JUNE 2011
INTERNATIONAL SALVAGE UNION
Response to Japanese disaster
A number of casualties were driven far inland - some were several kilometres up river and the quantity of rubble precluded using land transportation. It was uneconomical and left owners no choice but to cut up these casualties in-situ. Aside from those unsalvageable casualties, mostly because it was not economical to do so, Nippon Salvage salvaged many vessels that were within the reach and capabilities of sheerlegs and crane barges. Some were a total loss but others were able to go back into service. Nippon also used 300 tonne pullers to pull a bulker which had been under construction from the land to the sea. Operations to remove oil from casualties were also extensive (see left). The Fukushima Daiichi nuclear disaster added to salvors’ burdens. Foreign ship operators and crews were not convinced by the Government’s exclusion zones and demanded stricter standards. Nippon Salvage struggled to find tonnage in the market as owners and operators wanted to impose a ‘radioactive-contamination exclusion clause’ even if the location was far from Fukushima.
Special report by Kenichi Morita, Nippon Salvage, Tokyo The world was moved by the devastation caused by the earthquake and Tsunami in northeast Japan. Substantial media coverage meant that the impact of the ‘quake was visible to all within hours. The earthquake, tsunami and their aftermath posed great challenges to Japanese salvors and other contractors as they got to grips with the clear-up. Amid the havoc, Nippon Salvage salvaged a number of casualties ranging from a nine tonne fishing vessel to a Cape-size bulker which was stranded in the port of Kashima – which involved discharging its 31,500 tonnes cargo of iron ore. Initial responses were hindered by the huge quantity of debris that had been washed into the sea, fouling the
propulsion systems and steering gear of salvage vessels. And the impact of the 'quake meant that chart datums were no longer reliable for navigation - Nippon therefore had to carry out bathymetric surveys and extensive dredging prior to salvage work. A significant issue was the question of liability to pay the costs of clearing debris and flotsam. Who was responsible: the Government, P and I Clubs or property underwriters? At the same time, shortterm, short-supply of tugs and sheerlegs caused “panic buying” and it became difficult to source the right equipment at the right time. Salvors found the numerous after-shocks an impediment to their work. There was concern that they could trigger a further tsumami. All personnel and craft made it a rule to run away or head toward the sea if they experienced an unusual tremor. Even the bravest salvage man cannot beat the power of the nature. 1
Nippon Salvage worked closely with the Japanese Coast Guard, even by salvaging one of its own coast guard ships. ISU executive committee member, Mr Yoshiaki Nishibe, braved the Fukushima exclusion zone to take part in a Coast Guard-led inspection tour to give them advice on the casualties within that area. Mr Nishibe is convinced that the salvage industry can play a crucial role when society faces a crisis. He, and his colleagues, have been dedicated to working to help the country recover from the disaster.
ISU NEWS Comité Maritime InternationaI (CMI) ISU’s former legal adviser, Archie Bishop, attended the international marine law body CMI’s working group on the Salvage Convention. In future it is hoped that Mr Bishop's successor, Rob Wallis, will join the working group as the ISU’s representative. The working group discussed, among other points, national responses to the two questionnaires issued on the Salvage Convention and the matter of environmental salvage awards. It agreed to hold full discussion on the Salvage Convention at the next major CMI Conference in Beijing in October 2012.
book the ISU and The Nautical Institute are jointly producing, is well under way. In addition to ISU and salvage companies, contributions will come from a wide range of other bodies that are directly involved in the immediate aftermath of a major casualty. The aim of the publication is to offer to a wide readership practical guidelines about what to expect and how to react when involved in a major casualty. Currently no such publication exists and the joint ISU/NI publication will fill a major gap.
New environmental salvage awards webpages
Fixed Cost Arbitration Procedure (FCAP)
ISU is to enhance its refreshed website further. New material on the issue of environmental salvage awards is being prepared for web-publication in the coming period. ISU legal adviser, Rob Wallis is leading on the issue of environmental salvage and commented: “We believe that we have strong arguments for the introduction of awards to salvors that recognise the benefit to the environment of their investment and operations. We hope that publishing our case and other relevant information will give wider understanding of the issue.”
New figures have been agreed for the FCAP system. Originally this procedure applied to LOF cases where the total salvage guarantees were US$1 million or less. That has been increased to US$1.5 million. In addition, the cap on solicitors’ fees will rise to £15,000; Arbitrators’ fees will be capped at £4,500 and the cap on Lloyd’s fees will be £1000. For Fixed costs on Appeal, the Appeal Arbitrator’s costs are capped at £3000; Lloyd’s costs capped at £500 and solicitors’ costs capped at £1500.
AGM reminder
ACI Conference
Full members are reminded that the 2011 General Meeting will take place at the Santa Clara Hotel, Cartegena, Colombia 26-29 September. Members wishing to attend must urgently contact Secretary General, Mike Lacey, at isu@marinesalvage.com if they have not already done so.
ACI’s 2nd Maritime Salvage and Casualty Response conference, chaired by ISU General Manager, John Noble, will offer an in-depth look into salvage, towage and casualty response. The conference is set for 7-8 September in London. ISU members who have not yet registered can still receive a 10% discount. To register, contact:
Casualty Management Guidelines Preparation of the Casualty Management Guidelines, the
dpavlyk@acieu.co.uk +44 (0) 207 981 2503
SMIT Salvage responds to grounding in Greek waters. In April 2011 the general cargo vessel EEMS TRANSPORTER grounded at high speed on the Greek island of Karpathos. The vessel, laden with 2,000 tons of steel coils, sustained damage to her forepeak and double bottom tanks. It was immediately evident that assistance was required safely to refloat the Dutch-flagged vessel. SMIT Salvage, in cooperation with Megatugs, responded by mobilizing salvage experts from the Netherlands and Greece and dispatched the salvage tug AEGEAN PELAGOS under a LOF contract. The salvors, as a precautionary measure, brought in antipollution equipment and experts to prevent potential damage to the environment. A crane barge was mobilized to the site to offload the cargo. After lightering approximately 600 tons the EEMS TRANSPORTER was safely refloated. The salvors backloaded the lightered cargo, made some temporary repairs and the vessel continued her voyage to France.
The EEMS TRANSPORTER aground off Karpathos.
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New edition of Lloyd's Open Form published The ISU has welcomed the new edition of Lloyd’s Open Form - LOF 2011 - which has been published by Lloyd’s Salvage Arbitration Branch. It follows amendments to Lloyd’s Open Form 2000 and to the Lloyd’s Standard Salvage and Arbitration (LSSA) clauses. LOF 2011 maintains the key feature of “no cure, no pay” but there have been a number of changes which aim to improve the contract in the light of developments in shipping. Two new clauses have been added to LOF 2011. The first enables publication of LOF Awards on the Lloyd’s Agency website. It is intended to make the process more transparent and inclusive. The second requires the salvage contractor to notify Lloyd’s within 14 days of their engagement to render services under LOF 2011. Changes to the LSSA clauses include new provisions with regard to guarantees for the Arbitrator and Appeal Arbitrator’s fees and, again, publication of awards.
The final changes are most significant for salvors and relate to unrepresented cargo in container vessel cases. These changes should speed the process of conducting and settling laden containership cases: Firstly, communication with unrepresented cargo interests shall be deemed proper if it is sent to the party providing the salvage guarantee in respect of that property. Secondly, subject to the express approval of the Arbitrator, where a settlement agreement is reached between the contractor and the owners of salved cargo comprising at least 75% of the value of the salved cargo that agreement shall be binding on unrepresented cargo interests. Thirdly, again subject to the express approval of the Arbitrator, any salved cargo with a value below a figure (to be agreed on a case by case basis) may be omitted from the salved fund and excused from liability for salvage where the cost of including such cargo in the process is likely to be disproportionate to
ARAS Salvage Black Sea operation The Turkish flagged DP vessel ARMARIN 3 (2191 grt) laden with a Gottwald HMK 170 container crane and a Fantuzzi container forklift with various spares and apparatus, grounded at Sinop on the southern Black Sea coast. Gale force winds had caused the vessel to drag her anchor and ground on a rocky shore. ARAS Salvage immediately deployed a salvage team to the casualty for assessment of the situation and to start the salvage operation. The vessel was refloated with the assistance of the salvage tug PEHLIVAN-2 (BP 55 tonnes) and towed to the nearest port at Sinop to shelter from the storm for 6 more days. Subsequently she was towed to the Turkish port of Giresun to deliver her cargo. The casualty was then towed to Tuzla Shipyard at Istanbul and delivered to her owners.
PEHLIVAN-2 tows the ARMARIN 3 (above) after refloating the grounded casualty (right).
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its liability for salvage. The Lloyd’s Salvage Group – which includes representatives from the salvage industry, shipowners and the insurance community (property and P&I) - has worked for the past 18 months to develop the new contract. President of the ISU, Todd Busch, said: “The ISU welcomes the publication of LOF 2011 it is a contract fit for use in the modern shipping environment. Its essential features remain unchanged reflecting the fact that the underlying concept of the Lloyd’s Open Form has served the maritime and shipping industry well for over a century. "We believe that increasing openness and transparency is vital in all business and support publication of the awards. ISU will promote widely the use of LOF 2011.” To read the new contract: www.lloyds.com/The-Market/Tools-andResources/Lloyds-Agency-Department/ Salvage-Arbitration-Branch/Lloyds-OpenForm-LOF
MEMBERS’ NEWS TSAVLIRIS
MAMMOET’s new cranes
TSAVLIRIS SALVAGE was proud to be awarded the first LOF 2011 contract with MAGNUM POWER, (see story page 3) as well as having been awarded the first LOF in 2011with MOONDANCE II. TSAVLIRIS is a frequent user of LOF, having handled over 2000 casualties. In the second quarter of 2011, TSAVLIRIS handled two cases in the Magdalena River, Barranquilla, Columbia, MAGNUM POWER and CHIOS WIND, where ISU Member T&T Bisso’s team on location was sub-contracted by TSAVLIRIS. See also Tristan de Cuhna story, page 5.
Mammoet has demonstrated its new Platform, Twin-Ring, Containerised (PTC) super heavy-lift cranes. The cranes were designed in-house by the company and will be used for large construction projects such as oil refineries and power stations worldwide. The new cranes have capacities of 140 and 200 thousand tonne meters. The new cranes' winches (left) can lift loads up to 3,200 tons to a height of 120 meters in just 12 minutes.
TITAN senior management TITAN Salvage has appointed Mark Hoddinott to global director, marketing and strategy, responsible for developing, delivering and managing the company's strategic marketing and business development plans. He will operate out of TITAN's UK facility at Newhaven, East Sussex and will report to Rich Habib, TITAN's vice president. Mark Hoddinot has 40 years’ experience including that of master aboard a variety of ships including passenger, container, oil tanker, bulk carrier, reefer, short-sea ferry and deep sea tugs as well as extensive and experience as a salvage master.
The containerized design means that the cranes can be mobilized and erected anywhere in the world within three to six weeks.
Jason Bennet has joined TITAN as Commercial Director working from its UK base and also reporting to Rich Habib. Bennett will help shape strategic, operational and commercial business initiatives particularly as they relate to securing salvage, wreck removal and emergency response work for TITAN around the world. Bennet spent 14 years at sea with the Royal Fleet Auxiliary and P&O Cruise Line before moving ashore to work as a surveyor. He then joined SMIT where he was UK representative and commercial manager.
The new PTCs have a small footprint (45 or 55 meters, depending on the capacity) and can turn a full circle in only 15 minutes. On site the cranes can be moved, if required, by having their bogies placed on tracks or the whole crane can be picked up and relocated on site by SPMTs (Self-Propelled Modular Transporters). ITC
Neil Ives has been appointed TITAN’s operations manager, Europe. Ives' responsibilities include managing the sales and marketing efforts for the region, pursuing new business, drafting proposals and contracts, supporting the salvage warehouse and operations and overseeing the administrative requirements in the UK office.
ITC’s AHTSs ITC CYCLONE and ITC CHINOOK - both 10,880 bhp - have started their commitment to support the semi-submersible drilling rig TRANSOCEAN DRILLER in the Campos Basis offshore Brazil. The vessels are under contract to Wilson Sons Ultragas for pre-mooring, towage, anchor handling, supply and pollution control duties. The end client is ONGC which has hired the rig to drill one well. The operation is expected to be completed by mid-August.
RESOLVE RESOLVE has announced a joint venture with Shanghai Shengmin Shipping Service Co., Ltd called the Shanghai Resolve-Shengmin OSRO Company (SRSOC).
Special equipment for pollution control and cleaning activities has been installed on board both vessels.
It will provide Class 1 oil spill response organization services, enabling tank vessels and other ships calling at Chinese ports to comply with the new Regulations of the People’s Republic of China on the Prevention and Control of Marine Pollution from Ships, which became effective this month.
Left, the crews of both ITC vessels have trained extensively for pollution control work.
Both companies have assembled significant marine pollution response resources in Shanghai and plan to expand and distribute resources and equipment in other Chinese ports. The joint venture’s assets include ocean-going spill response vessels, boom boats, skimmers, boom, pumps and other resources necessary for efficient oil spill response and recovery in China ports and coastal waters. 4
TSAVLIRIS responds to Tristan de Cunha casualty On the 16 March, while on passage from Brazil to China, the bulker OLIVA - 75,208 tonnes dwt - and loaded with about 65,000 tonnes of bulk soya beans, ran aground on Nightingale Island, Tristan da Cunha. Salvage was awarded to TSAVLIRIS SALVAGE GROUP. The fishing trawler EDINBURGH at the location was chartered in by TSAVLIRIS for stand-by services, safety purposes and for the evacuation of 12 crew members in adverse weather conditions. The next day, due to heavy swells, bad weather and the casualty’s continuing deteriorating state, the master of the OLIVA requested further evacuation and the remaining 10 crew members were taken off by the EDINBURGH. At the same time, the salvage tug
SMIT AMANDLA was sub-contracted by TSAVLIRIS and sailed from Cape Town with a ten person team of salvage and environmental experts and fully equipped with salvage, diving, antipollution and bird cleaning equipment. The adverse weather continued and the casualty began to split at cargo holds 6 and 7 and leaked bunkers. The salvage tug arrived on scene on 21 March. The salvors began a thorough review of the vessel and its tanks and devised a response plan to the environmental issues that were emerging. Subsequently, the aft section of the OLIVA (including the bridge, engine room and superstructure) capsized and partially sank, while the forward section was heavily grounded and deteriorating.
With the swell increasing and in continuing adverse weather a refloating attempt was unlikely as the salvage team could not board the casualty. The casualty’s deteriorating state meant the main focus was to begin the bird cleaning following pollution of the area. Approximately 600 or more rare penguins and other birdlife required cleaning. The aft section of the casualty was completely submerged on the 27 March, while the forward section was completely open to sea and the decks were permanently awash – there were no signs of any significant oil pollution. Three days later TSAVLIRIS SALVAGE demobilised the SMIT AMANDLA and she returned to Cape Town.
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Tristan da Cunha
Inaccessible Island
Tristan da Cunha
Nightingale Island
'Value in use'
Oiled Penguins awaiting cleaning.
of its cost or realisable value. Whilst the LOF tribunal needs to consider the sound value of the vessel this approach does at least establish an independently audited “floor” - enabling lower vessel values to be excluded from the debate.
A personal view by Nick King The least contentious issue in a Lloyd’s Form salvage arbitration is usually agreeing the sound value of the vessel using brokers’ valuations. But what if no broker can be found to provide a valuation of the vessel because, owing to the vessel’s unusual configuration or size, there are no available comparable sales? Notwithstanding, the tribunal still needs a sound value and I would argue that there is an accountancybased methodology which does return a realistic figure of what the vessel is worth to its owner. That methodology is called Value In Use.
Determining the extent to which this cost-derived “floor” is different from the value of the vessel is the purpose of International Accounting Standard 36 “Impairment of Assets”. Under IAS36, if no market value can be obtained the value of the vessel is determined by calculating its “Value In Use”. Value In Use is a capitalisation of the vessel’s future earnings and expenditure over the remainder of its useful life until it is finally scrapped. This capitalisation is carried out using conventional Discounted Cash Flow (DCF) techniques. As with brokers’ valuations the vessel’s original cost is irrelevant in calculating the vessel’s Value In Use. The benefit of IAS 36 is that it prescribes, at an internationally agreed level, how this Value In Use DCF calculation should be carried out. For that reason, I would argue that a vessel’s Value In Use represents a commercially realistic figure for consideration by an arbitrator in an LOF arbitration in the absence of brokers’ sound value valuations.
Before explaining this methodology further it is worth considering depreciated historic (or original) cost which is the traditional approach for writing off the vessel over its remaining useful life. Accordingly, referring to the ship owner’s balance sheet (immediately prior to the casualty) will show what remains of the vessel’s original cost which has not yet been written off. Determining how this depreciated historic cost is calculated is set out in International Accounting Standard 16 “Property, plant & equipment” a significant requirement being that the vessel must be shown at the lower
Nick King is a consultant at ISU Associate Member, Moore Stephens
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ASSOCIATES’ NEWS ISU welcomes new associate members: Australian Maritime Safety Authority 82 Northbourne Avenue Braddon ACT 2612, Australia Tel: +61 2 6279 5627 Email: toby.stone@amsa.gov.au Web: www.amsa.gov.au Alpha Briggs Mediterranean PO Box 24 125B/6 St Geaorge's Road St Julians, ST J 1000, Malta Tel: +356 213 80941 Tel: +356 996 66000 (Emergencey 24 hours) Fax: +356 213 80384 Email: mail@alphabriggs.com Web: www.alphabriggs.com TMC (Marine Consultants) Ltd has a new postal address, other details are unchanged: 5th Floor, Standon House 21 Mansell Street London, E1 8AA ENGLAND
American Salvage Association The American Salvage Association (ASA) has established an Education Committee to promote general maritime industry interest in marine salvage and to help develop maritime industry expertise through contact with ASA salvage professionals. The Committee’s goal is to support career development in all maritime disciplines and related subjects for both seafarers and non seafarers. ASA’s Education Committee has also established a charter membership in the ASA at no charge for students under the age of 30 to allow for networking opportunities within industry, internships and attendance at industry events. The new committee has also created a foundation and scholarship fund to assist students in line with the committee’s objectives. For more information: asaeducationcommittee@ vesselalliance.com
BIMCO e-Learning BIMCO (the Baltic and International Maritime Council) has linked up with maritime multi-media training provider Videotel Marine International to produce and launch a brand new BIMCO e-Learning Diploma Programme (BeDP). BIMCO says the demand for training and education within the maritime industry has never been greater and will continue to grow. Videotel's web-based e-learning technology makes it possible to deliver this knowledge in a practical and affordable way to the employees of BIMCO members worldwide. Maritime students will be able to access training provided by online specialist experts and tutors carefully selected by BIMCO from the shipping world. The diploma course will be aimed at students and young people entering a trainee or internship programme, staff from shipping companies; agents; brokers; banks and other financial institutions; legal firms; insurance companies or government organisations wishing to learn more about the shipping industry. It will be offered at competitive prices, with discounts for employees of BIMCO member companies. Wikborg Rein International law firm Wikborg Rein has concluded an alliance with one of Brazil’s leading law firms, Vieira, Rezende, Barbosa e Guerreiro Advogados (VRBG), which it says will have significant benefits for the international clients of both firms. The “best friend” alliance agreement between the two firms will include cooperation on client referrals and joint assignments and will also involve the exchange of lawyers and competence building. From this month, Wikborg Rein will have one senior lawyer working out of the VRBG office in Rio de Janeiro, and VRBG will have one lawyer working out of the Wikborg Rein office in Shanghai. Intercargo Intercargo has reinforced the need for masters of dry bulk carriers to receive 6
clear, accurate and reliable information on the properties and characteristics of cargoes and the required conditions for their safe carriage and handling. It is a SOLAS requirement reinforced in significant detail in the International Maritime Solid Bulk Cargoes Code (IMSBC Code), mandatory since 1 January, 2011. The consequences of failing to meet these requirements were seen last year when 44 seafarers lost their lives within 39 days in three bulker casualties. Intercargo says that typical problems experienced by its members include: • Using cargo trade names and not the Bulk Cargo Shipping Name (BCSN) • Confusing cargo identification and correct identification of cargo group – whether a cargo is a Group A (prone to liquefaction), Group B (representing a chemical hazard) or Group C (not prone to liquefaction or representing a chemical hazard) – for example, declaring a cargo as a Group C cargo (not prone to liquefaction) but providing a Transportable Moisture Limit (TML) indicating that the cargo is prone to liquefaction. Ian Harrison, Intercargo technical manager said: "If we are to prevent further casualties it is essential that that all parties involved undestand and implement the IMBSC Code." Chapman Freeborn iPhone App The air charter specialist has launched an iPhone application which gives users immediate access to thousands of aircraft worldwide. It provides instant indicative quotes according to live market information. Users enter their requirements and the system identifies a selection of aircraft options including information such as flight times and fuel stops. The application, Private Jet, is available as a free download from the Apple Store. Lloyd’s Agencies Karen Bizon has resigned as Head of the Lloyd’s Agency Department and the Lloyd’s Salvage Arbitration Branch, with effect from 17 June. Her successor is Mark Patterson, recently appointed Controller of Agencies at Lloyd's.
Largest contract in SVITZER’s salvage history
An oil and gas leak from a well being drilled by the jack-up rig WEST ATLAS in the Timor Sea offshore Australia led to the evacuation of the 69 people aboard. The oil and gas subsequently caught fire and flames engulfed the rig. After the fire was put out, removal of the damaged rig presented a major challenge for the SVITZER salvage team which was hired to run the salvage operation in cooperation with joint venture partner Sea Trucks Group. The Australian authorities required 90% of the operation to be documented in detail in advance. Therefore, while the salvage operation began in September 2010, towing the structure across the Indian Ocean took months of preparation, in addition to the four month salvage operation.
and lifting them off using the JACSON 25’s crane. Jacking down the rig proved even more difficult and eventually the rig had to be towed with the three legs submerged. “More than 50 sub-contractors played a role, from cutters and scaffolding crews to vessel providers and environmental consultants. Managing the entire operation was far from easy. Still, in order to exceed customer expectation, we cut down the project into small and manageable bits and made sure that each task was handled by experts,” explains Robert-Jan van Acker, adding: “When you are 300 kilometres out in the ocean and battling both the elements and a steel monster, you really begin to understand the advantage of being part of a such a global outfit as the A.P. Moller – Maersk Group. Collaboration and sharing of experience across our different business units have been instrumental in running a successful operation, and knowing our strengths.” Eventually the operation was completed successfully without a single drop of oil falling into the ocean.
The JASCON 25 used its 800 ton crane to lift segments off the West Atlas. The 109 meter vessel was also used to house the 180 men who took part in the mission. The two biggest operational challenges were cutting 50-100 ton segments from the rig
“This particular salvage job is nothing short of a milestone for our reputation as true salvage craftsmen. We can be proud to have taken part in such a well-executed operation. The experience we’ve gained will definitely be an advantage in the future, where ageing oil production assets make us expect a global rise in demand for customized and environmentally friendly decommissioning of oil platforms,” says Robert-Jan van Acker.
Donjon lifts sunken fishing boat
efficient manner,” said John A Witte, Jr.,Executive Vice President, Donjon Marine.
“Before the 15,600 bhp MAERSK PROMOTER could set sail for Singapore with its load, it was our mission to get the West Atlas into the water. The job came down to the task of removing several elements of the rig and jack it down to a position where it would float instead of stand on its three legs. Dismantling such a giant, however, is easier said than done, and co-operating with the crew on Sea Trucks Group’s pipelay vessel, JASCON 25, played a major role in the project,” remarks Robert-Jan van Acker, CEO of SVITZER Salvage.
In May the 70 foot fishing boat ATLANTIC TRAVELER sank after hitting the South Jetty of Manasquan Inlet off Point Pleasant Beach, New Jersey. Three crewmen onboard were rescued by the U.S. Coast Guard. The vessel sank outside the south Jetty in an upside down position. After more than three weeks of bad weather, Donjon Marine was able to mobilize its 400-ton capacity derrick barge COLUMBIA NY from its home base in
Port Newark, New Jersey to perform the wreck removal of the vessel. Donjon salvage crews, working from the beach, had prepared the upside down vessel for lift by cutting holes through the hull for placement of the heavy lift slings. Once the poor weather passed, Donjon completed the salvage effort in one day. Due to the damage sustained to the vessel as a result of the sinking, the ATLANTIC TRAVELER will be cut up, and recycled. “Donjon’s effort on this project was multi-faceted and we are proud of the work that was completed in a timely and 7
Five Ocean's Morocco operation In March the MV INSPIRATION1 grounded on a rocky shore at Jorf Lasfar, Morocco. She was in ballast waiting at anchor to enter port for loading. Five OceansSalvage (FOS) was engaged on a LOF 2000 and SCOPIC was invoked immediately. The salvors mobilized the tugs AHTS RED SEA FOS and MED FOS and the salvage/antipollution barge ISAAK 1874 together with a large array of salvage and anti-
pollution equipment from their salvage station in Gibraltar. The operation was supported by a 20-strong joint FOS and STEELMAC salvage team from Greece and Gibraltar. Over several days bunkers were removed from the double bottom tanks and the casualty was successfully refloated, towed to Gibraltar and redelivered to her owners.
MV INSPIRATION1 grounded, Morocco.
INTERNATIONAL MONITOR European Union 17 June 2011 marked the date by which all EU member states were required to have in place independent safety investigative bodies to examine very serious marine casualties. They must also publish investigation reports within 12 months and notify marine casualties and incidents via the European Maritime Casualty Information Platform (EMCIP). EMCIP is a database that is used to store and analyse accident related data about marine casualties and incidents. So far, EMCIP has been run on a voluntary basis but mandatory participation began this month. UK Tonnage Tax Accountant and shipping adviser and ISU associate member, Moore Stephens, says companies operating within UK tonnage tax could consider leaving the UK, as a result of tax authority, HMRC’s, decision unilaterally to re-interpret the regime's rules. The substantial increase in the UK fleet since 2000 had been widely considered to show that UK tonnage tax has been a success. The regime offered clarity and stability, but, according to Moore Stephens, HMRC’s unilateral re-interpretation of the rules could be detrimental. It follows comments in the 2004 European Union guidelines on state aid to maritime transport. And reinterpretation by HMRC now means that some groups no longer qualify for the UK regime despite having previously received HMRC clearance.
Australia
Sue Bill, a tax partner with Moore Stephens, commented: “These fundamental changes may have a detrimental effect on UK shipping as internationally mobile shipping groups consider leaving the UK.
From 1 July 2011, important changes will be implemented to REEFVTS (Great Barrier Reef and Torres Strait Vessel Traffic Service).
"They do not appear to arise from government policy, but from changes in HMRC’s views that were finalised without consultation with the shipping industry."
REEFVTS uses information from ship reports, together with sophisticated monitoring and communication systems, to monitor a ship’s transit through the Great Barrier Reef and Torres Strait.
IMO wreck convention legislation
The mandatory ship reporting system in the Great Barrier Reef and Torres Strait is being extended to the southern boundary of the Great Barrier Reef Marine Park. This extension was adopted by the International Maritime Organization.
The UK Parliamentary Bill to ratify the Nairobi International Convention for the Removal of Wrecks (ICRW) has passed through the UK’s lower parliamentary chamber, the House of Commons, and is making its way through the upper chamber, the House of Lords. The Bill provides measures to enable the UK to ratify and implement the ICRW in its domestic law by the insertion of new sections and a Schedule into the Merchant Shipping Act 1995. The convention was adopted by the International Maritime Organisation in May 2007. Netherlands The first Liquified Natural Gas (LNG) carrier has berthed at the new Gate LNG import terminal in RotterdamEuropoort. It the Netherlands’ first LNG terminal and has an initial capacity of 12 billion cubic metres of gas per year. BP's BRITISH TRADER docked this month at the terminal which is intended to improve diversity of energy supply into the Netherlands and beyond into northwest Europe. 8
The changes are: additional ship reporting points; new and amended hydrographic charts; additional infrastructure and monitoring sensors - including AIS and VHF installations (along with extended Inmarsat Automatic Position Reporting) a revised VTS User Guide and revised VHF communications. Hong Kong The Hong Kong Marine Department has announced reductions of 24 marinerelated fees and charges for services it provides. The Shipping and Port Control (Amendment) Regulation 2011 reduces the port facilities and light dues by about 20% for ocean-going vessels. The Merchant Shipping (Seafarers) (Fees) (Amendment) regulation 2011 reduces the examination fees for Certificates of Competency of all classes of deck and marine engineer officers by about 20%.
Irish Mainport in action IRISH MAINPORT’s tug, CELTIC ISLE was called upon to refloat the Combi Carrier PANTANAL which grounded on the rocks at the entrance to Rossaveal, near Galway on Ireland’s west cost (see right). The PANTANAL had anchored off the port to load two small passenger ferries and take them to Mauritius. Mainport tasked the CELTIC ISLE - 34 meters in length, 4000 bhp with a bp of 56 tons - from its base in Foynes, further down the west coast and she arrived on
location at 0445 on 01 April 2011 with a southerly wind of force 5. Within half an hour she had a line aboard and refloated the PANTANAL which was later found to have a number of tanks breached underneath her. These were temporarily repaired before PANTANAL departed to dry dock in Bremen. The CELTIC ISLE then rejoined her two sister tugs, CELTIC REBEL and CELTIC BANNER, at their base in Foynes where they are well-placed to deal with marine casualties on the hostile west
coast of Ireland. Mainport offers a wide range of integrated marine services in addition to salvage both in Ireland and internationally.
New sheerlegs prove their worth for Multraship MULTRASHIP has benefitted from the recent upgrade to its floating sheerlegs CORMORANT. Three recent jobs utilised the 600 tonne sheerlegs and full upgraded lifting outfit. Most recently it removed the wreck of the CON ZELO, a laden Belgian cement tanker, 39 m long, which sank in Hansweert outer harbour (see right). During the lifting operation it became clear the risk of breaking the vessel’s back was too great. The vessel was lowered to the bottom again and it was decided to cut her into three pieces which were removed by CORMORANT’s wreck grab. The Z700, a small 17 m Zeebrugge
fishing vessel, sank off the Belgian Coast near Thorntonbank in May. The crew were rescued by the Belgian Navy and MULTRASHIP was awarded the salvage contract. The vessel was lifted by the CORMORANT and parbuckled, then delivered to Flushing.
in the Flushing/River Scheldt area and the recently fitted new A-frame with 600 tonne lifting capacity we see increasing demand for her services.”
These two operations followed the use of the CORMORANT to salvage the fishing trawler Nieuwpoort 28 (see Salvage World March 2011). MULTRASHIP managing director Leendert Muller said: “Having a serious lifting capacity ready to go on a seaworthy craft is a great asset for a salvor. CORMORANT is flexible in how we use her and with her handy station
Resolve refloats sunken drydock RESOLVE Marine Group has refloated the MACHINIST drydock at Guam Shipyard in Apra Harbor, Guam. The 825 ft drydock sank in January 2011 during rough weather. RESOLVE’s salvage team first conducted a comprehensive casualty assessment. A detailed engineering analysis was undertaken and a salvage plan developed. The US Coast Guard and US Navy reviewed and approved the complex salvage plan.
system was inoperable so RESOLVE mobilized 12 high-capacity electric salvage pumps. Additionally, numerous gauging systems were established to monitor tank pressures and condition throughout the refloat operation. “Large sunken drydocks are notorious for
The depth of submergence of the drydock was well beyond normal operating limits so care was taken to minimize hydrostatic pressures on tank boundaries during the refloating and to keep global hull stresses and stability within allowable limits. A large portion of the drydock’s pumping 9
testing your skill and tenacity, and this was no exception,” said RESOLVE salvage master Todd Schauer. “We were fortunate to have the support of an outstanding team including our client Guam Shipyard, as well as Heger Drydock and Mako Diving.”
ISU Member’s new tugs Donjon Donjon Marine Co., Inc., along with its partner SEACOR Holdings Inc. announced at Erie, Pennsylvania, the completion of the tugboat, KEN BOOTH, SR. The 10,700 Horsepower tug will work as an Articulated Tug/Barge (ATB) in conjunction with a 34,000 ton capacity self unloading bulk cargo barge. The tugboat - LOA 135’, beam 50’- was built at the Donjon shipbuilding and repair facility over the last 14 months. The still-to-be-named cargo barge is scheduled to be delivered in early spring of 2012. “We are very pleased to see the completion of this state-of-the-art towing vessel, and to share in the success with our partner SEACOR. This represents a new and exciting chapter in our companies' stories," said J. Arnold Witte, President and CEO, Donjon Marine Co., Inc. Ultratug Remolcadores Ultratug Ltda. has taken delivery of the new tugboat RUPANCO. The tugboat is 25 metres in length; 10.5 metres in beam and has a depth of 4.6 metres. She has azimuth stern drive, 4640 BHP and a 65 tonne BP. The vessel is the last delivery of the twin tugboats commissioned by Ultratug to be built in ASENAV shipyard. The first, christened PUYEHUE, was delivered in December 2010 and is already operating in the central zone of Chile. The christening ceremony in March at the Astilleros y Servicios Navales S.A. shipyard in the Chilean city of Valdivia was attended by dignitaries, significant customers and executives of Ultratug Holding. The names PUYEHUE and RUPANCO were chosen in honor of two beautiful lakes located in the South of Chile, which were named by the first inhabitants of Chile – the Mapuche people. Resolve RESOLVE MARINE GROUP has acquired the Tug RESOLVE SUHAILI, 102 tonne BP. Previously owned by ITC, the ocean towage and salvage tug is presently located in Freeport, Bahamas. Damian Allan, RESOLVE’s Director of Business Development announced the acquisition and said: “RESOLVE SUHAILI is a great asset for our fleet worldwide. She will complement and support our core activities in the areas of salvage, wreck removal and emergency towage.”
New edition of BIMCO’s WRECKHIRE The latest edition of the BIMCO/ISU daily hire wreck removal and marine services agreement, WRECKHIRE 2010, has been published following a year-long revision process.
Salvage World is produced by the International Salvage Union. For matters relating to the publication contact: James Herbert, ISU communications advisor. Tel: +44 1423 331 096 Email: admin@gemcomms.com For general enquiries contact: ISU, 2nd Floor St.Clare House, 30-33 Minories, London EC3N 1BP Tel: +44 20 3179 9222/3 Email: ISU@marine-salvage.com
WRECKHIRE has been published in electronic format on BIMCO’s online charter party editor, IDEA, along with a set of comprehensive explanatory notes outlining the thinking behind the revision and changes to the 1999 edition. WRECKHIRE 2010 contains some novel provisions which have been agreed as a means of encouraging a swift conclusion of operations and resolving on-site disputes more quickly. The new provisions include a bonus incentive scheme - designed for operations over an extended period whereby the contractors will be paid an agreed bonus if the task is completed within the specified period. There is also a time cap placed on completion of the salvage operation for operations over an extended period 10
and after which the daily rate of hire will be reduced. And there is an expert evaluation process to expedite disputes over the application of standby rates. BIMCO was assisted in the revision of WRECKHIRE 99 by the International Salvage Union, the International Group of P&I Clubs, the Chamber of Shipping of the UK, ISU members Titan Salvage and Smit Salvage, West of England P&I, Skuld P&I and with legal advice provided by Holman Fenwick Willan. Revised copies of WRECKFIXED 99 and WRECKSTAGE 99 will be published shortly. Sample copies of WRECKHIRE 2010 and its Explanatory Notes are available from: documentary@bimco.org