Vol 1 No.1 | January - March 2021 | Maritime Voice
w w w . p h i l m a r i n e n e w s . c o m
history of
sh ps REGIONAL NEWS
QATAR PETROLEUM’S US$19B LNG VESSEL ORDER A BOON FOR SOUTH KOREAN SHIPBUILDERS
PHILIPPINES PORTS AUTHORITY (PPA) TO WAIVE SOME PORT FEES FOR SHIPPING COMPANIES AND PROVIDE RETURNING SEAFARERS WITH FREE COVID-19 TESTING
EXCLUSIVE INSIGHTS WITH : ENGR. SAMMUEL T. LIM
“THE IMPACT OF THE PANDEMIC ON THE PHILIPPINES SHIPBUILDING INDUSTRY”
The 7th Edition of Philippines Largest Marine & Offshore Expo
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MESSAGE SUSAN TRICIA | EDITOR
Happy New Year Readers !
Welcome to the inaugural edition of Maritime Voice Philippines! While many of us are hunkering down waiting for a vaccine to arrive to return us to some sort of normality, the Philippines Maritime Industry has still been somewhat bustling! (and struggling with the many protocols they need to adhere to during these times). In this edition we would be finding out more about: Philippines to waive some port fees for shipping companies and provide returning seafarers with free Covid-19 testing, Naval Group Opens Office In Philippines With Submarine Deal In Sight , First wave of ships explore green hydrogen as route to net zero, and many more. Digitalization have also become a priority for many companies who are looking to disrupt the traditional way of running a business especially so in times like this when commuting is not a luxury afforded by many. Read more about 3 Start-ups to Look Out For In The Maritime Industry! Finally, do not miss our exclusive interview with Engr. Sammuel T. Lim about “The Impact of The Pandemic on The Philippines Shipbuilding Industry” . On behalf of my team and I, we would like to urge everyone to adhere to your Government’s advice on the pandemic as we look forward to Philippines getting their vaccination plans ready! Hopefully, the lights get clearer at the end of the tunnel! Stay safe always!
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Editor Susan Tricia Publication Manager Lisa Elizabeth Content Editor Kenny Yong Media Executive Blanca Bustamante Marketing & Promotions Abigael Lamparas Graphic Designer Njan Cittanando
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The content of Maritime Voice Philippines Magazine (and website) does not necessarily reflect the views of the editor or publishers and are the views of its contributors and advertisers. The digital edition may include hyperlinks to third-party content, advertising, or websites, provided for the sake of convenience and interest. The publishers accept no legal responsibility for loss arising from information in this publication and do not endorse any advertising or products available from external sources. Maritime Voice Philippines Magazine and its website do not warrant that the information in it will be error-free or will meet any particular criteria of performance or quality. Your use of the information contained in the Maritime Voice Philippines magazine and website is at your own risk. You assume full responsibility and risk of loss resulting from the use of this website or information in it. None of Maritime Voice Philippines, Fireworks Trade Exhibitions & Conferences Philippines, Inc. or its affiliates, or any partners, principals, stockholders or employees of any thereof will be liable for any special, indirect, incidental, consequential or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence) or otherwise, relating to the use of this website or information contained in it. No part of this publication may be reproduced or stored in a retrieval system without the written consent of the publishers. All rights reserved.
AN INTERNATIONAL EXHIBITION OF MARITIME, SHIPBUILDING, OFFSHORE TECHNOLOGIES, EQUIPMENT, AND SUPPORTING INDUSTRIES
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CONTENTS
REGIONAL NEWS
TABLE OF
SHIPS CARRYING STORED GASOLINE TO DISCHARGE CARGOES IN INDONESIA
08
QATAR PETROLEUM’S US$19B LNG VESSEL ORDER A BOON FOR SOUTH KOREAN SHIPBUILDERS
09
KAGUYA CONDUCTS JAPAN’S FIRST SHIP-TO-SHIP LNG BUNKERING
10
EPI’ STS POWER SERVICE EXPECTED TO SUPPORT GREEN PORT, CREATE FUEL EFFICIENCY
12
WORLD NEWS GLOBAL SHIPBUILDING ORDERS SINK TO 20YEAR LOW AS INDUSTRY GRAPPLES WITH NEW ENVIRONMENTAL RULES, COVID-19 CRISIS
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WORLD NEWS TOTAL SHIPPING LOSSES ARE DECLINING, BUT CHALLENGES PERSIST -REPORT
DID YOU KNOW? HISTORY OF SHIP
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COVER STORY
THE IMPACT OF THE PANDEMIC ON THE PHILIPPINES SHIPBUILDING INDUSTRY
22
FIRST WAVE OF SHIPS EXPLORE GREEN HYDROGEN AS ROUTE TO NET ZERO
24
COMMENTARY
SINGAPORE PORTS AND SHIPS ARE TURNING THE TIDE ON CLIMATE CHANGE
CONTENTS
OFFSHORE
TABLE OF
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SINGAPORE’S FIRST FLOATING ENERGY STORAGE SYSTEM
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TURKEY’S FLOATING POWER PLANT COMPANY KARPOWER INTERNATIONAL (KARPOWERSHIP) HAS BEGUN OPERATION ON ITS FIRST LNG-TOPOWER PROJECT OFFSHORE INDONESIA
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HERALDING DEAL WITH CHINA, PHILIPPINES RESTARTS OFFSHORE OIL-GAS EXPLORATION IN DISPUTED SEA
36
INNOVATION & TECHNOLOGY
3 START-UPS TO LOOK OUT FOR IN THE MARITIME INDUSTRY!
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NAVAL DEFFENCE & MARITIME SECURITY NAVAL GROUP OPENS OFFICE IN PHILIPPINES WITH SUBMARINE DEAL IN SIGHT PHILIPPINE NAVY RECEIVED THE (UAS) SCANEAGLE
40 42
PORT NEWS
PHILIPPINES PORTS AUTHORITY (PPA) TO WAIVE SOME PORT FEES FOR SHIPPING COMPANIES AND PROVIDE RETURNING SEAFARERS WITH FREE COVID-19 TESTING
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Regional News
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SHIPS CARRYING STORED GASOLINE TO DISCHARGE CARGOES IN INDONESIA
Two of six tankers used to store gasoline in Asia have arrived in Indonesia, with shipments into Asia’s largest petrol importer expected to rise this month versus May as Pertamina replenishes stocks, according to industry sources and Refinitiv shipping data.
This is up from May which was estimated at between 5 million and 6 million barrels, half of monthly average in 2019 and down from February’s imports of 8 million barrels, according to Refinitiv Oil Research.
A third ship, the Panamax-sized Nordvenus, Indonesia’s fuel demand slumped in the second chartered by Pertamina in April to store gasoline, quarter and inventories rose after the government discharged its cargo in Singapore in May, Refinitiv imposed measures to curb the coronavirus, data showed. prompting companies to store gasoline onboard “As countries emerge from lockdowns and economic ships off Singapore and Malaysia. activities resume, we expect a gradual recovery in The tankers - Aframax-sized Sloane Square, chartered oil product demand over 2H. Among the key fuels, by Equinor and carrying Norwegian gasoline - the demand recovery for gasoline should come and Panamax-sized SCF Prudencia chartered by fastest,” said Sri Paravaikkarasu, director for Asia oil Pertamina, arrived at Indonesia’s Merak and Tuban at consulting firm FGE. ports, respectively, in the past week. Asia’s gasoline refining margin has returned to a The ships can carry more than 120,000 tonnes (1 slight premium of 37 cents to Brent crude on June million barrels) of gasoline when fully loaded. The 3 for the first time in two weeks. <GL92-SIN-CRK> shipments were planned “to maintain our stockpile levels”, Pertamina’s spokeswoman said, although “Gasoline margins have been volatile despite Indonesia’s May petrol demand as of Wednesday, demand recovery as it takes time for the excess was still 27% below February’s level. Fuel stocks cargoes to be absorbed,” said KY Lin, spokesman fell in May as its Balikpapan refinery was shut for of Formosa Petrochemical Corp which operates a 540,000 barrels per day (bpd) refinery in Mailiao, maintenance. Taiwan. Equinor has declined to comment. “But demand for naphtha, as a whole, would help to Indonesia’s June imports are estimated at about 7 lift the entire light distillates fundamental.” million barrels, said a trading source who tracks its purchases closely. 8
January - March 2021 | Maritime Voice
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QATAR PETROLEUM’S US$19B LNG VESSEL ORDER A BOON FOR SOUTH KOREAN SHIPBUILDERS
Regional News
Shares in the three shipbuilders rallied over 20 per cent on Tuesday. “This is the largest single LNG vessel order in history. We have never seen so many LNG vessels ordered in the same year, let alone by a single buyer,” said Saul Kavonic, analyst from Credit Suisse.
The industry has been suffering from a prolonged shipbuilding slump that has led to massive losses, SEOUL: South Korea’s ailing shipbuilders have been job cuts and a bailout from the government. Lee thrown a lifeline in an increasingly tough market said market forecasts had indicated a 30 per cent with a US$19 billion order from Qatar Petroleum for fall in orders this year from a year ago. liquefied natural gas (LNG) ships, analysts said on Tuesday (Jun 2). Park Moon-hyun, an analyst at Hana Financial Investment, said the deal could be an “opportunity Qatar’s state-run LNG producer signed agreements for South Korean shipbuilders to overcome setbacks with South Korea’s “Big Three” shipyards on Monday they have faced ... and focus on what they are good to secure more than 100 ships through 2027, in the at”. largest-ever single LNG vessel order. Qatar Petroleum did not announce breakdown With a steep market downturn on the horizon, orders for each company. the orders had come at the right time for Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Samsung Heavy said it expects to sign deals starting Industries Holdings and Samsung Heavy Industries, this year through 2024 and expected a positive analysts said. impact on orders by shipping companies who are considering LNG vessels. Both Hyundai Heavy and “They would have been worrying about their own Daewoo Shipbuilding declined to comment. survival next year if they didn’t win this Qatar deal,” said Lee Dong-heon, an analyst at Daishin Securities, who estimated the trio would now have an order backlog stretching a year-and-a-half. January - March 2021 | Maritime Voice
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Regional News
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KAGUYA CONDUCTS JAPAN’S FIRST SHIP-TOSHIP LNG BUNKERING On October 20, the LNG bunkering vessel (LBV) Kaguya supplied LNG fuel to an NYK pure car and truck carrier (PCTC) at the berth of Shin Kurushima Toyohashi Shipbuilding Co. Ltd. (head office: Toyohashi City, Aichi Prefecture) — the first time in Japan for LNG fuel* to be supplied to a vessel via Ship-to-Ship bunkering.** Kaguya, Japan’s first LBV, is operated by Central LNG Marine Fuel Japan Corporation, which is a JV company among NYK, Kawasaki Kisen Kaisha, Ltd., JERA Co., Inc., and Toyota Tsusho Corporation. The vessel will be based at Kawagoe Thermal Power Station and will soon begin supplying LNG fuel to ships in the Chubu region using Ship-to-Ship bunkering.
Sakura Leader, the PCTC that received the LNG fuel, is the first large LNG-fueled ship to be built at a shipyard in Japan. The vessel is scheduled to be delivered in late October and will be one of the largest PCTCs in the world, capable of transporting approximately 7,000 units (standard vehicle equivalent). The IMO (International Maritime Organization) has agreed on an ambition to reduce GHG emissions from shipping by at least 50 percent by 2050, and it is expected that many vessels using LNG as the main fuel will be constructed in the future. NYK has been making a proactive effort to realize environmentfriendly transportation by reducing GHG emissions. In fact, in 2015 Japan’s first LNG-fueled ship, the tugboat Sakigake, was delivered. In 2016, the world’s first LNG-fueled PCTC in Europe launched. In 2017, the world’s first purpose-built LNG bunkering vessel entered operation. And in 2023, the world’s first large LNG-fueled coal carrier is scheduled to be delivered. NYK has been a leader in all these firsts and will continue to develop the LNG-fuel market in terms of LNG-fuel supply and sale, promote the conversion of marine fuel to LNG, and contribute to reducing shipping’s environmental burden.
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Regional News
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EPI’ STS POWER SERVICE EXPECTED TO SUPPORT GREEN PORT, CREATE FUEL EFFICIENCY The service of shore to ship (STS) power (electricity) distribution of Eco Power PT Energi Pelabuhan Indonesia (EPI) is expected to support the port to go green (green port) and to create efficiency in shipping fuel consumption.
“This is our commitment to support the green port. This STS will minimize the air pollution from engine’s fuel burning during a vessel berthing at the port. This minimize noises from vessel engine,” said Imanuddin.
PT EPI (Eco Power), a subsidiary of state port operator PT Pelabuhan Indonesia II/IPC with service focus on supply of electricity at any port activities, has just launched shore to ship (STS) power (electricity) distribution at Tanjung Priok Port on Thursday, October 15, 2020.
In addition, according to Imanuddin, this will create cost efficiency of shipping company. “We expect this will cut the shipping companies fuel cost by 1530%. In addition, this will give time for vessel engine to do maintenance,” he said.
For first phase, EPI had procured two convertors, This STS is a supply of electricity from EPI’s power meaning that EPI can provide this service for plant (supply) to a ship. This electricity supply is two vessels simultaneously. “Let us see how the expected to help a vessel engine works during shipping lines response. We are ready to procure berthing at the port, thus minimizing fuel (marine more convertors if demand will increase,” he said. fuel) consumption during berthing. IPC Vice President Director Hambra appreciates this On this launching, this STS service was supplied EPI’s new service, saying the parent company IPC electricity to Meratus containership – Meratus will support for this service expansion in the future. Hambra also expects all shipping lines to optimize Jayapura Vessel. this EPI’s service to support their operational cost On his remark speech for this STS launching, EPI efficiency. President Director Imanuddin said that this service remained the EPI’s commitment to support the “We are ready to provide this service at any of program of green port while on the other hand this our branch ports. We hope the shipping lines can optimize this service, both to support green port was expected to cut marine fuel consumption. and to cut their fuel cost as well,” Hambra said. 12
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World News
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GLOBAL SHIPBUILDING ORDERS SINK TO 20-YEAR LOW AS INDUSTRY GRAPPLES WITH NEW ENVIRONMENTAL RULES, COVID-19 CRISIS Ordering new ships is now the lowest priority for shipping companies as the pandemic has hit economic activity and supply chains. Fewer orders and slower fleet growth are likely to bolster shipping rates. Thereâ&#x20AC;&#x2122;s hardly anyone buying new ships, with orders plunging to a 20-year low due to a potent combination of uncertainty over environmental regulations, the economic fallout from the coronavirus pandemic and a lack of financing. 14
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World News
“The IMO has brought in significant, ambitious and important targets around emissions,” said Clarksons Research’s managing director Stephen Gordon. It remains unclear the exact policies and regulations that might be introduced and what technology will be adopted, he said. Ships are longterm investments, and buyers run the risk that their vessels will become obsolete.
off shipping after the defaults they suffered after 2008.”
The global shipping industry is in the midst of one of its biggest changes in a generation after stricter environmental rules kicked in at the start of the year. Shipowners face paying more for cleaner fuel, retrofitting ships with pollution-reducing scrubbers or even ordering new vessels. Compounding the uncertainty has been Covid-19, which has upended supply chains and stalled trade flows.
That’s already translating to increasing costs for transporting goods by ocean liner, with one benchmark of trans-Pacific container rates more than doubling since late-May to a record. Bulkcarrier costs have also rebounded from a four-year low. Maersk, which idled about 20 per cent of its capacity in April before gradually reinstating it in subsequent months, saw earnings beat estimates in part due to improved freight rates.
“Covid-19 has become the most immediate issue,” Gordon said. While challenges due to lockdown measures are easing, “the economic uncertainty, disruption to trade, and volatility in freight rates” caused by the virus are driving orders lower. Demand growth for containers is expected fall this year due to Covid-19, according to AP MollerMaersk, which predicts a return to 2019 volumes in the early part of 2021. The world’s largest container line ordered only eight vessels in the second quarter, putting its order book-to-fleet ratio at 9.4 per cent. Globally, the rate is about 8 per cent, meaning orders for new ships are at a two-decade low, according to Clarksons’ Gordon.
Still, fewer orders and slower fleet growth are likely to likely bolster shipping rates. Shipping lines are likely to continue to keep capacity in check into 2021 to minimise the impact from slowing global trade, said IHS Markit’s Kapoor.
The offshore sector has seen demand for oil rigs and supply vessels hammered as energy prices remain low and there’s little interest in new exploration investments, said Leszczynski. It’s a “gamble” to purchase an oil tanker amid uncertainty over demand, he said. While oil consumption has grown in the past two decades, climate change mitigation efforts are spurring market expectations that appetite will decline.
While the coronavirus adds to short-term uncertainty, there’s a better medium-to-long term outlook. Qatar signed a deal in June worth around US$19 billion with South Korean shipbuilders for more than 100 liquefied natural gas vessels, Maersk “The virus is a further hit to demand that’s already expects a progressive recovery in volumes and port barely even there,” said Rahul Kapoor, head of operator DP World said it’s positive on fundamentals. commodity analytics and research, maritime and trade at IHS Markit. “With the pandemic’s hit to The shipbuilding sector is set to remain subdued economic activity and supply chains, ordering new for the next few years, with a revival possible eight ships is now the lowest priority for companies. to 10 years from now, said Leszczynski. Vessels built They’re concentrating on just trying to maintain during the boom years of between 2007 and 2010 profit margins.” The virus has also delayed the will require replacement, as most have a lifespan of completion of shipbuilding projects, he said. about 20 to 25 years, he said. Shipowners are also lacking the finances to make purchases, according to Ralph Leszczynski, head of research at shipbroker Banchero Costa & Co. “Most shipping markets are coming from a relatively poor decade, 2009 to 2019, in terms of earnings so most shipowners do not have that much cash in their pockets,” he said. “External finance is also in short supply as banks are now largely steering clear January - March 2021 | Maritime Voice
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TOTAL SHIPPING LOSSES ARE DECLINING, BUT CHALLENGES PERSIST - REPORT The record low 41 large shipping losses worldwide in 2019 represents a 20% improvement year-on-year and almost 70% over a decade, but the coronavirus crisis could endanger the long-term safety improvements in the shipping industry for 2020 and beyond, as difficult operating conditions and a sharp economic downturn present a unique set of challenges, according to recent report from marine insurer Allianz Global Corporate & Specialty (AGCS). Consequences of coronavirus and a sustained economic downturn could threaten long-term safety improvements and trigger an uptick in losses from cost-cutting measures, fatigued crew, idle vessels and weakened emergency response, says AGCS in its Safety & Shipping Review 2020 analyzing reported shipping losses over 100 gross tons (GT) and identifying safety and risk management challenges. In addition, rising geopolitical tensions, emissions rules and decarbonization targets, misdeclared cargo and fire incidents continue to pose risk challenges. “Coronavirus has struck at a difficult time for the maritime industry as it seeks to reduce its emissions, navigates issues such as climate change, political risks and piracy, and deals with ongoing problems such as fires on vessels,” says Baptiste Ossena, Global Product Leader Hull Insurance, AGCS. “Now the sector also faces the task of operating in a very different world with the uncertain public health and economic implications of the pandemic.”
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World News
In 2019, 41 total losses of vessels were reported around the world, down from 53 one year earlier. This represents an approximate 70% decline over 10 years and is a result of sustained efforts in the areas of regulation, training and technological advancement, among others. More than 950 shipping losses have been reported since the start of 2010. The shipping industry has continued to operate through the pandemic, despite disruption at ports and to crew changes. While any reduction in sailings due to coronavirus restrictions could see loss activity fall in the interim, the report highlights challenges that could heighten risks. Among these are: • • • • • •
The inability to change crews is impacting the welfare of sailors, which could lead to an increase in human error on board vessels. Disruption of essential maintenance and servicing heightens the risk of machinery damage, which is already one of the major causes of insurance claims. Reduced or delayed statutory surveys and port inspections could lead to unsafe practices or defective equipment being undetected. Cargo damage and delay are likely as supply chains come under strain. The ability to respond quickly to an emergency could also be compromised with consequences for major incidents, which are dependent on external support. The growing number of cruise ships and oil tankers in lay-up around the world pose significant financial exposures, due to the potential threat from extreme weather, piracy or political risks.
“Shipowners also face additional cost pressures from a downturn in the economy and trade,” says Captain Rahul Khanna, Global Head of Marine Risk Consulting at AGCS. “We know from past downturns that crew and maintenance budgets are among the first areas that can be cut and this can impact the safe operations of vessels and machinery, potentially causing damage or breakdown, which in turn can lead to groundings or collisions. It is crucial that safety and maintenance standards are not impacted by any downturn.” According to the report, the South China, Indochina, Indonesia and Philippines maritime region remains the top loss location with 12 vessels in 2019 and 228 vessels over the past decade – one in four of all losses. High levels of trade, busy shipping lanes, older fleets, typhoon exposure and safety issues on some domestic ferry routes are contributing factors. However, in 2019, losses declined for the second successive year. The Gulf of Mexico (four) and the West African Coast (three) rank second and third. January - March 2021 | Maritime Voice
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Vessels over 100GT only
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Source: Lloydâ&#x20AC;&#x2122;s List Intelligence Casualty Statics Data Analysis & Graphic: Allianz Global Corporate & Speciality
Cargo ships (15) accounted for more than a third of vessels lost in the past year, while foundered (sunk/ submerged) was the main cause of all total losses, accounting for three in four (31). Bad weather accounted for one in five losses. Issues with car carriers and roll-on/roll-off (ro-ro) vessels remain among the biggest safety issues. Total losses involving ro-ros are up year-on-year, as well as smaller incidents (up by 20%) â&#x20AC;&#x201C; a trend continuing through 2020. While total losses continue to see a positive trend, the number of reported shipping incidents (2,815) increased by 5% year-on-year, driven by machinery damage, which caused over one in three incidents (1,044). A rise in incidents in the waters of the British Isles, North Sea, English Channel and Bay of Biscay (605), meant it replaced the East Mediterranean as the top hotspot for the first time since 2011, accounting for one in five incidents worldwide. There were almost 200 reported fires on vessels over the past year, up 13%, with five total losses in 2019 alone. Misdeclared cargo is a major cause. Taking steps to address this issue is vital as it will only worsen as vessels become bigger and the range of goods transported grows. Chemicals and batteries are increasingly shipped in containers and pose a serious fire risk if they are misdeclared or wrongly stowed. Meanwhile, events in the Gulf of Oman and the South China Sea show political rivalries are increasingly being played out on the high seas and shipping will continue to be drawn into geopolitical disputes. Heightened political risk and unrest globally has implications for shipping, such as the ability to secure crews and access ports safely. In addition, piracy remains a major threat with the Gulf of Guinea reemerging as the global hotspot. Latin America is seeing armed robbery increase and there is renewed activity in the Singapore Strait. Shipowners are also increasingly concerned about the prospect of cyber-conflicts. There has been a growing number of GPS spoofing attacks on ships, particularly in the Middle East and China, while there have been reports of a 400% increase in attempted cyber-attacks on the maritime sector since the coronavirus outbreak. 18
January - March 2021 | Maritime Voice
Did You Know?
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History Of Ships
Surviving clay tablets and containers record the use of waterborne vessels as early as 4000 BCE. Boats are still vital aids to movement, even those little changed in form during that 6,000-year history. The very fact that boats may be quite easily identified in illustrations of great antiquity shows how slow and continuous had been this evolution until just 150 years ago. And though that was the time when steam propulsion became predominant, it never was anywhere universal in local transport. Because some solutions to the problem of providing water transport were eminently successful and efficient several millennia ago, there are a number of boats still in use whose origins are lost in prehistory.
Early rowed vessels The earliest historical evidence of boats is found in Egypt during the 4th millennium BCE. A culture nearly completely riparian, Egypt was narrowly aligned along the Nile, totally supported by it, and served by transport on its uninterruptedly navigable surface below the First Cataract (at modern-day AswÄ n). There are representations of Egyptian boats used to carry obelisks on the Nile from Upper Egypt that were as long as 300 feet (100 metres), longer than any warship constructed in the era of wooden ships. The Egyptian boats commonly featured sails as well as oars. Because they were confined to the Nile and depended on winds in a narrow channel, recourse to rowing was essential. This became true of most navigation when the Egyptians began to venture out onto the shallow waters of the Mediterranean and Red seas. Most early Nile boats had a single square sail as well as one level, or row, of oarsmen. Quickly, several levels came into use, as it was difficult to maneuver very elongated boats in the open sea. The later Roman two-level bireme and three-level trireme were most common, but sometimes more than a dozen banks of oars were used to propel the largest boats. 20
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Cover Story
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for Mariners’ Employment (or FAME), the most prestigious and largest manning association and the Founding Chairman of the Joint Manning Group (or JMG) which is the federation of manning associations in the Philippines.
Exclusive Insights With Engr. Sammuel T. Lim
THE IMPACT OF THE PANDEMIC ON THE PHILIPPINES SHIPBUILDING INDUSTRY Could you share with us a bit about your experience in the maritime industry and a simple background of the association to our readers? Engr. Sammuel T. Lim holds a degree in Naval Architecture and Marine Engineering from NAMEI Polytechnic Institute, Manila. He graduated Cum Laude in 1983 and set a record by topping the Philippine Licensure Examination for Naval Architecture and Marine Engineering in the same year. Engr. Lim has more than 30 years of experience in the shipping industry, having started as Assistant Field Supervisor for Citadel Carrier (Philippines), Technical Superintendent for Philippine President Lines, Inc. (Philippines), Hull and Engineer Surveyor and Quality Officer for Lloyd’s Register (Philippines), Quality Manager of IMC Pan Asia Alliance (Singapore), Quality Assurance Manager for Unithai Shipyard and Engineering Ltd. (Thailand), and Country Representative of IMC Shipping Co. Pte. Ltd. (Philippine Representative Office). Presently, he is the Chairman of Great Southern Maritime Services Corp. and President of Great Swiss Shipping Corp. He is also an active player in the industry. Engr. Lim was the Past President of the Filipino Association 22
Engr. Lim is also the Chairman and Founding President of the Society of Naval Architects and Marine Engineers (or SONAME) Inc.; Board Director of the Maritime Industry Authority of the Philippines, Member of the Technical Panel for Maritime Education and a Member of the STCW Advisory Council. With the pandemic lasting almost a year, how have the local shipbuilding industry been coping? Are there any new projects that are still ongoing? The local shipbuilding industry is greatly affected by the pandemic and the deep business slowdown as in most business during this pandemic. Although, shipping has been declared as part of essential business and continues to operate, the volume of cargo and passengers have steeply declined due to health concerns. Existing projects are continuing but a lot of new projects are on a wait-and-see mode. Hopefully, with the vaccine introduction and roll-out which may take another year to have an effect on business, things would gradually improve. Are there any government incentives given out to assist the local shipbuilders during these turbulent times? Local shipbuilders during these trying times need financial assistance and very soft loans to tide them over. A few were reported to have totally stopped operations and laid off workers. There are legislative measures to make this happen but it is not clear yet on the scope and magnitude of these measures. Government should act faster. Philippines was considered one of the largest shipbuilders in the world (#4) pre-covid, do you expect that position to change when Philippines embark on the recovery phase? There will be definite change to this since Hanjin’s Subic shipyard has closed even before the pandemic and will affect the Philippine position.
January - March 2021 | Maritime Voice
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2020 had posed many challenges in the international Maritime industry, in your opinion, what do you foresee in the Philippines shipbuilding industry between 2021 to 2022? And what type of hurdles could the local shipbuilders be facing on the rough route to recovery?
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The main hurdle for shipbuilders is maintaining cash flow and unless government acts faster, the local ship building industry would continue to face difficult times.
What will be hopeful for this industry is that the Philippines and the world has a huge and growing Tough times last year and more tough times ahead population which will continue to spur world-wide as it will still take a few years for the Philippinesâ&#x20AC;&#x2122; local and domestic trade, thus benefitting shipping and ship building industry to recover given that vaccine the ship building industry. roll-outs would not be a fast as planned eg. USA etc. and develop the herd immunity to normalize commerce.
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Cover Story
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FIRST WAVE OF SHIPS EXPLORE GREEN HYDROGEN AS ROUTE TO NET ZERO.
Developers across the world are for the first time testing the use of hydrogen to power ships as the maritime industry races to find technologies to cut emissions and confidence grows the fuel is safe to use commercially.
Swiss-headquartered technology group ABB is working on hydrogen fuel cell systems, including for passenger and cargo ships. One of its projects involves developing a fuel cell-based power and propulsion system for a new-build river vessel along France’s Rhone river.
LONDON: Developers across the world are for the first time testing the use of hydrogen to power ships “ABB sees short-distance shipping as the first as the maritime industry races to find technologies adopters of the fuel cell technology,” said Juha to cut emissions and confidence grows the fuel is Koskela, division president, ABB Marine & Ports. safe to use commercially. FUEL SYSTEM PILOTS To reach goals for the shipping industry set by the United Nations, industry leaders say the first netzero ships must enter the global fleet by 2030. Ships powered by green hydrogen could help meet the target.
Green hydrogen fuel costs around 4-8 times the price of very low sulphur fuel oil, estimates by risk management firm DNV GL find. Other types of hydrogen are cheaper, but that is because they are produced using fossil fuel, which means they are not emissions free.
Made from electrolysis to split water into hydrogen and oxygen using electricity from renewable Green hydrogen is expected to fall in price over the energy, green hydrogen is emissions free. next couple of decades as the cost of renewable Oil major Royal Dutch Shell last month reiterated energy and electrolysers falls. its commitment to hydrogen, which it saw as “advantaged over other potential zero-emissions For companies to invest en masse, however, the associated infrastructure for refuelling fuels for shipping”. and transportation, including electrolysers, While hydrogen’s green credentials make it compressors, storage, tanks and pipelines, must attractive to industrial users, including ship owners also be in place. and oil majors, it is far less dense than other fuels, meaning more onboard fuel storage capacity is Christos Chryssakis, of DNV GL, said it took around needed. That makes it more feasible, for now, for 20 years to establish liquefied natural gas refuelling infrastructure. He said the process could be quicker use in vessels on short voyages. 24
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Cover Story
for hydrogen, but industry estimates find many Felixstowe port is looking into hydrogen, based on billions in investment would be needed. its proximity to offshore windfarms and a nuclear power plant. In Norway, regulations could accelerate the process. Cruise ships and ferries sailing through the country’s heritage-protected fjords must be emissions-free by 2026, which is prompting shipping companies to consider fuel combinations including hydrogen. Norwegian-headquartered ship designer and ship yard Ulstein is working on building a support ship for the offshore oil sector that would use hydrogen as one power option.
SHORT TRIPS VERSUS OCEAN TRADE
“Rather than wait for hydrogen bunker infrastructure to be matured, we went for a hybrid design using a containerised solution for the hydrogen storage tanks,” Ulstein’s Nick Wessels said.
The shipping industry, which is responsible for 2.89per cent of global CO2 emissions, is in the midst of a transition to fuels that would reduce those emissions by 50per cent by 2050 from 2008 levels.
The company is also working on a separate hydrogen project for wind installation turbine vessels, he said. Municipalities in Norway have launched a tender process, which includes the development of hydrogen-powered, high-speed vessels by 2022, officials say.
A study by the non-profit Global Maritime Forum (GMF), which mapped out 66 projects looking at zero emissions in shipping, showed 19 of the 21 initiatives relating to fuel production used hydrogen in some form.
The majority of these anticipated using hydrogen to make other products, such as ammonia, methanol or ethanol, to improve the schemes’ viability. Seven Belgium’s Compagnie Maritime Belge (CMB) built are pure hydrogen projects. its first hydrogen-powered passenger shuttle boat, which hit the waters in 2017 in Belgium. It will Some in the shipping industry remain unconvinced provide a hydrogen ferry for Japan by April next year hydrogen is safe as a power source for larger vessels - the first hydrogen ferry in Asia - and is involved in carrying large amounts of fuel onboard. a tug boat project with the port of Antwerp, CMB’s chief executive Alexander Saverys said. But for many, the bigger question is economics. Other countries are also making strides.
Other ports are working on hydrogen options at “The big challenge using hydrogen for deep sea terminals. shipping is the cargo volume you would lose to have enough hydrogen stored for long voyages, The Spanish port of Valencia said it will deploy which could be a commercial killer,” Kasper Søgaard, prototype machinery, including for box container GMF head of research, said. handling operations, early in 2021, while Britain’s Ulstein’s Wessels expects the need for backup fuel options will persist until there leap in technology and infrastructure. “I don’t think you can build a completely hydrogenpowered vessel of large size at this point in time. There will still need to be another accessible power source like diesel,” he said.
January - March 2021 | Maritime Voice
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Commentary
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SINGAPORE PORTS AND SHIPS ARE TURNING THE TIDE ON CLIMATE CHANGE The lull in shipping activity, triggered by the COVID-19 crisis, presents an opportunity for the maritime industry to double down on decarbonisation efforts, says Dr Sanjay Kuttan, Executive Director of Singapore Maritime Institute. SINGAPORE: Singapore’s two main ports, PSA Container and Jurong Port, are living labs for green technologies.
The COVID-19 crisis has led to a lull in shipping activity presenting an opportunity for the maritime sector to accelerate decarbonisation efforts and build a greener supply chain. Globally, the maritime sector accounts for 2 to 3 per cent of greenhouse gas emissions. Recognising its significant environmental impact, the International Maritime Organization (IMO) has ratified greenhouse gas reduction targets: 40 per cent by 2030 and 50 per cent by 2050 from 2008 levels.
Jurong Port boasts of a 9.65 megawatt-peak solar photovoltaic system. Mounted on warehouse CLEANER HARBOUR CRAFTS rooftops, it is the world’s largest solar installation in Over the past decade, the global maritime sector has a port. Part of the electricity generated is used for been making efforts to reduce the carbon footprint port operations, while the rest is supplied to the of vessels. New ships must comply with the IMO’s national power grid. Energy Efficiency Design Index – a set of regulations for the vessel to be designed and built for maximum The port is also testing an artificial intelligence energy efficiency since 2011. (AI)-driven Smart Multi-Energy System, including a direct-current warehouse microgrid system, which The IMO also implemented the Ship Energy will further reduce its carbon footprint. Efficiency Management Programme that same year, which provides a framework for operating Jurong Port is also home to the world’s first green ships and fleets to improve energy efficiency. These berths – made of recycled concrete from existing programmes develop guidelines to drive down berths and yards. energy consumption to a minimum for each vessel type. Furthermore, PSA has started to electrify and automate its cranes and ground vehicles. Once These energy efficiency principles can be also complete, the port operator will have the world’s applied to Singapore’s 2,300 licensed harbour crafts largest fleet of automated guided vehicles powered that provide goods and services to ships calling at by batteries instead of diesel. ports. 26
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Seven in 10 harbour crafts are motorised, ranging from ferries, tugs, bunkers, and launches. Most, if not all, are burning marine diesel, contributing to our national carbon footprint.
Commentary
Biofuels as a drop-in fuel (mixed with normal fuel), can further reduce the carbon footprint. However, working with original equipment manufacturers and vessel operators is key to honouring warranties and preserving operational reliability.
The opportunity to decarbonise these vessels through electrification or the use of sustainable There are many research and development (R&D) biofuels is significant. The local marine environment opportunities related to harbour crafts: Power will also benefit from reduced air and noise pollution. system optimisation, new battery or fuel cell technology, 3D printing of lighter and sturdier The Maritime and Port Authority of Singapore propellers and so on. (MPA) has also worked towards the development of liquefied natural gas (LNG)-fuelled tugs, which are Domestic yards are headed in this direction. Earlier now operational and contributing to the sector’s this year, BH Global, a power system designer and integrator, and Penguin, a ship builder, announced decarbonisation efforts. a consortium of partners to build Singapore’s first LNG is generally accepted as having a lower hybrid-electric fast launch. carbon footprint than marine diesel. There are less than three vessels currently in operation but with In 2018, Norwegian shipping company Norled better hybrid designs for cost and performance ordered three hybrid plug-in ropax ferries (which can tap shore-based charging) from Singapore’s optimisation, more can be expected. shipbuilder Sembcorp Marine.
CLEANER BUNKER FUEL Singapore, one of the world’s busiest port with verify the performance of the fuels for the role of 1,000 ships visiting each day, is a key bunkering hub. the vessels, engine performance and carbon mitiIt delivered about 48 million tonnes of mostly low- gation impact among other criteria. grade fuel in 2019 – almost half of global demand. Dealing with this new portfolio of fuels will Looking into the future, Singapore needs to move require fresh consideration of new factors. away from carbon-intensive fuels to further the decarbonisation efforts across the sector. Other Product sourcing, verification of “green” status, than LNG, new fuels on the horizon include biofuels, safety standards for storage and handling and so on are not trivial considerations if Singapore is methanol, liquid ammonia and liquid hydrogen. striving to be the global bunkering hub for green There are a number of ongoing alternative fuel pilots fuels, and to avoid the bunkering infrastructure we invest in ending up as stranded assets. and demonstration projects worldwide. These January - March 2021 | Maritime Voice
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Commentary
R&D NECESSARY FOR A SUSTAINABLE BOLD LEADERSHIP FUTURE CHANGE NEEDED
AND
MINDSET
SINGAPORE: Singapore’s two main ports, PSA Decarbonising the maritime industry will require Container and Jurong Port, are living labs for green bold leadership and mindset changes. technologies. Singapore is also investing and innovating for Jurong Port boasts of a 9.65 megawatt-peak solar a more sustainable future. MPA and its partners photovoltaic system. Mounted on warehouse have set aside S$40 million under the Maritime rooftops, it is the world’s largest solar installation in GreenFuture Fund for research, test-bedding and a port. Part of the electricity generated is used for adoption of low-carbon technologies. port operations, while the rest is supplied to the This will contribute towards creating and national power grid. enabling the adoption of green alternative fuels, The port is also testing an artificial intelligence electrification, and circular economy solutions. (AI)-driven Smart Multi-Energy System, including a direct-current warehouse microgrid system, which Furthermore, the growing investment interest will further reduce its carbon footprint. from venture capitalists, such as Rainmaking and NTU’s EcoLabs Program augurs well for Jurong Port is also home to the world’s first green maritime innovators and start-ups to deliver our berths – made of recycled concrete from existing decarbonisation goals. berths and yards. As Prime Minister Lee Hsien Loong said in his 2019 Furthermore, PSA has started to electrify and National Day rally, climate change is an existential automate its cranes and ground vehicles. Once issue for us all. Decarbonising the shipping sector complete, the port operator will have the world’s is key for Singapore to maintain its global maritime largest fleet of automated guided vehicles powered leadership and keep Singapore’s economy humming for the prosperity of all. by batteries instead of diesel. The writer Dr Sanjay C Kuttan is Executive Director of Singapore Maritime Institute and the views expressed here do not necessarily represent the views of Maritime Voice Indonesia.
ADVERTISE WITH US ! REACH OUT TO MORE THAN 10,000 SUBSCRIBERS IN MARITIME, SHIPBUILDING, OFFSHORE & NAVAL INDUSTRIES ! CONTACT US : FIREWORKS BUSINESS INFORMATION PHILIPPINES c/o Fireworks Trade Exhibitions & Conferences Philippines, Inc. 12th Flr., The Trade & Financial Tower U1206 32nd Street & 7th Avenue, Bonifacio Global City Taguig City, Metro Manila 1634 Philippines : phil@asiafireworks.com Email : (+632) 7902 0900 ext 226 Phone Whatsapp : (+63) 9277 040 888 Website : www.philmarinenews.com
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SINGAPORE’S FIRST FLOATING ENERGY STORAGE SYSTEM The Energy Market Authority (EMA) and Keppel Offshore & Marine (Keppel O&M) have jointly awarded a research grant to pilot Singapore’s first floating Energy Storage System (ESS). This project was awarded to a consortium led by Envision Digital International Pte Ltd (Envision Digital). This is part of the $10 million partnership between EMA and Keppel O&M to develop innovative energy solutions in the marine sector announced earlier in April this year. Keppel O&M will be working with the consortium to deploy a 7.5 MW/7.5MWh lithium-ion battery ESS on Keppel O&M’s Floating Living Lab (FLL). This will be Singapore’s largest ESS deployment to date, with sufficient capacity to power more than 600 4-room HDB flats a day. As Singapore’s hot and humid environment can affect the performance of the ESS, the testbed will use an innovative liquid-cooling solution that utilises seawater to cool the battery cells and enhance the lifecycle of the ESS. The ESS will also explore the first-of-its-kind battery stacking solution in Singapore. This could potentially reduce the footprint required for deployment by up to 40%. Findings from the project are expected to be applied to ESS on mainland Singapore. This would help support power grid stability and resilience, and facilitate the adoption of more renewable energy such as solar. 32
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EMA’s Chief Executive, Mr Ngiam Shih Chun, said: “Energy storage and smart energy management systems support the deployment of more renewable energy in Singapore. This project will pave the way to overcome our land constraints, and set the blueprint for similar deployments in the future. We hope to continue co-creating more of such energy solutions with the industry as we work towards a more sustainable energy future for Singapore.” The ESS will also be integrated with a Smart Energy Management System (SEMS) on the FLL to enhance its operational efficiency. Supported by artificial intelligence and machine learning algorithms, the SEMS will optimise the efficiency of operations and reduce overall energy usage. The project is expected to be completed in 2023. More details of the project can be found in the Annex. Mr Chris Ong, Chief Executive Officer of Keppel O&M, said: “We are proud to work with the consortium led by Envision Digital to pilot the first floating ESS on our FLL. Besides supporting Singapore’s energy needs, the developed solution will have multiple applications such as supporting areas with intermittent power supply, and rapid deployment to provide emergency power for places or remote islands affected by power disruptions. It can also be deployed on hybrid or fully electric vessels to significantly reduce carbon emissions. In line with Keppel’s Vision 2030, we are committed to the development of clean, efficient and costeffective solutions that contributes to sustainable urbanisation.” With the aim of encouraging greater adoption of cleaner energy, the $10 million partnership forged between EMA and Keppel O&M highlights the cocreation efforts from the government and industry to spur innovative energy solutions and build capabilities in the wider industry ecosystem. January - March 2021 | Maritime Voice
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Offshore
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TURKEY’S FLOATING POWER PLANT COMPANY KARPOWER INTERNATIONAL (KARPOWERSHIP) HAS BEGUN OPERATION ON ITS FIRST LNG-TOPOWER PROJECT OFFSHORE INDONESIA.
Karpowership said that the powership Zeynep Sultan began power generation using LNG on 20 September after the successful conversion of its first two dual-fuel engines. The LNG is converted from liquid to gas via a floating storage regasification unit (FSRU). According to the company, Indonesia is fast becoming one of the world’s most important LNG hubs with this innovative project, bringing the firstever floating LNG-to-Power project to the country, requiring no on-land construction. The LNG-to-Power project is part of a gas supply agreement signed with government-owned electricity company Perusahaan Listrik Negara Gas and Geothermal (PLN), who provide the LNG via PT Pertamina, the Indonesian state-owned oil and natural gas corporation. 34
The eight-metre Hua Xiang FSRU is operated by PT Sulawesi Regas Satu, a joint venture of PLN GG and PT Humpuss. Karpowership’s chief commercial officer Zeynep Harezi said: “Through our powership’s dual-fuel engine capability, combined with the innovation of FSRU technology, we are able to offer a seamless transition to LNG-to-Power for our partners in Amurang. “Our investments in the upstream value chain will help us realize our goal of having 80 per cent of our powership fleet LNG powered by 2025”.
January - March 2021 | Maritime Voice
Offshore
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HERALDING DEAL WITH CHINA, PHILIPPINES RESTARTS OFFSHORE OIL-GAS EXPLORATION IN DISPUTED SEA TAIPEI, TAIWAN - The Philippine government’s lifting of a ban on offshore oil and gas exploration reopens the door to joint energy development with China, the erstwhile biggest player in a regional maritime sovereignty dispute, analysts believe. Philippine President Rodrigo Duterte has approved a Department of Energy proposal to resume exploration in the South China Sea, the department said October 15 in a statement online. Exploration was called off six years ago as a Sino-Philippine maritime dispute peaked. Resumption of oil and gas exploration will “infuse the economy with fresh foreign direct investments,” Energy Secretary Alfonso Cusi said in the statement. China stands to become the key foreign investor despite irritating the Philippines and five other governments with its maritime expansion since 2010, analysts say. They chafed particularly after officials in Beijing authorized the landfilling of tiny islets, in some cases for military use. China claims about 90% of the sea, including tracts that the Philippines say come under its exclusive economic zone. “Early on, the [Duterte] administration entered into memoranda of understanding with China, and that included joint development, or at least the promise of joint development, as far as the West Philippine Sea is actually concerned. So this might simply be moving forward on those MOUs, especially since the Duterte administration is winding down,” said Herman Kraft, political science professor at University of the Philippines Diliman. The West Philippine Sea is Manila’s term for the South China Sea. Manila lifted the moratorium “in good faith and with full regard of the ongoing negotiations between the Philippines and China,” Energy Secretary Cusi added in the statement. 36
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Offshore
From the start at least, Philippine officials will let China jointly develop just in undisputed waters under their control and subject to domestic laws on foreign investors, said Aaron Rabena, research fellow at the Asia-Pacific Pathways to Progress Foundation in Metro Manila. The 2018 memorandum does not specify where the two sides would explore or who would take how much of any gas and oil discovered. “I think what the government plans to do is they want to start joint ventures within Philippine territorial waters,” Rabena said. “I think they’re going to set the momentum first so that everything is legal, because it’s much easier to start with that.” The energy secretary issued return-to-work notices for three specific projects. The Philippine National Oil Company-Exploration Corp. and PXP Energy Corp. of the Philippines operates one apiece. The third, run by Forum Energy of the United Kingdom, lies in a zone claimed by China. Brunei, Malaysia, Taiwan and Vietnam also claim all or parts of the South China Sea. Claimants prize the sea for its fisheries and marine shipping lanes as well as energy reserves. Malaysia gets nervous when Chinese ships pass through waters it claims, and Vietnamese boats rammed Chinese vessels in 2014 when China allowed an oil rig to be parked in a contested tract. The resumption of exploration will give the Philippine government more money to “prime the pump” during an economic downturn caused by COVID-19, said Song Seng Wun, an economist in the private banking unit of Malaysian bank CIMB. Traditional sources of income such as tourism and remittances from overseas workers have slowed this year, Song said. The economy is forecast to contract in 2020. Exploration will help “boost economic recovery following the outbreak of the COVID-19 pandemic,” Secretary Cusi said in the statement, citing job creation as one way. Between 0.8 and 5.4 billion barrels of oil and from 7.6 trillion to 55.1 trillion cubic feet of natural gas are yet to be tapped around the Spratly Islands, which includes the Sino-Philippine dispute zone, the U.S. Energy Information Administration estimates. A new start to exploration will boost “energy security” too, the secretary said. He cited “impending depletion” of an existing natural gas reserve. January - March 2021 | Maritime Voice
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Innovation & Technology
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3 START-UPS
TO LOOK OUT FOR IN THE MARITIME INDUSTRY!
#1 MAINDECK Ship repair and maintenance is a very costly and complex business for ship owners. The outdated solutions that have been available to help with this process make an already complex process even more complex for the user. Because of bad specifications and difficulties in following up the shipyard, additional costs of 20% is very common (on projects averaging around 1.2 million USD). Maindeck is a modern SaaS for the ship maintenance and repair industry, with a specific focus on dry-docking projects. They increase team efficiency with a tool designed to minimise friction between tasks, heavily reducing unforeseen costs and time spent at the yard. More impressively, they also scan project specifications and apply data science to generate content suggestions before its sent off to the shipyard or service providers.
Sasan Mameghani
They also offer a mobile inspection app for which you can assign access to selected parts of a project. This means you can give access to both internal and external people, allowing you to streamline all type of information through Maindeck, including that from service providers and others. The app of course functions offline, and automatically uploads when it detects an internet connection. Maindeck is a very technology-savvy company. They take pride in being product and tech nerds, a stark contrast to the common sales cultures found elsewhere. Although being a young company, they have already secured both Wilhelmsen and SeaDream to their client list. CEO & Co-Founder of Maindeck, Sasan Mameghani said: â&#x20AC;&#x153;I started the company because as a former industrial mechanic I have seen and experienced the issues around dry-docking projects first hand. I realised that all the solutions available were outdated and knew that our team could create something way better for the industry. The secret says in creating a superior product lays in the intersection between an understanding of the industry and technology. We have always focused on building a strong team with experience from both worlds, and our modern approach has already put us ahead of competitors. With a strongly technology-focused team, we have the foundation to continue rapidly developing our great product. We are only at the starting line, there is a lot of great products in the pipeline. So the future will be even more exciting.â&#x20AC;? 38
January - March 2021 | Maritime Voice
Innovation & Technology
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#2 NAUTIX At Nautix, we work single-mindedly on our mission: make the shipping industry safer and more efficient.
Tarang Valecha
Seafarers plan and perform complex operations every day on ships. The workforce of the 21st century relies on their training, experience, and management tools, which have not kept up with the changing times. These tools are inefficient in minimizing human error. As a consequence – people are injured, equipment damaged, the environment suffers, and our industry bleeds billions of dollars year on year.
Our application makes planning and execution of operations easy and simplifies complex safety processes for the 21st-century workforce. When at home, they can predict when to start driving with google predictions – why not provide the same level of sophistication to their often risky tasks? AI-powered prediction offers an unprecedented level of input in planning and risk mitigation, thereby improving operational performance. This approach influences user behavior toward proactive safety, human error reduction, and increasing compliance. CEO & Co-Founder of Nautix Technologies, Tarang Valecha said: “Nautix challenges the status quo and wants to digitally transform the maritime workspace for over 2 million seafarers globally. Today, millennials have taken over the majority representation of the workforce, and the U.S. Bureau of Labor Statistics predicts that by 2030 this hyper-connected, tech-savvy generation will make up 75% of the workforce. This modern workforce needs modern tools, especially the Maritime industry, where a shortage of labor, as well as skills, have been predicted. With increasing automation and advancement in the application of AI, it is our ambition to play a central role through innovation in supporting the current and future workforce, and the industry’s transition to autonomous shipping.”
#3 FUELSAVE
Marc Sima
FUELSAVE GmbH is an innovative energy efficiency enhancement and clean-tech company from Germany with a strong R&D background and IP portfolio and patents in various fields. FUELSAVE tries to combine own innovations with market leading suppliers and components to create turnkey solutions for combustion efficiency enhancement, energy storage, energy recuperation and waste heat recovery that help customers to save money while reducing the impact on the environment, to drive sustainable green technology that is economically viable.
With FS MARINE+ we developed an easy to retrofit HW solution ( 3-5 days including class approval and fine tuning) that is helping ship operators to reduce OPEX (10% NET OPX savings contractually guaranteed) and become more profitable, while reducing the impact on environment (30-80% NOX reduction / 40% PM reduction / 15% Co2 reduction, etc) with a unique and patented solution that is a potential game changer for shipping / power generation. The solution pays itself through the achieved NET savings. CEO & Co-Founder of FuelSave, Marc Sima said: “We founded FUELSAVE to drive sustainable change that creates an impact and helps to serve the society and our environment by making various applications more energy efficient and combat climate change and global warming as well as to mitigate air pollution to reduce the health impact in support of a clean energy transition. The next decades in shipping will be focus on energy efficiency enhancement and driving a clean fuel transition to support the decarbonisation of shipping towards net zero while operators need to stay competitive.” January - March 2021 | Maritime Voice
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Naval Deffence & Maritime Security
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NAVAL GROUP OPENS OFFICE IN PHILIPPINES WITH SUBMARINE DEAL IN SIGHT Naval Group announced the upcoming opening of an office in Manila in the Philippines. The opening which is set for early 2021 will help the French shipbuilder be closer to its potential customer, the Philippine Navy, as the country is looking to acquire not just submarines, but a true submarine force.
PHILIPPINE’S SUBMARINE AMBITIONS There have been rumors of a Philippine interest for the French Scorpène submarine for about a year, following the visit of the Philippine Secretary of National Defense Delfin F. Lorenzana to Paris during which the Philippines and France signed a Letter of Intent on maritime cooperation. It is true that the submarine game in East Asia is heating up, with multiple new submarines being constructed. Japan recently launched the first of the new Taigei-class. South Korea launched the second KSSIII class boat, there is evidence that China is building new nuclear submarines. This week, Taiwan officially started construction on its own IDS submarine. While Singapore, Indonesia and more recently Malaysia have been deploying submarines for years, Thailand is about to join them, leaving the Philippines as one of the few nations in the region lacking a submarine force. The creation of the submarine force is part of the Armed Forces of the Philippine modernization program aiming to protect the nation maritime sovereignty and interests. A source familiar with the matter explained that the political will to acquire such a capability is there, and budget would not be a major issue. The Philippines is one of the emerging markets and the 3rd highest in Southeast Asia by GDP nominal after Thailand and Indonesia.
DELIVERING A “SUBMARINE FORCE”
The submarine site of Itaguai in Brazil was set up from scratch with assistance from Naval Group for Brazil’s PROSUB program. It consists in both a Scorpene submarine production facility and a submarine base. Brazilian Navy picture.
And this is exactly what Naval Group is proposing: Not just the procurement of submarines but the set up from scratch of a true submarine force. As demonstrated with the successful Malaysian Scorpene program, the French Shipbuilder is able to: • deliver submarines; • design the infrastructures (naval base and/or maintenance facility); • train the submarine force personnel from scratch (crews and maintenance personnel); 40
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Naval Deffence & Maritime Security
set up a submarine force HQ, train the newly created submarine command on how to use a submarine force (via French Navy know how) and make the most of it.
According to our sources, while South Korea’s DSME is also eyeing a submarine deal with the Philippines, only Naval Group has the capability to deliver this comprehensive “submarine force” offer. “We are the only provider with previous experience in helping a country develop a submarine force from scratch and we stand ready to assist the Philippines Navy by providing the submarines but also setting up the training, facilities and supply chain required to operate a fully operational submarine fleet,” - Alain Guillou, Naval Group Senior Executive Vice President Development. “The creation of the submarine force is a fantastic opportunity for us to develop long term partnerships with the local industry where there will be transferring of knowledge and technology that will also create hundreds of jobs for the program and beyond,” - Anne Clausard, Country Head of Naval Group.
THE INDO-PACIFIC REGION: A PRIORITY FOR FRANCE
Naval Group is backed by French authorities in this potential market. The move is actually in line with France’ strategy in the Indo-Pacific region, as outlined last year in an official French MoD document, France’s strategic priorities in the Indo-Pacific are : • Defend and ensure the integrity of its sovereignty, the protection of its nationals, territories and EEZ. • Contribute to the security of regional environments through military and security cooperation. • Maintain a free and open access to the commons, in cooperation with France’s partners, in a context of global strategic competition and challenging military environments. • Assist in maintaining strategic stability and balances through a comprehensive and multilateral action. France is present in the region via its overseas territories (Mayotte and La Réunion islands, Scattered Islands and French Southern and Antarctic Territories, New Caledonia, Wallis and Futuna, French Polynesia and Clipperton) and 93% of its exclusive economic zone (EEZ) is located in the Indian and Pacific Oceans. The region is home to 1.5 million French people, as well as 8,000 armed forces personnel stationed in the region. In addition to the French Navy vessels based in the region, assets from mainland France do deploy to the region, including submarines. January - March 2021 | Maritime Voice
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Naval Deffence & Maritime Security
www.philmarinenews.com
SCORPENE SUBMARINE
The Philippines’ maritime environment ranges from challenging littoral confines, to the great depths of the Western Pacific. Between the islands the water is often quite shallow. At the same time the Philippine Trench, which reaches depths of over 10,000 meters, is right on their doorstep. The South China Sea and Celebes Sea are also quite deep in places. Therefore the Philippines needs a versatile submarine which is suited to both scenarios. Map by Roel Balingit
The Philippines’ maritime environment ranges from challenging littoral confines, to the great depths of the Western Pacific. Naval Group believes its sea-proven Scorpene-class diesel-electric submarine (SSK) is the perfect match. Today 14 Scorpène submarines are in operational service or being built, for the Chilean Navy (2 units), the Malaysian Navy (2 units), the Indian Navy (6 units) and the Brazilian Navy (4 units). The Scorpène design is adapted to fit each navy’s specific requirements. The Brazilian Scorpène for example is slightly longer to carry a larger crew, almost double the patrol range, and be able to cover greater distances.
Scorpène is ideally suited for action and operational effectiveness. Robust and enduring, it’s an oceangoing submarine also designed for shallow waters operations. Multipurpose, it fulfils the entire scope of missions such as anti-surface and anti-submarine warfare, special operations, offensive minelaying and intelligence gathering. Integrating improvements from French Barracuda-Class fast-attack submarine, Scorpène has cutting-edge capabilities, according to Naval Group. 42
January - March 2021 | Maritime Voice
Naval Deffence & Maritime Security
www.philmarinenews.com
SCORPENE SUBMARINE CHARACTERISTICS
Surfaced displacement: 1,600 â&#x20AC;&#x201C; 2,000 t
Autonomy: >45 days
Length, overall: 66-82 m
Crew: 31
Submerged speed: >20 kts
Weapons total payload: 18
Submerged endurance: >3 weeks
Weapon tubes: 6
Diving depth: >350 m
Operational availability at sea: >240 days per year
January - March 2021 | Maritime Voice
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Naval Deffence & Maritime Security
www.philmarinenews.com
PHILIPPINE NAVY RECEIVED THE (UAS) SCANEAGLE According to a press release published by the U.S. Embassy in the Philippines on November 25, 2020, the Philippine Navy receives its first-ever, advanced fixed-wing unmanned aerial system (UAS) ScanEagle. It was acquired through the Maritime Security Initiative Program of the United States. Acting Deputy Chief of Mission Kelly from the U.S. Embassy in the Philippines and JUSMAG (Joint U.S. Military Assistance Group) officials delivered this Php710-million ($14.79 million) system to the Philippine Navy to increase the Armed Forces of the Philippines (AFP)’s maritime domain awareness and border security capabilities. The ScanEagle UAS will provide intelligence, surveillance, and reconnaissance (ISR) capabilities to the AFP (Armed Forces of the Philippines) 71st Maritime Unmanned Aerial Reconnaissance Squadron (71 MUARS) of the Philippine Fleet’s Naval Air Wing, which will operate the aircraft out of Naval Station Leovigildo Gantioqui, San Antonio, Zambales. 71 MUARS is the AFP’s leading unit for unmanned maritime ISR operations. The United States provides the AFP with grant assistance and expedited sales of arms and munitions to support its modernization goals and urgent maritime security, counterterrorism and humanitarian assistance and disaster relief requirements. The Philippines is by far the largest recipient of U.S. military assistance in the Indo-Pacific region. Since 2015, the United States has delivered more than Php33 billion ($650 million) worth of planes, ships, armored vehicles, small arms, and other military equipment to the Philippines, while training side-by-side with our Filipino allies. The ScanEagle is a long-endurance unmanned aerial system (UAS) designed and manufactured by Insitu Inc., a wholly-owned subsidiary of The Boeing Company. Citing the Naval-Technology website, the ScanEagle air vehicle is composed of five field-replaceable major modules: nose, fuselage, avionics, wings and the propulsion system. It has a cylindrical fuselage of 200cm diameter with mid-mounted swept-back wings with winglets (wingspan – 3.1m), tail endplate fins and steering rudders. The ScanEagle carries a stabilized electro-optical and/or infrared camera on a lightweight inertial stabilized turret system, and an integrated communications system having a range of over 100 km. It has a flight endurance of over 20 hours. The ScanEagle has a 3.1 m wingspan, a length of 1.4 m, a weight of 20 kg and can fly at a speed up to 150 km/h, with an average cruising speed of 89 km/h. Block D aircraft featured a higher-resolution camera, a custom-designed Mode C transponder and a new video system. A Block D aircraft, flying at Boeing’s test range in Boardman, Oregon, set a type endurance record of 22 hours, 8 minutes. 44
January - March 2021 | Maritime Voice
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Port News
Department of Transportation (DOTr) through The Philippine Ports Authority is going to waive collection of some port fees for shipping companies / operators, and will provide returning seafarers with free coronavirus (COVID-19) testing starting 1 December following the provisions of Republic Act No. 11494, or the “Bayanihan to Recover as One Act” (Bayanihan 2). According to Philippine Ports Authority (PPA) total of P250 million will be utilized as financial assistance to subsidize the fees to be collected from domestic shipping owners, specifically, dockage (domestic) and lay-up fee (domestic). Shipping companies/operators availing of the financial aid should be a holder of a valid Certificate of Public Convenience, Provisional Authority, or Special Permit (SP) issued by the Maritime Industry Authority (MARINA). Those with pending applications for accreditation are also eligible, unless application has been denied by PPA. The financial assistance would be on a ‘first come, first served’, per vessel and per transaction bases. Another P270 million will be used to fund free COVID-19 testing of returning Filipino seafarers ,only inbound or returning Filipino seafarers who have disembarked through Philippine ports and airports are entitled to avail of the free COVID-19 testing, as covered by the Bayanihan 2 fund. This will be conducted by a service provider to be sourced by the PPA. 46
www.philmarinenews.com
PHILIPPINES PORTS AUTHORITY (PPA) TO WAIVE SOME PORT FEES FOR SHIPPING COMPANIES AND PROVIDE RETURNING SEAFARERS WITH FREE COVID-19 TESTING Department of Transportation Secretary Arthur P. Tugade said the financial assistance, in the form of the waived fees and free COVID-19 testing, will be of great help to maritime workers who were greatly affected by the economic downturn. Philippine Ports Authority General Manager Jay Daniel Santiago said “We are grateful for the support coming from our beloved President Rodrigo Duterte for the allocation of funds to the critically-impacted maritime sector. Ever since the COVID-19 broke out, our maritime workers have been vital to keep the economy thriving. They are also considered as frontline workers during these challenging times and so we will implement this as soon as possible,” January - March 2021 | Maritime Voice
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