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TANKEROperator November/December 2012

www.tankeroperator.com


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Contents 04

Markets Delivery problems

06

News Focus n OPEX hitting owners’ pockets n Teekay fits fleet wide satcoms

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Sweden Report Win some, loose some

17

Navaids n Furuno’s new ECDIS n SAM unveils BNWAS and ECDIS n Jeppesen’s ‘Pay as you sail’ n Winds can play havoc

22

Bunkers n NAECA - California experience n LNG as fuel draws nigh n A people business n Cat fines still pose problems n Inatech in the clouds

30

Anti-piracy n Guidelines needed n Door locking systems n Is BMP4 effective?

35

Technology 35 Chemical cleaning supply 38 LPG buoys Wärtsilä Hamworthy

40

Ship Description n Six eco Aframaxes n Aframax design launch

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Training Systems n UK eNav centre n New engine room simulator n Certifying academies

52

Ballast Water Treatment n Type approval methods questioned n Latest equipment initiatives

59

Conference Report A question of mentoring

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Front cover Thomas Gunn’s ever expanding product range now includes worldwide coverage of UKHO Admiralty charts, Admiralty Collection charts, Admiralty Leisure charts, Canadian charts, Imray charts, Imray 2000 charts, Norwegian charts, and US charts. In addition, the company sells nautical books, navigation equipment, navigation lights, chart plotting instruments and stationery, electronic charts, digital publications, chart plotting software and other marine related software.

November/December 2012

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TANKErOperator

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COMMENT

‘Market Leading’ thoughts on OSG’s demise New York-based Basil Karatzas, CEO of Karatzas Marine Advisors takes a look at the reasons for OSG’s filing of Chapter 11*. The news of OSG’s ‘death’ (reorganisation for practical purposes) had not come as a surprise, as rumours to its demise had been circulating for some time. When freight rates have been so close to, or below cash breakeven levels for more than a year, it’s a foregone conclusion that cash positions in this sector are running low and pressures are building up. OSG is neither the only tanker company, nor the only publicly traded company that had to file for protection. General Maritime and Omega Navigation had to seek protection in the US several months ago and TORM and BLT have done similarly overseas. One can be assured that privately held tanker companies are facing the same reality, but they do not have to ‘publicise’ their pain, since it’s not required by law. In OSG’s case, the significance of the filing rests with the fact the company has never been a myrmidon of the ‘tonnage provider’ school of thought. In the go-go years of the hot shipping IPO market, a lot of publicly traded companies were effectively financial/beneficial owners of vessels where, in the name of ‘core competencies’, ‘synergies’ and ‘efficiencies’, the technical management was completely outsourced to third parties and the commercial strategy of the vessel management was based on bareboat, or timecharters where the ‘commercial management’ of the vessels was actually passed on to the charterers. For certain companies, the management of the vessels was passed on to third-parties at arm’s length transactions, but quite often, the vessel management was undertaken by an ‘affiliated’ company. OSG had strong and competent in-house management teams based in the US, UK and Greece. On the debate whether to outsource, or keep management in-house, OSG had a clear position; under the traditional ‘shipowning’ model where ownership and shipping expertise reside under the same roof, both the charterer and the owner benefit in several ways, but mostly by establishing deeper, closer symbiotic relationships where they can feed on each others competencies and expertise. Another market distinguishing attribute of OSG’s strategy was that the company exhibited diversification across both market segments but also market sectors; the company had been active in the crude, product and LNG carrier markets, from ULCCs to Aframaxes to MR2 tankers, from tankers registered under open registries to articulated tank barges (ATBs) trading in the Jones Act market. In short, the company had many different types of vessels in many different ponds and with enough critical mass in each market and

expectations of good performance that the company routinely described itself as ‘market leader’ in its communications with its stakeholders. The filing for bankruptcy protection was precipitated by the recent resignation of an OSG board member over tax considerations; given that OSG has a wholly owned Jones Act subsidiary, the tax structure is more complicated than other shipowners, who are active only in the international flag business. At the time of the filing, the company had less than $50 mill market capitalisation and listed assets of $4.1 bill and liabilities of $2.7 bill. With a fleet of about 110 vessels under its control of which, around 70 vessels are under ownership and 40 under charterin/management, 20 of which fly the US Flag, plus a syndicate of more than 20 banks and also bondholders, it is expected to be one of the most complicated reorganisation processes. The outcome is several months, if not years away, but a likely scenario is for the company to be split between the international flag and cabotage businesses. In keeping with the strategy of banks in similar situations, the international flag business can be restructured so that the lenders become equity holders and get rewards for their additional risk; the Jones Act business can be sold off in its entirety to another Jones Act player, or get spun off as an independent going concern. The Jones Act has been one of the few promising segments in shipping in the past year. The least likely scenario is that OSG owned/controlled tonnage will end up on the selling block in a piecemeal fashion. The fact that a ‘market leader’ like OSG was brought down in such a manner, may be testament to factors just beyond the ferocity of the business cycle. Likely, the fall-out of such a high calibre owner will once again start debates as to whether shipowners’ management can deliver ‘alpha’ (outperform the market consistently), whether fleet and segment diversification provides stability in difficult times, or whether strategy and execution really matter. After all, OSG had been lead by a seasoned banker and the company expanded in the Jones Act market by acquiring Maritrans (and certain of its newbuildings) for a high price but had missed deadlines in an offshore conversion project that gave the right to the counterparty to renegotiate the original charter at lower levels. TO

*Basil Karatzas can be reached by email at Info@BMKaratzas.com, or phone at +1 646 884 0803.

TANKEROperator

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Vol 12 No 2 Tanker Operator Magazine Ltd 2nd Floor, 8 Baltic Street East London EC1Y 0UP, UK www.tankeroperator.com

EdITOR Ian Cochran Tel: +44 (0)20 8150 5295 Mobile: +44 (0)7748 144265 cochran@tankeroperator.com

PUBLISHER/EVENTS/ SUBSCRIPTIONS Karl Jeffery Tel: +44 (0)20 8150 5292 jeffery@thedigitalship.com

AdVERTISING SALES Melissa Skinner Only Media Ltd Tel: +44 (0)7779 252272 mskinner@tankeroperator.com

SUBSCRIPTION 1 year (8 issues) £195 / US$320 / €220 2 years (16 issues) £300 / US$493 / €336 Subscription hotline: Tel: +44 (0)20 7017 3405 Fax: +44 (0)20 7251 9179 Email: jeffery@thedigitalship.com

PROdUCTION Wai Cheung Tel: +44 (0)20 8150 5291 wai@tankeroperator.com Printed by PRINTIMUS Ul.Bernardynska 1 41-902 Bytom Poland

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INdUSTRY - MARKETS

Delayed deliveries come to the aid of a beleaguered market On their own, the delivery of the glut of tankers ordered around 2008, before the current crisis, would have been enough to pressure owners’ earnings, but in today’s environment of falling oil demand growth and a weak economic outlook, the pinch has become a squeeze.

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owever, a breath of fresh air for tanker owners, has been the slower than expected tanker deliveries this year. The year-to-date (end of October) slippage rate is about 20%, much higher than the traditional level of around 5%. This has been influenced by shipowners employing a variety of measures to delay deliveries. Tactics include outright cancellations, foregoing options, taking delivery of a different vessel class, or inspection delays, said McQuilling Services in a recent report. The impact of these actions is evident. At this point in the year, we would have anticipated that about 80%, or 190 ships out of 228 would have delivered from yards. However, through October the number of tankers delivered was 151. Additional support to the fleet balance has come from an elevated deletion profile. Yearto-date we would have expected that 55 of our forecast 66 vessels would have been demolished but this number currently stands at 64. Furthermore, recently, our proprietary data showed that three additional VLCCs had been sold to Pakistani breakers for demolition, as market conditions weigh on owners, McQuilling said. Despite these seemingly positive developments regarding the balance of the trading fleet, it appears that the oversupply shows no signs of disappearing. In preparation for McQuilling’s Tanker Market Outlook 2013-2017 the consultancy said that it had started to examine how the orderbook will develop in 2013 and 2014, as these years have the greatest influence on short term tanker rates. To undertake this exercise, McQuilling said that the company examines the delivery schedules of tankers in its proprietary database for 2013 and 2014 and compares it to the 4

January assessment (Figure 1). At this point of the year, the financial health of shipyards, or owners, which will account for some vessels being delayed, is not being assessed. In addition, classifications for clean product tankers are not being assigned. Historically, about 2% of LR2 and LR1 are classified under the IMO 1 or 2 categories while for MR2 and MR1 vessels, these numbers are 30% and 50% respectively. As previously mentioned, tanker owners have been allowed some respite in 2012 from previous year’s orders as the delivery profile has been slower than anticipated. While this may have provided some support this year, a negative consequence is that barring any massive shift in the rate of scrapping, these tankers will simply hit the water at a later date, further boosting tonnage supply. The lion’s share of these deliveries in the cases of January 2012 and November 2012 were expected in 2013 (Figure 1) and experience tells us that all of them will not transpire, spreading previous year’s orders throughout the forecast period. This is particularly true for the earlier years in the forecast period, McQuilling said. In previous years, it appeared that the VLCC,

Figure 1.

Source: McQuilling Services

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INdUSTRY - MARKETS

topping-off

Visit us: Figure 2.

Source: McQuilling Services

Suezmax and MR2 tanker classes would potentially feel the most pressure. Given their dominance in seaborn trade, this development was predictable. MR2 susceptible In last January’s Tanker Market Outlook, McQuilling cautioned that the MR2 market was starting to look susceptible to a supply imbalance during the forecast period. This situation is looking increasing likely to transpire. Throughout the first 10 months of the year, 77 MR2 tanker orders were placed, with no IMO classification having yet been assigned (Figure 2). While these vessels are unlikely to hit the water until the latter half of the next forecast cycle, or perhaps even later, it will be compounded by the already high delivery expectations for 2013 and 2014. In the January 2012 estimate for next year and 2014, MR2 deliveries were already given at 65, but given the very low yard deliveries recorded so far this year, the delivery profile has increased by as much as 50% in this November’s estimate (Figure 1). When examining tanker contracting though end-October 2012, it appears that ordering activity has returned to more traditional levels. The majority of tanker classes have single digit orders, with the exception of the previously mentioned MR2 activity. The low contracting volumes come as little surprise given the state of the tanker market and difficulty most owners face securing financing. These reduced contracts combined with the expectation that fleets will consolidate, due to market pressure, should help balance the tanker market over time, McQuilling said. Barring any major shift in global economic growth, or oil demand, tanker owners are going to continue feeling the pressure from the robust ordering activity of previous years. While the reduced rate of deliveries, combined with elevated scrapping has likely provided some support to owners’ bottom lines this year, fundamentals will remain pressured in the short term, the consultancy concluded. TO November/december 2012

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NEwS FOCUS - OPERATING COSTS

Lubeoils and crew likely to hit owners and operators pockets Vessel operating costs are expected to rise by 3% per year in both 2012 and 2013, according to a recent survey by accountant and shipping consultant, Moore Stephens.

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ube expenditure and crew costs are the categories most likely to produce the highest levels of increase, the survey found. The findings were based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. As was the case 12 months ago, those responses identified lubricants, as the cost category likely to increase most significantly – by 2.9% and 2.8% in 2012 and 2013, respectively.

CDI SIRE

Crew wages, meanwhile, are expected to increase by 2.3% in 2012 and by 2.4% in 2013, with other crew costs thought likely to increase 2.1% for both years under review. The cost of spares is expected to escalate by 2.2% in each of the two years covered by the survey. Expenditure on stores is expected to increase by 2.1% in both years, while the cost of repairs and maintenance is expected to rise by 2.1% and 2.2% in the same years. The increase in P&I costs for both years is estimated by respondents to be 2.1% and 2.2% respectively, while for hull and machinery

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insurance the respective figures are 1.9% and 2%. Drydocking costs over the same period are expected to rise by 1.9% and 2%. As was the case in the 2011 survey, management fees were thought likely to produce the lowest level of increase in both 2012 and 2013, at 1.3% and 1.4%, respectively. “With crude oil prices hardening, lube costs will go up,” said one respondent, while another observed, “Fuel and lube suppliers are very aware that there is an oversupply of tonnage on the market and take advantage of

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NEwS FOCUS - OPERATING COSTS that in their dealings with owners.� Another said, “There is ongoing pressure to reduce operating costs by means of improving vessel fuel efficiency and in practice there might be a gap between expectations and what can be achieved, as fuel and lube costs are likely to increase at a steady pace.� It was also noted, “There is no alternative to lube oil and costs are already very high, making it very difficult to operate a ship.� A number of respondents cited crew costs as a major cause for concern. One said, “As long as there is stiff competition on crew costs among managers, with wages being increased at random, the situation will not settle down.� Another noted, “The volume of new vessel deliveries and short contracts will put pressure on crew supply and crewing costs will go up.� The respondents were not convinced that more expensive crews would actually mean better crews. “Crew competence and skill is declining,� said one, “with a trend towards short contracts and fast promotion. This is leading to more accidents and to extraordinary unbudgeted expenses.� Another remarked, “The shortage of qualified crews is steadily getting worse. A lot of the new crews are of a very low standard.� Elsewhere it was noted, “Crews from countries that offer lower wages will play a very important role in the cost of operating vessels. With low freight earnings, owners will try to save on crew wages.� Meanwhile, one respondent claimed, “The biggest single factor in operating cost increases these days is the scarcity of Filipino and Chinese seamen.� Several respondents expressed concern about overtonnaging. “The market has been very shaky in 2012, and will continue to be so next year, because of the oversupply of tonnage and the shortage of motivated and qualified crews,� noted one, adding, “Below breakeven voyages are being undertaken in order to avoid sending ships into layup, or being sold at very low prices.� Another pointed out, “The shipping markets will only get more difficult, as a result of overcapacity,� while another still predicted, “Due to the oversupply of ships, we face a major crisis, and an increase in the amount of laid-up tonnage.� The difficulty of obtaining finance, declining freight rates and the cost of increasingly stringent regulatory compliance were among other concerns; “Legislation coming into force, including that affecting labour conditions and the environment,� said one, “will have a major impact on operating costs for older tonnage.� Moore Stephens also asked respondents to identify the three factors that were most likely to influence the level of vessel operating costs over the next 12 months. Overall, 27% of respondents identified finance costs as the most significant factor, followed closely by crew supply (20%). Competition was in third place, with 18%, followed by demand trends (17%).

OpCost 2012 daily rate ($)

Product Handysize Panamax Aframax Suezmax VLCC Weighted average

Year-on-year change (%)

8,370 7,829 8,419 8,514 9,681 10,780

1.8 2.1 0.9 1.8 1.9 1.0 1.7

*Excluding drydock costs. November/december 2012

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NEwS FOCUS - TANKER SATCOMS

Teekay opts for satcoms package to cover tanker fleet NSSLGlobal has completed in-service installations of 60 Cruise-IP VSAT terminals on board a large percentage of Teekay’s tanker fleet.

T

he terminals provide high-speed Broadband and voice for Teekay’s corporate and welfare networks.

The company said that it was determined to be at the forefront of this technology shift and, as a result, in early 2011, it went out to competitive tender for high speed broadband connectivity on board 40 tankers. Addressing the communication needs of one of the world’s largest shipping companies was a complex task. Teekay’s business is global, taking its fleet worldwide. The solution also had to provide secure connectivity for the company’s corporate VPN, remote access for maritime diagnostic applications, such as engine and cargo monitoring, as well as reliable high speed welfare communications

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for the crew. In addition the installations had to be completed within six to nine months and without interfering with the vessels normal operations. NSSLGlobal won the tender against stiff competition basing its solution on its Cruise-IP service, which can deliver speeds of up to 4Mbps of data with one of the most extensive KU-band footprints available. In addition to the high speed connection, at the core of the on board network is the NSSLGlobal cruise control unit and gateway device which allows: n The fleet manager and Master to implement Teekay corporate IT and communications policy. n Separate policy management of the

n

n n

n

corporate and welfare networks with accelerated and prioritised VPN for corporate traffic. Secure remote access to allow authorised Teekay personnel to access maritime diagnostic applications, such as the Honeywell eserver for engine and cargo monitoring and alarming. Seamless and automatic transition between VSAT beams. Remote diagnostics and control of the on board VSAT system by the NSSLGlobal NOC. Automatic least cost switching between alternative satellite providers (such as Inmarsat’s FleetBroadband) for total service assurance, which was also provided as part of the contract.

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NEwS FOCUS - TANKER SATCOMS One of the key challenges for NSSLGlobal was to be able to adapt the installation programme to cater for last minute changes in the vessels itineraries and on occasions when the vessels were only in port for a very short period. Working flexibly with Teekay, the programme was completed on time and on budget and, as a result, it was extended to 60 vessels. The introduction of high-speed broadband on board has given each vessel improved contact with customers, vendors and port authorities, allowing for business communications to continue smoothly throughout a voyage. It also allows for greater access to vessel information and the performance of remote and online diagnostics, making maintenance and data collection easier and more efficient. The ease of online access to port information, weather updates and online databases is also a key benefit. In addition to the improvements in corporate communications, crew welfare has also improved significantly. Offering crew member’s access to Internet and social media, including Skype, Facebook and YouTube has

allowed them to complete training online, via web portals, or webcams, as well as helping to communicate with home lessening the feeling of isolation on board, making for a happier crew. Service agreement The contract was backed up by service level agreements (SLA) covering the availability and quality of service. These SLA’s are proactively monitored by the NSSLGlobal network operation centre, which is manned 24/7. Zoran Jenlenovic, Teekay’s director of marine and technical assurance said: “Thanks to people involved in the process leading up to awarding the contract, Teekay had a very clear idea of what was required for the success of this project. NSSLGlobal’s proven record in providing ‘in service’ installations alongside 24 hour remote support was one of key elements in our award of contract. “During the implementation phase, we quickly developed a close working relationship with the NSSL project team which meant that we were confident that, despite

quite aggressive project goals and targets, the challenge of changes to the vessel’s programme with often only a day or at most two in port, NSSLGlobal were able to deliver the desired solution on time and on budget.” Sally Anne Ray NSSLGlobal COO said: “This contract is significant for all of us at NSSLGlobal. Teekay is a global giant of the shipping world and to have such a big brand commit to NSSLGlobal is an exceptional endorsement of the work we do. We believe one of our key strength’s is listening and working with our customers to develop innovative solutions that address their individual requirements. We look forward to a long term relationship with Teekay and will continue to work closely together with them to develop enhanced services and solutions to meet their high expectations.” NSSLGlobal is an Inmarsat distribution partner with over 18,000 marine, offshore and land-based users. It is able to offer a wide selection of terminal equipment and airtime tariffs and operates its own VSAT network to over 700 terminals. TO

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TANKEROperator l November/december 2012


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iNDUSTRY - SweDeN RepoRT

Tanker companies surviving the heat This year, Swedish shipping could be summed up by the phrase – ‘you win some and you loose some,’ especially in the tanker sector.

D

espite the apparent intransigent stance of the Swedish Government towards seafarer tax and other issues affecting domestic shipping operations, there are still some companies who seem to be coping with everything that is thrown at them. Sweden remains strong in the northern European smaller chemical tanker type operation, despite some companies having moved across the Sound to Denmark, where there is a much more favourable shipping regime in place. One aspect of the shipping industry that the government is currently addressing is the question of armed guards on board ship. In March 2011 the European Parliament and European Council implemented the new IMO

SOLAS provisions by EC Regulation 725/2004, which is directly applicable in the European Union. In Sweden, the legal framework was implemented by several amendments to existing vessel safety legislation and new statutes. However, these statues did not take into account a potential need for security guards on board ships. Unlike several other shipping nations, Sweden has not yet adopted regulations on the employment of security guards, despite recommendations from the IMO. However, Parliament is expected to enact a new law governing such employment in March 2013, local sources said. According to Swedish sources, the Act on Guarding Onboard Swedish Ships is intended

to enter into force on 1st January, 2013 and will allow Swedish shipowners and operators to contract private security companies. This new act will apply to ships subject to the International Ship and Port Facility Security Code (ISPS), trading outside the European Economic Area. Under the new act, private maritime security companies that provide protection against piracy on board Swedish ships must be authorised and armed security personnel who are in possession of weapons must be licensed. Under the new provisions, a shipowner, or operator, must obtain permission to employ armed guards. A vessel’s Master who engages on board security personnel must ensure that the following details are noted in the ship’s log

Gothenburg is an ideal port in which to set up a bunker operation.

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iNDUSTRY - SweDeN RepoRT book: n Identification; n Personal details; n The time period that the personnel are on board; n Certain details in respect of firearms. Furthermore, a shipowner, or operator and Master may face criminal penalties if they fail to comply with the new provisions, either intentionally, or though negligence. Sweden also boasts Gothenburg, which is the largest port in the nordic region in tonnage terms. The port authority has been very active in building Gothenburg up as a hub port, not only for rolling cargo and containers, but also in the crude oil and oil products sector. Major bunker port Due to its strategic location just a few miles steaming from the Skagerakk and kattegatt, plus the Skaw area, Gothenburg has not been slow to see the advantages of offering bunker storage facilities within the port, enabling bunker tankers to deliver product off the Skaw peninsular and as far as Copenhagen. This summer, Vopak and Swedegas signed an agreement to investigate the possibility of offering LnG fuel bunker facilities at the port. The Port of Gothenburg has since joined the initiative.

Stricter sulphur emission stipulations mean that ships operating in Swedish waters must switch to a more eco-friendly fuel by 2015 at the latest. Likewise, an increasing number of Swedish companies are looking to switch from oil and coal to cleaner alternatives. At present, it is difficult for shipping and industry to source LnG in sufficient quantities, the companies said. A new investment in an LnG terminal at Gothenburg could be the solution. A survey is currently being conducted to determine market needs. Behind the initiative is the infrastructure company Swedegas, which owns the Swedish gas grid, Vopak LnG, a specialist in the storage of liquefied natural gas and subsidiary of the independent provider of conditioned storage facilities for bulk liquids Royal Vopak, plus the Port of Gothenburg. “The environmental benefits of LnG have generated demand not only in shipping but also in industry. At present, we are scanning the market to ensure we dimension the terminal properly and offer the right services,” explained Lars Gustafsson, Swedegas president, at the time of the announcement. An LnG terminal is planned to be completed in Gothenburg during 2015. It will be the first in Sweden to be built according to the ‘open access’ principle, meaning that any

company interested in importing gas to the Swedish market will now have the opportunity to reserve capacity. “Unrestricted competition is crucial if the end-customer is to be able purchase gas at the best price on the world market,” said Gustafsson. “The port of Gothenburg is not only the largest port in the nordic region but also the foremost energy port. We want to put across a clear message to the shipping industry that LnG will be available when stricter environmental stipulations come into force,” said Magnus kårestedt, Port of Gothenburg CEO. Gothenburg will be one of the first major ports in the world where vessels requiring bunkers will not need to go to a special terminal. LnG bunkering will be able to be undertaken directly from a bunker tanker while the vessel is being loaded, or unloaded, which will open up the potential for largescale LnG bunkering, the companies said. The terminal will also be connected to the domestic gas grid. Each year, around 2,500 tankers call at Gothenburg, which is the port of entry for around half of Sweden’s crude oil imports. During the third quarter of this year, 6.1 mill tonnes of oil, diesel, ethanol, asphalt and other

Stena Bulk is an acknowledged expert in operating ice Class tankers.

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iNDUSTRY - SweDeN RepoRT products were handled – up 30%, compared to 2011 and a new quarterly record. This upturn was attributed mainly to a rise in volumes at the three refineries. The port also has three storage companies operating within its jurisdiction. One refined product that has shown a particularly marked increase is diesel, the port said. Distribution of diesel from the port rose by 35% in the first six months to 2 mill tonnes, half of which was.shipped to various parts of Sweden, while the other half was exported. Tanker changes The ‘win some and loose some’ theme was clearly seen in two deals involving Maersk Tankers. In 2009, Maersk Tankers bought Broström, a large Gothenburg-based owner and operator of chemical and product tankers, ranging from small northern European trading vessels up to MRs. Since then, the AP Moller-Maersk group company has been gradually assimilating the various departments. The Broström tankers are operating in the various Maersk Tanker pools. Some of Maersk’s smaller tankers were jointly owned by Broström and Lidkopingbased Erik Thun on a 50:50 basis. Last month, Maersk completed the 50% sale of the 12 of the coastal tankers, managed by Broström in Gothenburg, back to Erik Thun, which has since resurrected its old name - Thun Tankers. All the vessels, including a 13th, which was fully owned by Broström, were part of Maersk’s Small northwest Europe segment. Hanne Sørensen, Maersk Tankers CEO said that this deal was part of Maersk Tankers’ strategy to simplify and streamline its business and the company’s plan to focus on fewer segments going forward, thus this divestment opportunity comes at the right time and under the right conditions. Anders källsson, Erik Thun CEO said that this was a natural step for the family-owned concern to invest further in the small tanker segment by taking over Broström’s 50% share in the vessels. “We see the golden opportunity to get into the commercial tanker market again,” he said. The vessels in question belong to G-series, built between 1999 and 2009. All the vessels are in the range of 6,535 dwt to 7,759 dwt. The remainder of Broström’s Gothenburgmanaged fleet and shoreside personnel was due to transfer to Copenhagen by the end of this year, the company confirmed, thus ending another chapter in Swedish shipping. One major Swedish success in the tanker November/December 2012

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business has been Stena Bulk, part of the Stena Sphere group. This concern has designed a number of innovative tanker types down the years and today operates many vessels in a number of joint ventures and pools, as well as the open charter market in which Stena Bulk has chartered-in several vessels for the joint ventures and pools. Stena Bulk is in the process of taking delivery of a series of what are claimed to be super efficient Suezmaxes from Samsung. The first – Stena Superior – was followed by the Stena Suede last year, while the Stena Supreme was delivered this year to be followed by the Stena Sunrise in 2013. The vessels were designed by the South korean shipyard with input from Stena’s in-house design department. The series will be operated by the joint venture between Stena Bulk and the Angolan public sector company Sonangol, named Stena Sonangol Suezmax Pool (SSPP). Upon her delivery, Stena Suede went directly onto a long-term charter with the French oil major Total. Stena said that with fuel-saving technology, such as optimised hull lines, increased diameter propellers, bulb rudder and energysaving hull fins, the newly built vessels achieve a minimum of 15 % lower bunker consumption, compared to conventional Suezmax currently in service. Each vessel is fitted with a VOC (volatile organic compound) reduction system, which reduces VOC emissions by up to 90% during loading and transportation of cargoes along with a reduction in H2S (hydrogen sulphide) release from cargo. To enhance the propulsion efficiency, they each have two sets of Samsung vibration and energy reducing (SAVER) fins fitted on the hull forward of the propeller for optimised flow while also reducing hull vibration. Propeller efficiency is further improved by reducing hub vortex effects through use of a Samsung rudder bulb, mounted close to the propeller boss. When creating the pool in 2005, Stena Bulk and Sonangol said that they aimed to maximise the profits from the available ships by facilitating high quality spot trading, using vessels with an average age of 3.5 years across the fleet. Today, the SSP operates more than 20 Suezmaxes and the aim is to have a fleet of around 30 modern tankers with an average age of only 3.5 years. In another move, Stena and its partner Concordia Maritime announced in June that

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they had ordered up to 10 in-house designed MR chemical tankers. The vessels will be built at Guangzhou Shipyard International (GSI) in China with deliveries beginning from the spring 2014. When delivered, the 50,000 dwt vessels will be the most sophisticated in Stena Bulk’s and Concordia Maritime’s fleet, Stena said. The value of the order will be $400 mill if all 10 vessels are declared. Upon their delivery, the vessels will join the Stena Weco Pool. “To challenge today’s fierce competition within the tanker segment, we must invest in the higher end of the market. These ships will have an outstanding competitive edge both in the edible oil, chemical, and in clean tanker markets,” said Ulf Ryder, president and CEO of Stena Bulk when announcing the order. ”This is a logical step in the development of our business and fleet, to invest in vessels with very good fuel efficiency and with outstanding cargo flexibility. They will be operating in the segment where we have our main focus and where we believe there is a very good growth potential”, said Hans norén, Concordia Maritime president, who has taken two of the vessels ordered. Flexibility is paramount to be competitive in the chemical tanker segment. They must be able to carry a wide range of cargoes in smaller parcels like the liner shipping industry giving higher freight per tonne. Also increasingly important in this trade type is to be able to quickly switch between various types and grades of cargoes, Stena said. “Our engineers have together with Guangzhou Shipyard succeeded in obtaining probably the most innovative Eco tankers existing with completely new hull lines, specially designed propellers, and many more topics, which could mean a competitive advantage of some $3-5000 per day when it comes to cargo flexibility and fuel economy,” Ryder said. “It is with great pleasure we are now getting a new specially designed fleet optimised for our cargo contracts within the Stena Weco Pool” said Erik Hånell, Stena Weco managing director during the anouncement. “It is very stimulating that our owners and partners believe in what we have created so far and order these ships that will be commercially managed by Stena Weco,” Hånell concluded. Six tankers have thus far been confirmed. Publicly quoted Concordia Maritime has taken two vessels and Stena Bulk four ships. There are further options included in the shipbuilding contract, which could be distributed to other joint partners. Later, the joint venture Golden Stena Weco 15


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iNDUSTRY - SweDeN RepoRT announced the opening of an office in Singapore. Golden Stena Weco is a joint venture between Stena Weco and the Indonesian palm oil producer Golden AgriResources (GAR). Initially, the joint office will have a staff of eight working in operation, chartering and trading. Stena Weco currently transports about 2.5 mill tonnes of palm oil per year with 50,000 dwt MRs and two of Concordia Maritime’s converted P-MAX tankers. “The closeness to GAR’s traders in our new joint office gives us direct contact with the palm oil market. The collaboration will generate synergies for both Stena Weco and GAR. We know shipping and they have the cargoes”, said Hånell. “For Stena Weco, it’s very important that GAR works actively on environmental demands concerning the extraction of palm oil, as well as its business as a whole. We ourselves are working hard on research and development relating to our technology and our transportation. Consequently, we consider GAR’s investments in sustainability to be extremely important”, Hånell added. Stena Weco, which was formed at the beginning of 2011, is owned equally by Stena Bulk and Danish Dannebrog, each holding 50%. Founded in 1996, GAR is the world’s second largest palm oil plantation company with a total planted area of 457,040 hectares (including small holdings) as at 30th June this year, located in Indonesia. It has integrated operations focused on the production of palmbased edible oil and fat. In May 2011, Stena surprised the market once again by entering the LnG sector. The company said that it had been studying this market sector for some time, before deciding to splash out on three LnGCs from

Taiwan’s TMT. At the same time, Stena LnG was formed. They were the Stena Blue Sky (built in 2006), Stena Clear Sky (built in 2011) and Stena Crystal Sky (also built in 2011). They were all built by Daewoo to Ice class 1C. The Stena Blue Sky was on timecharter when she was acquired by Stena. The Stena Crystal Sky and Stena Clear Sky were reactivated at the yard in June 2011 and were then chartered out for seven to eight months, followed by another timecharter of three to four years. It was hoped to expand the LnG side of the business by organising a Stena LnG IPO in Oslo to raise cash to order newbuildings. However, it was decided not to go ahead due to the world’s current economic uncertainty. There were rumours of newbuildings being placed at Daewoo and Samsung, but these had not been confirmed at the time of writing. Affiliate Concordia reported a positive result before tax of SEk4.1 mill for the third quarter of this year, which was down on the previous two quarters, due to weaker freight rates earned by the fleet. On average, the vessels on the open market generated income of just under $11,000 per day in the third quarter, compared with just over $15,000 per day in the first half of the year. By comparison, vessels employed on timecharters generated an average of around $21,000 per day. During the quarter, Concordia concluded a two year timecharter for the P-MAX Stena Primorsk with a new north American customer. An option also exists for a further year’s charter. The company said that the daily hire is reflective of the market situation and is therefore not really satisfactory. However, this is an interesting business with a good client, and given the company’s increased exposure

to the open market, noren said that it was prudent to secure this cash flow. The contract is expected to generate a small surplus in the operating result (result before financial net). noren also noted that the Suezmax Stena Supreme had been in operation since the beginning of July. The SSSP achieved a relatively good result in a very challenging market in the third quarter. The vessel’s share in the pool generated an income of about. $17,000 per day, compared with the segment’s average rate of around $10,000 per day. This gave a positive contribution to operating cash flow (EBITDA) of about $0.8 mill. The market has strengthened significantly in early november, particularly in the Atlantic. Even if this upturn is short lived, it means that Concordia’s open vessels may generate a better income per day in the fourth quarter compared with the third. However, income for the vessels employed on timecharters is expected to be somewhat lower as the vessel Stena Perros was redelivered at the end of October and is now employed on the open market, while Stena Primorsk’s new contract is at a lower rate. Another P-MAX, Stena President, was converted to IMO type III during the period. The company said that its assessment of the product tanker segment continued to be positive. Indications are that the market is not far away from a balance between supply and demand. These conditions are also in place for a gradual improvement in the product tanker market during 2013 and 2014. During the first nine months of this year, the result after tax was a loss of SEk365.7 mill, compared with a positive SEk58.9 mill for the corresponding period last year. This was mainly due to an impairment charge of SEk408.8 mill. TO

ANCHORS & CHAINS

Rotterdam Shanghai Bergen Aberdeen Nantong

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Furuno enhances navigation and training

Furuno has launched a new ECDIS under the model names of FMD-3200 and FMD-3300 and has also introduced a distance learning service.

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he FMD-3200 is fitted with a 19 inch LCD while the FMD-3300 has a 23.1 inch LCD. They are claimed by the company to deliver great enhancement in terms of user interface, as well as functionality. Fully complying with ECDIS performance standard as stipulated in IMO resolution MSC.232(82), the new system is suitable for installation on board newbuildings, as well as for retrofits. The new ECDIS also enhances the chart management scheme providing easy chart management independent of the chart providers, Furuno said. It is compatible with Jeppesen Dynamic Licensing and it supports the Admiralty Information Overlay (AIO). In addition, its network expandability fully satisfies provisos for paperless operation of vessels. They provide the operator with fast access to the tasks and functions to be performed in vessel operations. They employ intelligently arranged graphic user interface elements: status bar and instantAccess bar that deliver a task-based operation scheme to give the operator direct access to necessary operational procedure. For example, the status bar at the top of the screen provides operating status, including modes of operation and presentation. The instantAccess bar on the left edge of the screen provides quick access to functions available in each of the ECDIS operating modes. The instantAccess bar’s contents change according to the operating modes selected on the status bar. This combination covers virtually the entire operation, hence providing easy and quick access to the tasks to be performed, the company said. As a result, the need for going into an intricate menu tree to reach the necessary tasks has become redundant. This will streamline the navigation monitoring procedure, reducing the risk of confusion and November/December 2012

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erroneous operation, as well as enhance situation awareness. Also, the new ECDIS utilises a chart-drawing engine that delivers instantaneous chart redraw with the seamless zooming and panning. Moreover, its operation philosophy is based upon the same logic, as the control scheme of a PC’s mouse and all operations can be controlled by using a trackball of the control unit by means of left-clicking, right-clicking and using a thumbwheel. Also, a full QWERTY style keyboard is available in the ECDIS control unit for easy route, event and waypoint naming, Furuno claimed. Computer aided training At SMM, Furuno released its new distance learning training platform - navSkills CAT using a computer aided technique to provide training to the company’s ECDIS users. navSkills CAT combines what are considered to be the best parts of computer based training with that of class room training. It is initially designed to provide type specific ECDIS training, but the platform can be used for familiarisation of other navigation equipment in the future, the company said. The navSkills CAT is centred on a cloud computer hosting the training application software. To access the cloud server, the trainee will have to use a workstation provided by Furuno, which is designed to be installed and used anywhere having a broadband internet connection within the customers’ premises, such as the

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office, or any branch offices, enabling the training to be conducted with the shipowner. The workstation accommodates dual displays (one for ECDIS and one for radar/conning/ship control and visual simulation) and a control head similar to the actual Furuno ECDIS control head used on board the vessel. By using this method, the trainees can learn how to navigate the menus with the track ball and how to use the fast keys and controls on the control panel for quick and easy operation. It is provided fully configured, as a plug and play solution, hence requiring no setting up on site. In order to achieve better training results, the company launched a help desk, which provides online support to the trainees using Voice over IP (VoIP). It is accessible through a soft key on the system screen. By activating the help desk function, the trainee is connected to an instructor, who can guide the trainee, or answer questions to facilitate the trainee’s better understanding of the ECDIS. navSkills CAT is offered to shipowners on

The new eCDiS have two easy access operations' bars fitted.

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The two eCDiS with keyboards operated by track balls.

a subscription basis with a yearly flat rate charged per workstation. The fee covers the workstation’s provision and maintenance and access to the training application software and help desk. This means that the shipowner can train as many navigators, as he or she wishes within the subscription period at a fixed fee and because the training is utilising cloud computing, the training is available 24/7. Alternatively, navSkills CAT can be accessed on a pay-as-you-go plan depending on the number of certificates issued (the service fee depends on the number of trainees receiving the service). Subsequently, the training programmes for the new ECDIS FMD-3200/FMD-3300, as well as refresher training modules will be developed at a later date, both of which will be offered within the same subscription fees. Furuno said that this means that owners having the current ECDIS in their fleet do not have to worry about additional costs when introducing the new ECDIS in the fleet, because the type specific training for both models will be available within the flat yearly fee. The navSkills CAT will be distributed

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through Furuno’s worldwide distribution network. In early 2011, the company introduced end user training, which included the ECDIS training activities in the Furuno organisation and the distribution network. The aim was to establish a platform for ECDIS training provided under the Furuno brand, which meets a quality standard set by the company. Furuno’s ECDIS training quality standard is based on the continuous study on the policies governing type specific training set by the various flag states and through ongoing discussions with vetting companies, shipowners and other stakeholders, to ensure that the type specific ECDIS training provided by the company will meet the current and future requirements of the shipping industry. Furuno said that it had realised that it was necessary for manufacturers to establish such working principles to manage and ensure quality and valuable training to the shipping industry. Consequently, the shipowners will have more competent navigators on board their vessels bringing even more safety and efficiency to the ship operation, the company

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said. As mentioned, both the new models are compatible with the Admiralty Information Overlay (AIO). The company said that it will also release a software update, which will make the AIO available on its existing FEA models. AIO is a free service to Admiralty Vector Chart Service (AVCS) customers. It is the only service available that includes worldwide Admiralty Temporary and Preliminary notices to Mariners and new EnC Preliminary notices to Mariners, which identify navigationally significant differences between EnCs and Admiralty paper charts. Furuno’s ECDIS models allow the AIO to be switched on and off by simple operator action, enabling navigators to choose to display the overlay when it is needed. Significant features from the overlay are added to the EnC by using Mariners’ Objects, which ensures the information is always available when the ECDIS is in the monitoring mode. kazuma Waimatsu, Furuno’s general manager of products planning and marketing department, said: “The ability to show the additional Admiralty Information Overlay layer on our new ECDIS models will help navigators ensure that they are using the most up-to-date information available to optimise route planning. The Overlay makes it easy to quickly see information that is essential for all navigation tasks.” Jason Scholey, AVCS product manager, said: “The Admiralty Information Overlay is our vehicle for getting the best possible information in front of the mariner, to improve the safety of navigation and the efficiency of passage planning. We are working closely with ECDIS manufacturers like Furuno to make the Overlay available to as many mariners as possible and we expect two thirds of new ECDIS units sold worldwide to have Overlay compatibility by the end of the year.” TO

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BNWAS and ECDIS from SAM Electronics Designed for simple installation on board both new and existing tankers of any type, or size, in accordance with iMo carriage regulations, which became effective last July, the BNwaS ensures enhanced safe vessel operation via continuous surveillance of bridge activities, including detecting any operator malfunctions that could lead to accidents, the company said. Alerts can be automatically relayed to the ship’s Master and other watch personnel with the alarm system and all backup call functions and timer settings controlled and handled from the bridge console’s centralised alarm panel. Basic system features include main alarm panel with dimming, ship accommodation alarm panels, an assist call facility, motion sensors, reset push buttons, activation switch, reset timer inputs from radar and force activation via steering gear and/or Trackpilot supported by flexible interfaces. Systems also meet latest IEC 62616 performance standards and are optionally available either as stand-alone units, or for integration as part of SAM’s nACOS

Platinum range of allpurpose integrated bridge management assemblies. They are type-approved by major international classification societies such as ABS, GL, Class SaM's new BNwaS. nk and RInA. Meanwhile, SAM has also recently introduced EcdisPilot Basic, a new space and cost-efficient ECDIS, specifically designed for retrofit applications on board vessels in accordance with latest IMO carriage requirements.

SaM's eCDiS was specifically designed for the retrofit market.

Simple to install, operate and update, the compact stand-alone 22 inch panel PC system with a high-resolution TFT display, is fully compatible with all main chart databases such as EnC S57/S63, Admiralty AVCS and ARCS and C-MAP CM93-3. Features include an extendable navaid sensor interface module, advanced route planning facilities, a separate layer for user objects (notices to Mariners), overlays of ARPA and AIS targets, on-screen nAVTEX information and tidal and current data. In addition, there is also an integrated conning page. Depending on class, flag and/or customer requirements, system capability can be extended to include options for a printer, installation of uninterrupted power supply (UPS) facilities, and an interface unit for external radar overlays. TO

Jeppesen joins to Pay As You Sail initiative Jeppesen has unveiled the company’s new openeNC, its take on the pay as You Sail (paYS) option. The openeNC solution joins its established dynamic licensing and direct licensing offerings. These different licensing methods distribute EnCs through Jeppesen’s DnV approved SEnC format, which is claimed to be highly optimised for easy installation and updating. This format also saves time since no verification, or compilation of data on board, is required. The SEnC format is also claimed to be supported by the majority of ECDIS systems on the market. “While PAYS options may seem like the simplest option for buying EnCs, this may not be the case in many situations,” said Paul Elgar, Jeppesen OEM strategic business manager. “By providing a choice of flexible EnC licensing services, we can help customers find their own best and most affordable solutions. Seamlessly combining different licensing options is also a help in areas where hydrographic offices do not 20

accept PAYS.” Jeppesen’s OpenEnC PAYS solution, which was scheduled to become available shortly after SMM Hamburg, provides free worldwide coverage of EnC charts on the ECDIS for route planning purposes. When a vessel sails, a tracking service, or device, reports the ship’s continual position and the customer is then invoiced for the charts along the route in the two best scales available. OpenEnC is claimed to be an excellent solution for vessels that do not regularly sail on any fixed route, because the vessel always has all charts available and can plan and sail a new route at a moment’s notice. Using the Jeppesen Direct Licensing standard, vessels can license EnCs for any combination of three-, six- or 12 month durations. The 12-month option is the most cost effective for vessels that run a regular route with no deviations. As for Jeppesen Dynamic Licensing, this system instantly provides EnCs for viewing in a planning, or voyage setting. Similar to OpenEnC, there are no external permits

(licenses) that need to be loaded prior to use. When enabled in a compatible ECDIS, the customer will be charged for all charts that are viewed, or used, whether for route planning, or navigation. Dynamic Licensing opens the EnCs for the minimum period allowed by the Hydrographic Office (for example three months), and when that period has passed the chart will automatically expire. It is claimed to be a cost effective option when charts are needed for shorter time periods. For example, when a ship purchases licenses for a normal fixed route using direct licensing, it can augment its regular route with dynamic licensing when it’s necessary to deviate from its planned voyage to go to another port. “Jeppesen is unique in offering these three different solutions to the maritime industry,” said Elgar. “We analyse our customer’s requirements and offer them the EnC licensing option that best suits their needs. We also monitor the customer’s EnC use over the course of the subscription period to determine if it is actually optimal for that vessel.” TO

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Mediterraneanplacid sea or mythological beast? While the Mediterranean may live up to its placid image during the summer season, it packs a lot of punch, as winter approaches*.

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s the low weather track intensifies over southern Europe, it is not uncommon to have widespread heavy weather over a large portion of the Mediterranean. Westerly gale conditions can extend for hundreds of miles from the coast of Spain to the south of Sardinia and into the Sicily Strait. This long unbroken stretch presents a full head-on sea to vessels sailing westbound towards the Gibraltar Strait. While these synoptic scale, or large-scale weather events can be a significant challenge, it’s quite often the smaller scale wind events that can catch seafarers off guard, resulting in vessel damage each year. The Mediterranean Sea is home to perhaps the highest concentration of terrain induced localised winds in the world. These winds come with some legendary names, such as the Mistral, Sirocco and Levanter, to name but a few. The Mistral wind is perhaps the most famous terrain induced wind. It develops over the Gulf of Lion when strong cold fronts push through Western Europe. The northerly winds are funneled south through a narrowing gap formed by the Pyrenees Mountains of Southwest France and the Alps along the eastern border. It is not uncommon during one of these events for winds to reach speeds of 50-60 knots as they push out over the Gulf of Lion. Along the way, they create heavy sea/swell conditions at times, which can reach all the way South Southeast to the coast of north Africa. The Sirocco winds are hot winds from the south formed when low latitude gales track east through the southern Mediterranean Sea, or along the north coast of Africa. In advance of the cold front, the southerly winds gather strength and stream up into the Mediterranean. They will often carry with them enormous November/December 2012

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Higher resolution data clearly shows the band of increased sea/swell conditions building south of a localised wind event south of the aegean Sea (circled).

quantities of sand from the Sahara Desert. It’s common for these winds to achieve speeds of 30-40 knots generating high seas along with reduced visibility with the dust and sand suspended in the air. The Levanter is a strong easterly wind that develops when strong high pressure builds to the north of Gibraltar Strait over the Bay of Biscay region. The east winds south of the high-pressure area are forced through the narrowing waters of the western Mediterranean, also known as the Alboran Sea. It is this narrowing that helps to increase the velocity of the easterly winds much the same way placing a thumb over the end of a water hose increases the velocity of the water streaming out. These winds can strengthen further into the narrow waters of the Gibraltar Strait with conditions reaching 40-50 knots during a strong Levanter.

TAnkEROperator

A number of other terrain induced localised winds occur in the Adriatic, Aegean Seas and across the waters of the eastern Mediterranean. Higher resolution data clearly shows the band of increased sea/swell conditions building south of a localised wind event south of the Aegean Sea (see above). The scale of these wind events can be challenging for forecasters to identify. However, new tools developed by AWT are allowing us to see these events with more clarity. The company uses high-resolution data that has been tested in the Mediterranean and was successful in identifying these localised wind events with more accuracy, compared to previous model data available. With the onset of the winter season, existing heavy weather conditions cannot be ignored. TO *This article was written by Mike O’Brien, AWT’s operations manager and was published in the company’s newsletter. 21


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NAECA- lessons learnt from the California experience On 1st August, 2012, the North American Emissions Control Area (NAECA) took effect, mandating the use of 1%, or less sulphur heavy fuel oil (HFO), or residual fuel oil for vessels within 200 miles of the North American continent.*

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arlier, California had mandated the use of distillate fuel when vessels arrive within 24 miles of its coastline on 1st July 2009. Lessons learned from California’s experience with the use of distillate fuel may benefit operators, as the next phase of NAECA comes into effect on 1st January, 2015 when the IMO will mandate the use of distillate fuel within 200 miles of the North American coastline. As that time draws near, industry observers have argued about the possible methods in which operators will comply. Since June 2012, several developments have helped the ship operator comply with the 1st August mandate. Foremost, the US Environmental Protection Agency (EPA) provided an interpretation of fuel requirements. It stated in guidelines released in June 2012 that the minimum standard for 1% low sulphur fuel (LSFO) viscosity will be not less than 11 cst. This is significant because at the time it was thought ship operators would have a difficult time sourcing the required 1% LSFO and have to switch over to low sulphur distillate fuel with its assorted engine compatibility issues the same issues that California experienced. California experienced a 300% increase in loss of propulsion incidents since its distillate fuel (viscosity 1-2 cst) regulation came into effect in 2009. The compression ignition diesel engines used on board modern vessels of over 10,000 gt use 3% sulphur HFO. This fuel must be heated to flow through the fuel lines because at normal ambient temperature, either LSFO, or high sulphur HFO has the consistency of tar. In contrast, distillate fuel does not require the high temperatures and the thermodynamics of cooling metal, gaskets and seals resulted in leaks, along with filter clogging from engine buildup scrubbing. 22

In addition, the cost savings of using HFO are significant over the use of distillate fuel, which is typically around $300 more per tonne. The 1% LSFO must be heated just as the 3% HFO, so the engine/fuel compatibility issue was solved, at least between 200 to 24 miles off the coast of California. EPA recognised there may be supply problems and allowed ship operators, if the required fuel was not available in ports outside the NAECA, to simply notify primarily EPA and the US Coast Guard no less than 96 hours before entering the area. Unlike the fuel switchover required 24 miles off the coast of California, which typically took one to two hours, to enter the NAECA, fuel must be completely switched to 1% sulphur fuel before arriving in the area. Det Norske Veritas (DNV) and Lloyd’s Register (LR) have developed calculators for estimating fuel changeover times to remain in compliance. The use of the calculators should suffice for demonstrating compliance with the 1% regulation in terms of a timely switchover. In addition, the Bunker Delivery Note (BDN) supplied with the recently loaded bunkers will

demonstrate compliance with the 1% LSFO rule. If the overseeing regime (EPA) suspects suspicious fuel switch procedures, or supply issues, it may take its own sample. The problem with taking a shipboard sample can be any one of many. The vessel has no control with the delivery medium, which means that the bunker oil delivery lines, bunker barge, or vessel fuel tanks could have residual amounts of the high sulphur fuel leftover that could increase the sulphur content

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INDUSTRY – bUNkERS of the oil sample. The other issue is where should the sample be taken within the vessel’s engine room that is safe while providing an accurate sample? At a meeting held in Tacoma, Washington on 26th June to discuss the NAECA, the USCG advised that the LSFO should meet the International Standard Organisation (ISO) 4259 standard. This means that the sulphur content could deviate in laboratory analysis results from 0.94% to 1.06% sulphur and remain in compliance. Meanwhile, EPA said that LSFO should not exceed the IMO mandated 1% sulphur. This determination by the agency holds sway over compliance issues. Refinery fuel blenders most probably will take the sulphur percentage to 0.95% allowing for a 5% margin in laboratory analysis repeatability. As for sludge burning incinerators, the USCG said that the use of an incinerator to break down sludge greater than 1% sulphur content generated on board ship is permitted by MARPOL Annex VI Reg 16, including in the Emission Control Area (ECA). But, the EPA said Reg 14 only applies to the use of

fuel oil, so burning sludge in an incinerator is not regulated under Reg 14, but only under Reg 16. Fuel oil and sludge oil are clearly distinguished within the MARPOL definitions. In the spirit of the ECAs, the EPA would not recommend that a ship burn sludge oil, or other sludge with a sulphur content that might exceed 1% within the ECA. Upon further study, a consensus will be reached with a final determination of this anomaly. To achieve the 1% sulphur content of the LSFO, refinery blenders are using low sulphur cutter stocks, which tend to have high Aluminum (Al)+Silicone(Si) levels (cat fines). The issue with increased cat fines is the impact on filters and purifiers. With poor preventative maintenance, debris from the filters and purifiers ends up in the high pressure fuel system causing worn pumps and injectors plus adverse piston ring and crown groove wear. This equates to more costs for the vessel operator (see Page 24). With California’s regulations in effect, the following scenario may unfold on board vessels trying to comply with IMO and CA regulations. At 200 miles out, the ship will use

LSFO with the increased metal wearing cat fines but with good fuel viscosity, which is more forgiving to worn parts. Then switch 24 miles out from California to the less forgiving distillate fuel with its well documented increased incidents of loss of propulsion (LOP) incidents. California will continue to face the risk of perhaps an increased rate of LOP incidents that could cause an oil spill due to an allision, collision or grounding. TO

*Footnote: Author Capt Jeff Cowan graduated from the California Maritime Academy in 1975, and then began his seagoing career by sailing on board a variety of vessels. He first sailed as a licensed Third Mate in 1977, ultimately earning his Master’s license. He ended his seafaring career by sailing as Master of his last ship, APL China, in 2009. Since his vessel was one of the first at APL to perform the California distillate fuel switchover, he remains very interested in maritime fuel issues.

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Cat fines – an assessment of levels in residual fuels Many observers believe that legislative requirements are the main operating concern in today’s shipping industry*.

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t has, for example, been well-established that continued legislative reform has a profound effect on the quality of fuel used globally, as tighter restrictions lead to an increase in the treatment process to which fuels are subjected. Issues relating to the quality of marine fuels continue to cause headaches for shipowners, operators and fuel suppliers. Increased blending operations and techniques, such as hydro-processing, result in significant changes to the inherent make-up of marine fuels and can lead to serious problems when used. Issues relating to the density, viscosity and sulphur content of the supplied product have been - and will continue to be - a day-to-day occurrence for shipowners and are something they have learned to live with. Meanwhile, other issues such as the presence of chemicals, introduced via a blend/cutter stock, or stability-related concerns, are more serious and are being seen

ARA - April 2012

ARA - June 2012

more frequently. Again, such issues are being examined and positive steps are being taken to understand the implications of using such fuels rather than simply attempting to de-bunker at the first opportunity. There is, however, one issue that still strikes fear into the hearts of all shipowners and operators - catalytic fines. Horror stories of catastrophic engine failure based on the presence of cat fines are prevalent within the industry, with each owner, operator, or supplier having their own experience with regard to this particular issue. In recent years, these fears have been heightened as a direct result of the changes in permitted sulphur levels in fuels. The increasing use of a wide variety of blend/cutter stocks has resulted in an increase in levels of cat fines in low-sulphur fuel grades. Statistical data taken from the Intertek Lintec ShipCare Services submitted sample testing programme, as shown below, provides

a good indication of the issues involved. The charts highlight the levels of cat fines compared with the sulphur content of fuels supplied in the second quarter of this year from the ARA (Amsterdam/Rotterdam/Antwerp) region. It is clear that a much higher number of lowsulphur fuels have combined levels of aluminium and silicon in excess of 40-50 ppm compared to other fuels tested. The main reason for this trend is the application of blend/cutter stocks, which are used to reduce the overall sulphur content of the fuel. The fluid catalytic cracking process produces a number of different products such as gases, light cycle oils and intermediate-toheavy cycle oils. It is the heavy cycle oils that are drawn off as the ‘bottom stream’ product and might contain residual catalysts not removed during the refining process. Slurry oil, as it is commonly known, can have solid concentrations of up to 1,500 ppm

ARA - May 2012

Average Content - Al & Si

The charts highlight the levels of cat fines compared with the sulphur content of fuels supplied in the second quarter of this year from the ARA (Amsterdam/Rotterdam/Antwerp) region.

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INDUSTRY – bUNkERS and is considered to be a ‘product’ of the refining process, which needs to be disposed of. In many cases, slurry oil is treated to remove the bulk of the remaining catalyst by recycling it through the catalyst riser in combination with the cracker feed stock oil. This process ‘clarifies’ the slurry oil and it is the clarified slurry oil that is used as a heavy fuel oil blend component. Although this process does remove significant quantities of the catalyst, in many cases some still remains and might be introduced into the fuel to be supplied. It is clear that such blending operations have had a significant effect on levels of cat fines in low-sulphur residual fuels. However, the general perception that overall levels, across all residual grades, are on the increase would appear to be something of a fallacy. Test data shows that average global levels sit between 25-28 ppm and, with the introduction the 2010 version (latterly the 2012 version) of the ISO 8217 marine fuel standard, a greater degree of security should be felt by fuel purchasers. However, despite a reduction in the acceptable combined levels of aluminium and silicon in the ISO 8217 fuel standard - from 80 ppm (mg/kg) to 60 ppm (mg/kg) depending upon the grade of fuel

purchased - the presence of cat fines is still a serious operational concern. So why are serious operational issues still seen? The answer is not simple. First and foremost, instances of high levels of cat fines in marine fuels have not been eradicated. One of the other main issues for consideration concerns the size and orientation of the particles present within the fuel. Traditional analysis techniques look at the total quantity of cat fines in the fuel supplied, but they do not take into consideration the size and mass of the particles present. The size, mass and shape of the particles within the fuel have a significant bearing on the ability of the on board centrifuges to remove them during treatment prior to injection. As a result, a number of the smaller particles do not have a sufficient mass such that they can be removed by centrifugation and as a result, pass through into the engine system. If the quantity of these smaller particles passing into the engine system is sufficiently high, increased levels of wear damage will be witnessed. In many cases, the damage seen will be on a par with that experienced when injecting fuels with levels of cat fines in excess of the 15 ppm limit at the point of

injection. It is vital that owners and operators fully understand and appreciate the value of appropriate treatment and monitoring processes in an attempt to limit damage as a result of catalytic fines. The implementation of rigorous planned maintenance schemes, coupled with regular purifier performance checks, will offer a greater degree of security in ensuring that unnecessary damage and costs are avoided. TO

*This article was written by Michael Green of Intertek Lintec ShipCare Services.

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Inatech up in the clouds Inatech launched a new Marine Solutions Unit to offer real-time management systems for bunker operations at October’s SIBCON conference.

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accounting. The company said that the data provided can help companies to save on fuel by not having vessels bunkering in ports where fuel prices are high when alternative ports are holding lower prices, or by avoiding underutilisation of vessel capacity. BunkerTECH bunkering solution is a fully integrated, end-to-end solution for managing all essential aspects of bunker trading, from risk control and procurement to operations, inventory and sales. This software has been developed to meet the needs of all business models, including brokers and traders (through back to back RFQs/spot), suppliers with inventory buying under Term Contract and bulk suppliers, matching bulk purchases with sales. It affords operators a 360 deg view of their businesses and Responsible p e tank cleaning g performance in realtime. It also has the capability to perform ‘what-if?’ analysis with different market scenarios to improve hedge effectiveness and includes an SC 15TW integrated inventory management module to SC 45TW provide a real-time view of the cost of intank and in-transit Same make inventory. A trading and risk makes sense management module Select Scanjet for both your uses the real-time fixed installed and portable inventory information tank cleaning equipment to provide a view of SC 30T the market, risk exposures and the profit and loss Phone: + 46 31 338 7530 implications of E-mail: sales@scanjet.se decisions. Web: Web: www.scanjet.se www.scanjet.se “Bunkering costs are easily the largest single big-ticket item in

mong the new products are a BunkerTECH shipping solution, developed to help shipping companies manage procurement, risk and fuel costs, and a BunkerTECH bunkering solution, developed to support bunker fuel suppliers and traders. Both solutions will be offered ‘in the cloud’ on a software as a service basis, hosted on a customer’s own network, or on a customer’s preferred site. This software can be integrated with other standard shipping and bunkering technology management systems. BunkerTECH shipping solution provides analytical tools and processes for functions, such as bunker procurement, claims management, risk management and

Responsible R ible ttank k cleaning l i g

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Jean-Herve Jenn, Inatech CEO

shipping operations. So anything that can improve operational efficiency and reduce the cost of bunkering has major game-changing potential at a time when the shipping industry is under severe price competition,” said JeanHerve Jenn, Inatech CEO. “Our fully integrated end to end solutions are tried and tested and are already producing significant benefits for major customers. He explained that the company had been developing software for marine services at a bespoke level, but had now decided to market the software globally. The company’s major shareholder is Chemoil, now part of the Glencore group, and in 2003, the fuel supplier and trader asked Inatech to develop a system for handling bunker fuel. To bring the software to the shipping market, it was re-launched at SIBCON using today’s ‘cloud’ technology. Jenn explained that this system would suit mid-size companies looking for this type of service, as larger companies tend to have developed their own internal IT instruments to store data. He said that the service was more to do with process efficiency for example, by avoiding costly mistakes when placing trades. He said that many companies used to keep records of large trade orders on spread sheets, which, due to human error, were prone to mistakes. About 20 parameters have been built into the solution thus far, such as the optimum amount of fuel needed for a voyage and the optimum voyage where the cheapest fuel could be purchased, availability in a port, etc. Jenn also said that an updated version would be launched in March of next year. TO

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LNG as fuel takes off

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The rush to install LNG bunkering facilities is gathering pace with the help of major class societies.

or example, DNV has provided a market forecasting study, a regulatory analysis and modelled the LNG supply logistics for Flemish ports. DNV’s involvement formed part of an initiative between the Flemish Government and the port authorities of Antwerp, Zeebrugge, Ghent, plus energy company Fluxys, to publish a feasibility study on LNG bunkering. The Government is now acting on DNV recommendations to ensure the safe introduction of LNG bunkering at the ports. This market study led to a forecasted LNG bunkering demand for each port derived from shipping and world energy market forecasts, while the logistics model allowed the ports to simulate, compare and calculate costs of different LNG bunkering supply chain options. The combined results serve as strategic and tactical decision support tool for the ports in developing their LNG bunkering infrastructure, they said. The legal and regulatory analysis resulted in a comprehensive listing of applicable local, regional, national, European and international standards and regulations, as well as in 23 concrete recommendations indicating gaps in the current framework. This part of the report is now available online http://www.flanderslogistics.be/fpa/lngrapport.pdf and the recommendations included the need to develop operational bunkering procedures, plus procedures for metering, measurement, fuel sampling and quality control. In addition, there is a need to initiate the process for accreditation of LNG bunkering companies and a need to perform training needs’ analysis for people who board LNG fuelled vessels in their line of duty, for example, pilots, surveyors, government inspectors, customs officials and rescue services personnel. “Through the realisation of this study on the different aspects for the bunkering of LNG in the Flemish ports, the stricter standards of the IMO for marine fuel sulphur emissions are anticipated and an important step has been taken towards providing LNG as shipping fuel in the Flemish seaports,” said Hilde Crevits, 28

Flemish Minister for Mobility and Public Works. “Shipowners are working hard to meet the increasingly strict emissions requirements and ports are now responding as the popularity of LNG is becoming apparent,” said Torgeir Sterri, DNV regional manager Central Europe. It is anticipated that within the next few years a considerable percentage of vessels will be LNG fuelled, particularly in short-sea shipping and especially in Emission Control Areas. Ports are gearing up to accommodate this transition and a significant increase in the number of LNG bunkering facilities is expected by 2020, DNV said. Earlier, Gasnor contracted DNV to conduct the risk studies that will be the basis for the authorities’ approval of an LNG bunker station at Brunsbuttel, located at the confluence of the River Elbe and kiel Canal. Important elements in the risk analysis are a safety screening of the site and a safety analysis for the chosen location in terms of quantitative risk analysis, emergency planning and nautical risk analysis. In addition DNV will be supporting the communication process with approval authority LLUR (Landesamt für Landwirtschaft, Umwelt und ländliche Räume/agency for agriculture, environment and rural areas). Brunsbüttel Ports GmbH is owner and operator of three ports at Brunsbüttel Elbehafen, Oilport and port of Ostermoor. The Elbehafen is a multi-purpose port having a water draft of 14.4 m, which provides ideal conditions for an LNG bunker station for shipping from and to Hamburg, as well as for all traffic on the kiel-Canal, the port said. LNG ATb concept Another class society, ABS, has granted approval in principle (AIP) to a new LNG and regasification articulated tug barge (ATB) concept introduced by Waller Marine. The vessel will have the ability to load LNG from existing LNG terminals, liquefaction facilities, or traditional LNG carriers and transport the gas to existing tanks, traditional LNG carriers, trucks, or seagoing vessels using LNG as a fuel. The barge will also be equipped for

regasification of LNG directly to a pipeline, or to a power plant. An additional feature will be the use of natural gas as a fuel in the dual fuel engines of the tug to drive the ATB unit. The benefit of the LNG ATB RV is that it will allow LNG to be moved and delivered more efficiently on a small-scale basis in locations where large LNG infrastructure would be cumbersome, costly, and time consuming, ABS said. ‘C’ type tanks The barge will be fitted with independent Type ‘C’ LNG tanks. To make most efficient use of the hull volume and maximise the cargocarrying capacity of the barge, bi-lobe tanks of maximum width will be centered along the barge centerline. The cargo containment system will be split into four longitudinally located independent tanks, with each tank supported by a simple structure that isolates the tanks from hull loads. According to Waller Marine, these tanks will be constructed of either 9% nickel steel, or Stainless Steel AISI 304L, to contain the cargo at a minimum temperature of -163 deg C. ABS worked with Waller from the project’s inception and has been the primary certification body in carrying out reviews, including conducting a programme review. “ABS has been a great resource in developing the LNG ATB RV product,” said Waller Marine vice president- gas solutions Bill Hutchins. “By conducting multiple meetings – including a HAZID (hazard identification) – ABS has helped us to ensure safety and regulatory aspects have been appropriately addressed.” “ABS has worked closely with Waller Marine through the development of the LNG ATB RV,” said Roy Bleiberg, director engineering, ABS Americas. “We are pleased to be part of a project with the potential to improve the environmental impact of hydrocarbon emissions.” Since AIP was granted, Waller Marine has moved into the detail design phase with a goal of creating multiple variations for clients around the world. TO

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Bunkering is a people business Today, the tanker industry faces many challenges. When it comes to helping tanker companies to navigate these most challenging of market conditions, the bunker industry has a vital role to play*.

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ndeed, at a time when bunker bills represent two-thirds - and rising - of the operating costs of a vessel and when bunker companies have extended lines of credit worth billions of dollars to the shipping industry as a whole, the importance of the bunker industry is self-evident. But when it comes to providing its customers with the specification and quantity of fuel required at the right time, in the right location and at the best price, is the bunker industry necessarily taking the right approach? The bunker industry has changed a lot in recent years, largely for the better. From its origins as a largely local, fragmented industry, bunkering has consolidated, professionalised and globalised. Today, the leading companies have adopted an array of modern business practices and corporate standards to ensure a consistently high quality of service, while technical innovation has improved the handling of fuel products. In an increasingly complex, volatile energy market, the bunker industry also has access to far more sophisticated risk management tools. However, despite this progress, something is missing. It doesn’t lie in further technological advances, new financial tools, or management processes. It lies in going back to the roots of bunkering and rediscovering the human touch in our working relationships. Simply put, as bunkering has modernised, it has become far less personalised. In today’s acutely challenging market, this can be a problem. Too often, bunker traders are restricted from using their judgement, their experience, their instincts and their relationships with suppliers, brokers and customers. Processes and systems get in the way of building relationships and taking initiative. On top of this, the interaction between traders, suppliers, customers and other supply chain partners has become more formal, more transactional, less personal. Trust seems to be a commodity that is valued less and less. Of course, there is a balance to be struck. November/December 2012

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But in my view, the pendulum has swung too far towards a dependence on process and too far away from a personalised approach to meeting customers’ needs and solving their problems. Customers want to work with traders have earned their trust and that can be relied upon to get the job done, every time. That is what going back to the roots of bunkering is all about. The same approach extends to lines of credit and risk management. Customers are under no illusions about the disparity between the credit terms they want and the payment terms sought by suppliers. However, the ability to pick up the telephone to discuss these issues with a trusted trader is critical. Customers need a trader that understands their business and has the confidence of all parties to get the deal done. Counterparty risk has hit new levels of importance. It is this personal relationship, built on trust as well as transparency, that serves to create a more honest and less transactional foundation for successfully conducting business. This might sound counterintuitive in today’s market. After all, given the level of financial exposure of the bunker industry and the perilous state of the balance sheets of many tanker companies, formal due diligence is vital. But this is emphatically not about doing business on a nod and a wink. It is about combining the best of modern business practices with the best of bunkering’s traditional values. After all, if a bunker trader is charged with sourcing the product that you need, advising on hedging instruments, or agreeing a line of credit, it is imperative for them to truly understand the commercials of your business, the needs of your vessels and your approach to risk. Of course, the benefits of a strong relationship between bunker supplier and tanker owners extend both ways. Tanker companies need the product, a good price and competitive payment terms, just as bunker companies want the business. A partnership

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built upon a close working relationship is mutually beneficial. If a sustained recovery is to be secured for the tanker sector in the months and years ahead, the bunker industry will need to play an integral part. Bunker companies must continue to embrace technical and commercial innovation in order to meet the high standards expected by their tanker customers, but must also trust the instincts of their traders, give them the freedom to go the extra mile to meet their customers’ needs and encourage them to invest in building strong relationships, built on trust. TO

Lars Moller, CEO Dynamic Oil Trading

*This article was written by Lars Møller CEO of Dynamic Oil Trading. Dynamic Oil Trading is a new global trading company for marine fuels and lubricants. Launched in 2012, the company is headquartered in Singapore and operates globally, with plans to expand further into Asia, Europe and the Americas.

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Training- guidelines needed There continues to be a great deal of disagreement and uncertainty as to just what constitutes effective training for personnel looking to work in the maritime security sector.

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rustratingly, the answer remains inherently simple but continues to be masked by elements of bureaucracy and misguided advice, warned security concern 3rg. The company has been working as a part of the ‘Security in Complex Environments Group’ (SCEG) to try and address the key driver issues in order to create clarity for both private maritime security companies (PMSCs) and for service leavers looking to gain the credentials necessary for work as privately contracted armed security personnel (PCASP). Many PMSCs have historically insisted upon personnel obtaining the ISPS Ship Security Officer (SSO) qualification, so that they can demonstrate to client companies the people who will be deploying on their shipping fleet are suitably ‘trained’. The SSO course, which ‘sounds’ like it fits the bill, was never designed to meet the needs or the conduct of anti-piracy operations, a fact that has now become more widely accepted throughout the security sector and is in fact understood by more and more shipping company representatives. A number of maritime security operator (MSO) courses have been developed to address the need for relevant, task-specific training. This is undoubtedly a positive move but brings with it the potential for further abuse. Below are two examples of how SSO and MSO training may be applied in practice: SSO: A ship enters a port with a raised ISPS security level (eg Level 2). The ship’s SSO must now instigate further security measure on board in line with the ISPS code. This may include: increased screening of goods being brought on board, restricted access to areas of the ship, restricted shore leave for ship’s crew, conduct of ships searches, etc. MSO: A vessel has been identified on the radar at a distance of eight miles with a CPA (Closest Point of Approach) of 0.2 of a mile. As the vessel continues to close, the maritime 30

security team leader requests that the Master alters course. After changing course to port, the tracked vessel also alters course again reducing the CPA. The maritime security team is ‘stood-to’ donning body armour and weapons, etc. The SSO role is indeed an integral part of general maritime security but is clearly not relevant with regard to an anti-piracy role. It is therefore critical that the right balance of training is applied for the role the course attendee will be undertaking. No guidelines A number of training companies have now seen the perceptible shift towards dedicated MSO-type training for the maritime industry (in the anti-piracy role). At present, there are no industry guidelines as to how long and what this training should involve. This present situation is currently being addressed within the SCEG in an attempt to alleviate vast differentiation between training providers. Service leavers should be aware of additional ‘bolt-on’ courses, or full courses, which have switched names (SSO to MSO) in order to ‘accommodate’ industry demands. These seem to give scant coverage of best practice and detail of how anti-piracy operations should be conducted – A little knowledge can be a dangerous thing! One other area training providers are now targeting is radar qualifications (largely RYA). Again, this sounds good in principle but applying information taught on a small craft ‘bobbing around’ in the Solent is very different to the systems that will typically be seen on board commercial tankers. Radar information taught should include radar tactics on an ARPA system, including both S band & X band and overlay software, such as AIS. This gives the MSO vital information, allowing much needed time for a graduated response to a potential piracy threat. At present there is no nationally recognised qualification within the Qualifications and

Credit Framework (QCF) that relates directly to becoming a PCASP (again this is something currently being addressed in the SCEG). A number of training providers have now attempted to ‘shoe-horn’ largely irrelevant maritime security qualifications together in order that attendees can claim course costs through ELCAS funding (ELCAS is the MOD’s enhanced learning credit administration system which allows service leavers to claim funding for recognised courses – level 3 and above). TO

Advice for leaving service personnel When looking for suitable training service leavers should take into account: n Training needs to be specific to the role they looking to undertake so they have a ‘real working knowledge’. n Try to ensure the course you undertake is recognised by the maritime security companies. n The MSO training syllabus they undertake should be cover a minimum of three days (not including SSO course material - It is doubtful anything less than this duration would allow enough information concerning the role of the PCASP to be passed on). n Be aware of ‘combined’ courses which maximise ELCAS funding. n Be aware at present of advertised ‘qualifications’. n Check the background and experience of ‘Industry Experts’ who will be passing on their ‘well found’ knowledge!!

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On board with security In this article, Doug Woodbridge, director & head of sales and marketing at S3 ID, looks at how innovation in high-security electronically controlled door locking solutions can provide the best protection for personnel and physical assets.

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security products can also be linked to S3 eLocator and eMuster systems (and other eSecurity products) to provide a fully holistic location awareness and security solution. Previously, in high risk environments such as these, it was a major challenge to provide both high-security with ‘lock-down’ capabilities in areas where only ATEX certified systems could be used, while still allowing safe passage for the evacuation of personnel in an emergency. The advent of these new, fully holistic integrated solutions overcame this and can be particularly valuable in a lock-down, or other emergency situation. The eLock’s are designed to be integrated (if required) with our own, or third party solutions in order to restrict access to critical installations within the tanker, thus enabling only suitably qualified and authorised personnel who possess an appropriate valid electronic ‘permit to work’ to access critical functionality. S3 ID offers a range of electronically actuated locking solutions to physically secure doors and restrict access. These solutions are available in both fail safe (open) and fail secure (locked) versions to satisfy varying client-needs. Innovations that combine eSecurity functionality with eLocator software suites mean that access to facilities and restricted areas can now be controlled, personnel movements monitored and access histories recorded, all within a single, S3 ID’s electronically-actuated eLock™ with new eLock.net Wi-Fi technology was shortlisted in the ONS 2012 integrated, safety and Innovation Awards. ecurity has now become an issue for all tanker owners and operators, with attacks off the coast of East Africa demonstrating the vulnerability of these assets. To reduce the risk of attack, many operators now avoid unpoliced maritime areas, as well as upgrading security with latest high security door locking solutions at bulkheads. Choosing a high security door locking system for tankers and FPSOs presents several challenges for owners and operators. As well as being able to withstand prolonged physical attack, they must also be certified for use in Zone 1 Hazardous Areas. Developing innovative new locking technologies for Zone 1 and 2 environments poses some very unique protection challenges.

November/December 2012

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Specifically, it requires an electronicallyactivated security system that can operate safely in potentially explosive ATEX atmospheres. S3’s high security door locking system, which meets this criteria is recognised to achieve two industry firsts: the world’s first electronically actuated Zone 1, ATEX (Ex) certified high security locking solution and now, with the addition of the optional wireless eLock.net technology (patent pending), the first locking system that can communicate its own status wirelessly without the need for an external power connection, or an internal battery. Whereas historically, the layers of security and personnel safety on oil and gas tankers tended to operate wholly independently, these

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INDUSTRY – ANTI-pIRACY security solution. This integrated approach provides operators with an enhanced method of protecting their workforce and assets. This new technology has already been supplied to operators in several regions of the world, as well as being used widely on both onshore and offshore facilities. Most recently, it was specified as part of a fully integrated awareness, mustering and access control solution for the BP Angola project. This safety location awareness and mustering access control solution incorporates an emergency lock-down ‘anti-piracy’ facility that allows the vessel to be secured ‘at the press of a button’. Latest developments within the eLock range has been the incorporation of a unique ‘Wi-Fi’ monitoring technology (patent pending). This means that the eLock.net Wi-Fi version requires no external or internal power source (battery) to communicate with and alarm entry, with a remote monitoring station. A wireless ‘status transmission’ comprising the locks unique identity and it’s status (locked, or unlocked) is sent each time the lock is opened, or closed - powered solely by kinetic energy generated by the opening or closing action. Each wireless enabled lock transmits its status wirelessly to S3 ID’s new ‘security paired’ eLock.net monitoring system, allowing independent, cable free remote monitoring and alarming of the protected doors state independently of any cabled route. This feature enables the lock to effectively ‘speak for itself’ and to communicate its unique identity and whether it is locked, or unlocked wirelessly to a remote monitoring system, which may be more than 100 m away. Conclusions High security Zone 1 ATEX certified solutions such as these are now providing tanker operators, and the oil & gas sector in general, with technologies that allow electronic tracking and safety mustering of personnel, while also using the same tag and infrastructure as a means of controlling access and protecting vulnerable areas. High-security electronic locking and access control systems for bulkheads clearly provide an enhanced level of safety and security for personnel. Ultimately, these innovations improve all round safety leading to an enhanced probability of withstanding both a forced entry and achieving a safe evacuation during an emergency. TO

Watch videos and download presentations from our 2012 conferences "making money in a tough market" www.tankeroperator.com/singapore.htm www.tankeroperator.com/hamburg.htm www.tankeroperator.com/toathapr2012.shtml

2013 events planned for Athens (April), Hamburg (September) and Singapore (October) If you are interested in speaking at or sponsoring any of our 2013 events please contact Mel Skinner on mskinner@tankeroperator.com

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INDUSTRY – ANTI-PIRACY

BMP4 - are ship owners doing their best? Maritime security services provider Ark Universal recently completed a research project, which looked at several vessels transiting the high risk area (HRA) of the Gulf of Aden. The company said that it was shocked with the results.

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isiting nine vessels that were not carrying armed guards, the company discovered that deployment of razor wire was inconsistent, doors to the superstructure were either not chocked, or loosely chocked with a baulk of timber, which could be rattled free. Easily accessible windows were also left unprotected. In addition, a potential risk on the bridge was where steel plates had been attached to the windows, which, in a worst case scenario would mean that should a blast take place on the bridge, the implosion and lack of ability for the force of explosion to escape would create more damage and injury than necessary. Even more worrying was the lack of use of a proper citadel, or muster point. Many seafarers’ lives were being put at risk simply by mustering them in an area adjacent to the

outside wall of the vessel – one layer away from bullet entry. It was found that citadels were not located in engine rooms but in areas such as dry store rooms, etc. As a result of the research, it was recognised that these problems highlighted worrying signs that many owners do not take enough notice of BMP4, or simple techniques that may save crews lives in certain situations. Allowing company security officers to implement BMP4 without any tactical awareness can lead the company and crews into a false sense of security and while BMP4 is a positive step in the right direction, it requires a subject matter expert to bolster these processes with operational experience. Ark Universal’s operational director Mr Harrison explained; “By carrying out simple security audits, shipowners can reduce the risk of being boarded and ultimately for the

determined pirate save crews lives. By adopting a ‘what if’ scenario, simple steps such as proper chocking of superstructure doors when at anchor, or sailing in high risk areas, is essential to reduce the risk of entry and theft, adopting a secure area for the citadel is vital and use of proper devices to protect the vessel, such as blast film for the bridge windows, or smoke cloaks, are a low cost security option when not using guards. “We believe that when over two thirds of vessels transiting the high risk areas around the globe do not use guards, then they really should take seriously the threat and carry out full security and risk audits on their vessels, there is simply no excuse as it really is common sense!” he said. Ark Universal is the sole agent for the Easi Chock rapid deployment door chock device. TO

GAC calls for a more systematic approach GAC Protective Solutions has published a new position paper calling for shipowners and operators to adopt a more systematic approach to sea defense that is based upon a multi-layered model of non-lethal risk mitigation measures, rather than automatically relying on armed guards for vessel protection. The position paper entitled ‘Sea Crime: Replacing The Fear’ has been published by GAC Protective Solutions, a partnership between GAC and maritime intelligence agency AKE. The company argued for an alternative approach to sea defence, replacing an undue reliance on armed guards on vessels 34

travelling through high-risk areas (HRA) with a more systematic approach based on the concept of the Maritime Risk Management Onion. This sets out a multi-faceted, layered approach to sea defence, based around the principles of intelligence, detection, communications, defend & deter, control and the safe haven. Rick Filon, GAC’s director of maritime security, said: “The number of successful attacks on vessels crossing the Indian Ocean has fallen from one out of every 4,000 vessels to around one in 13,000. While there is no room for complacency, shipowners and operators should certainly take the opportunity to undertake a rational assessment of all the security options available to them. History

informs us that the best security solution lies in a robust system, rather than a single device. That is why we believe that a security system comprising several layers of non-lethal threat mitigation measures, as set out in the Maritime Risk Management Onion, is the right solution.” GAC Protective Solutions provides a wide array of vessel protection services, including on board crew training, pre-voyage preparation, defensive configurations including the latest citadel door protection from Intelligent Engineering (IE), or remotelyoperated water cannon systems from Unifire, plus real-time intelligence alerts on global maritime security issues. TO

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TECHNOLOGY- PROFILE- WILHELMSEN SHIPS SERVICE

Keeping the tanker sector supplied with chemicals The tanker sector provides Wilhelmsen Ships Service (WSS) with a large market for its marine chemicals, which today includes the Unitor and Nalfleet brands, since the various takeovers and mergers down the years.

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n total, some 125 different marine products are available under four separate banners – cleaning chemicals, water treatment, bio-chemicals and fuel treatment. WSS has built up a presence in 125 countries serving 2,400 ports worldwide. The company handles around 214,000 deliveries per year involving some 24,000 vessels. As for the company’s chemical supply, all of the products are manufactured from a dedicated plant near Tonsberg and then distributed worldwide by container, which, once loaded, is trucked to one of the major European ports for onward shipment to more than 50 destinations. WSS has four main hubs located in Rotterdam, Houston, Singapore and Dubai, which cover the world’s main shipping centres. Chemical growth A major expansion of the chemical business was undertaken when in 2005, Wilhelmsen purchased Unitor, which itself had added Perolin, Rochem and Gamlen to its empire down the years. Unitor was later joined in the WSS family by nalfleet in 2011, which again helped to enlarge the company’s market share and distribution network. WSS is now a division of Wilhelmsen Marine Services (WMS), as is Wilhelmsen Technical Solutions (WTS), which was formed in 2010 by the merger of Wilhelmsen Ships Equipment and Wilhelmsen Marine Engineering. The chemical factory is nearly 40 years old. A year ago it was renamed Wilhelmsen Chemicals and manufactures the Unitor and nalfleet branded products from its base outside Tonsberg, a town which gave birth to Wilhelmsen over 150 years ago. The plant has been awarded the ISO 9001 and 14001 November/December 2012

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certificates by DnV. The current 12,000 sq m site located alongside a fjord in southern norway houses a tank storage farm, the production, laboratory, distribution/packaging and administration buildings, as well as a deepwater jetty for the discharge of chemical tankers of up to 5,000 dwt. Chemical tankers import the products needed in bulk for storage and blending, coming mainly from Rotterdam in vessels, such as those within the Essberger/Broere group pool. The bulk chemicals are pumped from the tanker to the tank farm for storage and then when ready for use, to the blending tanks, some of which have a capacity of 30 cu m, Terje nygaard, managing director of Wilhelmsen Chemicals, explained

WSS has designed its own specific labelling system whereby all the information necessary for a customer is contained in a label and sleeve attached to the drum. This includes details of transportation, emergency centre phone numbers in case of accidents and a booklet containing user instructions, health and safety data sheets, etc. There is not much room for expansion, as the site is surrounded by a fjord on one side and private houses on the other and is also close to one of the largest leisure areas in southern norway. However, the company has overcome this hurdle by organising its automated production schedule to enable shifts to be introduced to maintain 24/7 working if necessary, especially during peak demand times.

Liquid chemicals are imported on small shemical tankers.

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TECHNOLOGY- PROFILE- WILHELMSEN SHIPS SERVICE nygaard said there were two main reasons for keeping production in one location in norway instead of opening a production facility in other perceived cheaper working countries. “First was the important question of keeping the right product quality, as it is more challenging to get supplies of uniform qualities of raw materials and packaging in different locations. “The second reason was that most of raw material development for our use is in our experience to be found in Europe, and there is also the savings that can be made by buying raw materials in bulk for delivery to one site,” he explained. nygaard said that all the products produced at the plant are made up of the company’s own chemical formulations, which can be tested at the laboratory. This facility also handles normal sample testing and undertakes trouble shooting should it be necessary on subjects, such as boiler and cooling water systems. Technical support can also be given to the worldwide customer service network. High automation The plant is highly automated, including the production line and the packaging facility, which helps to keep per litre production costs down. The facility had 104 persons fully employed at the time of Tanker Operator’s visit with another 25, or so employed during peak times. Out of these, there are several qualified chemical engineers, mainly employed in the laboratory and WSS also has people with good chemical knowledge in the company’s general business stream. Standard tank cleaning materials are produced in 210 litre drums and several major chemical tanker concerns form a good percentage of WSS’ customers. Engine room cleaning chemicals are distributed in 25 litre drums. The solvent-based chemicals manufactured are kept in steel drums, while the water-based treatment liquids are housed in plastic containers. Training is another important consideration when cleaning vessel spaces at sea with chemicals. This is undertaken both for inhouse personnel and worldwide reps, in addition to the customers and their seafarers. Training is offered in form of eLearning and by using in-house seminars and training sessions. WSS has also visited Philippine training academies to deliver training sessions in the use of marine chemicals. nygaard said that the company was determined to stay in the forefront of environmentally adapted solutions, by being 36

The whole production and distribution site is located alongside a fyord.

years ahead of impending regulations, both national and international. He said that the company had started to focus much more on cargoes and their reaction to cleaning agents. “We talk with flag states, the EU and national organisations about the correct use of chemicals on board ship,” he said. The company also keeps good relationships with its raw material suppliers and packaging material suppliers. The customers enter orders through a dedicated customer service centres, IT systems, face to face and by telephone. If an office is closed, then the inquiry is automatically re-routed to an open office. nygaard also explained that it was the company’s intention to keep the nalfleet and Unitor product brand names, as they were well known in the shipping industry. safety systems Tanker Operator was also shown one of WSS’ norwegian distribution warehouse hubs for the company’s products and safety services located at Drammen. As well as Drammen, offices servicing the norwegian shipping community are located at Stavanger, Aalesund and Bergen. A subcontracted facility is soon to be opened at Hammerfest to serve the growing activity in the far north of the country, including the northern Sea Route (nSR). All WSS service stations have global approvals for many of the major class societies such as Lloyd’s, DnV and GL. This is becoming a must for servicing of safety systems and products worldwide, the company said. For the tanker sector, the Drammen warehouse supplies and replenishes safety

equipment to vessels calling at the nearby Slagen and Rafnes oil refineries. One of the major safety services offered include oil spill equipment, which comes in one, seven and 12 barrel sizes and is described as ‘first aid for oil spills.’ Drammen takes care of orders from the norwegian market and supplies many of the Bergen-based tanker companies, as well as others. Most of the supplies are trucked, including pyrotechnics, which are banned from travelling by vessel, especially up norway’s extensive west coast. Self-righting 6 to 25person liferafts (throw overboard and davit launched) are another major outlet for WSS, especially since the liferaft exchange concept came into being. WSS’ norwegian liferaft service station is located at Aalesund. For davit launched liferafts, a weight load test is mandatory. The Drammen facility will also supply safety certificates for its equipment, both new and refurbished. Some customers are now asking for EPIRBS to be attached to the liferafts, instead of, or in addition to, flashing lights. WSS confirmed that it was looking into the concept of an EPIRB exchange service, similar to its successful liferaft exchange programme. Other safety services offered include CO2fixed fire systems, fire extinguishers and hoses, welding equipment, gas testing equipment and cargo cleaning systems, including complete cleaning unit boxes, which come in several sizes to fit different types and sizes of vessels. Water treatment kits are also available, including legionella test kits, which can give immediate results.

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TEchNology - profilE - WarTSila hamWorThy

Recent LPG orders boost major equipment supplier

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Wärtsilä Hamworthy has enjoyed considerable success recently in the niche LPG carrier market.

he company has won several contracts to fit cargo handling and other equipment on board gas carriers ranging across all size

segments. For example, a complete cargo handling package contract was recently won to outfit four newly designed 38,000 cu m LPG carriers to be built at Hyundai Mipo for Antwerpbased LNG/LPG operator Exmar Shipping. They will also be able to carry ammonia. These are the first LPGCs to be built by the yard based on their own developed design. They will also be able to carry ammonia. However, affiliate Hyundai Heavy Industries (HHI) has built around 30 LPGCs during the past seven years, or so and this new contract brings the number of Exmar LPG carriers fitted with the company’s cargo handling, plus other equipment, to 13. Wärtsilä Hamworthy is responsible for the complete cargo handling system for the newbuildings, including the engineering, piping, deck tank engineering, reliquefaction plant, Wärtsilä Moss inert gas generator, Wärtsilä Svanehoj cargo pumps, cargo heater and vaporiser, cargo control system, supervision and commissioning. All the equipment, plus the engineering services will be delivered in 2013 and the first vessel is scheduled to be handed over to Exmar during the first quarter of 2014. Builder Hyundai Mipo has increased the capacity of the four mid-size gas carriers (MEGs) by around 3,000 cu m from the more standard designs and has improved the hull shape to minimise the resistance through the water and optimise the vessels’ fuel consumption. They are claimed by Exmar to be of a flexible size, enabling them to adapt to the relatively large market for these types of vessels. For example, Statoil is a leading charterer of this type in the North Sea. Both the engine room and deck will be designed to allow the vessels to burn LNG, or 38

LPG, as fuel to reduce emissions and the vessels’ equipment has been designed to cater for the strict environmental regimes currently in place, especially in the North Sea. Wärtsilä Oil & Gas Systems’ LPG business unit director Stein Thoresen explained that the main machinery has been so designed that LPG as a fuel could be introduced in the future. A fuel supply system is currently under development and the vessels’ MAN main engines could be converted to burn LPG, he said. He also said that class society Lloyd’s Register, Exmar, MAN and the yard are currently in discussions, which will result in a decision being taken on the fuel to be used by the end of this year. For the large and ultra large size ranges (VLGCs/ULGCs), Wärtsilä Hamworthy has developed a new reliquefaction system complete with a condenser unit. This new arrangement consists of two reliquefaction units to handle the main cargo and to provide redundancy. The condenser unit is designed for the carriage of secondary cargoes. Efficiency improved Thoresen explained that the new system effectively reduces the number of units installed from four to two. He also said that the unit’s efficiency had been improved by redesigning the compressor to a variable speed drive system able to match the electrical output of the vessels’ auxiliaries, which is claimed to be able to save a substantial amount of fuel. For example, when loaded, a large LPG carrier could save around 400-500 kilos of fuel per day on her auxiliaries alone. Contracts were recently awarded to fit two VLGCs of 84,000 cu m capacity each building at Hyundai Heavy Industries (HHI) for Solvang. The vessels are scheduled to be delivered next year. These are in addition to contracts to fit units on board four VLGC newbuildings for SK Shipping, Pertamina and KSS respectively, also under construction

Wärtsilä's Stein Thoresen.

at HHI. At the other end of the scale, ethylene carriers are proving popular at the moment and the company has won contracts to fit cargo handling systems on board eight 12,000 cu m newbuildings under construction at Sinopacific for Jaccar/Evergas. The operator has also agreed options for a larger size series of up to 18,000 cu m capacity each. Another eight small LPGCs under construction at the Brazilian shipyard of Promar for Transpetro will also be fitted with Wärtsilä Hamworthy equipment. In the small size range, fully pressurised vessels are also proving to be popular, illustrated by StealthGas’ recent contracting of two 5,000 cu m and two 6,500 cu m capacity fully pressurised LPGCs at STX Offshore & Shipbuilding, which will also be fitted with the company’s equipment. Thoresen explained that Wärtsilä Hamworthy LPG carrier equipment is mainly aimed at the newbuilding market, except in certain cases where large older LPGCs are being converted for storage duties. He stressed that new vessel designs had only been delivered during the past five years, as improved performance allied to fuel and emissions savings, had become the norm, hence the need for new equipment to be designed and installed. TO

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TEchNology - Ship DEScripTioN - NiSSoS DEloS

Greek owner takes delivery of super efficient Aframax series Greek-based tanker owner Kyklades Maritime has recently taken delivery of the last in a series of six newly designed super efficient and environmentally friendly Aframaxes.

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he six Aframaxes were built by Samsung and designed by the shipyard with plan approvals undertaken by Kyklades’ technical department. They are each fitted with 12 cargo tanks able to load three cargo grades. The tanks have a total cargo capacity of 123,646 cu m at 98% load, excluding slops, giving a summer deadweight of 115,700 tonnes on a summer draft of just over 15 m. The slop tank capacities amount to a total of 3,868.4 cu m at 98% load, while the ballast tank capacity is 39,975.1 cu m per vessel. According to Kyklades’ superintendent engineer Commodore Constantinos Manikas, the main innovative equipment installed included:

n Main engine turbocharger with a variable turbine area (VTA) which, compared to a fixed turbine turbocharger, offers significant improvement in fuel efficiency, due to the possibility of part load optimisation. Use of the VTA leads to a reduction of soot and smoke at part load and an improved dynamic response of the engine. n Ozone based ballast water treatment system (NK-O3 BlueBallast), which exceeds the IMO D2 standard. The NK-O3 system received final approved under G9 guidelines from IMO in July 2009, and G8 type approval by the Korean Administration in November 2009. n Slide type fuel valves on the main engine, enabling the vessels to steam down to 10%

Nissos Santorini is one of the six Samsung built eco Suezmaxes.

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of the main engine’s horse power. This new type of valve reduces the amount of waste products and gives better combustion properties. The six tankers have been designed to give an Energy Efficiency Design Index (EEDI) of about 3.6 g CO2 per tonne/mile, which is 12.6% below from the reference line value of 4.12 g CO2 per tonne/mile proposed by MEPC 62/6/4 for a tanker of the same capacity to be built after 2015. In addition, for comfort, the ABS-classed tankers have been built to comply with the requirements of SHI COMF-V(1) and SHI COMF-N(2) and the relevant Comfort Ship Certificates have been issued. The vibration level in the cabins of each vessel is below the lower limit of ISO 6954-2000 and also the noise level of the cabin is below the lower limit of IMO 468 (XII). Manikas told Tanker Operator that the vessels also comply in full with the latest IMT/ExxonMobil ‘marine, environmental, safety and quality assurance criteria for seagoing vessels in ExxonMobil’s affiliate service’, including the ‘additional criteria for chartered tonnage’. Each vessel is powered by a Doosan/MAN B&W 6S60MC-C (Mk 8) developing about 13,560 kW at 101.4 rev/min (maximum continuous rating). The auxiliaries include

Kyklades' constantinos manikas.

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TEchNology - Ship DEScripTioN - NiSSoS DEloS three Yanmar 6N21AL-SW diesel generators each rated at 800 kW output at 900 rev/min. They are also fitted with two Aalborg auxiliary boilers, each of the Mission OL 25000 type. For cargo handling functions, each vessel is fitted with three HHI HCP-400 cargo pumps having a capacity of 2,800 cu m per hour. Two ballast pumps are also fitted per vessel having a capacity of 1,500 cu m per hour, while each vessel has a stripping pump of 200 cu m capacity. An inert gas and vapour emissions control system has also been fitted. The cargo oil tank gauging system is of a radar type. performance monitoring Perhaps one of the most important functions for a technical shipmanagement department today, either in-house or third party, is vessel performance monitoring and reporting. To meet this need, Kyklades signed up with class society ABS in 1999 and since then has been using various software options that have become available, culminating in the fitting of ABS Nautical Systems NS5 Enterprise software suite. Last month, this system was enhanced by the addition of an energy and environmental manager module. At its launch, ABS said that energy efficiency, emission controls and ballast water management regulations are impacting the amount of information an owner, or operator, is required to capture in its day-to-day operations. At the same time, rising fuel costs and anticipated environmental requirements are forcing owners and operators to find ways to improve efficiencies. A key objective of the energy & environmental manager module was to help owners and operators realise more environmentally sound voyage management by tracking and recording key voyage-related events, including fuel and lube oil consumption, fuel oil switching, cargo information and ballast activities. By simplifying and centralising real-time environmental and energy data collection, this module is claimed to make tracking, trending and reporting the information required for various regulation requirements, including Ship Energy Efficiency Management Plans (SEEMP), ballast water management and MARPOL VI (fuel switching), easy. The software will trend performance data at a ship and at a fleet level, allowing users to maximise operational efficiencies and benchmark each vessel in the fleet. It can be integrated with other shipboard systems and is claimed to be easy and flexible November/December 2012

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to use. The new module was developed in 18 months with the help of ABS’ customers who trialed the software on board their vessels. Each vessel’s performance is monitored in real time and analysed by the shore staff, having bypassed the crew, thus avoiding any possible interference. ABS said that the value of the new module is enhanced by a trim optimisation tool, which adds trim and draft optimisation for improved fuel savings. It performs multiple analyses to obtain the most optimised ballast configuration to achieve minimum hull resistance. The class society explained that the small savings made as a result of optimising the vessel’s trim with its loading procedures can amount to a significant amount, especially with today’s high fuel prices, which are unlikely to fall. BWT reporting As for ballast water treatment monitoring and reporting, an example given was that of the US Gulf, which is split into areas. Reporting ballast water treatment functions in these areas includes noting where and when a treatment takes place, enabling the authorities (US Coast Guard) to check and track any operation should they so wish. The same goes for fuel switching in and out of ECAs, ABS explained. Manikas, who is also the company’s NS5 overseer in his role as planned maintenance

system administrator, said the tankers’ Greek officers all undergo environmental training and also claimed that one of the advantages of the new performance monitoring software is its reporting capability to the relevant authorities in the light of EEDI, SEEMP, ECAs, ballast water treatment operations, etc. Some of Kyklades’ seafarer and office training is undertaken in-house. This includes: a) ISM & ISPS updates and refresher courses. b) ISO 14001 & 9001 introduction, scope and implementation. c) Inspections (vetting and port state control). d) ABS (NS5) Nautical Systems (HSQEvetting & performance monitoring) modules. e) Risk assessment, incident investigation & analysis. f) TMSA. In addition, seminars are organised with the company’s support by hull and machinery underwriters, P & I clubs and consultants, such as a) Crisis management. b) Risk assessment & management. c) Bills of Lading & LOI. d) Maritime Labour Convention (MLC). Kyklades was formed as an independent concern in 1997 from the tanker division of Glafki and today owns three Japanese-built Suezmaxes and the six Samsung-built Aframaxes, the last of which – Nissos Delos – was delivered recently. TO

Principal Particulars – Nissos Delos Class: ABS + A1, Oil Carrier, E, +AMS, +ACCU, VEC, TCM, AB-CM, CSR, GP, POT, PMA, RRD, ESP, UWIND, CPS, CRC, TW. Length, loa…………………………………………..................................248.97 m Length, bp…………………………………………........................................239 m Beam……………………………………………….......................................43.8 m Depth…………………………………………………......................................21 m Draft, summer……………………………………….................................15.023 m Gross tonnage……………………………………….....................................61,320 Net tonnage……………………………………….........................................35,877 Deadweight, summer……………………………......................................115,691 t Main engine………….................................Doosan/MAN B&W 6S60MC-C Mk 8 Output (MCR)…………………….................................18,035 kW at 105 rev/min Auxiliaries……………………….....................................3 x Yanmar 6N21AL-SW Output………………………………...................................800 kW at 900 rev/min Tank capacities Total cargo tank capacity (98%)………….......................................123,646.3 cu m Slop tank capacity………………………….........................................3,868.4 cu m Ballast tank capacity……………………….......................................39,975.1 cu m

TANKEROperator

Pumping capacities Cargo pumps……………………………..........................................3 x 2,800 cu m Ballast pumps…………………………….........................................2 x 1,500 cu m Stripping pumps……………………………........................................1 x 200 cu m 41


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TEchNology - Ship DEScripTioN - WärTSilä aframax

Wärtsilä launches new efficient Aframax design Wärtsilä has joined the ranks of those offering a highly efficient Aframax design, claiming that this design offers solutions for both current and forthcoming emissions legislation.

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ärtsilä Ship Design has unveiled a double hull, single screw crude oil Aframax featuring a CFD (computational fluid dynamics) optimised hull to provide less resistance with higher propulsion efficiency. High load/discharge rates are aimed at minimising time spent at the loading/receiving terminals. The design also has an optional bow loading capability. The CFD optimisation of the hull form carefully considered the flow lines and pressure distribution along the hull, while the cylindrical bow accommodates a range of operational draughts, even in rough weather conditions the company said. The Aframaxes’ main propulsion system is based upon a high performance, 2-stroke Wärtsilä X62 diesel engine. This electronically controlled, common-rail engine has an extra long stroke and low rev/min. It also has a narrower physical width to allow a slimmer aft body design, which further benefits the propulsion efficiency.

artist's impression of the aframax.

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Schematic of a possible scrubber installation.

Compared to currently available main engine options, the Wärtsilä X62 engine can

achieve fuel savings of 7% on the specific vessel design. Furthermore, the same vessel speed can be reached using one less cylinder, ie six instead of seven cylinders. The seven cylinder version provides even greater efficiencies due to the lower rev/min and higher de-rating, Wärtsilä claimed. For emissions compliance, an integrated Wärtsilä exhaust gas scrubber has been designed into the funnel. This integrated scrubber system is connected to the main engine, auxiliary engines and auxiliary boilers and effectively reduces SOx emissions and meets the IMO’s forthcoming 0.1% sulphur limit even when using heavy fuel oil with a sulphur content of 3.5%. In addition, a Wärtsilä selective catalytic reduction (SCR) system has been included, fitted before the main engine’s turbocharger turbine in the design. The SCR is a post

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TEchNology - Ship DEScripTioN - WärTSilä aframax

how a scrubber system would be installed.

combustion NOx abatement system that allows optimised combustion in terms of efficiency, while reducing NOx emissions by more than 90%. The abatement equipment is tuned with the main and auxiliary engines for effective operations across the complete load range and IMO Tier III requirements can be fulfilled, Wärtsilä said. “The new realities of the shipping industry call for higher fuel efficiency, lower operating costs and better environmental performance. The new Wärtsilä Aframax tanker design meets all these criteria and we are proud to offer this segment the combination of state-ofthe-art design and superb propulsion machinery that can produce meaningful savings,” said Riku-Pekka Hägg, vice president Wärtsilä Ship Design. Jacob Thygesen, director, Merchant Ship Design, Wärtsilä explained that the advantages of this new design over others is, in short -an optimum combination of higher propulsion efficiency due to the new engine/propeller combination, higher cargo capacity,

Principal Particulars – Wärtsilä Aframax Length, oa……………………….........253.20m Beam……………...…………………........44 m Draft, maximum…………..………........15.2 m Deadweight…………………........abt 117,000 t Cargo tank capacity (12 tanks)….134,250 cu m Load/discharge rate (manifold)…9,000 cu m/hr Bow loading………………….....8,000 cu m/hr November/December 2012

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The rT-flex 62 type diesel engine.

competitive fuel consumption, operational flexibility introducing cylindrical bow and superior hull form, environmentally friendly solution comprising scrubber (for SOx reduction) and SCR (for NOx reduction). Explaining why Wärtsilä opted for either a 6-cylinder of a 7-cylinder version of the main engine, Thygesen said; “ We believe that many yards and customers still would like to go for the 6-cylinder option, as it introduces less capital costs, more easily integrated into their existing designs by having comparable weight and size requirements. “When switching to the 7-cylinder version capital costs would be higher, however, in the end this version would offer even more reduction on fuel consumption, which will compensate for the additional operating costs. So, a more economical solution should be considered in each particular case, depending on the wishes of the customer,” he said. He also explained that for gaining higher propulsive efficiency, lowering the rev/min speed always meant increasing the propeller’s diameter. However, attention should be paid as to the limits to which the propeller’s diameter can be increased. This should take into account draft/propeller diameter ratio, clearance between propeller and the hull, power density on the propeller and torque limitations. Thygesen said that the company intends to market the new design both to shipyards and shipowners/operators. Although, obviously the company would prefer to include a full Wärtsilä package with the design, “as we believe this provides the optimal solution to the customer, both from a technical and commercial perspective,” this design will work with other solutions should the customer so decide. He also confirmed that a numerous number

TANKEROperator

of CFD calculations had been performed during the design’s optimisation stage and that tank testing had not been performed thus far. Wärtsilä x62 engine The Wärtsilä X62 is claimed to be the most compact engine in its class of very low-shaftspeed engines. It has a cylinder bore of 620 mm and its power output is in the 8,000 to 21,280 kW range. It comes in 4- to 8-cylinder configurations. It has been designed to be the prime mover for Aframaxes, as well as other types of vessels, such as Panamax/Kamsarmax bulk carriers and feeder container vessels. The new engine offers high propulsion efficiency in a unique combination of low engine revolutions and an engine design with a minimum physical width. These benefits result in a slimmer aft vessel hull design leading to further propeller efficiency improvements. One of the main targets when designing the Wärtsilä X62, was to allow for slim hull lines to provide the ship with greater efficiency, the company said. It is fully compliant with IMO Tier II requirements and can also be equipped with a SCR catalyst to meet IMO Tier III NOx emission levels and a scrubber to reduce SOx emissions to 0.1% – even with high sulphur fuels. The introduction of the EEDI index also puts an emphasis on CO2 emissions and total vessel efficiency. The internal engine efficiency of Wärtsilä X62, and the possibility to apply various power take-off (PTO) arrangements for on board electricity production, make it easy for shipyards to meet these new requirements, the company claimed. The first X62 is expected to be delivered end of 2013. TO

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UK eNav centre ramps up training facilities

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ECDIS Ltd unveiled its new full mission bridge simulator with a 315 deg viewing capability last October at its eNav centre, located near Southampton in the UK.

t is primarily for use for bridge team training but has been fitted with four different ECDIS systems all integrated with VSTEP-NAUTIS software. The bridge simulator sits alongside the six smaller NAUTIS simulators already used for visual channels during the IMO 1.27 Model ECDIS Course. The new bridge simulator includes two radars and four ECDIS, supplied by OSI, Kelvin Hughes, JRC and Transas, which are all fully integrated. The simulator can also be integrated with other OEMS as required. Mark Broster, ECDIS Ltd’s managing director told Tanker Operator that the simulator is a complex blend of a number of hardware and software providers. “It houses four of the leading manufacturers of ECDIS concurrently, all fully integrated into the simulator. It can also integrate many other ECDIS systems that we have in the eNav centre, as required by the customer to make their training more realistic. “Its visual channels are based on the Nautis software by V-STEP, but there is a series of other software providers used to integrate the different navigation systems and other bridges.

We produced the design of the layout based on research from our customer base. It was built specifically as a large bridge so that it can comfortably handle even a very large bridge crew of eight, plus staff and company observers, as required. “The unique selling point of this simulator is that its layout of screens can be changed to replicate, as closely as practical, the screen layout of the customer’s bridge,� he said. Broster said that it was built at the request of the company’s ECDIS customers. As for further expansion plans he said that the eNav centres will expand into several new fields. As well as training in the new digital navigation aids, the centres will also run courses on anti-piracy and `the human element`, which have already began to take shape in the UK. These courses will also migrate abroad in early 2013. “For many years ECDIS Ltd, a wing of the eNav centre, has facilitated the sale of ECDIS equipment to fleets. Long term expansion will now include the sale of bespoke full mission simulators and indeed many tenders are now being processed for 2013 operations. “Some of the centres are being built in

conjunction with key international partners. The exact locations are still subject to a number of sensitive decisions, needless to say, the plan is to export the UK product while adopting local regulations and culture,� he said. Broster dismissed the notion that the company was going head-on with other reputable international training colleges, such as nearby Warsash. “Our clients are generally those currently at sea and we are not looking to train cadets at this stage. Our courses are much smaller in size and more customised than most of the training colleges. “The courses are very intensive and the equipment and instructors are specific to the course. Our unique selling point, is that we offer a very `first class` training experience, in luxurious surroundings, with complimentary facilities and very experienced and current staff. Unfortunately, this does come at a cost,� he explained. Although 12 persons can be housed, in reality most simulator courses involve no more than four to six people. On some courses, each mariner can work on his, or her own

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the extensive range of equipment available can clearly be seen.

mini-simulator before moving onto the larger simulator. Each of the six mini simulators can comfortably accommodate a team of three. All equipment can be connected and interact with each other, if required. For the company’s on board and company location type specific ECDIS courses, the 1.27 STCW five day courses, are still the biggest demand for ECDIS training. “It’s simply cheaper and easier for the shipping companies,” Broster said. He also said that this course is by far one of the most intensive courses mariners attend. To give an overview on all the leading manufacturers (28 of which who vary substantially) and teach mariners to navigate on ECDIS safely without GPS and to cover the IMO model 1.27 aspects, makes it a long an intensive week. “The major problem is those attending courses expecting an easy week, or those of no real interest in learning about ECDIS, albeit it may soon be their primary means of navigation. Often the problem is getting the mariners to appreciate that we are not here to `sell` the concept of ECDIS, we are here to point out the advantages and disadvantages of

the systems. “Far more importantly though, we are here to train in solutions to its shortfalls, because like it or not it’s here to stay! We often have problems teaching the Type Specific courses when the mariner has been trained on a substandard generic course, or a short CBT package. Often the instructors find themselves working very long hours to bring the crew up to speed on some of the generic

principles that they should know,” Broster said. He also thought that the revision of the IMO module course had helped the industry go in one direction. However, he thought that it still lacked a few modules that the `end users`, or mariners are interested in, but it was good to see that some of the additional modules that the company has been teaching for years have now been incorporated. TO

“ Our clients are generally those currently at sea and we are not looking to train cadets at this stage. Our courses are much smaller in size and more customised than most of the training colleges. mark Broster, managing Director, ecDIs ltd

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e-learning onboard without a broadband connection?

We have been doing it for years We provide seafarer training and assessment tools for effective compliance to STCW, ISM, and IMO standards Seagull has always been able to synchroni synchronize ze training records automatically automatically.. Which means the training records ‘follow the seafarer’ seafarer ’ and are always kept up to date. P Please lease contact us for more info on our innovations.

november/December 2012

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Warsash introduces state-of-the-art engine room simulator

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Warsash Maritime Academy (WMA) has opened a new full mission engine room simulator, which is claimed to be a world first.

t was officially launched by Milhar Fuazudeen (IMO’s head of the maritime training and human element section) on 4th October and represents the final stage of a three-year, £5 mill investment plan in ship simulation by WMA’s owner Southampton Solent University. Fuazudeen described the new simulator as“….. a very impressive multi-functional training tool that covers a wider spectrum of training than ever before. It will, no doubt, further enhance the position of Warsash Maritime Academy as an outstanding centre of excellence in providing education and training for seafarers from around the world. “As to the expertise of the trainers at the Academy, who have a thorough understanding of on board systems and of the shipping industry’s training needs, it can only add greater lustre to the training that will be provided for many more decades to come to seafarers from all corners of the world.”

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He also said that the academy had high resource skills able to communicate where simulation should end and real life should begin. He thought that with training, simulation should go “…….hand-in-hand with theoretical knowledge.” The new simulator has already welcomed its first set of students and further courses are now underway. After 12 months of planning, WMA’s engine room facility underwent a complete renewal with simulator manufacturer L-3. This involved a new layout, room designs, structural changes and installation of a brand new full mission engine room simulator, which has been bespoke designed in-house to meet to the training requirements of the IMO STCW Code and the maritime industry. The project was completed in September this year. WMA director, Andrew Hair said: “The set up and design of our new full mission engine room simulator is the first of its kind in the world and it is backed by extensive experience

of practical simulator training and academic application. And it reflects a focus that lies at the heart of many of our successful training programmes – namely creating an atmosphere within the simulator that mirrors the exact conditions in a real engine room environment on board ship.” The new simulator includes a VLCC model. It was designed with the help of Chevron who allowed the designers to film on board one of its tankers. The tanker engine room model is fitted with conventional electronicallycontrolled slow speed, 2-stroke diesel engine connected to a controllable pitch propeller (CPP), which can be matched linked to both in-house bridge and liquid cargo operations simulators (LICOS) to allow whole ship simulation exercises. Modelled on a 2-stroke MAN 6S90ME-C diesel engine producing 31.6 MW of power giving a speed of 16 knots with reduction coming through a Renk shaft generator of 1,250 kW, the VLCC simulation also includes

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technology - traInIng systems two auxiliary generators of 1,250 kW each, a turbo generator of the same output and a shaft generator. The emergency generator is rated at 400 kW. A bow thruster has also been added. The ships’ electrical power and distribution system can be reconfigured to match the ship model in use. As an example, the slow speed diesel model is comprised of two diesel driven alternators, one steam turbo alternator and a shaft generator producing a three-phase 440V 60Hz supply. An emergency diesel alternator complying with SOLAS requirements is also included within the system. The electrical system is fitted with the associated instrumentation and protective equipment. The simulator consists of a separate engine control room (ECR) with a control desk with a number of touch screens allowing the operators to operate and monitor all the propulsion and auxiliary systems through a distributive control system (DCS), monitor and accept alarms and carry out trend analysis of main engine performance. The room is also fitted with real throttle controls and a telegraph to allow control of the engine from the ECR. The control room

november/December 2012

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contains the main low voltage switchboard containing real 440V breakers, synchronising panel and distribution panels. The engine room itself contains three interactive 3D workstations. Each station uses a 46 inch monitor with a 22 inch touch screen navigation panel, allowing delegates to navigate through a photo-realistic engine room, corresponding to the Chevron VLCC and interacting with equipment and systems. Delegates can open and close valves, as well as stop and start electrically driven equipment and carry out local monitoring and fault diagnosis using a toolbox. The toolbox contains a multi-meter to measure voltage and current, a vibration meter, temperature probe, oil test kit and water test kit. In addition, there is a separate emergency switchboard room consisting of a real switchboard and real circuit breakers, plus a touch screen monitor displaying the emergency generator and battery backup systems, which allows the student to stop and start the emergency generator and carry out monitoring and fault diagnosis using a toolbox. Again, the toolbox contains a multimeter to measure voltage and current, a vibration meter, temperature probe, oil test kit and water test kit. Also housed in a separate area is a high voltage room containing a real 11 KVA switchboard section with vacuum circuit breaker, High Voltage cabling and connection box, which is used to simulate one of the four HV diesel generator switchboard sections. The other three HV diesel generator switchboard sections are simulated on the DCS screen. A local control panel allows manual switching of the HV breaker for instruction purposes. The HV breaker can be operated in isolation from the main simulator when the HV cruise ship model

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is not in use. This will allow stand-alone HV training courses in line with STCW Manila amendments. For officer cadets in training, this provides an opportunity to see a real HV switchboard before going to sea. Unlike any other engine room simulator, the HV and low voltage (LV) switchboards have been designed and built to be as realistic as possible, to the extent that all of the switchboard breakers are real, WMA claimed. Guided by Lloyd’s Register on the technical aspects of the ship models, the layout of power and distribution system is in accordance with current class society rules and includes breakers that can be racked out. The entire simulation is controlled from an instructor station, which is inaccessible to the delegates. A bridge console is fitted to allow simulation of the bridge controls and enables the instructors to play the roles of the Master and bridge watchkeepers. The benefits claimed in the simulator software is that it allows the instructor to introduce a large number of faults in order to test the participants’ technical skills and nontechnical resource management skills, as well as the cohesiveness and effectiveness of the engineering team. The whole suite is covered by microphones and cameras, which allows the instructor to monitor the participant’s performance. A video recording system known as the After Action Review System (AAR) is also available, allowing the simulator exercises to be replayed to the course participants during the post exercise debriefing sessions. WMA now offers a comprehensive range of courses, training and assessment, including; n Engine room resource management. n Steam propulsion plant operations. n Crew resource management. n Electrical and control engineering for marine surveyors and superintendents. n High voltage. n Electro technical officer. n Bespoke engineering officer preemployment, or pre-promotion assessments. WMA explained that the most popular engine room management course is resource management. For example, delegates are taught how to challenge a higher authority properly and effectively. The five-day courses are attended by a maximum of four people, who can be split between the various rooms to learn to communicate while undertaking different functions. The engine room is fitted with three screens, each of which can simulate separate operations simultaneously, for example, 47


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an extensive full mission engine control room has been fitted.

the photorealistic engine room is modelled on a chevron Vlcc.

ballasting, valve operations, etc. Another Warsash training facility for the tanker and liquid gas sectors is the liquid cargo operations simulator (LICOS), which provides real time simulation of the process 48

flow control system used in the storage and transfer of hazardous bulk liquid cargoes from shore to ship, and ship to shore, and ship to ship, if required. An MPRI simulator is used, which was

originally developed at Warsash, has been approved by DNV as a Class A Maritime Simulator. The simulator fleet consists of the following models, all of which are based on real vessels; n Membrane LNGC. n Spherical LNGC. n Fully refrigerated LPG carrier. n A new ethylene carrier model. n Double hull crude Suezmax. n Type II products tanker. The simulator can accept a maximum of six officers who each operate their own vessel during the course via two high resolution screens, which display all of the ships cargo handling pipelines, machinery and associated instrumentation. They can be used for ballasting and/or cargo operations. Class size is limited to six participants to ensure each person can be monitored and assisted where necessary and receive feedback on operational performance. Each officer also has a communication system enabling management of deck personnel and communication with engine room and terminal during cargo handling operations where appropriate. TO

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Training institute certification underway Maritime systems house Maritime Information Systems (MARIS), well known for on board training, has moved into training institutes to offer software on type specific ECDIS training.

We are increasingly focusing on training and services on the software side to make sure bridge officers are comfortable using our products and able to use advanced features,” said Steinar Gundersen, MARIS’ deputy CEO (Corporate). “Governing bodies are clear that ECDIS is deployed through close co-operation between manufacturers and training institutes and that explicitly calls for product-specific training on the ECDIS equipment.” Today, MARIS ECDIS software can be found in almost 100 training institutes around the world as the company has made the delivery of certified, type specific training courses a major priority. These new agreements include Marstal Navigationsskole, Denmark, International Maritime Academy of India, Vestfold University College in Norway, Wärtsilä Subic in the Philippines and Odessa Maritime Training Centre in Ukraine. “It is MARIS’ goal to certify as many training institutes as possible,” Gundersen explained. The courseware is augmented by refresher courses to ensure competency levels wherever the training is delivered and MARIS supports this through manufacturer training certification. Training institutes that can document use of the MARIS ECDIS over time will be certified without a visit from the company, while training institutes new to MARIS ECDIS will be visited and certified. In August, Seagull released the MARIS/Seagull ECDIS CBT, which was the first Seagull ECDIS product specific CBT. At the same time, Seagull had completed the development of an updated version of its generic on board CBT ECDIS course meeting the STCW Manila Amendments. Like its predecessor, this course was certified by DNV SeaSkill and work is underway to obtain approvals from Norwegian november/December 2012

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flag state (NMD) and other major flag states. The CBT initiative includes chart projections, chart accuracy, chart types, chart datum, chart updating, sensor inputs and control, alarm, plus warning strategies, radar and ARPA information on ECDIS and route planning. However, the type-specific package has been amended with an applications trainer for the MARIS ECDIS, which has the same assessment mechanism built in as the standard Seagull CBT modules. The new generic on board CBT ECDIS course will, as its predecessor, be approved by major flag states through Seagull. The product specific training elements do not need to be approved by the flag states but following DNV SeaSkill certification and NMD approval, Seagull will apply for approval from other major flag states, but an approval by NMD will in most cases be sufficient. co-operation MARIS also has a long-standing co-operation agreement with ARI Simulation, under which, ARI offers simulators with MARIS ECDIS900 to training institutes worldwide. “Moving forward, we are going to focus on developing type-specific training, combined certification and on providing charts and electronic navigational data through MDS to all ARI installations,” Gundersen said. The company has developed an automatic download system of the latest software on board vessels. MARIS Digital Services (MDS) is automatically checked for the latest software when connecting to the company’s servers. If the latest software is not installed, the user will be advised and asked to accept the download and automatic installation of the software will take place. MARIS ECDIS is Wheelmark (EU) certified by DNV. The class society is also

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putting a MARIS request through the acceptance process to allow the same capability for the ECDIS900. As for the competition provided by large academies fitted with simulators, Gundersen said; “We work in the way our customers prefer. For our part, we actually have a separate agreement with Seagull covering cooperation on product specific training at Seagull’s shore-based training centre in Horten, where we have worked jointly to develop a standard training package by assimilating information on leading training centres and approaching those in the ECDIS training business to offer co-operation and market MARIS’ products and services.” Turning to the many ECDIS type specific training centres that have sprung up since the new rules came into force, Gundersen said MARIS will talk with both the training centres and the OEMS. “We have ECDIS customers in more than 40 countries and so it is essential that we make all possible training options available. CBT type training is not sufficient. What our partners Seagull is offering is an on board course where CBT is only one of several

marIs' steinar gundersen.

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technology - traInIng systems training and assessment elements. In addition to a number of CBT units the course includes real-time simulation, use of the ECDIS system on board and an extensive workbook,” he said. Using the CBT-based approach, a training report showing at least 95% completion of the eLearning module and a test score of at least 75% correct answers, together with the course procedure, must be forwarded to Seagull for a seafarer to get training results documented and be eligible for a course diploma.

“We were the first in the world to offer product-specific ECDIS training on board through Seagull in line with the IMO model course 1.27 and to be certified as an alternative to training ashore. “What CBT-based training providers are really trying to do is to meet the internationally agreed training standards in a world where there is simply not enough shorebased training capacity available,” Gundersen stressed, responding to some criticisms of on

board training methods. MARIS also recently signed an agreement with Consilium to co-operate with the service and installation of MARIS products through the latter’s network of subsidiaries and agents in more than 50 countries. “This adds a major force like Consilium to our existing service partners to improve our worldwide network as a whole,” Gundersen said. TO

Don’t ignore posters and signage As the drive towards electronic methods of communicating continues to gather pace there is a danger that essential safety and operational messages are lost in the willingness to provide crew on board with a limitless supply of information.

h

owever, there is no substitute for supplying relevant and specific information at the point of delivery. The advocates for traditional means of displaying and providing information to crew members cannot deny the benefits that CBT methods have brought. CBT can provide a limitless supply of easily searchable information and dedicated simulators place the trainee into real life situations in a safe and controlled environment. But the benefit of static posters, printed manuals and safety signs cannot be ignored and this is particularly so at times of high stress. Well researched and designed material, placed on board, forms a reliable source of information and is available at all times to the seafarer. It is well known that photoluminescent signs are the preferred method of indicating the location of safety equipment and means of escape on board ship. This has come about because of the isolated nature in which vessels operate and the fact that during incidents it is not unknown for emergency power to fail. Recent analysis published by the UK P&I Club reveals that despite technological advances power problems still exist at sea. The club’s findings show that 7% of its third party property damage claims have been due to main engine failures and electrical 50

blackouts. Printed material is not dependant on any other device, or electrical power to be viewed. The argument for photoluminescent safety signs is obvious. The advantage of printed safety awareness and training posters, manuals and informative signs can be summed up as follows: n When strategically placed on board they provide a cost effective means of providing important information to the crew. n Their presence on board leaves vessel management assured that the crew has been sufficiently informed of the essential information they contain and provides evidence of this in compliance with the ISM Code. n Used during training sessions, they are readily available for reference by the crew long after the training session has taken place. Vessel managers would be ill advised to ignore the large part printed material has to play when considering the overall safety management of a ship. Specialist marine publisher, Maritime Progress, has invested heavily during the past 25 years both in technology and in keeping up to date with the continually evolving safety issues. The company introduced the concept of safety awareness and training posters at sea during the 1980s.

The Maritime Progress ISM SafetyWORKS range of posters is recognised worldwide, as being both legislatively correct and a reliable source of information. training manuals Various generic marine training manuals are available within the ISM SafetyWORKS series. These manuals have the same heritage as the posters with the same level of scrutiny and research going into their production, the company claimed. Each manual makes reference to supporting documentation, legislation and the Safety Awareness and Training posters referred to above. The connection made between the manuals and posters therefore makes for a very effective management tool. Down the years, the IMO has adopted standard designs of symbols for use on vessel safety plans. These symbols are recognised by seafarers worldwide. They are used as signs to identify life saving appliances, fire extinguishing and fire control equipment on many of the world’s vessels, offshore installations and terminals. The popularity of these products has encouraged some producers to make illegal copies of Maritime Progress’ posters, which has lead to inaccurate and unaccountable information being displayed to crew on board ship, the company warned. TO

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TECHNOLOGY - baLLasT waTEr TrEaTmENT

Flaws seen in type approval process There is still much to be done by IMO member states to rectify serious flaws in the ballast water treatment equipment type approval process, the International Chamber of Shipping (ICS) said recently.

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he ICS said that it is worried that shipowners are being asked to invest billions of dollars in new treatment systems that may not always work in practice. Speaking at the end the IMO’s MePC 64 October meeting, ICS secretary general, Peter Hinchliffe, said: “It is good that many governments seem to accept shipowners’ arguments that it will be very difficult indeed to retrofit tens of thousands of ships within the timeline of two or three years after entry into force, as the convention text currently requires. IMO has agreed to develop an IMO assembly resolution, for adoption in 2013, to facilitate implementation to work smoothly.” In forthcoming discussions, the ICS said that it will continue to press for its proposed solution that existing ships should be defined as those having been constructed prior to entry into force and that retrofitting should not be required until the next full five year survey, rather than the next intermediate survey should this be sooner. “It is vital that we ease the log jam by spreading implementation over five years rather than two or three,” said Hinchliffe. ICS said that it was concerned that a number of governments did not appear to appreciate the scale of the challenge faced by shipbuilders and repairers in order to cope with the vast number of ships that will be required to install the new treatment systems. The organisation also expressed disappointment that many shipowners’ concerns about the robustness of the typeapproval process were disregarded, or sidelined during the MePC meeting. “The BWM Convention was designed to assure the ability to meet the required standard by a treatment system installed on an operating vessel, not in the vacuum of a test facility,” said Hinchliffe. ICS stressed that enforcement and compliance actions would not be taken against treatment system manufacturers, or test 52

facilities, but rather against shipowners who in good faith may have installed a type-approved system that when subject to the variables in a real life operating environment, may fail to perform as required. a robustly type-approved system, costing between $1-$5 mill per vessel, should reasonably be expected to operate effectively under all of the normal operating conditions encountered at sea. Therefore, the ICS said that it was disappointed at the unwillingness of IMO member states to consider re-opening the G-8 Guidelines on type-approval. The organisation said that it believed this would make it harder for governments that have not yet done so, to consider immediate ratification of the BWM Convention, or for shipowners to invest in the new equipment before they are legally required to do so. The ICS issued an intervention document during the final plenary discussion about the BWM Convention at MePC 64, which was supported by China and the some of the world’s largest flag states, including Liberia, Malta, Marshall Islands, Panama and Vanuatu. These flag states’ implementation of the convention will be vital in order for it to have genuine global application, due to their size, the ICS said. INTErTaNKO paper The ICS was not the only major organisation to comment of MePC 64’s progress regarding ballast water treatment. For example, InTerTankO, along with several cosponsors, submitted a paper on ballast water management for consideration at the meeting. In its paper, the group outlined the four challenges affecting ratification and effective implementation of the BWM Convention as: 1) need for revision of the G-8 Guidelines for approval of ballast water management systems to improve transparency and ensure appropriate robustness of ballast water management systems (BWMS).

2) availability of BWMS and sufficient facilities to install the systems. 3) Survey and certification requirements for ships constructed prior to entry into force of the BWM Convention. 4) Sampling and analysis procedures for port state control purposes. regarding the problems with the type approval process, as stated, MePC agreed not to open up G-8 for revision. However, there was agreement that the issues raised in the InTerTankO paper needed addressing. as a result, an MePC resolution would be revised to provide greater transparency and expand on the information that would be supplied with the type approval documentation. Specifically, this would include more detail on the actual limitations of the BWMS. Furthermore, the ballast water circular providing guidelines to flag administrations on the approval process would be amended to include the issues raised in the InTerTankO submission. There was also agreement with InTerTankO’s concerns related to the availability of facilities to install BWMS. an assembly resolution will be adopted aimed at smoothing the implementation once the BWM Convention enters into force. a circular will be issued to bring the survey and certification challenges identified by the class societies to the attention of flag state and port state authorities to ensure that all are aware of the agreed solution and that vessel operators, who comply with this solution, are not improperly penalised. regarding InTerTankO’s final point, MePC has instructed the Bulk Liquids and Gases (BLG) and Flag State Implementation (FSI) sub-committees that, when finalising the sampling and analysis guidelines for port state control, these should not be any more stringent than the type approval process. During the consideration of the type approval guidelines and the challenges raised, the incidents relating to failed BWMS that had

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TECHNOLOGY - baLLasT waTEr TrEaTmENT already been installed were discussed. as a result, InTerTankO and its industry partners have been invited to provide case studies relating to systems that have been installed but failed to operate. InTerTankO said that it will work through its environmental committee and ISTeC to gather relevant data on failed cases. Guidelines naturally, the major class societies are instrumental in the IMO type approval processes and many have issued guidelines and papers on the subject. For example, Lloyd’s register recently unveiled what it called a ‘one stop information shop’, which included an online comparison tool and a list of the available technologies. Under the banner of Understanding Ballast Water Management Series, the class society said that it introduced a range of tools and technical guidance to help operators make informed decisions that meet compliance with forthcoming requirements of the convention. “Ballast water management is one of the big

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challenges that shipping faces. It’s now about understanding the risks associated with the technologies and choosing the right treatment,” said katharine Palmer, Lr’s environment manager. “The resources we are providing help to narrow down the suitable options for individual operators. Our Ballast Water Treatment Technologies Guide provides all the technical parameters of available technologies so that operators understand issues, such as space and power requirements.” The series includes: n How to comply with the BWM Convention. n Ballast water treatment technologies guide. n Ballast water treatment selection tool — an online comparison tool to assist with the selection of treatment systems. n Full regulatory guidance, model plans and approval requirements. Meanwhile, the US Coast Guard’s final rule on BWM was published on 23rd March, 2012 and became effective 90 days after publication, on 21st June, 2012.

USCG amended its regulations on ballast water management by establishing a standard for the allowable concentration of living organisms in ballast water discharged from ships in US waters. It also amended its regulations for engineering equipment by establishing an approval process for ballast water management systems. The numerical limits set by the discharge standard in this ‘Final rule’ were supported by reports from the national academy of Science and the US environmental Protection agency Science advisory Board in 2011, as the most stringent that vessels can practicably implement and that the USCG could enforce at this time. USCG has recently issued two files to help explain the new BWM regulations: n Guidance on verification of fouling maintenance and sediment removal procedures, 5th nov 2012. n PowerPoint Presentation (with audio narration) - USCG Ballast Water Final rule, 5th nov 2012. TO

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TECHNOLOGY – baLLasT waTEr TrEaTmENT

Ballast water- all hands to the pump! As the Ballast Water Convention nears ratification, ballast water systems manufacturers are ramping up their offerings ready for the inevitable last minute rush to fit systems.

I

n this article, Tanker Operator has attempted to highlight just some of the ongoing initiatives in this growing market. We have listed manufacturers and equipment suppliers in strict alphabetical order and apologise to the ones inadvertently omitted. Finnish-based Auramarine has recently received an IMO type approval for its CrystalBallast® ballast water treatment system. The approval was issued by DnV on behalf of the norwegian Maritime Directorate after the successful land-based and shipboard testing in accordance with the IMO’s ‘Guidelines for approval of BWM Systems (G8)’ and DnV rules. auramarine offers a full range of ballast water treatment systems from 75 cu m per hour to more than 3.000 cu m per hour. It is available in both complete skid mounted modules for newbuilding projects, as well as prefabricated component kits for retrofits. The company claimed that configurable design and compact size lead to affordable capital and installation costs. auramarine told Tanker Operator that it was looking into an ex-proof version and hopes to have the equipment available in the coming months.

The company also said that it has production facilities ready and operational both in Finland and China and thus production capacity will not be an issue. Coldharbour Marine said that land based testing of its inert gas-based, in-tank, invoyage, GLD ballast water treatment system, specifically designed and optimised for large tankers, LnG/LPG carriers and bulkers, at Mea in the netherlands is nearly complete, with very good results. also a retrofit on a VLCC was almost completed at the time that Tanker Operator went to press and following this, the system’s sea trials can begin. “We’ve had some challenges, but we’re nearly there”, the company said. Full type approval is expected by the end the second quarter of next year. Coldharbour is currently working with Uk MCa, Lloyd’s register, the Chinese classification society and the US Coast Guard. The company explained that flow rates were not relevant with its system, as it fitted a Coldharbour Marine GLD ballast water treatment system, of quite a modest size recently. The longer the sailing time of the vessel, the smaller the inert gas system (IGG) is needed to treat the ballast water within the time available.

rwO hopes to have an Ex proof version of Cleanballast by the middle of next year (see page 58).

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“On occasion, we find that the cost of our system can be inversely proportional to the ballast water flow and capacity. Smaller tankers, with smaller flow rates and smaller ballast capacities tend to have shorter sailing times and so need a bigger IGG to treat in say four days. a bigger tanker with a 10-day voyage can be treated with a smaller IGG. This makes for some interesting system quotations, as we had one recently where we quoted for three vessels for the same operator, the biggest was cheapest, the smallest cost a bit more!” the company said. The company claimed to be very competitive on price, not least because many of the systems available cannot handle the larger vessels, even by fitting multiple units. “The reason that we focus on the larger vessels with the larger flow rates is because our ballast water treatment system is not an inline system. We do not filter and treat the ballast water while it is being pumped on board and into the ballast water tanks, we treat the ballast water inside the ballast water tanks during the voyage. Therefore, flow rates are irrelevant to our system, whether they are 300 cu m, or 600 cu m, or 6,000 cu m,” Coldharbour explained..” What is important with our system is the total ballast water capacity, the shape and size of the ballast water tanks, and the length of the journey. “Vessels with a lower flow rate are usually smaller vessels, with smaller ballast water tanks and shorter voyage times. at 300 cu m, 600 cu m, or 1,200 cu m, our in-tank equipment would probably not fit inside the ballast water tanks, and we do not have the minimum four day voyage time we require to treat the ballast water inside the ballast water tanks. On large tankers, we will have ballast water tanks of 30-50 m high and voyage durations of more than four days. “We have space and we have time. So our system is perfect for that application,” the company said. With a smaller vessel, an in-line system, probably eC or UV, would be far more suitable, particularly at under 2,000 cu m flow rates. 55


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TECHNOLOGY - baLLasT waTEr TrEaTmENT

wärtsilä’s ballast water treatment offerings were boosted with the purchase of Hamworthy.

Coldharbour has built two systems this year and next year, the company plans to build 25 systems. In 2014, it expects to build 150, the maximum under the business plan. The orderbook is being focused on around five year docking schedules and the company’s plan is to have five years’ production covered around these schedules. “There will be rapid expansion, but we plan to maintain that level into the future with newbuild, rather than have to contract rapidly after the retrofit bottleneck,” the company said. Maritime and offshore oil & gas engineering company Harris Pye highlighted its 3600 3D laser scanner for ballast water treatment system installation at SMM. “Since we announced earlier this year that we had successfully used our innovative 3600 3D scanner to survey the engine room of Neva River, the LnG carrier of “k” Line LnG Shipping (Uk), pre-ballast water system CaD design, selection and installation, there has been great interest in, and use of, the scanner and our service,” said Harris Pye’s group technical director, Chris David. Taking a full 3D scan enables Harris Pye engineers to rapidly create three-dimensional images of the entire engine room and thus create various ballast water treatment models in order to select the best for a client. The entire engine room survey is not only quick but causes minimal disturbance to the crew, the company said. The scanner gathers point cloud data, which is then processed by Harris Pye’s naval architects through Pointools View Pro in order to create multiple walkthrough 3D videos from the scans. 56

Chinese-based Headway has won several orders from european-based owners for its OceanGuard BWMS, including from a Greek company to be fitted on board a tanker. The company has the only ballast water management system from China, which completed successful tests at nIVa in norway and it was also the first non-european brand to obtain DnV type approval. at this point in time, orders and applications of OceanGuard BWMS have covered nearly every type of vessel, including tankers, the company claimed. earlier this year, a new company was formed to design and manufacture filters for the ballast water treatment suppliers. Drammen-based Moss Hydro is led by former OceanSaver head Stein Foss who said that a patent was pending on the filter systems, which should be in place by the end of this year. Production was due to start as Tanker Operator went to press. “Current ballast water treatment filters are prone to blockage, threatening the operation of BWT systems and therefore the ships that use them. added to this, there aren’t enough filter suppliers in the market, meaning that there will be huge bottlenecks as IMO ballast water mandates come into force up to 2016,” Foss explained. “There are issues with reliability in this comparatively young, but very dynamic marketplace. Filters are susceptible to blockages from all sorts of particles and organic objects, from seaweed to ocean sediment. That creates critical problems,” he said. eric Leegwater, Moss Hydro’s vice

president sales and marketing said that the company had signed an exclusive manufacturing agreement with a leading european producer of stainless steel pressure vessels, which gives the company access to a 20,000 sq m production facility with 200 staff members and a large workload capacity. The filters – both single and multi-screen have been designed. The latter’s prototypes have been tested up to a capacity of 3,200 cu m per hour, although the filters can be customised, as 50-60% of vessels are in the mid-size range only needing capacities of between 500-1,000 cu m. a test facility is being used at Gdansk in Poland, where Moss Hydro has set up a subsidiary company to handle the engineering and product integrity functions. Stein said that the filter housings will benefit from super-duplex stainless steel construction, rather than the traditional carbon steel casings. This gives the filters a considerable weight advantage by being around 50-70% lighter than conventional filters. Once production is underway, the filters can be produced in two weeks, he claimed. OceanSaver has won orders for its ballast water treatment systems to be fitted on board two Suezmax lightering tankers to be delivered by a South korean shipyard in mid2014 to Chevron Shipping. “Competitive pricing, low operating costs, and a compatible technical system were key contract parameters; total cost of ownership (TCO) savings were a decisive factor in winning the contract,” said Tor atle eiken, senior vice president sales & marketing, OceanSaver. “TCO was centre stage. OceanSaver’s BWT system is a comprehensive cost model for the industry and when completing hundreds of lightering operations each year, TCO is a significant factor. We believe that OceanSaver balances purchase price and long term costs in a very efficient manner. .“The BWT system offers high quality manufacturing and materials that meet the heavy-duty operational demands of lightering operations. Due to these operations, the system will get extensive use. a BWT system in a shuttle or lightering tanker can be operated more in two years than a VLCC BWT system would be over the life of the vessel. Highly efficient water transfer during operationally critical ballast applications cannot be compromised,” eiken said. “During the past 18 months we have successfully managed to lower per unit costs by 30-40%. Our BWT systems are more

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TECHNOLOGY - baLLasT waTEr TrEaTmENT streamlined than ever, offering ship operators uninterrupted flow, continuous operation, high filtration efficiency, robust quality and long life at a very competitive price,” said Houtan Houshangi, OceanSaver’s CeO. OceanSaver currently has 52 BWT systems on order and seven systems in operation worldwide. Its Mark II system is DnV type approved and has further undergone DnV’s approval programme for installation and safety standards. Optimarin has started to conduct independent testing of filters provided by Boll & kirch, Filtersafe and Filtrex. “Filter performance is critical to the safe and economical operation of all merchant and offshore vessels. We have decided to test our filter types, each built on different technologies, in challenging water conditions to provide accurate assessments of each filter and to further integrate high performance filtration processes in Optimarin’s specialist BWT technology,” said Tore andersen, the company’s sales and marketing director. Higher levels of nitrate concentrations in the Yellow Sea east of China and southwest of South korea have created higher densities of algae, leading to algae blooms – a rapid increase or accumulation in the population of algae in an aquatic system. algae bloom concentrations may reach millions of cells per milliliter. The company has set up a test barge close to Busan and Geoje from which a series of tests are being conducted on 500 cu m filters supplied by the three filter manufacturers. On-site testing will monitor filter capacity, ensuring that each filter more than adequately cleans and processes large volumes of seawater from this area, as well as guaranteeing reliability of uninterrupted and trouble-free operation. “Simply we want to, first hand, evaluate filtration performance in challenging marine environments and apply this experience to further improve and optimise Optimarin’s BWT system performance,” said andersen. all tests will be verified by a third-party. “We will be working with a third-party in all testing. This is to underline our commitment to value-based technology and to distinguish us as a leading suppler of BWT systems. We are pursuing a clearly defined goal: to maintain and extend our position as a market leader in BWT technology over the coming years through top-quality products, to provide first class service and to create simple and flexible, innovative technology, specifically designed to suit the various operational environments of our customers,” said kurt 58

Steinsvik, chief technical officer, Optimarin. Optimarin was one of the companies that advocated for changes to the G8 Guidelines, which failed to materialise at IMO’s MePC 64 meeting. In addition, the company said that potential purchasers of BWT equipment should enquire about type approvals status and the equipment’s suitability for the vessel type and trade. By the time of SMM, there had been 23 type approvals issued and at least another 10 were believed to be in the pipeline, the company said. “The industry can handle the influx, provided something is done now,” the company said at SMM. Those planning drydockings between 2013 and 2016 should plan to retrofit BWT equipment. Optimarin is marketing its BWT offering for retrofits to the small to medium size vessel range with pumping capacities of up to 3,000 cu m per hour. For tankers, an explosion proof version should be ready by the end of this year, the company said. RWO claimed to be the first German manufacturer to obtain a GL certificate for its ballast water treatment unit CleanBallast. The GL approval Certificate confirmed that the CleanBallast system, with a capacity of 150-3,750 cu m per hour, complies with the GL regulations. Moreover, the electrical and electronic components fulfil the stricter GL requirements in comparison to the IMO requirements regarding environmental assessment (vibrations, low temperatures and damp heat). The electromagnetic compatibility (eMC), which is not taken into account in the IMOrequirements, was also tested. The system related software was also subject to a review according to the GL-guidelines. Martyn ayris, rWO’s managing director said that thus far more than 70 orders had been won for the system, including from the tanker sector. He explained that an ex-proof version should be available by the middle of next year, as much preliminary work had already been undertaken. He also said that company was marketing towards the mid-range capacities, rather than the larger units. Severn Trent De Nora has won a contract from aker Philadelphia Shipyard to supply its BaLPUre BWT system to two crude oil tankers under construction at the yard. The type-approved BaLPUre system was selected to be fitted on board two new 115,000 dwt aframaxes being built for Seariver Maritime. They will be trading regularly in the Pacific Ocean between the US West Coast and

alaska. The two sets of BP 3000 systems will be installed as sub-assemblies, capable of treating ballast water flow rates of up to 3,230 cu m per hour. a 40-micron filter with IeCex explosion proof rated control system will be installed in the main ballast line in the pump room. The first installation is scheduled for December 2012, while the second installation is to be completed by July 2013. “It is crucial for shipping operators that the ballast water treatment systems they select are robust, cost-effective and have all the necessary approvals for international trading,” said Jim McGillivray, BaLPUre general manager for Severn Trent De nora. “Severn Trent De nora has made a formal submittal to the US Coast Guard (USCG) for the designation of BaLPUre as an alternate Management System (aMS). With the acceptance of BaLPUre as an aMS, the type approved ballast water treatment system will be accepted for use on board vessels trading in US waters, like the Seariver tankers, that need to comply with the USCG Final rule.” eighteen BaLPUre systems have been installed/sold thus far to international shipowners operating various vessel types such as LnGCs and VLCCs and more. Wärtsilä’s aQUarIUS eC ballast water management system (BWMS) has been granted basic approval by IMO’s MePC 64 meeting in October. The initial application for basic approval was submitted to the IMO through the Dutch Human environment and Transport Inspectorate (ILT) in September 2011 and was reviewed by the Joint Group of experts on the Scientific aspects of Marine environment Protection (GeSaMP) ballast water working group in april 2012. application for IMO final approval was submitted immediately following the endorsement of basic approval by MePC-64. a key element of the final submission was an investigation on the impact of the treated ballast water on uncoated and coated materials typically used in marine and offshore construction. It is expected to be endorsed at MePC 65 in 2013, having successfully completed the mandatory review by GeSaMP. IMO type approval is expected shortly thereafter. Wärtsilä now offers the aQUarIUS eC and aQUarIUS UV, which both became part of the portfolio following the acquisition of Hamworthy in January 2012, in addition to the MarIneX UV ballast water management system, which has been jointly developed and marketed with Trojan Technologies. TO

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coNfeReNce RePoRt

Is crew mentoring the answer? The latest conference in Tanker Operator’s series “Making Money in a Tough Market” was held in Singapore last October and looked at several pressing issues.*

G

iving their views were senior executives from BS Shipmanagement, MTM Shipmanagement, MMS Tokyo (Singapore Branch), Advanced Polymer Coatings, NYK Shipmanagement (retired) and Lyras Shipping. Arvind Sharma, director - loss prevention and HR (marine), BS Shipmanagement group said that the challenge today is to reduce operating costs in every area in order to survive in the prevailing economic environment. Currently, crew costs are one of the highest. “We have had increase in crewing costs…in the last few years that I have been looking after the crewing, we have seen wages increase by 25%, 30%, 35% in the last three to four years, which is tremendous by any industry standards. And even now, although they have started flattening out a bit, they have not stopped rising. Wages are basically a component of supply/demand and unless that is faced, they will keep rising,” he said. “The four main expense areas that we have in crew costs are wages, travel, training and

crew P&I. Ratings wages are dictated by unions. We are not able to control this very much, as we have to reach a midway point and we have to agree what the wages going to be for the next year and they are not really very controllable. “Officers’ wages are dictated by supply and demand and some balance is emerging for junior officers. I am happy to see that over the last five years to six years, a lot of responsible owners and shipmanagers have been creating new openings, creating new cadets, getting new cadets, training new officers,” he said. However, with senior officers it is a different picture. There are as many entities and bodies as there are many opinions. “I have seen opinions of some big industry parties saying that there is no shortage. I tend to disagree with that because every day I see a major crisis somewhere where we are short of some senior officers, or some boast by somebody else. “For sure there is a shortage. Everyday, we face a situation where senior officers are demanding some kind of an extra perk, or increase, because they know that there is a

Arvind Sharma, Director - Loss Prevention and HR (Marine), BS Shipmanagement Group.

November/December 2012

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shortage. I think that we are still going to face a tough time for at least the next two to three years. And that is also subject to everybody co-operating, working together and pumping in more young people into the shipping industry and giving people clear career paths into senior levels,” he warned. “Should we reduce the number of crew? I would tend to be very careful on that particular one. I personally feel that the numbers that we have on board are sufficient, but they are not excessive. “Many owners have taken a short term view and shifted to lower cost crew. That’s a very good fix. It does give short term reviews. But it’s very destructive in the long term. We have shortage of people. We have accelerated promotions. We have many people who still require more experience, jumping up into the next position. If you don’t give them promotion, there are many people outside who are desperately looking for them. They will leave you and take their promotion somewhere else. But what it leads to is many people who do not have the requisite experience sitting in senior positions. And because of that, we have incidents, accidents, injuries, damages going up more and more. “So, my question is, we talk about retention, does it have any bearing on crew costs? I think it has a lot to do with the crew costs. If we are able to hold our people and if those people are happy to work with you, they will not auction themselves to the market bidders. You will be able to meet your matrix requirements. To a certain extent, you will be employing steady people. “I know a lot of owners and good managers who do care about retention…but do all of us care about retention? Or do we still treat the seafarers as a disposable commodity? (conference chairman) Dimitris Lyras mentioned the culture in the office…the lack of experience in the office and I fully agree with that. “On the travel side, my comment is only that travel costs are necessary costs. You can’t do without the travel costs. You want to run ships, you have to send people to join the 59


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coNfeReNce RePoRt ships…they can be certainly improved with better planning,” he said. Moving on to training, Sharma said; “Damages, losses, incident, accidents, injuries, continue to rise in the industry, unfortunately. Is training a cost, or an investment? I still come across people who make statements that training is a cost, or an investment, or who make statements that training is a cost - it is a cost. I still see people who say that the market is bad, we cannot take any more cadets. I still see people who say ‘no we are not sending people for training,’ we are cutting down the training budgets. In my opinion -short sighted. “There is a greater need for soft skill training, which is dealing with motivation, with team work, with people management and people taking personal responsibilities. This is more pressing, more urgently needed, than the need for technical training and teaching them how to do passage planning. Of course this is required, but this in my mind is much more important. “How about cadets? Should they be left with their own devices? Should they be used on board as cheap labour? Or should they be trained with the focus that they are all management level officers after all. We need to focus also on our cadets, what kind of training we are doing for them. “When you invest in training, you are probably going to save a lot of money in damages, in claims and in P&I and hull machinery costs. So, it’s money well spentit’s an investment.

“We cannot do without training, we cannot do without a good safety culture on board, and that is where we need to focus and save our costs. Not cutting costs on wages, or on number of people, but cutting costs, which are going in losses, cutting that money which is just going out in damages in claims. That is where we need to increase our efficiency, increase our team work. “Having majored and motivated skilled people on board will automatically reduce your costs. This is where we need to focus. Not focus on the wages so much, I mean the wages…of course…once we have more of our own people and there is less poaching, of course the wages will stabilise, there are enough people - supply and demand - the wages will stabilise. But this is the area where we need to focus for cutting our costs,” he concluded. Salil Kumar, general manager, technical at MMS Tokyo, Singapore Branch talked about lubricating oils, which form a major part of a vessel’s daily OPEX. He started by discussing the main engine cylinder oil feed rate. “Maker’s recommended minimum feed rate for cylinder oil…normally for an Alpha Lubricator the minimum they say you can go is 0.6 grams per bhp/hour. And for a mechanical type, you can go up to 0.8. But when we are actually checking our ships, we find a much higher feed rate being maintained on board. What is the reason for this? Why are the recommended feed rates not achieved? The primary reason is that the vessels’ engineers

Salil Kumar, General Manager, technical at MMS tokyo, Singapore Branch.

60

are simply reluctant to reduce the feed rates. They are bit scared, or worried about excessive cylinder liner wear. “I will not go into too much detail into the well-known formula to generate specific fuel oil consumption other than that we are using this to calculate the reduction by 0.2 grams per bhp/hour. If we are reducing the fuel rate by 0.2 grams, how much is the savings in costs? And how that is offset with the cost of a liner? “We did the calculation for a VLCC engine. If you calculate from the formula the excess of lube oil, which you are consuming per day is about 150 litres. If you reduce the cylinder lube oil consumption by 0.2 grams per bhp/hour, you will save about 150 litres per day, which comes to about 36,000 litres per year on a VLCC, about 20,000 litres for an Aframax and for an MR, it adds up to about 12,000 litres. “Excess consumption expressed in US dollars. If you consider the cylinder lube oil cost as $2.1 per litre, which is a bit on the low side, as today, the cylinder oil rates are somewhere around $2.3, if I am not wrong. So, for a VLCC you are spending an additional $75,000, for Aframax $43,000 and for an MR it’s about $27,000. “If we consider that the liner is getting worn down faster, though the results are not so bad, even if you take the worst case scenario that the liners are getting worn down, the recovery of all six or eight cylinder liners ranges from three to six years, depending on type. For a VLCC, because it’s an incidental unit, the cost of a liner is somewhere around $42,000. This cost can be recovered in say four and a half years. “So, this is what needs to be explained to the crew and even to the people who are in the office. We have to reassure and convince the people who are operating the ships and people who are on board the ships, that even if we reduce the cylinder oil feed rate, you can recover the cost of all the liners within three to six years. If the vessel is operating at economical speed, then the period is longer. “This is where we need to reassure and convince the crew, which is a tough undertaking. You go on board, you tell them, still then they will come back, as they are very reluctant to reduce the feed rates. We can undertake very close monitoring of the wear down by regular checks and there are some tools, which are also available to monitor this wear down. So, it is not so difficult to reduce the feed rate. It just has to be pursued,” Kumar concluded. TO *To be concluded in the January 2013 issue.

TANKEROperator l November/December 2012


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