces 150 Hercules and 2 pieces 110 Hercules type high-speed boats were delivered to the Qatari authorities and Ares 150 Hercules 35 has been recognized as open sea patrol ship with the highest speed in the world with maximum speed of 35 nautical miles.

Ares 150 Hercules with technical specifications below was built with high comfort and luxury even though it is a navy project, and interior design of the ship can compete with luxurious hotel rooms. Vessel has gained appreciation of authorities from Qatar with top class materials equipped through VIP cabins, recreation halls and to the bridge.

Table 1; distribution of 28 ships by types which classification process was completed in 2018.

Table 2; distribution of 18 ships by types which new building agreements were signed in 2018.

ANNUAL REPORT | 2018

Naval Ship - 4 Passenger Ship - 3 Tanker - 1 Fishing Vessel - 1Dredger - 1 Work Boat - 7 Utility Vessel - 3 Pontoon - 8

Naval Ship - 3 Passenger Ship - 1 Tanker - 1 Ro-Ro Cargo Ship - 1Tug - 1 Yacht (Sailing) - 4 Utility Vessel - 1 Pontoon - 6

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Military Projects Continues in 2018

BUILDING OPERATIONS FOREMERGENCY RESPONSE AND DIVINGTRAINING BOATS CONTINUE UNDERTURK LOYDU CLASSSubject to the classification agreements executed on 29 November 2017, shipbuilding operations for two Emergency Response and Diving Training Ships (ACMB) were undertaken by DESAN Deniz İnşaat San. AS. And building operations continued in 2018.

Upon completion of Emergency Response and Diving Training Boots that are built under Turk Loydu class, they will be used by the Naval Forces Command for diving trainings and emergency diving operations in Marmara Sea,rescue diving, various underwater repairs (welding/ cutting/

patching/ rivet, etc.), lifting balloon/ floating pontoon use, deep water diving, pressure room operation and treatment methods, remotely controlled underwater robot operations.

In addition, it will be able to carry out trainings of modern dive and rescue systems that are new to the inventory and will have the characteristics of rescue diving and emergency response in case of accidents in Marmara Sea and coastal waters.

COUNT DOWN FOR ADDITION OF LOGISTICS SUPPORT SHIPS TO THE NAVY FLEETWithin the scope of new building agreement signed in 2015 with Selah Shipyard for 2 Logistics Support Ships, each having a cargo carrying capacity of 6 thousand DWT and featuring capability of meeting fuel requirements combat elements and fuel tanks on the shore, Classification activities and tests for TCG YZB Gungor Durmus and TCG UTGM Arif Ekmekci Logistics Support Vessels continue, and building operations and issue class certificates for these 2 vessels planned to be completed in 2019.

Make/Model Ares150 Hercules Offshore Patrol Vessel (OPV)

LOA 48.09 mBeam 8.95 mDraught 1.78 mDisplacement 275 tons (full load)Maximum Speed 35 knotsRange 800 Nm

Main Engines3 X MTU 16V 4000 M63L Diesel Engines

Water Jets3 X Rolls Royce S71-4 Water Jets

Generators2 X CAT C7.1 118kW Diesel Generator Sets

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In addition to having a length of 106.51 metres, breadth of 16.80 metres and fuel carrying capacity of 6150 tons and a heliport as well as speed of 12 nautical miles (22 km/ hour), logistics ships will successfully complete the tasks of supplying food, water, clothing, equipment, ammunition, fuel and construction materials for operation forces; carrying personnel, equipment and devices; providing logistics support such as medical aid, equipment, tools, ship repair- maintenance and meeting logistics requirements of the navy forces in overseas navy bases. In addition, the logistic ships are built to have a small operating room which allows for surgical intervention. Logistic support ships will be able to transport navy forces and materials to anywhere in the world and bring them to the desired location as soon as possible, with the ability to operate in shallow waters and carry tons of weight.

On the other hand, heliport of TCG YZB Gungor Durmus Logistics Support Ship will have the structure and equipment required for take-off during night and day and landing of general purpose helicopters of 15 tons.

This platform is the first platform to carry the highest tonnage helicopter among the support ships in the Turkish Navy inventory. The first ship of the series launched in 2016 is named after SAT Commando Lieutenant Gungor DURMUŞ who martrised during drills. Works and tests related with the delivery of TCG YZB. Gungor Durmus Logistics Support Ship (A-574) continue at full speed.

TCG UTGM Arif Ekmekci Logistics Support Vessel (A-575), which is the second one of the logistic support vessels that is named after martyr SAT Commando Senior Lieutenant Arif Ekmekci who was lost during 1993 Sea Wolf Drill and found after 15 years, has been launched with a ceremony organized on 8 July 2017 and the relevant tests have been started.

TCG ANADOLU, SOURCE OF PRIDE FOR TURKISH DEFENCE INDUSTRY, CONTINUES AT FULL SPEEDIn 2015, the classification agreement of Multi-Purpose Amphibious Assault Ship (TCG ANADOLU) was signed between TURK LOYDU and Sedef Shipyard and in 2018, while the classification activities of the Multi-Purpose Amphibious Assault Ship (TCG ANADOLU) continueing without slowing down, significant progress were experienced such as productions of blocks and erection of blocks on dry dock were finalized in the first half of the year.

TURK LOYDU pays great attention to work harmonized with Sedef Shipyard and other stakeholders for this gigantic project among aircraft carriers which is considered as the last point in the development of the Turkish Defence Industry.

The Multi-Purpose Amphibious Assault Ship (TCG ANADOLU) is expected to be completed in 2021. Upon completion and finalization of classification services in 2021, it will be able to be operated in the Aegean, Black Sea and Mediterranean operation areas, and Indian Ocean (north of theArabian Peninsula, west of India) and Atlantic Ocean (west ofEurope, north-west of Africa) when required.

Multi-Purpose Amphibious Assault Ship TCG ANADOLU will be capable of carrying fully-equipped battalion by up to 46 Altay tanks and mechanized support vehicles under full

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ANNUAL REPORT | 2018

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protection from air and sea- in other words, without main base support- to crisis areas; it will be able to join landing operations with landing vehicles carried in its pool and it will have a flight deck that allows operations during day and night with the heaviest NATO helicopters and rotating rotor Osprey aircraft in its inventory.

In addition, TCG Anadolu will have a platform that allows opeartions with full capacity in the heaviest sea and air conditions with aircraft of various types and sizes including our national pride ATAK helicopters. Republic of Turkey will be able to change its regional power transfer capability into a medium-scale global power transfer capability with TCG Anadolu that allows full-time operation of 19 tactical aircraft such as F-35Bs which are capable of taking off in the short range and landing vertically.

TCG Anadolu will have an infirmary/ hospital with minimum capacity of 30 beds including an operating room, X-ray machines, dental treatment units as well as intensive care and infection rooms in order to perform natural disaster response tasks, and it will take a role in humanitarian aid operations.

Having largest sea platform in Turkish Navy’s inventory The Multi-Purpose Amphibious Assault Ship TCG ANADOLU, will be built with a length of 231 metres and weight of 27.436 tons at full-load displacement.

Technical specifications of TCG ANADOLU:Length: 231.82 mFlight deck length: 202 mWidth: 32 mHeight: 58 mMaximum Speed: ~ 21 knots (at full load)Continuous Economic Speed: 16 knotsRange: 9.000 nmNavigation Time: 30 days (without logistics support)Service Life: 40 yearsMaritime FeatureFlying unity operations at Sea State 5

Loading and unloading operations at Sea State 4

Flight Deck: 5.440 m2 (6 landing points, suitable for the landing on platforms up to maximum weight of 35 tons)

Hangar Area: 900 m2 (F-35B, S-70B, AW-149, CH-47, etc.)Dock Area: 1.165 m2 (4 x LCM or 2 x LCVP)Heavy Cargo Garage: 1.410 m2 (Tank, AAV, TEU Container, etc.)

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Projects Signed in 2018UNDERWAY REPLENISHMENT AND COMBAT SUPPORT SHIP DIMDEG IS ON THE WAYIn December 2018, an agreement was signed between TURK LOYDU and Sefine Shipyard in connection with the Classification Services for Underway Replenishment and Combat Support Ship (DIMDEG).

DIMDEG will have a capacity to meet fuel, water, food, spare parts, medical equipment, ammunition requirements of combatships owned by the NavyForces Command through underway replenishment method.

Built for the purpose of performing tasks such as supporting the peace, inspection at sea, natural disaster relief, search and rescue, performance of operations for evacuation of noncombat elements and maintaining logistics support activities (meeting fuel/ water requirements at sea/ port, replenishment of fuel tanks, transfer of fuel between fuel tanks, etc.) in order to meet requirements of the Naval Forces Command, DIMDEG with a length of 195 metres and approximate weight of 22,000 tons will be the largest support ship of our Navy Fleet. In addition to replenishment capabilities, DIMDEG will be able to perform the duty of Command Control Ship during offshore and overseas operations performed with combat ships such as MİLGEM and LHD.

DIMDEG will be built by the Sefine Shipyard based on local design project. In addition, many local defence industry companies such as ASELSAN and HAVELSAN are planned tobe involved in this project.

For TURK LOYDU which has gained great experiences and achieved success with classification services provided to more than 140 navy ships, DIMDEG is defined as source of pride for being the largest support ship built for Turkish Navy Forces, and classification services is planned to be completed in 2023.

UNDERWAY REPLENISHMENT ANDCOMBAT SUPPORT SHIP GENERAL SPECIFICATIONS

Task Areas

Vessel will be able perform various tasks including Amphibious Missions in Mediterranean Sea (Mid Adriatic) and , Eastern Mediterranean, RedSea, Gulf of Aden, Basra, East African Seas, Indian Ocean and others where necessary In addition to Eagean and Blacksea.

Max Speed Min.24+knotsService Speed Min 14 knotsDuration of Navigation Min. 30 daysNavigation Distance Min. 4500 NMEconomical Lifespan Min 30 yearsNumber of Crew 186 person

Main Propulsion System"CODOG-E (Combined diesel or gas turbine-Electric)"

LOA, Breadth 194.8 m , 24.4 m

DİMDEG

ANNUAL REPORT | 2018

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TWO TRAINING SHIPS FOR QATARNAVY FORCESTURK LOYDU continues to provide classification services with two navy training ships (Cadet Training Ship) that will be built in ADIK Shipyard. New-building ship classification agreement of these ships for the Qatari Navy was executed in mid-2018 and training ships in 90 metres length planned to be built the with practical and theoretical training facilities for students and instructors.

In addition, navy training ships equipped with medium-sizeheliport are expected to have a capability to perform offshorepatrolling duties. Navy student training ships for which classification services are planned to be completed within 3 years, will have a special importance for TURK LOYDU within the scope of navy projects bulit for Qatar Naval Forces.

FLOATING DOCK CLASSIFICATION AGREEMENT WAS SIGNEDContract of Floating Dock of 10,000 tons was tendered to HAT-SAN Shipyard by MSB General Directorate of Shipyards via ASFAT A.S in order to meet the requirement of Navy Forces Command and its classification services are performed by TURK LOYDU.

Project agreement was signed in October 2018 and it will be one of the largest floating docks ever built in Turkey with a length of 175 metres and breadth of 42 metres. Classification Services of NB12, having a lifting capacity of 10,000 tons are planned to be completed in 2019.

Other Developments Experienced in Defence Industry in 2018On 17th of January 2018, Asfat A.Ş. (Askeri Fabrika ve Tersane Isletme Anonim Sirketi) has been founded in order to serve to the global defence industry with National Turkish facilities and contributing to the economy, by using opportunities and capabilities of 27 Military Factories and 3 Military Shipyards associated with the Ministry of National Defence. Having authority to execute “Interstate Agreements”, Asfat A.S. signed an agreement with Pakistan Defence Production Ministry for 4 MILGEM Corvettes among which two will be built in Istanbul Military Shipyard Command and the other two will be built in Pakistan Karachi Shipyard. The classification services of the project, which is expected get start in the first quarter of 2019, will be performed by TURK LOYDU.

In addition to navy ship classification activities that are performed together with the Directorate of Defence Industryfor nearly 20 years; a Memorandum of Understanding covering training services, consultancy and R&D services was signed on 12 June 2018.

TURK LOYDU ASSURANCE FOR POLICE PATROL BOATS First armed Police Boats of Turkey built in Izmir by Gozuyilmaz Muhendislik Ltd. in order to be delivered to Yalova and Kırklareli provinces under Turk Loydu class.

The boats built under the TURK LOYDU class are made of HDPE which is a special high-density thermoplastic material. Boats do not require poisonous paint and maintenance due to this special material also do not require docking during their lifetime.

The first armed Police Boats of Turkey have been launched in Izmir Command Shipyard and docked in Pasaport Pier in order to execute navigation tests and acceptance procedures within the scope of the agreement signed with General Directorate of Security.

Boats which are equipped with automatic machine gun, night vision system, special projector system, cutting-edge navigation and electronic control systems, designed to perform inspection, surveillance and patrol operations in accordance with the requirements of the police forces. Boats with 2x450 HP supplied with FPT machines can reach 24 nautical miles per hour.

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COMMERCIAL PROJECTS

Project Completed in 2018NEW TYPE SHIPS OF DENTUR EURASIA COMPLETED UNDER TURK LOYDU CLASSThe last two ships- Besiktas and Kabatas- of the projects of 4 passenger boats that were built in order to operate in Istanbul Strait by Dentur Avrasya Company under the TURK LOYDU class started services as planned.

The projects initiated upon signing of agreement in 2015, stand out with different and innovative boat design as well as the environment-friendly features, among similar boats operating on the same route. Boats that were put into service in the Bosphorus Uskudar - Besiktas - Kabatas and Eminonu - Bebek gained great appreciation of citizens. Silent, new generation, environment-friendly engines with low emission rate are used in the new generation boats with modern lines that are designed in accordance with Istanbul’s silhouette, in order to reduce adverse impacts of traffic on the environment and increase the amount of sea transport percentage by ensuring effective use of sea which is defined as the natural asphalt of Istanbul.

According to the results of model tests conducted in Poland for these projects that have great importance on the design and safety, new ships with high manoeuvrability achieved 54% fuelsaving thanks to the special hull form used for the first time in the world, and capable of navigating 40% faster compared to the existing ships.

The ship provides transport without barriers thanks to the passenger platform with special design implemented for the first time in Turkey in order to facilitate boarding and disembarking of physically disabled passengers also it has special parking areas for bicycles.

GELİBOLU NB.50 RO-RO PASSENGER SHIP HAS BEEN COMPLETEDRo-Ro passenger ship named ‘GELİBOLU’ included in Gestas fleet upon completion of building and classification services in Aksoy Gelibolu Shipyard stands out with a capacity of 110 vehicles and 576 passengers and 5 propellers that can navigate at 14 knots speed.

Thus having fast navigation speed and manoeuvrability, ship can carry more vehicles thanks to the mezzanine deck on the vehicle deck besides, it took place with a length of 88 meters among the other large passenger ships which are classified by TURK LOYDU.

MEHMET AKİF STARTED OPERATIONS“MEHMET AKİF” which is completed in Arkadas Shipyard, issuitable to transport oil and fuel with a flash point higher than 60 degrees and is 56 meters long and has 10 meters beam. In the beginning of 2018, TURK LOYDU finalized classification process for Mehmet Akif which has been put into service as an oil product tanker.

FISHING BOAT ILHAN YILMAZ 3 IS AT SERVICEClassification services has been completed in 2018 for fishing boat Ilhan Yilmaz 3 that is built in Ustamehmetoğlu Shipyard since 2016, and its propulsion system consists of 3 conventional steering gears that are powered by 6 generators beyond ordinary. Having interconnection between steering engines, Ilhan Yilmaz 3 strengthened the manoeuvre and fishing capabilities with a tunnel thruster . In addition to being recognized as the largest fishing boat with breadth of 17 metres that was ever built for a Turkish shipowner, Ilhan Yilmaz 3 is equipped with shock freezing, cooling and ice machines for fish caught.

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Projects Agreements Signed in 2018NAVTEK TUG - BATTERY SUPPLIED ZERO-EMISSION TUGBOATDesigned by NAVTEK and having a length of 19 metres andbreadth of 7 meters tugboat named “TK NB.02” production has been started in TK Tuzla Shipyard under control of TURK LOYDU. The project is within ships which has very few examples in the world since Li-ion batteries are used as the main power supply. The main power supply is divided into two in order to ensure to comply with redundancy requirements. Innovative project TK NB.02 is equipped with 1 emergency generator. Charging of batteries is planned to be carried out with the power supplied from the shore via two supply connections from the shore and two supply connections on board, and main switchboards will be supplied with separate connections on board.

ÇEBİ NB.06 (MELEKSU) RO-RO PASSENGER SHIP IS THE LARGEST IN EASTERN BLACK SEA REGIONCebi Meleksu Ro-Ro Passenger ship with a length of 90 metres and breadth of 22 metres will be built in Trabzon CebiShipyard; TURK LOYDU classification services agreement was signed in December 2018 and completion date is targeted as 2019. The design and calculations of the Ro-Ro

passenger ship were created by Ayden; it has 400 passenger capacity, single vehicle deck, conventional propulsion system with two steering gears.

Meleksu has a capacity of 35 Trucks while service speed is set as 14 knots. Planned to be operated between Istanbul and Bandirma, Meleksu will be the largest cargo carrier ship built in the Eastern Black Sea region. Building and classificationservices of the ship are planned to be completed in 2019.

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MATERIAL, PRODUCT AND COMPANY CERTIFICATIONIncreases have been observed in material and product certification projects’ quality and quantity with the increase of new construction projects carried out within the scope of TURK LOYDU class services.

In 2018, 565 certification process have been completed and 180 new contracts have been signed for Material, Product and Company Certification. The table below shows the distributionof certification projects finalized and new agreements signed in2018 by types.

While type approval certification for many new products were successfully completed by TURK LOYDU in 2018, type renewal certifications were continued for existing product ranges that already have type approval.

TURK LOYDU type approval certificates that are valid for many models of the world’s leading manufacturers of diesel engine such as MTU, Wartsila, Mitsubishi, Scania, Yanmar and Volvo, were continued in 2018 and some new types and models of these manufacturers have been included in the scope of type approved products upon which type

approval certification extension activities were performed. Type approval certifications have been completed and type approval certificates have been released for companies such as Caterpiller, Tenmat Ltd, Scania, Baudouin, Shanghai Diesel and Jotun that produce products that are the mostly preferred in the maritime sector.

In 2018, number of companies holding type approval certificates issued by TURK LOYDU has been increased by 28 and this number reached to 89 including companies registered out of Turkey.

0

50

100

150

200

250

4645

25

64

201

518

148

4

198 6

19

214

90

54

22

618

2

Table 3; distribution of certification projects finalized and new agreements types signed in 2018

ANNUAL REPORT | 2018

Type

App

rova

l Ren

ewal

Type

App

rova

l Inı

tial

Type

App

rova

l Ext

ensio

n

Test

Cer

tifica

tion

Serv

ice

Supp

lier -

Ren

ewal

Serv

ice

Supp

lier -

Inıti

al

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Mat

eria

l Cer

tifica

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ufac

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r App

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EIAP

P

Bolla

rd P

ull C

ertifi

catio

n

Projects completed in 2018 certificate proceduresProjects to be continued in 2019

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31

In 2018, product certification projects were initiated and continued with the world’s leading equipment manufacturing companies.

These projects particularly include Tunnel Thruster manufactured by Brunvoll AS within the scope of LHD project, Generator Sets produced by Navantia Company, Anti-Rolling system produced by Fincantieri SpA, and the POD System produced by Siemens AG for which product certificates were successfully issued by Turk Loydu.

Z type propulsion system used in tugboats built for Coastal Safety by Wartsila Propulsion Company, diesel engines manufactured by Wartsila Italy S.p.A, diesel engines

manufactured by MTU Company in order to be emound to TVEG project, gear boxes manufactured by Renk Company, CPP system manufactured by Andritz Hydro GmbH, water jets manufactured by Rolls-Royce Company used in Ares Shipyard projects can be shown as examples for product certification projects.

As in previous years, certification projects were continued in 2018 with the manufacturer companies located in many parts of the world. We took firm steps towards becoming aglobal class society by signing 138 certification agreements with 21 countries in 2018. The table below shows distribution of number of certification agreements signed with foreign manufacturers, by countries.

5

10

15

20

25

30

35

Table 5; distribution of number of certification agreements signed with foreign manufacturers, by countries

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Table 4; distribution of type approval certificates by material/ equipment types

0

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32

IMPORTANT SUPPORT TO NATIONAL SUBORDINATE SHIP BUILDING INDUSTRY

Turk Loydu Type Approval Certificate of Alarm Monitoring and Control System produced for the first time in Turkey by Hakan Elektrik ve Otomasyon, in order to be mounted to vessels of Dentur Avrasya operating in Istanbul Strait has been issued and delivered during the ceremony held in the head office of TURK LOYDU on February 2018.

Standing out with the support provided to Turkish shipbuilding industry, TURK LOYDU continues to make a distinguished name with the services provided to the national supplier companies. It has been declared that Alarm Monitoring and Control System produced with national resources and national software for the first time in Turkey by Hakan Elektrik became entitled to obtain TURK LOYDU Type Approval Certificate.

The Company stated that they will use advantages of holding TURK LOYDU Type Approval Certificate not only in the domestic market but also in export projects and that they

thank TURK LOYDU for the continuous support provided during these processes.

Cem Melikoğlu, Chairman of the Board of Directors of TURK LOYDU Foundation, congratulated Hakan Elektrik ve Otomasyon that manufactured Alarm Monitoring and Control System for which Type Approval Certificate was delivered and stated that TURK LOYDU will always continue supporting Turkish Shipbuilding Industry.

ANNUAL REPORT | 2018

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“As TURK LOYDU, we provide ultimate support for indigenization thrust of our country; we strive to increase brand value of our country by certifying products of national producers in accordance with the required standards”

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SHIPS IN SERVICE

TURK LOYDU Ships in Service Department increased gross tonnage of its fleet by 13% in 2018 and in total, it achieved a level of 941,923 GRT.

The number of vessels in the fleet of TURK LOYDU is 610, the fleet diversity has been increased as a result of the class transfer processes performed during the year.

In 2018, in addition to periodical surveys of the marine vessels in TURK LOYDU fleet, we successfully performed mandatory surveys and certification services in accordance with Authority Delegation Agreements signed with flag states within our authority.

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ANNUAL REPORT | 2018

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19,19

19,17

19,02

19,10

19,30

19,39

19,44

19,32

19,23

19,37

19,45

19,38

19,51

18,60

18,80

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19,20

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831.260 827.517

857.779862.879

873.885869.841 854.497 853.335 849.137

861.849

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942.254941.923

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840.000

890.000

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596

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585

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36

CONDITION SURVEYS

In 2018, in addition to the periodical surveys, pre-purchase surveys were successfully carried out by TURK LOYDU’s professional personnel.

As a result of the survey and report prepared, reporting was made in connection with general conditions of the existing systems and whether the ships built in accordance with the international rules.

TURK LOYDU CLASS ENTRY AND PERIODICAL SURVEYS OF MARINE VESSELS AND FLOATING DOCKS

Transfer of Class (TOC) allows TURK LOYDU to transfer of marine vessels and floating docks into class from one of members of the International Association of Class Societies (IACS) or non IACS classed.

TURK LOYDU CLASSED LPG Tanker M/T HAPPY

Gas plays an important role in ship industry world ; as both cargo and ship fuel. The M / T Happy LPG tanker, which is under the management of Moonlight Energy CO., Has been included in the TURK LOYDU class in 2018. This situation has increased the diversity of vessels in the fleet of TURK LOYDU and has had a positive effect on the development of the surveyors and gaining qualifications. Happy is a LPG Tanker built in 1993 and currently flying the Mongolian flag.

CLASS TRANSFER WAS PERFORMED FOR FATIH “THE FIRST DRILL SHIP OF TURKEY

Fatih, the first drill ship of Turkey that was built in South Korea in 2011, is considered as the 6th generation and it is equipped with state-of-the-art technology.

Having a length of 229, marine vessel Fatih has capability of drilling under very high pressure in a depth of 12,000 m.

The fact that TURK LOYDU is preferred as the second class in the auditing and certification of the ship equipped with dynamic positioning technology is an indication of trust in us. Marine vessel Fatih has a special value in TURK LOYDU fleet thanks to its technological features, type and function. As TURK LOYDU family, we are honoured to provide services to our national drill ship.

Length of 229 metres

Drilling depth of 12 thousand 120 m

Gross tonnage of 51 thousand 283

ANNUAL REPORT | 2018

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NATIONAL DRILL SHIPFATIH

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CLASS TRANSFER WAS PERFORMED FOR M/V GULMAR (BULK CARRIER)

Class transfer of M/V Gulmar Bulk Cargo ship was performed in 2018, the ship is operated by Gulnak Denizcilik Nakliyat and Ticaret A.S. Following the transfer, bulk carrier type marine vessels formed 9.1% of TURK LOYDU fleet.

INCREASE IN CLASS TRANSFERS OF FLOATING DOCKS

There are 35 floating docks in Tuzla, Yalova and Zonguldak. In 2018, the number of docks in the fleet has been increased to 11 upon class transfer of 5 floating docks.

CLASS ENTRY SURVEYS OF PASSENGER SHIPS

Works and surveys required in connection with international operation of passenger ships that are operated in national waters especially in the Aegean Region were completed and international class and official certificates were issued

for passenger ships. Preliminary controls were made as to whether the ship was built in accordance with class rules and international rules, flag state was contacted actively to determine mandatory rules and they were implemented successfully to change class notations of the marine vessels and operation in international waters was made possible. External surveys (PSC) were performed to check international compliance of marine vessels and they were found successful.

MARINE WARRANTY SURVEY SERVICES

TURK LOYDU provides Marine Warranty Survey Service for operation such as offshore rigging and transfer of large structures such as column and deck segments of offshore structures, bridges, etc. In this context, the design drawings presented to us are examined in terms of strength and safety; all designs related to the loading, transportation and on-site equipment process are checked and risk assessment is carried out. For this purpose, a Marine Warranty Survey Agreement was signed between DSLY Adi Ortakligi and TURK LOYDU regarding the Çanakkale Bridge Project. Surveys have been initiated in 2018 and at present, they are continued in accordance with the agreement.

COMPULSORY SURVEY AND CERTIFICATION SERVICES OF YACHTS

In addition to the class surveys and compulsory surveys of yachts, the technical consultancy services started to make TURK LOYDU a preferred class society in connection with classification of yachts.

MANAGEMENT SYSTEM AUDITS AND CERTIFICATIONS (ISM, ISPS, MLC2006)

MLC 2006: covers employment agrements of seamen and obligations of maritime companies under such agreements, working hours, health and safety, living spaces, living standards and other matters concerning welfare of seamen within and extensive scope.

Effective implementation of conditions on scope of ship surveys under MLC 2006 that entered into force on 20 August 2013, in marine vessels with TURK LOYDU class is of great importance for maintaining the high-performance position of TURK LOYDU in Paris MoU performance list.

Safe operation of ships is ensured as a result of MLC2006 surveys carried out by TURK LOYDU’s expert auditors and performances are increased during Port State Surveys.

ANNUAL REPORT | 2018

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In 2018, TURK LOYDU continued to provide services related to the approval of companies and ships in compliance with ISM Code requirements, approval of ship security plans, ship security verification and issuance of international certifications.

SANMAR DENIZCILIK ISM CODE CERTIFICATION4 tugboats operated in Petkim Aliaga facilities of Sanmar Denizcilik, one of the leading tugboat manufacturers and operators in the world, have been granted ISM Code Safe Management System Certificate upon passing audits

conducted by TURK LOYDU. Certificates issued for Sanmar Denizcilik’s tugboats were delivered in a ceremony held in TURK LOYDU headquarters in 2018.

Carrying out tugboat and pilotage operations within administrative borders of 7 different Port Authorities in Turkey and in 3 different foreign countries, Sanmar Denizcilik chose for TURK LOYDU for the certification of ISM Code Safe Management System established for the purpose of providing services at global standards with its modern tugboat fleet, ensuring safety of life and property and protecting the environment.

MLC2006 CERTIFICATION FOR TUGBOATS OF THE GENERAL DIRECTORATE OF COASTAL SAFETY

Conformity certification services of 9 tugboats above 500 GT under operation the General Directorate of Coastal Safety were successfully carried out within the scope of MLC 2006.

In this context, MLC 2006 Certificates, the documents required for the tugboats to work internationally, were delivered to the General Directorate of Coastal Safety after successful completion of surveys.

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PORT STATE CONTROLSMarine vessels under TURK LOYDU class recorded a historical success with a 3.91% detention rate in the 2018 during surveys of the Paris Port State Control Memorandum. One of the important factors that allowed achievement of this rate is the continuous monitoring of the ships in our fleet and thus achieving high standards. All findings obtained during port state surveys and data obtained during investigation processes were analysed within the scope of monitoring activities, and corrective and preventive actions are taken for marine vessels in our fleet.

35 target marine vessels were identified in the beginning of 2018 and non-programmed survey was performed about these marine vessels during 2018 in order to improve our fleet’s performance during port state controls and pre-determining the problems that may be experienced. These ships achieved successful results during port state controls that were performed in 2018.

Improvement action were taken in connection with Fleet Monitoring and Port State Control Procedures for the purpose of improving the success rate based on the feedback received as a result of evaluations made during the year, and active monitoring of marine vessels were initiated based on additional criteria. Leaving many competitors behind in the Authorized Economic Operators Performance Table that is prepared based on results of surveys performed on marine vessels in the last

three-year period covering 2015-2017 and revised in the website of Paris Port State Control Memorandum of Understanding (MoU), TURK LOYDU ranked among the top 9 “High Performance” class societies in the list where it appeared for the last 12-year period.

Positioned at the 9th rank in the High Performance Table of Paris MoU, TURK LOYDU left many reputable class societies as well as some assertive IACS (International Association of Class Societies) members behind with its high quality standards and superior service performance, it proved its position as High Performance Class Society in Paris MoU to the rest of the world. Paris Port State Control Memorandum of Understanding is recognized as one of the world’s first and most important port state control regimes, which oversee compliance with international rules in many areas such as safe management of marine vessels, safety of life and property at sea and marine pollution. Marine vessels in the fleet of TURK LOYDU are subjected to less frequent surveys in the ports of Paris MoU member states as a result of the experience and expertise of TURK LOYDU in connection with port state controls and its announcement as “High Performance” organization by Paris MoU.

An Intensive Audit Campaign was organized within the scope of Marpol Annex VI (air pollution) by Paris and Tokyo Port State Control Memorandum of Understanding. TURK LOYDU and the Turkish Maritime Administration provided preliminary

40

ANNUAL REPORT | 2018

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TÜRK LOYDU TL 487 0 15 4 -1.60TÜRK LOYDU TL 525 1 16 5 -100

inspections and preparations for supporting the campaign.Employees of TURK LOYDU Port State Controls Department provide information and issue warnings for the fleet by preparing bulletins and analysis reports in addition to fleet monitoring. Statistical works and analyses were performed on surveyed and arrested marine vessels in 2018 within the scope of PSC Annual Report. As a result,

we were able to improve the quality of the ships in our fleet by taking corrective and preventive actions in order to eliminate the shortcomings. In addition, the Port State Controls Booklet was prepared, providing information on items that the ship personnel could self-inspect before they commencement of the port state controls. This allowed the ships in our fleet to get ready before the inspection.

TURK LOYDU RANKED 9TH IN PARIS MOU

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PLANNING, APPROVAL AND ENGINEERING SERVICESPlan Approval and Engineering Division operating in the Maritime Sector consists of Hull and Stability Department, EMachinery and Electrical Installation Department and Statutory Department Activities of the department include control and approval of hull, machinery and electrical plans for the purpose of classification of all types of military and commercial marine vessels and marine structures that will be transferred to TURK LOYDU class as well as new marine vessels to be built under supervision of TURK LOYDU; control and approval of plans that are basis to type and product approval certificates of military and commercial ships; control and approval of hull, machinery and electrical plans on behalf of Flag States; review and approval of theoretical calculations marine vessels (stability, damage stability, longitudinal strength, grain loading, freeboard, etc.); structural design analysis of lifting equipment and local structures by using finite elements method; control and approval of Multipoint Mooring System plans for tankers; verification of the International Energy Efficiency certification (EEDI) technical files; structural analysis of propulsion system for vibration (torsion, bending and shaft lining, etc.); document reviews within the scope of Marine Warranty surveys and risk assessment services.

In 2018, hull, machinery, electrical installation and stability calculations were approved in accordance with TURK LOYDU Military Ship Rules in connection with TCG Anadolu-LHD- Multi-Purpose Amphibious Assault Ship, TCG Utgm Arif Ekmekci- LDG- Logistics Support Vessel built under supervision of TURK LOYDU, LCM class Mechanized Landing Ships, ACMB Emergency Response and Training Boat and I Class Frigates.

In 2018, plan approval and engineering services were provided for the international voyages of the vessels which will make a voyage to the Greek Islands.

Towards the end of 2018, 10,000-ton military Floating Dock agreement was signed, and planning control service was commenced.

1915 Canakkale Bridge Marine Warranty Survey (MWS) agreement was made and plan control services were commenced.

Pursuant to instructions issued by the administration, approvals were commenced for plans in connection with

multi-point mooring systems for tankers so, terminals with Multipoint Mooring System can obtain class report.

Processes on the International Energy Efficiency certification

ANNUAL REPORT | 2018

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43

aimed at regulations of the International Maritime Organization for improving energy efficiency in internationaltransport, and verification of Energy Efficiency Design Index files were continued during the

year. For the purpose of plan approval, projects except for “Restircted” and “Confidential” documents of military ships and all commercial projects and certification projects are approved via EPAS.

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HISTORICAL SUCCESS OF TURK LOYDU IN IMOTURK LOYDU, undersigned an important accomplishment for Turkey in the International Maritime Organization (IMO). TURK LOYDU’s Class Rules were discussed at the 100th session of the Maritime Safety Committee, one of the most important committees of IMO, and Turk Loydu was approved in accordance with the GBS (Goal Based Ship Construction Standards). TURK LOYDU was the first organization outside IACS whose rules were verified by IMO.

According to the International Maritime Organization’s (IMO) implementation of the GBS, the rules of the relevant body must be inspected and verified by the IMO in order to classify the newly built Oil Tankers and Bulk Carriers over 150 meters or more. Until the present date, only IACS members were authorized within the scope of GBS.

On March 27, 2018, TURK LOYDU applied to IMO with the support of the Ministry of Transport and Infrastructure and requested class rules to be verified within the scope of GBS; passes all inspection with extraordinary performance and obtained right for submission to IMO MSC Committee.

The final decision regarding the verification of TURK LOYDU class rules was made in the Maritime Safety Committee meeting that was held at IMO Headquarters on 3 December 2018. It was made by majority of the vote of members and IMO approved the compliance of TURK LOYDU within the scope of GBS.

As a result of the joint efforts of the Ministry of Transport and Infrastructure and TURK LOYDU became the first non-IACS member class society approved by IMO in connection with rules on building tanker and bulk cargo ships above 150 m in the historical MSC 100 session of IMO. This success has once again revealed the importance of joint efforts as well as reputation and effectiveness of the Administration.

What is GBS (Goal Based Ship Construction Standards)?The Maritime Safety Committee (MSC) meeting of the International Maritime Organization was held in May 2010. GBS standards were accepted in the Annual Meeting. These rules that entered into force on 1 January 2012, requires that all oil tankers and bulk carriers over 150 meters or more constructed on 1 July 2016 or later must comply with the relevant structural requirements of the Goal Based Ship Construction Standards. Classification rules for bulk carriers and oil tankers of class societies must be surveyed and verified by MSC under the International Maritime Organization in accordance with GBS standards.

Is GBS required to become a member of IACS?The Association of International Association of Class Societies (IACS) has updated its membership criteria on 1 October 2017 and introduced a prerequisite for verification, requiring that existing members and class societies intending to become a member should be verified in accordance with GBS (Goal Based Ship Construction Standards).

TURK LOYDU is the only non-IACS member organization with Classification Rules approved by IMO MSC; therefore, it met the most important criteria for IACS membership and covered a long distance on the way to become a member.

RULE DEVELOPMENT AND STATUTORY LEGISLATIONIn 2018, Rule Development and Statutory Legislation Division continued to revise TURK LOYDU’s rules and applications in accordance with the amendments in international and national rules. Long term rule development projects of Naval Ships and Passenger Craft in cabotage service were also continued and a new long term project for the revision and development of Offshore Units was initiated under the coordination of this divison in the end of 2018.

TURK LOYDU revises its rules at least twice a year in accordance with the amendments in international rules, standards and feedbacks received from the sector. Following rules were revised and published in 2018:

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In addition to these rules, two additional rules were also revised.

Amendments to the international rules, Fuel Consumption Data Collection System that is particularly important in 2018, finalized 2020 sulphur limit practice, amendments to rules of TURK LOYDU and other developments were announced in 16 newsletters prepared for the maritime sector.

TURK LOYDU maintained research and development activities in 2018 and two project applications were accepted within the scope of Europe Union Erasmus+ (MarED, Maritime Education for Energy Efficiency, SKILLsPATH, Skills beyond the Seas). In addition to these new projects, in 2018, TURK LOYDU continued the NEO-COL and SEAMAP Erasmus + projects.

MEETINGS AND VISITSTURK LOYDU actively participated in international meetings, particularly the International Maritime Organization (IMO) Meetings, in 2018 and continued to inform the sector with its preliminary and final meeting reports and newsletters. In 2018, TURK LOYDU representatives were participated the IMO PPR 5, SDC 5,

SSE5 sub-committee meetings and IMO MSC 99, 100 and MEPC 72, 73 main committee meetings. TURK LOYDU also continued its participation to INSA (International Naval Safety Association) which develops Naval Ship Code (ANEP-77) and Naval Submarine Code with an aim of setting requirements of safety of life and its equipment of naval ships in peace conditions in a goal based manner. Turk Loydu maintained its contributions to “Chapter III Stability WG and Chapter VI Fire correspondence WG” INSA working groups in 2018. TURK LOYDU is also one of the member of NSCA (Naval Ship Classification Association) constituted by seven class societies operating in the naval field.constituted by seven class societies operating in the naval field.

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Classification and Surveys

PART AChapter 1 – HullChapter 2 - Material Chapter 3 – Welding

PART BChapter 4 - MachineryChapter 5 - Electrical Installations

PART CChapter 7 - High Speed VesselsChapter 9 - Rules for Construction and Classification of Yachts Chapter 10 – Liquefied Gas Tankers Chapter 35 - Tentative Rules for Ships Less than 500 GRTChapter 36 - Offshore Service Vessels

PART DChapter 78 - Rules for Classification of Ships Using Gases or Other Low-Flashpoint Fuels

PART EChapter 101 – Naval Ship Technology, Classification and SurveysChapter 104 – Naval Ship Technology, Propulsion Plants

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In 2018, we continued providing services by extending our domestic and international geographical field in parallel with our service range particularly including energy, construction, mining, chemicals, transportation and logistics sectors.

INDUSTRY AND CERTIFICATION SECTOR

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In parallel with the rapid change in technology and digitalization, the relative increase in the standard of living and the reliability of the products and services in line with the increasing consumer expectations gained more importance than ever. In the beginning of the 2000s, more in house certification processes were applied to ensure product safety, and nowadays conformity assessment bodies play a role in conformity assessment without any discrimination between sectors. Each day, the standards in the voluntary area are replaced by the legislations taking standards as reference, and the evaluation criteria become more conservative. There is only one objective for this process of change: Offering safe products to end users.

Despite the positive developments in the sector, the stagnation in the global economy, decline in growth figures from two digits to single digit compared to the same period of the previous year, increase in competition and the violation of trademark rights with counterfeit products despite legal regulations, and serious hazards of unsafe products in terms safety of life and environment affect all aspects of our life. The acceleration of the e-commerce volume with digitalization makes it inevitable to take effective measures to combat counterfeit products. The reason why the conformity assessment should be carried out by independent organizations is clearly stated in the following research results.

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Ayfer ADIGÜZELDirector, Industry and Certification Sector

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Inspections performed by CEOC and IFIA on 800 samples from electrical devices offered in US market in 2016 (hair dryer, shaving machine, tablet, drone, etc.) that should bear CE-mark showed that on average, 80% of the producers (87% for tablets, 92% for drones) do not meet the applicable standard requirements, and 16% of nonconforming products pose risk for life. In other words, very significant proportion of the products offered to the market based on manufacturer’s declaration are not in line with product standards and they are life-threatening. Market surveillance and audits will also make the need for the conformity assessment sector more visible as a result of conscious customer preferences.

Despite shrinkage in the economic figures in the world and in our country, we have carried out intensive efforts in 2018 with all our team members in order to reach our goals without compromising our quality in accordance with TURK LOYDU brand value which reached to 57 years we as an industry sector have carried. We continued our efforts to ensure that the TURK LOYDU brand, one of the first in our country in the field of conformity assessment, reach a wider customer base. We focused on promotion and sales activities in order to ensure the effective promotion of our services to the sector.

For the purpose of our digitalization project that was initiated in order to improve our business processes, we started to produce reports and documents in electronic environment to ensure that our customers can access their reports and documents in a fast and reliable environment. Upon completion of the project, we will ensure that all relevant reports are submitted to our customers in electronic environment upon completion of the relevant works. In 2019, we will continue our digitalization efforts at the same rate.

We initiated the “Lean Management” project that focuses on respect to people and continuous development in order to create value from the point of view of our customers, eliminate the costs arising from the non-necessary business processes, and produce services in a faster and more convenient conditions. The project we initiated with the Lean Institute is an important and long-term project that will turn change process of our company into a transition process. We are maintaining our activities with the effort and active participation of all colleagues. We will continue our project in 2019.

Another critical business goal in transforming our journey of change into achievement of consistent position was to train effective leader. For this purpose, we started the “Leadership” training project with a corporate company for our managers.

We aim to increase the competencies of our managers on a wide range of topics at the end of the nine-month project implemented with competent trainers and mentors. We already started getting good outcomes. We will continue our project in 2019.

Services included to our portfolio in 2018 are as follows:

We, as TURK LOYDU, were recognised by the National Safety Authority as an Assessing Entity to perform conformity assessments against OTIF UTPs and as a Designated Body to perform conformity assessments against national technical rules for the rolling stock sub-system.

We have started to provide a wide range of training, inspection and certification services from infrastructure to signalization, locomotive driver training, TSI certification, in the railway sector.

We obtained “Nuclear Power Construction Inspection Body Authorization” from TAEK on 16.03.2018 in accordance

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with provisions of the Regulation on Inspection of Nuclear Power Plants, in order to provide conformity assessment (test, inspection and certification) services for safe installation and operation of nuclear power plants in our country particularly including Akkuyu Nuclear Power Plant in accordance with the applicable legislation and standards. For this purpose, conformity assessment activities related with Akkuyu Nuclear Power Plant Project Western Cargo Terminal are carried out by our competent team.

We continue providing services by adding professional groups for construction sector to the scope of authorization “Authorized Certification Body” we received from the Vocational Qualification Authority (MYK). In addition, each year, we carry out the personnel certification of approximately 2,000 employees working in welded manufacturing with TURKAK personnel certification accreditation. In 2018, with MYK authorization and TURKAK accreditation, we certified 3200 persons who successfully passed exams. In 2019, we will continue to extend the range of personnel certification and geographic area.

In 2018, we continued providing services by extending our domestic and international geographical field in parallel with our service range particularly including energy, construction, mining, chemicals, transportation and logistics sectors.

Our steel structure inspection services grew by 200% compared to the previous year. In 2018, we implemented many projects including various bridges, stadiums, hospitals, aircraft maintenance hangars, industrial facilities and various types of civil structures, particularly including Çanakkale Bridge. Our projects include Siempel Kamp American MDF Factory, Industrial Plant built for Lithuania, Expo 2020 Dubai Subway for which production was made in China, Erdemir Galvanization Plant, THY Aircraft Maintenance Hangar built in the 3rd Airport and inspection services for Kartal State Hospital. Our construction supervision services grew by 100% compared to the previous year. Other projects subject to important compliance assessments include the 3rd Airport, North Marmara Highway Project (Kurtköy-Kınalı section including YSS Bridge) and Mazıdağı Etibakır

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Fertilizer Production Complex. In 2018, we continued our copper mine extraction and processing plant control services in the facilities built in Kastamonu Hanonu for Acacia Maden Isletmeleri A.S.

For the construction of the projects having high budget and long design life starting from the design control and verification phase which is the first stage of the assessment to the final stage of the inspection against the requirements of the specification, our goal is to ensure the realization of reliable products and facilities for investors, contractors, operators and insurance companies along the chain extends to the end user.

We have been providing services with our competent auditors since 2004, in the project for Accreditation of Chambers and Commodity Exchanges that was initiated in 2002 by TOBB in line with the goal of branding Chambers and Commodity Exchanges in the local, regional, national and international

platforms. In 2018, improvement visits, accreditation and monitoring audits were performed in 149 chambers and commodity exchanges and training was organized in 11 chambers and commodity exchanges. In parallel with the accreditation project, management systems certification audits (ISO 9001, ISO 14001, ISO 10002, ISO 27001) were performed in Chambers and Commodity Exchanges and 61 Chambers and Commodity Exchanges were certified by Turk Loydu.

The number of certified companies within the scope of the management systems consisting of quality, environment, occupational health safety, information security, energy management, customer complaint management standards increased to 251 and services were provided to companies in a wide range of sectors from chemicals to energy, construction and education. Gebze Technical University, Hasan Kalyoncu University, Antalya Bilim University and Yildiz Technology Development Zone in Yildiz Technical University are some of the organizations certified in 2018.

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We continued our efforts in 2018 to develop international cooperation in line with our goal of becoming a power in the region in industrial conformity assessment services. International Confederation of Inspection and Certification Organizations (CEOC International) where we are a member merged with the International Federation of Inspection Associations (IFIA) that provides services at global scale, and formed Testing, Inspection Certification Council (TIC Council)that is a new international organization representing third party verification, in order to penetrate potential markets and closely follow sectoral developments in the international market of conformity assessment. TIC Council formed in Brussel upon merger of global TIC sector organizations, IFIA and CEOC during extraordinary general assembly meeting we attended on 13 December 2018 became the representative of 90 member companies and organizations operating in the field of testing, inspection and certification on a global scale. By taking an active role in the technical committees of the umbrella organizations that we are a member of, we are able to transfer

the technical developments in our service area to our business processes and our stakeholders in the industry.

We took a role in committees for localization efforts under the umbrella of Defence and Aerospace Cluster Association- SAHA Istanbul where we are member and that takes a catalyser role for improving capabilities of the sector in increasing local products’ share in defence industry investments. Our goal is to take a role in solution of the aerospace industry certification requirements of our country, together with the national certification bodies. As the first phase of the process, we organized our first training about the Quality Management System standard for AS 9100:2016 Aerospace and Defence Organizations. We had the opportunity to give information on our service range to actors in the sector by participating in Saha expo fair and conference event organized by SAHA Istanbul. Our aim is to ensure that training and conformity assessment needs of the defence industry are met within the national boundaries without any security risk.

In addition, we attended various sectoral fairs particularly including 5th Nuclear Power Plant Summit and Highways, Bridges and Tunnels Fair. We also visited many sectoral fair organizations as a visitor to follow the developments in the sector. In 2019, with our confidence in our business culture and goals in line with our strategic objectives, we are aiming to strengthen brand value of Turk Loydu further, increase the range of our products, extent the market and maintain conformity assessment services required by our sector and work towards our goal of becoming a power in our country and region by offering innovative services.

We owe continuous diversification and improvement of our conformity assessment services to our qualified human resources, customer-driven digitalization, accelerated business processes, making investments necessary for continuous improvement, and most importantly, trust placed by our customers.

On this occasion, I would like to thank all colleagues for maintaining the sense of commitment at the highest level with the righteous pride of being a TURK LOYDU employee, working diligently and showing effort and confidence towards achieving our goals.

I would like to express my gratitude to our customers and stakeholders who have strengthened us, contributed to our development and showed support in addition to the trust they placed in brand value of TURK LOYDU, and I hope we continue producing together in the new year.

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INDUSTRY ANDCERTIFICATION SECTOR

STRUCTURAL CONFORMITY ASSESSMENT SERVICES

TURK LOYDU carries out production, installation and periodical inspections of structures and provides third party control services for industrial facilities as accredited Type A Inspection Body in accordance with ISO/IEC 17020 as well as Regulation on Design, Calculation and Building Principles for Steel Structures and specifications of customers. It offers turnkey delivery control and certification services

in accordance with the standard legal requirements and specifications of customers. Inspections for concrete, electrical installations, welded productions, fire production systems, heating/ cooling/ air conditioning (HVAC) systems of steel, concrete and composite structures such as airports, residences, sports complexes, stadiums, shopping malls, business centres, cultural centres, skyscrapers, platforms used in oil and natural gas production, are carried out by experienced inspectors of TURK LOYDU. Important projects we carried out in 2018 within structural control services are shared below.

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Location Ankara, Turkey

Scope of Inspections Inspection of steel constructionproduction and assembly

Period 2018 - ongoing

Project Tonnage 1.500 ton

Inspection Standard EN 1090-2 EXC 3

SPECIFIC DETAILS

THY ISTANBUL AIRPORT SUPPORT FACILITIES CONSTRUCTIONInspection services are provided for air-ground personnel access building, operation centre, maintenance and repair workshops for ground services devices and equipment, catering building, cargo building, daily maintenance hangar, heavy maintenance hangar, repair and maintenance workshop for cargo loading equipment, energy centre building, battery charging and defrosting stations and some administration buildings of Turkish Airlines that are built in an area of 700000 sqm in Istanbul Airport.

The project covers a total of 20,000 tons of steel production and assembly’s conformity assessment; steel construction technical specifications and EN 1090-2 standard are implemented by TURK LOYDU according to EXC-3 class.

Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP) specific to the pre-production project.

Client Yüksel Proje

Location Istanbul, Turkey

Scope of Inspections Inspection of steel constructionproduction and assembly

Period 2018 - ongoing

Project Tonnage 20.000 ton

Inspection Standard EN 1090-2 EXC 3

SPECIFIC DETAILS

TAI-TUSAŞ LOGISTICS WAREHOUSE AND OFFICE BUILDING PROJECTTAI-Tusaş Türk Havacılık ve Uzay A.Ş. Logistics Warehouse and Office Building project is built in an area of 16,600 sqm in Ankara Kahramankazan within the scope of TAI central campus expansion project.

The project covers a total of 1,500 tons of steel production and assembly’s conformity assessment; steel construction technical specifications and EN 1090-2 standard are implemented by TURK LOYDU according to EXC-3 class.

Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP) specific to the pre-production project.

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ZİRAAT TOWERS PROJECTZiraat Towers project, built on an area of 426000 sqm in Ataşehir Finance Centre, Istanbul - Turkey consists of two 46 and 40-storey towers where commercial, retail and banking services will be provided. The project covers a total of 6,000 tons of steel production and assembly’s conformity assessment; steel construction technical specifications and EN 1090-2 standard are implemented by TURK LOYDU according to EXC-3 class. Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP) specific to the pre-production project.

Employer Kalyon İnşaat

Location Istanbul, Turkey

Scope of InspectionsInspection of steel construction produc-tion and assembly

Period 2018 - ongoing

Project Tonnage 6.000 ton

Inspection Standard EN 1090-2 EXC 3

SPECIFIC DETAILS

Designed for multi-purpose use and built on the campus of Hasan Kalyoncu University, Gaziantep, the project will have a capacity of 3500 persons and will be the new symbol of the campus. The project covers a total of 600 tons of steel production and assembly’s conformity assessment; steel construction technical specifications and EN 1090-2 standard are implemented by TURK LOYDU according to EXC-3 class. Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP) specific to the pre-production project.

Employer Hasan Kalyoncu University

Location Gaziantep, Turkey

Scope of Inspections Inspection of steel constructionproduction and assembly

Period 2018 - ongoing

Project Tonnage 600 ton

Inspection Standard EN 1090-2 EXC 3

SPECIFIC DETAILS

HASAN KALYONCU UNIVERSITY AMFITORIUM PROJECT

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ISTANBUL (3rd) AIRPORT PROJECTIstanbul Airport Project started in 2013 will be the world’s largest airport with 76.5 km2 surface area, passenger terminals with passenger capacity of 200 million and 6 runways, when it is completed.

In the first part of the project that consists of 4 phases, TURK LOYDU performs production inspections, installation inspections and inspections on compliance to technical specifications in connection with the international terminal building, port buildings, ATC tower, statesmen guest house, entrance gate and all roof and facade systems of the airport mosque.

In 2018, our organization inspected load-bearing steel works of the terminal building facade, roof and facade works of terminal building, port 1, port 2, port 3, port 4, port 5, ATC tower, statesmen guest house, entrance gate and airport mosque and works will be continued in 2019.

Known as one of the largest projects of our Republic’s history, Istanbul New Airport is designed and implemented as a model-setting project with ground-breaking innovations not only for Turkey but the rest of the world.

Employer IGA Consortium

Location Istanbul, Turkey

Scope of Inspections Third Party Inspection of Steel Roofand Facade

Period 2016 - ongoing

Inspection Standard EN 1090-2 EXC 3, IGA technical specifications

Investment Cost EUR 22 billion 152 million

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1915 ÇANAKKALE BRIDGE PROJECTMalkara-Canakkale Highway Section including 1915 Canakkale Bridge and access routes will be the longest suspended bridge of the world with approximately 103 kilometres of highway and 2 thousand 23 metres of span. Inspection of a total of 30,000 tons of pile pipes production was performed in accordance with EN 10219 standard. TURK LOYDU inspects the production of 6000 tons of steel structures in accordance with EN 1090-2 standards and EXC3 class and performs conformity assessment of main cable production made in China, in accordance with customer’s technical specifications.

Employer DLSY JV

Location Çanakkale, Turkey

Scope of Inspections Inspection of underwater pile pipes, dry dock pile pipes, shaft, anchorage frame,main cable production

Period 2018 - ongoing

Inspection Standard EN 1090-2 EXC 3, IGA technical specifications

Investment Cost TRY 10 billion 355 million

SPECIFIC DETAILS

NORTHERN MARMARA HIGHWAY PROJECTThe European part of the Northern Marmara Highway Project extending from Akyazi junction to Kinali consists of three sections (Section 1 Kinali-Yassioren, Section 2 Yassioren-Odayeri and Section 3 Habibler-Hasdal). There is a highway of 71 km, access roads of 10 km, junction branches of 91 km, 13 viaducts, 32 bridges, 3 tunnels, 20 overpasses, 36 underpasses and 78 culverts within the scope of the project.

TURK LOYDU performs conformity assessment of prestressed precast beams production, installation and reverse deflection inspections in accordance with Highways Technical Specifications; conformity assessment of steel bridge beam production and installation in accordance with steel structures technical specifications and EXC3 class of EN 1090-2 standard. Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP).

Employer KRP Otoyol İnşaatı

Location Istanbul, Turkey

Scope of Inspections Pre-stressed precast and steel bridge beams

Period 2018

Inspection Standard Highway Technical Specifications, EN1090-2 EXC3

Investment Cost TRY 8 billion

SPECIFIC DETAILS

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ERDEMİR 2nd GALVANIZING LINE PROJECTIn total, 3,000 tons of steel is produced and assembled in the project and conformity assessment is carried out by TURK LOYDU at all stages in accordance with the EN 1090-2 standard EXC-3 class.

Employer Partner Teknik

Location Karadeniz Ereğli, Zonguldak, Turkey

Scope of Inspections Inspections for Technological Steel and Main Building Steel ConstructionProduction and Installation

Period 2016 - ongoing

Project Tonnage 3.000 ton

Inspection Standard EN 1090-2 EXC 3

Investment Cost EUR 50 million

SPECIFIC DETAILS

KÖMÜRHAN BRIDGEThe project consisting of “Cable-Stayed New Komurhan Bridge” and Tunnel production allowing passage over Karakaya Dam Lake (Euphrates River) along Malatya- Elazig State Highway is project for building a new road with 2x2 lanes and total length of 5155 m. This project will allow building of a modern state highway consisting of a new bridge with total length of 660 m and a tunnel with approximate length of 2.4 km in parallel to the existing low-standard road with 1x1 lane (low Kurp diameter, a lot of road bends). The new Kömürhan Bridge within the project will be a “Cable Stayed” bridge as described in the international literature.

The conformity assessment of approximately 20.000 tons of steel production and assembly is performed by TURK LOYDU in accordance with EN 1090-2 EXC.4.

Employer Yüksel Proje

Location Malatya, Turkey

Scope of Inspections Inspections for Technological Steel and Main Building Steel ConstructionProduction and Installation

Period 2016 - ongoing

Project Tonnage 20.000 ton

Inspection Standard EN 1090-2 EXC 4

Investment Cost TRY 200 million

SPECIFIC DETAILS

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GİRESUN ÇOTANAK STADIUM PROJECTGiresun Cotanak Stadium built by TOKİ has a capacity of 22.000 spectators. The project covers a total of 3,500 tons of steel production and assembly’s conformity assessment; steel construction specifications and EN 1090-2 standard are implemented by TURK LOYDU according to EXC-3 class. Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP) specific to the pre-production project. Precast manufacturing inspections are also carried out within the scope of conformity assessment. Onsite installation works are planned to be completed in March 2019.

Location Giresun, Turkey

Employer Siyah Kalem

Ground Grass

Seats Full-scope seat installation

Capacity 33.000

Total Construction Area 120 decare

Construction Period 24 Month

Project Tonnage 3.500 ton

Scope of Inspections

Inspection of Precast Grades, Electrical Installations, HVAC, Concrete structure production and installations in accordance with applicable standards.and ITP

Period 2018 - ongoing

Inspection Standard EN 1090-2 EXC 3

Investment Cost TRY 180 million

SPECIFIC DETAILS

ÇORUM STADIUM PROJECTCorum Stadium built by Corum Municipality has a capacity of 15.000 spectators. The project covers a total of 2,800 tons of steel production and assembly’s conformity assessment; steel construction specifications and EN 1090-2 standard are implemented by TURK LOYDU according to EXC-3 class.

Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP) specific to the pre-production project. Onsite installation works are planned to be completed in April 2019.

Location Çorum, Turkey

Employer Çakır İnşaat

Host Çorum Belediyespor

Ground Grass

Flooring Type Natural Grass

Seats Full-scope seat installation

Capacity 15.000

Total Construction Area 72 decare

Project Tonnage 2.800 ton

Scope of Inspections

WPS-PQRWelder CertificationInspection of steel production and assembly in accordance with the relevant standard and ITP

Period 2018 - ongoing

Inspection Standard EN 1090-2 EXC 3

Cost TRY 80 million

SPECIFIC DETAILS

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ADANA STADIUM PROJECTAdana Stadium built by TOKİ has a capacity of 33.000 spectators. The project covers a total of 3,500 tons of steel production and assembly inspection services; steel construction technical specifications and EN 1090-2 standard are implemented by TURK LOYDU according to EXC-3 class. Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP) specific to the pre-production project.

Employer Alkataş - Ilgazlar

Location Adana, Turkey

Ground Natural grass

Seats Full-scope seat installation

Capacity 33.000

Total Construction Area 102 decare

Dimensions 105m x 68m

Handicapped Tribune Available

Camera System Available

Construction Period 18 Months

Project Tonnage 3.500 ton

Scope of Inspections Inspection of steel constructionproduction and assembly

Period 2018 - ongoing

Inspection Standard EN 1090-2 EXC 3

Cost TRY 106 million

SPECIFIC DETAILS

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HATAY STADIUM PROJECTHatay Stadium built by TOKİ has a capacity of 25.000 spectators. The project covers a total of 2,700 tons of steel production and assembly’s conformity assessment; steel construction specifications and EN 1090-2 standard are implemented by TURK LOYDU according to EXC-3 class. Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP) specific to the pre-production project. Onsite installation works are planned to be completed in June 2019.

Employer Sertka İnşaat

Location Hatay, Turkey

Ground Grass

Flooring Type Natural Grass

Seats Full-scope seat installation

Capacity 25.000

Total Construction Area 160 decare

Construction Period 18 month

Project Tonnage 2.700 ton

Scope of Inspections

WPS-PQR, Welder CertificationInspection of steel production and assembly in accordance with the relevant standard and ITP

Period 2018 - ongoing

Inspection Standard EN 1090-2 EXC 3

Cost TRY 118 million

SPECIFIC DETAILS

Employer Bakırküre

Location Izmit, Turkey

Scope of InspectionsInspection of steel construction production and assembly

Period 2018 - ongoing

Project Tonnage 1.100 ton

Inspection Standard EN 1090-2 EXC 3

SPECIFIC DETAILSAUTOLIV PROJECT SPECIFIC DETAILSTURK LOYDU performs inspections of steel structure production and installations of the new facilities built in a total area of 31900 sqm in TOSB by Autoliv, a Swiss automotive safety systems producer that is one of the largest in the world, in accordance with technical specifications for steel structures and EN 1090-2 standard, EXC3 class.

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In Turkey and EU countries, it is mandatory to offer “CE” marked products to the market in accordance with 305/2011/EU Construction Products Regulation applicable in the field of building materials. Organizations should establish a factory production control system in line with the applicable standard and manufacture products in accordance with this system, and they should be certified by a Notified Body in order to offer CE-marked products to the market. Certified organizations can demonstrate that their products are safe and manufactured in accordance with the applicable harmonized standard.

Manufacturers producing structural metal products and auxiliary members are subject to conformity assessment by the Notified Body in accordance with the applicable harmonized standard. In the event of conformity, a Factory Production Control (FPC) certificate is issued and the manufacturer is permitted to use CE mark.

The certification bodies should be authorized as Notified Bodies in accordance with 305/2011/EU Construction Products Regulation and published on the EU official website (NANDO) and must be authorized as an accredited organization in accordance with EN ISO/IEC 17065 standard.

TURK LOYDU was published as Notified Body in the EU official website (NANDO) under the identification no. 1785 in accordance with 305/2011/EU Construction Products Regulation, and it is TURKAK Accredited Organization in accordance with EN ISO/IEC 17065 standard and it performs Factory Production Control Certification activities for steel and aluminium structure manufacturers, steel profile producers, welding consumables, mechanical fasteners, rolled steel plate manufacturers, with its experienced and competent staff members.

BUILDING MATERIALS (305/2011/EU Construction Products Regulation)

1785

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Certified organizations can be found at:

http://www.turkloydu.org/tr-tr/musteri-bilgilendirme-sistemi/belge-sorgulama/yap%C4%B1-malzemesi-yonetmeligi-kapsam%C4%B1nda-belge-sorgul.aspx

TURK LOYDU provides Factory Production Control Certification service for the products and standards specified in the table below in accordance with 305/2011/EU Construction Products Regulation.

305/2011/EU Construction Products Regulation

Product Standard

Structural metallic products and ancillaries :Structural metallic sections/profiles: hot rolled, cold formed or otherwise produced sections/profiles with various shapes (T, L, H, U, Z, I, channels, angle, hollow, tubes), flat products (plate, sheet, strip), bars, castings, forgings made of various metallic materials, unprotected or protected against corrosion by coating (to be used in metal structures or in composite metal and concrete structures).

AVCP system: System 2+

EN 10025-1

EN 10210-1

EN 10219-1

EN 15048-1

EN 15088

Structural metallic products and ancillaries:Structural metallic construction members: finished metallic products such as trusses, girders, columns, stairs, ground piles, bearing piles and sheet piling, cut to size sections designed for certain applications, and rails and sleepers. They can be unprotected or protected against corrosion by coating, welded or not. (for uses in work’s frames and foundations).

AVCP system: System 2+

EN 1090-1+A1

Structural metallic products and ancillaries:Welding materials (for uses in structural metallic works).

AVCP system: System 2+EN 13479

Structural metallic products and ancillaries:Structural connectors: metallic rivets, bolts (nuts and washers) and H.R. bolts (high strength friction grip bolts), studs, screws, railway fasteners (for uses in structural metallic works).

AVCP system: System 2+

EN 14399-1

EN 15085-2 AND ISO 3834 WELDED PRODUCTION CONFORMITY CERTIFICATIONA wide range of products are manufactured in many sectors with welded fastening method. Welding process has an important effect on final product safety, production cost and quality. In the event that the welded manufacturing process and control phases of the organizations are inspected and approved, it is very important to complete the certification process and an important competition advantage is gained when conformity to the relevant requirements is certified.

ISO 3834 standard is prepared for the companies that perform

welded production and described the relevant quality conditions. Organizations with ISO 3834 certification can prove that their welded products meet the quality requirements under international standards. International standards such as EN 15085-2, EN 1090-2 require the application of ISO 3834 standard requirements.

EN 15085 standard defines the welding process of railway vehicles and components and the EN 15085-2 certification of the production, repair and revision of railway vehicles and components shows that their welded production meets the requirements specified in international standards. Certification bodies providing certification services under ISO 3834 and EN 15085-2 standards should be authorized as

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accredited certification bodies in accordance with ISO/ IEC 17065 standard. TURK LOYDU has been recognized as Accredited Certification Body by TURKAK in accordance with ISO/IEC 17065 standard and it performs certification

activities in accordance with EN 15085-2 and ISO 3834 series standards. TURK LOYDU performs certification services for products listed in the table below, in accordance with ISO 3834 and EN 15085-2 standards.

Certified organizations can be found at:

https://turkloydu.org/tr-tr/musteri-bilgilendirme-sistemi/belge-sorgulama/iso-3834-belgesi-sorgulama.aspxhttps://turkloydu.org/tr-tr/musteri-bilgilendirme-sistemi/belge-sorgulama/en-15085-belgesi-sorgulama.aspx

Product Standard

Quality requirements for the fusion welding of metallic materials - Part 2: Comprehensive quality requirements

Quality requirements for the fusion welding metallic materials - Part 3: Standard quality requirements

Quality requirements for fusion welding of metallic materials - Part 4: Elementary quality requirements

EN ISO 3834-2

EN ISO 3834-3

EN ISO 3834-4

Railway applications - Welding of railway vehicles and components - Part 2: Quality requirements and certification of welding manufacturer

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AD 2000 MERKBLATT HP0, AD 2000 MERKBLATT W0 AUTHORIZED MANUFACTURER CERTIFICATIONAD 2000 Merkblatt is an improved standard for the design and manufacture of pressure equipment. It covers assessment of technical documents, test reports, operating and testing procedures, and inspection of plant conformity and adequacy, definition and traceability, personnel competence and conformity, proper performance of the necessary tests and inspections, conformity of the equipment, raw materials and consumables used.

Certified organizations gain advantages in terms of product safety, customer satisfaction, preferability and competitive power in the local and global markets.

TURK LOYDU provides HP0 services for products and W0 certification services for product components within the scope of AD 2000 Merkblatt.

In 2018, services were provided to Gedik Döküm ve Vana San. Tic. A.Ş., Edkosan Çelik Dövme San. ve Tic. Ltd. Şti., Öztürk Model Döküm Metal Makine Sanayi İthalat İhracat Tic. Ltd. Şti., Ankasan Makine Model Döküm Çelik Konstrüksiyon Sistemleri Nakliye San. ve Tic. Ltd. Şti. ve Faf Döküm San. ve Tic. A.Ş. Certificates are valid for 3 years and periodical inspections are performed on annual basis and new certification audits are performed in the end of 3-year period.

AUTHORIZED MANUFACTURER CERTIFICATIONAn organization proves the competence of plant, personnel, equipment and processes, conformity to quality requirements and performance of production under controlled condition with Authorized Manufacturer Certification.

TURK LOYDU provider Authorized Manufacturer Certification service in order to determine conformity of production places, plants, personnel, machinery-equipment, quality control processes and practices. Authorized Manufacturer Certification verifies qualification of the audited organization’s production, equipment infrastructure and personnel, and shows that quality requirements are met.

In 2018, services were provided to Wenta Isi Teknolojileri A.S., Ozmaksan Isi San. Ve Tic. A.Ş., Selnikel Isıtma ve Klima Cihazları San. A.Ş., Arme Endüstriyel Mekanik Makine San. ve Tic. Ltd. Şti., Teta Krom Çelik Sanayi Ltd. Şti. The validity of the

certificate is 1 year, and the audits are repeated at the end of the

validity period for the purpose of recertification.

INDUSTRIAL PLANT INSPECTION

MAZIDAĞI FERTILIZER PRODUCTION COMPLEX PROJECT

There is a phosphoric acid plant, sulphuric acid plant, ammonia plant, DAP plant and leaching facilities within the scope of Fertilizer Production Complex project build in Mardin Mazıdağı by Eti Bakir A.S.

Completed in 2018, the project will have annual fertilizer production capacity of 750,000 tons, and mineral separation, precious metal extraction and phosphoric and sulfuric acid, ammonia sales will be performed in addition to fertilizer production.

Inspection and conformity assessment and 3rd party inspection services are provided for equipment production, steel and pipe productions within the scope of the project. The project having an investment value of TRY 1 billion 90 million was commenced in July 2015 and when the plant is commissioned, it will have a capacity of producing 437 thousand 760 tons/ year concentrate phosphate; 75 thousand tons/year ammonia; 650 thousand tons/year sulphuric acid, 150 thousand tons/ year phosphoric acid; 325 thousand tons/ year phosphate fertilizer and 690 thousand tons / year pyrite and iron ash.

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ACACIA GÖKIRMAK BAKIR MINE PROJECTGökırmak Copper Mine Project developed by Acacia Maden İşletmeleri A.Ş. is located in Hanonu district, Kastamonu province. Within the scope of Gökırmak Copper Mine Project, it is aimed to start the ore production and to continue the production of concentrated ore in 2019. It is planned to produce 2,000,000 tons of copper ore per year within the scope of the Gökırmak Copper Mine Project. In this context, construction and installation activities of the plant that will operated with modern

equipment, are currently continued. In addition, waste storage facility construction and excavation activities in the quarry area continue as planned. During the total mine life, 1.28 million tonnes of concentrate production is targeted, and the project is planned to last 12 years.

Project specific Inspection and Test Plan is developed and 3rd party inspection services are provided before production and installation of construction works, maps, factory production, equipment, pipe installation and tanks and steel structures.

POWER PLANT INSPECTION

AKKUYU NUCLEAR POWER PLANT PROJECTTurk Loydu Uygunluk Degerlendirme Hizmetleri A.S. obtained “Nuclear Structure Inspection Body Authorization Certificate” on 16.03.2018 in accordance with Turkish Atomic Energy Authority Law No. 2690 and Regulation on Structural Inspection of Nuclear Power Plants. For this purpose, activities related with Akkuyu Nuclear Power Plant Project Western Cargo Terminal are carried out by our organization.

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RISK ASSESSMENTTURK LOYDU will provide the following services within the scope of Safety Report and BKOP inspection/ reporting services in accordance with the Regulation for prevention of major industrial accidents and mitigation their adverse impacts (Seveso Directive).

• Inspection of the classification of hazardous chemicals (in ac-cordance with CLP);• Chemical Exposure assessment (ILO COSH method);• Classification of explosive environment within ATEX and preparation of Explosion Protection Document;• P&ID drawing and controls;• Process Hazard Analysis (HAZOP);• Identification and grouping of dangerous equipment within the process (Dow FEI index);• Safety-based maintenance (RCM) review;• Analysis of Risk Based Inspection methods (RBI);• Investigation of the root cause and result analysis of major acci-dent scenarios with BOW TIE;

• Lopa analysis;• Functional Safety (SIS, SIL, SIF and ESD design);• Inspection of the Safety Management System;• Analysis of results and assessment of Individual and Social Risk (F-N CURVE);• Modelling (Brezee)• Preparation of Safety Report.

PERSONNEL CERTIFICATIONTURK LOYDU generates complete solutions for require-ments of customers with its constantly renewed dynamic structure and professional personnel in parallel with chang-ing design and production standards and ever-evolving tech-nology. In this context, personnel certification services are provided for welded production processes in a wide range of sectors including pressure vessel production, steel structures, energy sector, defence industry, etc.

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TURK LOYDU certified 1784 welders in 2018. TURK LOYDU certified 3020 staff members in total in 2018. The distribution of the last six years is shown in the graph below.

Personnel Certification

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PROFESSIONAL COMPETENCE CERTIFICATIONPursuant to the additional article (1) included in the Law No. 5544 on 23.04.2015, MYK Professional Competence Certification was made mandatory on 26.05.2016 for professions that are dangerous or very dangerous professions and included in the communiques published by the Ministry of Labour and Social Security (now known as, Ministry of Family, Labour and Social Services).

TURK LOYDU Uygunluk Degerlendirme Hizmetleri A.Ş. is an accredited certification body conducting inspection and certification activities in accordance with national requirements of the Vocational Qualifications Authority (MYK).

Exams and certification activities are carried out in our exam centre and customer facilities in connection with the relevant national qualifications.

Metal Sector11UY0014-3 Aluminium Welder11UY0010-3 Steel Welder11UY0016-4 Welding Operator11UY0033-3 Natural Gas Steel Pipe Welder11UY0013-3 Industrial Pipe Fitter

Construction Sector12UY0056-3 Scaffolder11UY0011-3 Timber Mould Worker12UY0054-3 Sheetrock Worker11UY0012-3 Rebar Fitter16UY0253-2 Construction Worker

As a Certification Body Authorized by Vocational Qualifications Authority, TURK LOYDU issued 1236 professional qualification certificates in 2018.

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“Certificates are issued to an average of 3000 persons on annual basis in order to increase employment of qualified and certified labour force, increase the offering of products and services with increased quality, improving the living standards.”

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INDUSTRIAL CERTIFICATION PRESSURE EQUIPMENT

PRESSURE EQUIPMENTBoiler, pressure vessel and industrial product certification activity is carried out for many years within the scope of “Product Certification” that is one of the main branches of our conformity assessment services.

Conformity assessment and certification of products are carried out in accordance with the EU’s new approach directives in case of CE-mark requirements. For product groups or markets where CE marking is not compulsory, “Product Certificate” is issued by implementing TURK LOYDU procedures and guaranteeing the design, production, installation and commissioning processes.

Unless otherwise specified, boilers (steam boilers, hot water boilers, hot oil boilers etc.) are certified according to EN 12953, EN 12952, EN 303, TS 497 standards.

Unless otherwise specified, pressure vessels (LPG, LNG, air, nitrogen, oxygen tanks, etc.) are certified upon inspecting in accordance with AD 2000, EN 13445, ASME Sec.VIII Div. 1 etc. standard.

Main inspection phases for product certification can be summarized as follows:

• Inspection and approval of design and strength calculations• Conformity inspection of materials and certificates• Conformity inspection of welder certificates• Conformity inspection of welding procedure (WPS, PQR) approvals• Intermediate production inspections (inspections for cutting, assembly, welding procedure approvals, size, etc.)

• NDT applications and evaluation in welded joints• Final inspection and hydrostatic pressure testing• Inspection and approval of the product’s technical file• Document issuance

As of July 2016, our authorization within the scope of 2014/68/EU Pressure Equipment Directive was suspended in connection with CE conformity assessment services for pressure equipment. As of 08.06.2018, the Regulation on Authorization has been published again on the Notified Bodies page and at present, our services in this field are maintained without any interruption. In addition, within the scope of cooperation made, π mark conformity assessment services are provided within the scope of Transportable Pressure Equipment Directive (TPED) (2010/35/EU) for which national Approved Body authorization has not been made in our country. Services are provided to Selnikel Isitma ve Klima Cih. San. A.Ş., Cazgır İnşaat Isı Sist. Tic. ve San. A.Ş., Cryocan Basınçlı Kaplar End. Tesisler San. Ve Tic. LTD. ŞTİ., Yakut Kazan Makina İml. ve Müh. San. İth. İhr. Dah. Tic. LTD. ŞTİ., Isı Teknolojisi Makina Sanayi ve Tic. A.Ş., URT Mühendislik Basınçlı Kaplar Mak. San. Tic. Ltd. Şti.

FIRE PROTECTION SYSTEMSThe conformity assessment of the fire protection systems is one of the activities that is gaining importance in industrial and domestic structures, and TURK LOYDU performs conformity assessments in this field as accredited Type A Inspection Body in accordance with ISO/IEC 17020 standard.

Design, hydraulic calculations, installation controls, performance and function tests are performed in accordance with “Regulation on Fire Protection of Buildings” and other applicable standards. “System Approval Certificate” is issued by TURK LOYDU in case the system is found compliant. Systems that are mainly evaluated in the field of fire protection are summarized below:

Hot Steam Plant G Module Assembly Certification Service

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• Water, foam, automatic gas fire extinguishing systems• Smoke evacuation and escape stairs pressurization systems• Detection, alarm, emergency lighting systems• Fire water storage tanks• Evaluation of fire scenarios

A large number of projects were carried out by TURK LOYDU in the field of conformity assessment of fire protection systems in 2018 and some of the prominent ones are listed below:

Turkcell Bilgi İşlem Merkezi, Hilton İzmir, Mercedes BenzTürk A.Ş. fabrikaları, Balıkesir Büyükşehir Belediyesi, İçdaş.

STORAGE TANKSTURK LOYDU performs periodical inspections of produced, installed and serviced tanks within the scope of API 650 and API 653 and new tanks in connection with storage tanks above the ground with its professional staff members under the umbrella of accreditation in accordance with ISO/IEC 17020 standard and “API 650 Authorized Inspection Agency” competence about atmospheric storage tanks above the ground. In the process of design inspections, compliance of storage tanks to API 650 standard is inspected in consideration of earthquake calculation, wind and snow load calculations.

Inspections are carried out by expert planning and control engineers and special Intergraph e-tank computer program is used. Special design analyses are carried out by applying SAP-2000 and ANSYS finite element method.

Inspections performed within the scope of Storage Tank Production Inspections are as follows:

• Material, manufacturing and assembly inspections based on approved project• Inspection of welders’ certificates• Inspection of welding procedure approvals (WPS & PQR)• Inspections during pre-fabrication (bending, etc.) at the factory• Verticality, diameter, ovality inspections of tanks• Visual inspection• Evaluation of NDT applications and reports• Final inspection and tests• Issuance of certificate for the storage tank

In 2018, conformity assessment was performed for 8 storage tanks with capacity varying between 45 m3 and 600 m3. BP Gaz, Kansai Altan are some of the companies that received services.

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RAILWAYTURK LOYDU received “Assessment Organization” authorization for performing certification and assessment activities within the scope of “COTIF, Authorized Operator” for the purpose of assessing international competencies of railway vehicles, from General Directorate of Railway Regulations that operators as National Safety Authority and Sector Regulator under the command of the Ministry of Transportation and Infrastructure.

Upon signing a protocol on 6 February 2018, TURK LOYDU was granted “Designated Body” (De-Bo) authorization for the purpose of evaluating, reporting and certifying railway vehicles in accordance with national requirements. TURK LOYDU is also authorized as “Assessing Entity” for the purpose of conformity assessment in accordance with Uniform Technical Prescriptions prepared by the International

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Intergovernmental Organisation for International Carriage by Rail (OTIF) where our country is also a member. Accordingly, it is foreseen to reduce the dependence on foreign countries in the process of approval of railway vehicles in the upcoming period. At this point, TURK LOYDU will continue to take responsibility for increasing localization in the ”Certification” services that our country needs in strategic sector particularly including the railways.

TURK LOYDU’s Railway ActivitiesIn line with the vision of expanding the scope of services provided by TURK LOYDU within the Industry and Certification Sector, in the recent years, certain efforts are displayed for more than a year for the purpose of showing presence in the railway sector that takes the highest share from the budget of the Ministry of Transport and Infrastructure.

Consultation with both the relevant public authorities and agencies and private companies producing services or products for the railway sector, and effort was made for creating awareness on this matter in order to inform about works and existing services of TURK LOYDU.

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MANAGEMENT SYSTEMS CERTIFICATIONTURK LOYDU provided certification services in many sectors such as chambers of commerce and industry, commodity exchanges, local administrations, education, shipbuilding, maritime, machinery, metal, chemicals, transportation and engineering services in connection with certification of management systems.

Standards used for certification activities in 2018:• ISO 9001 Quality Management System• ISO 14001 Environmental Management System• OHSAS 18001 Occupational Health and Safety Management System• ISO 10002 Customer Satisfaction Management System• ISO 27001 Information Security Management System• ISO 50001 Energy Management System

VERIFICATION OF GREENHOUSE GAS EMISSION REPORTSGreenhouse gas emissions verification works commenced upon adoption of the Regulation on Monitoring Greenhouse Gas Emissions by the Ministry of Environment and Urbanization (CSB). The facilities carrying out the activities listed in the Annex-1 List of the Regulation are obliged to prepare greenhouse gas emission reports and submit them to the Ministry of Environment and Urbanization (MoEU) until 30 April on

annual basis upon verification by verifying entities. Verification was performed for emission reports pertaining to 2015-2016-2017 in this field for which we carry out activities for 2 years. Verification works were carried out in various sectors such as energy, iron-steel, ceramics, lime, cement, glass, chemistry sectors within the scope of our authorization certificate. In addition, verifying entity accreditation was received for green gasses from TURKAK in accordance with TS EN ISO 14065. In 2018, approximately 40 verification reports were submitted by TURK LOYDU to the Ministry of Labour and Urbanization within the scope of voluntary green gas verification works in accordance with ISO 14064. The graph below shows the sectoral breakdown of verification activities.

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Project Density Map by Scope

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ISO 27001 INFORMATION SECURITY MANAGEMENT SYSTEM CERTIFICATIONIn 2018, TURK LOYDU performed certification activities in organizations that are within the scope of Economic Operator Authorization and electricity production, distribution and natural gas distribution companies within the scope of EMRA Licencing regulation for the purpose of ISO 27001 Information Security Management System certification.

ISO 27001 information security management system covers the entire industry from small-scale to big-scale organizations, production to service and public sector to private sector. This standard is required especially in sectors such as energy, finance, health, public, logistics, customs clearance, export, import, telecommunication and information technologies where protection of information is of great importance.

ISO 27001 Certificate is mandatory for EMRA (Energy Market Regulatory Authority) License. In the amendments made by EMRA in the Electricity Market License Regulation, Natural Gas Market License Regulation and Petroleum Market License Regulation upon promulgation in the Official Gazette

No. 29217 of 26.12.20214, ISO 27001 information security management certificate obtained from TURKAK accredited organizations has been made compulsory.

ISO 27001 Certificate facilitates customs clearance procedures. ISO 9001 and ISO 27001 certificates are required for the institutions that will submit Authorized Economic Operator application in accordance with the Regulation on Facilitation of Customs Procedures promulgated in the Official Gazette on 10 January 2013 and amended and promulgated on 21 May 2014.

TOBB CHAMBERS AND COMMODITY EXCHANGES ACCREDITATION SYSTEMChambers / Commodity Exchanges Accreditation System is a model developed in consideration of the system of the British Union of Chambers and Eurochambers including opinions on German Chambers System, within the framework of ARCHIMEDES and collaboration of Eurochambers -TOBB within the scope of “Turkish Chamber Improvement Program” for the purpose of improving service quality of chambers and exchanges under umbrella of The Union of Chambers and Commodity Exchanges of Turkey (TOBB).

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ISO 9001 QUALITY MANAGEMENT SYSTEM CERTIFICATION AT UNIVERSITIES“Higher Education Quality Assurance and Higher Education Quality Committee Regulation” on establishment of a quality assurance system at higher education institutions, internal and external evaluation processes, principles and procedures of working for Higher Education Quality Committee has been promulgated in the Official Gazette No. 30604 of 23.11.2018.

Pursuant to the regulation, higher education institutions are obliged to ensure that the internal and external quality assurance system is created for implementing in its own institutions and internal and external evaluation processes are carried out in line with the principles to be established by the Committee. Higher education institutions have an internal evaluation processes that are integrated with strategic plan, annual performance program and annual report. Higher education institutions that do not have the obligation to prepare these reports carry out all activities including education, research and social contribution activities integrated in accordance with vision, mission and strategic objectives and quality assurance systems.

ISO 9001 Quality Management System that is a very important product and service based standard forming basis to institutionalization and implemented by many organizations today is selected and implemented as model in many universities for internal quality assurance system that must be created as a requirement of ISO 9001 Quality Management System, “Higher Education Quality Assurance and Higher Education Quality Committee Regulation”.

In 2018, TURK LOYDU carried out training and certification activities at universities as was carried out in the previous years.In 2018, services were provided to Gebze Technical University, Hasan Kalyoncu University, Antalya Bilim Universities and Yıldız Technical University, Yıldız Technology Development Zone Technopark in connection with ISO 9001 certification.

PARTICIPATION TO MEETINGS AND TECHNICAL EVENTS

PARTICIPATION TO the 58th GENERAL ASSEMBLY OF CEOC INTERNATIONAL AND TIC COUNCIL 58th CEOC International General Assembly and Technical Committee Meetings were held on 09-12 June 2018 in Lisbon. CEOC International is a non-profit sector organization with 29 independent inspection and certification bodies from 19 countries and TURK LOYDU is one of its members. Industry and Certification Sector Director Ayfer Adıgüzel and Business Development Department’s Director Mehtap Karahallı Özdemir attended the 58th. General Assembly and meetings in addition to approximately 100 delegates representing 30 members from 18 countries. On the first day of the General Assembly, CEOC International members voted in favour of the proposal for merger between CEOC International and IFIA.

On the second day, governing bodies were elected. CEOC and IFIA organizations also including TURK LOYDU, merged

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and established the International Testing Inspection Certification Council (TIC Council). CEOC is an EU-based organization representing the leading companies in the Testing, Inspection and Certification sector, and IFIA is the International Association of Inspection Organizations serving on a global scale. The international TIC Council formed with the merger is expected to be globally influential and lead many organizations that provide independent third-party verification services.

Formed with the merger of IFIA and CEOC - global test and inspection sector organizations- during the extraordinary general assembly organized on 13 December 2018 and attended by Industry and Certification Sector Director Ayfer Adıgüzel and Foreign Relations Manager Mehmet Avcı, Brussels based TIC Council, will be the voice of more than 90 member companies and organizations operating in the field of test, inspection and certification at global scale.

PARTICIPATION TO the 5th INTERNATIONAL NUCLEAR POWER PLANT SUMMIT AND FAIRTURK LOYDU and TÜV NORD Germany participated in

the 5th International Nuclear Power Plant Summit and Fair held on 6-7 March 2018 at Pullman Istanbul Convention Centre. Prominent names in nuclear industry worldwide as well as TURK LOYDU and TUV NORD Germany- strategic partners in nuclear energy- participated in the summit with a stand they opened for promotion.

Organized by Nuclear Engineers Associations, the Summit brought Turkish companies together with nearly 100 companies steering the nuclear industry from countries such as South Korea, France, Germany, Russia, Japan, China and Finland and it served as a platform to develop commercial collaborations and share the latest technological developments. The 5th International Nuclear Power Plants Summit and Fair was also attended by the international companies operating reactors and building power plants and organizations that want to take a role in nuclear projects in Turkey, the Middle East and Africa. Throughout the event, Turkish firms became acquainted with opportunities related to nuclear industry through the Nuclear Trade Matching Platform.

The event started with opening speeches of Dr. Erol Cubukcu, Chairman of Nuclear Engineers Association and the President

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of the International Nuclear Power Plants Summit; Jonathan Cobb, Senior Communication Manager of the World Nuclear Association; Henri Paillere, OECD Nuclear Development Unit President and Aykut Tor, Project Manager at Ronesans Industry Facilities Nuclear Department. In the fair venue of the event, TURK LOYDU opened a joint stand together with TUV Nord that is a strategic partner in nuclear energy, and provided information to visitors on conformity assessment activities that are aimed at guaranteeing quality, occupational safety, rules, standards and regulations, conformity of products, systems and facilities in accordance with the legislation for the purpose of ensuring safety of nuclear plants and assuring criteria specified in the relevant specifications.

PARTICIPATION TO HIGHWAYS, BRIDGES AND TUNNELS FAIRHighways, Bridges and Tunnels Fair organized for the third time this year by Turkish National Committee of Roads that provides communication and cooperation between public ins-titutions, private sector and universities, was held in Istanbul Congress Centre on 03-06 October 2018.

To bring together the stakeholders of the road transport sector and to share information on projects, this year 160 companiesand more than 7,000 visitors attended the fair organized by the Ministry of Transport and Infrastructure, with the technical support of the General Directorate of Highways and the Inter-national Roads Federation. TURK LOYDU’s participated the fair by opening a stand and visitors were informed about TURK LOYDU and its activities.

PARTICIPATION TO SAHA ISTANBUL DEFENCE AEROSPACE CLUSTER ASSOCIATION’S COMMITTEE MEETINGS

Taking the ideal of increasing national production capabilities and capacity as a start point, in 2018, we attended meetings of Test and Certification Committee and Test and Certification Sub-Committee (AS 9100 Certification) as a member of SAHA Istanbul-

Defence and Aerospace Cluster Association- largest cluster of Turkey founded with the initiative of 27 founders on March

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2015 for the purpose of steering, providing information to and guiding companies in aerospace industry and accommodating 308 member companies and 11 universities today.

PARTICIPATION TO SAHA EXPO FAIRTURK LOYDU participated in SAHA EXPO 2018 Defence and Aerospace Industry Fair held on 13-15 September 2018 at Istanbul Expo Centre.

Planned to be organized biannually starting from 2018 under management and responsibility of SAHA Istanbul Defence and Aerospace Cluster Association, SAHA Expo 2018 Defence and Aerospace Industry Fair showed as a platform to showcase products of companies designing, developing

and producing the most contemporary platform sub-systems and components that will be used in the defence, maritime and aerospace industry. Participated by 135 companies, the fair received great interest from visitors.

PARTICIPATION TO TUCSAMARK TECHNICAL COMMITTEE MEETINGS AND GENERAL ASSEMBLY The presentation of TUCSAMark V4 Certification Model for which works were carried out for one year was made to TUCSA General Assembly members on 15 February 2018. TUCSAMARK was created as an integrated management system model that performs quality, environment, HSE, process, HR and capacity adequacy measurement of steel designers, manufacturers and all contractors in the supply chain. The auditors of our company will participate in this project with the cooperation agreement signed with TUCSA and they will provide access to all stakeholders in the steel industry in addition to commercial advantages.

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In 2018, TURK LOYDU continued with training services performed in consideration of the requirements of sectors (Maritime, Ship and Yacht Building, Production, Energy, Transportation, Logistics, Defence Industry, etc.) where we offer services, by adding new training subjects.

TURK LOYDU aims to be a pioneer in the trainings for the sectors in which it operates, by combining its ability to offer innovative trainings and make sectoral collaborations.

Our trainings are planned as open trainingsopen to general participation trainings organized upon request of companies and organizations and trainings organized upon request of trainings can be listed in 5 groups.

1.Management System Trainings2.Maritime Trainings3.Transportation/Logistics Training (including DGSA-Dangerous Goods Safety Advisor- and trainings within the scope of IMDG Code)4. Trainings on Industrial Activities5. Trainings for Institutional and Individual Development

Our trainings are provided by professional and experienced instructors and training curriculum is constantly improved and developed with feedbacks received after trainings. At the end of our training, TURK LOYDU gives a certificate of achievement or participation. For some trainings (TMGD trainings, trainings under IMDG code, and Maritime Surveillance Officer Trainings), completion certificates are issued.

TRAINING SERVICES

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TURK LOYDU; is capable of solving training requirements of stakeholder sectors by offering ideal conditions with 5 training rooms including one room with computers, and a Conference Room. Trainings were provided under 59 different titles in 2018.

Total number of trainings provided: 97 trainings Total Training Participants: 1.319 persons

NEW TRAINING TOPICS IN 2018 In the sectors in which we provide services, we aim to increase the diversity of the trainings provided by taking into account the new trainings that may be needed within the framework of new developments, and especially in 2018, new trainings were planned and provided on management systems, industrial, transportation, logistics and maritime, institutional and individual development fields.

An important part of our vocational and technical training activities, we provide information to KOSGEB member companies for taking KOSGEB aids into consideration in connection with out trainings. The relevant information about the subject is posted on our website.

NEW TRAININGS IN 2018

Management Systems • ISO 45001: 2018 Occupational Health and Safety Management System Trainings (Information, Internal Auditor, Standard Transition)• AS 9100: 2016 Quality Training for Aerospace and Defence Industry Organizations (Information, Internal Auditor, Revision Transition, Documentation and Implementation)• IRCA approved ISO 50001: 2011 Energy MS Lead Auditor Training

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• EN ISO / IEC 17065 Conformity Assessment- Information Training on Conditions for Product, Process and Service Certifying Bodies

Industrial Activities • Trainings within the scope of calibration applications (General Metrology; Measurement Uncertainty; Calibration of Pressure Gauges and Pressure Transducers, Calibration of Temperature Gauges, Calibration of Weighing Instruments)• ISO 14046 Water Footprint; Principles, Requirements and Guidance and Documentation Training• Iron-Steel Scrap Quality and Standards Information Training

Transportation/ Logistics/ Maritime Activities• Awareness Training on Lashing and Securing of Materials and Equipment in Ships• Information Training on International Convention on Safe Containers (CSC Code) • Training on Stability of Military Ships

MARITIME SURVEILLANCE OFFICERTURK LOYDU; obtained “Maritime Surveillance Officer Training Organization Authorization Certificate” on 25 September 2017 in addition to IMDG Code Trainings Organization Authorization Certificate obtained in 2011 and DGSA Trainings Authorization Certificate obtained in 2014, it is capable of providing all “Maritime Surveillance Officer Trainings” within the scope of the applicable Directive (Directive on Authorization of Surveillance Companies that Offer Surveillance Services on Dangerous Cargo- amended with Minister Approval No. 57300 on 13 July 2017) in addition to trainings within the scope of IMDG Code.

The aforementioned directive came into force in 2017 and the relevant training organizations and interested parties were informed that the relevant directive will be reviewed and revised with the announcement made on 27.12.2017 by the Ministry. Maritime Surveillance Officer trainings within the scope of carrying dangerous goods could not be offered as directive revisions are not completed. As TURK LOYDU, we planned and carried out the following trainings for the relevant employees of the transport and surveillance companies that were started independently from these trainings.

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• IMDG Code General Awareness and Function-specific Trainings and Refresher Trainings• Draft Survey Calculation Information Training• Loading Safety, Safe Stowing and Lashing Calculations Training in Road and Sea Transportation• Training of Code of Practice for Packing of Cargo Transport Units (CTU Code) • Training on the Safe Execution of Fumigation Operations within the Scope of CTU Code• Bulk Cargo Sampling and Preparation Training• Transport and Marine Insurance Losses Training

DANGEROUS GOODS SAFETY ADVISER (DGSA) TRAININGSDangerous Goods Safety Adviser Trainings are carried out within the scope of the authorization certificate received from the Ministry of Transport, Maritime Affairs and Communications (now called Ministry of Transport and Infrastructure) in 2014. DGSA Communique published on 22.05.2014 has been amended by the Official Gazette of 19.04.2017. These amendments are fundamental amendments and substantial amendments were made on matters such as such as condition of being DGSA, training hours and serving as DGSA. Training and examination rights of DGSAs and DGSA candidates other than science and engineering areas are still continuing except for science and engineering graduates who received DGSA training before 19.04.2017, have right to take exam or completed the training.

This communique provides that organizations taking a role in the chain of dangerous goods transport, shipping, packaging, loading, filling and discharging such goods and transportation companies are obliged to employ at least one “Dangerous Goods Safety Adviser” (DGSA) or receive services from Dangerous Goods Safety Advisory Organization (DGSAO) by specifying temporary exemptions and deadlines. The obligation to recruit DGSA or receive services has been put into effect as of 30 June 2015 for many relevant organizations within the scope of the legislation.

Pursuant to the first four paragraphs of the Provisional Article the aforementioned Communiqué, it became mandatory for the enterprises that are included in the scope of the above-mentioned scope to employ DGSA or receive DGSA service from a DGSAO as of 1 January 2018.(1) Stations dealing with retail sales of fuel, LPG, CNG and LNG stations, as well as enterprises selling LPG and CNG tubes;(2) Port facilities engaged in activities related to the transport and temporary storage of dangerous goods,(3) Transport of Dangerous Goods by Road with Transport Authorization Certificate according to the Road Transport RegulationTransport companies only carrying out transportation within the scope of the Regulation, (4) Public institutions and organizations.Discounts are provided to Chamber members in connection with training fees under the protocols previously made with members of UCTEA Chamber of Chemical Engineers, UCTEA Chamber of Environmental Engineers and UCTEA Chamber of Naval Architects and Marine Engineers. In 2019, protocols will be made with the other Chambers and Associations that can request for similar discount conditions for their members.

TRAINING ORGANIZEDDGSA Training within the scope of ADR (64 hours)• 8 hours per week, training period of 8 days including weekends and working hours (pursuant to amendment in the communique, receivers of DGSA Training within the scope of ADR are obliged to receive theoretical and practical fire training of 8 hour in addition to DGSA Training. In this case, total training period is 9 days.)• Training period of at least 13-14 days in total, 8 hours out of working hours between 5 p.m. or 6 p.m. And 9 p.m., and at weekends (4 days).

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Dangerous Goods Safety Adviser (DGSA) Training within the scope of IMDG Code and RID (42 hours)This training is organized for those who have received DGSA Training within the scope of ADR. The training is provided for both transport modes (sea and railway) as an additional training of 21 hours. Training duration is at least 6 days in total. After the training, it is necessary to take DGSA certification exams which are held for both modes of transport, similar to the DGSA Certification exams organized by the Ministry of Transport and Infrastructure (UDHB). The prerequisite for participating in the IMDG Code and the DGSA Certification Exam under the RID is to receive DGSA Training under the code of IMDG Code and RID and DGSA Certificate under ADR.

Dangerous Goods Safety Adviser (DGSA) Refresher Trainings (16 hours for each of ADR, IMDG Code and RID)Pursuant to Article 21 of the Communique on Dangerous Foods Safety Consultancy that was promulgated in the Official Gazette No. 29007 of 25.05.2014 and amended with the Official Gazette No. 30043 of 19.04.2017, Refresher Trainings of Dangerous Goods Safety Adviser (DGSA) should be started from 01.01.2019 in accordance with paragraph 6, temporary article 2 under the same Communique.

The following points are expected to be taken into account in the implementation of refreshment trainings.

• DGSA Refresher trainings will be given by the training institutions authorized by the Ministry (UAB) to give DGSA training.• Refresher training will cover national legislation and ADR, RID and IMDG Code amendments.• All DGSAs will be required to receive training in the year during which new version of ADR, RID and IMDG Code Agreements are released (i.e., 01.01.2019- 31.12.2019 for ADR and RID and 01.01.2020-31.01.2020 for IMDG Code).• DGSAs who do not receive DGSA Refresher training within the required time period will not be able to take the DGSA Certificate renewal exams. In accordance with the Communiqué, candidates who do not receive refresher training are required to take DGSA Training again after the certificate expiry date and take DGSA Exam.• DGSA refresher trainings should be received before the end of the DGSA certificate validity period (five years) and DGSA certification renewal exams taken (as well as the

current DGSA exams) must be passed successfully. DGSAs should plan to take the renewal examinations by taking into consideration the certificate renewal rights granted to them.• DGSAs will not be required to receive refresher training for the ADR, RID and IMDG Code Agreements valid for the year in which they are trained. Refresher trainings of the TMGDs will start from the year of publication of the relevant agreement or the next version of the code.• In the year of the publication of the new version of the ADR, RID and IMDG Code applicants whose certificate period has expired will have to take the refresher training for that year before entering the renewal exam.

Other trainings within the scope of transportation/ logistics in connection with Transportation of Dangerous Goods are described below. Some of these trainings are open to general participation or provided to organizations and institutions upon request. A part of these trainings is offered to organizations and institutions solely upon request.

• Information on Transportation of Class 1 (ADR/ IMDG Code/ RID) Explosive Substances• Information on Transportation of Radioactive Substances (ADR/ IMDG Code/ RID) • Loading Safety in Road and Sea Transportation• Information Training on EN 12798: 2007 Road, Rail and Domestic Sea Transportation - Quality Management System Requirements for Completing ISO 9001 for Safety in Transport of Dangerous Goods.

CHEMICAL EVALUATION EXPERT (CEE) TRAININGSApproval of the training program was obtained with the letter dated 03.12.2018 that was issued the Ministry of Environment and Urbanization for the purpose of organizing Chemical Evaluation Expert Trainings.

Pursuant to the Regulation on Registration, Evaluation, Permission and Restriction of Chemicals that was promulgated on 23 June 2017 by the Ministry of Environment and Urbanization and entered into force on 23 December 2017 (KKDIK Regulation), activities such as Chemical Safety Evaluation, issuance of Chemical Safety Report (CSR) and Safety Data Sheet (SDS) is performed by Chemical Evaluation Experts (CEE). In addition, the files prepared for the registration of chemical substances should also be examined by the CEE.

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Persons who received training on training subjects specified in Annex 18 to KKDIK Regulation and competence certificate from an organization accredited by TURKAK for the purpose of certification of personnel about CEE, and persons who worked for at least 10 years in connection with the management of chemicals at the Ministry (Ministry of Environment and Urbanization) are defined as “CEE” under the Regulation.

A Chemical Evaluation Expert is expected to make the following evaluations:• Physical and chemical hazard evaluation, • Evaluation of hazards to human health,• Environmental hazard evaluation,• Evaluation of persistent, bioaccumulative, toxic or very persistent, very bioaccumulative properties of chemicals,• Evaluation of exposure to chemicals,• Risk assessment and characterization

Those who want to take the CEE certification exam to be conducted by an institution accredited by TURKAK after the training, should meet the following conditions as first priority provided that they receive CEE Education for 64 hours.a) Degree from undergraduate departments/ programs of Science/ Science and Literature Faculties or Engineering Faculties related with chemistry, biology or environmental sciences; or b) master’s or doctoral degree on chemistry; or c) Degree from other undergraduate departments of universities and proof on 5 years of experience in the production, quality control or chemicals management.

Curriculum of 64-Hour CEE Training• Management of Chemicals• Regulation on Classification, Labelling and Packaging of Materials and Mixtures• Transportation and Storage of Dangerous Goods• Occupational Health and Safety• Registration, Evaluation, Permission and Restriction of Chemicals• Classification of substances and mixtures; - by physical and chemical properties; - by toxicological properties, - by ecotoxicological properties.• Chemicals - risk assessment about human health • Chemicals - environmental risk assessment• Exposure scenarios• Chemical Safety Evaluation (CSE),• Chemical Safety Report (CSR),

• Requirements for the preparation of a safety data sheet (SDS)• Preparation of the registration file

ONGOING TRAININGS2018, an informal training program was made for Chambers and Commodity Exchanges operating under of Turkey Union of Chambers and Commodity Exchanges. Trainings were provided on many management systems (ISO 10002, ISO 14001, ISO/IEC 27001 etc.) particularly including ISO 9001:2015 Quality Management System. In addition, our industrial trainings, maritime trainings, trainings in the fields of transportation and logistics have also attracted great attention from the sectors and participants for which we offer various services.

General information about ongoing trainings is provided below:

Training Seminars Under IMDG CodeTraining seminars we commenced as of 17 September 2011 as Authorized Body were continued in 2018 in accordance with “Regulation on Training and Certification within the scope of the International Maritime Dangerous Goods Code” that was amended and promulgated in the Official Gazette No. 29601 of 22 January 2016 by the Ministry of Transportation, Maritime and Communication.

Trainings we organize within the scope of IMDG Code are classified in three different groups. Refreshment Training Seminars within the scope of IMDG Code that were commenced in 2013, are continuing. Employees subject to the Regulation and previously received IMDG Code General Awareness and Function-specific Trainings must attend the Refreshment Training Seminars under the IMDG Code before expiry of two years pursuant to the applicable legislation.

1. IMDG Code General Awareness Training Seminar (1 day)

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2. IMDG Code Function-specific Training Seminar (3 days)3. IMDG Code Refreshment Training Seminar (1.5 days)

IMDG Code General Awareness and Function-specific Trainings must be received together and their duration is 4 days. The Regulation defined a training headline including the subjects within the scope of previous Function-specific Training under the headline of Safety Training specified in the legislation enacted in accordance with IMDG Code version 37-14. Safety Training is provided within the scope of IMDG Code Function-specific Training.

Training on Management Systems• Information/basic and internal auditor trainings about ISO 9001 Quality MS (Management System, ISO 14001 Environmental MS, OHSAS 18001 Occupational Health and Safety MS, ISO 45001 Occupational Health and Safety Management System, ISO 10002 Customer Satisfaction Management System, and the Integrated Management System trainings consisting of certain combinations of these standards• ”Process Management and Improvement“ trainings• ISO 50001 Energy Management Systems Information and Internal Auditor Trainings• ISO/IEC 27001 Information Security Management System Information and Internal Auditor Trainings• ISO/IEC 20000 Information Technologies- Service

Management System Information TrainingInformation and Internal Auditor trainings were provided in 2018 within the scope of the standard revision trainings and 2015 standards as the standard within the scope of ISO 9001 and ISO 14001 were revised in 2015. Similarly, information, internal auditor trainings, integrated management systems trainings were provided within the scope of ISO 45001: 2018 standard that was released in 2018 for amendment of OHSAS 18001 OHSMS standard.

Trainings on Industrial Activities • Explosion Protection Document Preparation Training• General Awareness Training on Explosion Protection• Information Training on Degasification and Gas Measurement Techniques• Information on Iron-Steel Scrap Quality and Standards• Information Training on ISO 14064 Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals• Information on Regulation on Pressure Equipment (PED - 2014/68/ EU) and Regulation on Simple Pressure Vessels (SPVD 2104/29/ EU)• Transportable Pressure Equipment Regulation (TPED- 2010/35 / EU)• EN 1090-2: 2018 Transition Training in Steel Structures• EN 1090-2: 2018 Practitioner Training and Performance Statement for Steel Structures, WPS / PQR Workshop• Information Training on Application of Tests for Pressure Vessels• Occupational Health and Safety trainings• Information Training on Occupational Health and Safety in Shipyards• Information Training on Occupational Health and Safety for Working in Confined Spaces• Information on Safe Installation of Scaffolding and Safe Working on Scaffolding- Theoretical Training• Applied General Fire Training• Permit for Working at Height• Emergency Response Team Training and Emergency Evacuation Practice

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TRAININGS FOR WELDING TECHNOLOGY AND APPLICATIONS• Refreshment trainings with theoretical and practical sessions considering the relevant standards and organized upon request of companies in connection with various fastening/ welding technologies (Plastic Welding, Electrical Arc Welding, Inert Gas Welding, TIG Welding, Oxy-Acetylene Welding, Hard and Soft Soldering, etc.)• EN ISO 14731 Information Training on Welding Coordination, Tasks and Responsibilities.• ISO 3834 Series Standard Trainings on Quality Requirements for Fusion Welding of Metallic Materials• Information Training on Welding Faults and Inspection• Training on Preparation and Approval of Welding Plans (WPS)

In addition to trainings described above, Hasan Habiboglu, one of our surveyors, made a presentation on 23 October 2018 in Prof. Dr. Teoman Özalp Conference Hall in connection with “welding operations, welding procedures, non-destructive and destructive testing methods for welding production, classification practices” for students taking “Ship Production Methods” in undergraduate program of the Faculty of Naval Architecture and Ocean Engineering at the İTÜ, as was done in the previous years.

TRAININGS FOR MARITIME AND SHIP BUILDING, MAINTENANCE AND REPAIR INDUSTRY• International Safety Management System (ISM Code) Auditor training: ISM Code Auditor Training is one of the criteria of DPA designation and it is a 2-day training provided by Turk Loydu since 2009.• Training on “MARPOL International Convention on the Prevention of Marine Pollution by Ships“ The training designed for the ship operators was improved for the ports and marine terminals.

• MLC, 2006 (ILO Maritime Labour Convention, 2006) trainings: These trainings were included among our general trainings from the beginning of 2011. It is foreseen that this training will receive interest in the upcoming periods.• International Conventions / Codes / Standards Training for Marine Terminals• Market Surveillance and Inspection of Products within the scope of the Recreational Craft Directive• Information and Practices on Ship Energy Efficiency Management Plan

In 2019, it is planned to organize a series of general or company-specific trainings on requirements of ship operators particularly including tanker and bunker operators, within the scope of international collaboration. Trainings that will be planned in 2019 are provided below. These trainings will be provided in English.

• BMSA Awareness, the RIGHTSHIP Perspective• Communication, Diversity & Teambuilding• Cyber-Security• Emergency Procedures and Response• Garbage Management Plan (GMP)• Incident Investigation and Root Cause Analysis• Management of Change• Management of Resources and Personnel• Management, Leadership & Accountability• Media Response Training• Navigational Audits• Preparation for PSC Inspections and Recommendations to Avoid Detainable Deficiencies• Presentation, Communication & Negotiating Skills• Reflective Training, Learning from Incidents (LFI) and Learning Engagement Tool (LET)• Risk Assessment & Risk Management

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• Ship Energy Efficiency Management (SEEMP)• Monitoring, Reporting and Verification (MRV) of CO2 emissions• Vetting Inspections (Bulkers) – as per Rightship Requirements (Vessel)• Vetting Inspections (Tankers) – as per VIQ / SIRE Requirements• TMSA 3 Awareness, the Oil Majors Perspective

TRAININGS/ SEMINARS FOR INSTITUTIONAL AND INDIVIDUAL DEVELOPMENTThese seminars are usually organized upon request and in 2018, they were planned as trainings open to general participation. These seminars were introduced with short presentation of the instructor Mr. Oguz Saygin that was made in a seminar organized with the participation of our shipyards and human resources officers from other relevant companies on 02 March 2018 in GISBIR Conference Hall.

It was observed that these trainings are preferred as trainings specific to companies/ organizations rather than trainings open to general participation. On the other hand, these trainings will be planned to be open to general participation in 2019.

Corporate and Individual Development Trainings” offered for “General Participation” or “Specific to Organizations” are preferred due to positive contribution provided to the performance of executives and employees. Main trainings that can be provided in this scope are listed below:

• Root Cause Analysis• Time management• Motivation and Stress Management

• Process Management and Improvement• Safe Behaviour,• Emotional Intelligence,• Problem Solving and Decision-Making skills• Accurate and Effective Speaking Skills• Change Management• Effective Written Communication at Work• Developing Management and Leadership Skills• Strategic Thinking and Planning Skills• Developing Coaching Skills• Beginner and Intermediate Level Excel Training• Advanced Level Excel Training• Communication Techniques and Skills Training for Institutional Email Correspondence

OFFERING TURK LOYDU TRAINING AND CONFERENCE HALLS FOR USE UPON EXTERNAL REQUESTSOur Training Halls are offered for use within the framework of trainings, courses, meetings and similar other events organized by various organizations, institutions and companies in consideration of the requirements of the sectors where we operate.

• In 2018, our training rooms and conference halls were designated for the use of UCTEA Chamber of Naval Architects and Marine Engineers (Turkish) for software training, technical training and seminars members and students. • Our conference hall and training rooms were designated for the use of meetings and trainings planned in 2018 by the Turkish Ship Industrialists’ Association, Shipyards and other enterprises.

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OVERVIEWTURK LOYDU Foundation was established in 27 February 1962 by UCTEA Chamber of Naval Architects and Marine Engnieers (Turkish), during the first general assembly meeting held in Galata Passenger Hall with the participation of 31 members including delegates of Turkish Union of Insurance and Reinsurance Companies, External Marine Voyages Association, Istanbul Chamber of Industry, Maritime Bank, Eregli Demir ve Celik Fabrikasi T.A.S., Ministry of Trade and Istanbul Technical University.

In the first General Assembly of TURK LOYDU Foundation, Chairman of the Entrepreneurs’ Standing Committee Zeyyad Parlar underlined the importance and duties of Turk Loydu as follows: “Turk Loydu will not be any different than other reputable class societies. TURK LOYDU will be based on two principles. One of them is technique and knowledge and the other one is reliability and impartiality. The principles have been designed accordingly so that the establishment does not deflect from these two ways. TURK LOYDU will endeavour to be the most reliable advisor of insurers, shipowners and motor owners, shipbuilders and repairers, relevant government authorities. TURK LOYDU will be the most favoured stakeholder of these enterprises in connection with technical matters. It will be technical and knowledgeable companion they can trust in case of any problem they may encounter.”

TURK LOYDU Foundation overcame the most important obstacle by becoming “nationally recognized classification society” in 1981 as a result of its efforts made since 60s for becoming a recognized organization.

As the TURK LOYDU Foundation grew, more space was needed for operations and in 1996, the foundation moved from the Tophane building to Tuzla Shipyards Zone. Vision of TURK LOYDU is to become the most favoured classification and certification body in the international arena with the power we take from the rules, information and expertise we generate. For

this purpose, pursuing the objective of technical improvement in maritime and industry, Turk Loydu serves to this objective of foundation with nearly 170 employees and representatives in various parts of the World and Turkey. The position attained today since classification of a small service ship named Camialti is very important for TURK

FOUNDATION ACTIVITIES

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LOYDU. In a period of 55 years, TURK LOYDU achieved an organization with international accreditations, authorization from various flag states, high performance in port state inspection statistics and high-quality standard achieving high ranks in class listings in parallel with the growth and development process.

In parallel with the expansion of the activity area, TURK LOYDU Foundation contributed to scholarships, and increased contributions to conferences and academic events, training of technical staff, and technical works performed in the international platforms for safety of

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life and property, climate change and protection of the environment.

At present, we are carrying out our operations as an effective class society not only in our country but in the region with modern and forward-thinking management staff and employees each having expertise in their respective fields as

well classified ship fleet with nearly 1 million GT and steel structure inspections extending from new built ships to pipelines, refineries, storage tanks, stadiums and suspension bridges.

2018 TURK LOYDU SCHOLARSHIPSIn TURK LOYDU continued with its non-refundable scholarships and educational grants for undergraduate and graduate students studying at higher education institutions. We aim to fulfil our social responsibility by contributing to the areas where we operate and our country’s beneficial human resources through our unrequited scholarship and educational grant supports. Non-refundable scholarships and education aids are provided as monthly scholarships for a period of nine months starting from the beginning (October) until the end of the academic year (June). Non-refundable scholarships were provided for a period of six months in 2018 for 151 students in total that study in undergraduate and graduate programs in the Academic Year of 2017/2018. A decision was made to continue providing Scholarships to 90 students in total for the Academic Year 2018/2019 in accordance with our Scholarship Regulation and scholarships were provided in the last three months of 2018. In the beginning of the Academic Year 2018/2019, applications for vacant undergraduate scholarship positions were accepted within the scope of the Foundation’s Scholarship Regulation and they were accepted from higher education institutions and professional organizations for which scholarship quota was designated. Applications received exceeded double the number of designated scholarship quota and they were evaluated in accordance with Scholarship Regulation. The undergraduate scholarship applications were taken into consideration within the scope of the pre-evaluation criteria, and the required documents were requested for the validation of the information declared by the scholarship candidates. Scholarship applications for the Academic Year 2018/2019 were evaluated and 27 new scholarship students were identified, and scholarships were granted to these students in the last three months of 2018. Our Foundation granted non-refundable scholarship to 115 students in total - 100 undergraduate, 3 graduate and 12 doctoral students- in 3 months (October, November, December) in the beginning of the Academic Year 2018/2019 together with the students for which scholarship was granted in the Academic Year 2017/2018 and it was approved to continue with scholarships in the Academic Year 2018/2019. For graduate and doctoral scholarship student applications, requirements of TURK LOYDU are taken into consideration in connection with rule development, research and development and other operational fields.

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MEETINGS WITH OUR SCHOLARSHIP STUDENTS

Meeting with Graduate Scholarship Students Doctoral and Graduate students who were granted scholarships in the Academic Year of 2017/2018 were invited to the meeting held in our headquarters on 23 February and 9 March 2018. Cem Melikoglu, Chairman of the Foundation; Gursel Yildiz, member of the Foundation’s Scholarship Committee; Hakan Aydogdu, Foundation’s Training Coordinator, and Dr. Bekir Sıtkı Türkmen and Doğan Öztekin, officers from TL Teknik Arge ve Tasarim Ltd. Sti. associated with our Foundation attended the meeting.

In the meetings, information was obtained from graduate scholarship students about their doctoral and academic studies. Information was provided on new matters that are attached importance by TURK LOYDU and considered as a requirement for our country. It was emphasized that all kinds of support will be provided in the national and international industry and software projects during post-doctoral studies.

Opinions and comments share by our esteemed scholarship students who attended the meeting shed a very important light on works and services of TURK LOYDU in the upcoming periods. We attach importance to holding similar meetings with our scholarship students, exchanging opinions with them, providing them opportunity for joint studies and working

together on important projects, considering their contribution to the operations of TURK LOYDU.

Meeting with Scholarship Students in Istanbul Hotel & Convention CentreGraduate and postgraduate students that receives scholarship in the Academic Year of 2016/2017 and 2017/2018 were invited to the meeting held on 20 March 2018 in Dedeman Bostancı Istanbul Hotel & Convention Centre. Approximately 35 scholars attended the meeting. Cem Melikoğlu, Chairman of the Foundation; Dr. Hakan Akyıldız, Chairman of the Foundation’s Scholarship Commission and Foundation’s BoD Member, Gursel Yildiz, Member of Scholarship Committee and Foundation’s BoD Member and executives from TURK LOYDU Uygunluk Degerlendirme Hizmetleri A.S. Associated with our foundation attended the meeting. At the beginning of the meeting, a presentation video was shown about the Foundation. Chairman of the Foundation and Chairman of the Scholarship Commission gave information about the activities of the Foundation in their speeches. After the presentations, the questions, opinions and comments of the scholarship students who attended the meeting were taken and their questions were

answered. The meeting provided an opportunity to provide information on our Foundation, Companies and activities and getting information about each other. It is very important to continue with similar meetings with scholarship students of the Foundation for the purpose of creating mutual collaboration opportunities.

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PARTICIPATION IN EVENTS

10th Anniversary Event of Piri Reis Universityi

Anniversary Event of Piri Reis University that was attended by Cem Melikoğlu, Chairman of the Board of Directors of TURK LOYDU was held on 8 February 2018 in T.C. Piri Reis University. Fatih Çekirge, Gani Müjde and Necati Şaşmaz were the guests of the first session of the panel ‘Sea Love’. The event was completed with the second panel “Marine Profession: How a seaman should be?” during which Metin Kalkavan, Chairman of the Board of Trustees of PRU, Pekin Baran, Chairman of the Board of Directors of Denizcilik A.S., Bülent Bostanoğlu, Retired Full Admiral and Former Commander of Naval Forces, Yalçın Sabancı, Chairman of the Board of Directors of Yasa Denizcilik and R. Yüksel Yıldırım, Chairman of the Board of Directors of Yilport Holding, chat with the students under moderation of the Journalist Abbas Güçlü.

23rd Traditional Solidarity Event of ITU Faculty of Maritime Graduates Social Aid Foundation (DEFAV)

23rd Solidarity Event of ITU Faculty of Maritime Graduates Social Aid Foundation (DEFAV) was organized with extensive participation on 5 May 2018 in Fenerbahce Club’s Faruk Ilgaz Facilities.

The event was attended by Cem Melikoğlu, Chairman of the Board of Directores of TURK LOYDU Foundation, Ferhat Acuner, Member of the Board of Directors of TURK LOYDU Foundation, Suat Hayri Aka, Undersecretary of General Directorate from the Ministry of Transportation, Maritime and Communication, Durmus Unuvar, General Director of Marine Trade, Tamer Kıran, Chairman of the

Board of Directors of IMEAK Chamber of Marine Trade, Hizirreis Deniz, Director of Coastal Safety, Asım İlker Meşe, Chairman of DEFAV, Prof. Oğuz Salim Söğüt, Dean of ITU Faculty of Maritime as well as delegates of marine non-profit organizations and leading companies of the marine sector. Founded in 1995 for the purpose of supporting marine training, seamen and their families and achieved its current position with the aid of supporters in line with training and social objectives, DEFAV also manages the student dormitory in Tuzla campus of ITU Faculty of Maritime.

54th Anniversary of Malta National Day EventConsulate General of Malta celebrated the 54th anniversary of Malta in an event held on 14 September 2018 in Istanbul Hilton Hotel with the support of TURK LOYDU. In the event held with extensive participation, Franklin Aquilina, Consul General of Malta, emphasized the 54th anniversary of Malta.

Cem Melikoglu, Chairman of TURK LOYDU Foundation, made statement about the event and stated that Malta provides support for the recognition of TURK LOYDU by the Europe Union Commission; invites TURK LOYDU to events that are organized within the scope of activities of TURK LOYDU and that they would like to improve collaborations with Malta.

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Franklin Aquilina, Counsel General of Malta, stated that the 54th anniversary of Malta is very important and expressed that there is a long-lasting friendship between Malta and Turkey, and they are willing to improve and maintain this friendship.

160th Anniversary Events of Azerbaijan Caspian Shipping CompanyHosted by Rauf Valiyev, Chairman of Azerbaijan Caspian Shipping Company, 160th Anniversary Events held on 24 October 2018 were attended by Cem Melikoğlu, Chairman of TURK LOYDU and Mehmet Avcı, Foreign Relations Manager.

TURK LOYDU delegates stated that they would like to see that Azerbaijan shows more presence in the world’s seas as a Turkish Company and they will continue supporting Azerbaijan Caspian Shipping Company as TURK LOYDU.

Panama’s 115th National Day Event115th National Day Event of Panama that has the biggest ship register in the World, was held on 28 November 2018 in Istanbul St. Regis Hotel with the support of TURK LOYDU. Hosted by Andres Gregorio Nunezx, Consul of Panama in Istanbul, the night event received great interest of invited attendees. In the event attended by Cem Melikoğlu, Chairman of the Board of Directors, Luftu Savaskan, General Manager, and Mehmet Avcı, Foreign Relations Manager, Consul Nunez delivered a speech and expressed his gratitude to TURK LOYDU in the name of Panama Marine Administration for contributing to this special event and presented a painting representing traditional handicrafts of Panama to TURK LOYDU.

Honorary Class Certificate from TURK LOYDU to Kartal İstimbotuThe ceremony for the delivery of the Kartal İstimbotu to the Turkish Naval Forces for exhibiting as a memorial ship was held on 13 November 2018 at Tuzla Çiçek Shipyard with the participation of TURK LOYDU. Honorary Class Certificate issued by TURK LOYDU was delivered to the ship by Cem Melikoğlu, Chairman of TURK LOYDU Foundation.

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64th Anniversary of the Chamber of Naval Architects and Marine Engineers (Turkish)We participated in events for the 64th Anniversary of the Chamber of Naval Architects and Marine Engineers (Turkish) that were held on 15 December 2018 under the main sponsorship of TURK LOYDU.

Binali Yildirim, Speaker of the Grand National Assembly of Turkey delivered a speech in the event, stated that he is proud of TURK LOYDU’s success in IMO. Binali Yıldırım emphasized that TURK LOYDU is the only class society with rules approved by IMO among other non-IACS member class societies and emphasized that this is very important for the growth of TURK LOYDU.

Cem Melikoğlu, Chairman of TURK LOYDU Foundation, stated that approval of the rules of TURK LOYDU by IMO is a very important development for Turkish Maritime sector and TURK LOYDU, and expressed the righteous pride of being a class society approved by IMO.

Signing Ceremony for the Project on Renewal of Coaster FleetSigning Ceremony for the Project on Renewal of Coaster Fleet was held in WOW Istanbul Hotel with the participation of the Prime Minister Binali Yıldırım and many statesmen as well as Cem Melikoğlu, Chairman of TURK LOYDU, Erkan Dereli, Chairman of Turkish Maritime Federation, Cemalettin Şevli, General Director of TRNC-Turkish Maritime Enterprises, Tamer Kıran, Chairman of IMEAK

Chamber of Marine Trade, Salih Zeki Çakır, IMEAK DTO Council Chairman, Hüseyin Kocabaş, Chairman of KOSDER and other prominent names from the maritime sector.

In the signing ceremony, it was underlined that Project for Renewal of Coaster Fleet is one of the important links of national defence industry’s targets and that it is an important project of strategic importance directly related with our national interests.

3rd Prof. Dr. A. Yücel Odabaşı ColloquiumThe third of the colloquium series organized for Prof. Dr. A. Yucel Odabaşı, the legendary chairman of the TURK LOYDU Foundation who lost his life in 2009, was organized on 15-16 November 2018 in Istanbul Technical University Ayazaga Campus Faculty of Naval Architecture and Ocean Engineering with international participation and presentations, and support of TURK LOYDU. Cem Melikoğlu, Chairman of TURK LOYDU Foundation attended the colloquium on behalf of TURK LOYDU.

PARTICIPATION TO PANELS, SEMINARS AND WORKSHOPS

Workshop on Future Technologies in Merchant Ships

“Workshop on Future Technologies in Merchant Ships” organized by Koç University Maritime Forum (Küdenfor) was

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held in Teknopark İstanbul on 25 January 2018, Cem Melikoğlu, Chairman of the Board of Directors of TURK LOYDU Foundation, made a presentation about “Future of Marine Technologies and 2030/2050 Evolution of Marine Technologies”.

Ship Dismantling Seminar Held in Istanbul Technical University, Faculty of MaritimeSevilay A seminar on “Ship Dismantling” was organized on 18 April 2018 with the contribution of Asli Yaldiz Oztekin, TURK LOYDU Senior Research and Rule Development Engineer, within the scope of postgraduate class “Environmental Management in Maritime” taught by Dr. Sevilay Can in Istanbul Technical University, Faculty of Maritime. Students were provided with current information in connection with ship dismantling and waste reception facilities and applicable international agreements both in Turkey and the world.

3rd International Shipbuilding and Maritime SymposiumWe participated in the 3rd International Shipbuilding and Maritime Symposium (Int-Nam 2018) organized by Yıldız Technical University Faculty of Shipbuilding and Maritime on 24-25 April 2018 and sponsored by TURK LOYDU. Aimed at improving the international collaboration between the industry and academic circles in order to contribute basic global issues related with the environment and energy, in the opening of the 2-day symposium, TURK LOYDU was presented a plaque for its support.

Turkish Shipowners’ Union Technology WorkshopThe Technology Workshop organized by the Turkish Shipowners’ Association took place on April 18, 2018 in Sheraton Grand Ataşehir. During the workshop, Cem Melikoğlu, Chairman of the Board of TURK LOYDU, gave a presentation titled on “Place of IMO and EU in the Technological Development of Sea Transport”.

Cem Melikoğlu focused on organizations creating strategic impacts on maritime sector during his presentation. He pointed out that the United Nations is the most important organization.

Izmir Information Seminar Held by TURK LOYDU and Consulate General of Panama in IzmirConsulate General of Panama that has the biggest ship register

in the world and TURK LOYDU organized a seminar for shipowners, operators and agencies in Izmir. In the seminar held on 4 May 2018 in İzmir Hilton Hotel, information was provided on services, activities and advantages of TURK LOYDU that was designated as authorized entity for survey and certification services of Panama Ship Register, Panama Maritime Administration and Panama in Turkey.

Seminars organized jointly by Panama and TURK LOYDU will be reorganized in Istanbul and some other provinces.

Conference on New Approaches in the Training for Preventing Collision at Sea“Denizde Çatışmayı Önleme Eğitiminde Yeni Yaklaşımlar” Conference on “New Approaches in the Training for Preventing Collision at Sea” was organized on 20 November 2018 under coordination of TURK LOYDU.

In the conference held in the hall of Piri Reis Vocational and Technical Anatolian High School, “NEO-COL Navigation Device for Prevention of Collision at Sea” Erasmus+ KA2 Strategic Partnership in Professional Training Project that is supported by the European Union was introduced with the participation of

TURK LOYDU as well as project partners from Romania, Germany, Spain and Poland. A memo object was presented to Cem Melikoglu, Chairman of TURK LOYDU Foundation, for the support provided to the project.

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Naval Architecture and Marine Engineering Week’18 EventsPanels were organized on International Sulphur Emission Rules and Flue Gas Washing Systems, Ballast Water Treatment Systems and Rules, Electrical Propulsion Systems in the conference room of Piri Reis University’s Preparatory Campus on 12-13-14 December 2018 within the scope of “Marine Engineering Week 18” events organized by the Chamber of Naval Architecture and Marine Engineers (CNAME) under main sponsorship of TURK LOYDU.

Aslı Yaldız Öztekin, Senior Research Rule Development Engineer from TURK LOYDU, and Serdar Seber attended events as panellists. CNAME presented as plaque to TURK LOYDU in the end of the panel.

Royal Institute of Naval Architecture (RINA) Award for TURK LOYDU Scholarship StudentAn article contributed by Savas Sezen, one of the successful scholarship students of TURK LOYDU, was recognized and awarded as the best article by the Royal Institute of Naval Architecture (RINA).

Savaş Sezen received his award for the article “Backstepping Control of Nonlinear Roll Motion for a Trawler with Fin Stabilizer” that was published in 2017 in RINA Magazine, during the RINA General Assembly held on 13 April 2018.

Savaş Sezen, a graduate of the Naval Architecture and Marine Engineering Department at Yıldız Technical University, completed his doctorate studies at the Department of Naval Architecture and Marine Engineering in Istanbul Technical University and started working as research assistant at YTU. Savaş Sezen conducted studies on ship propeller hydrodynamics and hydroacusticity, propulsion systems, fluid mechanics and computational fluid mechanics.

VISITS BY TURK LOYDU

Visit to Cyprus Turkish Coastal Safety and Ship Rescue CompanyCem Melikoğlu, Chairman of the Board of TURK LOYDU Foundation, visited Cemalettin Şevli, the Chairman of the Cyprus Turkish Coastal Safety and Ship Rescue Board at his office on April 3, 2018 and exchanged views on various issues.

Visit by TURK LOYDU Delegation to the Slovak Maritime AdministrationTURK LOYDU delegation, chaired by the TURK LOYDU Foundation Chairman Cem Melikoğlu, visited the Slovak Maritime Administration on August 15, 2018 and came together in Bratislava to assess the recognition application of TURK LOYDU before the European Union and the relevant developments. Mr. Josef Mrkva, President of the Slovak Maritime Administration, and Captain Jan Konecny, Senior State Counselor, expressed during the meeting that they always trusted TURK LOYDU and continued to closely monitor their development and added “as the state of Slovakia, they would strongly continue to support the application of TURK LOYDU filed before the EU”.

Visit to our Embassy in BratislavaThe Embassy of Bratislava in the Slovak Republic, supporting the recognition of TURK LOYDU by the European Union, was visited on August 15, 2018 and appreciations were expressed to the Consul Birey Yılmazsoy for the strong support provided in the diplomatic relations. The visit was attended by TURK LOYDU Foundation President Cem Melikoğlu, Quality Manager Aydın Gürbüz and Foreign Affairs Manager Mehmet Avcı and information was exchanged about possible sectoral employment opportunities

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in Slovakia. The Consul, Mr. Birey Yılmazsoy stated that they monitored the activities of TURK LOYDU with great pride and wished success during the period of EU recognition.

Visit to MaltaTURK LOYDU held senior level meetings in Malta on October 5, 2018 to improve the existing good relations and to discuss new business cooperation opportunities with the State of Malta, a member of the European Union having the largest ship register in Europe. Within the scope of the visit for the Malta Maritime Summit 2018 activities, TURK LOYDU delegation consisting of TURK LOYDU Foundation Chairman of the Board Cem Melikoğlu and Foreign Relations Department Director Mehmet Avcı, had meetings with Malta Minister of Transport and Infrastructure Dr. Ian Borg, the Minister of Energy and Water Resources, Mt. Joe Mizzi, Secretary General of the Union of Maltese Shipowners and Deputy Director of the European Union Shipowners Association, Mr. Lino Vassallo and Turkey’s Ambassador to Malta, Ms. Başak Türkoğlu.

The meeting with Malta Minister of Transport and Infrastructure, Dr. Ian Borg and the ministry officials and Malta Transport manager Mr. Ivan Sammut, was held at the Ministry building. During the meeting, Ian Borg stated that they closely

followed the development of TURK LOYDU and that they would continue to support TURK LOYDU in the process of being recognized within the European Union.

Visit to Azerbaijan Maritime AdministrationTURK LOYDU delegation consisting of TURK LOYDU Foundation Chairman of the Board Cem Melikoğlu and Foreign Relations Department Director Mehmet Avcı visited State Maritime Agency of the Ministry of Transport, Communications and High Technology of the Republic of Azerbaijan on October 25, 2018 and had a meeting with the Undersecretary Gudrat Gurbanov, Deputy Undersecretary Shahlar Mammadov and Department Head Seymur Mirzayev. During the meeting, the issues of cooperation between TURK LOYDU, the authorized organization to serve on the Azerbaijan flag vessels and the cooperation between the Azerbaijan Maritime Administration and the future cooperation issues were assessed.

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VISITS TO TURK LOYDU

Visit to the Association of Maritime Students (DÖDER) Fuat Var, the Chairman of the Board of Maritime Students (DÖDER) and Vice Chairman Şüheda Kaya visited Cem Melikoğlu, Chairman of the Board of TURK LOYDU Foundation and gave information about the studies performed by the association and the projects of 2018.

They thanked TURK LOYDU for their contributions to the 19th National Mermaid Congress, organized by the Association of Maritime Students and among which TURK LOYDU is one of the sponsors.

Visit by IMO World Maritime University (WMU) Students to TURK LOYDUInternational student group proceeding with their master’s degree program in Marine Safety and Environmental Management at the World Maritime University (WMU) in Malmö, Sweden under the control of the International Maritime Organization (IMO), one of the specialized agencies of the United Nations, visited TURK LOYDU on April 10, 2018 within the scope of their Istanbul visit

schedule and received information about our activities.

Visit to TURK LOYDU by the Consul General of Malta, Franklin AquilinaMhe Consul General of Malta, Franklin Aquilina, visited TURK LOYDU on July 24, 2018 and received information about our work. Consul General Aquilina expressed that they supported TURK LOYDU to be recognized by the European Union Commission and specially invited TURK LOYDU to their activities carried out within the scope of TURK LOYDU activities.

Malta, which is a member of the European Union, has registered 2170 international cruise ships representing 5% of the world’s naval trade fleet according to the latest UN UNCTAD data and is ranked in first place among the EU member states in this field.

Visit to America Based International Chamber of Ship Engineers SNAMEMichael Taylor, Business Development Manager of the America Based International the Society of Naval Architects and Marine Engineers (American) (SNAME) and the ITU SNAME team, made a visit to TURK LOYDU and held a meeting with the President of TURK LOYDU Foundation Cem Melikoğlu. During the meeting, information was exchanged with regard to the SNAME structure and members, as well as the activities carried out with the existing members worldwide and the 3rd SNAME Turkey Reunion and wishes were made to be included in a greater number of common projects in the future.

MEETINGS

The 29th Ordinary General Assembly and Sectoral Meeting of the Association of Defense and Aerospace Industry ManufacturersThe 29th Ordinary General Assembly and Sectoral Meeting of the Association of Defense and Aerospace Industry Manufacturers, which TURK LOYDU is a member of was held on April 24, 2018 in Ankara. At the event attended by TURK LOYDU Military Ships Coordinator Erhan Apak as the representative of TURK LOYDU, presentations were made by 11 SASAD members who are platform and system

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manufacturers with regard to sub-systems and components to be included within the scope of localization and nationalization in their short and medium term schedules as well as their present productions.

Turk Loydu Foundation - 62nd Ordinary General AssemblyTURK LOYDU Foundation’s 62nd Ordinary General Assembly was held at TURK LOYDU headquarters Dr. Teoman Özalp Conference Hall on April 26, 2018 with the attendance of the Board of Directors, Sector Representatives and members of the press.

The 62nd Ordinary General Assembly, which started with the welcome speech of the Chairman of the Board of Directors of TURK LOYDU Foundation, Cem Melikoğlu, was completed with presentations of the activities of TURK LOYDU Uygun-luk Değerlendirme Hizmetleri A.Ş. (Conformity Assessment Services Inc.), reading and negotiation of the balance sheet and audit reports, acquittal of the board of directors and board of auditors as well as the presentation, negotiation and approval of the year 2018 budget.

Equasis Editorial Board MeetingThe EQUASIS Ship Information Monitoring System, to which TURK LOYDU is a member, was held on April 27, 2018 in Lisbon. The meeting was hosted by the European Maritime Safety Agency. EQUASIS was founded in 1997 with the aim of providing reliable information to the maritime sector under the leadership of the European Commission and serves as a data bank that is contributed by the main organizations of the international maritime sector. The decisions taken by the Board of Editorials, to which TURK LOYDU has been a member as a data provider since 2010, are of great importance for the management process of the system.

TOBB Accreditation System Auditors Experience Sharing and Information MeetingWithin the scope of TOBB Chamber/Exchange Accreditation System studies, an Auditor Information Meeting was held in Tuzla on September 19-20-21, 2018 with participation of TOBB Accreditation Board Secretary Özge Karatepe and our accredita-tion system auditors.

Mr. Caner Urhan, the Secretary General of Uşak Chamber of Commerce and Industry attended the 2nd day of the meeting provided information regarding the legislation and practices of the Chamber Commerce and Industry and Konya Commodity Exchange Secretary General, Mr. Esat Bilici, attending on the same day, provided information to TURK LOYDU auditors on the issues of Commodity Exchanges.

IMEAK Chamber of Maritime Commerce 2nd Joint Professional Committees Meeting IMEAK Chamber of Maritime Commerce 2nd Joint Professional Committees Meeting was held on December 22, 2018 at the Piri Reis University Deniz Campus.

TURK LOYDU Foundation President Cem Melikoğlu attended the meeting on behalf of TURK LOYDU, chaired by IMEAK Chamber of Maritime Commerce Board of Directors Chairman Mr. Tamer Kıran. At the beginning of the meeting, a copy of the honorary class certificate attracted attention and issued by TURK LOYDU was distributed in the memory of “Kartal” Steamboat, the monument ship where the Great Leader Atatürk gave the first sign of the Turkish War of Independence and the certificate was delivered to the Naval Forces Command last November.

While IMEAK Chamber of Maritime Commerce Board of Directors Chairman Mr. Tamer Kıran expressed his gratitude to TURK LOYDU for the attention-attracting memoir certificates, TURK LOYDU Foundation President Cem Melikoğlu mentioned in his speech the importance of the Kartal Steamboat during the War of Independence and that TURK LOYDU was the first class institution, the rules of which were verified by IMO, besides IACS.

TRAINING

Nuclear Energy Information Training in Turk Loydu TURK LOYDU continues its operations for the sector with various activities organized after starting to serve in the field of Nuclear Energy. In this context, information training was provided on March 20, 2018 for Nuclear Energy Information Training and regarding the installation and operation of nuclear

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power plants to TURK LOYDU management staff. Mr. Cem Melikoğlu, Chairman of the Board of Directors of TURK LOYDU Foundation, TURK LOYDU Sector Directors and other managers and employees attended the training given by Mr. Timur Kabadayı, who has a significant knowledge of know-how in the field of nuclear energy.

FAIR

Posidonia 2018 International Maritime Fair“Posidonia 2018 International Maritime Fair”, designated as one of the most significant maritime fairs in the world was held in Athens Metropolitan Expo between the dates June 04-08, 2018 and attended by TURK LOYDU Chairman of the Board of Directors, Cem Melikoğlu, General Manager of TURK LOYDU Uygunluk Değerlendirme A.Ş. and Foreign Relations Department.

Two thousand companies from 92 countries and twenty-two thousand visitors attended the fair where TURK LOYDU also held bilateral meetings with various flag states, class organizations and maritime companies. TURK LOYDU delegation also attended the event organized by Mr. Yaşar Halit Çevik, Turkish Ambassador to Athens, in the Embassy Residence for the Turkish naval officers then in Greece to participate in the Posidonia Fair.

TURK LOYDU SUPPORT FOR THE YEAR 2018TURK LOYDU Foundation uses the income transferred from its own companies to the Foundation for the benefit of the fields and sectors which are still active in line with the divine aims and objectives of the Foundation.

R&D Supports:TURK LOYDU Foundation also provides special R&D support for those who will conduct research at the post-graduate and academic levels in the fields of interest required by the sectors in which it operates.• Financial support was given for the attendance to the meeting of Prof. Dr. Metin Taylan, elected for the Turkish Delegation by UDHB to the IMO SDC5 (Ship Design and Construction) plan sub-committee meeting held in London between the dates January 22-26, 2018. • Financial support was given for the R&D activities of the solutions for energy and environmental issues developed by the HYDROS Team of ITU Faculty of Naval Architecture and Ocean Engineering.• Financial support was given to the hydrofoil R&D studies of the boat model called “Karbonat”, developed by Piri

Reis University Waterbike Team in order to be used in the competition organized in Croatia in May 2018, where the team has been ranked for the last three years.• Financial support was given to the “Reduction of Ship Emissions/SOx, NOx, CO2” event of ITU SNAME (the American Society of Naval Architects and Marine Engineers ITU Community) held on date 18.12.2018. • Financial support was provided to KTÜ Creatiny ROV Team who participated in MATE-ROV competitions held between June 21-23, 2018.• Financial support has been provided to YTU Stars of Hydro Team for the HYDROCONTEST to be organized in St. Tropez on September 2-9, 2018.

Domestic Conference and Meeting Supports:• Financial support was given to the Naval Architects and Marine Engineers Summit (Career Days) event organized by YTU Ship and Maritime Club on March 27-28, 2018.• Financial support was provided for the 19th National Mermaid Congress, held on 26-29 April, 2018, bringing together maritime university students and enabling the follow-up of current technical developments and studies.• Financial support was provided for the “3rd International Eurasian Maritime History Congress” organized by Piri Reis University on dates May 10-11, 2018.• Financial support was provided for the organization of 3rd International Colloquium held between the dates November 15-16, 2018 by ITU Faculty of Naval Architecture and Ocean Engineering in memory of the deceased Prof. Dr. A. Yücel Odabaşı, who once served as the Chairman of our Foundation’s Board of Directors. • Support was given to the 6th Student Workshop to be held on October 13-14, 2018 by UCTEA the Chamber of Naval Architets and Marine Engineers (Turkish) in Trabzon.

Various Supports:• Financial support was provided for the furnishing of “Post-graduate meeting rooms” of the new faculty members at ITU Faculty of Maritime.• Financial contribution was given to DEFAV 23rd Solidarity Event held on May 5, 2018.• Financial support was provided to the “7th National Ship and Yacht Design Competition” organized by Istanbul Exporters Unions in 2018.• Financial support was provided for the traditional chamber night and the Naval Engineering Week organized by the UCTEA the Chamber of Naval Architets and Marine Engineers (Turkish) on December 14, 2018.• Financial support was given for the Graduates of ITU Maritime Faculty (YDO) October 29, Republican Dinner and December 2018 Fish Day.

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TL Teknik Arge ve Tasarım Limited Şirketi, which was restructured in 2017, started to give importance to technical consultancy services in 2018 by receiving the support of the 56-year experience of TURK LOYDU in addition to its research and development activities. Activities were performed for the preparation of technical specifications for the industrial facilities, due diligence, surveillance services and preparation of technical documentation for the assembly of industrial equipment, besides the services for compliance control of the technical specifications of ships and reporting.

SERVICES INCLUDED IN OUR PORTFOLIO IN 2018

Services for the Preparation of Technical Specifications and Provision of Consultancy for Çelebi Bandırma Uluslararası Liman İşletmeciliği A.Ş. Acid Storage FacilityWithin the scope of article 15 of part 4 various and final

provisions of the “directive on the issuance of coastal plant hazardous material certificate of conformity” numbered 30296 and dated April 10, 2017, the hazardous dangerous liquid bulk cargo, excluding vegetable oils, holding the designation “safety - S” under column “d” titled “hazards” of the table in Section 17 of the IBC Code, cannot be handles free alongside the ship at the facility. Such loads can only be discharged to the tanks in the facility by pipelines and can be handled from these tanks to the land tankers by filling them in the facility.

Pursuant to this directive;The company has been provided with supervision consultancy services for discharging the product from acid (sulfuric, phosphoric) loaded vessels into intermediate stock tanks for the installation of filling tanks and automation systems sulfuric acid and phosphoric acid tanks, piping installations, tank filling stations to ensure the loading of the products in the evacuated tanks to the acid tankers coming to the port by road and for the preparation of technical specifications and construction of the facility in accordance with the project.

TL TECHNICAL RD AND DESIGN COMPANY

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Provision of Storage Terminals Consultancy (PMC) and Inspection/Supervision Services for TPIC Turkish Petroleum CompanyDuring the preparation of FEED, EIA, Soil Survey, Topographical and similar studies of Petroleum Products Storage Terminals to be established with 1 million 5 thousand tons of storage capacity adjacent to Ceyhan Terminal owned by Petroleum Pipeline Company (BOTAŞ) consultancy and control services were given related to the relevant sub-items and topics (construction, mechanical, electrical, fire protection, legal compliance, environment, project management, etc.) for the supervision, interpretation and management of the process together with TPIC.

Provision of Safety Valves Control and Consultancy Services for Petrol Ofisi A.Ş.Pressure tests, pressure set adjustment and repair services of the safety valves in Derince Mineral Oil Plant belonging to Petrol Ofisi A.Ş. Şti. is provided by TL Teknik Arge ve Tasarım Ltd. Şti.

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Preparation of Documentation for Boiler Installation at Selnikel CompanyIn the project carried out by Selnikel Company, services to prepare the documentation for boilers, economizers, pipelines, tanks, steel constructions and other related equipment has been provided within the scope of 27 T/H 20 BAR THERMAL PLANT PROJECT, which is manufactured and assembled in Amylum Starch company facilities.

Control for the Conformity of Ships with the Technical SpecificationsThe conformity control services of the ships named Idris-i Bitlisi and Sultan Alparslan and other various application and inspection boats with the technical specifications have been completed and delivered. Upon the request of the customers, TURK LOYDU surveyors carried out inspections on the related ships and provided reports to the customers regarding the performance and due diligence of the ships as the result of the negotiations with clients, shipyard officials and ship crews and taking into account the documents and projects of the ships.

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Preparation of Tank Calibration Bouclé of ShipsShip tank calibrations performed in accordance with the relevant regulations on the final construction of the vessels are carried out by using laser measurement methods and physical measurements obtained on the tank by using physical measurements, modeling methods in special software programs and real physical structure of ship tanks. The services for the preparation of calibration tanks bouclé for the cargo tanks of Kolin 4, Bit Hero, Santa Lucia and Lily PG were completed and delivered.

RESEARCH AND DEVELOPMENT ACTIVITIES

Ship Sizing and Strength Analysis SoftwareThis is project to generate a software to perform the sizing calculations of ships within the scope of TURK LOYDU Rules Volume A Section 1 - Boat Construction Rules (2018). The software is designed in such a way that users can create two-dimensional sections and curtains in any part of the ship’s length, including superstructure (curvature, corrugated screen, standard profile board, identification of user-defined profiles and openings and in similar features) if necessary, make calculations, control the results of these calculations with the rule requirements (section modules, metal sheet thickness, resistance strength modules of elements, buckling, fatigue control...) and see the critical values and the elements that exceed these values visually and numerically.

EU PROJECTS

The EU projects continued in 2018;

SEAMAP ProjectThis project aims to bring together all the stakeholders in the maritime sector on the same platform in the fields of sectoral workforce, career, entrepreneurship and training opportunities by providing cooperation with the organizations operating in the maritime sector. The consortium consisting of 6 partners from 5 different countries aims to gather sectoral business opportunities in line with the qualifications of all other personnel working in the maritime sector on a single platform, to realize the requirement analysis in order to increase entrepreneurship skills in the field of maritime service sector and shipbuilding industry, to support the qualified personnel for increasing their professional skills required by the sector by developing a web-based platform that will bring together the jobseekers and recruitment and employment organizations in the maritime sector.https://projectseamap.eu/

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NEO-COL ProjectIt is an e-learning module that connects International Regulations Preventing Collision at Sea with Modern Electronic navigation devices. The consortium consists of 6 partners from 5 different countries. A questionnaire was formed by determining the cause and effect relationship After examining 20 accident scenarios from each country. The answers from the shipmen were analyzed and the differences between the theory and the real practice were analyzed and a report was issued. A graphical user interface containing 20 accident scenarios was created and 250 questions were generated. http://neo-col.eu/

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